Legal provisions of COM(2023)106 - Temporary trade liberalisation supplementing trade concessions applicable to Ukrainian products under the Association Agreement with Ukraine

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dossier COM(2023)106 - Temporary trade liberalisation supplementing trade concessions applicable to Ukrainian products under the Association ...
document COM(2023)106 EN
date May 31, 2023

Contents

Article 1 - Trade-liberalisation measures

1. The following preferential arrangements are introduced:

(a)the application of the entry price system shall be suspended for those products to which it applies as specified in Annex I-A to the Association Agreement. No customs duties shall apply to imports of those products;

(b)all the tariff-rate quotas established under Annex I-A to the Association Agreement shall be suspended and the products covered by those quotas shall be admitted for importation into the Union from Ukraine without any customs duties.

2. By way of derogation from Article 14(1), first subparagraph, of Regulation (EU) 2016/1036, anti-dumping duties on imports originating in Ukraine made during the application of this Regulation shall not be collected at any point in time, including after the expiry of this Regulation.

3. The application of Regulation (EU) 2015/478 shall be temporarily suspended with regard to imports originating in Ukraine. 

Article 2 - Conditions for entitlement to the preferential arrangements

The preferential arrangements provided in Article 1(1), points (a) and (b), shall be subject to the following conditions:

(a)compliance with the rules of origin of products and the procedures related thereto as provided for in the Association Agreement; 

(b)Ukraine’s abstention from introducing new duties or charges having equivalent effect and new quantitative restrictions or measures having equivalent effect for imports originating in the Union, from increasing existing levels of duties or charges or from introducing any other restrictions on trade with the Union, including discriminatory internal administrative measures, unless clearly justified in the war context; and

(c)Ukraine's respect for democratic principles, human rights and fundamental freedoms and respect for the principle of the rule of law as well as continued and sustained efforts with regard to the fight against corruption, and illegal activities provided for in Articles 2, 3 and 22 of the Association Agreement.

Article 3 - Temporary suspension

1. Where the Commission finds that there is sufficient evidence of Ukraine’s failure to comply with the conditions set out in Article 2, it may, by means of an implementing act, suspend in whole or in part the preferential arrangements provided for in Article 1(1), points (a) and (b). That implementing act shall be adopted in accordance with the examination procedure referred to in Article 5(3). 

2. Where a Member State requests that the Commission suspends any of the preferential arrangements on the basis of Ukraine’s failure to comply with the conditions set out in Article 2, point (b), the Commission shall provide a reasoned opinion within four months of the request on whether the claim of Ukraine’s failure to comply is substantiated. If the Commission concludes that the claim is substantiated, it shall initiate the procedure referred to in paragraph 1 of this Article.

Article 4 - Expedited safeguard

1. Where a product originating in Ukraine is imported under conditions which adversely affect the Union market of like or directly competing products, the Commission may reintroduce the customs duties otherwise applicable under the Association Agreement on imports of that product at any time by adopting an implementing act. That implementing act shall be adopted in accordance with the examination procedure referred to in Article 5(3).

2. The Commission shall regularly monitor the impact of this Regulation, taking into account the information on exports, imports, prices on the Union market and Union production of the products subject to the trade-liberalisation measures under Article 1(1), point (b).

The Commission shall inform the Member States every two months of the results of the regular monitoring, starting from the entry into force of this Regulation.

3. The Commission shall launch an assessment of the situation of the Union market for the like or directly competing products with a view to reintroduce the customs duties. 

That assesment shall be concluded within a period of no longer than three months:

(a)following a duly substantiated request from a Member State including sufficient prima facie evidence reasonably available to that Member State pursuant to paragraph 5 of imports adversely affecting the market that is referred to in paragraph 1, or

(b)on its own initiative, after it has become apparent to the Commission that there is sufficient prima facie evidence of imports adversely affecting the market that is referred to in paragraph 1.

4. Where, as a result of the assessment, the Commission considers that the Union market of like or directly competing products has been adversely affected and intends to reintroduce the customs duties, it shall publish a notice in the Official Journal of the European Union announcing the reintroduction of the customs duties otherwise applicable pursuant to paragraph 1. The notice shall provide a summary of the main results of the expedited assessment and specify the period within which interested parties may submit their views in writing. Such period shall not exceed 10 days from the date of publication of the notice.

5. In its assessment, whether measures should be applied pursuant to paragraph 1, the Commission shall take into consideration all relevant market developments including the impact of the imports concerned on the situation of the Union market of like or directly competing products. That assessment shall include factors such as: 

(a)the rate and amount of the increase in imports from Ukraine of the product concerned in absolute and relative terms,

(b)the effect of the imports concerned on EU production and prices, whilst taking into consideration the development of imports from other sources. 

This list is not exhaustive and other relevant factors may also be taken into consideration.

6. The customs duties otherwise applicable under the Association Agreement may be reintroduced for as long as necessary to counteract the adverse effects on the Union market of like or directly competing products. 

7. Where exceptional circumstances require immediate action, the Commission may, without following the procedure under paragraph 4 and after informing the Committee on Safeguards established by Article 3(1) of Regulation (EU) No 2015/478 take any preventive measure, which is necessary.

Article 5 - Committee procedure

1. The Commission shall be assisted by the Customs Code Committee established by Article 285(1) of Regulation (EU) No 952/2013 of the European Parliament and of the Council 13 with regard to Article 3(1) of this Regulation. That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2. The Commission shall be assisted by the Committee on Safeguards established by Article 3(1) of Regulation (EU) No 2015/478 with regard to Article 4(1) of this Regulation. That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

3. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Article 6 - Assessment of the implementation of the trade-liberalising measures

The Commission’s annual report on the implementation of the Deep and Comprehensive Free Trade Area shall include a detailed assessment of the implementation of the trade-liberalisation measures provided for in this Regulation and shall include, insofar as appropriate, an assessment of the social impact of those measures in Ukraine and in the Union. Information on imports of products under Article 1(1), point (b), shall be made available monthly via the website of the Commission.

Article 7 - Entry into force and application

This Regulation shall enter into force on 6 June 2023.

This Regulation shall apply until 5 June 2024.

This Regulation shall be binding in its entirety and directly applicable in all Member States.