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 Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part, as regards the amendment of Article 15(7) of Protocol No 4 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: Egypt, Union for the Mediterranean, administrative cooperation, agreement (EU), originating product, protocol to an agreement, revision of an agreement













EUR-Lex - 52013PC0724 - EN











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52013PC0724

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 Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part, as regards the amendment of Article 15(7) of Protocol No 4 to that Agreement, concerning the definition of the concept of 'originating products' and methods of administrative cooperation /* COM/2013/0724 final - 2013/0346 (NLE) */









EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
The prohibition of drawback of customs
duties is stipulated in Article 15 of Protocol No 4 annexed to the EC-Egypt
Association Agreement, as amended by Decision No 1/2010 of the EU-Egypt
Association Council of 3 August 2010[1].
Paragraph 7 of that article provides for a transitional period prior to the
full application of the prohibition of drawback of duties by Egypt and allows the country to grant duty drawback to its exporters or economic operators
during this period.
The transitional period expired on 31
December 2012. However, Article 15(7) provides for the possibility of
re-examining this provision by mutual agreement.
On 28 August 2012 Egypt requested in writing that the period in which the provision applies be extended.
In accordance with Article 39 of Protocol
No 4, the provisions of the Protocol may be amended by decision of the
Association Council.
The text of the decision will amend the
existing provision laid down in Article 15(7). 
The parties have agreed to extend by three
years the application period of Article 15(7), with effect from 1 January 2013
in order to provide clarity, long-term economic predictability and legal
certainty for economic operators.
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 2013.
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 2013.
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
2013/0346 (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
Communities and their Member States, of the one part, and the Arab Republic
of Egypt, of the other part, as regards the amendment of Article 15(7) of
Protocol No 4 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 4 to the
Euro-Mediterranean Agreement between the European Communities and their
Member States, of the one part, and the Arab Republic of Egypt, of the
other part[2],
hereafter 'the Agreement', as amended by Decision No 1/2010 of the EU-Egypt
Association Council of 3 August 2010[3],
concerns the definition of the concept of "originating products" and
methods of administrative cooperation.
(2)       Article 15 of Protocol No
4 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 2012 subject to certain
conditions.
(3)       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 2013.
(4)       In accordance with Article
39 of Protocol No 4, the Association Council established by the Agreement
should decide to amend the Protocol accordingly.
(5)       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 Communities
and their Member States, of the one part, and the
Arab Republic of Egypt, of the other part, as regards the
amendment of Article 15(7) of Protocol No 4 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
ANNEX 
Draft
DECISION No […] OF THE EU-EGYPT ASSOCIATION COUNCIL
of […]
amending
Article 15(7) of Protocol No 4 to the Euro-Mediterranean Agreement establishing
an association between the European Communities and their Member States,
of the one part, and the Arab Republic of Egypt, 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
Arab Republic of Egypt, of the other part, and in particular
Article 39 of Protocol No 4 thereto,
Whereas:
(1)                   
Article 15(7) of Protocol No 4 to the
Euro-Mediterranean Agreement establishing an association between the
European Communities and their Member States, of the one part,
and the Arab Republic of Egypt, of the other part[4], hereafter 'the Agreement',
as amended by Decision No 1/2010 of the EU‑Egypt Association Council
of 3 August 2010[5],
allows drawback of, or partial exemption from, customs duties or charges with
equivalent effect, subject to certain conditions, until 31 December 2012.
(2)                   
In order to provide clarity, long-term economic
predictability and legal certainty for economic operators, the Parties to the
Agreement have agreed to extend the application period of Article 15(7) of
Protocol 4 to the Agreement by three years, with effect from 1 January
2013.
(3)                   
Protocol No 4 to the Agreement should therefore
be amended accordingly.
(4)                   
Since Article 15(7) of Protocol 4 to the Agreement
no longer applies as of 31 December 2012, this Decision should apply from
1 January 2013,
HAS ADOPTED THE FOLLOWING DECISION:
Article 1
The last subparagraph of Article 15(7) of
Protocol No 4 to the Euro-Mediterranean Agreement establishing an
association between the European Communities and their Member States, of
the one part, and the Arab Republic of Egypt, of the other part, regarding 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 2013.
Done at […]
                                                                       For
the Association Council
                                                                       The
President
                                                                       […]
[1]               OJ L 249,
23.9.2010, p. 5.
[2]               OJ L 304,
30.9.2004, p. 39.
[3]               OJ L 249,
23.9.2010, p. 5.
[4]               OJ L
304, 30.9.2004, p. 39.
[5]               OJ L
249, 23.9.2010, p. 5.