Proposal for a Council Decision on the signing and conclusion by the European Community of the international coffee agreement 2007
Date: 2008-03-27
Institutions: European Commission
Subjects: coffee, commodity agreement, international agreement, international cooperation, international organisation

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 27.3.2008 
COM(2008) 157 final 

Proposal for a 

COUNCIL DECISION 

on the signing and conclusion by the European Community of the International Coffee 
Agreement 2007 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

On 28 September 2007 the International Coffee Council (ICC) adopted the text of a new 2007 
Agreement  replacing  the  International  Coffee  Agreement  2001  which  had  been  extended  to 
30 September 2008. 

In the discussions on the Agreement the Community negotiated on the basis of the negotiating 
mandate  and  directives  proposed  by  the  Commission  and  approved  by  the  Council  on  29 
January 2007. 

To date, in the light of the discussions and the content of the new instrument, which reflects 
the position defended by the Community, the Commission considers the International Coffee 
Agreement  2007  should  be  signed  and  the  instrument  of  conclusion  be  deposited  with  the 
Headquarters  of  the  International  Coffee  Organisation  in  London,  designated  as  Depository 
by ICO Resolution N° 436 of 25 January 2008.  

From  a  legal  viewpoint,  it  should  be  noted  that  following  the  proposal  of  the  Commodities 
Working Group of the Council (PROBA), the Council has recognised in September 2007 that 
the  main  objective  of  the  new  International  Coffee  Agreement  of  2007  was  remaining  the 
promotion of the international cooperation on trade in coffee, which falls within the exclusive 
competence  of  the  European  Community.  In  this  case,  the  new  International  Coffee 
Agreement  of  2007  should  be  concluded  by  the  European  Community,  according  to  Article 
133 of the Treaty. .  

The deadline for signing and deposing the instrument of acceptance is 31 August 2008 and the 
Council is therefore requested to adopt this decision before this deadline. 

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Proposal for a 

COUNCIL DECISION 

on the signing and conclusion by the European Community of the International Coffee 
Agreement 2007 

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), first sub-paragraph, thereof, 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The  International  Coffee  Council  approved  the  text  of  the  International  Coffee 
Agreement 2007 by Resolution No 431 of 28 September 2007 ; 

This  new  Agreement  has  been  negotiated  to  replace  the  International  Coffee 
Agreement 2001 which was extended to 30 September 2008 ; 

The  International  Coffee  Agreement  2007  is  open  for  signature  and  deposit  of  the 
instruments of ratification, acceptance or approval up to 31 August 2008 ; 

The Community is a member of the 2001 International Agreement, as extended, and it 
is therefore in the Community’s interest to approve the Agreement which replaces it, 

HAS DECIDED AS FOLLOWS:: 

The  International  Coffee  Agreement  2007  is  hereby  approved  on  behalf  of  the  European 
Community. The text of the Agreement is attached to this Decision. 

Article 1 

Article 2 

The President of the Council is authorised to designate before the 31 August 2008 the person 
authorised to deposit the instrument of approval on behalf of the Community. 

This decision shall be published in the Official Journal of the European Communities. 

Done at Brussels,  

Article 3 

For the Council 
The President. 

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ANNEX  

INTERNATIONAL COFFEE AGREEMENT 2007 

CONTENTS 

Article 

Preamble 

  1 

Objectives 

  2 

Definitions 

CHAPTER I ─ OBJECTIVES 

CHAPTER II ─ DEFINITIONS 

CHAPTER III ─ GENERAL UNDERTAKINGS BY MEMBERS 

  3 

General undertakings by Members 

CHAPTER IV ─ MEMBERSHIP 

  4 

  5 

  6 

  7 

  8 

  9 

  10 

  11 

  12 

  13 

  14 

  15 

  16 

Membership of the Organization 

Group membership 

CHAPTER V ─ THE INTERNATIONAL COFFEE ORGANIZATION 

Seat and structure of the International Coffee Organization 

Privileges and immunities 

CHAPTER VI ─ THE INTERNATIONAL COFFEE COUNCIL 

Composition of the International Coffee Council 

Powers and functions of the Council 

Chairman and Vice-Chairman of the Council 

Sessions of the Council 

Votes 

Voting procedure of the Council 

Decisions of the Council 

Cooperation with other organizations 

Cooperation with non-governmental organizations 

CHAPTER VII ─ THE EXECUTIVE DIRECTOR AND THE STAFF 

  17 

The Executive Director and the staff 

CHAPTER VIII ─ FINANCE AND ADMINISTRATION 

  18 

  19 

  20 

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Finance and Administration Committee 

Finance 

Determination of the Administrative Budget and assessment of contributions 

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  21 

  22 

  23 

  24 

  25 

  26 

  27 

Payment of contributions 

Liabilities 

Audit and publication of accounts 

CHAPTER IX – PROMOTION AND MARKET DEVELOPMENT 

Removal of obstacles to trade and consumption 

Promotion and market development 

Measures related to processed coffee 

Mixtures and substitutes 

CHAPTER X ─ PROJECT ACTIVITIES OF THE ORGANIZATION 

  28 

Development and funding of projects 

CHAPTER XI ─ THE PRIVATE COFFEE SECTOR 

  29 

  30 

  31 

The Private Sector Consultative Board 

The World Coffee Conference 

The Consultative Forum on Coffee Sector Finance 

CHAPTER XII ─ STATISTICAL INFORMATION, STUDIES AND SURVEYS 

  32 

  33 

  34 

  35 

  36 

  37 

  38 

  39 

  40 

  41 

  42 

  43 

  44 

  45 

  46 

  47 

Statistical information 

Certificates of Origin 

Studies, surveys and reports 

CHAPTER XIII ─ GENERAL PROVISIONS 

Preparations for a new Agreement 

Sustainable coffee sector 

Standard of living and working conditions 

CHAPTER XIV ─ CONSULTATIONS, DISPUTES AND COMPLAINTS 

Consultations 

Disputes and complaints 

CHAPTER XV ─ FINAL PROVISIONS 

Signature and ratification, acceptance or approval 

Provisional application 

Entry into force 

Accession 

Reservations 

Voluntary withdrawal 

Exclusion 

Settlement of accounts with withdrawing or excluded Members 

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  48 

  49 

  50 

  51 

Duration, extension and termination 

Amendment 

Supplementary and transitional provision 

Authentic texts of the Agreement 

Annex  Conversion factors for roasted, decaffeinated, liquid and soluble coffee as defined in 
the International Coffee Agreement 2001. 

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INTERNATIONAL COFFEE AGREEMENT 2007 

Preamble 

The Governments Party to this Agreement, 

Recognizing the exceptional importance of coffee to the economies of many countries which 
are largely dependent upon this commodity for their export earnings and for the achievement 
of their social and economic development goals; 

Recognizing  the  importance  of  the  coffee  sector  to  the  livelihoods  of  millions  of  people, 
particularly  in  developing  countries,  and  bearing  in  mind  that  in  many  of  these  countries 
production is on small-scale family farms; 

Recognizing  the  contribution  of  a  sustainable  coffee  sector  to  the  achievement  of 
internationally  agreed  development  goals,  including  the  Millennium  Development  Goals 
(MDGs), in particular with respect to poverty eradication; 

Recognizing  the  need  to  foster  the  sustainable  development  of  the  coffee  sector,  leading  to 
enhanced  employment  and  income,  and  better  living  standards  and  working  conditions  in 
Member countries; 

Considering  that  close  international  cooperation  on  coffee  matters,  including  international 
trade,  can  foster  an  economically  diversified  global  coffee  sector,  the  economic  and  social 
development of producing countries, the development of coffee production and consumption, 
and improved relations between coffee exporting and importing countries; 

Considering  that  collaboration  between  Members,  international  organizations,  the  private 
sector and all other stakeholders can contribute to the development of the coffee sector; 

Recognizing  that  increased  access  to  coffee-related  information  and  market-based  risk 
management  strategies  can  help  avoid  imbalances  in  the  production  and  consumption  of 
coffee  that  may  give  rise  to  pronounced  market  volatility  which  can  be  harmful  to  both 
producers and consumers; and 

Noting  the  advantages  derived  from  the  international  cooperation  which  resulted  from  the 
operation of the International Coffee Agreements 1962, 1968, 1976, 1983, 1994 and 2001, 

Have agreed as follows: 

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CHAPTER I – OBJECTIVES 

Article 1 

Objectives 

The  objective  of  this  Agreement  is  to  strengthen  the  global  coffee  sector  and  promote  its 
sustainable expansion in a market-based environment for the betterment of all participants in 
the sector, by: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

(10) 

(11) 

(12) 

promoting international cooperation on coffee matters; 

providing a forum for consultations on coffee matters among governments, and with 
the private sector; 

encouraging Members to develop a sustainable coffee sector in economic, social and 
environmental terms;  

providing  a  forum  for  consultations  seeking  understanding  with  regard  to  the 
structural conditions in international markets and long-term trends in production and 
consumption  that  balance  supply  and  demand,  and  result  in  prices  fair  both  to 
consumers and to producers;  

facilitating  the  expansion  and  transparency  of  international  trade  in  all  types  and 
forms of coffee, and promoting the elimination of trade barriers;  

technical  and  scientific 
collecting,  disseminating  and  publishing  economic, 
information, statistics and studies, as well as the results of research and development 
in coffee matters; 

promoting  the  development  of  consumption  and  markets  for  all  types  and  forms  of 
coffee, including in coffee producing countries; 

developing, evaluating and seeking finance for projects that benefit Members and the 
world coffee economy;  

promoting coffee quality with a view to enhancing consumer satisfaction and benefits 
to producers;  

encouraging  Members  to  develop  appropriate  food  safety  procedures  in  the  coffee 
sector;  

promoting  training  and  information  programmes  designed  to  assist  the  transfer  to 
Members of technology relevant to coffee; 

encouraging Members to develop and implement strategies to enhance the capacity of 
local  communities  and  small-scale  farmers  to  benefit  from  coffee  production,  which 
can contribute to poverty alleviation; and 

(13) 

facilitating  the  availability  of  information  on  financial  tools  and  services  that  can 
assist coffee producers, including access to credit and approaches to managing risk. 

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CHAPTER II – DEFINITIONS 

Article 2 

Definitions 

For the purposes of this Agreement: 

(1) 

(2) 

(3) 

(4) 

(5) 

Coffee means the beans and cherries of the coffee tree, whether parchment, green or 
roasted, and includes ground, decaffeinated, liquid and soluble coffee. The Council 
shall,  as  soon  as  possible  after  this  Agreement  enters  into  force,  and  again  at 
intervals of three years, review the conversion factors for the types of coffee listed in 
sub-paragraphs (d), (e), (f) and (g) below. Following such reviews the Council shall 
determine and publish appropriate conversion factors. Prior to the initial review, and 
should the Council be unable to reach a decision on this matter, the conversion factors 
will be those used in the International Coffee Agreement 2001, which are listed in the 
Annex to this Agreement. Subject to these provisions, the terms listed below shall have 
the following meaning: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

green coffee means all coffee in the naked bean form before roasting; 

dried  coffee  cherry  means  the  dried  fruit  of  the  coffee  tree;  to  find  the 
equivalent  of  dried  coffee  cherry  to  green  coffee,  multiply  the  net  weight  of 
the dried coffee cherry by 0.50; 

parchment  coffee  means  the  green  coffee  bean  contained  in  the  parchment 
skin; to find the equivalent of parchment coffee to green coffee, multiply the 
net weight of the parchment coffee by 0.80; 

roasted coffee means green coffee roasted to any degree and includes ground 
coffee; 

decaffeinated  coffee  means  green,  roasted  or  soluble  coffee  from  which 
caffeine has been extracted; 

liquid  coffee  means  the  water-soluble  solids  derived  from  roasted  coffee  and 
put into liquid form; and 

soluble  coffee  means  the  dried  water-soluble  solids  derived  from  roasted 
coffee. 

Bag means 60 kilogrammes or 132.276 pounds of green coffee; tonne means a mass 
of 1,000 kilogrammes or 2,204.6 pounds; and pound means 453.597 grammes. 

Coffee year means the period of one year, from 1 October to 30 September. 

Organization and Council mean, respectively, the International Coffee Organization 
and the International Coffee Council. 

Contracting  Party  means  a  Government,  the  European  Community  or  any 
intergovernmental  organization  referred  to  in  paragraph  (3)  of  Article  4  which  has 
deposited  an  instrument  of  ratification,  acceptance,  approval  or  notification  of 
provisional  application  of  this  Agreement  in  accordance  with  the  provisions  of 
Articles 40, 41 and 42 or has acceded thereto in accordance with the provisions of 
Article 43. 

(6) 

Member means a Contracting Party. 

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(7) 

(8) 

(9) 

(10) 

Exporting Member or exporting country means a Member or country, respectively, 
which is a net exporter of coffee; that is, a Member or country whose exports exceed 
its imports. 

Importing Member or importing country means a Member or country, respectively, 
which  is  a  net  importer  of  coffee;  that  is,  a  Member  or  country  whose  imports 
exceed its exports. 

Distributed  majority  vote  means  a  vote  requiring  70%  or  more  of  the  votes  of 
exporting Members present and voting and 70% or more of the votes of importing 
Members present and voting, counted separately. 

Depositary  means  the  intergovernmental  organization  or  Contracting  Party  to  the 
International  Coffee  Agreement  2001  designated  by  decision  of  the  Council  under 
the  International  Coffee  Agreement  2001,  to  be  taken  by  consensus  before  31 
January 2008. Such decision shall form an integral part of this Agreement. 

CHAPTER III – GENERAL UNDERTAKINGS BY MEMBERS 

Article 3 

General undertakings by Members 

Members undertake to adopt such measures as are necessary to enable them to fulfil 
their  obligations  under  this  Agreement  and  fully  cooperate  with  one  another  in 
securing the attainment of the objectives of this Agreement; in particular, Members 
undertake  to  provide  all  information  necessary  to  facilitate  the  functioning  of  this 
Agreement. 

Members recognize that Certificates of Origin are important sources of information 
on  the  trade  in  coffee.  Exporting  Members,  therefore,  assume  responsibility  for 
ensuring the proper issuing and use of Certificates of Origin according to the rules 
established by the Council. 

Members recognize further that information on re-exports is also important for the 
proper  analysis  of  the  world  coffee  economy.  Importing  Members,  therefore, 
undertake to supply regular and accurate information on re-exports, in the form and 
manner determined by the Council. 

CHAPTER IV – MEMBERSHIP 

Article 4 

Membership of the Organization 

Each Contracting Party shall constitute a single Member of the Organization. 

A  Member  may  change  its  category  of  membership  on  such  conditions  as  the 
Council may agree. 

Any  reference  in  this  Agreement  to  a  Government  shall  be  construed  as  including 
the European Community and any intergovernmental organization having exclusive 

(1) 

(2) 

(3) 

(1) 

(2) 

(3) 

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competence  in  respect  of  the  negotiation,  conclusion  and  application  of  this 
Agreement. 

Article 5 

Group membership 

Two or more Contracting Parties may, by appropriate notification to the Council and to the 
Depositary,  which  will  take  effect  on  a  date  to  be  specified  by  the  Contracting  Parties 
concerned and on conditions agreed by the Council, declare that they are participating in the 
Organization as a Member group. 

CHAPTER V – THE INTERNATIONAL COFFEE ORGANIZATION 

Article 6 

Seat and structure of the 
International Coffee Organization 

(1) 

(2) 

(3) 

(1) 

(2) 

The  International  Coffee  Organization  established  under  the  International  Coffee 
Agreement 1962 shall continue in being to administer the provisions and supervise 
the operation of this Agreement. 

The  seat  of  the  Organization  shall  be  in  London  unless  the  Council  decides 
otherwise. 

The highest authority of the Organization shall be the International Coffee Council. 
The  Council  shall  be  assisted  as  appropriate  by  the  Finance  and  Administration 
Committee,  the  Promotion  and  Market  Development  Committee  and  the  Projects 
Committee.  The  Council  shall  also  be  advised  by  the  Private  Sector  Consultative 
Board, the World Coffee Conference and the Consultative Forum on Coffee Sector 
Finance. 

Article 7 

Privileges and immunities 

The Organization shall have legal personality. It shall in particular have the capacity 
to contract, acquire and dispose of movable and immovable property and to institute 
legal proceedings. 

The status, privileges and immunities of the Organization, of its Executive Director, 
its staff and experts, and of representatives of Members while in the territory of the 
host  country  for  the  purpose  of  exercising  their  functions,  shall  be  governed  by  a 
Headquarters  Agreement  concluded  between  the  host  Government  and  the 
Organization. 

(3) 

The  Headquarters  Agreement  referred  to  in  paragraph  (2)  of  this  Article  shall  be 
independent of this Agreement. It shall however terminate: 

(a) 

(b) 

by agreement between the host Government and the Organization; 

in  the  event  of  the  headquarters  of  the  Organization  being  moved  from  the 
territory of the host Government; or 

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(4) 

(5) 

(1) 

(2) 

(1) 

(2) 

(3) 

(4) 

(c) 

in the event of the Organization ceasing to exist. 

The Organization may conclude with one or more other Members agreements to be 
approved  by  the  Council  relating  to  such  privileges  and  immunities  as  may  be 
necessary for the proper functioning of this Agreement. 

The Governments of Member countries other than the host Government shall grant 
the Organization the same facilities in respect of currency or exchange restrictions, 
maintenance  of  bank  accounts  and  transfer  of  monies,  as  are  accorded  to  the 
specialized agencies of the United Nations. 

CHAPTER VI – THE INTERNATIONAL COFFEE COUNCIL 

Article 8 

Composition of the International Coffee Council 

The  International  Coffee  Council  shall  consist  of  all  the  Members  of  the 
Organization. 

Each Member  shall  appoint  one representative on the Council and, if  it so desires, 
one  or  more  alternates.  A  Member  may  also  designate  one  or  more  advisers  to  its 
representative or alternates. 

Article 9 

Powers and functions of the Council 

All powers specifically conferred by this Agreement shall be vested in the Council, 
which  shall  perform  the  functions  necessary  to  carry  out  the  provisions  of  this 
Agreement. 

The  Council  may  establish  and  dissolve  Committees  and  subsidiary  bodies,  as 
appropriate, other than those provided for in paragraph (3) of Article 6. 

The  Council  shall  establish  such  rules  and  regulations,  including  its  own  rules  of 
procedure  and  the  financial  and  staff  regulations  of  the  Organization,  as  are 
necessary to carry out the provisions of this Agreement and are consistent therewith. 
The  Council  may,  in  its  rules  of  procedure,  provide  the  means  whereby  it  may, 
without meeting, decide specific questions. 

The  Council  shall  establish  on  a  regular  basis  a  strategic  action  plan  to  guide  its 
work  and  identify  priorities,  including  priorities  for  project  activities  undertaken 
pursuant  to  Article 28  and  studies,  surveys  and  reports  undertaken  pursuant  to 
Article  34.  Priorities  identified  in  the  action  plan  shall  be  reflected  in  the  annual 
work programmes approved by the Council. 

(5) 

The  Council  shall  also  keep  such  records  as  are  required  to  perform  its  functions 
under this Agreement and such other records as it considers desirable. 

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(1) 

(2) 

(3) 

(1) 

(2) 

(3) 

(4) 

Article 10 

Chairman and Vice-Chairman of the Council 

The Council shall elect, for each coffee year, a Chairman and a Vice-Chairman who 
shall not be paid by the Organization. 

The  Chairman  shall  be  elected  either  from  among  the  representatives  of  exporting 
Members  or  from  among  the  representatives  of  importing  Members  and  the  Vice-
Chairman  shall  be  elected  from  among  representatives  of  the  other  category  of 
Member. These offices shall alternate each coffee year between the two categories of 
Member. 

Neither the Chairman nor the Vice-Chairman acting as Chairman shall have the right 
to  vote.  His  or  her  alternate  will  in  such  case  exercise  the  voting  rights  of  the 
Member. 

Article 11 

Sessions of the Council 

The Council shall hold two regular sessions a year and special sessions should it so 
decide.  It  may  hold  special  sessions  at  the  request  of  any  ten  Members.  Notice  of 
sessions  shall  be  given  at  least  30  days  in  advance  except  in  cases  of  emergency 
when such notice shall be given at least 10 days in advance. 

Sessions  shall  be  held  at  the  seat  of  the  Organization,  unless  the  Council  decides 
otherwise. If a Member invites the Council to meet in its territory, and the Council 
agrees, the additional costs to the Organization involved above those incurred when 
the session is held at the seat shall be borne by that Member. 

The  Council  may  invite  any  non-member  country  or  any  of  the  organizations 
referred to in Articles 15 and 16 to attend any of its sessions as an observer. At each 
session, the Council shall decide on the admission of observers. 

The quorum required for a Council session to take decisions shall be the presence of 
more  than  half  of  the  number  of  exporting  and  importing  Members  representing 
respectively at least two-thirds of the votes for each category. If on the opening of a 
Council  session  or  of  any  plenary  meeting  there  is  no  quorum,  the  Chairman  shall 
postpone  the  opening  of  the  session  or  plenary  meeting  for  at  least  two  hours.  If 
there is still no quorum at the new time set, the Chairman may again postpone the 
opening of the session or plenary meeting for at least a further two hours. If at the 
end of this new postponement there is still no quorum, the matter on which decisions 
are required shall be deferred to the next session of the Council. 

Article 12 

Votes 

(1) 

The exporting Members shall together hold 1,000 votes and the importing Members 
shall together hold 1,000 votes, distributed within each category of Member – that is, 
exporting  and  importing  Members,  respectively  –  as  provided  for  in  the  following 
paragraphs of this Article. 

(2) 

Each Member shall have five basic votes. 

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(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

(1) 

(2) 

(1) 

The remaining votes of exporting Members shall be divided among such Members 
in  proportion  to  the  average  volume  of  their  respective  exports  of  coffee  to  all 
destinations in the preceding four calendar years. 

The remaining votes of importing Members shall be divided among such Members 
in  proportion  to  the  average  volume  of  their  respective  imports  of  coffee  in  the 
preceding four calendar years. 

The  European  Community  or  any  intergovernmental  organization  as  defined  in 
paragraph  (3)  of  Article  4  shall  hold  votes  as  a  single  Member;  it  shall  have  five 
basic votes and additional votes in proportion to the average volume of its imports or 
exports of coffee, in the preceding four calendar years. 

The distribution of votes shall be determined by the Council in accordance with the 
provisions  of  this  Article  at  the  beginning  of  each  coffee  year  and  shall  remain  in 
effect during that year, except as provided for in paragraph (7) of this Article. 

The  Council  shall  provide  for  the  redistribution  of  votes  in  accordance  with  the 
provisions  of  this  Article  whenever  there  is  a  change  in  the  membership  of  the 
Organization or if the voting rights of a Member are suspended or regained under the 
provisions of Article 21. 

No Member shall hold two-thirds or more of the votes in its category. 

There shall be no fractional votes. 

Article 13 

Voting procedure of the Council 

Each Member shall be entitled to cast the number of votes it holds and shall not be 
entitled  to  divide  its  votes.  However,  a  Member  may  cast  differently  any  votes 
which it holds under the provisions of paragraph (2) of this Article. 

Any exporting Member may authorize in writing any other exporting Member, and 
any  importing  Member  may  authorize  in  writing  any  other  importing  Member,  to 
represent its interests and to exercise its right to vote at any meeting or meetings of 
the Council. 

Article 14 

Decisions of the Council 

The Council shall endeavour to take all decisions and to make all recommendations 
by consensus. If consensus cannot be reached, the Council shall take decisions and 
make recommendations by a distributed majority vote of 70% or more of exporting 
Members, present and voting, and 70% or more of importing Members, present and 
voting, counted separately. 

(2) 

The  following  procedure  shall  apply  with  respect  to  any  decision  by  the  Council 
taken by a distributed majority vote: 

(a) 

if  a  distributed  majority  vote  is  not  obtained  because  of  the  negative  vote  of 
three or less exporting or three or less importing Members, the proposal shall, 
if  the  Council  so  decides  by  a  majority  of  the  Members  present,  be  put  to  a 
vote again within 48 hours; and 

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(b) 

if  a  distributed  majority  vote  is  again  not  obtained,  the  proposal  shall  be 
considered not approved. 

(3) 

Members are committed to accept as binding all decisions of the Council under the 
provisions of this Agreement. 

Article 15 

Cooperation with other organizations 

(1) 

(2) 

The  Council  may  make  arrangements  for  consultation  and  cooperation  with  the 
United  Nations  and  its  specialized  agencies;  other  appropriate  intergovernmental 
organizations; and relevant international and regional organizations. It shall take full 
advantage of the facilities of the Common Fund for Commodities and other sources 
of  funding.  Such  arrangements  may  include  financial  arrangements  which  the 
Council  considers  appropriate  for  achieving  the  objectives  of  this  Agreement. 
However, in respect of the implementation of any project under such arrangements 
the  Organization  shall  not  incur  any  financial  obligations  for  guarantees  given  by 
individual Members or other entities. No Member shall be responsible by reason of 
its  membership  of  the  Organization  for  any  liability  arising  from  borrowing  or 
lending by any other Member or entity in connection with such projects. 

Where  possible,  the  Organization  may  also  collect  from  Members,  non-members, 
and  from  donor  and  other  agencies,  information  on  development  projects  and 
programmes  focussing  on  the  coffee  sector.  Where  appropriate,  and  with  the 
agreement  of  the  parties  concerned,  the  Organization  may  make  this  information 
available to such other organizations as well as to Members. 

Article 16 

Cooperation with non-governmental organizations 

In pursuing the objectives of this Agreement, the Organization may, without prejudice to the 
provisions of Articles 15, 29, 30 and 31, establish and strengthen cooperative activities with 
appropriate non-governmental organizations having expertise in relevant aspects of the coffee 
sector and with other experts in coffee matters. 

CHAPTER VII – THE EXECUTIVE DIRECTOR AND THE STAFF 

Article 17 

The Executive Director and the staff 

(1) 

(2) 

The Council shall appoint the Executive Director. The terms of appointment of the 
Executive  Director  shall  be  established  by  the  Council  and  shall  be  comparable  to 
those applying to corresponding officials of similar intergovernmental organizations. 

The Executive Director shall be the chief administrative officer of the Organization 
and shall be responsible for the performance of any duties devolving upon him in the 
administration of this Agreement. 

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(3) 

(4) 

(5) 

The  Executive  Director  shall  appoint  the  staff  of  the  Organization  in  accordance 
with regulations established by the Council. 

Neither the Executive Director nor any member of the staff shall have any financial 
interest in the coffee industry, the coffee trade or the transportation of coffee. 

In the performance of their duties, the Executive Director and the staff shall not seek 
or receive instructions from any Member or from any other authority external to the 
Organization.  They  shall  refrain  from  any  action  which  might  reflect  on  their 
position  as  international  officials  responsible  only  to  the  Organization.  Each 
Member  undertakes  to  respect  the  exclusively  international  character  of  the 
responsibilities of the Executive Director and the staff and not to seek to influence 
them in the discharge of their responsibilities. 

CHAPTER VIII – FINANCE AND ADMINISTRATION 

Article 18 

Finance and Administration Committee 

A  Committee  on  Finance  and  Administration  shall  be  established.  The  Council  shall 
determine its composition and mandate. This Committee shall be responsible for supervising 
the preparation of the Administrative Budget to be presented to the Council for approval, and 
carrying out any other tasks which the Council assigns to it which shall include monitoring 
income  and  expenditure  and  matters  related  to  the  administration  of  the  Organization.  The 
Finance and Administration Committee shall report on its proceedings to the Council. 

Article 19 

Finance 

(1) 

(2) 

The  expenses  of  delegations  to  the  Council  and  representatives  on  any  of  the 
committees of the Council shall be met by their respective Governments. 

The other expenses necessary for the administration of this Agreement shall be met 
by  annual  contributions  from  Members  assessed  in  accordance  with  the  provisions 
of Article 20, together with revenues from sales of specific services to Members and 
the sale of information and studies generated under the provisions of Articles 32 and 
34. 

(3) 

The financial year of the Organization shall be the same as the coffee year. 

Article 20 

Determination of the Administrative Budget and 
assessment of contributions 

(1) 

During  the  second  half  of  each  financial  year,  the  Council  shall  approve  the 
Administrative Budget of the Organization for the following financial year and shall 
assess  the  contribution  of  each  Member  to  that  Budget.  A  draft  Administrative 
Budget  shall  be  prepared  by  the  Executive  Director  under  the  supervision  of  the 
Finance and Administration Committee in accordance with the provisions of Article 
18. 

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(2) 

(3) 

(1) 

(2) 

(3) 

(1) 

(2) 

The  contribution  of  each  Member  to  the  Administrative  Budget  for  each  financial 
year  shall  be  in  the  proportion  which  the  number  of  its  votes  at  the  time  the 
Administrative Budget for that financial year is approved bears to the total votes of 
all the Members. However, if there is any change in the distribution of votes among 
Members  in  accordance  with  the  provisions  of  paragraph  (6)  of  Article  12  at  the 
beginning  of  the  financial  year  for  which  contributions  are  assessed,  such 
contributions  shall  be  correspondingly  adjusted  for  that  year.  In  determining 
contributions,  the  votes  of  each  Member  shall  be  calculated  without  regard  to  the 
suspension  of  the  voting  rights  of  any  Member  or  any  redistribution  of  votes 
resulting there from. 

The initial contribution of any Member joining the Organization after the entry into 
force  of  this  Agreement  as  provided  for  in  Article  42  shall  be  assessed  by  the 
Council on the basis of the number of votes to be held by it and the period remaining 
in the current financial year, but the assessments made upon other Members for the 
current financial year shall not be altered. 

Article 21 

Payment of contributions 

Contributions to the Administrative Budget for each financial year shall be payable 
in freely convertible currency and shall become due on the first day of that financial 
year. 

If any Member fails to pay its full contribution to the Administrative Budget within 
six months of the date on which the contribution is due, its voting rights and its right 
to  participate  in  meetings  of  specialized  committees  shall  be  suspended  until  its 
contribution  has  been  paid  in  full.  However,  unless  the  Council  so  decides,  such 
Member  shall  not  be  deprived  of  any  of  its  other  rights  nor  relieved  of  any  of  its 
obligations under this Agreement. 

Any  Member  whose  voting  rights  have  been  suspended  under  the  provisions  of 
paragraph (2) of this Article shall nevertheless remain responsible for the payment of 
its contribution. 

Article 22 

Liabilities 

The  Organization,  functioning  as  specified  in  paragraph  (3)  of  Article  6,  shall  not 
have  power  to  incur  any  obligation  outside  the  scope  of  this  Agreement,  and  shall 
not be taken to have been authorized by the Members to do so; in particular, it shall 
not  have  the  capacity  to  borrow  money.  In  exercising  its  capacity  to  contract,  the 
Organization shall incorporate in its contracts the terms of this Article in such a way 
as  to  bring  them  to  the  notice  of  the  other  parties  entering  into  contracts  with  the 
Organization,  but  any  failure  to  incorporate  such  terms  shall  not  invalidate  such  a 
contract or render it ultra vires. 

A  Member’s  liability  is  limited  to  the  extent  of  its  obligations  regarding 
contributions specifically provided for in this Agreement. Third parties dealing with 
the Organization shall be deemed to have notice of the provisions of this Agreement 
regarding the liabilities of Members. 

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Article 23 

Audit and publication of accounts 

As  soon  as  possible  and  not  later  than  six  months after the close of each financial year, an 
independently  audited  statement  of  the  Organization’s  assets,  liabilities,  income  and 
expenditure during that financial year shall be prepared. This statement shall be presented to 
the Council for approval at its earliest forthcoming session. 

CHAPTER IX – PROMOTION AND MARKET DEVELOPMENT 

Article 24 

Removal of obstacles to trade and consumption 

(1) 

Members  recognize  the  importance  of  the  sustainable  development  of  the  coffee 
sector and of the removal of current obstacles and avoidance of new obstacles which 
may hinder trade and consumption, while recognizing at the same time the right of 
Members  to  regulate,  and  to  introduce  new  regulations,  in  order  to  meet  national 
health and environmental policy objectives, consistent with their commitments and 
obligations  under  international  agreements,  including  those  related  to  international 
trade. 

(2) 

Members  recognize  that  there  are  at  present  in  effect  measures  which  may  to  a 
greater or lesser extent hinder the increase in consumption of coffee, in particular: 

(a) 

(b) 

(c) 

import  arrangements  applicable  to  coffee,  including  preferential  and  other 
tariffs,  quotas,  operations  of  government  monopolies  and  official  purchasing 
agencies, and other administrative rules and commercial practices; 

export  arrangements  as  regards  direct  or  indirect  subsidies  and  other 
administrative rules and commercial practices; and 

internal  trade  conditions  and  domestic  and  regional  legal  and  administrative 
provisions which may affect consumption. 

Having regard to the objectives stated above and to the provisions of paragraph (4) 
of this Article, Members shall endeavour to pursue tariff reductions on coffee or to 
take other action to remove obstacles to increased consumption. 

Taking  into  account  their  mutual  interest,  Members  undertake  to  seek  ways  and 
means  by  which  the  obstacles  to  increased  trade  and  consumption  referred  to  in 
paragraph (2) of this Article may be progressively reduced and eventually, wherever 
possible, eliminated, or by which the effects of such obstacles may be substantially 
diminished. 

Taking  into  account  any  commitments  undertaken  under  the  provisions  of 
paragraph (4)  of  this  Article,  Members  shall  inform  the  Council  annually  of  all 
measures adopted with a view to implementing the provisions of this Article. 

The  Executive  Director  shall  prepare  periodically  a  survey  of  the  obstacles  to 
consumption to be reviewed by the Council. 

(3) 

(4) 

(5) 

(6) 

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(7) 

The  Council  may,  in  order  to  further  the  purposes  of  this  Article,  make 
recommendations to Members, which shall report as soon as possible to the Council 
on the measures adopted with a view to implementing such recommendations. 

Article 25 

Promotion and market development 

(1) 

(2) 

(3) 

(4) 

Members  recognize  the  benefits,  both  to  exporting  and  importing  Members,  from 
efforts  to  promote  consumption,  improve  the  quality  of  the  product,  and  develop 
markets for coffee, including in exporting Members. 

Promotion  and  market  development  activities  may  include  information  campaigns, 
research,  capacity-building  and  studies 
to  coffee  production  and 
consumption. 

related 

Such activities may be included in the Council’s annual work programme or among 
the  project  activities  of  the  Organization  referred  to  in  Article  28  and  may  be 
financed  by  voluntary  contributions 
from  Members,  non-members,  other 
organizations and the private sector. 

A  Committee  on  Promotion  and  Market  Development  shall  be  established.  The 
Council shall determine its composition and mandate. 

Article 26 

Measures related to processed coffee 

Members recognize the need of developing countries to broaden the base of their economies 
through, inter alia, industrialization and the export of manufactured products, including the 
processing of coffee and the export of processed coffee, as referred to in sub-paragraphs (d), 
(e), (f) and (g) of paragraph (1) of Article 2. In this connection, Members should avoid the 
adoption of governmental measures which could cause disruption to the coffee sector of other 
Members. 

Article 27 

Mixtures and substitutes 

(1) 

Members  shall  not  maintain  any  regulations  requiring  the  mixing,  processing  or 
using of other products with coffee for commercial resale as coffee. Members shall 
endeavour  to  prohibit  the  sale  and  advertisement  of  products  under  the  name  of 
coffee if such products contain less than the equivalent of 95% green coffee as the 
basic raw material. 

(2) 

The Executive Director shall submit to the Council a periodic report on compliance 
with the provisions of this Article. 

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CHAPTER X – PROJECT ACTIVITIES OF THE ORGANIZATION 

Article 28 

Development and funding of projects 

Members and the Executive Director may submit project proposals which contribute 
to  the  achievement  of  the  objectives  of  this  Agreement  and  one  or  more  of  the 
priority areas for work identified in the strategic action plan approved by the Council 
pursuant to Article 9. 

The Council shall establish procedures and mechanisms for submitting, appraising, 
approving,  prioritizing  and  funding  projects,  as  well  as  for  their  implementation, 
monitoring and evaluation, and wide dissemination of results. 

At each session of the Council the Executive Director shall report on the status of all 
projects  approved  by  the  Council,  including  those  awaiting  financing,  under 
implementation, or completed since the previous Council session. 

A  Committee  on  Projects  shall  be  established.  The  Council  shall  determine  its 
composition and mandate. 

CHAPTER XI – THE PRIVATE COFFEE SECTOR 

Article 29 

The Private Sector Consultative Board 

The Private Sector Consultative Board (hereinafter referred to as the PSCB) shall be 
a consultative body which may make recommendations on any consultations made 
by the Council and may invite the Council to give consideration to matters related to 
this Agreement. 

The  PSCB  shall  consist  of  eight  representatives  of  the  private  sector  in  exporting 
countries and eight representatives of the private sector in importing countries. 

The PSCB members shall be representatives of associations or bodies designated by 
the  Council  every  two  coffee  years,  and  may  be  re-appointed.  The  Council  in  so 
doing shall endeavour to designate: 

(a) 

(b) 

two  private  sector  coffee  associations  or  bodies  from  exporting  countries  or 
regions representing each of the four groups of coffee, preferably representing 
both  growers  and  exporters,  together  with  one  or  more  alternates  for  each 
representative; and 

eight  private  sector  coffee  associations  or  bodies  from  importing  countries, 
whether Members or non-members, preferably representing both importers and 
roasters, together with one or more alternates for each representative. 

Each member of the PSCB may designate one or more advisers. 

The  PSCB  shall  have  a  Chairman  and  a  Vice-Chairman  elected  from  among  its 
members, for a period of one year. These officers may be re-elected. The Chairman 
and the Vice-Chairman shall not be paid by the Organization. The Chairman shall be 
invited to participate in meetings of the Council as an observer. 

(1) 

(2) 

(3) 

(4) 

(1) 

(2) 

(3) 

(4) 

(5) 

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(6) 

(7) 

(8) 

(9) 

(1) 

(2) 

(3) 

(4) 

(5) 

(1) 

(2) 

The  PSCB  shall  normally  meet  at  the  seat  of  the  Organization,  during  regular 
sessions of the Council. In case of acceptance by the Council of an invitation by a 
Member to hold a meeting in its territory, the PSCB shall also meet in that territory, 
in which case the additional costs to the Organization involved above those incurred 
when  the  meeting  is  held  at  the  seat  of  the  Organization  shall  be  borne  by  the 
country or private sector organization hosting the meeting. 

The PSCB may hold special meetings subject to approval by the Council. 

The PSCB shall submit regular reports to the Council. 

The PSCB shall establish its own rules of procedure, consistent with the provisions 
of this Agreement. 

Article 30 

The World Coffee Conference 

The  Council  shall  make  arrangements  to  hold,  at  appropriate  intervals,  a  World 
Coffee  Conference  (hereinafter  referred  to  as  the  Conference),  which  shall  be 
composed of exporting and importing Members, private sector representatives, and 
other interested participants, including participants from non-member countries. The 
Council, in coordination with the Chairman of the Conference, shall ensure that the 
Conference contributes to furthering the objectives of this Agreement. 

The Conference shall have a Chairman who shall not be paid by the Organization. 
The Chairman shall be appointed by the Council for an appropriate period, and shall 
be invited to participate in meetings of the Council as an observer. 

The  Council  shall  decide  on  the  form,  title,  subject  matter  and  timing  of  the 
Conference,  in  consultation  with  the  Private  Sector  Consultative  Board.  The 
Conference shall be held normally at the seat of the Organization, during a session 
of the Council. If the Council decides to accept an invitation by a Member to hold a 
session  in  its  territory,  the  Conference  may  also  be  held  in  that  territory,  in  which 
case the additional costs to the Organization involved above those incurred when the 
session is held at the seat of the Organization shall be borne by the country hosting 
the session. 

Unless the Council decides otherwise, the Conference shall be self-financing. 

The Chairman shall report to the Council on the conclusions of the Conference. 

Article 31 

The Consultative Forum on Coffee Sector Finance 

The  Council  shall  convene,  at  appropriate  intervals  and  in  cooperation  with  other 
relevant organizations, a Consultative Forum on Coffee Sector Finance (hereinafter 
referred to as the Forum) to facilitate consultations on topics related to finance and 
risk  management  in  the  coffee  sector,  with  a  particular  emphasis  on  the  needs  of 
small and medium-scale producers and local communities in coffee producing areas. 

The  Forum  shall 
organizations, 

financial 

include 

representatives  of  Members, 
the  private 

intergovernmental 
sector,  non-governmental 

institutions, 

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organizations,  interested  non-member  countries  and  others  with  relevant  expertise. 
Unless the Council decides otherwise, the Forum shall be self-financing. 

(3) 

The Council shall establish rules of procedure for the functioning of the Forum, the 
designation of the Chairman and the wide dissemination of its results, using where 
appropriate mechanisms established in accordance with the provisions of Article 34. 
The Chairman shall report to the Council on the results of the Forum. 

CHAPTER XII – STATISTICAL INFORMATION, STUDIES AND SURVEYS 

Article 32 

Statistical information 

(1) 

The  Organization  shall  act  as  a  centre  for  the  collection,  exchange  and 
publication of: 

(a) 

statistical  information  on  world  production,  prices,  exports,  imports  and 
re-exports,  distribution  and  consumption  of  coffee,  including  information  on 
production,  consumption,  trade  and  prices  for  coffees  in  different  market 
categories and products containing coffee; and 

(b) 

in so far as is considered appropriate, technical information on the cultivation, 
processing and utilization of coffee. 

The  Council  may  require  Members  to  furnish  such  information  as  it  considers 
necessary  for  its  operations,  including  regular  statistical  reports  on  coffee 
production,  production  trends,  exports,  imports  and  re-exports,  distribution, 
consumption,  stocks,  prices  and  taxation,  but  no  information  shall  be  published 
which  might  serve  to  identify  the  operations  of  persons  or  companies  producing, 
processing  or  marketing  coffee.  Members,  in  so  far  as  is  possible,  shall  furnish 
information requested in as detailed, timely and accurate a manner as is practicable. 

The  Council  shall  establish  a  system  of  indicator  prices  and  shall  provide  for  the 
publication of a daily composite indicator price which should reflect actual market 
conditions. 

If a Member fails to supply or finds difficulty in supplying within a reasonable time 
statistical and other information required by the Council for the proper functioning 
of the Organization, the Council may require the Member concerned to explain the 
reasons  for  non-compliance.  The  Member  may  also  inform  the  Council  of  its 
difficulty and request technical assistance. 

If it is found that technical assistance is needed in the matter, or if a Member has not 
furnished,  for  two  consecutive  years,  the  statistical  information  required  under 
paragraph (2) of this Article and has not sought the assistance of the Council or has 
not explained the reasons for non-compliance, the Council may take initiatives likely 
to lead such a Member to furnish the required information. 

(2) 

(3) 

(4) 

(5) 

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Article 33 

Certificates of Origin 

(1) 

(2) 

(3) 

(4) 

(1) 

(2) 

In order to facilitate the collection of statistics on the international coffee trade and 
to  ascertain  the  quantities  of  coffee  which  have  been  exported  by  each  exporting 
Member,  the  Organization  shall  establish  a  system  of  Certificates  of  Origin, 
governed by rules approved by the Council. 

Every  export  of  coffee  by  an  exporting  Member  shall  be  covered  by  a  valid 
Certificate  of  Origin.  Certificates  of  Origin  shall  be  issued,  in  accordance  with  the 
rules established by the Council, by a qualified agency chosen by the Member and 
approved by the Organization. 

Each  exporting  Member  shall  notify  the  Organization  of  the  government  or 
non-governmental agency which is to perform the functions specified in paragraph 
(2) of this Article. The Organization shall specifically approve a non-governmental 
agency in accordance with the rules approved by the Council. 

An  exporting  Member,  on  an  exceptional  basis  and  with  proper  justification,  may 
submit, for approval by the Council, a request to allow data conveyed in Certificates 
of Origin concerning its exports of coffee to be transmitted to the Organization using 
an alternative method. 

Article 34 

Studies, surveys and reports 

In  order  to  assist  Members,  the  Organization  shall  promote  the  preparation  of 
studies, surveys, technical reports and other documents concerning relevant aspects 
of the coffee sector. 

This  may  include  work  on  the  economics  of  coffee  production  and  distribution, 
analysis of the coffee value chain, approaches to managing financial and other risks, 
the impact of governmental measures on the production and consumption of coffee, 
sustainability  aspects  of  the  coffee  sector,  links  between  coffee  and  health  and  the 
opportunities for expansion of coffee markets for traditional and possible new uses. 

(3) 

Information collected, compiled, analysed and disseminated may also include, where 
technically feasible: 

(a) 

(b) 

quantities and prices of coffees relating to factors such as different geographic 
areas and quality-related conditions of production; and 

information  on  market  structures,  niche  markets  and  emerging  trends  in 
production and consumption. 

(4) 

(5) 

In order to carry out the provisions of paragraph (1) of this Article, the Council shall 
adopt  an  annual  work  programme  of  studies,  surveys  and  reports,  with  estimated 
resource  requirements.  These  activities  shall  be  financed  either  from  provisions 
within the Administrative Budget or from extra budgetary sources. 

The  Organization  shall  place  particular  emphasis  on  facilitating  access  to 
information  by  small  coffee  producers  to  assist  them  in  improving  their  financial 
performance, including managing credit and risk. 

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CHAPTER XIII – GENERAL PROVISIONS 

Article 35 

Preparations for a new Agreement 

(1) 

(2) 

The Council may examine the possibility of negotiating a new International Coffee 
Agreement. 

In order to carry out this provision, the Council shall examine the progress made by 
the  Organization  in  achieving  the  objectives  of  this  Agreement  as  specified  in 
Article 1. 

Article 36 

Sustainable coffee sector 

Members shall give due consideration to the sustainable management of coffee resources and 
processing,  bearing  in  mind  the  principles  and  objectives  on  sustainable  development 
contained  in  Agenda  21  adopted  by  the  United  Nations  Conference  on  Environment  and 
Development  held  in  Rio  de  Janeiro  in  1992  and  those  adopted  at  the  World  Summit  on 
Sustainable Development held in Johannesburg in 2002. 

Article 37 

Standard of living and working conditions 

Members shall give consideration to improving the standard of living and working conditions 
of  populations  engaged  in  the  coffee  sector,  consistent  with  their  stage  of  development, 
bearing  in  mind  internationally  recognized  principles  and  applicable  standards  on  these 
matters. Furthermore, Members agree that labour standards shall not be used for protectionist 
trade purposes. 

CHAPTER XIV – CONSULTATIONS, DISPUTES AND COMPLAINTS 

Article 38 

Consultations 

Each  Member  shall  accord  sympathetic  consideration  to,  and  shall  afford  adequate 
opportunity  for,  consultation  regarding  such  representations  as  may  be  made  by  another 
Member  with  respect  to  any  matter  relating  to  this  Agreement.  In  the  course  of  such 
consultation,  on  request  by  either  party  and  with  the  consent  of  the  other,  the  Executive 
Director shall establish an independent panel which shall use its good offices with a view to 
conciliating the parties. The costs of the panel shall not be chargeable to the Organization. If 
a  party  does  not  agree  to  the  establishment  of  a  panel  by  the  Executive  Director,  or  if  the 
consultation  does  not  lead  to  a  solution,  the  matter  may  be  referred  to  the  Council  in 
accordance  with  the  provisions  of  Article  39.  If  the  consultation  does  lead  to  a  solution,  it 
shall be reported to the Executive Director who shall distribute the report to all Members. 

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Article 39 

Disputes and complaints 

(1) 

Any dispute concerning the interpretation or application of this Agreement which is 
not settled by negotiation shall, at the request of any Member party to the dispute, be 
referred to the Council for decision. 

(2) 

The Council shall establish a disputes and complaints settlement procedure. 

CHAPTER XV – FINAL PROVISIONS 

Article 40 

Signature and ratification, acceptance or approval 

(1) 

(2) 

(3) 

(4) 

Except  as  otherwise  provided,  this  Agreement  shall  be  open  for  signature  at  the 
Depositary headquarters from 1 February 2008 until and including 31 August 2008 
by Contracting Parties to the International Coffee Agreement 2001 and Governments 
invited to the session of the Council at which this Agreement was adopted. 

This  Agreement  shall  be  subject  to  ratification,  acceptance  or  approval  by  the 
signatory Governments in accordance with their respective legal procedures. 

Except  as  provided  for  in  Article  42,  instruments  of  ratification,  acceptance  or 
approval shall be deposited  with the  Depositary  not later  than 30 September 2008. 
However,  the  Council  may  decide  to  grant  extensions  of  time  to  signatory 
Governments  which  are  unable  to  deposit  their  instruments  by  that  date.  Such 
decisions shall be transmitted by the Council to the Depositary. 

Upon  signature  and  ratification,  acceptance  or  approval,  or  notification  of 
provisional  application,  the  European  Community  shall  deposit  a  declaration  with 
the  Depositary  confirming  its  exclusive  competence  over  matters  governed  by  this 
Agreement. The member States of the European Community shall not be eligible to 
become Contracting Parties to the Agreement. 

Article 41 

Provisional application 

A signatory Government which intends to ratify, accept or approve this Agreement may, at 
any time, notify the Depositary that it will apply this Agreement provisionally in accordance 
with its legal procedures. 

Article 42 

Entry into force 

(1) 

This  Agreement  shall  enter  into  force  definitively  when  signatory  Governments 
holding  at  least  two-thirds  of  the  votes  of  the  exporting  Members  and  signatory 
Governments  holding  at  least  two-thirds  of  the  votes  of  the  importing  Members, 
calculated as at 28 September 2007, without reference to possible suspension under 
the  terms  of  Article  21,have  deposited  instruments  of  ratification,  acceptance  or 

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(2) 

(3) 

(4) 

(1) 

(2) 

(3) 

approval.  Alternatively,  it  shall  enter  into  force  definitively  at  any  time  if  it  is 
provisionally  in  force  in  accordance  with  the  provisions  of  paragraph (2)  of  this 
Article and these percentage requirements are satisfied by the deposit of instruments 
of ratification, acceptance or approval. 

If  this  Agreement  has  not  entered  into  force  definitively  by  25  September  2008,  it 
shall enter into force provisionally on that date, or on any date within twelve months 
thereafter, if signatory Governments holding votes as described in paragraph (1) of 
this  Article,  have  deposited  instruments  of  ratification,  acceptance  or  approval,  or 
have notified the Depositary in accordance with the provisions of Article 41. 

If this Agreement has entered into force provisionally but has not entered into force 
definitively by 25 September 2009, it shall cease to be in force provisionally unless 
those  signatory  Governments  which  have  deposited  instruments  of  ratification, 
acceptance  or  approval,  or  have  notified  the  Depositary  in  accordance  with  the 
provisions  of  Article  41,  decide,  by  mutual  consent,  that  it  shall  continue  in  force 
provisionally  for  a  specific  period  of  time.  Such  signatory  Governments  may  also 
decide,  by  mutual  consent,  that  this  Agreement  shall  enter  into  force  definitively 
among themselves. 

If  this  Agreement  has  not  entered  into  force  definitively  or  provisionally  by 
25 September 2009 under the provisions of paragraph (1) or (2) of this Article, those 
signatory Governments which have deposited instruments of ratification, acceptance 
or approval, in accordance with their laws and regulations, may, by mutual consent, 
decide that it shall enter into force definitively among themselves. 

Article 43 

Accession 

Except  as  otherwise  provided  for  in  this  Agreement,  the  Government  of  any  State 
member  of  the  United  Nations  or  of  any  of  its  specialized  agencies  or  any 
intergovernmental organization described in paragraph (3) of Article 4 may accede 
to this Agreement in accordance with procedures which shall be established by the 
Council. 

Instruments of accession shall be deposited with the Depositary. The accession shall 
take effect upon deposit of the instrument. 

Upon  deposit  of  an  instrument  of  accession,  any  intergovernmental  organization 
referred  to  in  paragraph  (3)  of  Article  4  shall  deposit  a  declaration  confirming  its 
exclusive competence over matters governed by this Agreement. The member States 
of  such  organization  shall  not  be  eligible  to  become  Contracting  Parties  to  this 
Agreement. 

Reservations may not be made with respect to any of the provisions of this Agreement. 

Article 44 

Reservations 

EN 

26 

   EN 

 
Article 45 

Voluntary withdrawal 

Any  Contracting  Party  may  withdraw  from  this  Agreement  at  any  time  by  giving  a  written 
notice of withdrawal to the Depositary. Withdrawal shall become effective 90 days after the 
notice is received. 

Article 46 

Exclusion 

If the Council decides that any Member is in breach of its obligations under this Agreement 
and decides further that such breach significantly impairs the operation of this Agreement, it 
may exclude such Member from the Organization. The Council shall immediately notify the 
Depositary of any such decision. Ninety days after the  date of  the Council’s decision, such 
Member shall cease to be a Member of the Organization and a Party to this Agreement. 

(1) 

(2) 

(1) 

(2) 

(3) 

Article 47 

Settlement of accounts with withdrawing or excluded Members 

The  Council  shall  determine  any  settlement  of  accounts  with  a  withdrawing  or 
excluded  Member.  The  Organization  shall  retain  any  amounts  already  paid  by  a 
withdrawing or excluded Member and such Member shall remain bound to pay any 
amounts due from it to the Organization at the time the withdrawal or the exclusion 
becomes effective; provided, however, that in the case of a Contracting Party which 
is  unable  to  accept  an  amendment  and  consequently  ceases  to  participate  in  this 
Agreement  under  the  provisions  of  paragraph  (2)  of  Article  49,  the  Council  may 
determine any settlement of accounts which it finds equitable. 

A Member which has ceased to participate in this Agreement shall not be entitled to 
any share of the proceeds of liquidation or the other assets of the Organization; nor 
shall it be liable for payment of any  part of the deficit, if any, of the Organization 
upon termination of this Agreement. 

Article 48 

Duration, extension and termination 

This  Agreement  shall  remain  in  force  for  a  period  of  ten  years  after  it  enters  into 
force provisionally or definitively unless extended under the provisions of paragraph 
(3) of this Article or terminated under the provisions of paragraph (4)  of this Article. 

The  Council  shall  review  this  Agreement  five  years  after  its  entry  into  force  and 
shall take decisions as appropriate. 

The Council may decide to extend this Agreement beyond its expiry date for one or 
more successive periods not to exceed eight years in total. Any Member which does 
not accept any such extension of this Agreement shall so inform the Council and the 
Depositary in writing before the commencement of the period of extension and shall 
cease to be a Party to this Agreement from the beginning of the period of extension. 

(4) 

The Council may at any time decide to terminate this Agreement. Termination shall 
take effect on such date as the Council shall decide. 

EN 

27 

   EN 

 
(5) 

(6) 

(1) 

(2) 

(3) 

Notwithstanding  the  termination  of  this  Agreement,  the  Council  shall  remain  in 
being for as long as necessary to take such decisions as are needed during the period 
of  time  required  for  the  liquidation  of  the  Organization,  settlement  of  its  accounts 
and disposal of its assets. 

Any decision taken with respect to the duration and/or termination of this Agreement 
and  any  notification  received  by  the  Council  pursuant  to  this  Article  shall  be  duly 
transmitted by the Council to the Depositary. 

Article 49 

Amendment 

The Council may propose an amendment of the Agreement and shall communicate 
such proposal to all Contracting Parties. The amendment shall enter into force for all 
Members  of  the  Organization  100  days  after  the  Depositary  has  received 
notifications  of  acceptance  from  Contracting  Parties  holding  at  least  two-thirds  of 
the  votes  of  the  exporting  Members,  and  from  Contracting  Parties  holding  at  least 
two-thirds  of  the  votes  of  the  importing  Members.  The  two-thirds  percentage 
referred to herein shall be calculated based upon the number of Contracting Parties 
to the Agreement at the time that the proposal of the amendment was circulated to 
the  Contracting  Parties  concerned  for  acceptance.  The  Council  shall  fix  a  time 
within which Contracting Parties shall  notify the Depositary of their  acceptance  of 
the  amendment,  which  shall  be  communicated  by  the  Council  to  all  Contracting 
Parties  and  the  Depositary.  If,  on  expiry  of  such  time  limit,  the  percentage 
requirements  for  the  entry  into  effect  of  the  amendment  have  not  been  met,  the 
amendment shall be considered withdrawn. 

Unless the Council decides otherwise, any Contracting Party which has not notified 
acceptance of an amendment within the period fixed by the Council shall cease to be 
a  Contracting  Party  to  this  Agreement  from  the  date  on  which  such  amendment 
becomes effective. 

The  Council  shall  notify  the  Depositary  of  any  amendments  distributed  to  the 
Contracting Parties under this Article. 

Article 50 

Supplementary and transitional provision 

All  acts  by  or  on  behalf  of  the  Organization  or  any  of  its  organs  under  the  International 
Coffee Agreement 2001 shall remain in effect until the entry into force of this Agreement. 

Article 51 

Authentic texts of the Agreement 

The texts of this Agreement in the English, French, Portuguese and Spanish languages shall 
all be equally authentic. The originals shall be deposited with the Depositary. 

IN  WITNESS  WHEREOF  the  undersigned,  having  been  duly  authorized  to  this  effect  by 
their  respective  Governments,  have  signed  this  Agreement  on  the  dates  appearing  opposite 
their signatures. 

EN 

28 

   EN 

 
ANNEX 

CONVERSION FACTORS FOR ROASTED, DECAFFEINATED, 
LIQUID AND SOLUBLE COFFEE 
AS DEFINED IN THE 
INTERNATIONAL COFFEE AGREEMENT 2001 

Roasted coffee 

To  find  the  equivalent  of  roasted  coffee  to  green  coffee,  multiply  the  net  weight  of  roasted 
coffee by 1.19. 

Decaffeinated coffee 

To find the equivalent of decaffeinated coffee to green coffee, multiply the net weight of the 
decaffeinated coffee in green, roasted or soluble form by 1.00, 1.19 or 2.6 respectively. 

Liquid coffee 

To find the equivalent of liquid coffee  to green coffee,  multiply the net weight of the dried 
coffee solids contained in the liquid coffee by 2.6. 

Soluble coffee 

To find the equivalent of soluble coffee to green coffee, multiply the net weight of the soluble 
coffee by 2.6. 

EN 

29 

   EN 

 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

NAME OF THE PROPOSAL: 

Proposal  for  a  Council  Decision  regarding  the  signature  and  conclusion  of  the 
International Coffee Agreement 2007. 

2. 

ABM / ABB FRAMEWORK 

Policy  Area(s)  concerned  and  associated  Activity/Activities:  External  Relations, 
Development  and  relations  with  ACP  countries.  Obligations  vis  à  vis  of  the 
International Commodities organisations 

3. 

3.1. 

BUDGET LINES 

Budget  lines  (operational  lines  and  related  technical  and  administrative 
assistance lines (ex- B..A lines)) including headings: 

21 07 04 Commodities agreement 

3.2. 

Duration of the action and of the financial impact: 

Ten years unless the Agreement is renegotiated or extended 

3.3. 

Budgetary characteristics : 

Budget 
line 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

Comp 

Diff1/ 

NO 

NO 

NO 

No [ 4 ] 

1 Differentiated appropriations 

EN 

30 

   EN 

 
 
 
 
 
 
 
 
 
 
 
                                                 
4. 

SUMMARY OF RESOURCES 

4.1. 

Financial Resources 

4.1.1. 

Summary of commitment appropriations (CA) and payment appropriations (PA) 

EUR million (to 3 decimal places) 

Expenditure type 

Section 
no. 

n + 1 

n + 2 

n + 3 

n + 4 

Year 
n 

n + 5 
and 
later 

Total 

Operational expenditure2 

Commitment 
Appropriations (CA) 

8.1 

Payment  Appropriations 
(PA) 

a 

b 

1,125  1,193 

1,253 

1,316 

1,382 

1,451 

7,720* 

1,125  1,193 

1,253 

1,316 

1,382 

1,451 

7,720* 

* The calculation of the EC proportion is based on the current 
ICA  2001.  The  budget  for  2008/09  will  be  decided  in 
September  2008  so  these  figures  are  just  an  estimation  based 
on  the  current  budget.  The  calculation  takes  into  account  an 
annual average of increase equal to 5-6 %. 
Administrative expenditure within reference amount3 

Technical 
& 
administrative  assistance 
(NDA) * 

8.2.4 

c 

**  NNoo  nneeeedd  ffoorr  tteecchhnniiccaall  aanndd  aaddmmiinniissttrraattiivvee  
aassssiissttaannccee  

TTOOTTAALL  RREEFFEERREENNCCEE  AAMMOOUUNNTT  

Commitment 
Appropriations 

Payment 
Appropriations 

1,125  1,193 

1,253 

1,316 

1,382 

1,451 

7,720* 

1,125  1,193 

1,253 

1,316 

1,382 

1,451 

7,720* 

a+c 

b+c 

Administrative expenditure not included in reference amount4 
**  NNoo  nneeeedd  ffoorr  tteecchhnniiccaall  aanndd  aaddmmiinniissttrraattiivvee  aassssiissttaannccee 

Human 
associated 
(NDA) 

resources 

and 
expenditure 

Administrative  costs,  other 
than  human  resources  and 
associated 
not 
included in reference amount 
(NDA) 

costs, 

8.2.5 

d 

8.2.6 

e 

2 Expenditure that does not fall under Chapter xx 01 of the Title xx concerned. 
3 Expenditure within article xx 01 04 of Title xx. 
4 Expenditure within chapter xx 01 other than articles xx 01 04 or xx 01 05. 

EN 

31 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 Total indicative financial cost of intervention  

1,125  1,193  1,253  1,316  1,382  1,451  7,720* 

1,125  1,193  1,253  1,316  1,382  1,451  7,720* 

TOTAL  CA 
including  cost 
of 
Human 
Resources 

TOTAL  PA 
including  cost 
of 
Human 
Resources 

a+c+d+e 

b+c+d+
e 

Co-financing details 

If  the  proposal  involves  co-financing  by  Member  States,  or  other  bodies  (please 
specify  which),  an  estimate  of  the  level  of  this  co-financing  should  be  indicated  in 
the table below (additional lines may be added if different bodies are foreseen for the 
provision of the co-financing): 

EUR million (to 3 decimal places) 

Year 
n 

n + 1

n + 2

n + 3

n + 4 

n + 5 
and 
later 

Total 

Co-financing body 

…………………… 

TOTAL  CA  including  co-
financing 

f 

a+c
+d
+e
+f 

4.1.2.  Compatibility with Financial Programming 

X 

(cid:133) 

(cid:133) 

Proposal is compatible with existing financial programming. 

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial 
perspective. 

Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional 
Agreement5 (i.e. flexibility instrument or revision of the financial perspective). 

4.1.3.  Financial impact on Revenue 

X 

(cid:133) 

Proposal has no financial implications on revenue 

Proposal has financial impact – the effect on revenue is as follows: 

Budget line 

Revenue 

EUR million (to one decimal place) 

Situation following action 

[Yea
r n] 

[n+1] [n+2]  [n+3

] 

[n+4] [n+5]

6

Prior to
action 
[Year 
n-1] 

5 
6 

See points 19 and 24 of the Interinstitutional agreement. 
Additional columns should be added if necessary i.e. if the duration of the action exceeds 6 years 

EN 

32 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
a) Revenue in absolute terms 

b) Change in revenue 

 ∆ 

4.2. 

Human Resources FTE (including officials, temporary and external staff) – see 
detail under point 8.2.1. 

The needs for human and administrative resources shall be covered within the allocation 
granted to the managing DG in the framework of the annual allocation procedure. 

Annual requirements 

Year n 

n + 1 

n + 2 

n + 3 

n + 4 

n + 5 
and 
later 

Total  number  of  human 
resources 

2 

2 

2 

2 

2 

2 

5. 

CHARACTERISTICS AND OBJECTIVES 

5.1. 

Need to be met in the short or long term 

Obligation to be member as the result of the positive outcome of the negotiation and 
the attainment of the major achievements wished by the Community and agreed by 
Council  in  the  Directives  of  negotiation.  Membership  also  recommended  by  the 
conclusions  of  the  recent  Study  on  the  Future  of  International  Commodity  Bodies 
(ICBs) where a general assessment of the EC participation to (ICBs), including ICO, 
is carried on in view of a global approach 

5.2. 

Value-added  of  Community  involvement  and  coherence  of  the  proposal  with 
other financial instruments and possible synergy 

The  present  membership  to  the  International  Coffee  Agreement  derives  from  the 
broader  approach  always  followed  by  the  Community  in  signing  and  concluding 
international  commodity  agreements  once  negotiated,  as  a  tool  for  facilitating 
exchanges  and  trade  relations  among  importers  and  exporters.  This  facilitates 
development.  As  it  derives  from  an  accurate  analysis  of  the  objectives  of  this  new 
agreement, the major aims are focused on trade and a better increased cooperation. 
Consequently, the Commission proposes to the Council to recognise the competence 
on  the  basis  of  Art.133,  associated  with  Art.300  (2).  In  addition,  as  the  present 
agreement covers, in general terms, also the political, administrative, economic and 
environmental  aspects  of  coffee,  the  development  of  a  sustainable  economy  is 
obviously  a  direct  consequence.  There  are  no  clear  indicators  to  measure  the 
achievements  of  these  targets,  unless  we  consider  the  will  of  the  members  to 
continue  the  international  cooperation  as  a  positive  and  satisfactory  indicator.  The 
achievement  of  sustainability  as  well  as  the  progresses  in  development  reached  by 
producing members could be also interpreted as positive indicator. 
The  proposal  is  coherent  with  other  financial  instruments  ensuring  the  EC 
participation  to  international  organisations.  No  synergies  possible  at  the  present 
stage. 

EN 

33 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.3. 

Objectives, expected results and related indicators of the proposal in the context 
of the ABM framework 

Within the ABM framework, the present proposal has the objective to respond to the 
objective  of  developing  the  Commission’s  role  as  an  intellectual  focal  point  for 
development  and  ensures  effective  participation  in  the  international  policy  debate. 
The  main  output  indicator  could  be  considered  the  EU  positions  for  major 
international  initiatives,  conventions,  fora  and  platforms.  The  impact  indicator  may 
be  considered  the  reflection  of  the  EU  positions  in  international  partnership  and 
funds as well as international multilateral fora, as ICO. 
The  proposal  will  allow  the  Commission,  acting  on  behalf  of  the  Community,  to 
express its will and by that, ensuring the implementation of the agreement during its 
life. Therefore there is an interest of the Commission, within its own competencies, 
to propose the present decision in conformity with its role and to what stated at the 
moment of the conclusion of the negotiating process. 

5.4.  Method of Implementation (indicative) 

X 

Centralised Management 

X 

(cid:133) 

directly by the Commission 

indirectly by delegation to: 

(cid:133) 

(cid:133) 

executive Agencies 

bodies set up by the Communities as referred to in art. 185 of the 
Financial Regulation 

(cid:133) 

national public-sector bodies/bodies with public-service mission 

(cid:133) 

Shared or decentralised management 

(cid:133)  with Member states 

(cid:133)  with Third countries 

(cid:133) 

Joint management with international organisations (please specify) 

Relevant comments: 

EN 

34 

   EN 

 
 
6. 

MONITORING AND EVALUATION 

6.1.  Monitoring system 

The  Commission  Services  attend  regularly  the  Council  sessions  as  well  as  the 
Administrative/financial Committee of the International Coffee Organisation. These 
two bodies are mandated to propose and approve the administrative budget and the 
inherent contributions. The administrative budget, its utilisation, the financial status 
of the expenditures and accounts of the International Coffee Organisation are at the 
disposal of the members. 

6.2. 

Evaluation 

6.2.1.  Ex-ante evaluation 

Evaluation  of  the  compatibility  of  the  annual  proposal  with  our  financial  policy  is 
carried  out  for  all  commodity  agreements  where  the  European  Community  is 
contracting party. 

6.2.2.  Measures taken following an intermediate/ex-post evaluation (lessons  learned from 

similar experiences in the past) 

This exercise is carried out, if necessary, at the moment of a future renegotiation at 
the end of the validity of the ICA 2007. At the moment, the proposal for conclusion 
is  in  conformity  with  the  recommendations  contained  in  the  general  evaluation 
carried  out  by  an  external  consultancymandated  to  assess  the  different  ICBs  before 
starting the negotiating process. 

6.2.3.  Terms and frequency of future evaluation 

There  is  not  an  evaluation  scheduled;  however  a  mid  term  review  of  the 
implementation  and  achievements  of  the  agreement  will  be  probably  carried  out 
within the Organisation itself 

7. 

ANTI-FRAUD MEASURES  

The  Commission  will  ensure  the  constant  monitoring  of  the  administrative 
management  of  the  financial  resources  of  the  International  Coffee  Organisation.

If so required, the International Coffee Organisation is willing to grant the access to 
its  records  and  books  to  OLAF  as  well  as  to  all  other  financial  and  audit  services 
when and if requested by the Commission. 

EN 

35 

   EN 

 
 
 
8. 

DETAILS OF RESOURCES 

8.1. 

Objectives of the proposal in terms of their financial cost 

of 

(Headings 
Objectives, 
actions 
and 
outputs should be 
provided) 

OPERATIONAL 
OBJECTIVE  No.1 
7……… 

Type of output 

Av. 
cost 

Year n 

Year n+1 

Year n+2 

Year n+3 

Year n+4 

Year n+5 and 
later 

TOTAL 

Commitment appropriations in EUR million (to 3 decimal places) 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

1 

1,125 

 1 

1,193 

 1 

1,253 

 1 

1,316 

 1 

1,382 

 1 

1,451 

 6  

7,720 

the 

Contributions 
to 
International 
Commodities 
Organisations 

TOTAL COST 

1 

1 

1,125 

 1 

1,193 

 1 

1,253 

 1 

1,316 

 1 

1,382 

 1 

1,451 

6 

7,720 

7 

As described under Section 5.3 

EN 

36 

EN 

 
  
 
 
                                                 
8.2. 

Administrative Expenditure 

8.2.1.  Number and type of human resources 

The  needs  for  human  and  administrative  resources  shall  be  covered  within  the 
allocation  granted  to  the  managing  DG  in  the  framework  of  the  annual  allocation 
procedure. The staff and the administrative expenditure are included in the normal 
allocation of the DG 

Types of post 

Staff to be assigned to management of the action using existing and/or 
additional resources (number of posts/FTEs) 

Year n 

Year n+1  Year n+2  Year n+3  Year n+4  Year n+5 

Officials or 
temporary 
staff8 (XX 01 
01) 

A*/AD 

B*, 
C*/AST 

Staff  financed9  by  art. 
XX 01 02 

Other  staff10  financed by 
art. XX 01 04/05 

TOTAL 

8.2.2.  Description of tasks deriving from the action 

Attendance  to  meetings,  study  of  documents,  discussion  with  Member  States  and 
finally negotiations within the International Coffee Organisation. 

8.2.3. 

Sources of human resources (statutory) 

(cid:133) 

(cid:133) 

(cid:133) 

(cid:133) 

(cid:133) 

Posts currently allocated to the management of the programme to be replaced 
or extended 

Posts pre-allocated within the APS/PDB exercise for year n 

Posts to be requested in the next APS/PDB procedure 

Posts  to  be  redeployed  using  existing  resources  within  the  managing  service 
(internal redeployment) 

Posts required for year n although not foreseen in the APS/PDB exercise of the 
year in question 

8 
9 
10 

Cost of which is NOT covered by the reference amount 
Cost of which is NOT covered by the reference amount 
Cost of which is included within the reference amount 

EN 

37 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
8.2.4.  Other  Administrative  expenditure  included  in  reference  amount  (XX  01  04/05  – 

Expenditure on administrative management) 

no need  

Budget line 

(number and heading) 

EUR million (to 3 decimal places) 

Year 
n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5  

and 
later 

TOTAL 

Technical 

1 
and 
assistance (including related staff costs) 

administrative 

Executive agencies11 

Other 

technical 

and 

administrative 

assistance 

- intra muros  

- extra muros 

Total  Technical  and  administrative 
assistance 

NO 

NEE
D 

8.2.5.  Financial cost of human resources and associated costs not included in the reference 

amount 

The  needs  for  human  and  administrative  resources  shall  be  covered  within  the 
allocation  granted  to  the  managing  DG  in  the  framework  of  the  annual  allocation 
procedure.  The  staff  and  the  administrative  expenditure  are  included  in  the  normal 
allocation of the DG. 

EUR million (to 3 decimal places) 

Type of human resources 

Year n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5 

and later 

Officials  and  temporary  staff 
(XX 01 01) 

Staff  financed  by  Art  XX  01 
02  (auxiliary,  END,  contract 
staff, etc.) 

(specify budget line) 

11 

Reference should be made to the specific legislative financial statement for the Executive Agency(ies) 
concerned. 

EN 

38 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
cost 

Total 
of  Human 
Resources  and  associated 
costs 
in  reference 
amount) 

(NOT 

Calculation– Officials and Temporary agents 

Calculation– Staff financed under art. XX 01 02 

8.2.6. Other administrative expenditure not included in reference amount 

EUR million (to 3 decimal places)

Year 
n 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5 

and 
later 

TOTAL 

XX 01 02 11 01 – Missions 

XX 01 02 11 02 – Meetings & Conferences 

XX 01 02 11 03 – Committees12  

XX 01 02 11 04 – Studies & consultations 

XX 01 02 11 05 - Information systems 

2 

Total 

Other  Management 

Expenditure (XX 01 02 11) 

3  Other 

expenditure 

administrative 
including reference to budget line) 

nature 

of 

an 
(specify 

expenditure, 
than  human  resources  and 
in 

Total  Administrative 
other 
associated  costs  (NOT 
reference amount) 

included 

12 

Specify the type of committee and the group to which it belongs. 

EN 

39 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Calculation - Other administrative expenditure not included in reference amount 

EN 

40 

   EN