Explanatory Memorandum to COM(2009)260 - Community position within the Joint Committee established by the Agreement on the EEA on the adaptation of Protocols 10 and 37 on simplification of inspections and formalities in respect of carriage of goods

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I. General introduction

The attached proposal for a Council Decision constitutes the legal instrument for the signing, provisional application and adoption of the EEA Joint Committee Decision on amending Protocols 10 and 37 to the EEA Agreement with a view to extend the application of the EEA Agreement on customs security measures.

The Community Customs Code i and its Implementing Provisions i, which lay down the rules for the customs treatment of goods that are imported or exported, were amended in 2005 i and 2006 i respectively to introduce provisions on customs security measures. Among these security arrangements is an obligation that traders should submit certain information prior to importing or exporting goods, which will make it possible to carry out a risk analysis of such operations prior to the entry or exit of the consignments in question.

In principle, these security measures apply to trade with all non-member countries. However, the Community Customs Code allows for different rules concerning the obligation to provide pre-arrival and pre-departure information where international agreements provide for special security arrangements. It was thus held necessary and in the mutual interest of the Community and Norway to establish amended rules for customs security in their bilateral trade in goods. Given Norway's geographical position in relation to the Community customs territory, the large number of import/export transactions taking place daily between it and European Union Member States as well as legal links of the EC with Norway based on the EEA Agreement, such an arrangement is needed to ensure in particular that trade runs smoothly while maintaining a high level of security. The negotiations, which started in June 2008, produced an arrangement to abolish the requirement for a prior declaration for goods traded between the Community and Norway. The abolition of this requirement is subject to the condition that the Contracting Parties undertake to guarantee on their respective territories an equivalent level of security through measures based on legislation in force in the Community. In addition to provisions for customs-security measures, the arrangement also includes a set of rules to ensure that the Agreement and the acquis communautaire remain in alignment and to provide that, if the equivalence of the respective security measures is no longer maintained, either party may take rebalancing measures, including suspending application of the relevant chapter of the Agreement.

The objective of this proposal is to amend Protocol 10 and Protocol 37 to the EEA Agreement in order to extend their application on customs-security measures.

These amendments will apply only in trade between the Community and Norway. Their application can be extended in the future on Iceland and Liechtenstein by a decision of the EEA Joint Committee. However, the agreement on customs security measures between the EC and Switzerland will apply to Liechtenstein.

Pending completion of the internal procedures of the Contracting Parties, the amended Agreement will be implemented provisionally so that the new provisions can be taken into account from 1 July 2009 when the security measures introduced by amendments to the Customs Code and Implementing Provisions will come into force.

These amendments to the EEA Agreement have no financial impact on the budget of the European Community.

II. Amendments to Protocol 10

A. Customs-security measures provided for in the acquis communautaire included in Chapter IIa of Protocol 10.

The new Chapter IIa (and Annexes I and II which are referred to in this Chapter) on customs security contains provisions that are equivalent to the provisions added to the Community Customs Code and its Implementing Provisions for the purpose of providing a coordinated and effective response to security concerns in international trade. These provisions cover:

- the requirement that traders provide the customs authorities with details of goods before they are imported into the EU or exported from it;

- the possibility of allowing reliable operators to use a simplified version of the customs-security measures (status of 'authorised economic operator');

- the introduction of uniform criteria for selecting risks for control purposes, which will be established using computerised systems.

B. Provisions on measures to ensure the equivalence of customs security

The new article 9f of Protocol 10 lays down that the EEA Joint Committee shall define the rules allowing the contracting parties to ensure the monitoring of the implementation of this Chapter and to verify whether the provisions of this Chapter and Annexes I and II to this Protocol are respected. Monitoring may take the form of regular assessments of the implementation of these provisions, holding of thematic meetings of experts from both parties, and audits of administrative procedures.

In addition, with a view to the equivalence of customs security measures listed in Chapter IIa and in Annexes I and II, Article 9i of the Protocol provides that each contracting party may take appropriate safeguard measures, including the suspension of the provisions of that Chapter, if it finds that the other party does not respect the conditions or equivalency is no longer ensured. Such measures are subject to prior consultation of the EEA Joint Committee.

Unless the EEA Joint Committee decides otherwise, a contracting party may suspend the application of Chapter IIa where the Committee has not decided on amendments to this Chapter that are needed to take into account developments in the relevant Community legislation, with the result that equivalency of customs measures is no longer ensured. If the Community decides on such action, the Commission will notify Norway of the suspension, which will take effect from the date on which the Community legislation concerned is applied.

III. Amendments to Protocol 37

The Protocol contains a list of committees which assist the European Commission in the exercise of its executive powers.

The Customs Code Committees is added to the list to allow participation of the representatives of Norway to this Committee when, in accordance with Article 101 of the EEA Agreement, this is called for by the good functioning of the EEA Agreement.

IV. Conclusion

Article 1 i of Council Regulation (EC) No 2894/94 i concerning the arrangements for implementing the EEA Agreement envisages that the Council establishes the Community position for Joint Committee Decisions of this nature.

The draft decision of the EEA Joint Committee is submitted for the approval of the Council, after which the Commission will put forward the position of the Community in the EEA Joint Committee at the earliest possible occasion.