Legal provisions of COM(2007)252 - Accession of the EC to the World Customs Organisation and the exercise of rights and obligations akin to membership ad interim

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52007PC0252

Proposal for a Council Decision on the accession of the European Communities to the World Customs Organisation and the exercise of rights and obligations akin to membership ad interim /* COM/2007/0252 final - ACC 2007/0087 */


[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 14.5.2007

COM(2007) 252 final

2007/0087 (ACC)

Proposal for a

COUNCIL DECISION

on the accession of the European Communities to the World Customs Organisation and the exercise of rights and obligations akin to membership ad interim

(presented by the Commission)

EXPLANATORY MEMORANDUM

CONTEXT OF THE PROPOSAL |

110 | Grounds for and objectives of the proposal The Council of the European Union decided on 19 March 2001 that the European Community should seek membership of the World Customs Organisation. It authorized the Commission to negotiate the membership of the European Community with the World Customs Organisation. Based on this Council decision, the European Community submitted a request to the World Customs Organisation to become a full member in April 2001. |

120 | General context The issue of membership was discussed during the 2001 June sessions of the Council of the World Customs Organisation as well as the subsequent World Customs Organisation meetings of December 2001 and June 2002. At that time several countries opposed it. The Council of the World Customs Organisation in 2002 left the issue open waiting for a political solution to emerge. Following contacts at political level, the request was presented again at the meeting of the Council of the World Customs Organisation in June 2006. This time the proposal that the World Customs Organisation opens discussion with the European Community regarding its membership request was endorsed. The Council of the World Customs Organisation and subsequently the Policy Commission of the World Customs Organisation in December 2006 examined the legal, voting and budgetary issues pertinent to the membership of the European Community in the World Customs Organisation. Throughout the process, the Commission kept Member States informed in the Customs Policy Group regarding the developments and the practical consequences of the potential membership in the World Customs Organisation. Currently the European Community participates in those World Customs Organisation bodies which are created by other international conventions or agreements to which it is already a party (e.g. Valuation Agreement, Harmonised System, Revised Kyoto Convention, etc.). In the case of other bodies and meetings it can only participate as observer and in some cases a special invitation is required (e.g. Policy Commission meeting). As member of the World Customs Organisation, the European Community will be entitled to participate fully in all World Customs Organisation bodies which are open to general membership and to be elected in bodies with elected membership. Customs matters are exclusive Community competence by virtue of the Treaty establishing the European Community and secondary legislation, most importantly the Community Customs Code. There is also some acquis in the area of customs cooperation related to customs offences and other matters related to EU Member States competences, as regulated by title VI of the Treaty establishing the European Union. A declaration of Community competence to the World Customs Organisation in the field of customs matters is necessary, and is attached herewith. In all World Customs Organisation bodies, a Community position will be established for matters falling under Community competence. For matters falling under national competence, EU Member States should strive to adopt a common position in order to ensure the unity of external representation of the Community and its Member States, as required by the case law of the European Court of Justice. Coordinated Community positions will be established in the Council's Customs Union (Legislation and Policy) Working Party or in the Customs Code Committee. On issues subject to Community competence, the European Community casts a number of votes equal to the number of its EU Member States in line with established practice in the World Customs Organisation administered Conventions (e.g. the Revised Kyoto Convention, the Istanbul Convention) and the World Trade Organisation. An exception is the Harmonised System Convention, where the European Community, together with its Member States, as contracting party has only one vote. EU Member States will continue to pay their membership fees to the World Customs Organisation. This was recognised by the Council in its decision of 19 March 2001. The European Community will pay an annual contribution to the World Customs Organisation to strengthen the work of the Organisation and to cover additional administrative expenses. The European Community contribution will be such that the combined EU Member States and European Community contributions to the World Customs Organisation reflect the weight and importance of the European Community in international trade and customs matters. The overall share of contribution of the European Community and EU Member States to the World Customs Organisation will also be comparable in relative terms to the combined contributions to the World Trade Organisation. The World Customs Organisation will have to modify the Convention establishing a Customs Co-operation Council to enable accession of customs and economic unions inter alia the European Community. The Council of the World Customs Organisation at its 109th/110th session of June 2007 is expected to adopt a decision to amend the Convention. The amendment will enter into force after all World Customs Organisation members have given written notification of their acceptance of the amendment. Once the Convention has been modified, the European Community will be able to deposit a legal instrument of accession. Furthermore the Council of the World Customs Organisation, at its 109th/110th session of June 2007, is also expected to adopt a decision, in order to allow the European Community to temporarily exercise the rights and obligations which are akin to a member's with immediate effect . Member States are called upon to support these two decisions of the Council of the World Customs Organisation in the interest of the European Community. The European Community will be in a position to accept the interim status. |

139 | Existing provisions in the area of the proposal There are no existing provisions in the area of the proposal. |

141 | Consistency with the other policies and objectives of the Union Not applicable. |

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT |

Consultation of interested parties |

219 | not relevant |

Collection and use of expertise |

229 | There was no need for external expertise. |

230 | Impact assessment o Improved international recognition of the EC competence in the field of the Customs policy. EC membership will enable the Community to fully exert its authority within the WCO and in bilateral relations. o Contribution to and direct influence on WCO decision-making progress. In addition to the traditional activities of the WCO in customs areas, where the EC is already a Contracting Party to a number of WCO conventions, new priorities and activities are developed, in particular in the areas of supply chain security and combating counterfeiting and pirated goods. It is important for the Commission to fully influence the direction of these discussions. o More effective co-ordination of Member States in the WCO. o Raising the international image of the EC and that of the Commission. |

LEGAL ELEMENTS OF THE PROPOSAL |

305 | Summary of the proposed action The objective of the proposal for a Council decision is to enable the Community membership in the World Customs Organisation. |

310 | Legal basis The legal basis is Article 133 in conjunction with Article 300 (2) first sentence thereof and second subparagraph thereof of the Treaty establishing the European Community |

329 | Subsidiarity principle The proposal falls under the exclusive competence of the Community. The subsidiarity principle therefore does not apply. |

Proportionality principle |

331 | The proposal complies with the proportionality principle for the following reason. The measure proposed is necessary for creating the legal basis for obtaining the EC membership at the WCO. |

332 | The share of the combined Community and EU Member States financial contributions to the WCO will be comparable to that for the World Trade Organisation. |

Choice of instruments |

341 | Proposed instruments: other. |

342 | Other means would not be adequate for the following reason(s). According to Article 300 of the EC Treaty, the signing, and the conclusion of the agreements shall be decided on by the Council, acting by a qualified majority on a proposal from the Commission. The Council Decision is the appropriate instrument. |

BUDGETARY IMPLICATION |

401 | The budgetary implications include the annual financial contribution of the European Community to the World Customs Organisation as set out in the attached legislative financial statement |

1. 2007/0087 (ACC)

Proposal for a

COUNCIL DECISION

on the accession of the European Communities to the World Customs Organisation and the exercise of rights and obligations akin to membership ad interim

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 133 thereof, in conjunction with Article 300(2), first subparagraph first sentence and second subparagraph thereof;

Whereas:

2. the Council decided on 19 March 2001 to authorize the Commission to negotiate on behalf of the European Community, the accession of the European Community to the World Customs Organisation,

3. the Convention establishing a Customs Co-operation Council is expected to be amended by the Council of the World Customs Organisation at its 109th/110th session in June 2007 to allow customs or economic unions, including the European Community to acquire membership of the World Customs Organisation,

4. following exploratory talks with the World Customs Organisation, the European Community and the World Customs Organisation examined the possibility for the European Community to exercise the rights and obligations akin to those of Members of the World Customs Organisation pending the ratification of the amended Convention establishing a Customs Co-operation Council by all Members of the World Customs Organisation,

5. the European Community is expected to be in a position to assume these rights and obligations in the framework of the Convention establishing a Customs Co-operation Council in matters of Community competence,

6. the EU Members States shall maintain their status in the World Customs Organisation,

7. both the European Community and its Member States have competence in the areas covered by the Convention establishing a Customs Co-operation Council, it is therefore desirable for the European Community to become a Contracting Party to the Convention in order to carry out together the obligations laid down in the Convention and exercise together the rights it confers in cases of shared competence in order to guarantee the uniform application of the Convention,

8. for matters falling under European Community competence a European Community position must be established. For matters falling under national competence EU Member States should strive to adopt a common position to ensure the unity of external representation of the European Community and its Member States,

9. in view of the above the Council should adopt the necessary decision to enable European Community membership to the World Customs Organisation and to provide for the exercise of rights and obligations akin to membership ad interim.

HAS DECIDED AS FOLLOWS:

Article 1

1. Upon entry into force of the amendment to the Convention establishing a Customs Co-operation Council allowing the European Community to become a member of that organization, the European Community shall express its consent to be bound by the amended Convention and thereby accede to the World Customs Organization.

2. The Commission is hereby authorised to designate the person empowered to deposit the instrument of the formal notification to the depositor of the Convention in order to bind the Community, subject to the fulfilment of the procedural requirements of the EC Treaty.

Article 2

1. EU Member States shall vote in favour of the Council of the World Customs Organisation decisions according to which the European Community shall, as an interim measure, be granted rights akin to those enjoyed by World Customs Organisation Members, subject to the conditions contained therein.

2. The European Commission shall submit a letter to the World Customs Organisation according to which the European Community accepts the rights and obligations akin to those of World Customs Organisation members as laid down in the World Customs Organisation Council decision pending the entry into force of the amendment of the Convention establishing a Customs Co-operation Council.

3. The letter shall contain a declaration of competence as specified in Annex 1.

4. The European Community shall pay an annual contribution to the World Customs Organisation to strengthen the work of the World Customs Organisation and to cover additional administrative expenses as of 1 July 2007.