Explanatory Memorandum to COM(2017)133 - EU position on the Regional Convention on pan-Euro-Mediterranean preferential rules of origin with regard to the amendment of Appendix II to that Convention - Main contents
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| dossier | COM(2017)133 - EU position on the Regional Convention on pan-Euro-Mediterranean preferential rules of origin with regard to the amendment ... |
|---|---|
| source | COM(2017)133  |
| date | 21-03-2017 |
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
The Regional Convention on pan-Euro-Mediterranean preferential rules of origin 1 (hereafter the Convention) lays down provisions on the origin of goods traded under relevant Agreements concluded between the Contracting Parties.
Article 1 of Appendix II to the Convention provides that the Contracting Parties may apply in their bilateral trade special provisions derogating from the general provisions laid down in Appendix I. These special provisions are laid down in the Annexes to Appendix II.
The Joint Committee of the Central European Free Trade Agreement (CEFTA), involving the Republic of Moldova and the participants in the European Union’s Stabilisation and Association Process (hereafter ‘CEFTA Parties’) introduced by its Decision 3/2015 of 26 November 2015 2 a possibility of duty drawback and of full cumulation in the trade between the CEFTA parties. All CEFTA parties are Contracting Parties to the Convention.
The Decision 3/2015 of the Joint Committee of CEFTA contains provisions derogating from the provisions of Appendix I to the Convention and requires therefore an amendment of Appendix II to the Convention. Firstly, it derogates from Article 14 of Appendix I, which states the principle of a prohibition of duty drawback. Secondly, it derogates from Article 3 of Appendix I concerning cumulation since full cumulation is not covered by this provision.
The other provisions of Decision 3/2015 ensure the smooth implementation of these derogating provisions.
It is also ensured that these derogating provisions have no effect on trade with other Contracting Parties of the Convention. Article 1 of Decision 3/2015 stipulates that products that acquired origin in a CEFTA party by application of these derogations shall be excluded from cumulation under the general provisions of the Convention.
Article 4(3) of the Convention stipulates that amendments to the Convention and to the Appendixes shall be adopted by decision of the Joint Committee of the Convention. In accordance with Article 3(2) the Joint Committee shall act by unanimity.
• Consistency with existing policy provisions in the policy area
It is to be noted that similar derogations are already applicable in the trade between certain Contracting Parties.
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
The legal basis for the Council Decision is Article 207 in conjunction with Article 218(9) of the Treaty on the Functioning of the European Union.
Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides that when a decision having legal effect needs to be taken in a body set up by an international agreement, the Council, on a proposal from the Commission or the High Representative of the Union for Foreign Affairs and Security Policy, shall adopt a decision establishing the position to be adopted on the European Union’s behalf.
The decision to be taken by the Joint Committee of the Convention falls under this provision.
• Subsidiarity (for non-exclusive competence)
The proposal falls under the exclusive competence of the Union.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS
• Stakeholder consultations
The Contracting Parties to the Convention and the Member States were informed of the request at the meeting of the Joint Committee of the Convention of 28 September 2016.
• Collection and use of expertise
No need for recourse to external expertise.
• Impact assessment
The derogations on which the EU needs to take a position in the Joint Committee of the Convention only concern preferential trade between CEFTA parties. There is therefore no need to conduct an impact assessment.
4. BUDGETARY IMPLICATIONS
Not applicable.