Explanatory Memorandum to COM(2001)499 - Procedures for applying the Stabilisation and Association Agreement with their Member States, of the one side, and Croatia, of the other side and for applying the Interim Agreement with Croatia

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A Stabilisation and Association Agreement between the European Communities and their Member States and the Republic of Croatia (hereinafter the 'SAA')  i has been initialled on 14 May 2001 and is expected to be signed in October 2001. The ratification by national Parliaments and the assent of the European Parliament will then be needed for its entry into force.

Therefore, pending the entry into force of the SAA, an Interim Agreement between the European Community and the Republic of Croatia  i, covering the trade and trade-related provisions of the SAA, has been initialled on 10 July 2001. The Agreement is expected to be concluded during the autumn of 2001. The Interim Agreement and the Council decision for conclusion provide for provisional application as of 1 January 2002.

Under the SAA and the Interim Agreement certain products originating in the Republic of Croatia, notably 'baby beef' and some fisheries products, may be imported into the Community, within the limits of tariff quotas, at a reduced or zero rate of customs duty. It is therefore necessary to confer on the Commission the power to adopt the necessary detailed rules on implementation for the opening and application of these tariff concessions.

Furthermore, since within the framework of the agreed tariff concessions preferential duty rates are phased out progressively, there is a need to lay down specific provisions on tariff reductions and management of tariff quotas.

This draft regulation therefore includes the necessary provisions for the initial application of the Interim Agreement, and thereafter the SAA when it comes into force. It will become applicable on the date of provisional application or entry into force of the Interim Agreement.

In the light of the above, the Commission proposes that the Council:

- adopts the enclosed proposal for a Regulation on certain procedures for applying the Stabilisation and Association Agreement between the European Communities and their Member States, of the one side, and the Republic of Croatia, of the other side and for applying the Interim Agreement between the European Community and the Republic of Croatia.