CELEX: 51992PC0114
Language: en
Date: 1992-04-03
Title: Proposal for a COUNCIL DECISION on the conclusion of an interim Agreement on trade and customs union between the European Economic Community and the Republic of San Marino

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     C0M(92)114  final
                                                     Brussels, 3  ApriI 1992
                                          Proposal for a
                                         COUNCIL PECISION
                          on the conclusion of an interim Agreement
                                  on trade and customs union
                           between the European Economic Community
SifejisiiJiV;' v                and the Republic of San Marino
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                                  (presented by the Commission)
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                        EXPLANATORY MEMORANDUM
        On the 16 December 1991, the Community and its Member States and
the Government of the Republic of San Marino signed a cooperation and
customs union agreement between the EBC and San Marino.
        Given the mixed nature of this agreement, it needs to be submitted
for ratification by National Parliament, which will hold up its entry into
force. The Republic of San Marino therefore wishes to conclude an interim
agreement which can ensure the rapid implementation of the trade provisions
of the agreement signed last 16 December.
/Au/ads/BH/SMAC/AOCl-a*
 ---pagebreak---                                 Proposal for a
                               COUNCIL DECISION
                  on the conclusion of an interim Agreement
                          on trade and customs union
                   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,
Considering that while waiting for the entry into force of the cooperation
and customs union agreement signed in Brussels on the 16th December 1991
between the European Economic Community and the Republic of San Marino, the
Community should approve the interim agreement on trade and customs union;
HAS DECIDED AS FOLLOWS:
                                  Article 1
The interim Agreement on trade and customs union between the European
Economic Community and the Republic of San Marino, including the
declaration it incorporates, is hereby approved on behalf of the Community.
The texts of the interim agreement are attached to this Decision.
                                  Art icle 2
The President of the Council shall give the notification provided for in
Article 19 of the Agreement. 1
Done at Brussels,
                                                 For the Counci
                                                 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.
 ---pagebreak---                                    - 2 -
THE CDDNCIL OF THE EUROPEAN OOMMONITXES,
                                        of the one hand,
THE REPUBLIC OF SAN MARINO,
                                        of the other hand,
CONSIDERING the agreement on cooperation and customs union signed on the
16th of December 1991 between the European Community and the Republic of
San Marino;
CONSIDERING THAT, given the fact that this agreement requires, besides
approval by the Community, the ratification by the National Parliaments,
which shall delay its enforcement;
CONSIDERING the importance that the Parties attach to the strengthening and
to the development of their relations, notably in the commercial and
economic field;
CONSIDERING that the commercial and customs provisions of this Agreement
should be rapidly implemented by means of a temporary agreement;
HAVE AGREE) AS KXIONS:
                                  TITLE I
                               CUSTOMS UNION
                                 Article 1
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.
                                 Article 2
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 iinport 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.
/Au/ads/BH/SMAC/AccI-EN
                                                                            V
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                                  Article 5
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 4
1. The Contracting Parties shall refrain from introducing themselves any
new customs duties on imports or exports or charges having equivalent
effect.
2. The Republic of 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 5
1. Trade between the Ctammunity and San Marino sha.11 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, the Republic
of San Marino undertakes to introduce, within six months of the entry into
force of this 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 Oammunity, with the
        exception of the Kingdom of Spain and the Portuguese Republic,
        shall admit imports from the Republic of 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 the Republic 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,
the Republic of San Marino undertakes to adopt Ganraunity veterinary, plant
health and quality regulations where necessary for the proper functioning
of the Agreement.
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                                   Article 6
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 cammercial 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,
wo^ks of art, scientific or teaching materials offered to the San Marino
go/ernment, inrdgnias, medals, stamps, printed matter and other similar
obir-ots or paper destined for use by the government shall be exempt from
customs duties.
                                   Article 7
   id )  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 Marl no shall authorize the Canmunity,
         acting on behalf of and for San Marino, to carry out customs
         clearaw^e formalities, in particular release for free circulation
         of products sent from third countries to San Marino. Such
         formalities will effected by the Community customs offices listed
         in the Annex.
         At the end of this period, and under Article 16, San Marino may
         exercise its right to carry out customs clearance formalities,
         following agreement of the Contracting Parties.
2. Wiere 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.
/Au/ads/BH/SMAC/AccI-EN
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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 paragraph 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 exports to third
countries.
                                 Article 8
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 9
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 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 10
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 si mi 1 ar 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.
/Au/ads/BH/SMAC/AocI-EN
                                                                            •i
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                                  Article 11
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 cnjcumstances require immediate action making prior
examination Impossible, the Contracting Party cxDncerned 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 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 12
1. In addition to the cooperation provided for in Article 13(8), the
admi ni strative 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.
2. Procedures for the application of paragraph 1 shall be laid down by the
Cooperation Committee.
                                   TITLE II
                         GENERAL AND FINAL PROVISIONS
                                  Article 15
1. A Cooperation Committee is hereby set up with responsibility for
administering the Agreement and ensuring that it is properly implemented.
/Au/ads/BH/SMAC/AocI-EN
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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 linplementation 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 ccmposed, 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 accordanoe 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 11, 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 2 and 3, taking as a basis the
methods adopted by the Community in respect of trade between the Member
States.
                                 Article 14
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.
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                                   Article 15
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 (xaonpanies;
-   the arrange. 3nts applied by the Community in respect of San Marino may
   not give rir. to any discrimination between San Marino nationals or
   companies.
                                  Article 16
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 17
Either Contracting Party may denounce this Agreement by notifying the other
Contracting Party in writing. In that case, the Agreement sha.11 cease to
have effect six months after the date of such notification.
                                  Article 18
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 19
This Agreement will be approved by the Contracting Parties in accordance
with their own procedures.
This Agreement shall enter into force on the first day of the second month
following notification that procedures referred to in the first
subparagraph have been complied with.
It will cease being applicable once the cooperation and customs union
agreement between the European Economic Community and the Republic San
Marino comes into operation.
/Au/ads/BH/SMAC/AccI-EN
                                                                            /)€•
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                                Article 20
The Annex to this Agreement shall form an integral part thereof.
                                Article 21
   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.
/Au/ads/BH/SMAC/AccI-EN
 ---pagebreak---                                      10
                                                       ANNEX
List of customs offices referred to in Article 7(1)(a)
LIVORNO
RAVENNA
RIMINI
PORLI (CESENA)
TRIESTE
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                        DECLARATION Ef 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;
/Au/ads/HH/SMAC/AccI-EN
 ---pagebreak---  ---pagebreak---                                                                      ISSN 0254-147
                                                              COM(92)114fina
                                                      DOCUMENTS
EN                                                                         1102
                                 Catalogue number: CB-CO-92-145-EN-C
                                                             ISBN 92-77-42738-8
Office for Official Publications of the European Communities
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