Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on temporary trade liberalisation supplementing trade concessions applicable to Ukrainian products under the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part
Date: 2023-02-23
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: Ukraine, anti-dumping duty, association agreement (EU), import (EU), import price, liberalisation of trade, originating product, tariff exemption, tariff quota

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.2.2023  COM(2023) 106 final 2023/0051 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on temporary trade liberalisation supplementing trade concessions applicable to Ukrainian products under the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Russia’s  unprovoked  and  unjustified  military  aggression  against  Ukraine  since  24  February 
2022  has  had  a  profound  negative  impact  on  Ukraine’s  ability  to  trade  with  the  rest  of  the 
world,  because of the  toll imposed on human lives, the need to  focus on the defence of the 
territory,  vast  populations  being  displaced,  the  destruction  of  production  capacity  and  the 
unavailability of a significant share of transport means due to the restriction of the access to 
the Black Sea. In this difficult context, in its conclusions of 21 October 2022 and 9 February 
2023,  the  European  Council  underlined  that  it  will  continue  to  provide  strong  political  and 
economic support to Ukraine. Furthermore, Ukraine has asked the Union to facilitate as much 
as possible the conditions to enable the country to maintain its trade position with the rest of 
the world and further deepen its trade relations with the Union. Measures to this end include 
facilitating overland logistics through the Agreement between the Union and Ukraine on the 
carriage of freight by road1 and the EU-Ukraine Solidarity Lanes and increasing the degree of 
market  liberalisation  through  Regulation  (EU)  2022/870  of  the  European  Parliament  and  of 
the Council of 30 May 2022 on temporary trade-liberalisation measures supplementing trade 
concessions  applicable  to  Ukrainian  products  under  the  Association  Agreement.  This 
Regulation entered into  force on 4 June 2022 and will be in  force until  5 June 2023. These 
measures have proven to add flexibility and certainty for Ukrainian producers.  

In  view  of  Russia’s  continuing  military  agression  against  Ukraine,  the  resulting  need  to 
continue  to  support  Ukraine  economically,  and  considering  that  Ukraine  was  granted  EU 
candidate  status in  June  2022,  the  Commission  is  proposing  a  Regulation  of  the  European 
Parliament  and  of  the  Council  renewing  these  trade-liberalisation  measures,  which  should 
apply  for  a  period  of  one  year  as  of  the  date  the  current  measures  expire  (i.e.  as  of  6  June 
2023):  

– 

1 

2 

Temporary  suspension  of  all  outstanding  customs  duties  under  Title  IV  of  the 
Association Agreement between the EU and Ukraine (hereinafter referred to as ‘the 
Association  Agreement’)2  establishing  a  deep  and  comprehensive  free  trade  area 
(DCFTA). This concerns two categories of products:  

 

 

fruits and vegetables subject to the entry-price system; 

agricultural  products  and  processed  agricultural  products  subject  to  tariff-rate 
quotas. 

See  Council  Decision  (EU)  2022/1158  of  27 June  2022  on  the  signing,  on  behalf  of  the  Union,  and 
provisional application of the Agreement between the European Union and Ukraine on the carriage of 
freight by road (OJ L 179, 6.7.2022, p. 1) and Council Decision (EU) 2022/2435 of 5 December 2022 
on the conclusion, on behalf of the European Union, of the Agreement between the European Union and 
Ukraine on the carriage of freight by road (OJ L 319, 13.12.2022, p. 5). 
The  Association  Agreement  between  the  European  Union  and  the  European  Atomic  Energy 
Community  and  their  Member  States,  of  the  one  part,  and  Ukraine,  of  the  other  part  (OJ  L 161, 
29.5.2014,  p. 3)  was  signed  by  the  Parties  in  two  parts,  in  March  and  June  2014.  The  Association 
Agreement  has  been  provisionally  applied  in  some  parts  since  1  November  2014.  The  Deep  and 
Comprehensive Free Trade Area (DCFTA) has been provisionally applied since 1 January 2016 and is 
fully in force since 1 September 2017 following ratification by all EU Member States. 

EN 

1 

  EN 

                                                 
– 

– 

Temporary non-collection of anti-dumping duties on imports originating in Ukraine 
as of the date of entry into force of this Regulation; and 

Temporary  suspension  of  the  application  of  the  common  rules  for  imports 
(safeguards)3 with respect of imports originating in Ukraine. 

Regulation (EU) 2022/870 also includes a temporary suspension of the outstanding tariffs on 
industrial products subject to duty phase out by the end of 2022 in accordance with Annex I-A 
to the Association Agreement. This proposal for a renewal of these measures does not include 
these products since they in any case are subject to zero duties since 1 January 2023. 

These  temporary  and  exceptional  measures  will  contribute  to  continously  supporting  and 
fostering the existing trade flows from Ukraine to the Union. This is in line with one of the 
main objectives of the Association Agreement, which is to establish conditions for enhanced 
economic and trade relations leading towards Ukraine's gradual integration in the EU Internal 
Market.  

The trade-liberalising measures provided for under the present proposal for a Regulation are 
taken  in  observance  of  the  commitment  in  Article  2  of  the  Association  Agreement  which 
enshrines as an essential element of the Agreement the promotion of respect for the principles 
of sovereignty and territorial integrity, inviolability of borders and independence. In the same 
vein,  the  trade-liberalising  measures  themselves  would  be  conditional  upon  respect  for  the 
same  basic  principles  set  out  in  Article  2,  including  those  providing  that  the  respect  for 
democratic principles, human rights and fundamental freedoms and respect for the principle 
of the rule of law constitute essential elements of that Agreement.  

Furthermore,  the  trade-liberalising  measures  contained  in  this  proposal  aim  at  ensuring,  in 
accordance  with  Article  207(1)  TFEU,  that  the  Union’s  common  commercial  policy  is 
conducted in the context of the principles and objectives of the Union’s external action set out 
in Article 21 TEU.  

According to the proposal, expedited safeguard procedures will apply on the basis of regular 
monitoring allowing for potential reintroduction of customs duties.  

• 

Consistency with existing policy provisions in the policy area 

These  trade-liberalising  measures  would  be  consistent  with  the  implementation  of  the 
Association  Agreement  and  in  particular  with  the  Title  IV  establishing  a  DCFTA,  which 
provides that Parties shall progressively establish a free trade area over a transitional period of 
a maximum of 10 years starting from the entry into force of that Agreement. 

In  addition,  Regulation  (EU)  2022/870  has  demonstrated  the  EU’s  strong  committment  to 
economically  support  Ukraine  by  means  of  international  trade  in  the  context  of  Russia’s 
agression  against  Ukraine.  The  renewal  of  the  trade-liberalisation  measures  is  a  logical 
extension  of  this  policy  as  the  military  agression  as  well  as  Ukraine’s  economic  difficulties 
continue. 

Finally, Ukraine has requested in 2021 the activation of the review under Article 29(4) of the 
Association  Agreement  with  the  purpose  of  considering  accelerating  and  broadening  the 

3 

Regulation  (EU)  2015/478  of  the  European  Parliament  and  of  the  Council  of  11  March  2015  on 
common rules for imports (OJ L 83, 27.3.2015, p. 16). 

EN 

2 

  EN 

                                                 
scope of the elimination of customs duties between Ukraine and the Union. Negotiations are 
currently paused.  

Nevertheless, the EU-Ukraine summit held on 3 February 2023 endorsed the revised Priority 
Action  Plan  for  enhanced  implementation  of  the  DCFTA  for  2023-2024.  This  includes  for 
example  the  commitment  of  Ukraine  to  put  in  place,  during  the  first  quarter  of  2023,  the 
legislation  on  hygiene  and  quality  of  poultry  meat,  which  will  allow  for  the  introduction  of 
agreed amendments to the export certificate for certain poultry meat from the EU to Ukraine. 

• 

Consistency with other Union policies 

The  European  Union  has  strongly  condemned  Russia’s  aggression  against  Ukraine  and  has 
undertaken unprecedented steps to support Ukraine in this exceptional context, ranging from 
financial  assistance,  including  macro-financial  assistance  for  emergency  measures  and 
reconstruction,  over  the  delivery  of  military  equipment  and  the  adoption  of  extensive 
sanctions  against  Russia  and  Belarus,  to  the  intensification  of  cooperation  under  the 
Association Agreement.  In addition, Ukraine was granted EU candidate status in June 2022. 
The  proposed  Regulation  would  therefore  comply  with  and  follow  from  the  Union’s 
obligation  under  Article  21(3)  TEU  to  ensure  consistency  between  the  different  areas  of  its 
external  action,  as  well  as  with  Article  207(1)  TFEU  which  provides  that  the  common 
commercial  policy  is  to  be  conducted  in  the  context  of  the  principles  and  objectives  of  the 
Union’s external actions. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  legal  basis  for  the  proposal  is  Article  207(2)  of  the  Treaty  on  the  Functioning  of  the 
European Union. 

• 

Subsidiarity (for non-exclusive competence)  

The common commercial policy, in accordance with Article 3(1)(e) of the TFEU, is defined 
as an exclusive Union competence. Therefore, the subsidiarity principle does not apply. 

• 

Proportionality 

This  proposal  is  necessary  in  order  to  implement  the  common  commercial  policy  and  to 
achieve the objective of supporting Ukraine in its current difficulties economically, also in the 
area of trade with the Union. 

• 

Choice of the instrument 

This  proposal  is  in  accordance  with  Article  207(2)  TFEU,  which  envisages  common 
commercial policy measures.  

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

Not applicable. 

• 

Stakeholder consultations 

Not applicable. 

EN 

3 

  EN 

• 

Collection and use of expertise 

Not applicable. 

• 

Impact assessment 

In  order  to  ensure  a  continuation  of  the  trade-liberalisation  measures  for  Ukraine  after  the 
expiry of Regulation (EU) 2022/870 on 5 June 2023, it is important for the Regulation to enter 
into force on 6 June 2023. Given this necessity and the resulting urgency of this proposal, no 
impact  assessment  was  carried  out.  However,  the  trade  and  trade-related  provisions  of  the 
Association Agreement have been subject to a sustainability impact assessment commissioned 
by DG Trade in 2007 which fed into the DCFTA negotiation process.  That study confirmed 
that  implementation  of  trade  and  trade-related  provisions  would  have  a  positive  economic 
impact for the EU as well as for Ukraine.  

In addition, import flows under the Regulation (EU) 2022/870 are regularly being monitored 
and  reported.  Based  on  the  results  of  this  monitoring,  it  is  proposed  to  make  the  safeguard 
provisions more operational, if the imports cause adverse effects on the EU market. 

• 

Regulatory fitness and simplification 

The measure does not increase the regulatory burden of companies.  

• 

Fundamental rights 

These  measures  respect  the  same  basic  principles  as  those  enshrined  in  the  Association 
Agreement  between  the  EU  and  Ukraine.  In  particular,  Article  2  of  the  Association 
Agreement with Ukraine provides that the respect for democratic principles, human rights and 
fundamental  freedoms  and  respect  for  the  principle  of  the  rule  of  law,  constitute  essential 
elements of that Agreement.  

The  trade-liberalising  measures  would  also  be  in  accordance  with  the  European  Charter  on 
Fundamental Rights. 

4. 

BUDGETARY IMPLICATIONS 

Based on an estimation according to the level of import volumes of products covered by the 
proposed  Regulation  in  excess  of  the  annual  duty-free  quota  from  Ukraine  in  2021,  the 
European  Union  would  see  a  loss  of  EUR  33.4  million  of  customs  revenue  annually.  In 
addition,  following the termination of the anti-dumping measures on imports of certain  hot-
rolled  flat  products  of  iron,  non-alloy  or  other  alloy  steel  originating  in  Ukraine  [include 
footnote  when  published],  the  sole  trade  defence  measure  left  with  regard  to  Ukraine  is  an 
anti-dumping duty on imports of certain seamless pipes and tubes of iron or steel, which have 
not been collected pursuant to Article 1(2) of Regulation (EU) 2022/870. This duty will expire 
on  3  October  2023  if  the  Commission  does  not  receive  a  request  containing  sufficient 
evidence that the expiry of the measures would likely result in a continuation or recurrence of 
dumping and injury. In case the measures on certain seamless pipes and tubes of iron or steel 
are extended after this date, based on the level of imports from Ukraine in 2020 and 2021 the 
estimated maximum loss of anti-dumping duties would be less than EUR 15 million annually. 

EN 

4 

  EN 

The total estimated amount is thus EUR 48.4 million4 and therefore the impact on the EU’s 
own resources will be very limited. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

On-line  reporting  on  the  evolution  of  bilateral  EU-Ukraine  trade  is  available  via  dedicated 
websites of the European Commission.  Regular monitoring of the impact of the Regulation, 
taking  into  account  the  information  on  exports,  imports,  prices  on  the  Union  market  and 
Union production of the products subject to the trade-liberalisation measures shall be made on 
a bimonthly basis. 

• 

Explanatory documents (for directives) 

Not applicable. 

• 

Detailed explanation of the specific provisions of the proposal 

In view of the emergency situation in Ukraine, the measure aims at increasing the trade flows 
concerning all imports from Ukraine by suspending all outstanding tariffs and import duties 
applied to Ukrainian products. The trade-liberalising measures would be granted in the form 
of full suspension of import duties on all products. 

4 

The estimation in excess of the tariff rate quotas amounts to EUR 44.5 million and EUR  20 million for 
anti-dumping  duties.  The  loss  of  traditional  own  resources  revenue  from  this  Regulation  is  thus 
estimated at EUR 64.5 million (gross amount, including collection costs) x 0,75 = EUR 48.4 million for 
the period in question.  

EN 

5 

  EN 

                                                 
2023/0051 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on temporary trade liberalisation supplementing trade concessions applicable to 
Ukrainian products under the Association Agreement between the European Union and 
the European Atomic Energy Community and their Member States, of the one part, and 
Ukraine, of the other part 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 207(2) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Acting in accordance with the ordinary legislative procedure1, 

Whereas: 

(1) 

(2) 

1 

2 
3 

4 

The  Association  Agreement  between  the  European  Union  and  the  European  Atomic 
Energy Community and their Member States, of the one part, and Ukraine, of the other 
part2  (‘the  Association  Agreement’)  constitutes  the  basis  of  the  relationship  between 
the Union and Ukraine. In accordance with Council Decision 2014/668/EU3, Title IV 
of  the  Association  Agreement,  which  relates  to  trade  and  trade-related  matters,  has 
been  applied  provisionally  since  1  January  20164,  and  entered  into  force  on  1 
September 2017, following ratification by all Member States.  

The  Association  Agreement  expresses  the  desire  of  the  Parties  to  the  Association 
Agreement  (‘the  Parties’)  to  strengthen  and  widen  relations  in  an  ambitious  and 
innovative way, to facilitate and achieve gradual economic integration, and to do so in 
compliance  with  the  rights  and  obligations  arising  out  of  the  World  Trade 
Organization membership of the Parties. 

Position of the European Parliament of (…) (not yet published in the Official Journal) and decision of 
the Council (…). 
OJ L 161, 29.5.2014, p. 3. 
Council Decision 2014/668/EU of 23 June 2014 on the signing, on behalf of the European Union, and 
provisional application of the  Association  Agreement between the European Union and  the European 
Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part, as 
regards Title III (with the exception of the provisions relating to the treatment of third-country nationals 
legally employed as workers in the territory of the other Party) and Titles IV, V, VI and VII thereof, as 
well as the related Annexes and Protocols (OJ L 278, 20.9.2014, p. 1). 
Council Decision 2014/668/EU of 23 June 2014 on the signing, on behalf of the European Union, and 
provisional application of the  Association  Agreement between the European Union and  the European 
Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part, as 
regards Title III (with the exception of the provisions relating to the treatment of third-country nationals 
legally employed as workers in the territory of the other Party) and Titles IV, V, VI and VII thereof, as 
well as the related Annexes and Protocols (OJ L 278, 20.9.2014, p. 1). 

EN 

6 

  EN 

                                                 
(3) 

(4) 

(5) 

(6) 

(7) 

Article 25 of the Association Agreement provides for the progressive establishment of 
a free trade area between the Parties in accordance with Article XXIV of the General 
Agreement on Tariffs and Trade 1994 (‘GATT 1994’). To that end, Article 29 of the 
Association Agreement provides for the progressive elimination of customs duties in 
accordance with the Schedules included therein and for the possibility of accelerating 
and  broadening  the  scope  of  such  elimination.  Article 48  of  the  Association 
Agreement provides that the public interest  is  to  be considered before applying anti-
dumping measures between the Parties. 

Russia’s  unprovoked  and  unjustified  war  of  aggression  against  Ukraine  since 
24 February 2022 has had a profoundly negative  impact  on the ability  of  Ukraine to 
trade with the rest of the world, both because of the destruction of production capacity 
and the unavailability of a significant proportion of means of transport, e.g. due to the 
restriction  and  uncertainty  of  access  to  the  Black  Sea.  Under  such  exceptional 
circumstances  and  to  mitigate  the  negative  economic  impact  of  Russia’s  war  of 
aggression  against  Ukraine,  it  is  necessary  to  accelerate  the  development  of  closer 
economic  relations  between  the  Union  and  Ukraine  in  order  to  provide  continued 
support  to  the  Ukrainian  authorities  and  population.  It  is  therefore  necessary  and 
appropriate to continue stimulating trade flows and granting concessions in the form of 
trade-liberalisation  measures  for  all  products,  in  line  with  the  acceleration  of  the 
elimination of customs duties on trade between the Union and Ukraine 

In accordance with Article 21(3) of the Treaty on European Union (TEU), the Union is 
to  ensure  consistency  between  the  different  areas  of  its  external  action.  Pursuant  to 
Article  207(1)  of  the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU),  the 
common  commercial  policy  is  to  be  conducted  in  the  context  of  the  principles  and 
objectives of the Union’s external action.  
Regulation (EU) 2022/870 of the European Parliament and of the Council5 will expire 
on 5 June 2023. 

The  trade-liberalisation  measures  established  by  this  Regulation  should  take  the 
following form: (i) the suspension of the application of the entry price system to fruit 
and vegetables; (ii) the suspension of tariff-rate quotas and import duties; (iii) by way 
of derogation from Article 14(1), first subparagraph, of Regulation (EU) 2016/1036 of 
the  European  Parliament  and  of  the  Council6,  anti-dumping  duties  on  imports 
originating  in  Ukraine  made  during  the  application  of  this  Regulation  should  not  be 
collected at any point in time, including after the expiry of this Regulation; and (iv) the 
temporary suspension of the application of Regulation (EU) 2015/478 of the European 
Parliament  and  of  the  Council7.  Through  those  measures,  the  Union  will,  in  effect, 
temporarily  provide  appropriate  economic  and  financial  support  to  the  benefit  of 
Ukraine and the economic operators that are affected. 

5 

6 

7 

Regulation  (EU)  2022/870  of  the  European  Parliament  and  of  the  Council  of  30 May  2022  on 
temporary  trade-liberalisation  measures  supplementing  trade  concessions  applicable  to  Ukrainian 
products  under  under  the  Association  Agreement  between  the  European  Union  and  the  European 
Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part (OJ 
L 152, 3.6.2022, p. 103). 
Regulation  (EU)  2016/1036  of  the  European  Parliament  and  of  the  Council  of  8 June  2016  on 
protection  against  dumped  imports  from  countries  not  members  of  the  European  Union  (OJ  L 176, 
30.6.2016, p. 21). 
Regulation  (EU)  2015/478  of  the  European  Parliament  and  of  the  Council  of  11 March  2015  on 
common rules for imports (OJ L 83, 27.3.2015, p. 16). 

EN 

7 

  EN 

                                                 
(8) 

(9) 

In order to prevent fraud, the preferential arrangements established by this Regulation 
should  be  conditional  upon  Ukraine  complying  with  all  the  relevant  conditions  for 
obtaining  benefits  under  the  Association  Agreement,  including  the  rules  of  origin  of 
products  concerned  and  the  procedures  related  thereto,  as  well  as  Ukraine’s 
involvement in close administrative cooperation with the Union, as provided for by the 
Association Agreement. 

Ukraine  should  abstain  from  introducing  new  duties  or  charges  having  equivalent 
effect  and  new  quantitative  restrictions  or  measures  having  equivalent  effect,  from 
increasing  existing  levels  of  duties  or  charges  or  from  introducing  any  other 
restrictions on trade with the Union, unless clearly justified in the context of Russia’s 
military  agression.  In  the  event  that  Ukraine  fails  to  comply  with  any  of  those 
conditions,  the Commission  should be empowered to  suspend temporarily all or part 
of the preferential arrangements established by this Regulation.  

(10)  Article 2 of the Association Agreement provides, among other things, that respect for 
democratic  principles,  human  rights  and  fundamental  freedoms,  the  promotion  of 
respect  for  the  principles  of  sovereignty  and  territorial  integrity,  inviolability  of 
borders, and independence as well as countering the proliferation of weapons of mass 
destruction, related materials and their means of delivery constitute essential elements 
of  the  Association  Agreement.  Furthermore,  Article 3  of  the  Association  Agreement 
states  that  the  rule  of  law,  good  governance,  the  fight  against  corruption,  the  fight 
against  the  different  forms  of  trans-national  organised  crime  and  terrorism,  the 
promotion  of  sustainable  development  and  effective  multilateralism  are  central  to 
enhancing  the  relationship  between  the  Parties.  It  is  appropriate  to  introduce  the 
possibility of temporarily suspending the preferential arrangements established by this 
Regulation  if  Ukraine  fails  to  respect  the  general  principles  of  the  Association 
Agreement, as is the case under other association agreements concluded by the Union. 

(11) 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation, 
implementing powers should be conferred on the Commission to temporarily suspend 
the  preferential  arrangements  provided  in  Article  1(1),  points  (a)  and  (b)  if  the 
conditions  for  entitlement  to  the  preferential  arrangements  are  no  longer  complied 
with.  These  powers  should  also  be  conferred  to  introduce  safeguards  in  cases  where 
Union  markets  of  like  or  directly  competing  products  are  adversely  affected  by 
imports under this Regulation. Those powers should be exercised in accordance with 
Regulation (EU) No 182/2011 of the European Parliament and of the Council8. 

(12)  Subject  to  an  assessment  of  three  months  by  the  Commission  based  on  regular 
monitoring of the impact of this Regulation and either following a duly substantiated 
request from a Member State or on the Commission’s own initiative, it is necessary to 
provide  for  the  possibility  to  reintroduce  the  customs  duties  otherwise  applicable 
under the Association Agreement for imports of any products falling under the scope 
of this Regulation which are adversely affecting  the Union market of like or directly 
competing products. 

(13)  The  Commission’s  annual  report  on 

the  Deep  and 
Comprehensive  Free  Trade  Area,  which  is  an  integral  part  of  the  Association 

implementation  of 

the 

8 

Regulation  (EU)  No 182/2011  of  the  European  Parliament  and  of  the  Council  of  16 February  2011 
laying down the rules and general principles concerning mechanisms for control  by Member States of 
the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13). 

EN 

8 

  EN 

                                                 
Agreement,  should  include  a  detailed  assessment  of  the  implementation  of  the  trade 
liberalisation measures established by this Regulation. 

(14) 

In view of the urgency of the matter related to the situation caused by Russia’s war of 
aggression against Ukraine, it is considered to be appropriate to invoke the exception 
to  the  eight-week  period  provided  for  in  Article  4  of  Protocol  No  1  on  the  role  of 
national Parliaments in the European Union, annexed to the TEU, to the TFEU and to 
the Treaty establishing the European Atomic Energy Community. 

(15) 

In  light  of  the  urgency  of  the  economic  situation  in  Ukraine  and  the  expiry  of 
Regulation  (EU) 2022/870 of the European Parliament and of the Council on 5 June 
2023, this Regulation should enter into force on 6 June 2023, 

HAVE ADOPTED THIS REGULATION: 

Article 1 

Trade-liberalisation measures 

1. 

The following preferential arrangements are introduced: 

(a) 

(b) 

the application of the entry price system shall be suspended for those products 
to which it applies as specified in Annex I-A to the Association Agreement. No 
customs duties shall apply to imports of those products; 

all  the  tariff-rate  quotas  established  under  Annex  I-A  to  the  Association 
Agreement shall be suspended and the products covered by those quotas shall 
be admitted for importation into the Union from Ukraine without any customs 
duties. 

2. 

3. 

By  way  of  derogation  from  Article 14(1),  first  subparagraph,  of  Regulation  (EU) 
2016/1036,  anti-dumping duties on imports originating in  Ukraine made during the 
application  of  this  Regulation  shall  not  be  collected  at  any  point  in  time, including 
after the expiry of this Regulation. 

The  application  of  Regulation  (EU)  2015/478  shall  be  temporarily  suspended  with 
regard to imports originating in Ukraine.  

Conditions for entitlement to the preferential arrangements 

Article 2 

The preferential arrangements provided in Article 1(1), points (a) and (b), shall be subject to 
the following conditions: 

(a) 

compliance  with  the  rules  of  origin  of  products  and  the  procedures  related 
thereto as provided for in the Association Agreement;  

(b)  Ukraine’s abstention from introducing new duties or charges having equivalent 
effect  and  new  quantitative  restrictions  or  measures  having  equivalent  effect 
for imports originating in the Union, from increasing existing levels of duties 
or charges or from introducing any other restrictions on trade with the Union, 
including  discriminatory  internal  administrative  measures,  unless  clearly 
justified in the war context; and 

(c)  Ukraine's  respect  for  democratic  principles,  human  rights  and  fundamental 
freedoms and respect for the principle of the rule of law as well as continued 

EN 

9 

  EN 

1. 

2. 

1. 

2. 

and  sustained  efforts  with  regard  to  the  fight  against  corruption,  and  illegal 
activities provided for in Articles 2, 3 and 22 of the Association Agreement. 

Article 3 

Temporary suspension 

Where the Commission finds that there is sufficient evidence of Ukraine’s failure to 
comply with the conditions set out in Article 2, it may, by means of an implementing 
act,  suspend  in  whole  or  in  part  the  preferential  arrangements  provided  for  in 
Article 1(1), points (a) and (b). That implementing act shall be adopted in accordance 
with the examination procedure referred to in Article 5(3).  

Where  a  Member  State  requests  that  the  Commission  suspends  any  of  the 
preferential  arrangements  on  the  basis  of  Ukraine’s  failure  to  comply  with  the 
conditions  set  out  in  Article 2,  point  (b),  the  Commission  shall  provide  a  reasoned 
opinion within four months of the request on whether the claim of Ukraine’s failure 
to  comply  is  substantiated.  If  the  Commission  concludes  that  the  claim  is 
substantiated, it shall initiate the procedure referred to in paragraph 1 of this Article. 

Article 4 

Expedited safeguard 

Where  a  product  originating  in  Ukraine  is  imported  under  conditions  which 
adversely  affect  the  Union  market  of  like  or  directly  competing  products,  the 
Commission  may  reintroduce  the  customs  duties  otherwise  applicable  under  the 
Association  Agreement  on  imports  of  that  product  at  any  time  by  adopting  an 
implementing  act.  That  implementing  act  shall  be  adopted  in  accordance  with  the 
examination procedure referred to in Article 5(3).  

The  Commission  shall  regularly  monitor  the  impact  of  this  Regulation,  taking  into 
account the information on exports, imports, prices on the Union market and Union 
production of the products subject to the trade-liberalisation measures under Article 
1(1), point (b).  

The Commission shall inform the Member States every two months of the results of 
the regular monitoring, starting from the entry into force of this Regulation. 

3. 

The Commission shall launch an assessment of the situation of the Union market for 
the like or directly competing products with a view to reintroduce the customs duties.  

That assesment shall be concluded within a period of no longer than three months:  

(a) 

following  a  duly  substantiated  request  from  a  Member  State  including 
sufficient  prima  facie  evidence  reasonably  available  to  that  Member  State 
pursuant  to  paragraph  5  of  imports  adversely  affecting  the  market  that  is 
referred to in paragraph 1, or 

(b)  on its own initiative, after it has become apparent to the Commission that there 
is sufficient prima facie evidence of imports adversely affecting the market that 
is referred to in paragraph 1.  

4. 

Where,  as  a  result  of  the  assessment,  the  Commission  considers  that  the  Union 
market  of  like  or  directly  competing  products  has  been  adversely  affected  and 
intends  to  reintroduce  the  customs  duties,  it  shall  publish  a  notice  in  the  Official 
Journal of the European Union announcing the reintroduction of the customs duties 

EN 

10 

  EN 

otherwise applicable pursuant to paragraph 1. The notice shall provide a summary of 
the  main  results  of  the  expedited  assessment  and  specify  the  period  within  which 
interested parties may submit their views in writing. Such period shall not exceed 10 
days from the date of publication of the notice.  

In its assessment, whether measures should be applied  pursuant to paragraph 1, the 
Commission shall take into consideration all relevant market developments including 
the impact of the imports concerned on the situation of the Union market of like or 
directly competing products. That assessment shall include factors such as:  

(a) 

(b) 

the  rate  and  amount  of  the  increase  in  imports  from  Ukraine  of  the  product 
concerned in absolute and relative terms,  

the effect of the imports concerned on EU production and prices, whilst taking 
into consideration the development of imports from other sources.  

This  list  is  not  exhaustive  and  other  relevant  factors  may  also  be  taken  into 
consideration. 

The  customs  duties  otherwise  applicable  under  the  Association  Agreement  may  be 
reintroduced for as long as necessary to counteract the adverse effects on the Union 
market of like or directly competing products.  

Where  exceptional  circumstances  require  immediate  action,  the  Commission  may, 
without  following  the  procedure  under  paragraph  4  and  after  informing  the 
Committee  on  Safeguards  established  by  Article  3(1)  of  Regulation  (EU)  No 
2015/478 take any preventive measure, which is necessary. 

Article 5 

Committee procedure 

The  Commission  shall  be  assisted  by  the  Customs  Code  Committee  established  by 
Article 285(1)  of  Regulation  (EU)  No 952/2013  of  the  European  Parliament  and  of 
the Council9 with regard to Article 3(1) of this Regulation. That Committee shall be a 
committee within the meaning of Regulation (EU) No 182/2011. 

The  Commission  shall  be  assisted  by  the  Committee  on  Safeguards  established  by 
Article  3(1)  of  Regulation  (EU)  No  2015/478  with  regard  to  Article  4(1)  of  this 
Regulation. That Committee shall be a committee within the meaning of Regulation 
(EU) No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU) 
No 182/2011 shall apply. 

5. 

6. 

7. 

1. 

2. 

3. 

Article 6 

Assessment of the implementation of the trade-liberalising measures 

The Commission’s annual report on the implementation of the Deep and Comprehensive Free 
Trade  Area  shall  include  a  detailed  assessment  of  the  implementation  of  the  trade-
liberalisation  measures  provided  for  in  this  Regulation  and  shall  include,  insofar  as 
appropriate,  an  assessment  of  the  social  impact  of  those  measures  in  Ukraine  and  in  the 

9 

Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down 
the Union Customs Code (OJ L 269, 10.10.2013, p. 1). 

EN 

11 

  EN 

                                                 
Union.  Information  on  imports  of  products  under  Article 1(1),  point  (b),  shall  be  made 
available monthly via the website of the Commission. 

Article 7 

Entry into force and application 

This Regulation shall enter into force on 6 June 2023. 

This Regulation shall apply until 5 June 2024.  

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

12 

  EN 

LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS HAVING A 
BUDGETARY IMPACT EXCLUSIVELY LIMITED TO THE REVENUE SIDE 

1. 

NAME OF THE PROPOSAL: 

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  on 
temporary  trade  liberalisation  supplementing  trade  concessions  applicable  to 
Ukrainian  products  under  the  Association  Agreement  between  the  European  Union 
and  the  European  Atomic  Energy  Community  and  their  Member  States,  of  the  one 
part, and Ukraine, of the other part. 

2. 

BUDGET LINES: 

Chapter 12, Article 120 

Amount budgeted for the year 2023: 21 590 300 000€ 

3. 

FINANCIAL IMPACT  

 

Proposal has no financial implications 

Proposal has no financial impact on expenditure but has a financial impact on 

X 
revenue – the effect is as follows: 

Budget line 

Revenue  

Period: part of 2023 - part of 
2024* 

(EUR million to one decimal 
place) 

Article 120 Chapter 1210 

Impact on own 
resources 

48.4 

Total  

* One-year period since entry into force of the regulation 

The  calculations  are  based  on  2021  import  volumes  of  products  covered  by  the 
proposed  Regulation  in  excess  of  the  annual  duty-free  quota  (i.e.  40  tariff  rate 
quotas) as well as an estimation of anti-dumping duties. 

Based on the above calculations the loss of traditional own resources  revenue from 
this  Decision  is  estimated  at  EUR  64.5  million  (gross  amount,  including  collection 
costs) x 0,75 = EUR 48.4 million for the period in question. 

10 

Regarding  traditional  own  resources  (agricultural  duties,  sugar  levies,  customs  duties)  the  amounts 
indicated must be net amounts, i.e. gross amounts after deduction of 25 % of collection costs. 

EN 

13 

  EN 

 
 
 
 
 
                                                 
4. 

ANTI-FRAUD MEASURES 

In order to  prevent fraud, the entitlement to  the trade measures  established by the proposed 
Regulation  should  be  conditional  upon  Ukraine  having  complied  with  all  the  relevant 
conditions  for  obtaining  benefits  under  the  Association  Agreement,  including  the  rules  of 
origin  of  products  concerned  and  the  procedures  related  thereto,  as  well  as  Ukraine's 
involvement  in  close  administrative  cooperation  with  the  Union,  as  provided  for  by  the 
Association Agreement. 

EN 

14 

  EN