Annexes to COM(2023)106 - Temporary trade liberalisation supplementing trade concessions applicable to Ukrainian products under the Association Agreement with Ukraine

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Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part.

2. BUDGET LINES:

Chapter 12, Article 120

Amount budgeted for the year 2023: 21 590 300 000€

3. FINANCIAL IMPACT

    Proposal has no financial implications

X    Proposal has no financial impact on expenditure but has a financial impact on revenue – the effect is as follows:

Budget lineRevenue 

Period: part of 2023 - part of 2024*

(EUR million to one decimal place)
Article 120 Chapter 12 14Impact on own resources48.4
Total

* One-year period since entry into force of the regulation

The calculations are based on 2021 import volumes of products covered by the proposed Regulation in excess of the annual duty-free quota (i.e. 40 tariff rate quotas) as well as an estimation of anti-dumping duties.

Based on the above calculations the loss of traditional own resources revenue from this Decision is estimated at EUR 64.5 million (gross amount, including collection costs) x 0,75 = EUR 48.4 million for the period in question.

4. ANTI-FRAUD MEASURES

In order to prevent fraud, the entitlement to the trade measures established by the proposed Regulation should be conditional upon Ukraine having complied with all the relevant conditions for obtaining benefits under the Association Agreement, including the rules of origin of products concerned and the procedures related thereto, as well as Ukraine's involvement in close administrative cooperation with the Union, as provided for by the Association Agreement.

(1) See Council Decision (EU) 2022/1158 of 27 June 2022 on the signing, on behalf of the Union, and provisional application of the Agreement between the European Union and Ukraine on the carriage of freight by road ( OJ L 179, 6.7.2022, p. 1 ) and Council Decision (EU) 2022/2435 of 5 December 2022 on the conclusion, on behalf of the European Union, of the Agreement between the European Union and Ukraine on the carriage of freight by road (OJ L 319, 13.12.2022, p. 5).
(2) The Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part ( OJ L 161, 29.5.2014, p. 3 ) was signed by the Parties in two parts, in March and June 2014. The Association Agreement has been provisionally applied in some parts since 1 November 2014. The Deep and Comprehensive Free Trade Area (DCFTA) has been provisionally applied since 1 January 2016 and is fully in force since 1 September 2017 following ratification by all EU Member States.
(3) Regulation (EU) 2015/478 of the European Parliament and of the Council of 11 March 2015 on common rules for imports (OJ L 83, 27.3.2015, p. 16).
(4) The estimation in excess of the tariff rate quotas amounts to EUR 44.5 million and EUR 20 million for anti-dumping duties. The loss of traditional own resources revenue from this Regulation is thus estimated at EUR 64.5 million (gross amount, including collection costs) x 0,75 = EUR 48.4 million for the period in question. 
(5) Position of the European Parliament of (…) (not yet published in the Official Journal) and decision of the Council (…).
(6) OJ L 161, 29.5.2014, p. 3 .
(7) Council Decision 2014/668/EU of 23 June 2014 on the signing, on behalf of the European Union, and provisional application of the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part, as regards Title III (with the exception of the provisions relating to the treatment of third-country nationals legally employed as workers in the territory of the other Party) and Titles IV, V, VI and VII thereof, as well as the related Annexes and Protocols ( OJ L 278, 20.9.2014, p. 1 ).
(8) Council Decision 2014/668/EU of 23 June 2014 on the signing, on behalf of the European Union, and provisional application of the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part, as regards Title III (with the exception of the provisions relating to the treatment of third-country nationals legally employed as workers in the territory of the other Party) and Titles IV, V, VI and VII thereof, as well as the related Annexes and Protocols ( OJ L 278, 20.9.2014, p. 1 ).
(9) Regulation (EU) 2022/870 of the European Parliament and of the Council of 30 May 2022 on temporary trade-liberalisation measures supplementing trade concessions applicable to Ukrainian products under under the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Ukraine, of the other part (OJ L 152, 3.6.2022, p. 103).
(10) Regulation (EU) 2016/1036 of the European Parliament and of the Council of 8 June 2016 on protection against dumped imports from countries not members of the European Union ( OJ L 176, 30.6.2016, p. 21 ).
(11) Regulation (EU) 2015/478 of the European Parliament and of the Council of 11 March 2015 on common rules for imports ( OJ L 83, 27.3.2015, p. 16 ).
(12) Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers ( OJ L 55, 28.2.2011, p. 13 ).
(13) Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code ( OJ L 269, 10.10.2013, p. 1 ).
(14) Regarding traditional own resources (agricultural duties, sugar levies, customs duties) the amounts indicated must be net amounts, i.e. gross amounts after deduction of 25 % of collection costs.