Explanatory Memorandum to COM(2015)333 - EU position within the EU-Chile Association Committee relating to Article 12 of Annex III to the association agreement with Chile concerning direct transport

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1. CONTEXT OF THE PROPOSAL

The Agreement between the European Community and its Member States, of the one part, and the Republic of Chile, of the other part, was signed in Brussels on 18 November 2002 and entered into force on 1 February 2003.

Annex III to the Association Agreement sets out the rules for originating products and Article 12 to Annex III the rules for the direct transport of those products between the Parties. For preferential treatment the products should be transported directly between the two Parties but may under certain conditions pass via a third country.

Chile and the European Union have agreed to introduce certain amendments to the rules of direct transport contained in Article 12 of Annex III to the Agreement. The aim is to clarify that when a consignment passes via a third country, and subject to fulfilling the conditions in Article 12, a consignment may be split for onward transport to a Party of the Agreement without affecting the preferential treatment of those products. Moreover, the splitting of consignments should not of itself give rise to doubt as to the origin of the products unless there is evidence to the contrary.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

Article 207 i first subparagraph in conjunction with Article 218(9) of the Treaty on the Functioning of the European Union.

Subsidiarity (for non-exclusive competence)

The proposal falls under the exclusive competence of the European Union. The subsidiarity principle therefore does not apply.

Proportionality

The proposal does not go beyond what is necessary or appropriate to achieve the expected objectives.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

Stakeholder consultations

Not relevant. This proposal introduces amendments to a previous text.

Collection and use of expertise

There was no need for external expertise.

Impact assessment

Not relevant. This proposal introduces amendments to an existing bilateral trade agreement. There are no other options to be considered.

4. BUDGETARY IMPLICATIONS

The proposal has no implication for the Union budget.

5. OTHER ELEMENTS

None