CELEX: 51996PC0322(01)
Language: en
Date: 1996-07-10
Title: Proposal for a COUNCIL DECISION ON THE CONCLUSION BY THE EUROPEAN COMMUNITY OF THE INTERIM AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL COMMUNITY AND THE EUROPEAN ATOMIC ENERGY COMMUNITY, OF THE ONE PART, AND GEORGIA, OF THE OTHER PART, ON TRADE AND TRADE-RELATED MATTERS

COMMISSION OF THE EUROPEAN COMMUNITIES
                                          Brussels, 10.07.1996
                                          COM(96) 322 final
                                          96/0180 (ACC)
                           Proposal for a
                       COUNCIL DECISION
   ON THE CONCLUSION BY THE EUROPEAN COMMUNITY OF THE
 INTERIM AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE
   EUROPEAN COAL AND STEEL COMMUNITY AND THE EUROPEAN
ATOMIC ENERGY COMMUNITY, OF THE ONE PART, AND GEORGIA, OF
    THE OTHER PART, ON TRADE AND TRADE-RELATED MATTERS
                   (presented by the Commission)
                               Draft
                     COMMISSION DECISION
CONCERNING THE CONCLUSION ON BEHALF OF THE EUROPEAN COAL
      AND STEEL COMMUNITY AND EURATOM OF THE INTERIM
AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE EUROPEAN
COAL AND STEEL COMMUNITY AND THE EUROPEAN ATOMIC ENERGY
COMMUNITY, OF THE ONE PART, AND GEORGIA, OF THE OTHER PART,
            ON TRADE AND TRADE-RELATED MATTERS
 ---pagebreak---  ---pagebreak---                                 Explanatory memorandum
1. The attached proposals for Decisions constitute the legal instrument for the conclusion
   of the Interim Agreement between the European Community, the European Atomic
   Energy Community and the European Coal and Steel Community, on the one hand,
   and Georgia, on the other.
2. Pending ratification of the Partnership and Cooperation Agreement with Georgia,
   signed in Luxembourg on 22 April 1996, the Commission has, in accordance with the
   negotiating directives adopted by the Council on 18 July 1994, negotiated an Interim
   Agreement with Georgia.
3. The Interim Agreement providing for provisional implementation of the part of the
   Partnership and Cooperation Agreement on trade and trade-related measures was
   initialed in Brussels on 10 May 1996, and will be concluded for the period ending with
   the entry into force of the Partnership and Cooperation Agreement.
4. The Interim Agreement replaces, as far as Georgia is concerned, the relevant
   provisions of the Agreement on Trade and Commercial and Economic Cooperation
   signed on 18 December 1989 between the European Economic Community and the
   European Atomic Energy Community, of the one part, and Union of Soviet Socialist
   Republics, of the other part.
5. The procedures for signing and concluding the Agreement differ between the EC, the
   ECSC and Euratom.
   The Agreement will be concluded as follows :
   - the Council, will conclude the Agreement on behalf of the European Community
   under Article 113, in conjunction with Article 228 (2), first sentence of the EC Treaty
   by adopting the Decision contained in Annex I;
   - the Commission will conclude the Agreement on behalf of the ECSC by adopting the
   Decision contained in Annex II in accordance with Article 95 of the ECSC Treaty, with
   the unanimous assent of the Council and following consultation of the Consultative
   Committee;
   - the Commission will conclude the Agreement on behalf of the European Atomic
   Energy Community by adopting the Decision contained in Annex II.
6. The Commission accordingly requests the Council to adopt the proposal contained in
   Annex I and to give its assent and approval to the decision under Annex II.
                                                                                           z
 ---pagebreak---                                  ANNEX I
Proposal for a Council Decision concerning the conclusion by the European
Community of the Interim Agreement between the European Community, the
European Coal and Steel Community and the European Atomic Energy
Community, of the one part, and Georgia, of the other part, on trade and trade-
related matters.
                                                                                3
 ---pagebreak---                                         Proposal for
                                  COUNCIL DECISION
                                         OF
      ON THE CONCLUSION BY THE EUROPEAN COMMUNITY OF THE
    INTERIM AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE
       EUROPEAN COAL AND STEEL COMMUNITY AND THE EUROPEAN
               ATOMIC ENERGY COMMUNITY, OF THE ONE PART,
                      AND GEORGIA, OF THE OTHER PART,
                   ON TRADE AND TRADE-RELATED MATTERS
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular
Article 113 in conjunction with Article 228 (2), first sentence thereof,
Having regard to the proposal from the Commission,
Whereas, pending the entry into force of the Partnership and Cooperation Agreement
between the European Communities and their Member States, of the one part, and
Georgia, of the other part, signed in Luxembourg on 22 April 1996, it is necessary to
approve on behalf of the European Community, the Interim Agreement on trade and
trade-related matters between the European Community, the European Coal and Steel
Community and the European Atomic Energy Community, of the one part, and Georgia,
of the other part,
HAS DECIDED AS FOLLOWS :
                                         Article 1
The Interim Agreement on trade and trade-related matters between the European
Community, the European Coal and Steel Community and the European Atomic Energy
Community, of the one part, and Georgia, of the other part, together with its Annexes, the
Protocol and the declarations, are hereby approved on behalf of the European
Community.
These texts are attached to this Decision.
                                          Article 2
The President of the Council is hereby authorised to designate the persons empowered to
sign the Interim Agreement.
                                          Article 3
The President of the Council shall give the notification provided for in Article 32 of the
Interim Agreement on behalf of the European Community.
Done at Brussels,
                                                                                           «4
 ---pagebreak---                                  ANNEX H
Draft Commission Decision concerning the conclusion on behalf of the European
Coal and Steel Community and of Euratom of the Interim Agreement between the
European Community, the European Coal and Steel Community and the European
Atomic Energy Community, of the one part, and Georgia, of the other part, on
trade and trade-related matters.
 ---pagebreak---                                               Draft
                                 COMMISSION DECISION
                                            OF
 CONCERNING THE CONCLUSION ON BEHALF OF THE EUROPEAN COAL
         AND STEEL COMMUNITY AND EURATOM OF THE INTERIM
 AGREEMENT BETWEEN THE EUROPEAN COMMUNITY, THE EUROPEAN
 COAL AND STEEL COMMUNITY AND THE EUROPEAN ATOMIC ENERGY
COMMUNITY, OF THE ONE PART, AND GEORGIA, OF THE OTHER PART,
                    ON TRADE AND TRADE-RELATED MATTERS
                                     (../.../ECSC/EAEC)
THE EUROPEAN COMMISSION,
Having regard to the Treaty establishing the European Coal and Steel Community, and in
particular the first paragraph of Article 95 thereof,
Having regard to the Treaty establishing the European Atomic Energy Community and in
particular the second paragraph of Article 101 thereof,
Whereas, pending the entry into force of the Partnership and Cooperation Agreement
between the European Communities and their Member States, of the one part, and
Georgia of the other part, signed in Luxembourg on 22 April 1996, it is necessary to
approve the Interim Agreement between the European Community, the European Coal
and Steel Community and the European Atomic Energy Community, of the one part, and
Georgia, of the other part, on trade and trade-related matters initialled on 10 May 1996,
Whereas the conclusion of the Interim Agreement is necessary to attain the objectives of
the Community set out in particular in Articles 2 and 3 of the Treaty establishing the
European Coal and Steel Community and whereas the Treaty did not make provision for
all the cases covered by this Decision;
Having consulted the Consultative Committee and with the assent and approval of the
Council,
HAS DECIDED AS FOLLOWS :
                                             Article 1
The Interim Agreement between European Community, the European Coal and Steel
Community and the European Atomic Energy Community, of the one part, and Georgia,
of the other part, on trade and trade-related matters, together with the its Annexes, the
Protocol and the declarations, are hereby approved on behalf of the European Coal and
 Steel Community and of Euratom.
These texts are attached to this Decision.
                                                10
                                                                                          C
 ---pagebreak---                                       Article 2
The President of the Commission shall give the notification provided for in Article 32 of
the Interim Agreement on behalf of the European Coal and Steel Community and the
European Atomic Energy Community.
Done at Brussels,
                                           11
                                                                                          9-
 ---pagebreak---                                          FINAL ACT
The plenipotentiaries of the EUROPEAN COMMUNITY, the EUROPEAN COAL AND
STEEL COMMUNITY and the EUROPEAN ATOMIC ENERGY COMMUNITY,
hereinafter referred to as "the Community", of the one part, and
the plenipotentiaries of GEORGIA, of the other part,
meeting at           on          for the signature of the Interim Agreement on trade and
trade-related matters between the European Community, the European Coal and Steel
Community and the European Atomic Energy Community, of the one part, and Georgia,
of the other part, hereinafter referred to as the Agreement, have adopted the following
texts :
the Interim Agreement and the Protocol on mutual assistance in customs matters.
The plenipotentiaries of the Community and the plenipotentiaries of Georgia have adopted
the texts of the Joint declarations listed below and annexed to this Final Act :
Joint Declaration concerning Title II of the Agreement
Joint Declaration concerning Article 7 of the Agreement
Joint Declaration concerning Article 8 of the Agreement
Joint Declaration concerning Article 15 of the Agreement
Joint Declaration concerning Article 28 of the Agreement
The plenipotentiaries of the Community have taken note of the declarations listed below
and annexed to this Final Act :
Declaration by Georgia concerning the protection of intellectual, industrial and
 commercial property rights.
 Done at Brussels on
 For the European Community, the European Coal and Steel Community and the
 European Atomic Energy Community
 For Georgia
                                               12
 ---pagebreak---                                INTERIM AGREEMENT
        ON TRADE AND TRADE RELATED MATTERS BETWEEN THE
       EUROPEAN COMMUNITY, THE EUROPEAN COAL AND STEEL
   COMMUNITY AND THE EUROPEAN ATOMIC ENERGY COMMUNITY
          OF THE ONE PART AND GEORGIA OF THE OTHER PART
  The EUROPEAN COMMUNITY, the EUROPEAN COAL AND STEEL
  COfcBrfUNITY AND THE EUROPEAN ATOMIC ENERGY COMMUNITY,
  hereinafter referred to as "THE COMMUNITY"
  of the one part,
  and GEORGIA
  of the other part,
  Whereas an Agreement on Partnership and Cooperation between the European
  Communities and their Member States, of the one part and Georgia of the other part
  was signed on 22 April 1996;
  Whereas the aim of the Partnership and Cooperation Agreement is to strengthen and
  widen the relations established previously, notably by the Agreement on Trade and
  Commercial and Economic Cooperation between the European Economic
  Community, the European Atomic Energy Community and the USSR signed on
   18 December 1989;
  Whereas it is necessary to ensure the rapid development of trade relations between
  the Parties;
  Whereas to this end it is necessary to implement as speedily as possible, by means of
  an Interim Agreement, the provisions of the Partnership and Cooperation Agreement
  concerning trade and trade-related matters;
  Whereas the said provisions should, accordingly, replace the relevant provisions of
  the Trade and Commercial and Economic Cooperation Agreement;
  Whereas it is necessary to ensure that pending the entry into force of the Partnership
  and Cooperation Agreement and the establishment of the Cooperation Council, the
  Joint Committee set up under the Agreement on Trade and Commercial and
  Economic Cooperation may exercise the powers assigned by the Partnership and
  Cooperation Agreement to the Cooperation Council, which are necessary in order to
  implement the Interim Agreement;
  Have decided to conclude this Agreement and to this end have designated as their
  plenipotentiaries:
                               lo
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                                                                                           r
 ---pagebreak---  THE EUROPEAN COMMUNITY :
  THE EUROPEAN COAL AND STEEL COMMUNITY :
 THE EUROPEAN ATOMIC ENERGY COMMUNITY :
  GEORGIA :
  Who, having exchanged their Full Powers, found in good and due form,
  Haveargreed as follows :
                           TITLE I : GENERAL PRINCIPLES
                                    IPCA Georgia : Title H
                                           Article 1
                                  IPCA Georgia : Article 21
  Respect for democracy, principles of international law and human rights as defined in
  particular in the United Nations Charter, the Helsinki Final Act and the Charter of Paris
  for a New Europe, as well as the principles of market economy, including those
  enunciated in the documents of the CSCE Bonn Conference, underpin the internal and
  external policies of the Parties and constitute an essential element of partnership and of
  this Agreement. s
                               TITLE n : TRADE IN GOODS
                                   IPCA Georgia : Title HI1
                                            Article 2
                                  IPCA Georgia : Article 91
   1. The Parties shall accord to one another most-favoured-nation treatment in all areas in
      respect of :
      - customs duties and charges applied to imports and exports, including the method of
        collecting such duties and charges;
      - provisions relating to customs clearance, transit, warehouses and transhipment;
      - taxes and other internal charges of any kind applied directly or indirectly to imported
        goods;
      - methods of payment and the transfer of such payments related to trade in goods;
      - the rules relating to the sale, purchase, transport, distribution and use of goods on the
        domestic market.
v*0
 ---pagebreak---    2. The provisions of paragraph 1 shall not apply to :
       (a) advantages granted with the aim of creating a customs union or a free-trade area
             or pursuant to the creation of such a union or area;
       (b) advantages granted to particular countries in accordance with WTO rules and
             with other international arrangements in favour of developing countries;
       (c) advantages accorded to adjacent countries in order to facilitate frontier traffic.
   3. The provisions of paragraph 1 shall not apply, during a transitional period expiring on
      .the date of Georgia acceding to the WTO or on the 31.12.1998, whichever is earlier, to
       advantages defined in Annex I granted by Georgia to other states which have emerged
       from the dissolution of the USSR.
                                             Article 3
                                   fPCA Georgia : Article 101
    1. The Parties agree that the principle of free transit is an essential condition of attaining
       the objectives of this Agreement.
        In this connection each Party shall secure unrestricted transit via or through its territory
        of goods originating in the customs territory or destined for the customs territory of
        the other Party.
    2. The rules described in the Article V, paragraphs 2, 3, 4 and 5 of the GATT are
        applicable between the Parties.
    3. The rules contained in this Article are without prejudice to any special rules relating to
        specific sectors, in particular such as transport, or products agreed between the Parties.
                                             Article 4
                                    IPCA Georgia : Article 111
    Without prejudice to the rights and obligations stemming from international conventions
    on the temporary admission of goods which bind both Parties, each Party shall
    furthermore grant the other Party exemption from import charges and duties on goods
    admitted temporarily, in the instances and according to the procedures stipulated by any
    other international convention on this matter binding upon it, in conformity with its
    legislation. Account shall be taken of the conditions under which the obligations stemming
    from such a convention have been accepted by the Party in question.
                                             Article S
                                    IPCA Georgia : Article 121
    1. Goods originating in Georgia shall be imported into the Community free of
        quantitative restrictions without prejudice to the provisions of Articles 7, 10 and 11 of
        this Agreement.
              *o*
    2. Goods originating in the Community shall be imported into Georgia free of all
        quantitative restrictions and measures of equivalent effect, without prejudice to the
        provisions of Article 7 of this Agreement.
     1
v*"                                                ">/
 ---pagebreak---                                           Article 6
                                IPCA Georgia : Article 131
 Goods shall be traded between the Parties at market-related prices.
                                          Article 7
                                IPCA Georgia : Article 141
 1. Where any product is being imported into the territory of one of the Parties in such
    increased quantities or under such conditions as to cause or threaten to cause injury to
    domestic producers of like or direct competitive products, the Community or Georgia,
    whichever is concerned, may take appropriate measures in accordance with the
    following procedures and conditions.
 2. Before taking any measures, or in cases to which paragraph 4 applies as soon as
    possible thereafter, the Community or Georgia as the case may be shall supply the
    Joint Committee with all relevant information with a view to seeking a solution
    acceptable to both Parties as provided for in Title IV.
 3. If, as a result of the consultations, the Parties do not reach agreement within 30 days of
    referral to the Joint Committee on actions to avoid the situation, the Party which
    requested consultations shall be free to restrict imports of the products concerned to
    the extent and for such time as is necessary to prevent or remedy the injury, or to
     adopt other appropriate measures.
 4. In critical circumstances where delay would cause damage difficult to repair, the
    Parties may take the measures before the consultations, on the condition that
     consultations shall be offered immediately after taking such action.
 5. In the selection of measures under this Article, the Parties shall give priority to those
     which cause least disturbance to the achievement of the aims of this Agreement.
 6. Nothing in this Article shall prejudice or affect in any way the taking, by either Party, of
     anti-dumping or countervailing measures in accordance with Article VI of the GATT,
     the Agreement on implementation of Article VI of the GATT, the Agreement related
     on interpretation and application of Articles VI, XVI and XXIII of the GATT or
     related internal legislation.
                                           Article 8
                                 fPCA Georgia : Article 151
 The Parties undertake to consider development of the provisions in this Agreement on
 trade in goods between them, as circumstances allow, including the situation arising from
 the accession of Georgia to the World Trade Organisation. The Joint Committee referred
 to in Article 17 may make recommendations on such developments to the Parties which
  could be put into effect, where accepted, by virtue of agreement between the Parties in
  accordance with their respective procedures.
                                                  it
4&^
 ---pagebreak---                                             Article 9
                                  IPCA Georgia : Article 161
    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 natural
    resources; the protection of national treasures of artistic, historic or archaeological value
    or the protection of intellectual, industrial and commercial property or rules 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 Parties.
                                           Article 10
                                   IPCA Georgia : Article 171
    This Title II shall not apply to trade in textile products falling under chapters 50 to 63 of
    the Combined Nomenclature. Trade in these products shall be governed by a separate
    agreement, initialled on 22 December 1995 and applied provisionally since 1st January
     1996.
                                           Article 11
                                   IPCA Georgia : Article 181
     1. Trade in products covered by the Treaty establishing the European Coal and
        Steel Community shall be governed by the provisions of this Title II, with the
        exception of Article 5.
    2. A contact group on coal and steel matters shall be set up, comprising representatives of
        the Community on the one hand, and representatives of Georgia on the other.
        The contact group shall exchange, on a regular basis, information on all coal and
        steel matters of interest to the Parties.
                                            Article 12
                                   IPCA Georgia : Article 191
    Trade in nuclear materials will be conducted in accordance with the provisions of the
    Treaty establishing the European Atomic Energy Community. If necessary, trade in
    nuclear materials shall be subject to the provisions of a specific Agreement to be
    concluded between the European Atomic Energy Community and Georgia.
v«#*~i                                              ?
 ---pagebreak---                                          TITLE m :
      PAYMENTS, COMPETITION AND OTHER ECONOMIC PROVISIONS
                                   IPCA Georgia : Title IV1
                                          Article 13
                                IPCA Georgia : Article 41 (1)1
    The Parties undertake to authorize, in freely convertible currency, any current
    payments between residents of the Community and of Georgia connected with the
    movement of goods, made in accordance with the provisions of the present
    Agreement.
                                                    »
                                           Article 14
                                 IPCA Georgia : Article 44 (2)1
     The Parties agree to examine ways to apply their respective competition laws on a
     concerted basis in such cases where trade between them is affected.
                                           Article 15
                                 IPCA Georgia : Article 42 (1)1
     Pursuant to the provisions of this Article and of Annex II, Georgia shall continue to
     improve the protection of intellectual, industrial and commercial property rights in order
     to provide, by the end of the fifth year after the entry into force of the Agreement, for a
     level of protection similar to that provided in the Community by Community acts, in
     particular the ones referred to in Annex II, including comparable means of enforcing such
     rights.
                                           Article 16
     Mutual assistance in customs matters between administrative authorities of the
     Parties shall take place in accordance with the Protocol annexed to this Agreement.
                                                   /I
c^rv
 ---pagebreak---          TITLE IV : INSTITUTIONAL. GENERAL AND FINAL PROVISIONS
                                     IPCA Georgia: Title XII
                                            Article 17
    The Joint Committee set up by the Agreement on Trade and Commercial and
    Economic Cooperation signed between the European Economic Community and the
    USSR on 18 December 1989 shall perform the duties assigned to it by this
    Agreement until the Cooperation Council provided for in Article 81 of the
    Partnership and Cooperation Agreement is established.
                                            Article 18
    The Joint Committee may, for the purposes of attaining the objectives of the
    Agreement, make recommendations in the cases provided for therein.
    It shall draw up its recommendations by agreement between the Parties.
                                            Article 19
                                    IPCA Georgia : Article 851
    When examining any issue arising within the framework of this Agreement in relation to a
    provision referring to an article of the GATTAVTO, the Joint Committee shall take into
    account to the greatest extent possible the interpretation that is generally given to the
    article of the GATTAVTO in question by the members of the WTO.
                                            Article 20
                                    IPCA Georgia ; Article 891
    1. Within the scope of this Agreement, each Party undertakes to ensure that natural and
        legal persons of the other Party have access free of discrimination in relation to its
        own nationals to the competent courts and administrative organs of the Parties to
        defend their individual rights and their property rights, including those concerning
        intellectual, industrial and commercial property.
    2. Within the limits of their respective powers, the Parties :
          - shall encourage the adoption of arbitration for the settlement of disputes
          arising out of commercial and cooperation transactions concluded by economic
          operators of the Community and those of Georgia;
          - agree that where a dispute is submitted to arbitration, each party to the dispute
          may, except where the rules of the arbitration centre chosen by the parties
          provide otherwise, choose its own arbitrator, irrespective of his nationality, and
          that the presiding third arbitrator or the sole arbitrator may be a citizen of a
          third state;
          - will recommend their economic operators to choose by mutual consent the law
          applicable to their contracts;
          - shall encourage recourse to the arbitration rules elaborated by the United
          Nations Commission on International Trade Law (Uncitral) and to arbitration by
          any centre of a state signatory to the Convention on Recognition and
          Enforcement of Foreign Arbitral Awards done at New York on 10th June 1958.
%
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 ---pagebreak---                                              Article 21
                                    IPCA Georgia : Article 901
    Nothing in the Agreement shall prevent a Party from taking any measures:
    (a) which it considers necessary to prevent the disclosure of information contrary
         to its essential security interests;
    (b) which relate to the production of, or trade in arms, munitions or war materials
         or to research, development or production indispensable for defence purposes,
          provided that such measures do not impair the conditions of competition in
      _ respect of products not intended for specifically military purposes;
    (c) which it considers essential to its own security in the event of serious internal
          disturbances affecting the maintenance of law and order, in time of war or
          serious international tension constituting-threat of war or in order to carry out
          obligations it has accepted for the purpose of maintaining peace and
          international security;
    (d) which it considers necessary to respect its international obligations and
          commitments in the control of dual use industrial goods and technologies.
                                              Article 22
                                     IPCA Georgia : Article 911
     1.   In the fields covered by this Agreement and without prejudice to any special
          provisions contained therein :
          - the arrangements applied by Georgia in respect of the Community shall not
          give rise to any discrimination between the Member States, their nationals or
           their companies or firms;
           - the arrangements applied by the Community in respect of Georgia shall not
           give rise to any discrimination between Georgian nationals, or Georgian
           companies or firms.
     2.    The provisions of Paragraph 1 are without prejudice to the right of the Parties
           to apply the relevant provisions of their fiscal legislation to tax payers who are
           not in identical situations as regards their place of residence.
                                              Article 23
                                      IPCA Georgia : Article 921
     1. Each Party may refer to the Joint Committee any dispute relating to the
        application or interpretation of this Agreement.
     2. The Joint Committee may settle the dispute by means of a recommendation.
     3. In the event of it not being possible to settle the dispute in accordance with
        paragraph 2, either Party may notify the other of the appointment of a conciliator;
        the other Party must then appoint a second conciliator within two months.
        The Joint Committee shall appoint a third conciliator.
        The conciliators' recommendations shall be taken by majority vote. Such
        recommendations shall not be binding upon the Parties.
     4 The Joint Committee may establish rules of procedure for dispute settlement.
                                                    ^sr
Vs^4K/\                                          iC
 ---pagebreak---                                            Article 24
                                  IPCA Georgia : Article 931
   The Parties agree to consult promptly through appropriate channels at the request of
   either Party to discuss any matter concerning the interpretation or implementation of
   this Agreement and other relevant aspects of the relations between the Parties.
   The provisions of this Article shall in no way affect and are without prejudice to
   Articles 7, 23 and 28.
                                           Article 25
                                  IPCA Georgia : Article 941
   Treatment granted to Georgia hereunder shall in no case be more favourable than
   that granted by the Member States to each other.
                                           Article 26
                                  IPCA Georgia : Article 961
   Insofar as matters covered by this Agreement are covered by the Energy Charter
   Treaty and Protocols thereto, such Treaty and Protocols shall upon entry into force
    apply to such matters but only to the extent that such application is provided for
    therein.
                                           Article 27
     1. This Agreement shall be applicable until the entry into force of the Partnership
        and Cooperation Agreement signed on 22 April 1996.
    2. Either Party may denounce this Agreement by notifying the other Party. This
        Agreement shall cease to apply six months after the date of such notification.
                                            Article 28
                                  IPCA Georgia : Article 981
     1. The Parties shall take any general or specific measures required to fulfil their
        obligations under the Agreement. They shall see to it that the objectives set out
        in the Agreement are attained.
    2. If either Party considers that the other Party has failed to fulfil an obligation under
        the Agreement, it may take the appropriate measures. Before so doing, except in
        cases of special urgency, it shall supply the Joint Committee with all relevant
        information required for a thorough examination of the situation with a view to
        seeking a solution acceptable to the Parties.
        In the selection of these measures, priority must be given to those which least
        disturb the functioning of the Agreement. These measures shall be notified
        immediately to the Joint Committee if the other Party so requests.
                                            Article 29
                                   IPCA Georgia : Article 991
     Annexes I and II and the Protocol on mutual assistance in customs matters between
     administrative authorities shall form an integral part of this Agreement.
%-
 ---pagebreak---                                       Article 30
                             IPCA Georgia : Article 1011
Tliis Agreement shall apply, on the one hand, to the territories in which the treaties
establishing the European Community, the European Atomic Energy Community
and the European Coal and Steel Community are applied and under the conditions
laid down in those Treaties and, on the other hand, to the territory of Georgia
                                      Article 31
This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish,
French, German, Italian, Spanish, Swedish, Greek, Portuguese, and Georgian
languages, each of these texts being equally authentic.
                                       Article 32
This Agreement will be approved by the Parties in accordance with their own procedures.
This Agreement shall enter into force on thefirstday of the second month following the
 date on which the Parties notify each other that the procedures referred to in the first
 paragraph have been completed.
 Upon its entry into force, and as far as relations between Georgia and the Community
 are concerned, this Agreement shall replace Article 2, Article 3, except for the fourth
 indent thereof, and Articles 4 to 16 of the Agreement between the European Economic
 Community, the European Atomic Energy Community and the Union of Soviet Socialist
 Republics on Trade and Economic and Commercial Cooperation signed in Brussels on 18
 December 1989.
 ---pagebreak---                                         LIST OF DOCUMENTS ATTACHED
       Annex I    Indicative list of advantages granted by Georgia to the
                  Independent States in accordance with Article 2(3).
       Annex:II Intellectual, industrial and commercial property conventions referred to in
                  Article 15.
       Protocol on mutual assistance in customs matters between administrative authorities.
\ * *
      un                                           *fi
 ---pagebreak---                                         ANNEX I
        Indicative list of advantages granted by Georgia to the Independent States in
                             accordance with Article 2, paragraph 3.
     1. All Independent States -
        No import duties are implemented.
        No VAT or excise duties are applied to imports.
     2. All Independent States
         Special system of non-commercial operations, including payments resulting from these
         operations.
\.-f{M                                          &
 ---pagebreak---                                            ANNEX II
                Intellectual, Industrial and Commercial Property conventions
                                    referred to in Article 15
    Î Community acts referred to in Article 15.
        - First Council Directive 89/104/EEC of 21 December 1988 to approximate the
          laws of the Member States relating to trade marks.
       ^ Council Directive 87/54/EEC of 16 December 1986 on the legal protection of
          topographies of semi-conductor products.
       - Council Directive 91/250/EBC of 14 May 1991 on the legal protection of
          computer programs.
       - Council Regulation (EEC) No 1768/92 of 18 June 1992 concerning the
          creation of a supplementary protection certificate for medicinal products.
       - Council Regulation (EEC) No 2081/92 of 14 July 1992 on the protection of
          geographical indications and designations of origin for agricultural products and
          foodstuffs.
       - Council Directive 93/83/EEC of 27 September 1993 on the coordination of
          certain rules concerning copyright and rights related to copyright applicable to
          satellite broadcasting and cable retransmission.
       - Council Directive 93/98/EEC of 29 October 1993 harmonizing the term of
          protection of copyright and certain related rights.
       - Council Directive 92/Î00/EEC of 19 November 1992 on rental right and
          lending right and on certain rights related to copyright in the field of intellectual
          property.
    2. If problems in the area of intellectual, industrial and commercial property as
       addressed in the above Community acts and affecting trading conditions were to
       occur, urgent consultations will be undertaken, at the request of the .Community
       or Georgia, with a view to reaching mutually satisfactory solutions.
                                                    2(
                                                  -re
\ *
 ---pagebreak---                   PROTOCOL
            ON MUTUAL ASSISTANCE
      BETWEEN ADMINISTRATIVE AUTHORITIES
             IN CUSTOMS MATTERS
Vs4h^                 &
 ---pagebreak---                                             ARTICLE 1
                                             Definitions
  For the purposes of this Protocol :
          a)   "customs legislation" shall mean any legal or regulatory provisions applicable
               in the territory of the Parties governing the import, export, transit of goods
               and their placing under any customs procedure, including measures of
               prohibition, restriction and control;
          b)   "applicant authority", shall mean a competent administrative authority which
               has been appointed by a Party for this purpose and which makes a request for
               assistance in customs matters;
          c)   "requested authority", shall mean a competent administrative authority which
               has been appointed by a Party for this purpose and which receives a request
               for assistance in customs matters;
          d)   "personal data", shall mean all information relating to an identified or
               identifiable individual.
                                            ARTICLE 2
                                                Scope
  1. The Parties shall assist each other, in the areas within their jurisdiction, in the manner
       and under the conditions laid down in this Protocol, in preventing, detecting and
       investigating operations in breach of customs legislation.
  2.   Assistance in customs matters, as provided for in this Protocol/shall apply to any
       administrative authority of the Parties which is competent for the application of this
       Protocol. It shall not prejudice the rules governing mutual assistance in criminal
       matters. Nor shall it cover information obtained under powers exercised at the
       request of the judicial authorities, unless those authorities so agree.
                                            ARTICLE 3
                                        Assistance on request
   1    At the request of the applicant authority, the requested authority shall furnish it with
       all relevant information which may enable it to ensure that customs legislation is
       correctly applied, including information regarding operations noted or planned which
       are or could be in breach of such legislation.
                                            'o*
  2.   At the request of the applicant authority, the requested authority shall inform it
       whether goods exported from the territory of one of the Parties have been properly
       imported into the territory of the other Party, specifying, where appropriate, the.
       customs procedure applied to the goods.
%
 ---pagebreak---         At the request of the applicant authority, the requested authority shall, within the
        framework of its laws, take the necessary steps to ensure that a special watch is kept
        on :
            (a)     natural or legal persons of whom there are reasonable grounds for believing
                    that they are breaching or have breached customs legislation;
            (b)     places where goods are stored in a way that gives grounds for suspecting
                    that they are intended to supply operations in breach of customs legislation;
            (c)     movements of goods notified as possibly giving rise to breaches of customs
          ~;~-      legislation;
            (d)     means of transport for which there are reasonable grounds for believing that
                    they have been, are or might be used in operations in breach of customs
                    legislation.
                                              ARTICLE 4
                                         Spontaneous assistance
   The Parties shall provide each other, as far as their national laws, rules and other legal
   instruments allow, with assistance without prior request if they consider that to be
   necessary for the correct application of customs legislation, particularly when they obtain
   information pertaining to :
            - operations which are or appear to be in breach of such legislation and which
                may be of interest to the other Party;
            - new means or methods employed in carrying out such operations;
             - goods known to be subject to breaches of customs legislation.
             - natural or legal persons of whom there are reasonable grounds for believing
                that they are or have been in breach of customs legislation
             - means of transport for which there are reasonable grounds for believing that
                they have been, are or might be used in operations in breach of customs
                 legislation
                                               ARTICLE S
                                          Delivery/Notification
   At the request of the applicant authority, the requested authority shall, in accordance with
   its legislation, take all necessary measures in order :
             - to deliver all documents,
             - to notify all decisions,
   falling within the scope of this Protocol to an addressee, residing or established in its
   territory. In such cases, Article 6(3) shall apply as far as the request itself is concerned.
                                                   ah
7)
 ---pagebreak---                                            ARTICLE 6
                          Form and substance of requests for assistance
   1. Requests pursuant to this Protocol shall be made in writing. They shall be
       accompanied by the documents necessary to enable compliance with the request.
       When required because of the urgency of the situation, oral requests may be
       accepted, but must be confirmed in writing immediately.
   2.  Requests pursuant to paragraph 1 shall include the following information :
          (a)     the applicant authority making the request;
          (b)     the measure requested;
          (c)     the object of and the reason for the request;
           (d)    the laws, rules and other legal elements involved;
           (e)    indications as exact and comprehensive as possible on the natural or legal
                 persons who are the target of the investigations;
           (f)    a summary of the relevant facts and of the enquiries already carried out,
                 except in cases provided for in Article 5.
   3.  Requests shall be submitted in an official language of the requested authority or in a
       language acceptable to that authority.
   4.  If a request does not meet the formal requirements, its correction or completion may
       be requested; precautionary measures may, however, be ordered.
                                           ARTICLE 7
                                      Execution of requests
    1. In order to comply with a request for assistance, the requested authority shall
       proceed, within the limits of its competence and available resources, as though it were
       acting on its own account or at the request of other authorities of that same Party, by
       supplying information already possessed, by carrying out appropriate enquiries or by
       arranging for them to be carried out? * This provision shall also ~ apply to the
       administrative department to which the request has been addressed by the requested
       authority when the latter cannot act on its own.
   2.  Requests for assistance shall be executed in accordance with the laws, rules and other
       legal instruments of the requested Party.
   3.  Duly authorized officials of a Party may, with the agreement of the other Party
       involved and subject to the conditions laid down by the latter, obtain from the offices
        of the requested authority or other authority for which the requested authority is
       responsible, information relating to operations which are or may be in breach of
       customs legislation which the applicant authority needs for the purposes of this
       Protocol.
%^4M                                              «rjf
 ---pagebreak---   4.  Officials of a Party may, with the agreement of the other Party involved and subject
      to the conditions laid down by the latter, be present at enquiries carried out in the
      tatter's territory.
                                            ARTICLE 8
                         Form in which information is to be communicated
  1. The requested authority shall communicate results of enquiries to the applicant
      authority in the form of documents, certified copies of documents, reports and the
      like.
  2.  The documents provided for in paragraph 1 may be replaced by computerized
      information produced in any form for the same purpose.
                                            ARTICLE 9
                          Exceptions to the obligation to provide assistance
   1. The Parties may refuse to give assistance as provided for in this Protocol, where to
       do would:
           (a)   be likely to prejudice the sovereignty of Georgia or that of a Member State
                 of the European Union which has been asked for assistance under this
                 Protocol; or
           (b)   be likely to prejudice public policy, security or other essential interests, in
                 particular in the cases referred to under Article 10 (2); or
           (c)   involve currency or tax regulations other than customs legislation; or
           (d)   violate an industrial, commercial or professional secret.
   2   Where the applicant authority requests assistance which it would itself be unable to
       provide if so asked, it shall draw attention to that fact in its request. It shall then be
       left to the requested authority to decide how to respond to such a request.
   3.  If assistance is refused, the decision and the reasons therefor must be notified to the
       applicant authority without delay.
                                            ARTICLE 10
                              Information exchange and confidentiality
   1. Any information communicated in whatsoever form pursuant to this Protocol shall be
       of a confidential or restricted nature, depending on the rules applicable in each of the
       Parties. It shall be covered by the obligation of official secrecy and shall enjoy the
       protection extended to like information under the relevant laws of the Party which
       received it and the corresponding provisions applying to the Community institutions.
%jrn                                              &                                               —p
 ---pagebreak---       Personal data may be exchanged only where the receiving Party undertakes to protect
      such data in at least an equivalent way to the one applicable to that particular case in
      the supplying Party.
      Information obtained shall be used solely for the purposes of this Protocol. Where
      one of the Parties requests the use of such information for other purposes, it shall ask
      for the prior written consent of the authority which furnished the information.
      Moreover, it shall be subject to any restrictions laid down by that authority.
      Paragraph 3 shall not impede the use of information in any judicial or administrative
      proceedings subsequently instituted for failure to comply with customs legislation.
      The competent authority which supplied that information shall be notified of such use.
      The Parties may, in their records of evidence, reports and testimonies and in
      proceedings and charges brought before the courts, use as evidence information
      obtained and documents consulted in accordance with the provisions of this Protocol.
                                           ARTICLE 11
                                       Experts and witnesses
       An official of a requested authority may be authorized to appear, within the
       limitations of the authorization granted, as an expert or witness in judicial or
       administrative proceedings regarding the matters covered by this Protocol in the
       jurisdiction of the other Party, and produce such objects, documents or authenticated
       copies thereof, as may be needed for the proceedings. The request for an appearance
       must indicate specifically on what matters and by virtue of what title or qualification
       the official will be questioned.
       The authorized official shall enjoy the protection guaranteed by existing legislation to
        officials of the applicant authority on its territory.
                                            ARTICLE 12
                                        Assistance expenses
  The Parties shall waive all claims on each other for the reimbursement of expenses
  incurred pursuant to this Protocol, except, as appropriate, for expenses to experts and
  witnesses and to interpreters and translators who are not public service employees.
                                                 &
V
 ---pagebreak---                                         ARTICLE 13
                                         Application
   1. The application of this Protocol shall be entrusted to the central customs authorities
      of Georgia on the one hand and the competent services of the European Commission
      and, where appropriate, the customs authorities of the Member States of the
      European Union on the other. They shall decide on all practical measures and
      arrangements necessary for its application, taking into consideration the rules in force
      in~the field of data protection. They may recommend to the competent bodies
      amendments which they consider should be made to this Protocol.
   2. The Parties shall consult each other and subsequently keep each other informed of the
      detailed rules of implementation which are adopted in accordance with the provisions
      of this Protocol.
                                         ARTICLE 14
                                       Complementarity
      Without prejudice to Article 10, any agreements on mutual assistance which have
      been concluded between one or more Member States of the European Union and
      Georgia shall not prejudice Community provisions governing the communication
      between the competent services of the Commission and the customs authorities of the
      Member States of any information obtained in customs matters which could be of
       Community interest.
  f^o                                         JZ6
V>
 ---pagebreak---                       JOINT DECLARATION CONCERNING TITLE II
    All references to the GATT are to the text of the GATT as modified in 1994.
                                               -;
                                                  2*1
%.<T*
 ---pagebreak---                JOINT DECLARATION CONCERNING ARTICLE 7
  The Community and Georgia declare that the text of the safeguard clause does not grant
  GATT safeguard treatment.
V
                                                                                         V\
 ---pagebreak---                   JOINT DECLARATION CONCERNING ARTICLE 8
  Until Georgia accedes to the WTO, the Parties shall hold consultations in the Joint
  Committee on their import tariff policies, including changes in tariff protection. In
  particular, such consultations shall be offered prior to the increase of tariff protection.
                                                -2<
                                                   3/
V•v
 ---pagebreak---                  JOINT DECLARATION CONCERNING ARTICLE 15
  Within the limits of their respective competences, the Parties agree that for the purpose
  of the Agreement, intellectual, industrial and commercial property includes in particular
  copyright, including the copyright in computer programs, and neighbouring rights, the
  rights relating to patents, industrial designs, geographical indications, including
  appellations of origin, trademarks and service marks, topographies of integrated circuits
  as well as protection against unfair competition as referred to in Article 10 bis of the Paris
  Convention for the protection of Industrial Property and protection of undisclosed
  information on know-how.
                                               4L
I
 ---pagebreak---                  JOINT DECLARATION CONCERNING ARTICLE 28
1. The Parties agree, for the purpose of its correct interpretation and its practical
   application, that the term "cases of special urgency" included in Article 28 of the
   Agreement means cases of material breach of the Agreement by one of the Parties. A
   material breach of the Agreement consists in
a)^" repudiation of the Agreement not sanctioned by the general rules of international law
or
b)    violation of the essential elements of the Agreement set out in Article 1.
2. The parties agree that the "appropriate measures" referred to in Article 28 are
    measures taken in accordance with international law. If a party takes a measure in a
    case of special urgency as provided for under Article 28, the other party may avail
    itself of the procedure relating to settlement of disputes.
                                               J3
                                              JZ
 ---pagebreak---    Unilateral declaration by Georgia concerning the protection of intellectual,
                         industrial and commercial property rights
Georgia declares that :
1. By the end of the fifth year after entry into force of the Agreement, Georgia
   shall accede to the multilateral conventions on intellectual, industrial and
   commercial property rights referred to in Paragraph 2 of this declaration to
   which Member States of the Community are parties or which are de facto
    applied by Member States according to the relevant provisions contained in these
    conventions.
2. Paragraph 1 of this declaration concerns the following multilateral conventions:
- International Convention for the Protection of Performers, Producers of
    Phonograms and Broadcasting Organizations (Rome, 1961);
- Protocol relating to the Madrid Agreement concerning the International
    Registration of Marks (Madrid, 1989);
- Nice Agreement concerning the International Classification of Goods and
    Services for the purposes of the Registration of Marks (Geneva 1977, amended
     1979);
- Budapest Treaty on the International Recognition of the Deposit of Micro-
    organisms for the purposes of Patent Procedures (1977, modified in 1980);
- International Convention for the Protection of New Varieties of Plants (UPOV)
    (Geneva Act, 1991).
3 Georgia confirm the importance it attaches to the obligations arising from the
    following multilateral conventions:
    - Berne Convention for the Protection of Literary and Artistic Works (Paris
       Act, 1971);
    - Paris Convention for the Protection of Industrial Property (Stockholm Act,
       1967 and amended in 1979);
    - Madrid Agreement concerning the International Registration of Marks
       (Stockholm Act, 1967, and amended in 1979);
     - Patent Cooperation Treaty (Washington 1970, amended and modified in 1979
       and 1984);
 4. From the entry into force of this Agreement Georgia shall grant to Community
     companies and nationals, in respect of the recognition and protection of
     intellectual, industrial and commercial property, treatment no less favourable than
     that granted by it to any third country under bilateral agreements.
 5. The provisions of paragraph 4 shall not apply to advantages granted by Georgia
     to any third country on an effective reciprocal basis or to advantages granted by
     Georgia to another country of the former USSR.
                                               -26
 ---pagebreak---                                                                    KSN 0254-1475
                                                           COM(96) 322 final
                                             DOCUMENTS
                                                                         11  §2
                                    Catalogue number : CB-C096-351-EN-C
                                                             ISBN 92-78-06874-8
Office for Official Publications of the European Communities
L-2985 Luxembourg