Proposal for a COUNCIL DECISION on the position to be adopted on behalf of 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 replacement of Protocol 4 to that Agreement, concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation, by a new protocol which, as regards the rules of origin, refers to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin
Date: 2015-01-29
Institutions: European Commission
Subjects: Association Council (EU), Egypt, administrative cooperation, association agreement (EU), designation of origin, location of production, originating product, trading operation













EUR-Lex - 52015PC0025 - EN











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52015PC0025

Proposal for a COUNCIL DECISION on the position to be adopted on behalf of 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 replacement of Protocol 4 to that Agreement, concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation, by a new protocol which, as regards the rules of origin, refers to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin /* COM/2015/025 final - 2015/0017 (NLE) */









EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
The Regional Convention on
pan-Euro-Mediterranean preferential rules of origin[1]
('the Convention') lays down provisions on the origin of goods traded under
relevant Agreements concluded between the Contracting Parties. The EU and Egypt signed the Convention on 15 June 2011 and on 9 October 2013 respectively.
The EU and Egypt deposited their instrument
of acceptance with the depositary of the Convention on 26 March 2012 and 23 April
2014 respectively. As a consequence, in application of its Article 10(3), the
Convention entered into force in relation to the EU and Egypt on 1 May 2012 and on 1 June 2014 respectively.
Article 6 of the Convention provides that
each Contracting Party shall take appropriate measures to ensure that the
Convention is effectively applied. To that effect, 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[2],
should adopt a Decision replacing Protocol 4 concerning the definition of the
concept of 'originating products' and methods of administrative cooperation by
a new Protocol which, with regard to the rules of origin, refers to the
Convention. The position to be taken by the EU within the Association Council
should be established by the Council.
2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS
The EU Member States were informed on the draft
Council Decision in the Customs Code Committee's Origin Section of 13 May 2013.
The Contracting Parties to the Convention were last consulted at the meeting of
the Pan-Euro-Med working group of 22 and 23 October 2014.
No recourse to external expertise has been
necessary. Furthermore, 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 legal basis for the Council Decision 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 therefore not
apply.
Proposed instrument: Council Decision.
2015/0017 (NLE)
Proposal for a
COUNCIL DECISION
on the position to be adopted on behalf of
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 replacement of Protocol 4 to that Agreement,
concerning the definition of the concept of ‘originating products’ and methods
of administrative cooperation, by a new protocol which, as regards the rules of
origin, refers to the Regional Convention on pan-Euro-Mediterranean
preferential rules of origin
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
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[3] (‘the Agreement’), concerns the definition of the concept of
‘originating products’ and methods of administrative cooperation (‘Protocol 4’).
(2)       The Regional Convention on
pan-Euro-Mediterranean preferential rules of origin[4] (‘the Convention’) lays
down provisions on the origin of goods traded under relevant agreements
concluded between the Contracting Parties.
(3)       The Union and Egypt signed the Convention on 15 June 2011
and 9 October 2013 respectively.
(4)       The Union and Egypt deposited their instruments of
acceptance with the depositary of the Convention on 26 March 2012 and 23 April 2014 respectively. Consequently, in
application of Article 10(3) of the Convention, the Convention entered into
force in relation to the Union and Egypt on 1 May 2012 and on 1 June 2014 respectively.
(5)       Article 6 of the
Convention provides that each Contracting Party is to take appropriate measures
to ensure that the Convention is effectively applied. To that effect, the Association
Council established by the Agreement should adopt a decision replacing Protocol
4 by a new protocol which, with regard to the rules of origin, refers to the
Convention.
(6)       The position of the Union within the Association Council should therefore be based on the attached draft
decision,
HAS ADOPTED THIS DECISION: 
Article 1
The position to be adopted on behalf of 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 replacement of Protocol 4 to that Agreement,
concerning the definition of the concept of ‘originating products’ and methods
of administrative cooperation, by a new protocol which, as regards the rules of
origin, refers to the Regional Convention on pan-Euro-Mediterranean
preferential rules of origin, shall be based on the draft decision of the Association
Council attached to this Decision.
Minor changes to the draft decision of the Association
Council may be agreed to by the representatives of the Union in the Association
Council without further decision of the Council.
Article 2
The decision of the Association Council shall
be published in the Official Journal of the European Union.
Article 3
This Decision shall enter into force on the
date of its adoption.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ L 54, 26.2.2013, p. 4.
[2]               OJ L 304, 30.9.2004, p. 39.
[3]               OJ L 304, 30.9.2004, p. 39.
[4]               OJ L 54, 26.2.2013, p. 4.
Draft
DECISION No … OF THE EU-EGYPT ASSOCIATION COUNCIL
of 
replacing Protocol 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,
concerning the definition of the concept of 'originating products' and methods
of administrative cooperation
The EU-Egypt ASSOCIATION COUNCIL,
Having regard 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[1],
and in particular Article 27 thereof,
Having regard to Protocol 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, concerning the definition of the concept of 'originating products'
and methods of administrative cooperation,
Whereas:
(1)                   
Article 27 of 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 ('the
Agreement') refers to Protocol 4 to the Agreement ('Protocol 4') which lays down
the rules of origin and provides for cumulation of origin between the European
Union, Egypt and other Contracting Parties to the Convention.
(2)                   
Article 39 of Protocol 4 provides that the Association
Council provided for in Article 74 of the Agreement may decide to amend the
provisions of this protocol.
(3)                   
The Regional Convention on
pan-Euro-Mediterranean preferential rules of origin[2] ('the Convention') aims
to replace the protocols on rules of origin currently in force among the
countries of the pan-Euro-Mediterranean area with a single legal act.
(4)                   
The European Union and Egypt signed the
Convention on 15 June 2011 and 9 October 2013
respectively.
(5)                   
The European Union and Egypt deposited their
instruments of acceptance with the depositary of the Convention on 26 March
2012 and 23 April 2014 respectively.
Consequently, in application of Article 10(3) of the Convention, the Convention
entered into force in relation to the European Union and Egypt on 1 May 2012 and on
1 June 2014 respectively.
(6)                   
Protocol 4 should therefore be replaced by a new
protocol making reference to the Convention.
HAS ADOPTED THIS DECISION:
Article 1
Protocol 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, concerning the definition of the concept of 'originating products'
and methods of administrative cooperation shall be replaced by the text set out
in the Annex to this Decision.
Article 2
This Decision shall enter into force on the
date of its adoption.
It shall apply from …
Done at
                                                                       For
the Association Council
                                                                       The
President
Annex
Protocol
4
concerning
the definition of the concept of 'originating products' and methods of
administrative cooperation
Article 1
Applicable
rules of origin
1.         For the purpose of implementing
this Agreement, Appendix I and the relevant provisions of Appendix II to the
Regional Convention on pan-Euro-Mediterranean preferential rules of origin[3] ('the Convention')
shall apply.
2.         All references to the 'relevant
agreement' in Appendix I and in the relevant provisions of Appendix II to the
Regional Convention on pan-Euro-Mediterranean preferential rules of origin
shall be construed so as to mean this Agreement.
Article 2
Dispute
settlement
1.         Where disputes arise in relation
to the verification procedures of Article 32 of Appendix I to the Convention that
cannot be settled between the customs authorities requesting the verification
and the customs authorities responsible for carrying out that verification,
they shall be submitted to the Association Council.
2.         In all cases the settlement of
disputes between the importer and the customs authorities of the importing
country shall take place under the legislation of that country.
Article 3
Amendments
to the Protocol
The Association Council may decide to amend
the provisions of this Protocol.
Article 4
Withdrawal
from the Convention
1.         Should either the European Union
or Egypt give notice in writing to the depositary of the Convention of their
intention to withdraw from the Convention according to Article 9 thereof, the European
Union and Egypt shall immediately enter into negotiations on rules of origin for the
purpose of implementing this Agreement.
2.         Until the entry into force of
such newly negotiated rules of origin, the rules of origin contained in
Appendix I and, where appropriate, the relevant provisions of Appendix II to
the Convention, applicable at the moment of withdrawal, shall continue to apply
to this Agreement. However, as of the moment of withdrawal, the rules of origin
contained in Appendix I and, where appropriate, the relevant provisions of
Appendix II to the Convention shall be construed so as to allow bilateral
cumulation between the European Union and Egypt only.
[1]               OJ L 304, 30.9.2004, p. 39.
[2]               OJ L 54, 26.2.2013, p. 4.
[3]               OJ L 54, 26.2.2013, p. 4.