Proposal for a COUNCIL DECISION on a European Union position within the EU-Chile Special Committee on Customs Cooperation and Rules of Origin relating to Annex III to the Agreement establishing an association between the European Community and its Member States, of the one part, and the Republic of Chile, of the other part, concerning the definition of the concept of 'originating products' and methods of administrative cooperation
Date: 2011-02-14
Institutions: European Commission
Subjects: Chile, administrative cooperation, customs regulations, movement certificate, originating product

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EUROPEAN COMMISSION 

Brussels, 14.2.2011 
COM(2011) 59 final 

2011/0030 (NLE) 

Proposal for a 

COUNCIL DECISION 

on a European Union position within the EU-Chile Special Committee on Customs 
Cooperation and Rules of Origin relating to Annex III to the Agreement establishing an 
association between the European Community and its Member States, of the one part, 
and the Republic of Chile, of the other part, 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 

•  Grounds for and objectives of the proposal 

The Association Agreement between the European Community and its Member States, of the 
one part, and the Republic of Chile, of the other part, was signed on 18 November 2002. 

Annex III to the EU-Chile Association Agreement concerning the definition of the concept of 
'originating products' and methods of administrative cooperation, sets out the rules of origin 
for the products originating in the territory of the Parties to the Agreement. 

Chile and the European Union have agreed to introduce a clarification to the rules of origin 
contained in Annex III. This will be done through an explanatory note to Annex III. 

•  General context 

Annex  III  entered  into  force  on  1  February  2003.  Explanatory  Notes  to  Annex  III  –  whose 
provisions serve the purpose of providing the customs authorities with clear guidelines on the 
practical  application  of  Annex  III  to  the  Agreement  –  have  been  in  force  since  1  January 
2004. 

•  Existing provisions in the area of the proposal 

There are no existing provisions in the area of the proposal. 

•  Consistency with the other policies and objectives of the Union 

Not applicable. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

Not relevant. 

This proposal introduces clarifications to a previous text. 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

Not relevant. This proposal introduces clarifications to an existing bilateral trade agreement. 
There are no other options to be considered. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

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The Council is asked to adopt a European Union position on a draft Decision of the European 
Union -  Chile  Special  Committee  on Customs  Cooperation and Rules of Origin introducing 
clarifications  to  the  rules  of  origin  contained  in  Annex  III  to  the  Association  Agreement 
concerning  the  definition  of  the  concept  of 
'originating  products'  and  methods  of 
administrative cooperation. 

•  Legal basis 

Article 39 of Annex III to the Association Agreement empowers the Parties to agree on the 
.Explanatory Notes regarding the interpretation, application and administration of this Annex 
within the Special Committee on Customs Cooperation and Rules of Origin. . 

•  Subsidiary principle 

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

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s): 

Not relevant. 

•  Choice of instruments 

Proposed instruments: other. 

Other means would not be adequate for the following reason(s): 

Decision of the EU-Chile Special Committee on Customs Cooperation and Rules of Origin. 

4. 

BUDGETARY IMPLICATION 

The proposal has no implication for the European Union budget. 

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2011/0030 (NLE) 

Proposal for a 

COUNCIL DECISION 

on a European Union position within the EU-Chile Special Committee on Customs 
Cooperation and Rules of Origin relating to Annex III to the Agreement establishing an 
association between the European Community and its Member States, of the one part, 
and the Republic of Chile, of the other part 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 
Article 207 (3) and (4) thereof, in conjunction with Article 218(9) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

Preferential  rules  of  origin  are  essential  for  the  correct  functioning  of  the  free  trade 
agreements between the European Union and its trading partners, including Chile. The 
European Union and its Member States, of the one part, and Chile, of the other part, 
have signed an Association Agreement on 18 November 20021. 

Annex  III  to  the  Association  Agreement  defines  the  concept  of  originating  products 
and methods of administrative cooperation. It entered into force on 1 February 2003. 

Explanatory Notes to Annex III – whose provisions serve the purpose of providing the 
customs authorities with clear guidelines on the practical application of Annex III to 
the Agreement – have been in force since 1 January 2004. 

The Association Agreement aims in Article 58 at eliminating customs duties on goods 
originating  in  one  Party  and  exported  to  the  other  Party,  by  referring  to  the  rules  of 
origin laid down in Annex III to the Agreement. The Annex refers in Article 36(2) to 
the ''customs territory of the Community'', 

HAS ADOPTED THIS DECISION:  

Article 1 

For  the  purpose  of  Annex  III  to  the  Association  Agreement  between  the  European 
Community and its Member States and the Republic of Chile, the terms "customs territory 
of  the  Community"  covers  the  customs  territory  of  the  European  Community  (now  the 

1 

Council Decision of 18 November 2002. OJ L 352, p. 1. 

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European  Union)  as  defined  in  Article  3.1  of  Council  Regulation  (EEC)  No  2913/92  of  12 
October  1992  establishing  the  Community  Customs  Code,  without  prejudice  to  any  future 
amendment or repealing of the existing legislation. 

This Explanatory Note is without prejudice to Title VII on Ceuta and Melilla of that Annex 
III. 

Article 2 

This Decision shall enter into force with immediate effect. 

Done at Brussels, 

For the Council 
The President 

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ANNEX 

DECISION OF THE EU - CHILE SPECIAL COMMITTEE ON CUSTOMS COOPERATION 
AND RULE OF ORIGIN 

No..../2010  

relating  to  Annex  III  to  the  Association  Agreement  establishing  an  association  between  the 
European Community and its Member States, of the one part, and the Republic of Chile, of the 
other  part,  concerning  the  definition  of  the  concept  of  originating  products  and  methods  of 
administrative cooperation 

THE SPECIAL COMMITTEE, 

Having  regard  to  the  Association  Agreement  establishing  an  association  between  the  European 
Community and its Member States, of the one part, and the Republic of Chile, of the other part of 18 
November 2002, and in particular Article 36(2) to Annex III concerning the definition of the concept of 
originating products and methods of administrative cooperation, 

Whereas: 

(1) 

(2) 

(3) 

Annex III to the Association Agreement sets out the rules of origin for the products originating 
in the territory of the Parties to the Agreement. 

Article 36(2) of the Annex, refers to the "customs territory of the Community".  

It is considered appropriate to define the terms "customs territory of the Community" in order to 
ensure the correct territorial application of the Annex in the form of an Explanatory Note to the 
Annex. 

HAS DECIDED AS FOLLOWS: 

Article 1 

For the purpose of Annex III to the Association Agreement between the European Community and 
its Member States and the Republic of Chile, the terms "customs territory of the Community" covers 
the customs territory of the European Community (now the European Union) as defined in Article 3.1 
of  Council  Regulation  (EEC)  No  2913/92  of  12  October  1992  establishing  the  Community  Customs 
Code, without prejudice to any future amendment or repealing of the existing legislation. 

This Explanatory Note is without prejudice to Title VII on Ceuta and Melilla of that Annex III. 

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Article 2 

This Decision shall enter into force with immediate effect. 

Done at xxx, 

For the Special Committee 
The President 

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