Source: EURLEX
Language: en
Format: md

No C 302/12 Official Journal of the European Communities 22. 11. 91

AGREEMENT

on customs union and cooperation between the European Economic Community and the

Republic of San Marino

THE REPUBLIC OF SAN MARINO,

and

THE EUROPEAN ECONOMIC COMMUNITY,

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

CONSIDERING THAT existing links between the two Parties, particularly in commercial, economic,
social and cultural sectors, should be strengthened by establishing cooperation 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 FOLLOWS:

_Article 1_

The purpose of this Agreement between the European
Economic Community and the Republic 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 Economic 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.

_Article 3_

1. The provisions of this Title shall apply to:

(a) goods produced in the Community or in San
Marino, including 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
complied 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.

22. 11.91 Official Journal of the European Communities No C 302/13

2. San Marino 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.

2. In order that the charges having equivalent effect
currently applied to imports from the Community may
be abolished on 1 January 1996, San Marino 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 on domestic products intended for home
consumption. The supplementary tax will apply in full on
the above date. It shall be applicable as a countervailing
measure and shall be calculated on the added value of

domestic 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 Kingdom
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 Republic
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 Community 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.

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, insignias,
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 accordance 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 offices.

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

No C 302/14 Official Journal of the European Communities 22. 11.91

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,
subject to the provisions of paragraph 4.

3. The Cooperation Committee shall decide on:

(a) possible changes to the list of the customs offices
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
paragraphe 2, and the percentage to be deducted by
the European Economic Community to cover administrative costs in accordance with the relevant regulations in force within the Community;

(c) any other arrangements necessary for the proper
implementation of this Article.

4. The taxes and levies on imports of agricultural
products may be used by San Marino for aiding
production or exports. San Marino undertakes, however,
not to accord higher export refunds or compensatory
amounts than those accorded by the European Economic
Community for export 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, export 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 archaeological
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 domestic
charges which is higher than the charges which have
been levied directly or indirectly.

_Article 12_

1. If serious disturbances arise in any sector of the
economy of one of the Contracting Parties, the
Contracting Party concerned 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 cases
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 concerned 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 no exceed the limits of
what is strictly necessary 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 cases so as to ensure compliance with the
provisions.

22. 11.91 Official Journal of the European Communities No C 302/15

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

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 15_

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 shall 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.

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,

— academic exchanges.

_Article 19_

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

TITLE III

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, dealth and invalidity, and
also for the purpose of medical care for the workers and
for members of their families resident in the Community.

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.

No C 302/16 Official Journal of the European Communities _21._ 11.91

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 force of this Agreement, the Cooperation
Committee shall adopt provisions to implement the principles set out in Article 21.

2. The Cooperation Committee shall adopt 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

General and final 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 shall take decisions

in the cases 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.

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
common 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 pursuant to
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
paragraphe 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 arbi
trator.

The arbitrator's 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,

— the arrangements applied by the Community in
respect of San Marino may give rise to any discrimination between San Marino nationals or companies.

22. 11.91 Official Journal of the European Communities No C 302/17

_Article 26_

This 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)

LIVORNO

RAVENNA

RIMINI

TRIESTE

Declaration by the Community

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

No C 302/18 Official Journal of the European Communities 22. 11. 91

Declaration by the Community 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.

Declaration by the Community on the Erasmus 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.

Declaration by the Community on certain subjects 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' conformity with technical regulations.

Declaration by the Member States concerning the Minutes of the negotiations

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

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).