Source: EURLEX
Language: en
Format: md

###### `COMMISSION OF THE EUROPEAN COMMUNITIES`

```
                           C0M(91) 429 final

                           Brussels, 4 November 1991

                   Proposal for a

                   COUNCIL DECISION

             on the conclusion of an Agreement
            in the form of an exchange of letters
           between the European Economic Community
              and the Republic of San Marino

               (presented by the Commission)

```

### **_z_**

```
                EXPLANATORY MEMORANDUM

1. On 18 December of last year, the Council adopted directives authorizing
the Commission to begin negotiations for an agreement in the form of an
exchange of letters with San Marino.

Negotiating sessions took place in Brussels on 14 February and 4 July on
the basis of those directives.

2. At the close of the second session, on 4 July, a draft exchange of

letters was initialled.

The Agreement establishes a customs union between the two parties [1], to
apply to all the products listed in Chapters 1 to 97 of the CCT except for
the products covered by the ECSC Treaty. The customs union follows the
usual practice of eliminating all import and export duties between the
contracting parties, subject to special provisions regarding a form of
import charge levied at present by San Marino. It also forbids all
quantitative restrictions or measures with an equivalent effect in trade
between San Marino and the Community. With regard to non-Community
countries, San Marino will apply the Common Customs Tariff, provisions
needed for the proper operation of the customs union, the provisions of the
Community's common commercial policy and the agricultural regulations
(except for refunds and compensatory amounts for exports).

In addition to its provisions on trade, the Agreement establishes
cooperation between the Community and San Marino in a number of fields,
particularly industry and services, the environment, tourism and culture.

A section on social matters provides for equal treatment for workers from
San Marino and from the Community with regard to working conditions,
remuneration and social security, under the terms laid down in the
Agreement.

Declarations attached to the Agreement deal with matters such as transport,
teacher and student exchanges, services, intellectual, industrial and
commercial property, recognition of qualifications and technical
regulations.

A Cooperation Committee will be set up to administer the Agreement.

1 San Marino is already part of the customs territory of the Community.

```

**3**

```
The Agreement is due to enter into force on 1 July 1992. It is of
indefinite duration, but may be reviewed.

3. The Commission considers that the draft Agreement, in accordance with
the Council's negotiating directives, provides a coherent basis for the
establishment of relations between the Community and San Marino and that it
respects San Marino's interests and special characteristics.

4. The Commission therefore invites the Council to approve the Agreement
and begin the process of signature and conclusion.

It is accordingly forwarding to the Council:

- a proposal for a Council Decision on the conclusion of an Agreement in
the form of an exchange of letters between the European Economic Community
and the Republic of San Marino;

- the draft Agreement (and its annex) resulting from the version
initialled;

- the declarations attached to the draft Agreement.

```

_**7**_

```
                  Proposal for a

                  COUNCIL DECISION

             on the conclusion of an Agreement
            in the form of an exchange of letters
           between the European Economic Community
              and the Republic of San Marino

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community,
and in particular Articles 113 and 235 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas in furtherance of its external economic objectives and taking
account of the special situation of San Marino, the Community should
approve the Agreement in the form of an exchange of letters between the
European Economic Community and the Republic of San Marino;

HAS DECIDED AS FOLLOWS:

                    Article 1

The Agreement in the form of an exchange of letters between the European
Economic Community and the Republic of San Marino, including the Agreement
and declarations it incorporates, is hereby approved on behalf of the
Commun i t y.

The texts of the items referred to above are attached to this Decision.

```

## **_s_**

```
                   Article 2

The President of the Council shall give the notification provided for in
Article 30 of the Agreement. [1 ]

Done at Brussels,

                            For the CounciI

                            The President

1 The date of entry into force of the Agreement will be published in the
  Official Journal of the European Communities by the General Secretariat
  of the CounciI.

```

## **_6_**

**AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS**

**BETWEEN**

**THE** **EUROPEAN BCXHXEC O0MMDNITÏ**

**AND**

```
      THE REPUBLIC OF SAN MARINO

```

**}**

```
A. Letter from the Republic of San Marino

Sir,

Please find attached the text of the Agreement between the Repnhllo of San
Marino and the European Economic Community. I have the honour to confirm
that the Republic of San Marino accepts the Agreement.

Please would you confirm that the European Economic Community accepts the
Agreement. The Agreement between the Republio of San Marino and the
European Economic Community shall thereby be concluded, as set out In the
attached text.

Please accept, Six, the assurance of my highest consideration.

             For the Government of the Republio of San Marino

```

_**$**_

```
                     Brussels, ...

B. Letter from the Community

Sir,

I acknowledge receipt of your letter accepting the Agreement between the
Republio of San Marino and the European Economio Community. Your letter
reads as follows:

"Please find attached the text of the Agreement between the Republic of San
Ma.r1no and the European Kooncmlo Community. I have the honour to confirm
that the Republio of San Marino accepts the Agreement.

Please would you confirm that the European Economic Community accepts the
Agreement. The Agreement between the Republic of San Marino and the
European Economic Community shall thereby be concluded, as set out in the
attached text."

I have the honour to confirm that the European Economio Community accepts
the text of this Agreement. The Community's acceptance of the Agreement
will be given on completion of the necessary internal procedures and
notified to you in accordance with Article 24 of the Agreement.

Please accept, Sir, the assurance of my highest consideration.

                      On behalf of
             the Council of the European Communities

```

##### **3**

**Brussels, 4 July** **1991**

_**HSSaSENI**_ **ON CUSTOMS UNION AND COOPERATION**

**BETWEEN** **THE** **HOROPBAN BOONOMIC OOMMONnY** **AND**

**THE REPUBLIC** **OF SAN** **MARINO**

```
                        4o

THE REPUBLIC OF SAN MARINO

and

THE EOROPBW HXHQMIC COMMDNHy,

RESOLVED to consolidate and extend the existing close relations between the
European Economic Community and the Republic of San Marino,

OONSIEERINGr THAT existing links between the two Parties, particularly in
commercial, economio, social and cultural sectors, should be strengthened
by establishing coopération between San Marino and the European Economic
Community In respect of all matters of common Interest,

CONSIDERING THAT, owing to the situation of San Marino and its present
status within the customs territory of the Community, a customs union
should be established between San Marino and the European Economic
Community,

HAVE AGREED AS KXIOtfS:

                  Article 1

The purpose of this Agreement between the European Economic Community and
the Republio of San Marino is to establish a customs union between the two
Parties and promote comprehensive cooperation between them with the aim of
contributing to the social and economic development of San Marino and
strengthening relations between the Parties.

                  TITLE I

                 CUSTOMS UNION

                  Article 2

A customs union is hereby established between the European Economie
Community and San Marino for products covered by Chapters 1 to 97 of the
Common Customs Tariff, except products falling within the scope of the
Treaty establishing the European Coal and Steel Community.

```

_*****_ _**n**_

```
                  Article 5

1. The provisions of this Title shall apply to:

(a) goods produced in the Community or in San Marino, 1nrfl Tiding those
    obtained wholly or in part from products which come from third
    countries and are in free circulation in the Community or in San
    Marino;

(b) goods which come from third countries and are in free circulation
    in the Community or in San Marino.

2. Products coming from third countries shall be considered to be in free
circulation in the Community or in San Marino If the import formalities
have been compiled with and any customs duties or charges having equivalent
effect which are payable have been levied, and there has been no total or
partial drawback of such duties or charges In respect of the said products.

                  Article 4

The provisions of this Title shall also apply to goods obtained or produced
in the Community or in San Marino, in the manufacture of which were used
products coming from third countries and not in free circulation either in
the Community or in San Marino. These provisions shall, however, apply to
those goods only if the exporting Contracting Party levies the customs
duties laid down in the Community for third country products used in their
manufacture.

                  Article 5

1. The Contracting Parties shall refrain from introducing between
  themselves any new customs duties on imports or exports or charges
  having equivalent effect.

2. San Merino also undertakes not to adjust duties referred to in
  paragraph 1 as applied to Imports from the Community on 1 January 1991,
  without prejudice to existing commitments between San Marino and Italy
  pursuant to the exchange of letters of 21 December 1972.

                  Article 6

1. Trade between the Community and San Marino shall be exempt from all
  Import and export duties and charges having equivalent effect, subject
  to the provisions of paragraphs 2 and 3.

```

_**1**_
_**<**_

```
2. In order that the charges having equivalent effect currently applied to
  imports from the GDmmunity may be abolished on 1 January 1996,
  San JfaHtm undertakes to introduce, within six months of the entry into
  force of the Agreement, a supplementary tax corresponding to that
  currently levied on imported goods, to be chargeable an domestic
  products intended for home consumption. The supplementary tax will
  apply in full on the above date. It shall be apjxLioable as a
  countervailing measure and shall be calculated on the added value of
  domestlo products at rates equal to those applied to imported goods of a
  similar kind.

3. (a) On the entry into force of the Agreement the Community, with the
    exception of the Klnglnm of Spain and the Portuguese Republic,
    shall admit imports from San Marino exempt from customs duty.

  (b) From the entry into force of the Agreement the Kingdom of Spain and
    the Portuguese Republio shall apply the same customs duties in
    respect of San Marino as they apply in respect of the Community as
    constituted on 31 December 1985.

4. In trade in agricultural products between the Community and San Marino,
  San Marino undertakes to adopt Community veterinary, plant health and
  quality regulations where necessary for the proper functioning of the
  Agreement.

                  Article 7

1. From the entry into force of the Agreement San Marino shall apply in
  respect of countries not members of the Community:

    the Common Customs Tariff;

    laws, regulations and administrative provisions applicable to
    customs matters in the Ganraunity and necessary for the proper
    functioning of the customs union;

    the common commercial policy of the Community;

    Community regulations on trade In agricultural products covered by
    Annex II to the Treaty establishing the European Economic
    Community, with the exception of refunds and compensatory amounts
    accorded for exports;

    Community veterinary, plant health and quality regulations where
    necessary for the proper functioning of the Agreement.

```

_**13**_

```
  The provisions referred to in this paragraph shall be those applicable
  at the time in the Community.

2. The provisions referred to in the second to fifth Indents of paragraph 1
  shall be determined in greater detail by the Cooperation Committee.

3. By way of derogation from the first indent of paragraph 1 publications,
  works of art, scientific or teaching materials and medical supplies or
  equipment offered to the San Marino government, insignlas, medals,
  stamps, printed matter and other similar objects or paper destined for
  use by the government shall be exempt from customs duties.

                  Article 8

1. (a) Over a period of five years from the entry into force of the
    Agreement, and beyond that period if no agreement can be reached in
    aocordanoe with 1(b), San Marino shall authorize the Community,
    acting on behalf of and for San Marino, to carry out customs
    clearance formalities, in particular release for free circulation
    of products sent from third countries to San Marino. Such
    formalities will be effected by Community customs of floes.

  (b) At the end of this period, and under Article 26, San Mu-Htm may
    exercise its right to carry out customs clearance formalities,
    following agreement of the Contracting Parties.

2. Where import duties are payable on goods pursuant to paragraph 1, these
duties shall be levied on behalf of San Marino. San Marino shall undertake
not to refund these sums directly or Indirectly to the parties concerned,
subjeot to the provisions of paragraph 4.

3. The Cooperation Committee shall decide on:

  (a) possible changes to the list of the customs of floes competent to
    clear the goods referred to In paragraph 1 and the procedure for
    forwarding the said goods to San Marino;

  (b) the arrangements for assigning to the San Marino Exchequer the
    amounts collected in accordance with paragraph 2, and the
    percentage to be deducted by the European Economio Community to
    cover administrative costs in accordance with the relevant
    regulations in force within the Community;

  (o) any other arrangements necessary for the proper implementation of
    this Artiole.

```

```
4. The taxes and levies on imports of agricultural products may be used by
San MfrHtm for aiding production or exports. San Marino undertakes,
however, not to accord higher export refunds or compensatory amounts than
those accorded by the European Economio Community for exports to third
countries.

                  Article 9

Quantitative restrictions on Imports and exports and all measures having
equivalent effect between the Community and San Marino shall be prohibited
from the entry into force of the Agreement.

                 Article 10

The Agreement shall not preclude prohibitions or restrictions on imports,
exports or goods in transit justified on grounds of public morality, public
policy or public security; the protection of health and life of humans,
animals or plants; the protection of national treasures possessing
artistic, historic or archaeologioal value; the protection of industrial or
commercial property; or controls relating to gold and silver. Such
prohibitions or restrictions shall not, however, constitute a means of
arbitrary discrimination or a disguised restriction on trade between the
Contracting Parties.

                  Article 11

The Contracting Parties shall refrain from any domestic tax measure or
practice leading directly or Indirectly to discrimination between the
products of one Contracting Party and similar products from the other
Contracting Party.

Products sent to the territory of one of the Contracting Parties shall not
be eligible for a refund of domestio charges which is higher than the
charges which have been levied directly or Indirectly.

```

### **_is_**

```
                 Article 12

1. If serious disturbances arise in any sector of the economy of one of the
Contracting Parties, the Contracting Party oonoemed may take the necessary
safeguard measures in accordance with the procedures, and subject to the
conditions, of the paragraphs below.

2. In the case referred to in paragraph 1, before taking the measures
provided for therein or, In the oases covered by paragraph 3, as soon as
possible, the Contracting Party in question shall provide the Cooperation
Committee with all relevant information required for a detailed examination
of the situation with a view to seeking a solution acceptable to the
Contracting Parties. At the request of the other Contracting Party,
consultations shall take place within the Cooperation Committee before the
Contracting Party oonoemed takes appropriate measures.

3. Where exceptional circumstances require Immediate action making prior
examination impossible, the Contracting Party concerned may apply forthwith
such precautionary measures as are strictly necessary to remedy the
situation.

4. In the selection of measures priority must be given to those which least
disturb the functioning of the Agreement. Such measures must not exceed
the limits of what is strictly neoessary to counteract the difficulties
that have arisen.

The safeguard measures must be notified immediately to the Cooperation
Committee, which shall hold regular consultations on them, particularly
with a view to their abolition as soon as circumstances permit.

                 Article 13

1. In addition to the cooperation provided for in Article 22(8), the
administrative authorities of the Contracting Parties responsible for
implementing the provisions of this Agreement shall assist each other in
other oases so as to ensure oomplianoe with the provisions.

2. Procedures for the application of paragraph 1 shall be laid down by the
Cooperation Committee.

```

```
                      46

                  TITLE II

                 COOPERATION

                 Article 14

The Community and San Marino shall institute cooperation with the aim of
strengthening existing links between them on as broad a basis as possible
for the mutual benefit of the Parties, taking account of their respective
powers. Cooperation shall focus on the priority areas referred to in
Articles 15 to 18 of this Title.

                 Article 16

The Contracting Parties undertake to encourage the growth and
diversification of the industrial and services sectors of the economy of
San Marino, focusing their cooperation activities on small and medium-sized
enterprises.

                  Article 16

The Contracting Parties undertake to cooperate on matters relating to
environmental protection and improvement with the aim of resolving the
problems caused by contamination of water, soil and air, by erosion and by
deforestation. They will pay special attention to the problems of
pollution in the Adriatic Sea.

                  Article 17

In accordance with their respective laws, the Contracting Parties ffl-w-ii
support cooperation in the tourism sector through operations such as the
exchange of officials and experts on tourism, exchanges of information and
tourist statistics, and training in hotel management and administration.
In this context the Contracting Parties shall pay particular attention to
the promotion of out-of-season tourism In San Marino.

                  Article 18

The Contracting Parties agree to undertake joint operations in
communications, information and cultural matters to strengthen existing
links between them.

```

###### **^9**

```
Such operations may take the following forms:

- exchanges of information on subjects of mutual Interest in the fields of
  culture and information;

 events of a cultural nature;

- cultural exchanges;

- aoademio exchanges.

                 Article 19

The Contracting Parties may enlarge the scope of this Agreement by mutual
consent in order to supplement the areas of coopération through agreements
on specific sectors or activities.

                  TITLE H I

                SOCIAL PROVISIONS

                 Article 20

The treatment accorded by each Member State to workers of San Marino
nationality employed in its territory shall be free from any discrimination
based on nationality in relation to its own nationals as regards working
conditions or remuneration.

San Marino shall accord the same treatment to workers who are nationals of
a Member State and employed in its territory.

                 Article 21

1. Subject to the provisions of the following paragraphs, workers of
  San Marino nationality and any members of their families living with
  them shall enjoy, in the field of social security, treatment free from
  discrimination based on nationality In relation to nationals of Member
  States in which they are employed.

2. All periods of insurance, employment or residence completed by such
  workers in the various Member States shall be added together for the
  purpose of pensions and annuities in respect of old age, death and
  invalidity, and also for the purpose of medical care for the workers and
  for members of their families resident in the Community.

```

##### **_s_**

```
3. The workers in question shall receive family allowances for members of
  their families who are resident in the Community.

4. The workers in question shall be able to transfer freely to San Marino,
  at the rates applied by virtue of the law of the debtor Member State or
  States, any pensions or annuities in respect of disability, old age,
  death, Industrial accident or occupational disease.

5. San Marino shall accord to workers who are nationals of a Member State
  and employed in its territory, and to members of their families,
  treatment similar to that specified In paragraphs 1, 3 and 4.

                 Article 22

1. Before the end of the first year following the entry into foroe of this
  Agreement, the Cooperation Committee shall adopt provisions to implement
  the principles set out In Article 21.

2. The Cooperation Committee shall adopted detailed rules for
  administrative cooperation providing the necessary management and
  control guarantees for the application of the provisions referred to in
  paragraph 1.

3. The provisions adopted by the Cooperation Committee shall not affect the
  rights or obligations arising from bilateral agreements between
  San Marino and Member States of the Community where those agreements
  provide for more favourable treatment of nationals of San Marino or the
  Member States.

                  TITLE IV

             GBŒRAL AND FERAL PROVISIONS

                 Article 23

1. A Cooperation Committee is hereby set up with responsibility for
  administering -the Agreement and ensuring that it is properly
  Implemented. To that end it shall formulate recommendations. It «v^n
  take decisions in the oases provided for in the Agreement. The
  decisions shall be executed by the Contracting Parties in accordance
  with their own regulations.

2. With a view to the proper implementation of the Agreement, the
  Contracting Parties shall carry out exchanges of information and, at the
  request of either Party, shall consult together In the Cooperation
  Committee.

3. The Cooperation Committee shall draw up its own rules of procedure.

```

##### **^3**

```
4. The Cooperation Committee shall be composed, on the one hand, of
  representatives of the Commission, assisted by delegates of the Member
  States and, on the other, of representatives of San Marino.

5. The Cooperation Committee shall take decisions by oommon accord.

6. The Cooperation Committee shall be chaired by each of the Contracting
  Parties in turn in accordance with the arrangements to be established in
  its rules of procedure.

7. The Cooperation Committee shall meet at the request of either of the
  Contracting Parties, to be lodged at least one month before the date of
  the intended meeting. Where the Committee is convened under Article 12,
  it shall meet within eight working days from the date on which the date
  is lodged.

8. In accordance with the procedure laid down in paragraph 1, the
  Cooperation Committee shall establish methods of administrative
  cooperation for the purposes of applying Articles 3 and 4, taking as a
  basis the methods adopted by the Community in respect of trade between
  the Member States.

                 Article 24

1. Any disputes arising between the Contracting Parties over the
  interpretation of the Agreement shall be put before the Cooperation
  Committee.

2. If the Cooperation Committee does not succeed in settling the dispute at
  its next meeting, each Party may notify the other of the designation of
  an arbitrator; the other Party shall then be required to designate a
  second arbitrator within two months.

  The Cooperation Committee shall designate a third arbitrator.

  The arbitrators' decisions shall be taken by majority vote.

  Each Party in the dispute shall be required to take the measures needed
  to ensure the application of the arbitrators' decision.

                 Article 25

In trade covered by the Agreement:

- the arrangements applied by San Marino in respect of Community may not
  give rise to any discrimination between the Member States, their
  nationals, or their companies;

```

###### **`£o`**

```
- the arrangements applied by the Community in respect of San Marino may
  not give rise to any discrimination between San Murine nationals or
  companies.

                 Article 26

T M q Agreement is concluded for an unlimited duration. Within no more than
five years of its entry into force, the two Parties shall begin
consultations to examine the results of its application and, if necessary,
open negotiations on its amendment In the light of that examination.

                  Article 27

Either Contracting Party may denounce this Agreement by notifying the other
Contracting Party in writing. In that case, the Agreement shall cease to
have effect six months after the date of such notification.

                  Article 28

This Agreement replaces provisions of agreements concluded between Member
States of the Community and San Marino that conflict with it, or which are
identical.

                  Article 29

The Agreement shall apply, on the one hand, to the territories In which the
Treaty establishing the European Economic Community is applied and under
the conditions laid down in that Treaty and, on the other, to the territory
of San Marino.

                  Article 30

1. This Agreement shall enter into force on 1 July 1992, on condition that
the Contracting Parties have notified each other before that date of the
completion of the procedures necessary to that effect.

2. After the date provided for in paragraph 1, the Agreement shall enter
into force on the first day of the half-year following notification.

```

```
                 Article 31

The Annex to this Agreement shall form an Integral part thereof.

                 Article 32

  This Agreement is drawn up in two originals in the Danish, Dutch,
English, French, German, Greek, Italian, Portuguese and Spanish languages,
each text being equally authentic.

```

**^**

```
ANNEX

```

```
List of customs offices referred to In Article 8(1) (a)

IAvorno

Ravenna

Rimini

Trieste

```

#### **`^3`**

```
             DECLARATION BY THE OOMMnNTTY

Where the scale of trade flows so warrants, the Community is prepared to
negotiate on behalf of and for the Republio of San Marino with countries
with which it has concluded preferential agreements for an appropriate form
of récognition of equivalent treatment for products originating in
San Marino and products originating in the Community;

```

**^**

```
         DECLARATION BY THE COMMONITY ON TRANSPORT

At an appropriate moment and in the light, notably, of progress made in
drawing up a Community transport policy, the Community will look Into the
issue of San Marino's access to the market for international transport of
passengers and goods by road.

```

_**3.S**_

```
      DECLARATION BY THE OOMMDNITY ON THE ERASMDS PROGRAMME

The Community takes note of San Marino's wish to participate, when the time
is ripe, in the Erasmus programme for exchanges of students and teachers.

```

```
                      ^G

       DECLARATION BY THE OOMMDNITY ON CERTAIN SDBJBCTS

       WHICH MAY BE RAISED IN THE COOPERATION COMMITTEE

The Community is ready to examine within the framework of the Cooperation
Committee any problems that may arise between San Marino and the Community
In the fields of:

- trade in services;
- Intellectual, industrial and commercial property rights;
- recognition of qualifications;
- assessment of products' oonformity with technical regulations.

```

_**2.**_
###### **9**

```
         DECLARATION BY THE MEMBER STATES CONCERNING
            THE MINUTES OF THE NBQOTIATICftTS

Each Member State will look favourably on requests made by San Marino
concerning authorizations for the transport of passengers or freight by
road.

```

#### **a £**

```
               JOINT DECLARATION

In the event that the deadline of 1 July 1992 specified in Article 30(1) Is
not met, the dates stipulated in Article 6(2) will be adjusted in
accordance with Article 30(2).

```

##### **^9**

```
                 FINANCIAL STATEMENT

The draft Agreement with San Marino has no implications for the Community
budget.

While Article 8 stipulates that the Community, acting on behalf of and for
San Marino, will collect import duties on products from third countries,
passing the sums concerned to the San Marino Exchequer after deduction of a
percentage to cover administrative costs, such transactions will not
constitute new expenditure from the Community budget, being legally due to

San Mar ino.

```

### **_s_**

```
                     £ME

In trade terms, the establishment of a customs union with San Marino will
have no effect on SME in the Community, since San Marino is already part of
the Community's customs territory.

The aim of the other provisions of the Agreement is to achieve a better
integration of San Marino into the Community sphere, and they will not
affect the situation of SME in the Community.

```

##### **_31_**

**ISSN** **0254-1475**

**COM** **(91)** **429** **final**

# **DOCUMENTS**

## **EN u**

**Catalogue number** **: CB-CO-91-471-EN-C**

**ISBN 92-77-76824-X**

**Office for Official** **Publications** **of the European Communities**

**L-2985** **Luxembourg**