Tag Archives: Originating product

Exceptional trade measures

Exceptional trade measures

Outline of the Community (European Union) legislation about Exceptional trade measures

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Enlargement > The stabilisation and association process: the western balkans

Exceptional trade measures

Document or Iniciative

Council Regulation (EC) No 1215/2009 of 30 November 2009 introducing exceptional trade measures for countries and territories participating in or linked to the European Union’s Stabilisation and Association process (codified version).

Summary

The Western Balkan countries benefit from exceptional trade measures for their imports into the European Union (EU). These countries and territories are part of the Stabilisation and Association process.

The exceptional trade measures shall apply until 31 December 2010.

Trade preferences

Products originating in Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Kosovo shall be imported into the European Union without customs duties * or charges having equivalent effect and without quantitative restrictions * or measures having equivalent effect.

In addition, these trade preferences shall apply to certain agricultural products.

Conditions for entitlement

To benefit from the preferential measures, countries and territories must:

  • comply with the definition of originating product provided for in Regulation (EEC) No 2454/93; the products must have been wholly manufactured or have undergone sufficient processing in the country or territory;
  • undertake not to increase the level of taxes or restrictions on products imported from the EU;
  • combat fraud by means of administrative cooperation with the EU.

Beneficiaries should also engage in effective economic reforms and in cooperation with other countries concerned by the Stabilisation and Association process, in particular through the creation of a regional free trade area.

The Commission may suspend the trade preferences in whole or in part if a country fails to comply with its obligations.

Agricultural and fishery products

The customs duties applicable to certain fishery products and certain wines shall be suspended, within the limits defined in Annex I.

The customs duties applicable to imports of veal (baby beef) originating in Bosnia and Herzegovina, Serbia and Kosovo are defined in Annex II. The volume of the total annual tariff quota * is 11 475 tonnes, distributed as follows:

  • 1 500 tonnes (carcass weight) for products originating in Bosnia and Herzegovina;
  • 9 175 tonnes (carcass weight) for products originating in the customs territories of Serbia and Kosovo.

Imports of sugar products originating in Bosnia and Herzegovina, Serbia and Kosovo shall be subject to annual tariff quotas:

  • 12 000 tonnes (net weight) for products originating in Bosnia and Herzegovina;
  • 180 000 tonnes (net weight) for products originating in the customs territories of Serbia and Kosovo.

Regulation (EC) No 1234/2007 establishes procedures for the implementation of tariff quotas in relation to these products.

The Commission may take protective measures if imports of agricultural and fishery products cause serious disturbance to the EU’s internal market.

Keywords
  • Customs duties: a duty which alters the price of an imported product, irrespective of its name or technique, which results in a restriction on the free movement of goods.
  • Quantitative restriction: any trade regulation which may have the effect of limiting imports of goods, in terms of quantity or value (e.g. import quota).
  • Tariff quota: a trade measure which permits the total or partial suspension of the duties normally paid on an imported product, during a period of time or for a limited volume.

References

Act Entry into force – expiry date Deadline for transposition in the Member States Official Journal

Regulation (EC) No 1215/2009

4.1.2010 – 31.12.2010

OJ L 328 of 15.12.2009

Related Acts

Proposal for a Regulation of the European Parliament and of the Council on amending Council Regulation (EC) No 1215/2009 introducing exceptional trade measures for countries and territories participating in or linked to the European Union’s Stabilisation and Association process [COM(2010) 54 final- Not published in the Official Journal].
This Proposal aims to extend the validity of the trade preferences granted to the Western Balkan countries until 2015.
Procedure: 2010/0036/COD

Pan-Euro-Mediterranean system of cumulation of origin

Pan-Euro-Mediterranean system of cumulation of origin

Outline of the Community (European Union) legislation about Pan-Euro-Mediterranean system of cumulation of origin

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Customs

Pan-Euro-Mediterranean system of cumulation of origin

Proposal

Proposal for a Council Decision on the signature of the regional convention on pan-Euro-Mediterranean preferential rules of origin [COM(2010) 168 final – Not published in the Official Journal].

Proposal for a Council Decision on the conclusion of the regional convention on pan-Euro-Mediterranean preferential rules of origin [COM(2010) 172 final – Not published in the Official Journal].

Summary

The draft convention lays down rules allowing the origin of goods traded under free trade agreements in the pan-Euro-Mediterranean zone to be determined. It is necessary to ascertain the origin of goods in order to apply tariff preferences, i.e. reducing or removing customs duties or taxes of equivalent effect.

The contracting parties to this Convention are the following:

  • the European Union;
  • the European Free Trade Association (EFTA) States, which are Iceland, Norway, Switzerland and Liechtenstein;
  • signatories to the Barcelona declaration, namely Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia, Turkey, and Palestine;
  • the Faroe Islands;
  • the participants in the European Union Stabilization and Association Process.

Originating products

Goods are considered as products originating in the pan-Euro-Mediterranean cumulation zone if they are:

  • wholly obtained in the territory of a Contracting Party to the Convention;
  • composed of materials originating in countries that are not signatories to the Convention (non-originating materials), but which have been sufficiently processed in the territory of a Contracting Party to the Convention. Annex II of Appendix I to the Convention presents the criteria for sufficient processing for each product category;
  • imported from the European Economic Area (EEA) and exported to another Contracting Party to the Convention.

Pan-Euro-Mediterranean cumulation of origin

If three Contracting Parties to the Convention are bound by a Free Trade Agreement (FTA), they may apply a system of diagonal cumulation of origin. Products that have obtained originating status in one of the countries in the pan-euro-Mediterranean cumulation zone may be added to products originating from any other country in the zone without losing their originating status within that zone.

Cumulation of origin is subject to certain conditions:

  • the existence of a preferential trade agreement in accordance with the GATT;
  • compliance with the rules of the Convention;
  • publication of a notice in the Official Journal of the EU (C series) on compliance with the implementing conditions for cumulation.

Furthermore, a total cumulation of origin may be applied within the EEA (i.e. EU countries, Iceland, Liechtenstein and Norway) and for trade between the EU, Algeria, Morocco and Tunisia. As regards the EEA, products traded between these countries shall be considered to have originated from the same territory.

Products originating in third countries

In order to manufacture * their products, the Contracting Parties to the Convention may use non-originating materials, which shall generally be subject to customs duties.

Proof of origin

Exporters must be able to present movement certificates EUR.1 or EUR-MED to the customs authorities of the importing countries. Such certificates shall be issued by the customs authorities of the exporting country.

Approved exporters may also issue an invoice declaration or an invoice declaration EUR-MED.

If goods are in transit in a free zone and they are handled for reasons other than those designed to prevent their deterioration, a new movement certificate must be issued.

Joint Committee

The management and implementation of the Convention shall be overseen by a Committee composed of representatives of all of the Contracting Parties.

Key terms
  • Manufacture: any kind of working or processing, including assembly or specific operations.

References And Procedure

Proposal Official Journal Procedure

COM(2010) 168

Non-legislative NLE(2010) 0092

COM(2010) 172

Non-legislative NLE(2010) 0093