Proposal for a Council Decision on the position to be taken by the European Union within the Association Council established by the Euro-Mediterranean Agreement establishing an association between the European Community and its Member States, of the one part, and the People's Democratic Republic of Algeria, of the other part, as regards the amendment of Article 15(7) of Protocol No 6 to that Agreement, concerning the definition of the concept of "originating products" and methods of administrative cooperation
Date: 2010-04-16
Institutions: European Commission
Subjects: Algeria, administrative cooperation, association agreement (EU), customs duties, originating product, tariff exemption, trade agreement (EU)

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EUROPEAN COMMISSION 

Brussels, 16.4.2010 
COM(2010)156 final 

2010/0086 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the position to be taken by the European Union within the Association Council 
established by the Euro-Mediterranean Agreement establishing an association between 
the European Community and its Member States, of the one part, and the People's 
Democratic Republic of Algeria, of the other part, as regards the amendment of 
Article 15(7) of Protocol No 6 to that Agreement, concerning the definition of the 
concept of "originating products" and methods of administrative cooperation  

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The  prohibition  of  drawback  of  customs  duties  is  stipulated  in  Article  15  of 
Protocol No  6  annexed  to  the  EC-Algeria  Association  Agreement.  Paragraph  7  of 
that  article  provides  for  a  transitional  period  prior  to  the  full  application  of  the 
prohibition  of  drawback  of  duties  by  Algeria  and  allows  the  country  to  grant  duty 
drawback to its exporters or economic operators during this period. 

The  transitional  period  expired  on  31  December  2009.  However,  Article  15(7) 
provides for the possibility of re-examining this provision by mutual agreement. 

Algeria has requested in writing that the period in which the provision on drawback 
applies be extended and that the rates of customs charges be revised. 

In accordance with Article 39 of Protocol No 6, the provisions of the Protocol may 
be amended by decision of the Association Council. 

The text of the decision will replace the existing provision laid down in Article 15(7).  

It  includes  both  the  change  to  the  application  period  of  the  provision  on  drawback 
and the revision of the rates of customs charges to be retained. 

The  parties  have  agreed  to  extend  by  three  years  the  application  period  of 
Article 15(7), with effect from 1 January 2010 in order to provide clarity, long-term 
economic predictability and legal certainty for economic operators. 

The  parties  have  also  decided  to  adjust  the  rates  of  customs  charges  currently 
applicable  in  Algeria  to  bring  them  into  line  with  those  that  apply  in  the  European 
Union.  

Pending  formal  adoption  of  the  present  decision,  it  was  agreed,  in  an  exchange  of 
correspondence  between  the  European  Commission  and  the  relevant  Algerian 
authorities, that this decision will apply from 1 January 2010. 

2. 

CONSULTATION  OF 
ASSESSMENT 

INTERESTED 

PARTIES  AND 

IMPACT 

The parties concerned have been consulted in the Pan-Euro-Med working group and 
the Customs Code Committee's Origin Section. 

No recourse to external expertise has been necessary. 

It  has  not  been  necessary  to  conduct  an  impact  assessment,  since  the  proposed 
amendments are technical in nature and do not affect the substance of the protocol on 
rules of origin currently in effect. 

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3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Given the nature of the changes to be made to Article 15(7) of Protocol No 6 and in 
the interest of legal certainty, the whole paragraph should be replaced. 

The  amended  provision  on  drawback  of  duties  should  apply  retroactively  from 
1 January 2010. 

The  legal  basis  for  the  amendment  of  this  provision  is  the  first  subparagraph  of 
Article 207(4) in conjunction with Article 218(9) of the Treaty on the Functioning of 
the European Union. 

The  proposal  falls  under  the  exclusive  competence  of  the  Union.  The  principle  of 
subsidiarity does not therefore apply. 

Proposed instrument: Council decision 

4. 

BUDGETARY IMPLICATIONS 

This proposal has no financial implications for the Union budget. 

5. 

ADDITIONAL INFORMATION 

The proposal does not include any review, revision or sunset clause. 

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2010/0086 (NLE) 

Proposal for a 

COUNCIL DECISION 

on the position to be taken by the European Union within the Association Council 
established by the Euro-Mediterranean Agreement establishing an association between 
the European Community and its Member States, of the one part, and the People's 
Democratic Republic of Algeria, of the other part, as regards the amendment of 
Article 15(7) of Protocol No 6 to that Agreement, concerning the definition of the 
concept of "originating products" and methods of administrative cooperation  

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union, and in particular the 
first subparagraph of Article 207(4) in conjunction with Article 218(9) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

Protocol  No  61  to  the  Euro-Mediterranean  Agreement  between  the  European 
Community  and  its  Member  States,  of  the  one  part,  and  the  People's  Democratic 
Republic  of  Algeria,  of  the  other  part,  hereafter  "the  Agreement",  as  amended  by 
Decision  No 2/2007  of  the  EU-Algeria  Association  Council  of  16  October  20072, 
concerns  the  definition  of  the  concept  of  "originating  products"  and  methods  of 
administrative cooperation. 

Article  15  of  Protocol  No  6  contains  a  general  prohibition  of  drawback  of,  or 
exemption from, customs duties for non-originating materials used in the manufacture 
of originating products. However, paragraph 7 of this article stipulates that a drawback 
or exemption may be applied until 31 December 2009 subject to certain conditions. 

In  order  to  provide  clarity,  long-term  economic  predictability  and  legal  certainty  for 
economic  operators,  the  parties  have  agreed  to  extend  by  three  years  the  application 
period of Article 15(7), with effect from 1 January 2010. 

(4)  Moreover,  the  rates  of  customs  charges  currently  applicable  in  Algeria  should  be 

adjusted to bring them into line with those that apply in the European Union. 

(5) 

In accordance with Article 39  of Protocol No 6, the Association Council established 
by the Agreement should decide to amend the Protocol accordingly. 

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OJ L 265, 10.10.2005, p. 2. 
OJ L 297, 15.11.2007, p. 1. 

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(6) 

The European Union should therefore adopt the position set out in the attached draft 
decision within the Association Council, 

HAS ADOPTED THIS DECISION: 

Article 1 

The position to be adopted by the European Union within the Association Council established 
by  the  Euro-Mediterranean  Agreement  establishing  an  association  between  the  European 
Community and its Member States, of the one part, and the People's Democratic Republic of 
Algeria, of the other part, as regards the amendment of Article 15(7) of Protocol No 6 to that 
Agreement, concerning the definition of the concept of "originating products" and methods of 
administrative cooperation, with a view to extending the application period of that provision, 
is set out in the attached draft decision of the Association Council. 

Article 2 

The  decision  of  the  Association  Council  shall  be  published  in  the  Official  Journal  of  the 
European Union. 

Done at Brussels, 

For the Council 
The President 

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DECISION No […] OF THE EU-ALGERIA ASSOCIATION COUNCIL 

Draft 

of […] 

amending Article 15(7) of Protocol No 6 to the Euro-Mediterranean Agreement 
establishing an association between the European Community and its Member States, of 
the one part, and the People's Democratic Republic of Algeria, of the other part, 
regarding the definition of the concept of "originating products" and methods of 
administrative cooperation 

THE ASSOCIATION COUNCIL, 

Having regard to the Euro-Mediterranean Agreement establishing an association between the 
European  Community  and  its  Member  States,  of  the  one  part,  and  the  People's  Democratic 
Republic of Algeria, of the other part, and in particular Article 39 of Protocol No 6 thereto, 

Whereas: 

(1) 

(2) 

Article 15(7) of Protocol No 6 to the Euro-Mediterranean Agreement establishing an 
association between the European Community and its Member States, of the one part, 
and  the  People's  Democratic  Republic  of  Algeria,  of  the  other  part,  hereafter  "the 
Agreement", allows drawback of, or exemption from, customs duties or charges with 
equivalent effect, subject to certain conditions, until 31 December 2009. 

In  order  to  provide  clarity,  long-term  economic  predictability  and  legal  certainty  for 
economic  operators,  the  parties  have  agreed  to  extend  by  three  years  the  application 
period of Article 15(7), with effect from 1 January 2010. 

(3)  Moreover,  the  rates  of  customs  charges  currently  applicable  in  Algeria  should  be 

adjusted to bring them into line with those that apply in the European Union. 

(4) 

(5) 

Protocol No 6 to the Agreement should therefore be amended accordingly. 

Since  Article  15(7)  no  longer  applies  as of  31  December  2009,  this  Decision  should 
apply from 1 January 2010, 

HAS DECIDED AS FOLLOWS: 

Article 1 

Article  15(7)  of  Protocol  No 6  to  the  Euro-Mediterranean  Agreement  establishing  an 
association between the European Community and its Member States, of the one part, and the 
People's  Democratic  Republic  of  Algeria,  of  the  other  part,  regarding  the  definition  of  the 

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concept of "originating products" and methods of administrative cooperation, is replaced by 
the following text: 

"7.  Notwithstanding  paragraph  1,  Algeria  may,  except  for  products  falling  within 
Chapters 1 to 24 of the Harmonised System, apply arrangements for drawback of, or 
exemption from, customs duties or charges having an equivalent effect, applicable to 
non-originating materials used in the manufacture of originating products, subject to 
the following provisions: 

(a) 

(b) 

a  4%  rate  of  customs  charge  shall  be  retained  in  respect  of  products  falling 
within  Chapters  25  to  49  and  64  to  97  of  the  Harmonised  System,  or  such 
lower rate as is in force in Algeria. 

an  8%  rate  of  customs  charge  shall  be  retained  in  respect  of  products  falling 
within Chapters 50 to 63 of the Harmonised System, or such lower rate as is in 
force in Algeria. 

The  provisions  of  this  paragraph  shall  apply  until  31  December  2012  and  may  be 
reviewed by common accord." 

This Decision shall enter into force on the day of its adoption. 

Article 2 

It shall apply from 1 January 2010. 

Done at  

For the Association Council 
The President 

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