Explanatory Memorandum to COM(2010)158 - EU position within the Association Council EU-Morocco as regards the amendment of Article 15(7) of Protocol No 4 to that Agreement, concerning the definition of the concept of "originating products" and methods of administrative cooperation - Main contents
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| dossier | COM(2010)158 - EU position within the Association Council EU-Morocco as regards the amendment of Article 15(7) of Protocol No 4 to that ... |
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| source | COM(2010)158  |
| date | 20-04-2010 |
The prohibition of drawback of customs duties is stipulated in Article 15 of Protocol No 4 annexed to the EC-Morocco Association Agreement. Paragraph 7 of that article provides for a transitional period prior to the full application of the prohibition of drawback of duties by Morocco and allows the country to grant duty drawback to its exporters or economic operators during this period.
The transitional period expired on 31 December 2009. However, Article 15(7) provides for the possibility of re-examining this provision by mutual agreement.
Morocco has requested in writing that the period in which the provision on drawback applies be extended and that the rates of customs charges be revised.
In accordance with Article 39 of Protocol No 4, the provisions of the Protocol may be amended by decision of the Association Council.
The text of the decision will replace the existing provision laid down in Article 15(7).
It includes both the change to the application period of the provision on drawback and the revision of the rates of customs charges to be retained.
The parties have agreed to extend by three years the application period of Article 15(7), with effect from 1 January 2010 in order to provide clarity, long-term economic predictability and legal certainty for economic operators.
The parties have also decided to adjust the rates of customs charges currently applicable in Morocco to bring them into line with those that apply in the European Union.
Pending formal adoption of the present decision, it was agreed, in an exchange of correspondence between the European Commission and the relevant Moroccan authorities, that this decision will apply from 1 January 2010.
CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT
The parties concerned have been consulted in the Pan-Euro-Med working group and the Customs Code Committee's Origin Section.
No recourse to external expertise has been necessary.
It has not been necessary to conduct an impact assessment, since the proposed amendments are technical in nature and do not affect the substance of the protocol on rules of origin currently in effect.
Given the nature of the changes to be made to Article 15(7) of Protocol No 4 and in the interest of legal certainty, the whole paragraph should be replaced.
The amended provision on drawback of duties should apply retroactively from 1 January 2010.
The legal basis for the amendment of this provision is the first subparagraph of Article 207(4) in conjunction with Article 218(9) of the Treaty on the Functioning of the European Union.
The proposal falls under the exclusive competence of the Union. The principle of subsidiarity does not therefore apply.
Proposed instrument: Council decision
This proposal has no financial implications for the Union budget.
ADDITIONAL INFORMATION
The proposal does not include any review, revision or sunset clause.