CELEX: 51991PC0490
Language: en
Date: 1991-12-05
Title: Proposal for a COUNCIL DECISION concerning the conclusion of an Agreement in the form of an Exchange of Letters relating to the amendment of the Convention of 20 May 1987 on a common transit procedure

COMMISSION OF THE EUROPEAN COMVIUNITIES
                                    COM(91)490 final
                                    Brussels, 5 December 1991
                         Proposal for a,
                        COUNCIL DECISION
          concerning the conclusion of an Agreement
            In the form of an Exchange of Letters
         relating to the amendment of the Convention
        of 20 May 1987 on a common transit procedure
                  (presented by the Commission)
 ---pagebreak---                                          -a
                             EXPLANATORY MEMORANDUM
Subject :  "      proposal for a Council Decision concerning the conclusion
           of an agreement in the form of an exchange of letters in respect
           of  recommandation No 1/91   of  the EEC-EFTA  Joint Committee on
           common transit relating to the amendment of the Convention of the
           20th May 1987 on a common transit procedure.
1.    The Convention of the 20th May 1987 put into effect most of the rules
      of the Community Transit System which relate to trade between the
      Community    and   the  EFTA  countries  and  between  those  countries
      themselves.
2.     In Regulation (EEC) No 2726/90 of 17.9.90 (OJ No L 262 of 26.9.1990),
      the Council    introduced to these rules the amendments necessary for
      the realisation of the internal market on 1.1.1993.
3.     It is now, therefore, considered appropriate to amend the Convention
       in order to take account of these reforms.
4.    Such is the objective of Recommendation No 1/91 which the EEC-EFTA-
      Joint Committee adopted formally at its forth meeting which was held
       in Helsinki on 19.9.1991.
5.     It is essential that this Recommendation 1/91 be accepted by means of
       an agreement concluded in the form of an exchange of letters between
       the contracting parties to the Convention.
6.     This agreement   must   be approved on behalf of   the Community  by a
       Council decision, the proposal for which is attached.
 ---pagebreak---                           -*  -
                     Proposal for a Council Decision
                concerning the conclusion of an Agreement
                  In the form of an Exchange of Letters
               relating to the amendment of the Convention
              of 20 May 1987 on a common transit procedure
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic
Community, and in particular Article 113 thereof,
Having regard to the proposal from the Commission,
Whereas Article 15(2) of the Convention between the European Economic
Community, the Republic of Austria, the Republic of Finland, the
Republic of Iceland, the Kingdom of Norway, the Kingdom of Sweden and
the Swiss Confederation on a common transit procedure1 empowers the
Joint Committee set up by that Convention to make recommendations for
amendments to the Convention;
Whereas the Convention has been amended to take account of recent
changes to Community transit rules forming part of the reforms to that
procedure in the light of the completion of the internal market by
1 January 1993;
Whereas the amendments to the Convention are set out in the Joint
Committee's Recommendation No 1/91;   whereas the Agreement in the form
of an Exchange of Letters relating to that recommendation should be
approved;
   1  0J No L 226, 13.8.1987, p. 1.
 ---pagebreak---                          -A
HAS DECIDED AS FOLLOWS:
                               Article 1
The Agreement in the form of an Exchange of Letters relating to the
amendment of the Convention of 20 May 1987 on a common transit
procedure is hereby approved on behalf of the Community.
The text of the Agreement is attached to this Decision.
                               Article 2
The President of the Council is hereby authorized to designate the
person empowered to sign the Agreement in order to bind the Community
Done at Brussels,
                                   For the CounciI
                                   The President
 ---pagebreak---                           - r-
                                AGREEMENT
in the form of an Exchange of Letters relating to the amendment of the
Convention between the European Economic Community, the Republic of
Austria, the Republic of Finland, the Republic of Iceland, the Kingdom
of Norway, the Kingdom of Sweden and the Swiss Confederation on a
common transit procedure
Sir,
In its Recommendation No 1/91 of 19 September 1991, the EEC-EFTA Joint
Committee on common transit proposed a number of amendments to the
EEC-EFTA Convention of 20 May 1987 on a common transit procedure.    The
proposed amendments are set out in the Annex.
 I have the honour to confirm that the Community is in agreement with
those amendments and I propose that, subject to any change which may be
made, they come into force on 1 January 1993.   I should be obliged if
you would confirm that the Government of ... is in agreement with the
amendments and the proposed date on which they are to enter into force.
Please accept, Sir, the assurance of my highest consideration.
                                            On behalf of the Council
                                            of the European Communities
 ---pagebreak---                          -6-
                                           Brussels,
Sir,
I have the honour to acknowledge receipt of your letter which reads as
fo11ows:
"In its Recommendation No 1/91 of 19 September 1991, the EEC-EFTA Joint
Committee on common transit proposed a number of amendments to the
EEC-EFTA Convention of 20 May 1987 on a common transit procedure.   The
proposed amendments are set out in the Annex.
I have the honour to confirm that the Community is in agreement with
those amendments and I propose that, subject to any change which may be
made, they come into force on 1 January 1993.   I should be obliged if
you would confirm that the Government of ... is in agreement with the
amendments and the proposed date on which they are to enter into
force."
I have the honour to confirm that the Government of ... is in agreement
with the contents of your letter and on the proposed date on which the
amendments are to enter into force.
Please accept, Sir, the assurance of my highest consideration.
                                           For the Government
 ---pagebreak---                                           -f-
                                        Recommendation No 1/91
               of the EEC-EFTA Joint Committee on Common Transit
                                    of
                       for the amendment of the Convention
                                     of 20 May 1987
                            on a common transit procedure
THE JOINT COMMITTEE,
Having   regard   to   the    Convention    of   20 May 1987    on   a   common    transit
procedure, and in particular Article 15(2)(a) thereof,
Whereas the Convention of the 20 May 1987 gave effect                to the Commun icty
Transit   rules on trade between the Community           and the EFTA countries and
between those countries themselves;
Whereas substantial changes have recently been made to the basic provisions
of the Commmunity Transit system in operation within the European Economic
Community   with   a  view     to   the  achievement    of   the   internal     market  on
1.1.1993;    whereas    steps     should   accordingly    be   taken     to   modify   the
Convent ion;
Whereas   it is considered necessary to arrange for the simultaneous entry
into force of     these modifications and of          the changes      in the Community
Transit system;
HEREBY RECOMMENDS that the Contracting Parties to the Convention:
       amend   it, with effect from 1.1.1993 along the lines set out                in the
       proposal annexed to this Recommendation,
       review, before 1 November 1992, this Recommendation on the basis                 of
       a report    from   the Commission      of  the European     Communities     on  the
       harmonization     of   provisions    on   the   achievement     of   the   internal
       market.
 ---pagebreak---                                      - » -
      inform each other, by means of an exchange of      letters, of their
      acceptance of this Recommendation.
Done at Helsinki, 19 September 1991.       For the Joint Committee
                                                     The Chairman
 ---pagebreak---                                        -y-
                     Proposed  amendment to the Convention
                   between the European Economic Community,
 the Republic of Austria, the Republic of Finland, the Republic of Iceland,
  the Kingdom of Norway, the Kingdom of Sweden and the Swiss Confederation
                         on a common transit procedure
The Convention between the European Economic Community,       the Republic of
Austria, the Republic of Finland, the Republic of Iceland, the Kingdom of
Norway, the Kingdom of Sweden and the Swiss Confederation        is amended as
fol lows:
A.     Article 2 is replaced by the following text: -
                                   "Article 2
1.     The common transit procedure shall hereinafter be described as the T1
       procedure or the T2 procedure, as the case may be.
2.     The T1 procedure may be applied to any goods carried       in accordance
       with Article 1, paragraph 1.
3.     The T2 procedure shall    apply  to goods carried   in accordance with
       Article 1, paragraph 1:
       (a) in the Community:
           only when the goods are Community goods.     By   "Community goods"
           is meant goods:
               entirely obtained   in the customs territory of the Community
               without   the  addition  of  goods  from   third  countries   or
               territories which are not part of the customs territory of
               the Community.
 ---pagebreak---                                 -40-
            from countries or territories not forming part of the customs
            territory of the Community which have been released for free
            circulation in a Member State.
            obtained in the customs territory of the Community from goods
            referred to either exclusively in the second indent or in the
            first and second indents.
            However, without prejudice to this Convention, or to other
            Agreements concluded by the Community, goods which, although
            fulfilling the conditions laid down in one of the preceding
            three indents, are reintroduced into the customs territory of
            the Community  after being exported outside that     territory
            shall be deemed not to be Community goods.
   (b) in an EFTA country:
       only when the goods have arrived in that EFTA country under the
       T2 procedure and are reconsigned under the special       conditions
        laid down in Article 9 be Iow.
4. The special conditions laid down     in this Convention in respect of
   placing goods under the T2 procedure shall apply also to the issue of
   documents certifying the Community status of goods and goods covered
   by such a document shall be treated in the same way as goods carried
   under   the T2 procedure, except    that  the document  certifying  the
   Community status of the goods need not accompany them."
 ---pagebreak---                                 -41-
B. Article 3 is replaced by the following text:-
                               "ArticlQ 3
1. For the purposes of this Convention, the term:
   (a) "transit" shall mean a procedure under which goods are carried
        under the control of the competent authorities from one office of
        a Contracting Party to another office of the same Contracting
        Party or   that of another   Contracting Party over at   least one
        frontier;
   (b) "country", shall mean any EFTA country and any Member State of
        the Community;
   (c) "third country" shall mean any State which      is neither an EFTA
        country nor a Member State of the Community.
2.  In the application of the rules laid down in this Convention for the
   T1 or T2 procedure, the EFTA countries and the Community        and its
   Member States shall have the same rights and obligations."
C. Article 4 is replaced by the following text:-
                               "Article 4
1. This Convention shall be without prejudice to the application of any
   other international agreement concerning a transit procedure, subject
   to any limitations to such application in respect of the carriage of
   goods   from  one   point in the   Community  to another  point  in the
   Community and to any limitations on the issue of documents certifying
   the Community status of goods.
 ---pagebreak---                                    -41-
2.    This Convention shall be without prejudice also to:
      (a) movements of goods under a temporary admission procedure;
          and
      (b) agreements concerning frontier traffic."
D.    Article 6 is replaced by the following text:-
                                  "Article 6
Provided that the implementation of any measures applicable to the goods is
ensured, countries may, within the T1 or T2 procedure,        introduce among
themselves simplified procedures, by means of bilateral      or multilateral
agreements, which   shall  conform  to criteria   to be  laid   down  , where
necessary, in Appendix II and which shall be applicable to certain types of
traffic or to designated undertakings.
Such agreements shall be communicated     to the Commission of the European
Communities and to the other countries."
                  Implementation of the transit procedure
E.    Article 7 is replaced by the following text:-
                                  "Article 7
1.    Subject to any special provisions of this Convention, the competent
      offices of the EFTA countries are empowered to assume the functions
      of offices of departure, offices of transit, offices of destination
      and offices of guarantee.
2.    The competent offices of the Member States of the Community shall be
      empowered to issue T1 or T2 documents for transit to an office of
      destination  situated   in an  EFTA  country. Subject   to any   special
      provisions of this Convention, they shall also be empowered to issue,
      for goods consigned    to an EFTA country, documents certifying      the
      Community status of those goods.
 ---pagebreak---                                   -43-
3. Where several consignments of goods are grouped together and loaded
   on a single means of transport, within the meaning of Article 12,
   paragraph 2, of Appendix I, and are dispatched as a consolidated load
   by one principal   in a single T1 or T2 operation, from one office of
   departure to one office of destination for delivery to one consignee,
   a Contracting Party may require that those consignments shall, save
   in exceptional, duly Justified cases, be included in one single T1 or
   T2 declaration with the corresponding loading lists.
4. Notwithstanding the requirement for the Community status of goods to
   be certified where applicable, a person completing export formalities
   at the frontier customs office of a Contracting Party shall not be
   required  to   place  the   goods   consigned   under  the   T1  or  the  T2
   procedure,   irrespective of    the   customs  procedure   under  which  the
   goods will be placed at the neighbouring frontier customs office.
5. Notwithstanding the requirement for the Community status of goods to
   be certified where applicable, the frontier         customs office of the
   Contracting Party where export formalities are completed may refuse
   to place the goods under the T1 or T2 procedure if that procedure is
   to end at the neighbouring frontier customs office."
F. Article 9 is replaced by the following text:-
                                 "Article 9
1. Goods which are brought     into an EFTA country under the T2 procedure
   and may be reconsigned under that procedure shall remain at all times
   under  the control   of   the customs    authorities of    that  country  to
   ensure that there is no change in their identity or state.
 ---pagebreak---                                   -4h-
2. Where such goods are reconsigned from an EFTA country after having
   been placed, in that EFTA country, under a customs procedure other
   than a transit or a warehousing procedure, no T2 procedure may be
   applled.
   This provision shall, however, not apply to goods which are admitted
   temporarily  to be shown at      an exhibition, fair or similar public
   display and which have received no treatment other than that needed
   for their preservation     in their original state or for splitting up
   consignments.
3. Where goods are reconsigned from an EFTA country after storage under
   a warehousing procedure, the T2 procedure may be applied only on the
   following conditions:
       that the goods have not been warehoused over a period exceeding
       five years; however, as regards goods falling within Chapters 1
       to 24 of    the Nomenclature     for the Classification of Goods in
       Customs   Tariffs   (International     Convention  on    the  Harmonized
       Commodity Description and Coding System of 14 June 1983), that
       period shall be limited to six months,
       that  the goods    have   been   stored   in special   spaces   and  have
       received   no    treatment    other   than   that   needed    for.  their
       preservation    in  their   original    state,  or   for   splitting   up
       consignments without replacing the packaging;
       that any treatment has taken place under customs supervision.
 ---pagebreak---                              -49-
Any T2 document or any document certifying the Community status of
goods issued by a competent office of an EFTA country shall bear a
reference to the corresponding T2 document or document certifying the
Community status of goods under which the goods arrived in that EFTA
country   and  shall   include  all    special   endorsements appearing
thereon."
Article 10 is replaced by the following text:-
                           "Article 10
Except where otherwise provided for in paragraph 2 below or      in the
Appendices, any T1 or T2 operation shall be covered by a guarantee
valid for all Contracting Parties involved in that operation.
The provisions of paragraph 1 shall not prejudice the right:
(a) of  Contracting  Parties   to   agree   among  themselves that  the
    guarantee shall be waived for T1 or T2 operations involving only
    their territories;
(b) of a Contracting Party not to require a guarantee for the part of
    a T1 or T2 operation between the office of departure and the
    first office of transit.
 ---pagebreak---                                -u-
For   the purposes of    the  flat  rate guarantee as provided  for  in
Appendices   I and   II, the   "ecu" means the total of  the  following
amounts:
     0,6242       German mark
     0,08784       Pound sterIing
     1,332         French francs
   151,8           Italian lira
     0,2198        Dutch guiIder
     3,301         Belgian francs
     0,130         Luxembourg franc
     0,1976        Danish krone
     0,008552      Irish pound
     1,440         Greek drachmas
     6,885         Spanish pesetas
     1,393         Portuguese escudos
The value of the ecu in a given currency shall be equal to the sum of
the exchange values in that currency of the amounts set out      in the
first sub-paragraph."
Article 11 is replaced by the following text:-
                             "Article 11
As a general rule, identification of the goods shall be ensured by
sealing.
The following shall be sealed:
 (a) the space containing the goods, when the means of transport has
     already been approved under other regulations or recognized by
     the office of departure as suitable for sealing;
(b) each individual package in other cases.
 ---pagebreak---                                     -4>
3. Means of    transport    may  be   recognized    as suitable     for   sealing on
   condition that:
   (a) seals can be simply and effectively affixed to them;
   (b) they    are   so   constructed    that    no   goods   can   be   removed    or
        introduced without leaving visible traces of tampering or without
        breaking the seals;
   (c) they contain no concealed spaces where goods may be hidden;
   (d) the   spaces    reserved   for   the   load   are  readily    accessible    for
        inspection by the competent authorities.
4. The office of departure may dispense with sealing              if, having regard
   to other possible measures for identification, the description of the
   goods in the T1 or T2 declaration or in the supplementary documents
   makes them readily identifiable."
I. In   the  German    version,    at  Article     12/1   (a)   and   (b)   the   word
   "GrenzUbergangsstelle"           is       replaced         by       the        word
   "DurchgangszolIstelle".
J. Article 13 is replaced by the following text:-
                                  "Article 13
1. The competent    authorities of the countries concerned shall furnish
   each   other   with   any   information    at   their   disposal    which    is of
   importance    in   order   to   verify    the   proper    application     of   this
   Convent ion.
2. Where necessary, the competent authorities of the countries concerned
   shall communicate      to one another all findings, documents, reports,
   records    of   proceedings     and    information     relating    to    transport
   operations carried out under        the T1 or T2 procedure as well as to
   irregularities or infringements in connection with such operations.
 ---pagebreak---                                  -4e-
   Furthermore, where necessary, they shall communicate to one another
   all findings relating to goods in respect of which mutual assistance
   is provided for and which have been subject to a customs warehousing
   procedure.
   Where   irregularities or   infringements are suspected       in connection
   with goods which have been brought        into one country      from another
   country or have passed through a country or have been stored under a
   warehousing   procedure, the competent     authorities of     the countries
   concerned shall on request communicate to one another all information
   concerning:
   (a) the conditions under which those goods were carried:
            whatever the way in which they were reconsigned, where they
            arrived   in the country    to which    the request    is addressed
            under cover of a T1 or T2 document or a document certifying
            the Community status of the goods, or
            whatever   the way   in which   they   arrived,   where    they were
            reconsigned   from   the   country   to   which   the    request   is
            addressed under cover of a T1 or T2 document or a document
            certifying the Community status of the goods;
    (b) the conditions of    any   warehousing   of   those  goods where     they
        arrived  in the country to which the request        is addressed under
        cover of a T2 document or a document certifying           the Community
        status of   the goods or where they were reconsigned           from that
        country under cover of a T2 document or a document certifying the
        Community status of the goods.
4. Any request made under paragraphs 1 to 3 shall specify the case or
    cases to which it refers.
 ---pagebreak---                                 --ff-
5. If the competent authority of a country requests assistance which it
   would not be able to give    if requested,   it will   draw attention to
   that  fact in the request. Compliance with     such a request     will  be
   within the discretion of the competent authority to whom the request
   is made.
6. Information obtained  in accordance with paragraphs 1 to 3 shall be
   used solely for the purpose of this Convention and shall be accorded
   the  same  protection  by  a   receiving  country   as    is  afforded  to
   information of  like nature under   the national   law of that    country.
   Such information may be used for other purposes only with the written
   consent of the competent authority which furnished      it and subject to
   any restrictions laid down by that authority."
 ---pagebreak---                                            lo-
                             COMMISSION STATEMENT CONCERNING
                            IMPACT ON ECONOMIC ACTIVITY
Subject:           proposal for a Council decision concerning the conclusion
           of   an   agreement   by  an   exchange   of    letters   relating   to  an
           amendment to the Convention of 20 May 1987 on Common transit.
      The agreement by exchange of         letters which    is the subject of this
      proposed Council decision relates to the acceptance of Recommendation
      1/91   adopted by the Joint EEC/EFTA Committee on Common transit on
      19.9.91. This Recommendation amends the EEC/EFTA Convention on Common
      transit    in such a way as to make the necessary amendments following
      the recently introduced modifications to the Community Transit regime
       in the    light of the completion of       the   internal market on 1.1.93,
      which involves an area without        internal borders and within which in
      particular the free circulation of goods is guaranteed.
       It should be noted that the said Convention does constitute in itself
      a measure of harmonisation and simplification            in trade between the
      Community and the EFTA countries and is intended to promote economic
       activity between the Parties.
       This   agreement    on  Recommendation    1/91   follows    the  same   line  in
       improving     EEC/EFTA   trade   procedures    and   will   have   therefore   a
       positive economic impact.
 ---pagebreak---                                                                      BSN 0254-1475
                                                              COM(91) 490 final
                                                      DOCUMENTS
EN                                                                             07
                                Catalogue number : CB-CO-91-545-EN-C
                                                             ISBN 92-77-78116-5
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