Proposal for a COUNCIL DECISION on the position to be taken by the European Union within the Joint Committee established by the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the European Community, of the one part, and the Palestine Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, on the amendment of Article 15(7) of Protocol No 3 to that Agreement concerning the definition of the concept of "originating products" and methods of administrative cooperation
Date: 2013-10-24
Institutions: European Commission
Subjects: European Association Agreement, Palestine Liberation Organisation, Union for the Mediterranean, administrative cooperation, cooperation agreement (EU), customs drawback, extra-EU trade, originating product, revision of an agreement, trade relations













EUR-Lex - 52013PC0728 - EN











|



52013PC0728

Proposal for a COUNCIL DECISION on the position to be taken by the European Union within the Joint Committee established by the Euro-Mediterranean Interim Association Agreement on trade and cooperation between the European Community, of the one part, and the Palestine Liberation Organisation (PLO) for the benefit of the Palestinian Authority of the West Bank and the Gaza Strip, of the other part, on the amendment of Article 15(7) of Protocol No 3 to that Agreement concerning the definition of the concept of "originating products" and methods of administrative cooperation /* COM/2013/0728 final - 2013/0348 (NLE) */









EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
The prohibition of drawback of customs
duties is stipulated in Article 15 of Protocol No 3 annexed to the EC-PLO
Association Agreement, as amended by Decision No 1/2009 of the EU-PLO
Joint Committee of 24 June 2009[1].
Paragraph 7 of that Article provides for a transitional period prior to the
full application of the prohibition of drawback of duties by the West Bank and the Gaza Strip and allows this partner 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 common accord.
Further to a request from the PLO, in 2010
the Commission proposed extending the application period of this provision
until 31 December 2012[2].
However, the EU‑PLO Joint Committee never adopted that
decision. On 6 December 2012 the PLO requested in writing a further
four-year extension of the application period of this provision. 
In accordance with Article 39 of Protocol
No 3, the provisions of the Protocol may be amended by decision of the Joint
Committee.
The text of the decision will amend the
existing provision laid down in Article 15(7). 
The parties have agreed to extend by six
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, to ensure consistency with similar
requests from other Mediterranean countries and to establish the period
covered by the Commission proposal following the PLO's initial request.
Pending formal adoption of the present
decision, it was agreed, in the Pan‑Euro‑Med working group,
that this decision will apply from 1 January 2010.
2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS
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.
3.           LEGAL ELEMENTS OF THE
PROPOSAL
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
2013/0348 (NLE)
Proposal for a
COUNCIL DECISION
on the position to be taken by the
European Union within the Joint Committee established by the Euro-Mediterranean
Interim Association Agreement on trade and cooperation between the European
Community, of the one part, and the Palestine Liberation Organisation
(PLO) for the benefit of the Palestinian Authority of the West Bank and the
Gaza Strip, of the other part, on the amendment of Article 15(7) of
Protocol No 3 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)       Protocol No 3 to the
Euro-Mediterranean Interim Association Agreement on trade and cooperation between
the European Community, of the one part, and the Palestine Liberation
Organisation (PLO) for the benefit of the Palestinian Authority of the
West Bank and the Gaza Strip, of the other part[3], ("the Agreement"),
as amended by Decision No 1/2009 of the EU‑PLO Joint Committee
of 24 June 2009[4],
concerns the definition of the concept of "originating products" and
methods of administrative cooperation.
(2)       Article 15 of Protocol No
3 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
partial exemption can be applied until 31 December 2009 subject to certain
conditions.
(3)       Further to a request from
the PLO, in 2010 the Commission proposed extending the application period of
Article 15 of Protocol No 3 to the Agreement until 31 December 2012[5]. However, the EU-PLO Joint
Committee never adopted that decision. 
(4)       The parties have agreed to
extend by six 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 and to establish the
period covered by the Commission proposal.
(5)       In accordance with Article
39 of Protocol No 3, the Joint Committee established by the Agreement should
decide to amend the Protocol accordingly.
(6)       The European Union should
therefore adopt the position set out in the attached draft decision within the
Joint Committee,
HAS ADOPTED THIS DECISION:
Article 1
The position to be adopted by the European
Union within the Joint Committee established by the Euro-Mediterranean Interim
Association Agreement on trade and cooperation between the European Community,
of the one part, and the Palestine Liberation Organisation (PLO) for
the benefit of the Palestinian Authority of the West Bank and the Gaza Strip,
of the other part, as regards the amendment of Article 15(7) of Protocol No 3
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 Joint Committee.
Article 2
The decision
of the Joint Committee shall be published in the Official Journal of the
European Union.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
ANNEX 
Draft
DECISION No […] OF THE EC-PLO JOINT COMMITTEE
of […]
amending
Article 15 (7) of Protocol No 3 to the Euro-Mediterranean Interim
Association Agreement on trade and cooperation between the European Community,
of the one part, and the Palestine Liberation Organisation (PLO) for the
benefit of the Palestinian Authority of the West Bank and the Gaza Strip,
of the other part,
concerning the definition of the concept of "originating products"
and methods of administrative cooperation
THE JOINT COMMITTEE,
Having regard to the Euro-Mediterranean
Interim Association Agreement on trade and cooperation between the
European Community, of the one part, and the
Palestine Liberation Organisation (PLO) for the benefit of the
Palestinian Authority of the West Bank and the Gaza Strip, of the other part,
and in particular Article 39 of Protocol No 3 thereto,
Whereas:
(1)                   
Article 15(7) of Protocol No 3 to the Euro-Mediterranean
Interim Association Agreement on trade and cooperation between the European Community,
of the one part, and the Palestine Liberation Organisation (PLO) for the
benefit of the Palestinian Authority of the West Bank and the Gaza Strip,
of the other part[6], ("the Agreement"),
as amended by Decision No 1/2009 of the EU‑PLO Joint Committee
of 24 June 2009[7],
allows drawback of, or partial exemption from, customs duties or charges with
equivalent effect, subject to certain conditions, until 31 December 2009.
(2)                   
Further to a request from the PLO, in 2010 the
Commission proposed extending the application period of Article 15 of
Protocol No 3 to the Agreement until 31 December 2012[8]. However, the EU-PLO Joint
Committee never adopted that decision.
(3)                   
The parties to the Agreement have agreed to
extend by six years the application period of Article 15(7) of Protocol
No 3 to the Agreement with effect from 1 January 2010 in order
to provide clarity, long-term economic predictability and legal certainty for
economic operators and to establish the period covered by the Commission
proposal.
(4)                   
Protocol No 3 to the Agreement should therefore
be amended accordingly.
(5)                   
Since Article 15(7) of Protocol No 3 to the
Agreement no longer applies as of 31 December 2009, this Decision should
apply from 1 January 2010,
HAS ADOPTED THE FOLLOWING DECISION:
Article 1
The final subparagraph of Article 15(7) of
Protocol No 3 to the Euro-Mediterranean Interim Association Agreement on
trade and cooperation between the European Community, of the one part, and the
Palestine Liberation Organisation (PLO) for the benefit of the Palestinian Authority
of the West Bank and the Gaza Strip, of the other part,
concerning the definition of the concept of "originating products"
and methods of administrative cooperation is replaced by the following text:
"The provisions of this paragraph
shall apply until 31 December 2015 and may be reviewed by common accord."
Article 2
This Decision shall enter into force on the
day of its adoption.
It shall apply from 1 January 2010.
Done at […]
                                                                       For
the Joint Committee
                                                                       The
President
                                                                       […]
[1]               OJ L 298,
13.11.2009, p.1.
[2]               COM(2010)
166, 21.4.2010.
[3]               OJ L 187,
16.7.1997, p. 3.
[4]               OJ L 298,
13.11.2009, p.1.
[5]               COM(2010)
166, 21.4.2010.
[6]               OJ L 187,
16.7.1997, p. 3.
[7]               OJ L
298, 13.11.2009, p.1.
[8]               COM(2010)
166, 21.4.2010.