Document ID: 32002R1346

Council Regulation (EC) No 1346/2002
of 25 July 2002
amending Regulation (EC) No 2465/96 concerning the interruption of economic and financial relations between the European Community and Iraq
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular Articles 60 and 301 thereof,
Having regard to Council Common Position 2002/599/CFSP of 22 July 2002 supplementing Common Position 96/741/CFSP concerning the derogations from the embargo with regard to Iraq(1),
Having regard to the proposal from the Commission,
Whereas:
(1) Council Regulation (EC) No 2465/96 of 17 December 1996 concerning the interruption of economic and financial relations between the European Community and Iraq(2) prohibits, with certain exceptions, the export to Iraq of all commodities and products originating in, coming from, or in transit through the Community. This export regime was imposed further to Resolutions 661(1990), 687(1991) and 986(1995) of the Security Council of the United Nations.
(2) Pursuant to Resolution 986(1995) an escrow account has been established for the financing of certain exports to Iraq. On 14 May 2002, the Security Council of the United Nations adopted Resolution 1409(2002) laying down new procedures and rules for approval of exports to Iraq which will be financed from this escrow account. These procedures and rules have been applicable since 30 May 2002.
(3) As a result, exports for which an application for financing from the escrow account is made will be checked against the list of military commodities and products and against the revised Goods Review List (GRL) which the Security Council also adopted. The GRL comprises goods, services and technologies which can be used for civil as well as military purposes (dual-use goods).
(4) If the exports are not included in these lists, the Office of the Iraq Programme (OIP) will confirm in writing to the State that sent the application, that the application does not contain any commodity or product included in these lists. If such confirmation is obtained, the export is eligible for payment from the escrow account. However, such payment is subject to meeting the conditions of paragraph 8(a) of Resolution 986(1995), which provides that the export must be at the request of the Government of Iraq, that Iraq effectively guarantees equitable distribution of the exported goods on the basis of a plan submitted to, and approved by, the Secretary-General and that the Secretary-General receives authenticated confirmation that the exported goods have arrived in Iraq.
(5) If an application contains items that are on the revised GRL, the application will be referred to the Committee established by Resolution 661(1990). The exports are not permitted unless the Committee gives its approval. In this regard, it should be noted that the Committee may give its approval for exports of commodities and products included in the revised GRL. If the application contains military goods, that part of the application will be considered ineligible for approval.
(6) Applications for financing of exports to Iraq from the escrow account have to be made to the OIP through the diplomatic missions of States and international organisations accredited to the United Nations in the format prescribed by the Security Council.
(7) It is appropriate that competent authorities in the Community promptly confirm in writing to the person, entity or body at whose request the application was made, any confirmation they receive from the OIP and any approval they receive from the said Committee. Such confirmation constitutes sufficient evidence that the export is not in breach of Regulation (EC) No 2465/96 and that the Committee has approved the export or that it does not need approval by the Committee. However, that confirmation does not constitute an export authorisation required in accordance with applicable Community legislation, and in particular Council Regulation (EC) No 1334/2000 of 22 June 2000 setting up a Community regime for the control of exports of dual-use items and technology(3). For foodstuffs, the competent authority should confirm in writing that the export or transit has been notified to the Committee pursuant to Resolution 661(1990).
(8) Regulation (EC) No 2465/96 should be amended in order to reflect the fact that exports are not in violation of that Regulation if, in accordance with the new procedures and rules, it has been confirmed that they have been approved by the Committee or that they do not need approval from the Committee.
(9) Experience in implementing Regulation (EC) No 2465/96 has shown that clarification is needed in particular on administrative procedures,
HAS ADOPTED THIS REGULATION:
Article 1
Regulation (EC) No 2465/96 is hereby amended as follows:
1. the following recital shall be added: "Whereas this Regulation is only intended to implement the relevant resolutions of the UN Security Council,";
2. Article 2 shall be replaced by the following: "Article 2
1. The prohibitions in points 1 and 5 of Article 1 shall not apply to the introduction into the territory of the Community of:
(a) commodities or products which originate in, or come from, Iraq and were exported before 7 August 1990;
(b) petroleum and petroleum products originating in Iraq, on condition that there is evidence in writing that the Committee established by Resolution 661(1990) of the Security Council of the United Nations (hereinafter referred to as the 'Committee') has given its approval for the purchase of the commodities or products concerned, and provided that payment of the full price is made to the escrow account established by the Secretary-General of the United Nations pursuant to Resolution 986(1995).
2. The prohibitions in points 2 and 5 of Article 1 shall not apply to the export from, or transit through, the Community to Iraq of:
(a) products intended strictly for medical purposes, on condition that a competent authority listed in Annex I has given an authorisation in writing;
(b) foodstuffs, on condition that a competent authority listed in Annex I has confirmed in writing that the export or transit has been notified to the Committee;
(c) materials and supplies for essential civilian needs, on condition that a competent authority listed in Annex I has confirmed in writing that the export or transit has been approved by the Committee;
(d) parts and equipment which are essential for the safe operation of the Kirkuk-Yumurtalik pipeline system in Iraq, on condition that a competent authority listed in Annex I has confirmed in writing that the export or transit has been approved by the Committee, and provided that the conditions for payment determined by the Committee are fulfilled;
(e) any other commodity or product, on condition that a competent authority listed in Annex I has confirmed in writing that the Office of the Iraq Programme (OIP) of the Secretariat-General of the United Nations has notified in written form that the export of that commodity or product may proceed without prior approval of the Committee and is eligible for payment from the escrow account upon verification by UN agents that the products have been delivered to Iraq;
(f) any other commodity or product on the condition that a competent authority listed in Annex I has confirmed in writing that the export has been approved by the Committee.
3. The prohibitions in points 3, 4 and 5 of Article 1 shall not apply to:
(a) the provision of either postal and telecommunications services, medical services necessary for the operation of existing hospitals, or of non-financial services resulting from contracts or amendments to contracts concluded before 7 August 1990, where their execution began before that date;
(b) flights approved by the Committee or destined for activities of the United Nations in Iraq, on condition that a competent authority listed in Annex I has confirmed in writing that the flight either has been approved by the Committee or is destined for activities of the United Nations in Iraq;
(c) services, including financial transactions, which are ancillary or directly related to the activities referred to in paragraphs 1, 2 and 3.
4. Except for notifications and applications made by international organisations which are accredited to the United Nations, all notifications to the Committee, applications for approval by that Committee and applications for payment addressed to the OIP shall be made through the competent authority of the Member State in which the person, entity or body concerned is resident or established, as listed in Annex I. As regards notifications, applications and requests for payments concerning exports to Iraq, the request shall be accompanied by the completed form entitled 'Notification or Request to Ship Goods to Iraq' given in Annex II.
5. A confirmation in writing by a competent authority listed in Annex I, as referred to in this Article, shall be valid throughout the Community.
Upon receipt of an authorisation from the Committee or a notification from the OIP that an export does not need approval from the Committee, the competent authorities listed in Annex I shall promptly give such written confirmation to the person, entity or body concerned.
The competent authorities shall remind the person, entity or body concerned that, where an export authorisation is required in accordance with paragraph 2(a) or under other applicable Community legislation, the confirmation does not exempt that person, entity or body from the requirement to make an application for an export authorisation before the export takes place.
The competent authorities shall give confirmation in writing of a notification to the Committee as soon as such notification is made.
6. A confirmation of an authorisation concerning export or transit to Iraq or of a notification referred to in paragraph 5 shall be made out on a form corresponding to the model given in Annex IV and shall be issued free of charge. Member States shall be responsible for having this form printed.
The exporter shall present this confirmation to the customs authorities together with the customs declaration.
A translation of this authorisation into an official language of the Member State where the export declaration is presented may be required of the exporter.
7. If an authorisation in writing referred to in paragraph 2(a) is issued by a competent authority listed in Annex I, it shall be valid throughout the Community. It shall be made out on a form corresponding to the model given in Annex V and shall be issued free of charge. Member States shall be responsible for having this form printed.
The exporter shall present this authorisation to the customs authorities together with the customs declaration.
A translation of this authorisation into an official language of the Member State where the export declaration is presented may be required of the exporter.
8. The forms referred to in paragraphs 6 and 7 shall be printed in accordance with Article 12(9) of Council Regulation (EC) No 3285/94 of 22 December 1994 on the common rules for imports(4). In particular, the layout of the forms shall be followed precisely and the forms shall have a yellow printed guilloche pattern background so as to reveal any falsification by mechanical or chemical means."
3. Article 4 shall be replaced by the following: "Article 4
Any direct or indirect payment from the escrow account established by the Secretary-General of the United Nations pursuant to Resolution 986(1995) shall be destined only for the purposes indicated in paragraph 8 of that Resolution as contained in Annex III, and shall not be diverted to any other purpose."
4. the following subparagraph shall be added to Article 6: "The Commission shall be empowered to amend Annex II in order to bring it into line with changes that may be made by the Committee.";
5. Annexes I, II, III, IV and V, which appear in the Annex to this Regulation, shall be added to Regulation (EC) No 2465/96.
Article 2
This Regulation shall enter into force on the day of its publication in the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 25 July 2002.

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