02014A0830(02) — EN — 14.03.2018 — 003.001

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►B	ASSOCIATION AGREEMENT between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part (OJ L 261 30.8.2014, p. 4)

Amended by:

		Official Journal
		No	page	date
M1	DECISION No 1/2016 OF THE GEOGRAPHICAL INDICATIONS SUB-COMMITTEE of 10 November 2016	L 335	133	9.12.2016
►M2	DECISION No 1/2017 OF THE EU-GEORGIA SANITARY AND PHYTOSANITARY SUB-COMMITTEE of 7 March 2017	L 98	22	11.4.2017
►M3	DECISION No 1/2018 OF THE GEOGRAPHICAL INDICATIONS SUB-COMMITTEE of 14 March 2018	L 100	1	19.4.2018

Corrected by:

►C1	Corrigendum, OJ L 297, 15.10.2014, p.  42  (2014/830)
►C2	Corrigendum, OJ L 080, 25.3.2015, p.  128  (2014/830)

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▼B

ASSOCIATION AGREEMENT

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

Article 1

Objectives

1.  An association is hereby established between the Union and its Member States, of the one part, and Georgia, of the other part.

2.  The aims of this association are:

TITLE I

GENERAL PRINCIPLES

Article 2

General Principles

1.  Respect for the democratic principles, human rights and fundamental freedoms, as proclaimed in the United Nations Universal Declaration of Human Rights of 1948 and as defined in the European Convention for the Protection of Human Rights and Fundamental Freedoms of 1950, the Helsinki Final Act of 1975 of the Conference on Security and Cooperation in Europe and the Charter of Paris for a New Europe of 1990 shall form the basis of the domestic and external policies of the Parties and constitutes an essential element of this Agreement. Countering the proliferation of weapons of mass destruction, related materials and their means of delivery also constitute essential elements of this Agreement.

2.  The Parties reiterate their commitment to the principles of a free market economy, sustainable development and effective multilateralism.

3.  The Parties reaffirm their respect for the principles of the rule of law and good governance, as well as their international obligations, in particular under the UN, the Council of Europe and the OSCE. In particular, they agree to promoting respect for the principles of sovereignty and territorial integrity, inviolability of borders and independence.

4.  The Parties commit themselves to the rule of law, good governance, the fight against corruption, the fight against the various forms of transnational organised crime and terrorism, the promotion of sustainable development, effective multilateralism and the fight against the proliferation of weapons of mass destruction and their delivery systems. This commitment constitutes a key factor in the development of the relations and cooperation between the Parties and contributes to regional peace and stability.

TITLE II

POLITICAL DIALOGUE AND REFORM, COOPERATION IN THE FIELD OF FOREIGN AND SECURITY POLICY

Article 3

Aims of political dialogue

1.  Political dialogue on all areas of mutual interest, including foreign and security matters as well as domestic reform, shall be further developed and strengthened between the Parties. This will increase the effectiveness of political cooperation and promote convergence on foreign and security matters, strengthening relations in an ambitious and innovative way.

2.  The aims of political dialogue shall be:

Article 4

Domestic reform

The Parties shall cooperate on developing, consolidating and increasing the stability and effectiveness of democratic institutions and the rule of law; on ensuring respect for human rights and fundamental freedoms; on making further progress on judicial and legal reform, so that the independence of the judiciary is guaranteed, strengthening its administrative capacity and guaranteeing impartiality and effectiveness of law enforcement bodies; on further pursuing the public administration reform and on building an accountable, efficient, effective, transparent and professional civil service; and on continuing effective fight against corruption, particularly in view of enhancing international cooperation on combating corruption, and ensuring effective implementation of relevant international legal instruments, such as the United Nations Convention Against Corruption of 2003.

Article 5

Foreign and security policy

1.  The Parties shall intensify their dialogue and cooperation and promote gradual convergence in the area of foreign and security policy, including the common security and defence policy, and shall address in particular issues of conflict prevention, peaceful conflict resolution and crisis management, regional stability, disarmament, non-proliferation, arms control and export control. Cooperation shall be based on common values and mutual interests, and shall aim at increasing policy convergence and effectiveness, making use of bilateral, international and regional fora.

2.  The Parties reaffirm their commitment to the principles of territorial integrity, inviolability of internationally recognised borders, sovereignty and independence, as established in the Charter of the United Nations and the Helsinki Final Act of 1975 of the Conference on Security and Cooperation in Europe, and their commitment to promote these principles in their bilateral and multilateral relations. The Parties also underline their full support for the principle of host nation consent on stationing foreign armed forces on their territories. They agree that the stationing of foreign armed forces on their territory should take place with the explicit consent of the host state, in accordance with international law.

Article 6

Serious crimes of international concern

1.  The Parties reaffirm that the most serious crimes of concern to the international community as a whole must not go unpunished and that impunity for such crimes must be avoided by taking measures at national and international level including the International Criminal Court.

2.  The Parties consider that the establishment and effective functioning of the International Criminal Court constitutes an important development for international peace and justice. The Parties reaffirm their commitment to continue to cooperate with the International Criminal Court by implementing the Rome Statute of the International Criminal Court and its related instruments, giving due regard to preserving its integrity.

Article 7

Conflict prevention and crisis management

The Parties shall enhance practical cooperation in conflict prevention and crisis management, in particular with a view to possible participation of Georgia in EU-led civilian and military crisis management operations as well as relevant exercises and training, on a case-by-case basis and following possible invitation by the EU.

Article 8

Regional stability

1.  The Parties shall intensify their joint efforts to promote stability, security and democratic development in the region, as well as to work to further promote regional cooperation in various formats and, in particular, shall work towards peaceful settlement of the unresolved conflicts in the region.

2.  These efforts shall follow commonly shared principles of maintaining international peace and security as established by the Charter of the United Nations, the Helsinki Final Act of 1975 of the Conference on Security and Cooperation in Europe and other relevant multilateral documents. The Parties shall also make full use of the multilateral framework of the Eastern Partnership that provides for cooperation activities and open and free dialogue, fostering links among partners countries themselves.

Article 9

Peaceful conflict resolution

1.  The Parties reiterate their commitment to peaceful conflict resolution in full respect of the sovereignty and territorial integrity of Georgia within its internationally recognised borders as well as to facilitating jointly post-conflict rehabilitation and reconciliation efforts. Pending sustainable solution to conflict and without prejudice to the existing formats for addressing conflict-related issues, peaceful conflict resolution will constitute one of the central subjects on the agenda of political dialogue between the Parties, as well as in the dialogue with other relevant international actors.

2.  The Parties recognise the importance of the commitment of Georgia to reconciliation and its efforts to restore its territorial integrity in pursuit of a peaceful and lasting conflict resolution, of pursuing the full implementation of the Six-Point Agreement of 12 August 2008 and its subsequent implementing measures, of pursuing mutually supportive non-recognition and engagement policies, of supporting the Geneva International Discussions and of safe and dignified return of all internally displaced persons and refugees to their habitual places of residence in line with principles of international law; and of a meaningful international field involvement, including, as appropriate, that of the EU.

3.  The Parties shall coordinate, also with other relevant international organisations, their efforts to contribute to peaceful conflict resolution in Georgia, including in relation to humanitarian issues.

4.  All these efforts shall follow commonly shared principles of maintaining international peace and security as established by the Charter of the United Nations, the Helsinki Final Act of 1975 of the Conference on Security and Cooperation in Europe and other relevant multilateral documents.

Article 10

Weapons of mass destruction

1.  The Parties consider that the proliferation of weapons of mass destruction (WMD) and their means of delivery, both to state and non-state actors, represents one of the most serious threats to international peace and stability. The Parties therefore agree to cooperate and to contribute to countering the proliferation of WMD and their means of delivery through full compliance with, and national implementation of, their existing obligations under international disarmament and non-proliferation treaties and agreements, and other relevant international obligations. The Parties agree that this provision constitutes an essential element of this Agreement.

2.  The Parties furthermore agree to cooperate and to contribute to countering the proliferation of WMD and their means of delivery by:

3.  The Parties agree to address these issues in their political dialogue.

Article 11

Small arms and light weapons and conventional arms exports control

1.  The Parties recognise that the illicit manufacture, transfer and circulation of small arms and light weapons (SALW), including their ammunition, and their excessive accumulation, poor management, inadequately secured stockpiles and uncontrolled spread continue to pose a serious threat to peace and international security.

2.  The Parties agree to observe and fully implement their respective obligations to deal with the illicit trade in SALW, including their ammunition, under existing international agreements and UN Security Council resolutions, as well as their commitments within the framework of other international instruments applicable in this area, such as the United Nations Programme of Action to prevent, combat and eradicate the illicit trade in SALW in all its aspects.

3.  The Parties shall undertake to cooperate and to ensure coordination, complementarity and synergy in their efforts to deal with the illicit trade in SALW, including their ammunition, and the destruction of excessive stockpiles, at global, regional, sub-regional and national levels.

4.  Furthermore, the Parties agree to continue to cooperate in the area of conventional arms export control, in the light of the Council Common Position 2008/944/CFSP of 8 December 2008 defining common rules governing control of exports of military technology and equipment.

5.  The Parties agree to address these issues in their political dialogue.

Article 12

Fight against terrorism

1.  The Parties reaffirm the importance of the fight against and the prevention of terrorism and agree to work together at bilateral, regional and international level to prevent and combat terrorism in all its forms and manifestations.

2.  The Parties agree that the fight against terrorism must be conducted with full respect for the rule of law and in full conformity with international law including international human rights law, international refugee law and international humanitarian law, the principles of the Charter of the United Nations, and all relevant international counter-terrorism related instruments.

3.  The Parties stress the importance of the universal ratification and full implementation of all UN counter-terrorism related conventions and protocols. The Parties agree to continue to promote dialogue on the draft Comprehensive Convention on International Terrorism and to cooperate in the implementation of the United Nations Global Counter-Terrorism Strategy, as well as all relevant UN Security Council resolutions and Council of Europe conventions. The Parties also agree to cooperate to promote international consensus on the prevention of and fight against terrorism.

TITLE III

FREEDOM, SECURITY AND JUSTICE

Article 13

Rule of law and respect for human rights and fundamental freedoms

1.  In their cooperation in the area of freedom, security and justice the Parties shall attach particular importance to further promoting the rule of law, including the independence of the judiciary, access to justice, and the right to a fair trial.

2.  The Parties will cooperate fully on the effective functioning of institutions in the areas of law enforcement and the administration of justice.

3.  Respect for human rights and fundamental freedoms will guide all cooperation on freedom, security and justice.

Article 14

Protection of personal data

The Parties agree to cooperate in order to ensure a high level of protection of personal data in accordance with the EU, Council of Europe and international legal instruments and standards referred to in Annex I to this Agreement.

Article 15

Cooperation on migration, asylum and border management

1.  The Parties reaffirm the importance of a joint management of migration flows between their territories and shall establish a comprehensive dialogue on all migration-related issues, including legal migration, international protection and the fight against illegal migration, smuggling and trafficking in human beings.

2.  Cooperation will be based on specific needs assessments conducted in mutual consultation between the Parties and be implemented in accordance with their relevant legislation in force. It will, in particular, focus on:

3.  Cooperation may also facilitate circular migration for the benefit of development.

Article 16

Movement of persons and readmission

1.  The Parties will ensure the full implementation of:

2.  The Parties shall continue to endeavour to enhance mobility of citizens and shall take gradual steps towards the shared objective of a visa-free regime in due course, provided that the conditions for well-managed and secure mobility set out in the two-phase Action Plan on Visa Liberalisation are in place.

Article 17

The fight against organised crime and corruption

1.  The Parties shall cooperate on combating and preventing criminal and illegal activities, in particular transnational activities, organised or otherwise, such as:

2.  The Parties shall enhance bilateral, regional and international cooperation among law enforcement bodies including developing cooperation between Europol and the relevant authorities of Georgia. The Parties are committed to implementing effectively the relevant international standards, and in particular those enshrined in the United Nations Convention against Transnational Organised Crime (UNTOC) of 2000 and the three Protocols thereto and in the United Nations Convention against Corruption of 2003.

Article 18

Illicit drugs

1.  Within their respective powers and competencies, the Parties shall cooperate to ensure a balanced and integrated approach towards drug issues. Drug policies and actions shall be aimed at reinforcing structures for preventing and combating illicit drugs, reducing the supply of, trafficking in and the demand for illicit drugs, addressing the health and social consequences of drug abuse with a view to reducing harm as well as at a more effective prevention of diversion of chemical precursors used for the illicit manufacture of narcotic drugs and psychotropic substances.

2.  The Parties shall agree on the necessary methods of cooperation to attain these objectives. Actions shall be based on commonly agreed principles along the lines of the relevant international conventions, and the EU Drug Strategy (2013-20), the Political Declaration on the guiding principles of drug demand reduction, approved by the Twentieth United Nations General Assembly Special Session on Drugs in June 1998.

Article 19

Money laundering and terrorism financing

1.  The Parties shall cooperate in order to prevent the use of their financial and relevant non-financial systems to launder the proceeds of criminal activities in general and drug offences in particular, as well as for the purpose of terrorism financing.

This cooperation extends to the recovery of assets or funds derived from the proceeds of crime.

2.  Cooperation in this area shall allow exchanges of relevant information within the framework of respective legislation and the adoption of appropriate standards to prevent and combat money laundering and financing of terrorism equivalent to those adopted by relevant international bodies active in this area, such as the Financial Action Task Force on Money Laundering (FATF).

Article 20

Cooperation in the fight against terrorism

1.  In full accordance with the principles underlying the fight against terrorism as set out in Article 12 of this Agreement, the Parties reaffirm the importance of a law enforcement and judicial approach to the fight against terrorism and agree to cooperate in the prevention and suppression of terrorism in particular by:

2.  Cooperation shall be based on relevant available assessments, such as those of the relevant bodies of the UN and the Council of Europe and conducted in mutual consultation between the Parties.

Article 21

Legal cooperation

1.  The Parties agree to develop judicial cooperation in civil and commercial matters as regards the negotiation, ratification and implementation of multilateral conventions on civil judicial cooperation and, in particular, the conventions of the Hague Conference on Private International Law in the field of international legal cooperation and litigation as well as the protection of children.

2.  As regards judicial cooperation in criminal matters, the Parties will seek to enhance cooperation on mutual legal assistance on the basis of relevant multilateral agreements. This would include, where appropriate, accession to, and implementation of, the relevant international instruments of the UN and the Council of Europe and closer cooperation with Eurojust.

TITLE IV

TRADE AND TRADE-RELATED MATTERS

CHAPTER 1

National Treatment and Market Access For Goods

Section 1

Common Provisions

Article 22

Objective

The Parties shall establish a free trade area starting from the entry into force of this Agreement, in accordance with the provisions of this Agreement and in conformity with Article XXIV of the General Agreement on Tariffs and Trade 1994 (GATT 1994).

Article 23

Scope and coverage

1.  The provisions of this Chapter shall apply to trade in goods ( 1 ) between the Parties.

2.  For the purposes of this Chapter, ‘originating’ means qualifying under the rules of origin set out in Protocol I to this Agreement.

Section 2

Elimination of customs duties, fees and other charges

Article 24

Definition of customs duties

For the purposes of this Chapter, a ‘customs duty’ includes any duty or charge of any kind imposed on, or in connection with, the import or export of a good, including any form of surtax or surcharge imposed on or in connection with such import or export. A ‘customs duty’ does not include any:

Article 25

Classification of goods

The classification of goods in trade between the Parties shall be that set out in each Party's respective tariff nomenclature in conformity with the 2012 Harmonised System based on the International Convention on the Harmonised Commodity Description and Coding System of 1983 (HS) and subsequent amendments thereto.

Article 26

Elimination of customs duties on imports

1.  The Parties shall eliminate all customs duties on goods originating in the other Party as from the date of entry into force of this Agreement except as provided in paragraphs 2 and 3 of this Article and without prejudice to paragraph 4 of this Article.

2.  The products listed in Annex II-A to this Agreement shall be imported into the Union free of customs duties within the limits of the tariff rate quotas set out in that Annex. The most-favoured-nation (MFN) customs duty rate shall apply to imports exceeding the tariff rate quota limit.

3.  The products listed in Annex II-B to this Agreement shall be subject to an import duty when imported into the Union with exemption of the ad valorem component of that import duty.

4.  The import of products originating in Georgia listed in Annex II-C to this Agreement shall be subject to the anti-circumvention mechanism set out in Article 27 of this Agreement.

5.  After five years from the entry into force of this Agreement, at the request of either Party, the Parties shall consult to consider broadening the scope of the liberalisation of customs duties in the trade between the Parties. A decision under this paragraph shall be made by the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement.

Article 27

Anti-circumvention mechanism for agricultural products and processed agricultural products

1.  The products listed in Annex II-C to this Agreement are subject to the anti-circumvention mechanism set out in this Article. The average annual volume of imports from Georgia into the Union for each category of those products is provided in Annex II-C to this Agreement.

2.  When the volume of imports of one or more categories of products referred to in paragraph 1 reaches 70 % of the volume indicated in Annex II-C to this Agreement in any given year starting on 1 January, the Union shall notify Georgia about the volume of imports of ►C1  the product(s) concerned. ◄ Following this notification and within 14 calendar days from the date on which the volume of imports of one or more categories of products referred to in paragraph 1 reaches 80 % of the volume indicated in Annex II-C to this Agreement, Georgia shall provide the Union with a sound justification that Georgia has the capacity to produce the products for export into the Union in excess of the volumes set out in that Annex. If those imports reach 100 % of the volume indicated in Annex II-C to this Agreement, and in the absence of a sound justification by Georgia, the Union may temporarily suspend the preferential treatment for the products concerned.

The suspension shall be applicable for a period of six months and shall take effect on the date of publication of the decision to suspend preferential treatment in the Official Journal of the European Union.

3.  All temporary suspensions adopted pursuant to paragraph 2 shall be notified by the Union to Georgia without undue delay.

4.  A temporary suspension shall be lifted before the expiry of six months from its entry into force by the Union if Georgia provides robust and satisfactory evidence within the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, that the volume of the relevant category of products imported in excess of the volume referred to in Annex II-C to this Agreement results from a change in the level of production and export capacity of Georgia for the product(s) concerned.

5.  Annex II-C to this Agreement may be amended and the volume modified by mutual consent of the Union and Georgia in the Association Committee in Trade configuration at the request of Georgia, in order to reflect changes in the level of production and export capacity of Georgia for the product(s) concerned.

Article 28

Standstill

Neither Party may adopt any new customs duty, on a good originating in the other Party or may increase any customs duty applied on the date of entry into force of this Agreement. This shall not preclude that either Party may maintain or increase a customs duty as authorised by the Dispute Settlement Body (DSB) of the WTO.

Article 29

Customs duties on exports

Neither Party shall adopt or maintain any customs duty or tax, other than internal charges applied in conformity with Article 30 of this Agreement, on, or in connection with, the export of goods to the territory of the other Party.

Article 30

Fees and other charges

Each Party shall ensure, in accordance with Article VIII of GATT 1994 and the interpretative notes thereon, that all fees and charges of whatever character other than customs duties or other measures referred to in Article 26 of this Agreement, imposed on, or in connection with, the import or export of goods are limited in amount to the approximate cost of services rendered and do not represent an indirect protection to domestic goods or a taxation of imports or exports for fiscal purposes.

Section 3

Non-tariff measures

Article 31

National treatment

Each Party shall accord national treatment to the goods of the other Party in accordance with Article III of GATT 1994, including the interpretative notes thereon. To that end, Article III of GATT 1994 and the interpretative notes thereon are incorporated into this Agreement and made an integral part thereof.

Article 32

Import and export restrictions

Neither Party shall adopt or maintain any prohibition or restriction on the import of any good of the other Party or on the export or sale for export of any good destined for the territory of the other Party, except as otherwise provided in this Agreement or in accordance with Article XI of GATT 1994 and the interpretative notes thereon. To that end, Article XI of GATT 1994 and the interpretative notes thereon are incorporated into this Agreement and made an integral part thereof.

Section 4

Specific provisions related to goods

Article 33

General exceptions

Nothing in this Chapter shall be construed to prevent the adoption or enforcement by any Party of measures in accordance with Articles XX and XXI of GATT 1994 and any relevant interpretative notes to those Articles under GATT 1994, which are hereby incorporated into this Agreement and made an integral part thereof.

Section 5

Administrative cooperation and coordination with other countries

Article 34

Temporary withdrawal of preferences

1.  The Parties agree that administrative cooperation and assistance is essential for the implementation and the control of preferential tariff treatment granted under this Chapter and underline their commitment to combat irregularities and fraud in customs and related matters.

2.  Where a Party has made a finding, on the basis of objective information, of a failure of the other Party to provide administrative cooperation or assistance and/or of irregularities or fraud under this Chapter, the Party concerned may temporarily suspend the relevant preferential treatment of the product(s) concerned in accordance with this Article.

3.  For the purposes of this Article, a failure to provide administrative cooperation or assistance shall mean, inter alia:

4.  For the purposes of this Article, a finding of irregularities or fraud may be made, inter alia, where there is a rapid increase, without satisfactory explanation, in the volume of imports of goods exceeding the usual level of production and export capacity of the other Party that is linked to objective information concerning irregularities or fraud.

5.  The application of a temporary suspension shall be subject to the following conditions:

6.  Each Party shall publish in accordance with its internal procedures, notices to importers concerning any: notification referred to in paragraph 5(a); decision referred to in paragraph 5(b); and extension or termination referred to in paragraph 5(c).

Article 35

Management of administrative errors

In case of an error by the competent authorities in the proper management of the preferential system at export, and in particular in the application of the provisions of Protocol I to this Agreement concerning the definition of originating products and methods of administrative cooperation, where this error leads to consequences in terms of import duties, the Party facing such consequences may request the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, to examine the possibilities of adopting all appropriate measures with a view to resolving the situation.

Article 36

Agreements with other countries

1.  This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier traffic except in so far as they conflict with trade arrangements provided for in this Agreement.

2.  Consultations between the Parties shall take place within the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, at the request of either Party, concerning agreements establishing customs unions, free trade areas or arrangements for frontier traffic and on other major issues related to their respective trade policy with third countries. In particular in the event of a third country acceding to the EU, such consultations shall take place so as to ensure that account be taken of the mutual interests of the Union and Georgia as stated in this Agreement.

CHAPTER 2

Trade remedies

Section 1

Global safeguard measures

Article 37

General provisions

1.  The Parties confirm their rights and obligations under Article XIX of GATT 1994 and the Agreement on Safeguards contained in Annex 1A to the WTO Agreement (‘Agreement on Safeguards’) and Article 5 of the Agreement on Agriculture, contained in Annex 1A to the WTO Agreement (‘Agreement on Agriculture’).

2.  The preferential rules of origin established under Chapter 1 (National Treatment and Market Access for Goods) of Title IV (Trade and Trade-related Matters) of this Agreement shall not apply to this Section.

3.  The provisions of this Section shall not be subject to Chapter 14 (Dispute Settlement) of Title IV (Trade and Trade-related Matters) of this Agreement.

Article 38

Transparency

1.  The Party initiating a safeguard investigation shall notify the other Party of such initiation provided the latter has a substantial economic interest.

2.  Notwithstanding Article 37 of this Agreement, at the request of the other Party, the Party initiating a safeguard investigation and intending to apply safeguard measures shall provide immediately ad hoc written notification of all the pertinent information leading to the initiation of a safeguard investigation and the imposition of safeguard measures, including, where relevant, information on the initiation of a safeguard investigation, on the provisional findings and on the final findings of the investigation, as well as offer the possibility for consultations to the other Party.

3.  For the purposes of this Article, a Party shall be considered as having a substantial economic interest when it is among the five largest suppliers of the imported product during the most recent three-year period of time, measured in terms of either absolute volume or value.

Article 39

Application of measures

1.  When imposing safeguard measures, the Parties shall endeavour to impose them in a way that affects their bilateral trade the least.

2.  For the purposes of paragraph 1 of this Article, if a Party considers that the legal requirements for the imposition of definitive safeguard measures are met and intends to apply such measures, that Party shall notify the other Party and give the latter the possibility to hold bilateral consultations. If no satisfactory solution has been reached within 30 days of the notification, the importing Party may adopt the appropriate measures to remedy the problem.

Section 2

Anti-dumping and countervailing measures

Article 40

General provisions

1.  The Parties confirm their rights and obligations under Article VI of GATT 1994, the Agreement on Implementation of Article VI of GATT 1994, contained in Annex 1A to the WTO Agreement (‘Anti-Dumping Agreement’) and the Agreement on Subsidies and Countervailing Measures, contained in Annex 1A to the WTO Agreement (‘SCM Agreement’).

2.  The preferential rules of origin established under Chapter 1 (National Treatment and Market Access for Goods) of Title IV (Trade and Trade-related Matters) of this Agreement shall not apply to this Section.

3.  The provisions of this Section shall not be subject to Chapter 14 (Dispute Settlement) of Title IV (Trade and Trade-related Matters) of this Agreement.

Article 41

Transparency

1.  The Parties agree that anti-dumping and countervailing measures should be used in full compliance with the requirements of the Anti-Dumping Agreement and the SCM Agreement, respectively, and should be based on a fair and transparent system.

2.  The Parties shall ensure, immediately after the imposition of provisional measures and before the final determination is made, full and meaningful disclosure of all essential facts and considerations which form the basis for the decision to apply measures, without prejudice to Article 6.5 of the Anti-Dumping Agreement and Article 12.4 of the SCM Agreement. Disclosures shall be made in writing and allow interested parties sufficient time to make their comments.

3.  Provided it does not unnecessarily delay the conduct of the investigation, each interested Party shall be granted the possibility to be heard in order to express their views during anti-dumping and anti-subsidy investigations.

Article 42

Consideration of public interest

Anti-dumping or countervailing measures may not be applied by a Party where, on the basis of the information made available during the investigation, it can clearly be concluded that it is not in the public interest to apply such measures. The public interest determination shall be based on an appreciation of all the various interests taken as a whole, including the interests of the domestic industry, users, consumers and importers to the extent that they have provided relevant information to the investigating authorities.

Article 43

Lesser duty rule

Should a Party decide to impose a provisional or a definitive anti-dumping or a countervailing duty, the amount of such duty shall not exceed the margin of dumping or the total amount of countervailable subsidies, but it should be less than the margin of dumping or the total amount of countervailable subsidies if such a lesser duty would be adequate to remove the injury to the domestic industry.

CHAPTER 3

Technical barriers to trade, standardisation, metrology, accreditation and conformity assessment

Article 44

Scope and definitions

1.  This Chapter applies to the preparation, adoption and application of standards, technical regulations, and conformity assessment procedures as defined in the Agreement on Technical Barriers to Trade, contained in Annex 1A to the WTO Agreement (‘TBT Agreement’) that may affect trade in goods between the Parties.

2.  Notwithstanding paragraph 1, this Chapter does not apply to sanitary and phytosanitary measures as defined in Annex A to the Agreement on the Application of Sanitary and Phytosanitary Measures, contained in Annex 1A to the WTO Agreement (‘SPS Agreement’), nor to purchasing specifications prepared by public authorities for their own production or consumption requirements.

3.  For the purposes of this Chapter, the definitions of ►C1  Annex 1 to ◄ the TBT Agreement shall apply.

Article 45

Affirmation of the TBT Agreement

The Parties affirm their existing rights and obligations with respect to each other under the TBT Agreement which is hereby incorporated into this Agreement and made an integral part thereof.

Article 46

Technical cooperation

1.  The Parties shall strengthen their cooperation in the field of standards, technical regulations, metrology, market surveillance, accreditation and conformity assessment systems with a view to increasing the mutual understanding of their respective systems and facilitating access to their respective markets. To that end, they may establish regulatory dialogues at both horizontal and sectoral levels.

2.  In their cooperation, the Parties shall seek to identify, develop and promote trade facilitating initiatives which may include, but are not limited to:

Article 47

Approximation of technical regulations, standards, and conformity assessment

1.  Having regard to its priorities for approximation in different sectors, Georgia shall take the measures necessary in order to gradually achieve approximation with the Union's technical regulations, standards, metrology, accreditation, conformity assessment, corresponding systems and market surveillance system, and undertakes to follow the principles and the practice laid down in the relevant Union acquis (indicative list in Annex III-B to this Agreement). A list of the measures for approximation is set out in Annex III-A to this Agreement, which may be amended by a decision of the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement.

2.  With a view to reaching these objectives, Georgia shall:

3.  Georgia shall refrain from amending its horizontal and sectoral legislation in the priority areas for approximation, except for approximating such legislation progressively to the corresponding Union acquis and for maintaining such approximation; and shall notify the Union of such changes in its domestic legislation.

4.  Georgia shall ensure and facilitate the participation of its relevant national bodies in the European and international organisations for standardisation, legal and fundamental metrology, and conformity assessment, including accreditation, in accordance with the respective areas of activity of those bodies and the membership status available to them.

5.  With a view to integrating its standardisation system, Georgia shall use best endeavours to ensure that its standards body:

Article 48

Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA)

The Parties may ultimately agree to add an Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) as a Protocol to this Agreement covering one or more sectors agreed upon following verification by the Union that the relevant Georgian horizontal and sectoral legislation, institutions and standards have been fully approximated to those of the Union. Such an ACAA will provide that trade between the Parties in products in the sectors that it covers shall take place under the same conditions as those applying to trade in such products between the Member States.

Article 49

Marking and labelling

1.  Without prejudice to the provisions of Articles 47 and 48 of this Agreement, and with respect to technical regulations relating to labelling or marking requirements, the Parties reaffirm the principles of Chapter 2.2 of the TBT Agreement that such requirements are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to international trade. For this purpose, such labelling or marking requirements shall not be more trade-restrictive than necessary to fulfil a legitimate objective, taking account of the risks that non-fulfilment would create.

2.  Regarding obligatory marking or labelling in particular, the Parties agree that:

CHAPTER 4

Sanitary and phytosanitary measures

Article 50

Objective

1.  The objective of this Chapter is to facilitate trade in commodities covered by sanitary and phytosanitary measures (SPS measures), including all measures listed in Annex IV to this Agreement, between the Parties, whilst safeguarding human, animal or plant life or health, by:

2.  This Chapter also aims at reaching a common understanding between the Parties concerning animal welfare standards.

Article 51

Multilateral obligations

The Parties re-affirm their rights and obligations under the WTO Agreements, and in particular the SPS Agreement.

Article 52

Scope

This Chapter shall apply to all sanitary and phytosanitary measures of a Party that may, directly or indirectly, affect trade between the Parties, including all measures listed in Annex IV to this Agreement. This scope is without prejudice to the scope of approximation as set out in Article 55 of this Agreement.

Article 53

Definitions

For the purposes of this Chapter, the following definitions shall apply:

Article 54

Competent authorities

The Parties shall inform each other about the structure, organisation and division of competences of their competent authorities during the first meeting of the Sanitary and Phytosanitary Sub-Committee referred to in Article 65 of this Agreement (‘SPS Sub-Committee’). The Parties shall inform each other of any change of the structure, organisation and division of competences, including of the contact points, concerning such competent authorities.

Article 55

Gradual approximation

1.  Georgia shall continue to gradually approximate its sanitary and phytosanitary, animal welfare and other legislative measures as laid down in Annex IV to this Agreement to that of the Union in accordance with the principles and procedure set out in Annex XI to this Agreement.

2.  The Parties shall cooperate on gradual approximation and capacity building.

3.  The SPS Sub-Committee shall regularly monitor the implementation of the approximation process set out in Annex XI to this Agreement in order to provide necessary recommendations on approximation.

4.  No later than six months after the entry into force of this Agreement, Georgia shall submit a list of the EU sanitary and phytosanitary, animal welfare and other legislative measures as defined in Annex IV to this Agreement that Georgia will approximate. The list shall be divided into priority areas, in which trade in a specific commodity or a group of commodities will be facilitated by means of approximation. This approximation list shall serve as a reference document for the implementation of this Chapter.

Article 56

Recognition for trade purposes of animal health and pest status and regional conditions

Recognition of status for animal diseases, infections in animals or pests

1.  As regards animal diseases and infections in animals (including zoonosis), the following shall apply:

2.  As regards pests, the following shall apply:

Recognition of regionalisation/zoning, pest free areas (PFAs) and protected zones (PZs)

3.  The Parties recognise the concept of regionalisation and PFAs as specified in the relevant International Plant Protection Convention of 1997 (IPPC) and the International Standards for Phytosanitary Measures (ISPMs) of the Food and Agriculture Organisation (FAO), and of protected zones in accordance with Directive 2000/29/EC, which they agree to apply to trade between them.

4.  The Parties agree that regionalisation decisions for animal and fish diseases listed in Annex V-A to this Agreement and for pests listed in Annex V-B to this Agreement shall be taken in accordance with the provisions of Part A and B of Annex VI to this Agreement.

5.  As regards animal diseases in accordance with the provisions of Article 58 of this Agreement the exporting Party seeking recognition of its regionalisation decision by the importing Party shall notify its measures with full explanations and supporting data for its determinations and decisions. Without prejudice to Article 59 of this Agreement, and unless the importing Party raises an explicit objection and requests additional information, consultations and/or verification within 15 working days following receipt of the notification, the regionalisation decision so notified shall be deemed accepted.

The consultations referred to in the first subparagraph of this paragraph shall take place in accordance with Article 59(3) of this Agreement. The importing Party shall assess the additional information within 15 working days following receipt of the additional information. The verification referred to in the first subparagraph of this paragraph shall be carried out in accordance with Article 62 of this Agreement within 25 working days following receipt of the request for verification.

6.  As regards pests, each Party shall ensure that trade in plants, plant products and other objects takes account, as appropriate, of the pest status in an area recognised as a protected zone or as a PFA by the other Party. A Party seeking recognition of its PFA by the other Party shall notify its measures and, upon request, provide full explanation and supporting data for its establishment and maintenance, as guided by appropriate FAO or IPPC standards, including ISPMs. Without prejudice to Article 64 of this Agreement, and unless a Party raises an explicit objection and requests additional information, consultations and/or verification within three months following the notification, the regionalisation decision for PFA so notified shall be ►C1  deemed accepted. ◄

The consultations referred to in the first subparagraph of this paragraph shall take place in accordance with Article 59(3) of this Agreement. The importing Party shall assess the additional information within three months following the receipt of the additional information. The verification referred to in the first subparagraph of this paragraph shall be carried out in accordance with Article 62 of this Agreement within 12 months following the receipt of the request for verification, taking into account the biology of the pest and the crop concerned.

7.  After finalisation of the procedures of paragraphs 4 to 6, and without prejudice to Article 64 of this Agreement, each Party shall take, without undue delay, the necessary legislative and administrative measures to allow trade on that basis.

Compartmentalisation

8.  The Parties may engage in further discussions with regard to the issue of compartmentalisation.

Article 57

Recognition of equivalence

1.  Equivalence may be recognised in relation to:

2.  As regards recognition of equivalence the Parties shall follow the process set out in paragraph 3 of this Article. This process shall include an objective demonstration of equivalence by the exporting Party and an objective assessment of the request by the importing Party. This assessment may include inspections or verifications.

3.  Upon request of the exporting Party concerning recognition of equivalence as set out in paragraph 1 of this Article the Parties shall without delay and no later than three months following the receipt of such a request by the importing Party, initiate the consultation process which includes the steps set out in Annex VIII to this Agreement. In case of multiple requests from the exporting Party, the Parties, upon request of the importing Party, shall agree within the SPS Sub-Committee referred to in Article 65 of this Agreement on a time schedule in which they shall initiate and conduct the process referred to in this paragraph.

4.  Georgia shall notify the Union as soon as approximation is achieved in relation to a measure, a group of measures or a system as set out in paragraph 1 of this Article as a result of the monitoring provided for in Article 55(3) of this Agreement. This fact shall be considered as a basis for a request of Georgia to initiate the process of the recognition of equivalence of the measures concerned, as set out in paragraph 3 of this Article.

5.  Unless otherwise agreed, the importing Party shall finalise the process for recognition of equivalence referred to in paragraph 3 of this Article within 360 days after the receipt of the request of the exporting Party, including a dossier demonstrating the equivalence. This time-limit may be extended with regard to seasonal crops when it is justifiable to delay the assessment to permit verification during a suitable period of growth of a crop.

6.  The importing Party determines equivalence as regards plants, plant products and other objects in accordance with the relevant ISPMs.

7.  The importing Party may withdraw or suspend equivalence on the basis of any amendment by one of the Parties of measures affecting equivalence, provided that the following procedure is followed:

8.  The recognition, suspension or withdrawal of equivalence rests solely with the importing Party acting in accordance with its administrative and legislative framework. That Party shall provide to the exporting Party in writing full explanation and supporting data used for the determinations and decisions covered by this Article. In case of non-recognition, suspension or withdrawal of equivalence, the importing Party shall indicate to the exporting Party the required conditions on the basis of which the process referred to in paragraph 3 may be reinitiated.

9.  Without prejudice to Article 64 of this Agreement, the importing Party may not withdraw or suspend equivalence before the proposed new measures of either Party enter into force.

10.  In case equivalence is formally recognised by the importing Party, on the basis of the consultation process as set out in Annex VIII to this Agreement, the SPS Sub-Committee shall, in accordance with the procedure set out in Article 65(5) of this Agreement, declare the recognition of equivalence in trade between the Parties. This decision may also provide for the reduction of physical checks at the frontiers, simplification of certificates and pre-listing procedures for the establishments, as applicable.

The status of recognition of equivalence shall be listed in Annex XII to this Agreement.

Article 58

Transparency and exchange of information

1.  Without prejudice to Article 59 of this Agreement, the Parties shall cooperate to enhance mutual understanding of the other Party's official control structure and mechanisms tasked with the application of the measures listed in Annex IV to this Agreement and of the performance of such structure and mechanism. This can be achieved, inter alia, through reports of international audits when these are made public and the Parties can exchange information on the results of such audits or other information, as appropriate.

2.  In the framework of approximation of legislation as referred to in Article 55 of this Agreement or of recognition of equivalence as referred to in Article 57 of this Agreement, the Parties shall keep each other informed of legislative or procedural changes adopted in the concerned areas.

3.  In this context, the Union shall inform Georgia well in advance of changes to the Union legislation to allow Georgia to consider modification of its legislation accordingly.

The necessary level of cooperation should be reached in order to facilitate transmission of legislative documents upon request of one of the Parties.

To this effect, each Party shall notify the other Party of its contact points. The Parties shall also notify each other of any changes to the contact points.

Article 59

Notification, consultation and facilitation of communication

1.  Each Party shall notify in writing the other Party within two working days of any serious or significant human, animal or plant health risk, including any food control emergencies or situations where there is a clearly identified risk of serious health effects associated with the consumption of animal or plant products, in particular:

2.  Notifications shall be made in writing to the contact points referred to in Article 58(1) of this Agreement.

A notification in writing means notification by mail, fax or e-mail.

3.  Where a Party has serious concerns regarding a risk to human, animal or plant health, consultations regarding the situation shall, upon request of that Party, take place as soon as possible and, in any case, within 15 working days from the date of that request. In such situations, each Party shall endeavour to provide all the information necessary to avoid a disruption in trade, and to reach a mutually acceptable solution consistent with the protection of human, animal or plant health.

4.  Upon request of a Party, consultations regarding animal welfare shall take place as soon as possible and, in any case, within 20 working days from the date of notification. In such situations, each Party shall endeavour to provide all the requested information.

5.  Upon request of a Party, consultations as referred to in paragraphs 3 and 4 of this Article shall be held by video or audio conference. The requesting Party shall ensure the preparation of the minutes of the consultation, which shall be formally approved by the Parties. For the purposes of this approval, the provisions of Article 58(3) of this Agreement shall apply.

6.  A mutually applied rapid alert system and early warning mechanism for any veterinary and phytosanitary emergencies will start at a later stage after Georgia implements the necessary legislation in this field and creates conditions for their proper working on the spot.

Article 60

Trade conditions

1.  Import conditions prior to recognition of equivalence:

2.  Import conditions after recognition of equivalence:

3.  From the date of entry into force of this Agreement, the commodities referred to Annexes IV-A and IV-C(2) to this Agreement shall not be subject to an import permit between the Parties.

4.  For conditions affecting trade of the commodities referred to in paragraph 1(a) of this Article, upon request of the exporting Party, the Parties shall enter into consultations within the SPS Sub-Committee in accordance with the provisions of Article 65 of this Agreement, in order to agree on alternative or additional import conditions of the importing Party. Such alternative or additional import conditions may, when appropriate, be based on measures of the exporting Party recognised as equivalent by the importing Party. If agreed, the importing Party shall within 90 days take the necessary legislative and/or administrative measures to allow import on the basis of the agreed import conditions.

5.  List of establishments, provisional approval

The initial list of establishments shall be approved in accordance with the provisions of Annex VII to this Agreement.

6.  Upon request of a Party, the other Party shall provide the necessary explanation and the supporting data for the determinations and decisions covered by this Article.

Article 61

Certification procedure

1.  For purposes of certification procedures and issuing of certificates and official documents the parties agree on the principles set out in Annex X to this Agreement.

2.  The SPS Sub-Committee referred to in Article 65 of this Agreement may agree on the rules to be followed in case of electronic certification, withdrawal or replacement of certificates.

3.  In the framework of approximated legislation as referred to in Article 55 of this Agreement, the Parties shall agree on common models of certificates, where applicable.

Article 62

Verification

1.  In order to maintain confidence in the effective implementation of the provisions of this Chapter each Party has the right:

2.  Either Party may share the results of the verifications referred to in paragraph 1(a) of this Article with third parties and make the results publicly available as may be required by provisions applicable to either Party. Confidentiality provisions applicable to either Party shall be respected in such sharing and/or publication of the results, where appropriate.

3.  If the importing Party decides to carry out a verification visit to the exporting Party, the importing Party shall notify the exporting Party of this verification visit at least 60 working days before the verification visit is to be carried out, except in emergency cases or if the Parties agree otherwise. Any modification to this visit shall be agreed by the Parties.

4.  The costs incurred in undertaking a verification of all or part of the other Party's competent authorities' inspection and certification systems and/or other measure, where applicable, shall be borne by the Party carrying out the verification or the inspection.

5.  The draft written communication of verifications shall be forwarded to the exporting Party within 60 working days after the end of verification. The exporting Party shall have 45 working days to comment on the draft written communication. Comments made by the exporting Party shall be attached to and, where appropriate included in the final outcome. However, where a significant human, animal or plant health risk has been identified during the verification, the exporting Party shall be informed as quickly as possible and in any case within 10 working days following the end of the verification.

6.  For clarity the results of verification may contribute to the procedures referred to in Articles 55, 57 and 63 of this Agreement conducted by the Parties or one of the Parties.

Article 63

Import checks and inspection fees

1.  The Parties agree that import checks by the importing Party of consignments from the exporting Party shall respect the principles set out in Part A of Annex IX to this Agreement. The results of these checks may contribute to the verification process referred to in Article 62 of this Agreement.

2.  The frequencies of physical import checks applied by each Party are set out in Part B of Annex IX to this Agreement. A Party may amend these frequencies within its competences and in accordance with its internal legislation, as a result of progress made in accordance with Articles 55, 57 and 60 of this Agreement, or as a result of verifications, consultations or other measures provided for in this Agreement. SPS Sub-Committee referred to in Article 65 shall modify Part B of Annex IX to this Agreement by decision, accordingly.

3.  Inspection fees, if applicable, may only cover the costs incurred by the competent authority for performing import checks. The fee shall be calculated on the same basis as the fees charged for the inspection of similar domestic products.

4.  The importing Party shall upon request of the exporting Party inform the latter of any amendment, including the reasons for such an amendment concerning the measures affecting import checks and inspection fees, and of any significant changes in the administrative conduct for such checks.

5.  From a date to be determined by the SPS Sub-Committee referred to in Article 65 of this Agreement, the Parties may agree on the conditions to approve each other's controls referred to in Article 62(1)(b) of this Agreement with a view to adapt and reciprocally reduce, where applicable, the frequency of physical import checks for the commodities referred to in Article 60(2)(a) of this Agreement.

From that date the Parties may reciprocally approve each other's controls for certain commodities and, consequently reduce or replace the import checks for these commodities.

Article 64

Safeguard measures

1.  Should the exporting Party take measures within its territory to control any cause likely to constitute a serious hazard or risk to human, animal or plant health, the exporting Party, without prejudice to the provisions of paragraph 2 of this Article, shall take equivalent measures to prevent the introduction of the hazard or risk into the territory of the importing Party.

2.  On the basis of serious human, animal or plant health grounds, the importing Party may, take provisional measures necessary for the protection of human, animal or plant health. For consignments en route between the Parties, the importing Party shall consider the most suitable and proportionate solution in order to avoid unnecessary disruptions to trade.

3.  The Party adopting measures under paragraph 2 of this Article, shall inform the other Party no later than one working day following the date of the adoption of the measures. Upon request of either Party, and in accordance with the provisions of Article 59(3) of this Agreement, the Parties shall hold consultations regarding the situation within 15 working days of the notification. The Parties shall take due account of any information provided through such consultations and shall endeavour to avoid unnecessary disruption to trade, taking into account, where applicable, the outcome of the consultations provided for in Article 59(3) of this Agreement.

Article 65

Sanitary and Phytosanitary Sub-Committee

1.  The SPS Sub-Committee is hereby established. It shall meet within three months after the date of entry into force of this Agreement, upon request of either Party thereafter, or at least once every year. If agreed by the Parties, a meeting of the SPS Sub-Committee may be held by video or audio-conference. The SPS Sub-Committee may also address issues out of session, by correspondence.

2.  SPS Sub-Committee shall have the following functions:

3.  The Parties agree to establish technical working groups, when appropriate, consisting of expert-level representatives of the Parties, which shall identify and address technical and scientific issues arising from the application of this Chapter. When additional expertise is required, the Parties may establish ad hoc groups, including scientific and expert groups. Membership of such ad hoc groups need not be restricted to representatives of the Parties.

4.  SPS Sub-Committee shall regularly inform by means of a report the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, on its activities and decisions taken within competence.

5.  The SPS Sub-Committee shall adopt its working procedures at its first meeting.

6.  Any decision, recommendation, report or other action by the SPS Sub-Committee or any group established by the SPS Sub-Committee shall be adopted by consensus between the Parties.

CHAPTER 5

Customs and trade facilitation

Article 66

Objectives

1.  The Parties acknowledge the importance of customs and trade facilitation matters in the evolving bilateral trade environment. The Parties agree to reinforce cooperation in this area with a view to ensuring that the relevant legislation and procedures, as well as the administrative capacity of the relevant administrations, fulfil the objectives of effective control and support facilitation of legitimate trade as a matter of principle.

2.  The Parties recognise that utmost importance shall be given to public policy objectives including trade facilitation, security and prevention of fraud and a balanced approach to them.

Article 67

Legislation and procedures

1.  The Parties agree that their respective trade and customs legislation, as a matter of principle, shall be stable and comprehensive, as well as that the provisions and the procedures shall be proportionate, transparent, predictable, non-discriminatory, impartial and applied uniformly and effectively and will, inter alia:

2.  In order to improve working methods, as well as to ensure non-discrimination, transparency, efficiency, integrity and accountability of operations, the Parties shall:

3.  The Parties agree to eliminate:

4.  With regard to transit:

Article 68

Relations with the business community

The Parties agree:

Article 69

Fees and charges

1.  The Parties shall prohibit administrative fees having an equivalent effect to import or export duties or charges.

2.  With regard to all fees and charges of whatever character imposed by the customs authorities of each Party, including fees and charges for tasks undertaken on behalf of the said authorities, upon or in connection with import or export and without prejudice to the relevant provisions of Chapter 1 (National Treatment and Market Access for Goods) of Title IV (Trade and Trade-related Matters) of this Agreement:

Article 70

Customs valuation

1.  The provisions of Agreement on the Implementation of Article VII of GATT 1994 contained in Annex 1A to the WTO Agreement, including any subsequent amendments, shall govern the customs valuation of goods in the trade between the Parties. Those provisions of the WTO Agreement are hereby incorporated into this Agreement and made part thereof. Minimum customs values shall not be used.

2.  The Parties shall cooperate with a view to reaching a common approach to issues relating to customs valuation.

Article 71

Customs cooperation

The Parties shall strengthen cooperation in the area of customs to ensure implementation of the objectives of this Chapter in order to further trade facilitation, while ensuring effective control, security and prevention of fraud. To that end the Parties may use, where appropriate, the European Commission Customs Blueprint as a benchmarking tool.

In order to ensure compliance with the provisions of this Chapter the Parties shall, inter alia:

Article 72

Mutual administrative assistance in customs matters

Without prejudice to other forms of cooperation envisaged in this Agreement, in particular in Article 71 of this Agreement, the Parties shall provide mutual administrative assistance in customs matters in accordance with the provisions of Protocol II on Mutual Administrative Assistance in Customs Matters to this Agreement.

Article 73

Technical assistance and capacity building

The Parties shall cooperate with a view to providing technical assistance and capacity building for the implementation of trade facilitation and customs reforms.

Article 74

Customs Sub-Committee

1.  The Customs Sub-Committee is hereby established. It shall report to the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement.

2.  The function of the Sub-Committee shall include regular consultations and monitoring of the implementation and the administration of this Chapter, including but not limited to the issues of customs cooperation, cross-border customs cooperation and management, technical assistance, rules of origin, trade facilitation, as well as mutual administrative assistance in customs matters.

3.  The Customs Sub-Committee shall, inter alia:

Article 75

Approximation of customs legislation

Gradual approximation to the Union's customs law and certain international law shall be carried out as set out in Annex XIII to this Agreement.

CHAPTER 6

Establishment, trade in services and electronic commerce

Section 1

General provisions

Article 76

Objective, scope and coverage

1.  The Parties, reaffirming their respective commitments under the WTO Agreement hereby lay down the necessary arrangements for the progressive reciprocal liberalisation of establishment and trade in services and for cooperation on electronic commerce.

2.  Public procurement is covered in Chapter 8 (Public procurement) of Title IV (Trade and Trade-related Matters) of this Agreement and nothing in this Chapter shall be construed to impose any obligation with respect to public procurement.

3.  Subsidies are covered in Chapter 10 (Competition) of Title IV (Trade and Trade-related Matters) of this Agreement and the provisions of this Chapter shall not apply to subsidies granted by the Parties.

4.  Consistent with the provisions of this Chapter, each Party retains the right to regulate and to introduce new regulations to meet legitimate policy objectives.

5.  This Chapter shall not apply to measures affecting natural persons seeking access to the employment market of a Party, nor shall it apply to measures regarding citizenship, residence or employment on a permanent basis.

6.  Nothing in this Chapter shall prevent a Party from applying measures to regulate the entry of natural persons into, or their temporary stay in, its territory, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across its borders, provided that such measures are not applied in such a manner as to nullify or impair the benefits accruing to any Party under the terms of a specific commitment in this Chapter and Annex XIV to this Agreement ( 3 ).

Article 77

Definitions

For the purposes of this Chapter:

Should that juridical person have only its registered office or central administration in the territory to which the Treaty on the Functioning of the European Union applies or in the territory of Georgia respectively, it shall not be considered as a juridical person of the Union or a juridical person of Georgia respectively, unless its operations possess a real and continuous link with the economy of the Union or of Georgia, respectively;

Notwithstanding the preceding subparagraph, shipping companies established outside the Union or Georgia and controlled by nationals of a Member State of the EU or of Georgia, respectively, shall also be beneficiaries under this Agreement, if their vessels are registered in accordance with their respective legislation, in that Member State or in Georgia and fly the flag of a Member State or of Georgia;

Section 2

Establishment

Article 78

Scope

This Section applies to measures adopted or maintained by the Parties affecting establishment in all economic activities with the exception of:

Article 79

National treatment and most favoured nation treatment

1.  Subject to the reservations listed in Annex XIV-E to this Agreement, Georgia shall grant, upon entry into force of this Agreement:

2.  Subject to reservations listed in Annex XIV-A to this Agreement, the Union shall grant, upon entry into force of this Agreement:

3.  Subject to reservations listed in Annexes XIV-A and XIV-E to this Agreement, the Parties shall not adopt any new regulations or measures which introduce discrimination as regards the establishment of juridical persons of the Union or of Georgia on their territory or in respect of their operation, once established, by comparison with their own juridical persons.

Article 80

Review

1.  With a view to progressively liberalising the establishment conditions, the Parties shall regularly review the provisions of this Section and the list of reservations referred to in Article 79 of this Agreement as well as the establishment environment, consistent with their commitments in international agreements.

2.  In the context of the review referred to in paragraph 1, the Parties shall assess any obstacles to establishment that have been encountered. With a view to deepening the provisions of this Chapter, the Parties shall find, if need be, appropriate ways to address such obstacles, which could include further negotiations, including with respect to investment protection and to investor-to-state dispute settlement procedures.

Article 81

Other agreements

This Chapter shall not affect the rights of entrepreneurs of the Parties arising from any existing or future international agreement relating to investment, to which a Member State of the EU and Georgia are parties.

Article 82

Standard of treatment for branches and representative offices

1.  The provisions of Article 79 of this Agreement do not preclude the application by a Party of particular rules concerning the establishment and operation in its territory of branches and representative offices of juridical persons of another Party not incorporated in the territory of the first Party, which are justified by legal or technical differences between such branches and representative offices as compared to branches and representative offices of juridical persons incorporated in its territory or, as regards financial services, for prudential reasons.

2.  The difference in treatment shall not go beyond what is strictly necessary as a result of such legal or technical differences or, as regards financial services, for prudential reasons.

Section 3

Cross-border supply of services

Article 83

Scope

This Section applies to measures of the Parties affecting the cross border supply of all services sectors with the exception of:

Article 84

Market access

1.  With respect to market access through the cross-border supply of services, each Party shall accord services and service suppliers of the other Party a treatment not less favourable than that provided for in the specific commitments contained in Annexes XIV-B and XIV-F to this Agreement.

2.  In sectors where market access commitments are undertaken, the measures which a Party shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in Annexes XIV-B and XIV-F to this Agreement are defined as:

Article 85

National treatment

1.  In the sectors where market access commitments are inscribed in Annexes XIV-B and XIV-F to this Agreement, and subject to any conditions and qualifications set out therein, each Party shall grant to services and service suppliers of the other Party, in respect of all measures affecting the cross-border supply of services, treatment no less favourable than that it accords to its own like services and services suppliers.

2.  A Party may meet the requirement of paragraph 1 by according to services and service suppliers of the other Party either formally identical treatment or formally different treatment to that it accords to its own like services and service suppliers.

3.  Formally identical or formally different treatment shall be considered to be less favourable if it modifies the conditions of competition in favour of services or service suppliers of the Party compared to like services or service suppliers of the other Party.

4.  Specific commitments entered into under this Article shall not be construed to require any Party to compensate for inherent competitive disadvantages which result from the foreign character of the relevant services or services suppliers.

Article 86

Lists of commitments

The sectors liberalised by each Party pursuant to this Section and, by means of reservations, the market access and national treatment limitations applicable to services and services suppliers of the other Party in those sectors are set out in lists of commitments included in Annexes XIV-B and XIV-F to this Agreement.

Article 87

Review

With a view to the progressive liberalisation of the cross-border supply of services between the Parties, the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, shall regularly review the list of commitments referred to in Article 86 of this Agreement. This review shall take into account the process of gradual approximation, referred to in Articles 103, 113, 122 and 126 of this Agreement, and its impact on the elimination of remaining obstacles to cross-border supply of services between the Parties.

Section 4

Temporary presence of natural persons for business purposes

Article 88

Scope and definitions

1.  This Section applies to measures of the Parties concerning the entry and temporary stay in their territories of key personnel, graduate trainees, business sellers, contractual service suppliers and independent professionals in accordance with Article 76(5) of this Agreement.

2.  For the purposes of this Section:

Article 89

Key personnel and graduate trainees

1.  For every sector committed in accordance with Section 2 (Establishment) of this Chapter and subject to any reservations listed in Annexes XIV-A and XIV-E to this Agreement, or in Annexes XIV-C and XIV-G to this Agreement, each Party shall allow entrepreneurs of the other Party to employ in their establishment natural persons of that other Party provided that such employees are key personnel or graduate trainees as defined in Article 88 to this Agreement. The temporary entry and temporary stay of key personnel and graduate trainees shall be for a period of no longer than three years for intra-corporate transferees, 90 days in any 12-month period for business visitors for establishment purposes, and one year for graduate trainees.

2.  For every sector committed in accordance with Section 2 (Establishment) of this Chapter, the measures which a Party shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in Annexes XIV-C and XIV-G to this Agreement, are defined as limitations on the total number of natural persons that an entrepreneur may employ as key personnel and graduate trainees in a specific sector in the form of numerical quotas or a requirement of an economic needs test and as discriminatory limitations.

Article 90

Business sellers

For every sector committed in accordance with Section 2 (Establishment) or Section 3 (Cross-border supply of services) of this Chapter and subject to any reservations listed in Annexes XIV-A, XIV-E, and XIV-B and XIV-F to this Agreement, each Party shall allow the entry and temporary stay of business sellers for a period of no longer than 90 days in any 12-month period.

Article 91

Contractual service suppliers

1.  The Parties reaffirm their respective obligations arising from their commitments under the General Agreement on Trade in Services (GATS) as regards the entry and temporary stay of contractual services suppliers. In accordance with Annexes XIV-D and XIV-H to this Agreement, each Party shall allow the supply of services into their territory by contractual services suppliers of the other Party, subject to the conditions specified in paragraph 2 of this Article.

2.  The commitments undertaken by the Parties are subject to the following conditions:

Article 92

Independent professionals

1.  In accordance with Annexes XIV-D and XIV-H to this Agreement, the Parties shall allow the supply of services into their territory by independent professionals of the other Party, subject to the conditions specified in paragraph 2 of this Article.

2.  The commitments undertaken by the Parties are subject to the following conditions:

Section 5

Regulatory framework

Sub-section 1

Domestic regulation

Article 93

Scope and definitions

1.  The following disciplines apply to measures by the Parties relating to licencing requirements and procedures, qualification requirements and procedures that affect:

2.  In the case of cross-border supply of services, those disciplines shall only apply to sectors for which the Party has undertaken specific commitments and to the extent that these specific commitments apply in accordance with Annexes XIV-B and XIV-F to this Agreement. In the case of establishment, those disciplines shall not apply to sectors to the extent that a reservation is listed in accordance with Annexes XIV-A and XIV-E to this Agreement. In the case of temporary stay of natural persons, these disciplines shall not apply to sectors to the extent that a reservation is listed in accordance with Annexes XIV-C, XIV-D, XIV-G and XIV-H to this Agreement.

3.  Those disciplines do not apply to measures to the extent that they constitute limitations under the relevant Annexes to this Agreement.

4.  For the purposes of this Section:

Article 94

Conditions for licencing and qualification

1.  Each Party shall ensure that measures relating to licencing requirements and procedures, qualification requirements and procedures are based on criteria which preclude the competent authorities from exercising their power of assessment in an arbitrary manner.

2.  The criteria referred to in paragraph 1 shall be:

3.  An authorisation or a licence shall be granted as soon as it is established, in the light of an appropriate examination, that the conditions for obtaining an authorisation or licence have been met.

4.  Each Party shall maintain or institute judicial, arbitral or administrative tribunals or procedures which provide, at the request of an affected entrepreneur or service supplier, for a prompt review of, and where justified, appropriate remedies for, administrative decisions affecting establishment, cross-border supply of services or temporary presence of natural persons for business purposes. Where such procedures are not independent of the agency entrusted with the administrative decision concerned, each Party shall ensure that the procedures in fact provide for an objective and impartial review.

5.  Where the number of licences available for a given activity is limited because of the scarcity of available natural resources or technical capacity, each Party shall apply a selection procedure to potential candidates which provides full guarantees of impartiality and transparency, including, in particular, adequate publicity about the launch, conduct and completion of the procedure.

6.  Subject to the provisions specified by this Article, in establishing the rules for the selection procedure, each Party may take into account public policy objectives, including considerations of health, safety, the protection of the environment and the preservation of cultural heritage.

Article 95

Licencing and qualification procedures

1.  Licencing and qualification procedures and formalities shall be clear, made public in advance and be such as to provide the applicants with a guarantee that their application will be dealt with objectively and impartially.

2.  Licencing and qualification procedures and formalities shall be as simple as possible and shall not unduly complicate or delay the provision of the service. Any licencing fees ( 19 ) which the applicants may incur from their application should be reasonable and proportionate to the cost of the authorisation procedures in question.

3.  Each Party shall ensure that the procedures used by, and the decisions of, the competent authority in the licencing or authorisation process are impartial with respect to all applicants. The competent authority should reach its decision in an independent manner and not be accountable to any supplier of the services for which the licence or authorisation is required.

4.  Where specific time periods for applications exist, an applicant shall be allowed a reasonable period for the submission of an application. The competent authority shall initiate the processing of an application without undue delay. Where possible, applications should be accepted in electronic format under the same conditions of authenticity as paper submissions.

5.  Each Party shall ensure that the processing of an application, including reaching a final decision, is completed within a reasonable timeframe from the submission of a complete application. Each Party shall endeavour to establish the normal timeframe for processing of an application.

6.  The competent authority shall, within a reasonable period of time after receipt of an application which it considers incomplete, inform the applicant, to the extent feasible identify the additional information required to complete the application, and provide the opportunity to correct deficiencies.

7.  Authenticated copies should be accepted, where possible, in place of original documents.

8.  If an application is rejected by the competent authority, the applicant shall be informed in writing and without undue delay. In principle, the applicant shall, upon request, also be informed of the reasons for rejection of the application and of the timeframe for an appeal against the decision.

9.  Each Party shall ensure that a licence or an authorisation, once granted, enters into effect without undue delay in accordance with the terms and conditions specified therein.

Sub-section 2

Provisions of general application

Article 96

Mutual recognition

1.  Nothing in this Chapter shall prevent a Party from requiring that natural persons must possess the necessary qualifications and/or professional experience specified in the territory where the service is supplied, for the sector of activity concerned.

2.  Each Party shall encourage the relevant professional bodies in their respective territories to provide recommendations on mutual recognition to the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, for the purpose of the fulfilment, in whole or in part, by entrepreneurs and service suppliers of the criteria applied by each Party for the authorisation, licensing, operation and certification of entrepreneurs and service suppliers and, in particular, professional services.

3.  On receipt of a recommendation referred to in paragraph 2, the Association Committee in Trade configuration shall, within a reasonable time, review that recommendation with a view to determine whether it is consistent with this Agreement, and on the basis of the information contained therein, assess in particular:

4.  Where these requirements are satisfied, the Association Committee in Trade configuration shall establish the necessary steps to negotiate and thereafter the Parties shall engage into negotiations, through their competent authorities, of a mutual recognition agreement.

5.  Any such agreement shall be in conformity with the relevant provisions of the WTO Agreement and, in particular, Article VII of GATS.

Article 97

Transparency and disclosure of confidential information

1.  Each Party shall respond promptly to all requests by the other Party for specific information on any of its measures of general application or international agreements which pertain to or affect this Agreement. Each Party shall also establish one or more enquiry points to provide specific information to entrepreneurs and services suppliers of the other Party, upon request, on all such matters. The Parties shall notify each other enquiry points within three months after the date of entry into force of this Agreement. Enquiry points need not be depositories of laws and regulations.

2.  Nothing in this Agreement shall require any Party to provide confidential information, the disclosure of which would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice legitimate commercial interests of particular enterprises, public or private.

Sub-section 3

Computer services

Article 98

Understanding on computer services

1.  To the extent that trade in computer services is liberalised in accordance with Section 2 (Establishment), Section 3 (Cross-border supply of services) and Section 4 (Temporary presence of natural persons for business purposes) of this Chapter, the Parties shall comply with paragraphs 2, 3 and 4 of this Article.

2.  CPC ( 20 ) 84, the UN code used for describing computer and related services, covers the basic functions used to provide all computer and related services:

Technological developments have led to the increased offering of those services as a bundle or package of related services that can include some or all of those basic functions. For example, services such as web- or domain-hosting, data mining services and grid computing each consist of a combination of basic computer services functions.

3.  Computer and related services, regardless of whether they are delivered via a network, including the internet, include all services that provide:

4.  Computer and related services enable the provision of other services (e.g. banking) by both electronic and other means. However, there is an important distinction between the enabling service (e.g. web-hosting or application-hosting) and the content or core service that is being delivered electronically (e.g. banking). In such cases, the content or core service is not covered by CPC 84.

Sub-section 4

Postal and courier services

Article 99

Scope and definitions

1.  This Sub-Section sets out the principles of the regulatory framework for all postal and courier service liberalised in accordance with Section 2 (Establishment), Section 3 (Cross-border supply of services) and Section 4 (Temporary presence of natural persons for business purposes) of this Chapter.

2.  For the purpose of this Sub-Section and of Section 2 (Establishment), Section 3 (Cross-border supply of services) and Section 4 (Temporary presence of natural persons for business purposes) of this Chapter:

Article 100

Universal service

Each Party has the right to define the kind of universal service obligation it wishes to maintain. Such obligations will not be regarded as anti-competitive per se, provided they are administered in a transparent, non-discriminatory and competitively neutral manner and are not more burdensome than necessary for the kind of universal service defined by the Party.

Article 101

Licences

1.  A licence may only be required for services which are within the scope of the universal service.

2.  Where a licence is required, the following shall be made publicly available:

3.  The reasons for the denial of a licence shall be made known to the applicant upon request and an appeal procedure through an independent body will be established by each Party. Such a procedure will be transparent, non-discriminatory and based on objective criteria.

Article 102

Independence of the regulatory body

The regulatory body shall be legally separate from, and not accountable to any supplier of postal and courier services. The decisions of and the procedures used by the regulatory body shall be impartial with respect to all market participants.

Article 103

Gradual approximation

With a view to considering further liberalisation of trade in services, the Parties recognise the importance of the gradual approximation of the existing and future legislation of Georgia to the list of the Union acquis included in Annex XV-C to this Agreement.

Sub-section 5

Electronic communication networks and services

Article 104

Scope and definitions

1.  This Sub-Section sets out the principles of the regulatory framework for all electronic communication services liberalised pursuant to Section 2 (Establishment), Section 3 (Cross-border supply of services) and Section 4 (Temporary presence of natural persons for business purposes) of this Chapter.

2.  For the purpose of this Sub-Section and Section 2 (Establishment), Section 3 (Cross-border supply of services) and Section 4 (Temporary presence of natural persons for business purposes) of this Chapter:

Article 105

Regulatory authority

1.  Each Party shall ensure that regulatory authorities for electronic communication services shall be legally distinct and functionally independent from any supplier of electronic communication services. If a Party retains ownership or control of a supplier providing electronic communication networks or services, such Party shall ensure the effective structural separation of the regulatory function from activities associated with ownership or control.

2.  Each Party shall ensure that the regulatory authority shall be sufficiently empowered to regulate the sector. The tasks to be undertaken by a regulatory authority shall be made public in an easily accessible and clear form, in particular where those tasks are assigned to more than one body.

3.  Each Party shall ensure that the decisions of and the procedures used by the regulatory authorities are impartial with respect to all market participants and transparent.

4.  The regulatory authority shall have the power to carry out an analysis of relevant product and service markets liable to an ex ante regulation. Where the regulatory authority is required to determine under Article 107 of this Agreement whether to impose, maintain, amend or withdraw obligations it shall determine on the basis of a market analysis whether the relevant market is effectively competitive.

5.  Where the regulatory authority determines that a relevant market is not effectively competitive, it shall identify and designate services suppliers with significant market power on that market and shall impose, maintain or amend specific regulatory obligations referred to in Article 107 of this Agreement as it is appropriate. Where the regulatory authority concludes that the market is effectively competitive it shall not impose or maintain any of the regulatory obligations referred to in Article 107 of this Agreement.

6.  Each Party shall ensure that a services supplier affected by the decision of a regulatory authority shall have a right to appeal against that decision to an appeal body that is independent of the parties involved in the decision. Each Party shall ensure that the merits of the case are duly taken into account. Pending the outcome of any such appeal, the decision of the regulator shall stand, unless the appeal body decides otherwise. Where the appeal body is not judicial in character, written reasons for its decision shall always be given and its decisions shall also be subject to review by an impartial and independent judicial authority. Decisions taken by appeal bodies shall be effectively enforced.

7.  Each Party shall ensure that where the regulatory authorities intend to take measures related to any of the provisions of this Sub-Section and which have a significant impact to the relevant market, they give the interested parties the opportunity to comment on the draft measure within a reasonable period of time. Regulators shall publish their consultation procedures. The results of the consultation procedure shall be made publicly available except in the case of confidential information.

8.  Each Party shall ensure that suppliers providing electronic communication networks and services provide all the information, including financial information, necessary for regulatory authorities to ensure conformity with the provisions of this Sub-Section or decisions made in accordance with this Sub-Section. These suppliers shall provide such information promptly on request and to the time-table and level of detail required by the regulatory authority. The information requested by the regulatory authority shall be proportionate to the performance of that task. The regulatory authority shall give the reasons justifying its request for information.

Article 106

Authorisation to provide electronic communication services

1.  Each Party shall ensure that the provision of services shall, as much as possible, be authorised following mere notification.

2.  Each Party shall ensure that a licence can be required to address issues of attributions of numbers and frequencies. The terms and conditions for such licences shall be made publicly available.

3.  Each Party shall ensure that where a licence is required:

Article 107

Access and interconnection

1.  Each Party shall ensure that any services suppliers authorised to provide electronic communication services have the right and obligation to negotiate access and interconnection with suppliers of publicly available electronic communication networks and services. Access and interconnection should in principle be agreed on the basis of commercial negotiation between the services suppliers concerned.

2.  Each Party shall ensure that services suppliers that acquire information from another services supplier during the process of negotiating interconnection arrangements use that information solely for the purpose for which it was supplied and respect at all times the confidentiality of information transmitted or stored.

3.  Each Party shall ensure that upon the finding in accordance with Article 105 of this Agreement that a relevant market is not effectively competitive, the regulatory authority shall have the power to impose on the supplier designated as having significant market power one or more of the following obligations in relation to interconnection and/or access:

Regulatory authorities may attach conditions covering fairness, reasonableness and timeliness to the obligations included under this point;

Regulatory authorities may attach conditions covering fairness, reasonableness and timeliness to the obligations included under this point;

Regulatory authorities shall take into account the investment made by the operator and allow the operator a reasonable rate of return on adequate capital employed, taking into account the risks involved;

4.  Each Party shall ensure that a service supplier requesting interconnection with a supplier designated as having significant market power shall have recourse, either at any time or after a reasonable period of time which has been made publicly known, to an independent domestic body, which may be a regulatory body as referred to in Article 104(2)(d) of this Agreement, to resolve disputes regarding terms and conditions for interconnection and/or access.

Article 108

Scarce resources

1.  Each Party shall ensure that any procedures for the allocation and use of scarce resources, including frequencies, numbers and rights of way, shall be carried out in an objective, proportionate, timely, transparent and non-discriminatory manner. The current state of allocated frequency bands shall be made publicly available, but detailed identification of frequencies allocated for specific government uses is not required.

2.  Each Party shall ensure the effective management of radio frequencies for electronic communication services in their territory with a view to ensure effective and efficient use of the spectrum. Where demand for specific frequencies exceeds their availability, appropriate and transparent procedures shall be followed for the assignment of these frequencies in order to optimise their use and facilitate the development of competition.

3.  Each Party shall ensure that the assignment of national numbering resources and the management of the national numbering plans are entrusted to the regulatory authority.

4.  Where public or local authorities retain ownership or control of suppliers operating public communications networks and/or services, effective structural separation needs to be ensured between the function responsible for granting the rights of way from activities associated with ownership or control.

Article 109

Universal service

1.  Each Party has the right to define the kind of universal service obligations it wishes to maintain.

2.  Such obligations will not be regarded as anti-competitive per se, provided they are administered in a transparent, objective and non-discriminatory way. The administration of such obligations shall also be neutral with respect to competition and be not more burdensome than necessary for the kind of universal service defined by the Party.

3.  Each Party shall ensure that all suppliers should be eligible to ensure universal service and no services supplier shall be a priori excluded. The designation shall be made through an efficient, transparent, objective and non-discriminatory mechanism. Where necessary, each Party shall assess whether the provision of universal service represents an unfair burden on organisation(s) designated to provide universal service. Where justified on the basis of such calculation, and taking into account the market benefit, if any, which accrues to an organisation that offers the universal service, regulatory authorities shall determine whether a mechanism is required to compensate the services supplier(s) concerned or to share the net cost of universal service obligations.

4.  Each Party shall ensure that, where directories of all subscribers are available to users, whether printed or electronic, the organisations that provide those directories apply the principle of non-discrimination to the treatment of information that has been provided to them by other organisations.

Article 110

Cross-border provision of electronic communication services

Neither Party may require a service supplier of the other Party to set up an establishment, to establish any form of presence, or to be resident, in its territory as a condition for the cross-border supply of a service.

Article 111

Confidentiality of information

Each Party shall ensure the confidentiality of electronic communications and related traffic data by means of a public communication network and publicly available electronic communication services without restricting trade in services.

Article 112

Disputes between services suppliers

1.  Each Party shall ensure that in the event of a dispute arising between suppliers of electronic communication networks or services in connection with rights and obligations referred to in this Section, the regulatory authority concerned shall, at the request of either Party, issue a binding decision to resolve the dispute in the shortest possible timeframe and in any case within four months.

2.  The decision of the regulatory authority shall be made available to the public, having regard to the requirements of business confidentiality. The suppliers of electronic communication networks and services concerned shall be given a full statement of the reasons on which it is based.

3.  When such a dispute concerns the cross-border provision of services, the regulatory authorities concerned shall co-ordinate their efforts in order to bring about a resolution of the dispute.

Article 113

Gradual approximation

With a view to considering further liberalisation of trade in services, the Parties recognise the importance of the gradual approximation of the existing and future legislation of Georgia to the list of the Union acquis included in the Annex XV-B to this Agreement.

Sub-section 6

Financial services

Article 114

Scope and definitions

1.  This Sub-Section sets out the principles of the regulatory framework for all financial services liberalised pursuant to Section 2 (Establishment), Section 3 (Cross-border supply of services) and Section 4 (Temporary presence of natural persons for business purposes) of this Chapter.

2.  For the purpose of this Sub-Section and of Section 2 (Establishment), Section 3 (Cross-border supply of services) and Section 4 (Temporary presence of natural persons for business purposes) of this Chapter:

Article 115

Prudential carve-out

1.  Each Party may adopt or maintain measures for prudential reasons, such as:

2.  Those measures shall not be more burdensome than necessary to achieve their aim, and shall not discriminate against financial service suppliers of the other Party in comparison to its own like financial service suppliers.

3.  Nothing in this Agreement shall be construed to require a Party to disclose information relating to the affairs and accounts of individual consumers or any confidential or proprietary information in the possession of public entities.

Article 116

Effective and transparent regulation

1.  Each Party shall make its best endeavours to provide in advance to all interested persons any measure of general application that the Party proposes to adopt in order to allow an opportunity for such persons to comment on the measure. Such measure shall be provided:

2.  Each Party shall make available to interested persons its requirements for completing applications relating to the supply of financial services.

On the request of an applicant, the concerned Party shall inform the applicant of the status of its application. If the concerned Party requires additional information from the applicant, it shall notify the applicant without undue delay.

3.  Each Party shall make its best endeavours to ensure that internationally agreed standards for regulation and supervision in the financial services sector and for the fight against tax evasion and avoidance are implemented and applied in its territory. Such internationally agreed standards are, inter alia, the Basel Committee's ‘Core Principles for Effective Banking Supervision’, the International Association of Insurance Supervisors' ‘Insurance Core Principles’, the International Organisation of Securities Commissions' ‘Objectives and Principles of Securities Regulation’, the ‘Agreement on Exchange of Information on Tax Matters’ of the Organisation for Economic Co-operation and Development (OECD), the G20 ‘Statement on Transparency and Exchange of Information for Tax Purposes’ and the Financial Action Task Force's ‘Forty Recommendations’ on money laundering and ‘Nine Special Recommendations’ on terrorist financing.

The Parties also take note of the ‘Ten Key Principles for Information Exchange’ promulgated by the G7 Finance Ministers, and will take all steps necessary to try to apply them in their bilateral contacts.

Article 117

New financial services

Each Party shall permit a financial service supplier of the other Party to provide any new financial service of a type similar to those services that the Party would permit its own financial service suppliers to provide under its domestic law in like circumstances. A Party may determine the juridical form through which the service may be provided and may require authorisation for the provision of the service. Where such authorisation is required, a decision shall be made within a reasonable time and the authorisation may only be refused for prudential reasons.

Article 118

Data processing

1.  Each Party shall permit a financial service supplier of the other Party to transfer information in electronic or other form, into and out of its territory, for data processing where such processing is required in the ordinary course of business of such financial service supplier.

2.  Each Party shall adopt adequate safeguards for the protection of privacy and fundamental rights, and freedom of individuals, in particular with regard to the transfer of personal data.

Article 119

Specific exceptions

1.  Nothing in this Chapter shall be construed to prevent a Party, including its public entities, from exclusively conducting or providing in its territory activities or services forming part of a public retirement plan or statutory system of social security, except when those activities may be carried out, as provided by the Party's domestic regulation, by financial service suppliers in competition with public entities or private institutions.

2.  Nothing in this Agreement applies to activities conducted by a central bank or monetary authority or by any other public entity in pursuit of monetary or exchange rate policies.

3.  Nothing in this Chapter shall be construed to prevent a Party, including its public entities, from exclusively conducting or providing in its territory activities or services for the account or with the guarantee or using the financial resources of the Party, or its public entities.

Article 120

Self-regulatory organisations

When a Party requires membership or participation in, or access to, any self-regulatory body, securities or futures exchange or market, clearing agency, or any other organization or association, in order for financial service suppliers of the other Party to supply financial services on an equal basis with financial service suppliers of the Party, or when the Party provides directly or indirectly such entities, privileges or advantages in supplying financial services, the Party shall ensure observance of the obligations of Articles 79 and 85 of this Agreement.

Article 121

Clearing and payment systems

Under the terms and conditions that accord national treatment, each Party shall grant to financial service suppliers of the other Party established in its territory access to payment and clearing systems operated by public entities, and to official funding and refinancing facilities available in the normal course of ordinary business. This Article is not intended to confer access to the Party's lender of last resort facilities.

Article 122

Gradual approximation

With a view to considering further liberalisation of trade in services, the Parties recognise the importance of the gradual approximation of the existing and future legislation of Georgia to the international best practices standards listed under Article 116(3) of this Agreement as well as to the list of the Union acquis included in Annex XV-A to this Agreement.

Sub-section 7

Transport services

Article 123

Scope

This Sub-Section sets out the principles regarding the liberalisation of international transport services pursuant to Section 2 (Establishment), Section 3 (Cross-border supply of services) and Section 4 (Temporary presence of natural persons for business purposes) of this Chapter.

Article 124

International maritime transport

1.  For the purpose of this Sub-Section and Section 2 (Establishment), Section 3 (Cross-border supply of services) and Section 4 (Temporary presence of natural persons for business purposes) of this Chapter:

2.  As regards international maritime transport, each Party agrees to ensure effective application of the principle of unrestricted access to cargoes on a commercial basis, the freedom to provide international maritime services, as well as national treatment in the framework of the provision of such services.

In view of the existing levels of liberalisation between the Parties in international maritime transport:

3.  In applying these principles, each Party shall:

4.  Each Party shall permit international maritime transport service suppliers of the other Party to have an establishment in its territory under conditions of establishment and operation no less favourable than those accorded to its own service suppliers or those of any third country, whichever are the better.

5.  Each Party shall make available to maritime transport service suppliers of the other Party on reasonable and non-discriminatory terms and conditions the following services at the port: pilotage, towing and tug assistance, provisioning, fuelling and watering, garbage collecting and ballast waste disposal, port captain's services, navigation aids, shore-based operational services essential to ship operations, including communications, water and electrical supplies, emergency repair facilities, anchorage, berth and berthing services.

6.  Each Party shall permit the movement of equipment such as empty containers, not being carried as cargo against payment, between ports of a Member State of the EU or between ports of Georgia.

7.  Each Party, subject to the authorisation of the competent authority shall permit international maritime transport service suppliers of the other Party to provide feeder services between their national ports.

Article 125

Air transport

The progressive liberalisation of air transport between the Parties adapted to their reciprocal commercial needs and the conditions of mutual market access are governed by the Common Aviation Area Agreement between the European Union and its Member States, of the one part, and Georgia, of the other part.

Article 126

Gradual approximation

With a view to considering further liberalisation of trade in services, the Parties recognise the importance of the gradual approximation of the existing and future legislation of Georgia to the list of Union acquis included in Annex XV-D to this Agreement.

Section 6

Electronic commerce

Sub-section 1

General provisions

Article 127

Objective and principles

1.  The Parties, recognising that electronic commerce increases trade opportunities in many sectors, agree to promote the development of electronic commerce between them, in particular by cooperating on the issues raised by electronic commerce under the provisions of this Chapter.

2.  The Parties agree that the development of electronic commerce must be compatible with the international standards of data protection in order to ensure the confidence of users of electronic commerce.

3.  The Parties agree that electronic transmissions shall be considered as the provision of services, within the meaning of Section 3 (Cross-border supply of services) of this Chapter, which cannot be subject to customs duties.

Article 128

Cooperation in electronic commerce

1.  The Parties shall maintain a dialogue on regulatory issues raised by electronic commerce, which will inter alia address the following issues:

2.  Such cooperation can take the form of exchange of information on the Parties' respective legislation on those issues as well as on the implementation of such legislation.

Sub-section 2

Liability of intermediary service providers

Article 129

Use of intermediaries' services

1.  The Parties recognise that the services of intermediaries can be used by third parties for infringing activities and shall provide the measures for intermediary service providers as laid down in this Sub-Section ( 22 ).

2.  For the purposes of Article 130 of this Agreement, ‘service provider’ means a provider of transmission, routing, or connections for digital online communication between or among points specified by the user, of material of the user's choosing without modification of its content. For the purposes of Articles 131 and 132 of this Agreement ‘service provider’ means a provider or operator of facilities for online services or network access.

Article 130

Liability of intermediary service providers: ‘mere conduit’

1.  Where an information society service is provided that consists of the transmission in a communication network of information provided by a recipient of the service, or the provision of access to a communication network, each Party shall ensure that the service provider is not liable for the information transmitted, on condition that the provider:

2.  The acts of transmission and of provision of access referred to in paragraph 1 include the automatic, intermediate and transient storage of the information transmitted in so far as this takes place for the sole purpose of carrying out the transmission in the communication network, and provided that the information is not stored for any period longer than is reasonably necessary for the transmission.

3.  This Article shall not affect the possibility for a court or administrative authority, in accordance with Parties' legal systems, of requiring the service provider to terminate or prevent an infringement.

Article 131

Liability of intermediary service providers: ‘caching’

1.  Where an information society service is provided that consists of the transmission in a communication network of information provided by a recipient of the service, each Party shall ensure that the service provider is not liable for the automatic, intermediate and temporary storage of that information, performed for the sole purpose of making more efficient the information's onward transmission to other recipients of the service upon their request, on condition that:

2.  This Article shall not affect the possibility for a court or administrative authority, in accordance with the Parties' legal systems, of requiring the service provider to terminate or prevent an infringement.

Article 132

Liability of intermediary service providers: ‘hosting’

1.  Where an information society service is provided that consists of the storage of information provided by a recipient of the service, each Party shall ensure that the service provider is not liable for the information stored at the request of a recipient of the service, on condition that:

2.  Paragraph 1 shall not apply when the recipient of the service is acting under the authority or the control of the provider.

3.  This Article shall not affect the possibility for a court or administrative authority, in accordance with the Parties' legal systems, of requiring the service provider to terminate or prevent an infringement, nor does it affect the possibility for a Party of establishing procedures governing the removal or disabling of access to information.

Article 133

No general obligation to monitor

1.  The Parties shall not impose a general obligation on providers, when providing the services covered by Articles 130, 131 and 132 of this Agreement, to monitor the information which they transmit or store, nor shall they impose a general obligation to actively seek facts or circumstances indicating illegal activity.

2.  A Party may establish obligations for information society service providers promptly to inform the competent public authorities of alleged illegal activities undertaken or information provided by recipients of their service or obligations to communicate to the competent authorities, at their request, information enabling the identification of recipients of their service with whom they have storage agreements.

Section 7

Exceptions

Article 134

General exceptions

1.  Without prejudice to general exceptions set in Article 415 of this Agreement, the provisions of this Chapter and of Annexes XIV-A and XIV-E, XIV-B and XIV-F, XIV-C and XIV-G, XIV-D and XIV-H to this Agreement are subject to the exceptions contained in this Article.

2.  Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on establishment or cross-border supply of services, nothing in this Chapter shall be construed to prevent the adoption or enforcement by any Party of measures:

3.  The provisions of this Chapter and of Annexes XIV-A and XIV-E, XIV-B and XIV-F, XIV-C and XIV-G, XIV-D and XIV-H to this Agreement shall not apply to the Parties' respective social security systems or to activities in the territory of each Party, which are connected, even occasionally, with the exercise of official authority.

Article 135

Taxation measures

The most-favoured-nation treatment granted in accordance with the provisions of this Chapter shall not apply to the tax treatment that Parties are providing or will provide in future on the basis of agreements between the Parties designed to avoid double taxation.

Article 136

Security exceptions

1.  Nothing in this Agreement shall be construed:

CHAPTER 7

Current payments and movement of capital

Article 137

Current payments

The Parties undertake to impose no restrictions and shall allow, in freely convertible currency, in accordance with the provisions of Article VIII of the Agreement of the International Monetary Fund, any payments and transfers on the current account of balance of payments between the Parties.

Article 138

Capital movements

1.  With regard to transactions on the capital and financial account of balance of payments, from the entry into force of this Agreement, the Parties shall ensure the free movement of capital relating to direct investments, including the acquisition of real estate, made in accordance with the laws of the host country, investments made in accordance with the provisions of Chapter 6 (Establishment, Trade in Services and Electronic Commerce) of Title IV (Trade and Trade-related Matters) of this Agreement and the liquidation or repatriation of invested capital and of any profit stemming therefrom.

2.  With regard to transactions on the capital and financial account of balance of payments other than the transactions listed in paragraph 1 of this Article, from the entry into force of this Agreement, each Party shall ensure without prejudice to other provisions of this Agreement:

Article 139

Safeguard measures

Where, in exceptional circumstances, payments or movements of capital cause, or threaten to cause, serious difficulties for the operation of exchange rate policy or monetary policy, including serious balance of payments difficulties, in one or more Member States or in Georgia, the Parties concerned may take safeguard measures for a period not exceeding six months if such measures are strictly necessary. The Party adopting the safeguard measure shall inform the other Party forthwith of the adoption of any safeguard measure and, as soon as possible, of a time schedule for its removal.

Article 140

Facilitation and evolution provisions

1.  The Parties shall consult with a view to facilitating the movement of capital between the Parties in order to promote the objectives of this Agreement.

2.  During the first four years following the date of entry into force of this Agreement, the Parties shall take measures permitting the creation of the necessary conditions for further gradual application of the Union rules on the free movement of capital.

3.  By the end of the fifth year following the date of entry into force of this Agreement, the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, shall review the measures taken and determine the modalities for further liberalisation.

CHAPTER 8

Public procurement

Article 141

Objectives

1.  The Parties recognise the contribution of transparent, non-discriminatory, competitive and open tendering to sustainable economic development and set as their objective the effective, reciprocal and gradual opening of their respective procurement markets.

2.  This Chapter envisages mutual access to public procurement markets on the basis of the principle of national treatment at national, regional and local level for public contracts and concessions in the traditional sector as well as in the utilities sector. It provides for a gradual approximation of the public procurement legislation in Georgia with the Union public procurement acquis based on the principles governing public procurement in the Union and the terms and definitions set out in Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts (Directive 2004/18/EC) and Directive 2004/17/EC of the European Parliament and of the Council of 31 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors (Directive 2004/17/EC).

Article 142

Scope

1.  This Chapter applies to works, supplies and services public contracts, as well as works, supplies and services contracts in the utilities sectors and, if and where such contracts are used, to works and services concessions.

2.  This Chapter applies to any contracting authority and any contracting entity which meets the definitions of the Union public procurement acquis (hereinafter referred to as ‘the contracting entities’). It covers also bodies governed by public law and public undertakings in the field of utilities such as state-owned enterprises carrying out the relevant activities and private undertakings operating on the basis of special and exclusive rights in the field of utilities ( 25 ).

3.  This Chapter applies to contracts above the value thresholds set out in Annex XVI-A to this Agreement.

4.  The calculation of the estimated value of a public contract shall be based on the total amount payable, net of taxes on value added. When applying these thresholds, Georgia shall calculate and convert contract values into its national currency, using the conversion rate of its national bank.

5.  Value thresholds shall be revised regularly every two years, beginning in the year of entry into force of this Agreement, based on the average daily value of the euro, expressed in Special Drawing Rights, over the 24 months terminating on the last day of August preceding the revision with effect from January 1. The value of the thresholds thus revised shall, where necessary, be rounded down to nearest thousand euro. The revision of the thresholds shall be adopted by the decision of the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement.

Article 143

Institutional background

1.  Each Party shall establish or maintain an appropriate institutional framework and mechanisms necessary for the proper functioning of the public procurement system and the implementation of the principles in this Chapter.

2.  Georgia shall designate in particular:

3.  Each Party shall ensure that decisions taken by the authorities responsible for the review of complaints by economic operators concerning infringements of domestic law shall be effectively enforced.

Article 144

Basic standards regulating the award of contracts

1.  No later than three years from the entry into force of this Agreement, the Parties shall comply with a set of basic standards for the award of all contracts as stipulated in paragraphs 2 to 15 of this Article. These basic standards derive directly from the rules and principles of public procurement, as regulated in the Union public procurement acquis, including the principles of non-discrimination, equal treatment, transparency and proportionality.

Publication

2.  Each Party shall ensure that all intended procurements are published in an appropriate media ( 26 ) in a manner that is sufficient:

3.  The publication shall be appropriate to the economic interest of the contract to economic operators.

4.  The publication shall contain at least the essential details of the contract to be awarded, the criteria for qualitative selection, the award method, the contract award criteria and any other additional information that the economic operators reasonably need to decide whether to express their interest in obtaining the contract.

Award of contracts

5.  All contracts shall be awarded through transparent and impartial award procedures that prevent corruptive practices. This impartiality shall be ensured in particular through the non-discriminatory description of the subject matter of the contract, equal access for all economic operators, appropriate time-limits and a transparent and objective approach.

6.  When describing the characteristics of the required work, supply or service, the contracting entities shall use general descriptions of performance and functions and international, European or national standards.

7.  The description of the characteristics required of a work, supply or service shall not refer to a specific make or source, or a particular process, or to trademarks, patents, types or a specific origin or production unless such a reference is justified by the subject matter of the contract and accompanied by the words ‘or equivalent’. Preference shall be given to the use of general descriptions of performance or functions.

8.  Contracting entities shall not impose conditions resulting in direct or indirect discrimination against the economic operators of the other Party, such as the requirement that economic operators interested in the contract must be established in the same country, region or territory as the contracting entity.

Notwithstanding the above, in cases where it is justified by the specific circumstances of the contract, the successful applicant may be required to establish certain business infrastructure at the place of performance.

9.  The time-limits for expression of interest and for submission of offers shall be sufficiently long to allow economic operators from the other Party to make a meaningful assessment of the tender and prepare their offer.

10.  All participants must be able to know the applicable rules, selection criteria and award criteria in advance. Those rules must apply equally to all participants.

11.  Contracting entities may invite a limited number of applicants to submit an offer, provided that:

In inviting a limited number of applicants to submit an offer, account shall be taken of the need to ensure adequate competition.

12.  Contracting entities may use negotiated procedures only in exceptional and defined cases when the use of such a procedure effectively does not distort competition.

13.  Contracting entities may use qualification systems only under the condition that the list of qualified operators is compiled by means of a sufficiently advertised, transparent and open procedure. Contracts falling within the scope of such a system shall be awarded also on a non-discriminatory basis.

14.  Each Party shall ensure that contracts are awarded in a transparent manner to the applicant who has submitted the economically most advantageous offer or the offer with the lowest price, based on the tender criteria and the procedural rules established and communicated in advance. The final decisions shall be communicated to all applicants without undue delay. Upon request of an unsuccessful applicant, reasons must be provided in sufficient detail to allow the review of such a decision.

Judicial protection

15.  Each Party shall ensure that any person having or having had an interest in obtaining a particular contract and who has been, or risks, being harmed by an alleged infringement is entitled to effective, impartial judicial protection against any decision of the contracting entity related to the award of that contract. The decisions taken in the course and at the end of such review procedure shall be made public in a manner that is sufficient to inform all interested economic operators.

Article 145

Planning of gradual approximation

1.  Prior to the commencement of gradual approximation, Georgia shall submit to the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, a comprehensive roadmap for the implementation of this Chapter with time schedules and milestones which shall include all reforms in terms of approximation to the Union acquis and institutional capacity building. This roadmap shall comply with the phases and time schedules set out in Annex XVI-B to this Agreement.

2.  Following a favourable opinion by the Association Committee in Trade configuration, the roadmap shall be considered as the reference document for the implementation of this Chapter. The Union shall make its best efforts in assisting Georgia in the implementation of the roadmap.

Article 146

Gradual approximation

1.  Georgia shall ensure that its legislation on public procurement will be gradually approximated to the Union's public procurement acquis.

2.  Approximation to the Union acquis shall be carried out in consecutive phases as set out in the schedule in Annex XVI-B to this Agreement and further specified in Annexes XVI-C to XVI-F, XVI-H, XVI-I, and XVI-K thereto. Annexes XVI-G and XVI-J to this Agreement identify non-mandatory elements that need not be approximated, whereas Annexes XVI-L to XVI-O to this Agreement identify elements of the Union acquis that remain outside the scope of approximation. In this process, due account shall be taken of the corresponding case law of the Court of Justice of the European Union and the implementing measures adopted by the European Commission as well as, should it become necessary, of any modifications of the Union acquis occurring in the meantime. The implementation of each phase shall be evaluated by the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, and, following a positive assessment by that Committee, be linked to the reciprocal granting of market access as set out in Annex XVI-B to this Agreement. The European Commission shall notify Georgia without undue delay of any modifications of the Union acquis. It shall, upon request, provide appropriate advice and technical assistance for the purpose of implementing such modifications.

3.  The Association Committee in Trade configuration shall only proceed to the evaluation of a next phase once the measures to implement the previous phase have been carried out and approved in accordance with the modalities set out in paragraph 2.

4.  Each Party shall ensure that those aspects and areas of public procurement which are not covered by this Article comply with the principles of transparency, non-discrimination and equal treatment as set out under Article 144 of this Agreement.

Article 147

Market access

1.  The Parties agree that the effective and reciprocal opening of their respective markets shall be attained gradually and simultaneously. During the process of approximation, the extent of the market access mutually granted shall be linked to the progress made in this process as stipulated in Annex XVI-B to this Agreement.

2.  The decision to proceed to a further phase of market opening shall be made on the basis of an assessment of the compliance of the legislation adopted with the Union acquis as well as its practical implementation. Such assessment shall be carried out regularly by the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement.

3.  In so far as a Party has, in accordance with Annex XVI-B to this Agreement, opened its procurement market to the other Party:

4.  After the implementation of the last phase in the process of approximation, the Parties will examine the possibility to mutually grant market access with regard to procurement below the value thresholds set out in Annex XVI-A to this Agreement.

5.  Finland reserves its position with regard to the Åland Islands.

Article 148

Information

1.  Each Party shall ensure that contracting entities and economic operators are appropriately informed about public procurement procedures, including through the publication of all relevant legislation and administrative rulings.

2.  Each Party shall ensure the effective dissemination of information on tendering opportunities.

Article 149

Cooperation

1.  The Parties shall enhance their cooperation through exchanges of experience and information relating to their best practices and regulatory frameworks.

2.  The Union shall facilitate the implementation of this Chapter, including through technical assistance where appropriate. In line with the provisions on financial cooperation in Title VII (Financial Assistance, and Anti-fraud and Control Provisions) of this Agreement, specific decisions on financial assistance shall be taken through the relevant Union funding mechanisms and instruments.

3.  An indicative list of issues for cooperation is included in Annex XVI-P to this Agreement.

CHAPTER 9

Intellectual property rights

Section 1

General provisions

Article 150

Objectives

The objectives of this Chapter are to:

Article 151

Nature and scope of obligations

1.  The Parties shall ensure the adequate and effective implementation of the international treaties dealing with intellectual property to which they are parties including the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement). The provisions of this Chapter shall complement and further specify the rights and obligations between the Parties under the TRIPS Agreement and other international treaties in the field of intellectual property.

2.  For the purposes of this Agreement, the expression ‘intellectual property’ refers at least to all categories of intellectual property that are covered by Articles 153 to 189 of this Agreement.

3.  Protection of intellectual property includes protection against unfair competition as referred to in Article 10bis of the Paris Convention for the Protection of Industrial Property of 1967 (Paris Convention).

Article 152

Exhaustion

Each Party shall provide for a regime of domestic or regional exhaustion of intellectual property rights.

Section 2

Standards concerning intellectual property rights

Sub-section 1

Copyright and related rights

Article 153

Protection granted

The Parties reaffirm their commitment to:

Article 154

Authors

Each Party shall provide for authors the exclusive right to authorise or prohibit:

Article 155

Performers

Each Party shall provide for performers the exclusive right to:

Article 156

Producers of phonograms

Each Party shall provide for phonogram producers the exclusive right to:

Article 157

Broadcasting organisations

Each Party shall provide for broadcasting organisations the exclusive right to authorise or prohibit:

Article 158

Broadcasting and communication to the public

1.  Each Party shall provide a right in order to ensure that a single equitable remuneration is paid by the user, if a phonogram published for commercial purposes, or a reproduction of such phonogram, is used for broadcasting by wireless means or for any communication to the public, and to ensure that this remuneration is shared between the relevant performers and phonogram producers.

2.  Each Party may, in the absence of agreement between the performers and phonogram producers, lay down the conditions as to the sharing of this remuneration between them.

Article 159

Term of protection

1.  The rights of an author of a literary or artistic work within the meaning of Article 2 of the Berne Convention shall run for the life of the author and for 70 years after his/her death, irrespective of the date when the work is lawfully made available to the public.

2.  The term of protection of a musical composition with words shall expire 70 years after the death of the last of the following persons to survive, whether or not those persons are designated as co-authors: the author of the lyrics and the composer of the musical composition, provided that both contributions were specifically created for the respective musical composition with words.

3.  The rights of performers shall expire no less than 50 years after the date of the performance. However:

4.  The rights of producers of phonograms shall expire no less than 50 years after the fixation is made. However:

5.  The rights of broadcasting organisations shall expire no less than 50 years after the first transmission of a broadcast, whether this broadcast is transmitted by wire or wireless means, including by cable or satellite.

6.  The terms laid down in this Article shall be calculated from the first of January of the year following the event which gives rise to them.

Article 160

Protection of technological measures

1.  Each Party shall provide adequate legal protection against the circumvention of any effective technological measures, which the person concerned carries out in the knowledge, or with reasonable grounds to know, that he or she is pursuing that objective.

2.  Each Party shall provide adequate legal protection against the manufacture, import, distribution, sale, rental, advertisement for sale or rental, or possession for commercial purposes of devices, products or components, or the provision of services which:

3.  For the purposes of this Agreement, the expression ‘technological measures’ means any technology, device or component that, in the normal course of its operation, is designed to prevent or restrict acts, in respect of works or other protected subject matter, which are not authorised by the right holder of any copyright or related right as provided for by domestic law. Technological measures shall be deemed ‘effective’ where the use of a work or other protected subject matter is controlled by the right holders through application of an access control or protection process, such as encryption, scrambling or other transformation of the work or other subject matter or a copy control mechanism, which achieves the protection objective.

Article 161

Protection of rights management information

1.  Each Party shall provide adequate legal protection against any person performing without authority any of the following acts:

if such person knows, or has reasonable grounds to know, that by so doing he/she is inducing, enabling, facilitating or concealing an infringement of any copyright or any related rights as provided by domestic law.

2.  For the purposes of this Chapter, the expression ‘rights-management information’ means any information provided by a right holder that identifies the work or other subject matter that is the object of protection under this Chapter, the author or any other right holder, or information about the terms and conditions of use of the work or other subject matter, and any numbers or codes that represent such information. Paragraph 1 shall apply when any of these items of information is associated with a copy of, or appears in connection with the communication to the public of, a work or other subject matter that is the object of protection under this Chapter.

Article 162

Exceptions and limitations

1.  In accordance with the conventions and international treaties to which they are Parties, each Party may provide for limitations or exceptions to the rights set out in Articles 154 to 159 of this Agreement only in certain special cases which do not conflict with a normal exploitation of the protected subject matter and which do not unreasonably prejudice the legitimate interests of the right holders.

▼C1

2.  Each Party shall provide that temporary acts of reproduction referred to in Articles 155 to 158 of this Agreement, which are transient or incidental, which are an integral and essential part of a technological process and the sole purpose of which is to enable:

of a work or other protected subject matter to be made, and which have no independent economic significance, shall be exempted from the reproduction right provided for in Articles 155 to 158 of this Agreement.

▼B

Article 163

Artists' resale right in works of art

1.  Each Party shall provide, for the benefit of the author of an original work of art, a resale right, to be defined as an inalienable right, which cannot be waived, even in advance, to receive a royalty based on the sale price obtained for any resale of the work, subsequent to the first transfer of the work by the author.

2.  The right referred to in paragraph 1 shall apply to all acts of resale involving as sellers, buyers or intermediaries art market professionals, such as salesrooms, art galleries and, in general, any dealers in works of art.

3.  Each Party may provide that the right referred to in paragraph 1 shall not apply to acts of resale where the seller has acquired the work directly from the author less than three years before that resale and where the resale price does not exceed a certain minimum amount.

4.  The royalty shall be payable by the seller. Each Party may provide that one of the natural or legal persons referred to in paragraph 2 other than the seller shall alone be liable or shall share liability with the seller for payment of the royalty.

5.  The protection provided may be claimed to the extent permitted by the Party where this protection is claimed. The procedure for collection and the amounts shall be matters for determination by domestic law.

Article 164

Cooperation on collective management of rights

The Parties shall endeavour to promote dialogue and cooperation between their respective collective management societies for the purpose of promoting the availability of works and other protected subject matter and the transfer of royalties for the use of such works or other protected subject matter.

Sub-section 2

Trademarks

Article 165

International agreements

The Parties reaffirm their commitment to:

Article 166

Registration procedure

1.  Each Party shall provide for a system for the registration of trademarks in which each final negative decision taken by the relevant trademark administration shall be communicated to the applicant in writing and shall be duly reasoned.

2.  Each Party shall provide for the possibility to oppose applications to register trademarks. Such opposition proceedings shall be adversarial.

3.  The Parties shall provide a publicly available electronic database of applications and registrations of trademarks.

Article 167

Well-known trademarks

Each Party shall give effect to Article 6bis of the Paris Convention and Article 16(2) and (3) of the TRIPS Agreement concerning the protection of well-known trademarks, and may take into consideration the Joint Recommendation Concerning Provisions on the Protection of Well-Known Marks adopted by the Assembly of the Paris Union for the Protection of Industrial Property and the General Assembly of the World Intellectual Property Organisation (WIPO) at the Thirty-Fourth Series of Meetings of the Assemblies of the Member States of WIPO (September 1999).

Article 168

Exceptions to the rights conferred by a trademark

Each Party shall provide for limited exceptions to the rights conferred by a trademark, such as the fair use of descriptive terms, the protection of geographical indications as provided for in Article 176, or other limited exceptions that take account of the legitimate interests of the owner of the trademark and of third parties.

Sub-section 3

Geographical indications

Article 169

Scope

1.  This Sub-Section applies to the recognition and protection of geographical indications which are originating in the territories of the Parties.

2.  In order for a geographical indication of a Party to be protected by the other Party, it shall cover products within the scope of the legislation of that Party referred to in Article 170 of this Agreement.

Article 170

Established geographical indications

1.  Having examined the Law of Georgia on appellations of origin and Geographical Indications of Goods, adopted on 22 August 1999, the Union concludes that that law meets the elements laid down in Annex XVII-A to this Agreement.

2.  Having examined Council Regulation (EEC) No 1601/91 of 10 June 1991 laying down general rules on the definition, description and presentation of aromatised wines, aromatized wine-based drinks and aromatized wine-product cocktails, Council Regulation (EC) No 510/2006 of 20 March 2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs, with its implementing rules, for the registration, control and protection of geographical indications of agricultural products and foodstuffs in the European Union, Section I of Chapter I of Title II of Part II of Council Regulation (EC) No 1234/2007 of 22 October 2007 establishing a common organisation of agricultural markets and on specific provisions for certain agricultural products (Single CMO Regulation) and Regulation (EC) No 110/2008 of the European Parliament and of the Council of 15 January 2008 on the definition, description, presentation, labelling and the protection of geographical indications of spirit drinks, Georgia concludes that those laws, rules and procedures meet the elements laid down in Annex XVII-A to this Agreement.

3.  Georgia, after having completed an objection procedure in accordance with the criteria set in Annex XVII-B to this Agreement, having examined a summary of the specifications of the agricultural products and foodstuffs corresponding to the geographical indications of the Union listed in Annex XVII-C to this Agreement and the geographical indications for wines, aromatised wines and spirit drinks listed in Annex XVII-D to this Agreement, which have been registered by the Union under the legislation referred to in paragraph 2 of this Article, shall protect those geographical indications according to the level of protection laid down in this Sub-section.

4.  The Union, after having completed an objection procedure in accordance with the criteria set out in Annex XVII-B to this Agreement, having examined a summary of the specifications of the agricultural products and foodstuffs corresponding to the geographical indications of Georgia listed in Annex XVII-C to this Agreement and the geographical indications for wines, aromatised wines and spirit drinks listed in Annex XVII-D to this Agreement, which are registered by Georgia under the legislation referred to in paragraph 1, shall protect those geographical indications according to the level of protection laid down in this Sub-Section.

5.  The decisions of the Joint Committee set up by Article 11 of the Agreement between the European Union and Georgia on protection of geographical indications of agricultural products and foodstuffs concerning the amendment of Annexes III and IV to that Agreement, which are taken before the entry into force of this Agreement, shall be deemed to be decisions of the Geographical Indications Sub-Committee, and the geographical indications added to Annexes III and IV to that Agreement shall be deemed to be part of Annexes XVII-C and XVII-D of this Agreement. Accordingly, the Parties shall protect those geographical indications as established geographical indications under this Agreement.

Article 171

Addition of new geographical indications

1.  The Parties agree on the possibility to add new geographical indications to be protected in Annexes XVII-C and XVII-D to this Agreement in accordance with the procedure set out in Article 179(3) of this Agreement after having completed the objection procedure and after having examined a summary of the specifications as referred to in Article 170(3) and (4) of this Agreement to the satisfaction of both Parties.

2.  A Party shall not be required to protect as a geographical indication a name that conflicts with the name of a plant variety or an animal breed and as a result is likely to mislead the consumer as to the true origin of the product.

Article 172

Scope of protection of geographical indications

1.  The geographical indications listed in Annexes XVII-C and XVII-D to this Agreement, as well as those added pursuant to Article 171 of this Agreement, shall be protected against:

2.  If geographical indications are wholly or partially homonymous, protection shall be granted to each indication provided that it has been used in good faith and with due regard for local and traditional usage and the actual risk of confusion. Without prejudice to Article 23 of the TRIPS Agreement, the Parties shall mutually decide the practical conditions of use under which the homonymous geographical indications will be differentiated from each other, taking into account the need to ensure equitable treatment of the producers concerned and that consumers are not misled. A homonymous name which misleads the consumer into believing that products come from another territory shall not be registered even if the name is accurate as far as the actual territory, region or place of origin of the product in question is concerned.

3.  Where a Party, in the context of negotiations with a third country, proposes to protect a geographical indication of that third country, and the name is homonymous with a geographical indication of the other Party, the latter shall be informed and be given the opportunity to comment before the name becomes protected.

4.  Nothing in this Sub-Section shall oblige a Party to protect a geographical indication of the other Party which is not or ceases to be protected in its country of origin. The Parties shall notify each other if a geographical indication ceases to be protected in its country of origin.

Article 173

Protection of transcription of geographical indications

1.  Geographical indications protected under this Sub-Section in the characters of the Georgian alphabet and other non-Latin alphabets officially used in the Member States shall be protected together with their transcription in Latin characters. This transcription may also be used for labelling purposes for the products concerned.

2.  Similarly, geographical indications protected under this Sub-Section in a Latin alphabet shall be protected together with their transcription in the characters of the Georgian alphabet and in the characters of other non-Latin alphabets officially used in the Member States. This transcription may also be used for labelling purposes for the products concerned.

Article 174

Right of use of geographical indications

1.  A name protected under this Sub-Section may be used by any operator marketing agricultural products, foodstuffs, wines, aromatised wines or spirit drinks conforming to the corresponding specification.

2.  Once a geographical indication is protected under this Sub-Section, the use of such protected name shall not be subject to any registration of users or further charges.

Article 175

Enforcement of protection

The Parties shall enforce the protection provided for in Articles 170 to 174 of this Agreement by appropriate administrative action by their public authorities. They shall also enforce such protection at the request of an interested party.

Article 176

Relationship with trademarks

1.  The Parties shall refuse to register or shall invalidate, ex officio or at the request of any interested party in conformity with the legislation of each Party, a trademark that corresponds to any of the situations referred to in Article 172(1) of this Agreement in relation to a protected geographical indication for like products, provided an application to register the trademark is submitted after the date of application for protection of the geographical indication in the territory concerned.

2.  For geographical indications referred to in Article 170 of this Agreement, the date of application for protection shall be 1 April 2012.

3.  For geographical indications referred to in Article 171 of this Agreement, the date of application for protection shall be the date of the transmission of a request to the other Party to protect a geographical indication.

4.  The Parties shall have no obligation to protect a geographical indication where, in the light of a reputed or well-known trademark, protection is liable to mislead consumers as to the true identity of the product.

5.  Without prejudice to paragraph 4, the Parties shall protect geographical indications also where a prior trademark exists. A prior trademark shall mean a trademark the use of which corresponds to one of the situations referred to in Article 172(1) of this Agreement, which has been applied for, registered or established by use, if that possibility is provided for by the legislation concerned, in the territory of one of the Parties before the date on which the application for protection of the geographical indication is submitted by the other Party under this Sub-Section. Such trademark may continue to be used and renewed notwithstanding the protection of the geographical indication, provided that no grounds for the trademark's invalidity or revocation exist in the legislation on trademarks of the Parties.

Article 177

General rules

1.  This Sub-Section shall apply without prejudice to the rights and obligations of the Parties under the WTO Agreement.

2.  The import, export and marketing of any product referred to in Articles 170 and 171 of this Agreement shall be conducted in compliance with the laws and regulations applying in the territory of the importing Party.

3.  Any matter arising from technical specifications of registered names shall be dealt with in the Sub-Committee established in Article 179 of this Agreement.

4.  Geographical indications protected under this Sub-Section may only be cancelled by the Party in which the product originates.

5.  A product specification referred to in this Sub-Section shall be that approved, including any amendments also approved, by the authorities of the Party in the territory of which the product originates.

Article 178

Cooperation and transparency

1.  The Parties shall, either directly or through the Geographical Indications Sub-Committee established pursuant to Article 179 of this Agreement, maintain contact on all matters relating to the implementation and the functioning of this Sub-Section. In particular, a Party may request from the other Party information relating to product specifications and their modification, and contact points for control provisions.

2.  Each Party may make publicly available the specifications or a summary thereof and contact points for control provisions corresponding to geographical indications of the other Party protected pursuant to this Article.

Article 179

Geographical Indications Sub-Committee

1.  The Geographical Indications Sub-Committee is hereby established. It shall consist of representatives of the Union and of Georgia with the purpose of monitoring the development of this Sub-Section and of intensifying their cooperation and dialogue on geographical indications. It shall report to the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement.

2.  The Geographical Indications Sub-Committee adopts its decisions by consensus. It shall determine its own rules of procedure. It shall meet at the request of either of the Parties, alternatively in the EU and in Georgia, at a time and a place and in a manner (which may include by videoconference) mutually determined by the Parties, but no later than 90 days after the request.

3.  The Geographical Indications Sub-Committee shall also see to the proper functioning of this Sub-Section and may consider any matter related to its implementation and operation. In particular, it shall be responsible for:

Sub-section 4

Designs

Article 180

International agreements

The Parties reaffirm their commitment to the Geneva Act to the Hague Agreement Concerning the International Registration of Industrial Designs of 1999.

Article 181

Protection of registered designs

1.  Each Party shall provide for the protection of independently created designs that are new and are original ( 29 ). This protection shall be provided by registration, which shall confer an exclusive right upon the holder of a registered design in accordance with the provisions of this Article.

2.  A design applied to or incorporated in a product which constitutes a component part of a complex product shall only be considered to be new and original:

3.  The expression ‘normal use’ in point (a) of paragraph 2 shall mean use by the end user, excluding maintenance, servicing or repair work.

4.  The holder of a registered design shall have the right to prevent third parties not having the owner's consent from, at a minimum, making, offering for sale, selling, importing, exporting, stocking or using a product bearing or embodying the protected design when such acts are undertaken for commercial purposes, unduly prejudice the normal exploitation of the design, or are not compatible with fair trade practices.

5.  The duration of protection available shall amount to 25 years, from the date of filing of the application for registration or from a date established in accordance with the Hague Agreement Concerning the International Deposit of Industrial Designs, without prejudice to the Paris Convention.

Article 182

Exceptions and exclusions

1.  Each Party may provide limited exceptions to the protection of designs, provided that such exceptions do not unreasonably conflict with the normal exploitation of protected designs and do not unreasonably prejudice the legitimate interests of the owner of the protected design, taking account of the legitimate interests of third parties.

2.  Design protection shall not extend to designs dictated essentially by technical or functional considerations. In particular a design right shall not subsist in features of appearance of a product which are required to be reproduced in their exact form and dimensions in order to permit the product in which the design is incorporated or to which it is applied to be mechanically connected to or placed in, around or against another product so that either product may perform its function.

Article 183

Relationship to copyright

A design shall also be eligible for protection under the law of copyright of a Party as from the date on which the design was created or fixed in any form. The extent to which, and the conditions under which, such a protection is conferred, including the level of originality required, shall be determined by each Party.

Sub-section 5

Patents

Article 184

International agreements

The Parties reaffirm their commitment to the WIPO Patent Cooperation Treaty.

Article 185

Patents and public health

1.  The Parties recognise the importance of the Declaration of the Ministerial Conference of the WTO on the TRIPS Agreement and Public Health adopted on 14 November 2001.

2.  The Parties shall respect the Decision of the WTO General Council of 30 August 2003 on paragraph 6 of the declaration referred to in paragraph 1 of this Article and shall contribute to its implementation.

Article 186

Supplementary protection certificate

1.  The Parties recognise that medicinal and plant protection products protected by a patent on their respective territory may be subject to an administrative authorisation procedure before being put on their market. They recognise that the period that elapses between the filing of the application for a patent and the first authorisation to place the product on their respective market, as defined for that purpose by domestic law, may shorten the period of effective protection under the patent.

2.  Each Party shall provide for a further period of protection for a medicinal or plant protection product which is protected by a patent and which has been subject to an administrative authorisation procedure, that period being equal to the period referred to in the second sentence of paragraph 1, reduced by a period of five years.

3.  Notwithstanding paragraph 2, the duration of the further period of protection may not exceed five years.

4.  In the case of medicinal products for which paediatric studies have been carried out, and provided that the results of those studies are reflected in the product information, the Parties shall provide for a further six months extension of the period of protection referred to in paragraph 2.

Article 187

Protection of data submitted to obtain a marketing authorisation for medicinal products ( 30 )

1.  The Parties shall implement a comprehensive system to guarantee the confidentiality, non-disclosure and non-reliance of data submitted for the purpose of obtaining an authorisation to put a medicinal product on the market.

2.  Each Party shall ensure, in its law, that any information submitted to obtain an authorisation to put a medicinal product on the market remains confidential and undisclosed to third parties and benefits from protection against unfair commercial use.

3.  For that purpose, each Party shall not, for a period of at least six years from the date of the first authorisation in one of the Parties, permit other applicants to market the same or a similar product, on the basis of the marketing authorisation granted to the applicant which had provided the test data or studies, unless the applicant which had provided the test data or studies has given his consent. During such period, the test data or studies submitted for the first authorisation shall not be used for the benefit of any subsequent applicant aiming to obtain a marketing authorisation for a medicinal product, except when the consent of the first applicant is provided.

4.  The six year period referred to in paragraph 3 shall be extended to a maximum of seven years if, during the first six years after obtaining the initial authorisation, the holder obtains an authorisation for one or more new therapeutic indications which are considered of significant clinical benefit in comparison with existing therapies.

5.  Georgia undertakes to align its legislation concerning data protection for medicinal products with that of the Union at a date to be decided by the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement.

Article 188

Protection of data to obtain a marketing authorisation for plant protection products

1.  Each Party shall determine safety and efficacy requirements before authorising the placing on the market of plant protection products.

2.  Each Party shall ensure that data submitted for the first time by an applicant to obtain a marketing authorisation for a plant protection product benefits from protection against unfair commercial use and is not used for the benefit of any other person aiming to obtain a marketing authorisation, unless the proof of the explicit consent of the first holder is provided.

3.  The test or study report submitted for the first time to obtain a marketing authorisation shall fulfil the following conditions:

4.  The period of protection of data shall be at least ten years starting from the date of the first marketing authorisation in the Party concerned.

Article 189

Plant varieties

The Parties shall protect plant varieties rights, in accordance with the International Convention for the Protection of New Varieties of Plants and shall cooperate to promote and enforce those rights.

Section 3

Enforcement of intellectual property rights

Article 190

General obligations

1.  The Parties reaffirm their commitments under the TRIPS Agreement, and in particular Part III thereof, and shall provide for the complementary measures, procedures and remedies set out in this Section necessary to ensure the enforcement of intellectual property rights ( 31 ).

2.  Those complementary measures, procedures and remedies shall be fair and equitable, and shall not be unnecessarily complicated or costly, or entail unreasonable time-limits or unwarranted delays.

3.  Those complementary measures and remedies shall also be effective, proportionate and dissuasive and shall be applied in such a manner as to avoid the creation of barriers to legitimate trade and to provide for safeguards against their abuse.

Article 191

Entitled applicants

Each Party shall recognise as persons entitled to seek application of the measures, procedures and remedies referred to in this Section and in Part III of the TRIPS Agreement:

Sub-section 1

Civil enforcement

Article 192

Measures for preserving evidence

1.  Each Party shall ensure that, even before the commencement of proceedings on the merits of the case, the competent judicial authorities may, on application by a party who has presented reasonably available evidence to support his/her claims that his/her intellectual property right has been infringed or is about to be infringed, order prompt and effective provisional measures to preserve relevant evidence in respect of the alleged infringement, subject to the protection of confidential information.

2.  Such measures may include the detailed description, with or without the taking of samples, or the physical seizure of the alleged infringing goods, and, in appropriate cases, the materials and implements used in the production and/or distribution of these goods and the documents relating thereto. Those measures shall be taken, if necessary without the other party being heard, in particular where any delay is likely to cause irreparable harm to the right holder or where there is a demonstrable risk of evidence being destroyed.

3.  Where measures to preserve evidence are adopted without the other party having been heard, the parties affected shall be given notice without delay and at the latest after the execution of the measures.

Article 193

Right of information

1.  Each Party shall ensure that, in the context of proceedings concerning an infringement of an intellectual property right and in response to a justified and proportionate request of the claimant, the competent judicial authorities may order that information on the origin and distribution networks of the goods or services which infringe an intellectual property right be provided by the infringer and/or any other person who:

2.  The information referred to in paragraph 1 shall, as appropriate, comprise:

3.  Paragraphs 1 and 2 shall apply without prejudice to other statutory provisions which:

Article 194

Provisional measures

1.  Each Party shall ensure that the judicial authorities may, at the request of the applicant, issue against the alleged infringer an interlocutory injunction intended to prevent any imminent infringement of an intellectual property right, or to forbid, on a provisional basis and subject, where appropriate, to a recurring penalty payment where provided for by domestic law, the continuation of the alleged infringements of that right, or to make such continuation subject to the lodging of guarantees intended to ensure the compensation of the right holder. An interlocutory injunction may also be issued, under the same conditions, against an intermediary whose services are being used by a third party to infringe an intellectual property right.

2.  An interlocutory injunction may also be issued to order the seizure or delivery up of goods suspected of infringing an intellectual property right, so as to prevent their entry into or movement within the channels of commerce.

3.  In the case of an alleged infringement committed on a commercial scale, the Parties shall ensure that, if the applicant demonstrates circumstances likely to endanger the recovery of damages, the judicial authorities may order the precautionary seizure of the movable and immovable property of the alleged infringer, including the blocking of his/her bank accounts and other assets. To that end, the competent authorities may order access, where appropriate, to banking, financial or commercial documents under the control of the alleged infringer.

Article 195

Measures resulting from a decision on the merits of the case

1.  Each Party shall ensure that the competent judicial authorities may order, at the request of the applicant and without prejudice to any damages due to the right holder by reason of the infringement, and without compensation of any sort, at least the definitive removal from the channels of commerce, or the destruction, of goods that they have found to be infringing an intellectual property right. If appropriate, the competent judicial authorities may also order the destruction of materials and implements predominantly used in the creation or manufacture of those goods.

2.  The Parties' judicial authorities shall have the power to order that those measures shall be carried out at the expense of the infringer, unless particular reasons are invoked for not doing so.

3.  Each Party shall ensure that, where a judicial decision is taken finding an infringement of an intellectual property right, the judicial authorities may issue against the infringer as well as against any intermediary whose services are used by a third party to infringe an intellectual property right an injunction aimed at prohibiting the continuation of the infringement.

4.  The Parties may provide that, in appropriate cases and at the request of the person liable to be subject to the measures provided for in this Article, the competent judicial authorities may order pecuniary compensation to be paid to the injured party instead of applying the measures provided for in this Article if that person acted unintentionally and without negligence, if execution of the measures in question would cause him/her disproportionate harm and if pecuniary compensation to the injured party appears reasonably satisfactory.

Article 196

Damages

1.  Each Party shall ensure that the judicial authorities, on application of the injured party, order the infringer who knowingly, or with reasonable grounds to know, engaged in an infringing activity, to pay the right holder damages appropriate to the actual prejudice suffered by that right holder as a result of the infringement. When the judicial authorities set the damages:

2.  Where the infringer did not knowingly, or with reasonable grounds to know, engage in infringing activity, the Parties may lay down that the judicial authorities may order in favour of the injured party the recovery of profits or the payment of damages which may be pre-established.

Article 197

Legal costs

Each Party shall ensure that reasonable and proportionate legal costs and other expenses incurred by the successful party shall as a general rule be borne by the unsuccessful party, unless equity does not allow this and without prejudice to exceptions provided by domestic procedural rules.

Article 198

Publication of judicial decisions

Each Party shall ensure that, either in legal proceedings instituted for infringement of an industrial property right or in legal proceedings instituted for infringement of copyright, or in both cases, the judicial authorities may order at the request of the applicant and at the expense of the infringer, appropriate measures for the dissemination of the information concerning the decision, including displaying the decision and publishing it in full or in part.

Article 199

Presumption of authorship or ownership

For the purposes of applying the measures, procedures and remedies provided for in this Sub-Section:

Sub-section 2

Other provisions

Article 200

Border measures

1.  Without prejudice to Article 75 of this Agreement and to Annex XIII to this Agreement, this Article establishes the general principles of this Agreement governing the enforcement of intellectual property rights by customs authorities and the obligations of the customs authorities of the Parties to engage in cooperation.

2.  When implementing border measures for the enforcement of intellectual property rights the Parties shall ensure consistency with their obligations under GATT 1994 and the TRIPS Agreement.

3.  The provisions on border measures in this Article are of procedural nature. They set out the conditions and procedures for action by the customs authorities where goods suspected of infringing an intellectual property right are, or should have been, under customs control. They shall not affect in any way the substantive law of the Parties on intellectual property.

4.  To facilitate the effective enforcement of intellectual property rights, the customs authorities shall adopt a range of approaches to identify shipments containing goods suspected of infringing intellectual property rights. These approaches include risk analysis techniques based, inter alia, on information provided by rights holders, intelligence gathered and cargo inspections.

5.  The Parties agree to effectively implement Article 69 of the TRIPS Agreement in respect of international trade in goods suspected of infringing intellectual property rights. For that purpose, the Parties shall establish and notify contact points in their customs administrations and shall be ready to exchange data and information on trade in such goods affecting both Parties. They shall, in particular, promote the exchange of information and cooperation between customs authorities with regard to trade in counterfeit trademark goods and pirated copyright goods. Without prejudice to the provisions of Protocol II on Mutual Administrative Assistance in Customs Matters to this Agreement customs authorities shall, where appropriate, exchange such information swiftly and with due respect to data protection laws of the Parties.

6.  The customs authorities of each Party shall cooperate, upon request or upon their own initiative, to provide relevant available information to the customs authorities of the other Party, in particular for goods in transit through the territory of a Party destined for (or originating in) the other Party.

7.  The Sub-Committee referred to in Article 74 of this Agreement shall establish the necessary practical arrangements concerning the exchange of data and information referred to in this Article.

8.  Protocol II on Mutual Administrative Assistance in Customs Matters to this Agreement shall be applicable in respect to breaches of intellectual property rights, without prejudice to forms of cooperation resulting from the application of paragraphs 5 to 7 of this Article.

9.  The Sub-Committee referred to in Article 74 of this Agreement shall act as the responsible Sub-Committee to ensure the proper functioning and implementation of this Article.

Article 201

Codes of conduct

The Parties shall encourage:

Article 202

Cooperation

1.  The Parties agree to cooperate with a view to supporting the implementation of the commitments and obligations undertaken under this Chapter.

2.  Areas of cooperation include, but are not limited to, the following activities:

CHAPTER 10

Competition

Article 203

Principles

The Parties recognise the importance of free and undistorted competition in their trade relations. The Parties acknowledge that anti-competitive business practices and state interventions (including subsidies) have the potential to distort the proper functioning of markets and undermine the benefits of trade liberalisation.

Article 204

Antitrust and mergers legislation and its implementation

1.  Each Party shall maintain in its respective territory comprehensive competition laws, which effectively address anti-competitive agreements, concerted practices and anti-competitive unilateral conduct of enterprises with dominant market power and which provide effective control of concentrations to avoid significant impediment to effective competition and abuse of dominant position.

2.  Each Party shall maintain an authority responsible and appropriately equipped for the effective enforcement of the competition laws referred to in paragraph 1.

3.  The Parties recognise the importance of applying their respective competition laws in a transparent and non-discriminatory manner, respecting the principles of procedural fairness and rights of defence of the enterprises concerned.

Article 205

State monopolies, state enterprises and enterprises entrusted with special or exclusive rights

1.  Nothing in this Chapter prevents a Party from designating or maintaining state monopolies, state enterprises or to entrust enterprises with special or exclusive rights in accordance with its respective laws.

2.  With regard to state monopolies of a commercial character, state enterprises and enterprises entrusted with special or exclusive rights, each Party shall ensure that such enterprises are subject to the competition laws referred to in Article 204(1), in so far as the application of those laws does not obstruct the performance, in law or in fact, of the particular tasks of public interest assigned to the enterprises in question.

Article 206

Subsidies

1.  For the purpose of this Article, a ‘subsidy’ is a measure which fulfils the conditions of Article 1 of the SCM Agreement irrespective whether it is granted in relation to the production of goods or the supply of services and which is specific within the meaning of Article 2 of that Agreement.

2.  Each Party shall ensure transparency in the area of subsidies. To that end, each Party shall report every two years to the other Party on the legal basis, the form, the amount or the budget and, where possible, the recipient of the subsidy granted by its government or a public body in relation to the production of goods. Such report is deemed to have been provided if the relevant information is made available by each Party on a publicly accessible website.

3.  On request of a Party, the other Party shall promptly provide information and respond to questions pertaining to particular subsidies relating to the supply of services.

Article 207

Dispute settlement

The provisions on the dispute settlement mechanism in Chapter 14 (Dispute Settlement) of Title IV (Trade and Trade-related Matters) of this Agreement shall not apply to Articles 203, 204 and 205 of this Agreement.

Article 208

Relationship with the WTO

The provisions of this Chapter are without prejudice to the rights and obligations of a Party under the WTO Agreement, in particular the SCM Agreement and the Dispute Settlement Understanding (DSU).

Article 209

Confidentiality

When exchanging information under this Chapter the Parties shall take into account the limitations imposed by the requirements of professional and business secrecy in their respective jurisdictions.

CHAPTER 11

Trade-related energy provisions

Article 210

Definitions

For the purposes of this Chapter:

Article 211

Transit

The Parties shall ensure transit, consistent with their international commitments in accordance with the provisions of GATT 1994 and the Energy Charter Treaty.

Article 212

Unauthorised taking of goods in transit

Each Party shall take all necessary measures to prohibit and address any unauthorised taking of energy goods in transit through its territory by any entity subject to that Party's control or jurisdiction.

Article 213

Uninterrupted transit

1.  A Party shall not take from or interfere otherwise with the transit of energy goods through their territory, except where such taking or other interference is specifically provided for in a contract or other agreement governing such transit or where a continued operation of the energy transport facilities without prompt corrective action creates an unreasonable threat to public security, cultural heritage, health, safety or the environment, subject to the requirement that such action is not carried out in a manner which would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction of international trade.

2.  In the event of a dispute over any matter involving the Parties or one or more entities subject to the control or jurisdiction of one of the Parties, a Party through the territory of which the transit of energy goods takes place shall not, prior to the conclusion of a dispute resolution procedure under the relevant contract or of an emergency procedure under Annex XVIII to this Agreement or under Chapter 14 (Dispute Settlement) of Title IV (Trade and Trade-related Matters) of this Agreement, interrupt or reduce such transit, or permit any entity subject to its control or jurisdiction, including a state trading enterprise, to interrupt or reduce such transit, except under the circumstances provided in paragraph 1.

3.  A Party shall not be held liable for an interruption or reduction of transit pursuant to this Article where that Party is unable to supply or to transit energy goods as a result of actions attributable to a third country or an entity under the control or jurisdiction of a third country.

Article 214

Transit obligation for operators

Each Party shall ensure that operators of energy transport facilities take the necessary measures to:

Article 215

Regulatory authorities

1.  Each Party shall designate independent regulatory authorities empowered to regulate the gas and electricity markets. These regulatory authorities shall be legally distinct and functionally independent from any other public or private enterprise, market participant or operator.

2.  The decisions of and the procedures used by a regulatory authority shall be impartial with respect to all market participants.

3.  An operator affected by any decision of a regulatory authority shall have the right to appeal against that decision to an appeal body which is independent of the parties involved. Where the appeal body is not judicial in character, written reasons for its decision shall always be given and its decisions shall also be subject to review by an impartial and independent judicial authority. Decisions taken by appeal bodies shall be effectively enforced.

Article 216

Organisation of markets

1.  The Parties shall ensure that energy markets are operated with a view to achieving competitive, secure and environmentally sustainable conditions and shall not discriminate between enterprises as regards rights or obligations.

2.  Notwithstanding paragraph 1, a Party may impose on enterprises, in the general economic interest, obligations which may relate to security, including security of supply; regularity, quality and price of supplies; and environmental protection, including energy efficiency, energy from renewable sources and climate protection. Such obligations shall be clearly defined, transparent, proportionate and verifiable.

3.  Where a Party regulates the price at which gas and electricity are sold on the domestic market, that Party shall ensure that the methodology underlying the calculation of the regulated price is published prior to the entry into force of the regulated price.

Article 217

Access to energy transport facilities

1.  Each Party shall ensure on its territory the implementation of a system of third party access to energy transport facilities and Liquefied Natural Gas and storage facilities applicable to all users and applied in a transparent, objective and non-discriminatory manner.

2.  Each Party shall ensure that the access tariff to energy transport facilities and all other conditions related to access to an energy transport facility are objective, reasonable, transparent and shall not discriminate on the basis of origin, ownership or destination of the energy good.

3.  Each Party shall ensure that all technical and contracted capacity, both physical and virtual, is allocated through transparent and non-discriminatory criteria and procedures.

4.  In case of refusal to grant third party access, the Parties shall ensure that, upon request, the energy transport facility operators provide a duly substantiated explanation to the requesting party, subject to legal redress.

5.  A Party may exceptionally derogate from the provisions in paragraphs 1 to 4 according to objective criteria laid down in its legislation. In particular, a Party may implement in its legislation a possibility to grant, on a case-by-case basis, for a limited period of time, an exemption to the third party access rules for major new energy transport facilities.

Article 218 ( 32 )

Relationship with the Energy Community Treaty

1.  In the event of a conflict between the provisions of this Chapter and the provisions of the Energy Community Treaty or the provisions of the Union legislation made applicable under the Energy Community Treaty, the provisions of the Energy Community Treaty or the provisions of the Union legislation made applicable under the Energy Community Treaty shall prevail to the extent of such conflict.

2.  In implementing this Chapter, preference shall be given to the adoption of legislation or other acts which are consistent with the Energy Community Treaty or are based on the legislation applicable in the Union. In the event of a dispute as regards this Chapter, legislation or other acts which meet these criteria shall be presumed to conform to this Chapter. In assessing whether the legislation or other acts meet these criteria, any relevant decision taken under Article 91 of the Energy Community Treaty shall be taken into account.

CHAPTER 12

Transparency

Article 219

Definitions

For the purposes of this Chapter:

Article 220

Objective

Recognising the impact which regulatory environment may have on trade and investment between the Parties, the Parties shall provide a predictable regulatory environment for economic operators and efficient procedures, including for small and medium-sized enterprises, taking due account of the requirements of legal certainty and proportionality.

Article 221

Publication

1.  Each Party shall ensure that measures of general application:

2.  Each Party shall:

Article 222

Enquiries and contact points

1.  In order to facilitate the communication between the Parties on any matter covered by Title IV (Trade and Trade-related Matters) of this Agreement, each Party shall designate a contact point acting as coordinator.

2.  Each Party shall establish or maintain appropriate mechanisms for responding to enquiries from any person regarding any measure of general application which is proposed or in force, and its application. Enquiries may be addressed through the contact point established under paragraph 1 or through any other mechanism, as appropriate.

3.  The Parties recognise that any response provided for in paragraph 2 may not be definitive or legally binding but for information purposes only, unless otherwise provided for in their respective laws and regulations.

4.  Upon request of a Party, the other Party shall promptly provide information and respond to questions pertaining to any measure of general application or any proposal to adopt or to amend any measure of general application that the requesting Party considers might affect the operation of Title IV (Trade and Trade-related Matters) of this Agreement, regardless of whether the requesting Party has been previously notified of that measure.

Article 223

Administration of measures of general application

1.  Each Party shall administer in an objective, impartial and reasonable manner all measures of general application.

2.  To that end, each Party, in applying such measures to particular persons, goods or services of the other Party in specific cases, shall:

Article 224

Review and appeal

1.  Each Party shall establish or maintain judicial, arbitral or administrative tribunals or procedures for the purpose of the prompt review and, where warranted, correction of administrative action relating to matters covered by Title IV (Trade and Trade-related Matters) of this Agreement. Such tribunals or procedures shall be impartial and independent of the office or authority entrusted with administrative enforcement and those responsible for them shall not have any substantial interest in the outcome of the matter.

2.  Each Party shall ensure that, in any such tribunals or procedures, the parties to the proceeding are provided with the right to:

3.  Each Party shall ensure that, subject to appeal or further review as provided for in its law, such decision shall be implemented by, and shall govern the practice of, the office or the authority with respect to the administrative action at issue.

Article 225

Regulatory quality and performance and good administrative behaviour

1.  The Parties agree to cooperate in promoting regulatory quality and performance, including through exchange of information and best practices on their respective regulatory policies and regulatory impact assessments.

2.  The Parties recognise the importance of the principles of good administrative behaviour ( 33 ) and agree to cooperate in promoting such principles, including through exchange of information and best practices.

Article 226

Specific rules

The provisions of this Chapter shall apply without prejudice to any specific rules on transparency established in other Chapters of Title IV (Trade and Trade-related Matters) of this Agreement.

CHAPTER 13

Trade and sustainable development

Article 227

Context and objectives

1.  The Parties recall the Agenda 21 of the United Nations Conference on Environment and Development of 1992, the International Labour Organisation's (ILO) Declaration on Fundamental Principles and Rights at Work of 1998, the Johannesburg Plan of Implementation on Sustainable Development of 2002, the Ministerial Declaration of the United Nations Economic and Social Council on Generating Full and Productive Employment and Decent Work for All of 2006, and the ILO Declaration on Social Justice for a Fair Globalisation of 2008. The Parties reaffirm their commitment to promote the development of international trade in such a way as to contribute to the objective of sustainable development, for the welfare of present and future generations, and to ensure that this objective is integrated and reflected at every level of their trade relationship.

2.  The Parties reaffirm their commitment to pursue sustainable development and recognise that economic development, social development and environmental protection are its interdependent and mutually reinforcing pillars. They underline the benefit of considering trade-related labour ( 34 ) and environmental issues as part of a global approach to trade and sustainable development.

Article 228

Right to regulate and levels of protection

1.  The Parties recognise the right of each Party to determine its sustainable development policies and priorities, to establish its own levels of domestic environmental and labour protection, and to adopt or modify accordingly its relevant law and policies, consistently with their commitment to the internationally recognised standards and agreements referred to in Articles 229 and 230 of this Agreement.

2.  In that context, each Party shall strive to ensure that its law and policies provide for and encourage high levels of environmental and labour protection and shall strive to continue to improve its law and policies and the underlying levels of protection.

Article 229

Multilateral labour standards and agreements

1.  The Parties recognise full and productive employment and decent work for all as key elements for managing globalisation, and reaffirm their commitment to promote the development of international trade in a way that is conducive to full and productive employment and decent work for all. In this context, the Parties commit to consulting and cooperating as appropriate on trade-related labour issues of mutual interest.

2.  In accordance with their obligations as members of the ILO and the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up, adopted by the International Labour Conference at its 86th Session in 1998, the Parties commit to respecting, promoting and realising in their law and practice and in their whole territory the internationally recognised core labour standards, as embodied in the fundamental ILO conventions, and in particular:

3.  The Parties reaffirm their commitment to effectively implement in their law and practice the fundamental, the priority and other ILO conventions ratified by Georgia and the Member States respectively.

4.  The Parties will also consider the ratification of the remaining priority and other conventions that are classified as up-to-date by the ILO. The Parties shall regularly exchange information on their respective situation and developments in this regard.

5.  The Parties recognise that the violation of fundamental principles and rights at work cannot be invoked or otherwise used as a legitimate comparative advantage and that labour standards should not be used for protectionist trade purposes.

Article 230

Multilateral environmental governance and agreements

1.  The Parties recognise the value of multilateral environmental governance and agreements as a response of the international community to global or regional environmental problems, and stress the need to enhance the mutual supportiveness between trade and environmental policies. In this context, the Parties commit to consult and cooperate as appropriate with respect to negotiations on trade-related environmental issues and with respect to other trade-related environmental matters of mutual interest.

2.  The Parties reaffirm their commitment to effectively implement in their law and practice the multilateral environmental agreements (MEAs) to which they are party.

3.  The Parties shall regularly exchange information on their respective situation and advancements as regards ratifications of MEAs or amendments to such agreements.

4.  The Parties reaffirm their commitment to reaching the ultimate objective of the United Nations Framework Convention on Climate Change (UNFCCC) and the Protocol thereto (Kyoto Protocol). They commit to cooperate on the development of the future international climate change framework under the UNFCCC and its related agreements and decisions.

5.  Nothing in this Agreement shall prevent the Parties from adopting or maintaining measures to implement the MEAs to which they are party, provided that such measures are not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination between the Parties or a disguised restriction on trade.

Article 231

Trade and investment promoting sustainable development

The Parties reconfirm their commitment to enhance the contribution of trade to the goal of sustainable development in its economic, social and environmental dimensions. Accordingly:

Article 232

Biological diversity

1.  The Parties recognise the importance of ensuring the conservation and the sustainable use of biological diversity as a key element for the achievement of sustainable development, and reaffirm their commitment to conserve and sustainably use biological diversity, in accordance with the Convention on Biological Diversity and other relevant international instruments to which they are party.

2.  To that end, the Parties commit to:

Article 233

Sustainable management of forests and trade in forest products

1.  The Parties recognise the importance of ensuring the conservation and the sustainable management of forests and of forests' contribution to the Parties' economic, environmental and social objectives.

2.  To that end, the Parties commit to:

Article 234

Trade in fish products

Taking into account the importance of ensuring responsible management of fish stocks in a sustainable manner as well as promoting good governance in trade, the Parties commit to:

Article 235

Upholding levels of protection

1.  The Parties recognise that it is inappropriate to encourage trade or investment by lowering the levels of protection afforded in domestic environmental or labour law.

2.  A Party shall not waive or derogate from, or offer to waive or derogate from, its environmental or labour law as an encouragement for trade or the establishment, the acquisition, the expansion or the retention of an investment of an investor in its territory.

3.  A Party shall not, through a sustained or recurring course of action or inaction, fail to effectively enforce its environmental and labour law, as an encouragement for trade or investment.

Article 236

Scientific information

When preparing and implementing measures aimed at protecting the environment or labour conditions that may affect trade or investment, the Parties shall take account of available scientific and technical information, and relevant international standards, guidelines or recommendations if they exist. In this regard, the Parties may also use the precautionary principle.

Article 237

Transparency

Each Party, in accordance with its domestic law and Chapter 12 (Transparency) of Title IV (Trade and Trade-related Matters) of this Agreement, shall ensure that any measure aimed at protecting the environment or labour conditions that may affect trade or investment is developed, introduced and implemented in a transparent manner, with due notice and public consultation, and with appropriate and timely communication to and consultation of non-state actors.

Article 238

Review of sustainability impacts

The Parties commit to reviewing, monitoring and assessing the impact of the implementation of Title IV (Trade and Trade-related Matters) of this Agreement on sustainable development through their respective participative processes and institutions, as well as those set up under this Agreement, for instance through trade-related sustainability impact assessments.

Article 239

Working together on trade and sustainable development

The Parties recognise the importance of working together on trade-related aspects of environmental and labour policies in order to achieve the objectives of Title IV (Trade and Trade-related Matters) of this Agreement. They may cooperate in, inter alia, the following areas:

Article 240

Institutional set-up and overseeing mechanisms

1.  Each Party shall designate a contact point within its administration that shall serve as the contact point with the other Party for purposes of implementing this Chapter.

2.  The Trade and Sustainable Development Sub-Committee is hereby established. It shall report on its activities to the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement. It shall comprise senior officials from within the administrations of each Party.

3.  The Trade and Sustainable Development Sub-Committee shall meet within the first year after the date this Agreement enters into force, and thereafter as necessary, to oversee the implementation of this Chapter, including cooperative activities undertaken under Article 239 of this Agreement. That Sub-Committee shall establish its own rules of procedure.

4.  Each Party shall convene new or consult existing domestic advisory group(s) on sustainable development with the task of advising on issues relating to this Chapter. Such group(s) may submit views or recommendations on the implementation of this Chapter, including on its (their) own initiative.

5.  The domestic advisory group(s) shall comprise independent representative organisations of civil society in a balanced representation of economic, social, and environmental stakeholders, including, among others, employers and workers organisations, non-governmental organisations, business groups, as well as other relevant stakeholders.

Article 241

Joint Civil Society Dialogue Forum

1.  The Parties shall facilitate a joint forum with civil society organisations established in their territories, including members of their domestic advisory group(s), and the public at large to conduct a dialogue on sustainable development aspects of this Agreement. The Parties shall promote a balanced representation of relevant interests, including independent representative organisations of employers, workers, environmental interests and business groups, as well as other relevant stakeholders, as appropriate.

2.  The joint civil society dialogue forum shall be convened once a year unless otherwise agreed by the Parties. The Parties shall agree on the operation of the joint civil society dialogue forum no later than one year after the entry into force of this Agreement.

3.  The Parties shall present an update on the implementation of this Chapter to the joint civil society dialogue forum. The views and the opinions of a joint civil society dialogue forum shall be submitted to the Parties and shall be publicly available.

Article 242

Government consultations

1.  For any matter arising under this Chapter the Parties shall only have recourse to the procedures established under this Article and Article 243 of this Agreement.

2.  A Party may request consultations with the other Party regarding any matter arising under this Chapter by delivering a written request to the contact point of the other Party. The request shall present the matter clearly, identifying the problem at issue and providing a brief summary of the claims under this Chapter. Consultations shall start promptly after a Party delivers a request for consultations.

3.  The Parties shall make every attempt to arrive at a mutually satisfactory resolution of the matter. The Parties shall take into account the activities of the ILO or relevant multilateral environmental organisations or bodies so as to promote greater cooperation and coherence between the work of the Parties and these organisations. Where relevant, the Parties may seek advice from these organisations or bodies, or any person or body they deem appropriate, in order to fully examine the matter.

4.  If a Party considers that the matter needs further discussion, that Party may request that the Trade and Sustainable Development Sub-Committee be convened to consider the matter by delivering a written request to the contact point of the other Party. That Sub-Committee shall convene promptly and endeavour to agree on a resolution of the matter.

5.  Where appropriate, that Sub-Committee may seek the advice of the domestic advisory group(s) of either or both Party(ies) or other expert assistance.

6.  Any resolution reached by the consulting Parties on the matter shall be made publicly available.

Article 243

Panel of Experts

1.  Each Party may, 90 days after the delivery of a request for consultations under Article 242(2) of this Agreement, request that a Panel of Experts be convened to examine a matter that has not been satisfactorily addressed through government consultations.

2.  The provisions of Sub-Section 1 (Arbitration procedure) and Sub-Section 3 (Common provisions), of Section 3 (Dispute settlement procedures), and of Article 270 of Chapter 14 (Dispute Settlement) of Title IV (Trade and Trade-related Matters) of this Agreement, as well as the Rules of Procedure in Annex XX to this Agreement and the Code of Conduct for Arbitrators and Mediators (‘Code of Conduct’) set out in Annex XXI to this Agreement shall apply, except as otherwise provided in this Article.

3.  At its first meeting after the entry into force of this Agreement, the Trade and Sustainable Development Sub-Committee shall establish a list of at least 15 individuals who are willing and able to serve as experts in panel procedures. Each Party shall propose at least five individuals to serve as experts. The Parties shall also select at least five individuals who are not nationals of either Party who may serve as chairperson to the Panel of Experts. The Trade and Sustainable Development Sub-Committee shall ensure that the list is always maintained at this level.

4.  The list referred to in paragraph 3 of this Article shall comprise individuals with specialised knowledge or expertise in law, labour or environmental issues addressed in this Chapter, or the resolution of disputes arising under international agreements. They shall be independent, serve in their individual capacities and not take instructions from any organisation or government with regard to issues related to the matter at stake, or be affiliated with the government of any Party, and shall comply with Annex XXI to this Agreement.

5.  For matters arising under this Chapter, the Panel of Experts shall be composed of experts from the list referred to in paragraph 3 of this Article, in accordance with Article 249 of this Agreement and rule 8 of the Rules of Procedure set out in Annex XX to this Agreement.

6.  The Panel of Experts may seek information and advice from either Party, the domestic advisory group(s) or any other source it deems appropriate. In matters related to the respect of multilateral agreements as set out in Article 229 and 230 of this Agreement, the Panel of Experts should seek information and advice from the ILO or MEA bodies.

7.  The Panel of Experts shall issue its report to the Parties, in accordance with the relevant procedures set out in Chapter 14 (Dispute Settlement) of Title IV (Trade and Trade-related Matters) of this Agreement, setting out the findings of facts, the applicability of the relevant provisions and the basic rationale behind any findings and recommendations that it makes. The Parties shall make the report publicly available within 15 days of its issuance.

8.  The Parties shall discuss appropriate measures to be implemented taking into account the Panel of Experts' report and recommendations. The Party concerned shall inform its advisory groups and the other Party of its decisions on any action or measure to be implemented no later than three months after the public release of the report. The follow-up to the report and the recommendations of the Panel of Experts shall be monitored by the Trade and Sustainable Development Sub-committee. The advisory bodies and the Joint Civil Society Dialogue Forum may submit observations to the Trade and Sustainable Development Sub-Committee in this regard.

CHAPTER 14

Dispute settlement

Section 1

Objective and scope

Article 244

Objective

The objective of this Chapter is to establish an effective and efficient mechanism for avoiding and settling any dispute between the Parties concerning the interpretation and application of Title IV (Trade and Trade-related Matters) of this Agreement with a view to arriving at, where possible, a mutually agreed solution.

Article 245

Scope of application

This Chapter shall apply with respect to any dispute concerning the interpretation and application of the provisions of Title IV (Trade and Trade-related Matters) of this Agreement, except as otherwise provided.

Section 2

Consultations and mediation

Article 246

Consultations

1.  The Parties shall endeavour to resolve any dispute referred to in Article 245 of this Agreement by entering into consultations in good faith with the aim of reaching a mutually agreed solution.

2.  A Party shall seek consultations by means of a written request to the other Party, copied to the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, giving reasons for the request, including by identifying the measure at issue and the provisions referred to in Article 245 of this Agreement that it considers applicable.

3.  Consultations shall be held within 30 days of the date of receipt of the request and take place, unless the Parties agree otherwise, in the territory of the Party to which the request is made. The consultations shall be deemed concluded within 30 days of the date of receipt of the request, unless both Parties agree to continue consultations. Consultations, in particular all information disclosed and positions taken by the Parties during the consultations, shall be confidential, and without prejudice to the rights of either Party in any further proceedings.

4.  Consultations on matters of urgency, including those regarding perishable goods or seasonal goods or services shall be held within 15 days of the date of receipt of the request by the requested Party, and shall be deemed concluded within those 15 days unless both Parties agree to continue consultations.

5.  If the Party to which the request is made does not respond to the request for consultations within ten days of the date of its receipt, or if consultations are not held within the timeframes laid down in paragraph 3 or in paragraph 4 of this Article respectively, or if the Parties agree not to have consultations, or if consultations have been concluded and no mutually agreed solution has been reached, the Party that sought consultations may have recourse to Article 248 of this Agreement.

6.  During the consultations each Party shall deliver sufficient factual information, so as to allow a complete examination of the manner in which the measure at issue could affect the operation and the application of this Agreement.

7.  Where consultations concern the transport of energy goods through networks and one Party views the resolution of the dispute as urgent because of an interruption, in full or in part, of transport of natural gas, oil or electricity between the Parties the consultations shall be held within three days of the date of submission of the request, and shall be deemed concluded three days after the date of submission of the request unless both Parties agree to continue consultations.

Article 247

Mediation

Any Party may request the other Party to enter into a mediation procedure pursuant to Annex XIX to this Agreement with respect to any measure adversely affecting its trade interests.

Section 3

Dispute settlement procedures

Sub-section 1

Arbitration procedure

Article 248

Initiation of the arbitration procedure

1.  Where the Parties have failed to resolve the dispute by recourse to consultations as provided for in Article 246 of this Agreement, the Party that sought consultations may request the establishment of an arbitration panel in accordance with this Article.

2.  The request for the establishment of an arbitration panel shall be made in writing to the other Party and the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement. The complaining Party shall identify in its request the measure at issue, and it shall explain how such measure is inconsistent with the provisions referred to in Article 245 of this Agreement in a manner sufficient to present the legal basis for the complaint clearly.

Article 249

Establishment of the arbitration panel

1.  An arbitration panel shall be composed of three arbitrators.

2.  Upon receipt of the request for the establishment of an arbitration panel, the Parties shall consult promptly and shall endeavour to reach an agreement on the composition of the arbitration panel. Notwithstanding paragraphs 3 and 4 of this Article, the Parties may at any time before the establishment of the arbitration panel decide to compose the arbitration panel by mutual agreement.

3.  Either Party may request to apply the procedure for panel composition laid down in this paragraph after five days from the request for the establishment of a panel, if no agreement has been found on the composition of the arbitration panel. Each Party may appoint an arbitrator from the list established under Article 268 of this Agreement within ten days from the date of request to apply the procedure in this paragraph. If any of the Parties fails to appoint the arbitrator, the arbitrator shall, upon request of the other ►C1  Party, be ◄ selected by lot by the chair or co-chairs of the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, or their delegates, from the sub-list of that Party contained in the list established under Article 268 of this Agreement. Unless the Parties have reached an agreement concerning the chairperson of the arbitration panel, upon request of any of the Parties, the chair or co-chairs of the Association Committee in Trade configuration or their delegates, shall select by lot the chairperson of the arbitration panel from the sub-list of chairpersons contained in the list established under Article 268 of this Agreement.

4.  In the event of selection by lot of one or more arbitrators, the draw shall take place within five days of the request to select by lot referred to in paragraph 3.

5.  The date of establishment of the arbitration panel shall be the date on which the last of the three selected arbitrators accepted the appointment in accordance with the Rules of Procedure in Annex XX to this Agreement.

6.  Should any of the lists provided for in Article 268 of this Agreement not be established or not contain sufficient names at the time a request is made pursuant to paragraph 3, the arbitrators shall be drawn by lot. The draw shall take place from the individuals who have been formally proposed by each of the Parties or, in case one Party has failed to make such proposal, the draw shall be made from the individuals proposed by the other Party.

7.  Unless the Parties agree otherwise, in respect of a dispute concerning Chapter 11 (Trade-related energy) of Title IV (Trade and Trade-related Matters) of this Agreement which a Party considers to be urgent because of an interruption, in full or in part, of any transport of natural gas, oil, or electricity or a threat thereof between the Parties, the procedure of selection by lot envisaged in paragraph 3 of this Article shall apply without recourse to the first sentence of paragraph 2 of this Article or to the other steps provided for in paragraph 3 of this Article, and the period referred to in paragraph 4 of this Article shall be two days.

Article 250

Preliminary ruling on urgency

If a Party so requests, the arbitration panel shall, within ten days of the date of its establishment, give a preliminary ruling on whether it deems the case to be urgent.

Article 251

Arbitration panel report

1.  The arbitration panel shall notify an interim report to the Parties setting out the findings of fact, the applicability of relevant provisions and the basic rationale behind any findings and recommendations that it makes, no later than 90 days after the date of establishment of the arbitration panel. Where it considers that this deadline cannot be met, the chairperson of the arbitration panel shall notify the Parties and the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, in writing, stating the reasons for the delay and the date on which the panel plans to notify its interim report. Under no circumstances should the interim report be notified later than 120 days after the date of establishment of the arbitration panel. The interim report shall not be made public.

2.  A Party may submit a written request to the arbitration panel to review precise aspects of the interim report within 14 days of its notification.

3.  In cases of urgency, including those involving perishable goods or seasonal goods or services, the arbitration panel shall make every effort to notify its interim report within 45 days and, in any case, no later than 60 days after the date of establishment of the arbitration panel. A Party may submit a written request to the arbitration panel to review precise aspects of the interim report, within 7 days of the notification of the interim report.

4.  After considering any written comments by the Parties on the interim report, the arbitration panel may modify its report and make any further examination it considers appropriate. The findings of the final panel ruling shall include a sufficient discussion of the arguments made at the interim review stage, and shall answer clearly to the questions and observations of the two Parties.

5.  In respect of a dispute concerning Chapter 11 (Trade-related energy) of Title IV (Trade and Trade-related Matters) of this Agreement which a Party considers to be urgent because of an interruption, in full or in part, of any transport of natural gas, oil or electricity or a threat thereof, between the Parties, the interim report shall be notified 20 days after the date of establishment of the arbitration panel, and any request pursuant to paragraph 2 of this Article shall be made within five days of the notification of the written report. The arbitration panel may also decide to dispense with the interim report.

Article 252

Conciliation for urgent energy disputes

1.  In respect of a dispute concerning Chapter 11 (Trade-related energy) of Title IV (Trade and Trade-related Matters) of this Agreement which a Party considers to be urgent because of an interruption, in full or in part, of any transport of natural gas, oil, or electricity or a threat thereof between the Parties, either Party may request the chairperson of the arbitration panel to act as a conciliator concerning any matter related to the dispute by making a request to the notified panel.

2.  The conciliator shall seek an agreed resolution of the dispute or seek to agree a procedure to achieve such resolution. If within 15 days of his/her appointment he/she has failed to secure such agreement, he/she shall recommend a resolution to the dispute or a procedure to achieve such resolution and shall decide on the terms and conditions to be observed from a date which he/she shall specify until the dispute is resolved.

3.  The Parties and the entities under their control or jurisdiction shall respect recommendations made under paragraph 2 on the terms and conditions for three months following the conciliator's decision or until resolution of the dispute, whichever is earlier.

4.  The conciliator shall respect the Code of Conduct set out in Annex XXI to this Agreement.

Article 253

Notification of the ruling of the arbitration panel

1.  The arbitration panel shall notify its final ruling to the Parties and to the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, within 120 days from the date of establishment of the arbitration panel. Where it considers that this deadline cannot be met, the chairperson of the arbitration panel shall notify the Parties and the Association Committee in Trade configuration in writing, stating the reasons for the delay and the date on which the panel plans to notify its ruling. Under no circumstances should the ruling be notified later than 150 days after the date of establishment of the arbitration panel.

2.  In cases of urgency, including those involving perishable goods or seasonal goods or services, the arbitration panel shall make every effort to notify its ruling within 60 days from the date of its establishment. Under no circumstances should the ruling be notified later than 75 days after the date of its establishment.

3.  In respect of a dispute concerning Chapter 11 (Trade-related Energy) of Title IV (Trade and Trade-related Matters) of this Agreement which a Party considers to be urgent because of an interruption, in full or in part, of any transport of natural gas, oil or electricity or a threat thereof between the Parties, the arbitration panel shall notify its ruling within 40 days from the date of its establishment.

Sub-section 2

Compliance

Article 254

Compliance with the arbitration panel ruling

The Party complained against shall take any measure necessary to comply promptly and in good faith with the arbitration panel ruling.

Article 255

Reasonable period of time for compliance

1.  If immediate compliance is not possible, the Parties shall endeavour to agree on the period of time to comply with the ruling. In such a case, the Party complained against shall, no later than 30 days after the receipt of the notification of the arbitration panel ruling to the Parties, notify the complaining Party and the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, of the time it will require for compliance (‘reasonable period of time’).

2.  If there is disagreement between the Parties on the reasonable period of time to comply with the arbitration panel ruling, the complaining Party shall, within 20 days of the date of receipt of the notification made under paragraph 1 by the Party complained against, request in writing the original arbitration panel to determine the length of the reasonable period of time. Such request shall be notified simultaneously to the other Party and to the Association Committee in Trade configuration. The original arbitration panel shall notify its ruling to the Parties and to the Association Committee in Trade configuration within 20 days from the date of submission of the request.

3.  The Party complained against shall inform the complaining Party in writing of its progress to comply with the arbitration panel ruling at least one month before the expiry of the reasonable period of time.

4.  The reasonable period of time may be extended by mutual agreement of the Parties.

Article 256

Review of any measure taken to comply with the arbitration panel ruling

1.  The Party complained against shall notify the complaining Party and the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, before the end of the reasonable period of time of any measure that it has taken to comply with the arbitration panel ruling.

2.  In the event that there is disagreement between the Parties concerning the existence or the consistency of any measure under paragraph 1, taken to comply with the provisions referred to in Article 245 of this Agreement, the complaining Party may request in writing the original arbitration panel to rule on the matter. Such request shall identify the specific measure at issue and explain how such measure is inconsistent with the provisions referred to in Article 245 of this Agreement, in a manner sufficient to present the legal basis for the complaint clearly. The original arbitration panel shall notify its ruling to the Parties and to the Association Committee in Trade configuration within 45 days of the date of submission of the request.

Article 257

Temporary remedies in case of non-compliance

1.  If the Party complained against fails to notify any measure taken to comply with the arbitration panel ruling before the expiry of the reasonable period of time, or if the arbitration panel rules that no measure taken to comply exists or that the measure notified under Article 256(1) of this Agreement, is inconsistent with that Party's obligations under the provisions referred to in Article 245 of this Agreement, the Party complained against shall, if so requested by the complaining Party and after consultations with that Party, present an offer for temporary compensation.

2.  If the complaining Party decides not to request an offer for temporary compensation under paragraph 1 of this Article, or, in case such request is made, if no agreement on compensation is reached within 30 days after the end of the reasonable period of time or of the notification of the arbitration panel ruling under Article 256 of this Agreement that no measure taken to comply exists or that a measure taken to comply is inconsistent with the provisions referred to in Article 245 of this Agreement, the complaining Party shall be entitled, upon notification to the other Party and to the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, to suspend obligations arising from any provision referred to in Article 245 of this Agreement, at an adequate level, equivalent to the nullification or impairment caused by the violation. The notification shall specify the level of suspension of obligations. The complaining Party may implement the suspension at any moment after the expiry of ten days after the date of receipt of the notification by the Party complained against, unless the Party complained against has requested arbitration under paragraph 4 of this Article.

3.  In suspending obligations, the complaining Party may choose to increase its tariff rates to the level applied to other WTO Members on a volume of trade to be determined in such a way that the volume of trade multiplied by the increase of the tariff rates equals the value of the nullification or impairment caused by the violation.

4.  If the Party complained against considers that the level of suspension is not equivalent to the nullification or impairment caused by the violation, it may request in writing the original arbitration panel to rule on the matter. Such request shall be notified to the complaining Party and to the Association Committee in Trade configuration before the expiry of the ten day period referred to in paragraph 2. The original arbitration panel shall notify its ruling on the level of the suspension of obligations to the Parties and to the Association Committee in Trade configuration within 30 days of the date of submission of the request. Obligations shall not be suspended until the original arbitration panel has notified its ruling, and any suspension shall be consistent with the arbitration panel ruling.

5.  The suspension of obligations and the compensation foreseen in this Article shall be temporary and shall not be applied after:

Article 258

Remedies for urgent energy disputes

1.  In respect of a dispute concerning Chapter 11 (Trade-related Energy) of Title IV (Trade and Trade-related Matters) of this Agreement which a Party considers to be urgent because of an interruption, in full or in part, of any transport of natural gas, oil, or electricity or a threat thereof between the Parties, the provisions of this Article on remedies shall apply.

2.  By way of derogation from Articles 255, 256 and 257 of this Agreement, the complaining Party may suspend obligations arising under Title IV (Trade and Trade-related Matters) of this Agreement to an adequate level, equivalent to the nullification or impairment caused by the Party failing to bring itself into compliance with the arbitration panel ruling within 15 days of its notification. That suspension may take effect immediately. Such suspension may be maintained as long as the Party complained against has not complied with the arbitration panel ruling.

3.  Should the Party complained against dispute the existence of a failure to comply or the level of the suspension due to the failure to comply, it may initiate proceedings under Articles 257(4) and 259 of this Agreement which shall be examined expeditiously. The complaining Party shall be required to remove or adjust the suspension only once the Panel has ruled on the matter, and may maintain the suspension pending the proceedings.

Article 259

Review of any measure taken to comply after the adoption of temporary remedies for non-compliance

1.  The Party complained against shall notify the complaining Party and the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, of the measure it has taken to comply with the ruling of the arbitration panel following the suspension of concessions or following the application of temporary compensation, as the case may be. With the exception of cases under paragraph 2 of this Article, the complaining Party shall terminate the suspension of concessions within 30 days from the receipt of the notification. In cases where compensation has been applied, and with the exception of cases under paragraph 2 of this Article, the Party complained against may terminate the application of such compensation within 30 days from its notification that it has complied with the ruling of the arbitration panel.

2.  If the Parties do not reach an agreement on whether the notified measure brings the Party complained against into conformity with the provisions referred to in Article 245 of this Agreement, within 30 days of the date of receipt of the notification, the complaining Party shall request in writing the original arbitration panel to rule on the matter. Such a request shall be notified simultaneously to the other Party and to the Association Committee in Trade configuration. The arbitration panel ruling shall be notified to the Parties and to the Association Committee in Trade configuration within 45 days of the date of submission of the request. If the arbitration panel rules that the measure taken to comply is in accordance with the provisions referred to in Article 245 of this Agreement, the suspension of obligations or compensation, as the case may be, shall be terminated. Where relevant, the complaining Party shall adapt the level of suspension of concessions to the level determined by the arbitration panel.

Article 260

Replacement of arbitrators

If in an arbitration proceeding under this Chapter, the original panel, or some of its members, are unable to participate, withdraw, or need to be replaced because they do not comply with the requirements of the Code of Conduct set out in Annex XXI to this Agreement, the procedure set out in Article 249 of this Agreement shall apply. The time-limit for the notification of the arbitration panel ruling shall be extended by 20 days with the exception of the urgent disputes referred to in paragraph 7 of Article 249, for which the time-limit shall be extended by five days.

Sub-section 3

Common provisions

Article 261

Suspension and termination of arbitration and compliance procedures

The arbitration panel shall, at the written request of both Parties, suspend its work at any time for a period agreed by the Parties not exceeding 12 consecutive months. The arbitration panel shall resume its work before the end of that period at the written request of both Parties or at the end of this period at the written request of any Party. The requesting Party shall inform the chair or co-chairs of the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, and the other Party, accordingly. If a Party does not request the resumption of the arbitration panel's work at the expiry of the agreed suspension period, the procedure shall be terminated. The suspension and termination of the arbitration panel's work are without prejudice to the rights of either Party in another proceeding subject to Article 269 of this Agreement.

Article 262

Mutually agreed solution

The Parties may reach a mutually agreed solution to a dispute under Title IV (Trade and Trade-related Matters) of this Agreement at any time. They shall jointly notify the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, and the chairperson of the arbitration panel, where applicable, of any such solution. If the solution requires approval pursuant to the relevant domestic procedures of either Party, the notification shall refer to this requirement, and the dispute settlement procedure shall be suspended. If such approval is not required, or if the completion of any such domestic procedures is notified, the dispute settlement procedure shall be terminated.

Article 263

Rules of procedure

1.  Dispute settlement procedures under this Chapter shall be governed by the Rules of Procedure set out in Annex XX to this Agreement and by the Code of Conduct set out in Annex XXI to this Agreement.

2.  Any hearing of the arbitration panel shall be open to the public unless otherwise provided for in the Rules of Procedure.

Article 264

Information and technical advice

At the request of a Party, or upon its own initiative, the arbitration panel may obtain any information it deems appropriate for the arbitration panel proceeding from any source, including the Parties involved in the dispute. The arbitration panel also has the right to seek the opinion of experts as it deems appropriate. The arbitration panel shall consult the Parties before choosing such experts. Natural or legal persons established in the territory of a Party may submit amicus curiae briefs to the arbitration panel in accordance with the Rules of Procedure. Any information obtained under this Article shall be disclosed to each of the Parties and submitted for their comments.

Article 265

Rules of interpretation

The arbitration panel shall interpret the provisions referred to in Article 245 of this Agreement, in accordance with customary rules of interpretation of public international law, including those codified in the Vienna Convention on the Law of Treaties of 1969. The panel shall also take into account relevant interpretations established in reports of panels and the Appellate Body adopted by the WTO Dispute Settlement Body (DSB). The rulings of the arbitration panel cannot add to or diminish the rights and obligations of the Parties provided under this Agreement.

Article 266

Decisions and rulings of the arbitration panel

1.  The arbitration panel shall make every effort to take any decision by consensus. Where, nevertheless, a decision cannot be arrived at by consensus, the matter at issue shall be decided by majority vote. The deliberations of the panel shall be confidential and dissenting opinions shall not be issued.

2.  The rulings of the arbitration panel shall be unconditionally accepted by the Parties. They shall not create any rights or obligations for natural or legal persons. The rulings shall set out the findings of fact, the applicability of the relevant provisions referred to in Article 245 of this Agreement and the basic rationale behind any findings and conclusions that they make. The Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, shall make the rulings of the arbitration panel publicly available in their entirety within ten days of their notification, unless it decides not to do so in order to ensure the confidentiality of information that is designated as confidential by the Party that provided it, on the basis of its legislation.

Article 267

Referrals to the Court of Justice of the European Union

1.  The procedures set out in this Article shall apply to disputes concerning the interpretation and application of a provision of this Agreement which imposes upon a Party an obligation defined by reference to a provision of Union law.

2.  Where a dispute raises a question of interpretation of a provision of Union law referred to in paragraph 1, the arbitration panel shall not decide the question, but request the Court of Justice of the European Union to give a ruling on the question. In such cases, the deadlines applying to the rulings of the arbitration panel shall be suspended until the Court of Justice of the European Union has given its ruling. The ruling of the Court of Justice of the European Union shall be binding on the arbitration panel.

Section 4

General provisions

Article 268

Lists of arbitrators

1.  The Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, shall, no later than six months after the entry into force of this Agreement, establish a list of at least 15 individuals who are willing and able to serve as arbitrators. The list shall be composed of three sub-lists: one sub-list for each Party and one sub-list of individuals that are not nationals of either Party and who may serve as chairperson to the arbitration panel. Each sub-list shall include at least five individuals. The Association Committee in Trade configuration shall ensure that the list is always maintained at that level.

2.  Arbitrators shall have specialised knowledge and experience of law and international trade. They shall be independent, serve in their individual capacities and not take instructions from any organisation or government, or be affiliated with the government of any of the Parties, and shall comply with the Code of Conduct set out in Annex XXI to this Agreement.

3.  The Association Committee in Trade configuration may establish additional lists of 12 individuals with knowledge and experience in specific sectors covered by this Agreement. Subject to the agreement of the Parties, such additional lists shall be used to compose the arbitration panel in accordance with the procedure set out in Article 249 of this Agreement.

Article 269

Relation with WTO obligations

1.  Recourse to the dispute settlement provisions of this Chapter shall be without prejudice to any action in the WTO framework, including dispute settlement proceedings.

2.  However, where a Party has, with regard to a particular measure, initiated a dispute settlement proceeding, either under this Chapter or under the WTO Agreement, it may not institute a dispute settlement proceeding regarding the same measure in the other forum until the first proceeding has been concluded. In addition, a Party shall not seek redress of an obligation which is identical under this Agreement and under the WTO Agreement in the two fora. In such case, once a dispute settlement proceeding has been initiated, the Parties shall use the selected forum to the exclusion of the other, unless the forum selected fails for procedural or jurisdictional reasons to make findings on the claim seeking redress of that obligation.

3.  For the purposes of paragraph 2 of this Article:

4.  Nothing in this Agreement shall preclude a Party from implementing the suspension of obligations authorised by the DSB. The WTO Agreement shall not be invoked to preclude a Party from suspending obligations under this Chapter.

Article 270

Time-limits

1.  All time-limits laid down in this Chapter, including the time-limits for an arbitration panel to notify its ruling, shall be counted in calendar days from the day following the act or fact to which they refer, unless otherwise specified.

2.  Any time-limit referred to in this Chapter may be modified by mutual agreement of the Parties to the dispute. The arbitration panel may at any time propose to the Parties to modify any time-limit referred to in this Chapter, stating the reasons for that proposal.

CHAPTER 15

General provisions on approximation under title iv

Article 271

Progress in approximation in trade-related areas

1.  For the purposes of facilitating the assessment of the approximation, referred to in Article 419 of this Agreement, of Georgian law to Union law in the trade-related areas of Title IV (Trade and Trade-related Matters) of this Agreement, the Parties shall regularly, and at least once a year, discuss the progress in approximation according to the agreed timeframes provided for in Chapters 3, 4, 5, 6 and 8 of Title IV (Trade and Trade-related Matters) of this Agreement in the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, or one of its Sub-Committees established under this Agreement.

2.  Upon request by the Union, and for the purposes of such discussion, Georgia shall submit to the Association Committee in Trade configuration or one of its Sub-Committees, as appropriate, information in writing on progress in approximation and on the effective implementation and enforcement of approximated domestic law, in relation to the relevant Chapters of Title IV (Trade and Trade-related Matters) of this Agreement.

3.  Georgia shall inform the Union when it considers that it has completed the approximation provided for in any of the Chapters referred to in paragraph 1.

Article 272

Repeal of inconsistent domestic law

As part of the approximation, Georgia shall repeal provisions of its domestic law or remove administrative practices which are inconsistent with Union law that is the object of approximation provisions under Title IV (Trade and Trade-related Matters) of this Agreement or with its domestic law approximated to the Union law accordingly.

Article 273

Assessment of approximation in trade-related areas

1.  The assessment of approximation by the Union referred to in Title IV (Trade and Trade-related Matters) of this Agreement shall start after Georgia has informed the Union pursuant to Article 271(3) of this Agreement, unless otherwise provided for in Chapters 4 and 8 of Title IV (Trade and Trade-related Matters) of this Agreement.

2.  The Union shall assess whether the law of Georgia has been approximated to Union law and whether it is implemented and enforced effectively. Georgia shall provide the Union with all necessary information to enable such assessment, in a language to be mutually agreed.

3.  The assessment by the Union pursuant to paragraph 2 shall take into account the existence and operation of relevant infrastructure, bodies and procedures in Georgia necessary for the effective implementation and enforcement of the law of Georgia.

4.  The assessment by the Union pursuant to paragraph 2 shall take account of the existence of any provisions of domestic law or administrative practices that are inconsistent with Union law that is the object of approximation provisions under Title IV (Trade and Trade-related Matters) of this Agreement or with the domestic law approximated to the Union law accordingly.

5.  The Union shall inform Georgia within a timeframe to be determined in accordance with Article 276(1) of this Agreement about the results of its assessment, unless otherwise provided. The Parties may discuss the assessment in the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, or its relevant Sub-Committees in accordance with Article 419(4) of this Agreement, unless otherwise provided.

Article 274

Developments relevant to approximation

1.  Georgia shall ensure the effective implementation of the domestic law approximated under Title IV (Trade and Trade-related Matters) of this Agreement and undertake any action necessary to reflect the developments in Union law in its domestic law, in accordance with Article 418 of this Agreement.

2.  The Union shall inform Georgia about any final Commission proposals to adopt or amend Union law relevant to approximation obligations incumbent on Georgia under Title IV (Trade and Trade-related Matters) of this Agreement.

3.  Georgia shall inform the Union of actions, including legislative proposals and administrative practices, which may affect the fulfilment of its approximation obligations under Title IV (Trade and Trade-related Matters) of this Agreement.

4.  Upon request, the Parties shall discuss the impact of any proposals or actions referred to under paragraphs 2 and 3 on the law of Georgia or on the compliance with the obligations under Title IV (Trade and Trade-related Matters) of this Agreement.

5.  If, after an assessment has been made under Article 273 of this Agreement, Georgia modifies its domestic law to take account of changes on approximation in Chapters 3, 4, 5, 6 and 8 of Title IV (Trade and Trade-related Matters) of this Agreement, a new assessment by the Union shall be conducted pursuant to Article 273 of this Agreement. If Georgia takes any other action that could have an effect on the implementation and enforcement of the approximated domestic law, a new assessment by the Union may be conducted pursuant to Article 273 of this Agreement.

6.  If the circumstances so require, particular benefits accorded by the Union based on an assessment that the law of Georgia had been approximated to Union law and was implemented and enforced effectively may be temporarily suspended, if Georgia does not approximate its domestic law to take account of changes to Title IV (Trade and Trade-related Matters) of this Agreement concerning approximation, if the assessment referred to in paragraph 5 of this Article shows that the law of Georgia is no longer approximated to the Union law, or if the Association Council fails to take a decision to update Title IV (Trade and Trade-related Matters) of this Agreement in line with developments in Union law.

7.  If the Union intends to implement any such suspension, it shall promptly notify Georgia. Georgia may refer the matter to the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, within three months of the notification, providing a statement of reasons in writing. The Association Committee in Trade configuration shall discuss the matter within three months from the referral. If the matter is not referred to the Association Committee in Trade configuration, or if it cannot be resolved by this Committee within three months from the referral, the Union may implement the suspension of benefits. The suspension shall be promptly lifted if the Association Committee in Trade configuration subsequently resolves the matter.

Article 275

Exchange of information

The exchange of information in relation to approximation under Title IV (Trade and Trade-related Matters) of this Agreement shall take place through the contact points established in Article 222(1) of this Agreement.

Article 276

General provision

1.  The Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, shall adopt procedures to facilitate the assessment of the approximation and to ensure the effective exchange of information pertaining to approximation, including the timeframes for assessment and the form, content and language of the exchanged information.

2.  Any reference to a specific Union act in Title IV (Trade and Trade-related Matters) of this Agreement covers amendments, supplements and replacement measures published in the Official Journal of the European Union before 29 November 2013.

3.  The provisions of Chapters 3, 4, 5, 6 and 8 of Title IV (Trade and Trade-related Matters) of this Agreement shall prevail over the provisions set out in this Chapter to the extent that there is a conflict.

4.  Claims of violation of the provisions of this Chapter shall not be pursued under Chapter 14 (Dispute Settlement) of Title IV (Trade and Trade-related Matters) of this Agreement.

TITLE V

ECONOMIC COOPERATION

CHAPTER 1

Economic dialogue

Article 277

1.  The EU and Georgia shall facilitate the process of economic reform by improving the understanding of the fundamentals of their respective economies and the formulation and implementation of economic policies.

2.  Georgia shall strive to establish a functioning market economy and to gradually approximate its economic and financial regulations to those of the EU, while ensuring sound macroeconomic policies.

Article 278

To that end, the Parties agree to conduct a regular economic dialogue aimed at:

CHAPTER 2

Management of public finances and financial control

Article 279

The Parties shall cooperate in the area of public internal financial control (PIFC) and external audit with the following objectives:

CHAPTER 3

Taxation

Article 280

The Parties shall cooperate to enhance good governance in the tax area, with a view to the further improvement of economic relations, trade, investment and fair competition.

Article 281

With reference to Article 280 of this Agreement, the Parties recognise and commit themselves to implement the principles of good governance in the tax area, i.e. the principles of transparency, exchange of information and fair tax competition, as subscribed to by Member States at EU level. To that effect, without prejudice to EU and Member States competences, the Parties will improve international cooperation in the tax area, facilitate the collection of legitimate tax revenues, and develop measures for the effective implementation of the above mentioned principles.

Article 282

The Parties shall also enhance and strengthen their cooperation aimed at the development of the Georgia's tax system and administration, including the enhancement of collection and control capacity, ensure effective tax collection and reinforce the fight against tax fraud and tax avoidance. The Parties shall strive to enhance cooperation and sharing of experiences in combating tax fraud, in particular carousel fraud.

Article 283

The Parties shall develop their cooperation and harmonise policies in counteracting and fighting fraud and smuggling of excisable products. This cooperation will include, inter alia, the gradual approximation of excise rates on tobacco products, as far as possible, taking into account the constraints of the regional context, and in line with the World Health Organisation Framework Convention on Tobacco Control. To that end, the Parties will look to strengthen their cooperation within the regional context.

Article 284

A regular dialogue will take place on the issues covered by this Chapter.

Article 285

Georgia will carry out approximation of its legislation to the EU acts and international instruments referred to in Annex XXII to this Agreement in accordance with the provisions of that Annex.

CHAPTER 4

Statistics

Article 286

The Parties shall develop and strengthen their cooperation on statistical issues, thereby contributing to the long-term objective of providing timely, internationally comparable and reliable statistical data. It is expected that a sustainable, efficient and professionally independent national statistical system shall produce information relevant for citizens, businesses and decision-makers in Georgia and in the EU, enabling them to take informed decisions on this basis. The national statistical system should respect the UN Fundamental Principles of Official Statistics, taking into account the EU acquis in statistics, including the European Statistics Code of Practice, in order to align the national statistical system with the European norms and standards.

Article 287

Cooperation shall aim at:

Article 288

The Parties shall cooperate within the framework of the European Statistical System in which Eurostat is the European statistical authority. The cooperation shall include a focus on the areas of:

Article 289

The Parties shall, inter alia, exchange information and expertise and shall develop their cooperation, taking into account the already accumulated experience in the reform of the statistical system launched within the framework of various assistance programmes. Efforts shall be directed towards further alignment with the EU acquis in statistics, on the basis of the national strategy for the development of the Georgian statistical system, and taking into account the development of the European Statistical System. The emphasis in the statistical data production process shall be the further development of sample surveys and use of administrative records, while taking into account the need to reduce the response burden. The data shall be relevant for the designing and monitoring of policies in key areas of social and economic life.

Article 290

A regular dialogue shall take place on the issues covered by this Chapter. To the extent possible, the activities undertaken within the European Statistical System, including training, should be open for Georgian participation.

Article 291

Gradual approximation of Georgian legislation wherever relevant and applicable to the EU acquis in statistics shall be carried out in accordance with the annually updated Statistical Requirements Compendium which is considered by the Parties as annexed to this Agreement (Annex XXIII).

TITLE VI

OTHER COOPERATION POLICIES

CHAPTER 1

Transport

Article 292

The Parties shall:

Article 293

This cooperation shall cover, inter alia the following areas:

Article 294

1.  Cooperation shall also aim at improving the movement of passengers and goods, increasing fluidity of transport flows between Georgia, the EU and third countries in the region, by removing administrative, technical and other obstacles, improving transport networks and upgrading the infrastructure in particular on the main networks connecting the Parties. This cooperation shall include actions to facilitate border-crossings.

2.  Cooperation shall include information exchange and joint activities:

Article 295

A regular dialogue will take place on the issues covered by this Chapter.

Article 296

Georgia shall carry out approximation of its legislation to the EU acts and international instruments referred to in Annexes XXIV and XV-D to this Agreement in accordance with the provisions of those Annexes.

CHAPTER 2

Energy cooperation

Article 297

The cooperation should be based on the principles of partnership, mutual interest, transparency and predictability and shall aim at market integration and regulatory convergence in the energy sector, taking into account the need to ensure access to secure, environmentally friendly and affordable energy.

Article 298

The cooperation should cover, inter alia the following areas:

Article 299

A regular dialogue will take place on the issues covered by this Chapter.

Article 300

Georgia will carry out approximation of its legislation to the EU acts and international instruments referred to in the Annex XXV to this Agreement in accordance with the provisions of that Annex.

CHAPTER 3

Environment

Article 301

The Parties shall develop and strengthen their cooperation on environmental issues, thereby contributing to the long-term objective of sustainable development and greening the economy. It is expected that enhanced environment protection will bring benefits to citizens and businesses in Georgia and in the EU, including through improved public health, preserved natural resources, increased economic and environmental efficiency, as well as use of modern, cleaner technologies contributing to more sustainable production patterns. Cooperation shall be conducted considering the interests of the Parties on the basis of equality and mutual benefit, as well as taking into account the interdependence existing between the Parties in the field of environment protection, and multilateral agreements in the field.

Article 302

1.  Cooperation shall aim at preserving, protecting, improving and rehabilitating the quality of the environment, protecting human health, sustainable utilisation of natural resources and promoting measures at international level to deal with regional or global environmental problems, including in the areas of:

2.  Cooperation shall also aim at integrating environment into policy areas other than environment policy.

Article 303

The Parties shall, inter alia, exchange information and expertise; cooperate at bilateral, regional, including through the existing structures of cooperation in South Caucasus, and international levels, especially with regard to multilateral environment agreements ratified by the Parties, and cooperate in the framework of relevant agencies, as appropriate.

Article 304

1.  The cooperation shall cover, inter alia the following objective:

2.  The NEAP will be periodically updated and adopted in accordance with Georgian legislation.

Article 305

A regular dialogue will take place on the issues covered by this Chapter.

Article 306

Georgia will carry out approximation of its legislation to the EU acts and international instruments referred to in Annex XXVI to this Agreement in accordance with the provisions of that Annex.

CHAPTER 4

Climate action

Article 307

The Parties shall develop and strengthen their cooperation to combat climate change. Cooperation shall be conducted considering the interests of the Parties on the basis of equality and mutual benefit and taking into account the interdependence existing between bilateral and multilateral commitments in this area.

Article 308

Cooperation shall aim at mitigating and adapting to climate change, as well as promoting measures at international level, including in the areas of:

Article 309

The Parties shall, inter alia, exchange information and expertise; implement joint research activities and exchange of information on cleaner technologies; implement joint activities at regional and international level, including with regard to multilateral environment agreements ratified by the Parties and joint activities in the framework of relevant agencies as appropriate. The Parties shall pay special attention to transboundary issues and regional cooperation.

Article 310

Based on mutual interests, the cooperation shall cover, inter alia, the development and implementation of:

Article 311

A regular dialogue will take place on the issues covered by this Chapter.

Article 312

Georgia will carry out approximation of its legislation to the EU acts and international instruments referred to in Annex XXVII to this Agreement in accordance with the provisions of that Annex.

CHAPTER 5

Industrial and enterprise policy and mining

Article 313

The Parties shall develop and strengthen their cooperation on industrial and enterprise policy, thereby improving the business environment for all economic operators, but with particular emphasis on small and medium-sized enterprises (SMEs) as they are defined in the EU and Georgian legislation respectively. Enhanced cooperation should improve the administrative and regulatory framework for both EU and Georgian businesses operating in the EU and Georgia, and should be based on the EU's SME and industrial policies, taking into account internationally recognised principles and practices in this field.

Article 314

To these ends, the Parties shall cooperate in order to:

Article 315

A regular dialogue will take place on the issues covered by this Chapter. This will also involve representatives of EU and Georgian businesses.

CHAPTER 6

Company law, accounting and auditing and corporate governance

Article 316

Recognising the importance of an effective set of rules and practices in the areas of company law and corporate governance, as well as in accounting and auditing, for creating a fully-functioning market economy and for fostering trade, the Parties agree to cooperate:

Article 317

The Parties will aim at sharing information and expertise on both existing systems and relevant new developments in these areas. In addition, the Parties will seek to ensure effective information exchange between business registers of EU Member States and the national register of companies of Georgia.

Article 318

A regular dialogue will take place on the issues covered by this Chapter.

Article 319

Georgia will carry out approximation of its legislation to the EU acts and international instruments referred to in Annex XXVIII to this Agreement in accordance with the provisions of that Annex.

CHAPTER 7

Financial services

Article 320

Recognising the relevance of an effective set of rules and practices in the areas of financial services to establish a fully-functioning market economy and in order to foster trade exchanges among both Parties, the Parties agree to cooperate in the area of financial services in line with the following objectives:

Article 321

1.  The Parties shall encourage cooperation between relevant regulatory and supervisory authorities, including information exchange, sharing of expertise on financial markets and other such measures.

2.  Special attention shall be paid to the development of administrative capacity of such authorities, including through personnel exchange and joint training.

Article 322

A regular dialogue will take place on the issues covered by this Chapter.

Article 323

Georgia will carry out approximation of its legislation to the EU acts and international instruments referred to in Annex XV-A to this Agreement in accordance with the provisions of that Annex.

CHAPTER 8

Cooperation in the field of information society

Article 324

The Parties shall promote cooperation on the development of the Information Society to benefit citizens and businesses through the widespread availability of information and communication technologies (ICT) and through better quality of services at affordable prices. This cooperation should aim at facilitating access to electronic communications markets, encourage competition and investment in the sector.

Article 325

Cooperation will cover, inter alia, the following subjects:

Article 326

The Parties shall promote cooperation between EU regulators and the national regulatory ►C1  authorities of Georgia in the field of electronic communications. ◄

Article 327

Georgia will carry out approximation of its legislation to the EU acts and international instruments referred to in Annex XV-B to this Agreement in accordance with the provisions of that Annex.

CHAPTER 9

Tourism

Article 328

The Parties shall cooperate in the field of tourism, with the aim of strengthening the development of a competitive and sustainable tourism industry as a generator of economic growth and empowerment, employment and international exchange.

Article 329

Cooperation at bilateral and European level shall be based on the following principles:

Article 330

The cooperation shall focus on the following topics:

Article 331

A regular dialogue will take place on the issues covered by this Chapter.

CHAPTER 10

Agriculture and rural development

Article 332

The Parties shall cooperate to promote agricultural and rural development, in particular through progressive convergence of policies and legislation.

Article 333

Cooperation between the Parties in the field of agriculture and rural development shall cover, inter alia, the following areas:

Article 334

A regular dialogue will take place on the issues covered by this Chapter.

CHAPTER 11

Fisheries and maritime governance

Section 1

Fisheries Policy

Article 335

1.  The Parties shall cooperate on the following mutually beneficial areas of common interest in the fisheries sector, including conservation and management of living aquatic resources, inspection and control, data collection, and the fight against illegal, unreported and unregulated (IUU) fishing as defined in the FAO International Plan of Action (IPOA) of 2001 to prevent, deter and eliminate illegal, unreported and unregulated (IUU) fishing.

2.  That cooperation will respect the international obligations of the Parties concerning management and conservation of living aquatic resources.

Article 336

The Parties shall take joint actions, exchange information and provide support to each other in order to promote:

Article 337

With reference to Article 336 of this Agreement, and taking into account the best scientific advice, the Parties shall strengthen the cooperation and coordination of their activities in the field of management and conservation of living aquatic resources in the Black Sea. Both Parties will promote regional cooperation in the Black Sea and relations with relevant Regional Fisheries Management Organisations, as appropriate.

Article 338

The Parties will support initiatives, such as mutual exchange of experience and providing support, in order to ensure the implementation of a policy ensuring sustainable fisheries, based on the EU acquis and priority areas of interest for the Parties in this field, including:

Section 2

Maritime Policy

Article 339

Taking into account their cooperation in the spheres of fisheries, sea-related transport, environment and other policies, and in accordance with the relevant international agreements on the law of the sea based on United Nations Convention on the Law of the Sea, the Parties shall also develop cooperation on an integrated maritime policy, in particular:

Article 340

This cooperation shall include:

Article 341

A regular dialogue between the Parties will take place on the issues covered by this Chapter.

CHAPTER 12

Cooperation in research, technological development and demonstration

Article 342

The Parties shall promote cooperation in all areas of civil scientific research and technological development and demonstration (RTD) on the basis of mutual benefit and subject to appropriate and effective levels of protection of intellectual property rights.

Article 343

Cooperation in RTD shall cover:

Article 344

In carrying out such cooperation activities, synergies should be sought with the other activities carried out within the framework of financial cooperation between the EU and Georgia as stipulated in Title VII (Financial Assistance, and Anti-Fraud and Control Provisions) of this Agreement.

CHAPTER 13

Consumer policy

Article 345

The Parties shall cooperate in order to ensure a high level of consumer protection and to achieve compatibility between their systems of consumer protection.

Article 346

In order to achieve these objectives the cooperation may comprise, when appropriate:

Article 347

Georgia will carry out approximation of its legislation to the EU acts and international instruments referred to in Annex XXIX to this Agreement in accordance with the provisions of that Annex.

CHAPTER 14

Employment, social policy and equal opportunities

Article 348

The Parties shall strengthen their dialogue and cooperation on promoting the Decent Work Agenda, employment policy, health and safety at work, social dialogue, social protection, social inclusion, gender equality and anti-discrimination, and corporate social responsibility and thereby contribute to the promotion of more and better jobs, poverty reduction, enhanced social cohesion, sustainable development and improved quality of life.

Article 349

Cooperation, based on exchange of information and best practices, may cover a selected number of issues to be identified among the following areas:

Article 350

The Parties shall encourage the involvement of all relevant stakeholders, including civil society organisations and in particular social partners, in policy development and reforms and in the cooperation between the Parties as provided for in the relevant part of Title VIII (Institutional, General and Final Provisions) of this Agreement.

Article 351

The Parties shall aim at enhancing cooperation on employment and social policy matters in all relevant regional, multilateral and international fora and organisations.

Article 352

The Parties shall promote corporate social responsibility and accountability and encourage responsible business practices, such as those promoted by a number of international corporate social responsibility guidelines and especially the OECD Guidelines for Multinational Enterprises.

Article 353

A regular dialogue will take place on the issues covered by this Chapter.

Article 354

Georgia will carry out approximation of its legislation to the EU acts and international instruments referred to in Annex XXX to this Agreement in accordance with the provisions of that Annex.

CHAPTER 15

Public health

Article 355

The Parties agree to develop their cooperation in the field of public health, with a view to raising the level of public health safety and protection of human health as an essential component for sustainable development and economic growth.

Article 356

The cooperation shall cover the following areas, in particular:

Article 357

Georgia will carry out approximation of its legislation to the EU acts and international instruments referred to in Annex XXXI to this Agreement in accordance with the provisions of that Annex.

CHAPTER 16

Education, training and youth

Article 358

The Parties shall cooperate in the field of education and training to intensify cooperation and dialogue, including dialogue on policy issues, seeking approximation to relevant EU policies and practices. The Parties shall cooperate to promote lifelong learning, encourage cooperation and transparency at all levels of education and training, with a special focus on higher education.

Article 359

This cooperation in the field of education and training shall focus, inter alia, on the following areas:

Article 360

The Parties agree to cooperate in the field of youth to:

Article 361

Georgia will conduct and develop policy consistent with the framework of EU policies and practices with reference to documents in Annex XXXII to this Agreement in accordance with the provisions of that Annex.

CHAPTER 17

Cooperation in the cultural field

Article 362

The Parties will promote cultural cooperation taking duly into account the principles enshrined in the United Nations Educational, Scientific and Cultural Organisation (UNESCO) Convention on the Protection and Promotion of the Diversity of Cultural Expressions of 2005. The Parties will seek a regular policy dialogue in areas of mutual interest, including the development of cultural industries in the EU and Georgia. Cooperation between the Parties will foster intercultural dialogue, including through the participation of the culture sector and civil society from the EU and Georgia.

Article 363

The Parties shall concentrate their cooperation in a number of fields:

CHAPTER 18

Cooperation in the audiovisual and media fields

Article 364

The Parties will promote cooperation in the audio-visual field. Cooperation shall strengthen the audio-visual industries in the EU and Georgia in particular through training of professionals, exchange of information and encouragement of co-productions in the fields of cinema and television.

Article 365

1.  The Parties shall develop a regular dialogue in the field of audio-visual and media policies and cooperate to reinforce independence and professionalism of the media as well as links with EU media in compliance with relevant European standards, including standards of the Council of Europe and the UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expressions of 2005.

2.  Cooperation could include, inter alia, the issue of the training of journalists and other media professionals.

Article 366

The Parties shall concentrate their cooperation on a number of fields:

Article 367

Georgia will carry out approximation of its legislation to the EU acts and international instruments referred to in Annex XXXIII to this Agreement in accordance with the provisions of that Annex.

CHAPTER 19

Cooperation in the field of sport and physical activity

Article 368

The Parties shall promote cooperation in the field of sport and physical activity through the exchange of information and good practices in order to promote a healthy lifestyle and the social and educational values of sport, mobility in sport and in order to fight global threats to sport such as doping, racism and violence.

CHAPTER 20

Civil society cooperation

Article 369

The Parties shall enhance a dialogue on civil society cooperation, with the following objectives:

Article 370

The Parties shall promote dialogue and cooperation between civil society stakeholders from both sides as an integral part of the relations between the EU and Georgia. The aims of such a dialogue and such cooperation are:

Article 371

A regular dialogue will take place between the Parties on the issues covered by this Chapter.

CHAPTER 21

Regional development, cross-border and regional level cooperation

Article 372

1.  The Parties shall promote mutual understanding and bilateral cooperation in the field of regional development policy, including methods of formulation and implementation of regional policies, multi-level governance and partnership, with special emphasis on the development of disadvantaged areas and territorial cooperation, with the objective of establishing channels of communication and enhancing exchange of information and experience between national and local authorities, socio-economic actors and civil society.

2.  The Parties shall in particular cooperate with a view to aligning the Georgian practices with the following principles:

Article 373

1.  The Parties shall support and strengthen the involvement of local level authorities in regional policy cooperation including cross-border cooperation and the related management structures, enhance cooperation through the establishment of an enabling reciprocal legislative framework, sustain and develop capacity building measures and promote the strengthening of cross-border and regional economic and business networks.

2.  The Parties will cooperate to consolidate the institutional and operational capacities of Georgian institutions in the fields of regional development and land use planning by, inter alia:

Article 374

1.  The Parties shall strengthen and encourage development of cross-border cooperation in other areas covered by this Agreement such as, inter alia, transport, energy, communication networks, culture, education, tourism, and health.

2.  The Parties shall intensify cooperation between their regions in the form of transnational and inter-regional programmes, encouraging the participation of Georgian regions in European regional structures and organizations and promoting their economic and institutional development by implementing projects of common interest.

3.  These activities will take place in the context of:

Article 375

A regular dialogue will take place on the issues covered by this Chapter.

CHAPTER 22

Civil protection

Article 376

The Parties shall develop and strengthen their cooperation on natural and man-made disasters. Cooperation shall be conducted considering the interests of the Parties on the basis of equality and mutual benefit, as well as taking into account the interdependence existing between the Parties and multilateral activities in the field.

Article 377

Cooperation shall aim at improving the prevention of, preparation for and response to natural and man-made disasters.

Article 378

The Parties shall, inter alia, exchange information and expertise and implement joint activities on bilateral basis and/or within the framework of multilateral programmes. Cooperation can take place, inter alia, through the implementation of specific agreements and/or administrative arrangements in this field concluded between the Parties.

Article 379

The cooperation may cover the following objectives:

CHAPTER 23

Participation in european union agencies and programmes

Article 380

Georgia shall be allowed to participate in all agencies of the Union open to the participation of Georgia in accordance with the relevant provisions establishing those agencies. Georgia shall enter into separate agreements with the EU to enable its participation in each such agency including the amount of its financial contribution.

Article 381

Georgia shall be allowed to participate in all current and future programmes of the Union opened to the participation of Georgia in accordance with the relevant provisions adopting those programmes. Georgia's participation in the programmes of the Union shall be in accordance with the provisions laid down in Protocol III to this Agreement on a Framework Agreement between the European Union and Georgia on the general principles for the participation of Georgia in Union programmes.

Article 382

The Parties will conduct a regular dialogue on the participation of Georgia in EU programmes and agencies. In particular, the EU shall inform Georgia in the case of establishment of new EU agencies and new programmes of the Union, as well as regarding changes in the terms of participation in the programmes of the Union and agencies, mentioned in Articles 380 and 381 of this Agreement.

TITLE VII

FINANCIAL ASSISTANCE, AND ANTI-FRAUD AND CONTROL PROVISIONS

CHAPTER 1

Financial assistance

Article 383

Georgia shall benefit from financial assistance through the relevant EU funding mechanisms and instruments. Georgia may also benefit from cooperation with the European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD) and other international financial institutions. The financial assistance will contribute to achieving the objectives of this Agreement and will be provided in accordance with this Chapter.

Article 384

The main principles of financial assistance shall be set out in the relevant EU financial instruments' regulations.

Article 385

The priority areas of the EU financial assistance agreed by the Parties shall be laid down in annual action programmes based, whenever applicable on multi-annual frameworks which reflect agreed policy priorities. The amounts of assistance established in those programmes shall take into account Georgia's needs, sector capacities and progress with reforms, in particular in areas covered by this Agreement.

Article 386

In order to ensure optimum use of the resources available, the Parties shall endeavour to ensure that EU assistance is implemented in close cooperation and coordination with other donor countries, donor organisations and international financial institutions, and in line with international principles of aid effectiveness.

Article 387

The fundamental legal, administrative and technical basis of financial assistance is established within the framework of relevant agreements between the Parties.

Article 388

The Association Council shall be informed of the progress and implementation of financial assistance and its impact upon pursuing the objectives of this Agreement. To that end, the relevant bodies of the Parties shall provide relevant monitoring and evaluation information on a mutual and continuous basis.

Article 389

The Parties shall implement assistance in accordance with the principles of sound financial management and cooperate in the protection of the financial interests of the EU and of Georgia in accordance with Chapter 2 (Anti-Fraud and Control Provisions) of this Title.

CHAPTER 2

Anti-fraud and control provisions

Article 390

Definitions

For the purposes of this Chapter, the definitions set out in Protocol IV to this Agreement shall apply.

Article 391

Scope

This Chapter shall be applicable to any further agreement or financing instrument to be concluded between the Parties, and any other EU financing instrument to which Georgia may be associated, without prejudice to any other additional clauses covering audits, on-the-spot checks, inspections, controls, and anti-fraud measures, including those conducted by the European Court of Auditors and the European Anti-Fraud Office (OLAF).

Article 392

Measures to prevent and fight fraud, corruption and any other illegal activities

The Parties shall take effective measures to prevent and fight fraud, corruption and any other illegal activities in connection with the implementation of EU funds, inter alia by means of mutual administrative assistance and mutual legal assistance in the fields covered by this Agreement.

Article 393

Exchange of information and further cooperation at operational level

1.  For the purposes of proper implementation of this Chapter, the competent Georgian and EU authorities shall regularly exchange information and, at the request of one of the Parties, shall conduct consultations.

2.  OLAF may agree with competent Georgian counterparts in accordance with Georgian legislation on further cooperation in the field of anti-fraud, including operational arrangements with the Georgian authorities.

3.  For the transfer and processing of personal data, Article 14 of Title III (Freedom, Security and Justice) of this Agreement shall apply.

Article 394

Prevention of fraud, corruption and irregularities

1.  The EU and Georgian authorities shall check regularly that the operations financed with EU funds have been properly implemented. They shall take any appropriate measures to prevent and remedy irregularities and fraud.

2.  The EU and Georgian authorities shall take any appropriate measures to prevent and remedy any active or passive corruption practices and exclude conflict of interest at any stage of the procedures related to the implementation of EU funds.

3.  The Georgian authorities shall inform the European Commission of any prevention measures taken.

4.  The European Commission shall be entitled to obtain evidence in accordance with Article 56 of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities.

5.  In particular, it shall also be entitled to obtain evidence that procedures on procurement and grants satisfy the principles of transparency, equal treatment and non-discrimination, prevent any conflict of interest, offer guarantees equivalent to internationally accepted standards and ensure compliance with the provisions of sound financial management.

6.  In accordance with their own procedures, the Parties will provide each other with any information related to the implementation of EU funds and shall inform each other without delay of any substantial change in their procedures or systems.

Article 395

Legal proceedings, investigation and prosecution

The Georgian authorities shall bring legal proceedings, including, if appropriate, investigation and prosecution of suspected and actual cases of fraud, corruption or any other irregularity, including conflict of interest, following national or EU controls. Where appropriate OLAF may assist the competent Georgian authorities in this task.

Article 396

Communication of fraud, corruption and irregularities

1.  The Georgian authorities shall transmit to the European Commission without delay any information which has come to their notice of actual cases of fraud or corruption and shall inform the European Commission without delay of any other irregularity, including conflict of interest, in connection with the implementation of EU funds. In case of suspicion of fraud and corruption, OLAF and the European Commission shall also be informed.

2.  The Georgian authorities shall also report on all measures taken in connection with facts communicated under this Article. Should there be no fraud, corruption, or any other irregularity to report, the Georgian authorities shall inform the European Commission following the end of each calendar year.

Article 397

Audits

1.  The European Commission and the European Court of Auditors are entitled to examine whether all expenditure related to the implementation of EU funds has been incurred in a lawful and regular manner and whether the financial management has been sound.

2.  Audits shall be carried out on the basis both of commitments undertaken and payments made. They shall be based on records and, if necessary, performed on-the-spot on the premises of any entity which manages or takes part in the implementation of EU funds. Those audits may be carried out before the closure of the accounts for the financial year in question and for a period of five years from the date of payment of the balance.

3.  European Commission inspectors or other persons mandated by the European Commission or the European Court of Auditors may conduct documentary or on-the-spot checks and audits on the premises of any entity which manages or takes part in the implementation of EU funds and of their subcontractors in Georgia.

4.  The European Commission's inspectors or other persons mandated by the European Commission or the European Court of Auditors shall have appropriate access to sites, works and documents in order to carry out such audits, including in electronic form. That right of access should be communicated to all public institutions of Georgia and shall be stated explicitly in the contracts concluded to implement the instruments referred to in this Agreement.

5.  The checks and audits described above are applicable to all contractors and subcontractors who have received EU funds. In the performance of their tasks, the European Court of Auditors and the Georgian audit bodies shall cooperate in a spirit of trust while maintaining their independence.

Article 398

On-the-spot checks

1.  Within the framework of this Agreement, OLAF shall be authorised to carry out on-the-spot checks and inspections in order to protect the EU's financial interests in accordance with the provisions of Council Regulation (EC, Euratom) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities.

2.  On-the-spot checks and inspections shall be prepared and conducted by OLAF in close cooperation with the competent Georgian authorities taking into account relevant Georgian legislation.

3.  The Georgian authorities shall be notified in good time of the object, purpose and legal basis of the checks and inspections, so that they can provide all the requisite help. To that end, officials of the competent Georgian authorities may participate in the on-the-spot checks and inspections.

4.  If the Georgian authorities concerned express their interest, the on-the-spot checks and inspections shall be carried out jointly by OLAF and them.

5.  Where an economic operator resists an on-the-spot check or inspection, the Georgian authorities, acting in accordance with national legislation, shall give OLAF such assistance, as it needs to allow it to discharge its duty in carrying out an on-the-spot check or inspection.

Article 399

Administrative measures and penalties

Without prejudice of the Georgian legislation, administrative measures and penalties may be imposed by the European Commission in accordance with Regulation (EC, Euratom) No 1605/2002 and Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities and with Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests.

Article 400

Recovery

1.  The Georgian authorities shall take any appropriate measure to implement the provisions mentioned below regarding the recovery of EU funds unduly paid to the financing governmental agency.

2.  Where the Georgian authorities are entrusted with the implementation of EU funds the European Commission is entitled to recover EU funds unduly paid, in particular through financial corrections. The European Commission shall take into account the measures taken by the Georgian authorities to prevent the loss of the EU funds concerned.

3.  The European Commission shall consult with Georgia on the matter before taking any decision on recovery. Disputes on recovery will be discussed in the Association Council.

4.  Where the European Commission implements EU funds directly or indirectly by entrusting budget implementation tasks to third parties, decisions taken by the European Commission within the scope of this Title, which impose pecuniary obligation on persons other than States, shall be enforceable in Georgia in accordance with the following principles:

5.  The enforcement order shall be issued, without any further control than verification of the authenticity of the act, by the authorities designated by the Georgian government. Enforcement shall take place in accordance with Georgian rules of procedure. The legality of the enforcement decision of the pertinent EU authorities shall be subject to control by the Court of Justice of the European Union.

6.  Judgments given by the Court of Justice of the European Union pursuant to an arbitration clause in a contract within the scope of this Chapter shall be enforceable on the same terms.

Article 401

Confidentiality

Information communicated or acquired in any form under this Chapter shall be covered by professional secrecy and protected in the same way as similar information is protected by Georgian law and by the corresponding provisions applicable to the EU institutions. Such information may not be communicated to persons other than those in the EU institutions, in the Member States or in Georgia whose functions require them to know it, nor may it be used for purposes other than to ensure effective protection of the Parties' financial interests.

Article 402

Approximation of legislation

Georgia will carry out approximation of its legislation to the EU acts and international instruments referred to in Annex XXXIV to this Agreement in accordance with the provisions of that Annex.

TITLE VIII

INSTITUTIONAL, GENERAL, AND FINAL PROVISIONS

CHAPTER 1

Institutional framework

Article 403

Political and policy dialogue between the Parties, including on issues related to sectoral cooperation, may take place at any level. Periodic high-level policy dialogue shall take place within the Association Council established in Article 404 and within the framework of regular meetings between representatives of both Parties at ministerial level by mutual agreement.

Association Council

Article 404

1.  An Association Council is hereby established. It shall supervise and monitor the application and implementation of this Agreement and periodically review the functioning of this Agreement in the light of its objectives.

2.  The Association Council shall meet at ministerial level and at regular intervals, at least once a year, and when circumstances require. The Association Council may meet in any configuration, by mutual agreement.

3.  In addition to supervising and monitoring the application and implementation of this Agreement, the Association Council shall examine any major issues arising within the framework of this Agreement, and any other bilateral or international issues of mutual interest.

Article 405

1.  The Association Council shall consist of members of the Council of the European Union and members of the European Commission, on the one hand, and of members of the Government of Georgia, on the other.

2.  The Association Council shall establish its own rules of procedure.

3.  The Association Council shall be chaired in turn by a representative of the Union and a representative of Georgia.

4.  Where appropriate, and by mutual agreement, representatives of other bodies of the Parties may take part as observers in the work of the Association Council.

Article 406

1.  For the purpose of attaining the objectives of this Agreement, the Association Council shall have the power to take decisions within the scope of this Agreement. The decisions shall be binding upon the Parties, which shall take appropriate measures, including if necessary action by bodies established under this Agreement, in line with provisions of this Agreement to implement the decisions taken. The Association Council may also make recommendations. It shall adopt its decisions and recommendations by agreement between the Parties following the completion of the respective internal procedures of the Parties, as appropriate.

2.  In line with the objective of the gradual approximation of Georgia's legislation to that of the EU laid down in this Agreement, the Association Council will be a forum for exchange of information on selected European Union and Georgia legislative acts both under preparation and in force, and on implementation, enforcement and compliance measures.

3.  In accordance with paragraph 1 of this Article, the Association Council shall have the power to update or amend the Annexes to this Agreement, without prejudice to any specific provisions under Title IV (Trade and Trade-related Matters) of this Agreement.

Association Committee

Article 407

1.  An Association Committee is hereby established. It shall assist the Association Council in the performance of its duties and functions.

2.  The Association Committee shall be composed of representatives of the Parties, in principle at senior civil servant level.

3.  The Association Committee shall be chaired in turn by a representative of the EU and a representative of Georgia.

Article 408

1.  The Association Council shall determine in its rules of procedure the duties and functioning of the Association Committee, whose responsibilities shall include the preparation of meetings of the Association Council. The Association Committee shall meet at least once a year and when the Parties agree that circumstances so require.

2.  The Association Council may delegate to the Association Committee any of its powers, including the power to take binding decisions.

3.  The Association Committee shall have the power to adopt decisions in the cases provided for in this Agreement and in areas in which the Association Council has delegated powers to it and as stipulated in Article 406(1) of this Agreement. These decisions shall be binding upon the Parties, which shall take appropriate measures to implement them. The Association Committee shall adopt its decisions by agreement between the Parties, taking into account the respective internal procedures.

4.  The Association Committee shall meet in a specific configuration to address all issues related to Title IV (Trade and Trade-related Matters) of this Agreement. The Association Committee shall meet in that configuration at least once a year.

Article 409

Special committees, sub-committees and bodies

1.  The Association Committee shall be assisted by sub-committees established under this Agreement.

2.  The Association Council may decide to set up any special committee or body in specific areas necessary for the implementation of this Agreement, and shall determine the composition, duties and functioning of such special committees or bodies. In addition, such special committees or bodies may hold discussions on any matter that they consider relevant without prejudice to any of the specific provisions of Title IV (Trade and Trade-related Matters) of this Agreement.

3.  The Association Committee may also create sub-committees, including to take stock of progress achieved in the regular dialogues referred to in Title V (Economic cooperation) and Title VI (Other Cooperation Policies) of this Agreement.

4.  The sub-committees shall have the powers to take decisions in the cases provided for in this Agreement. They shall report on their activities to the Association Committee regularly, as required.

5.  The sub-committees established under Title IV (Trade and Trade-related Matters) of this Agreement shall inform the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, of the date and agenda of their meetings sufficiently in advance of their meetings. They shall report on their activities at each regular meeting of the Association Committee in Trade configuration.

6.  The existence of any of the sub-committees shall not prevent either Party from bringing any matter directly to the Association Committee, including in its Trade configuration.

Parliamentary Association Committee

Article 410

1.  A Parliamentary Association Committee is hereby established. It shall be a forum for Members of the European Parliament and of the Parliament of Georgia to meet and exchange views. It shall meet at intervals which it shall itself determine.

2.  The Parliamentary Association Committee shall consist of Members of the European Parliament, on the one hand, and of Members of the Parliament of Georgia, on the other.

3.  The Parliamentary Association Committee shall establish its own rules of procedure.

4.  The Parliamentary Association Committee shall be chaired in turn by a representative of the European Parliament and a representative of the Georgian Parliament respectively, in accordance with the provisions to be laid down in its rules of procedure.

Article 411

1.  The Parliamentary Association Committee may request relevant information regarding the implementation of this Agreement from the Association Council, which shall then supply the Parliamentary Association Committee with the requested information.

2.  The Parliamentary Association Committee shall be informed of the decisions and recommendations of the Association Council.

3.  The Parliamentary Association Committee may make recommendations to the Association Council.

4.  The Parliamentary Association Committee may create Parliamentary Association sub-committees.

Civil Society Platform

Article 412

1.  The Parties shall also promote regular meetings of representatives of their civil societies, in order to keep them informed of, and gather their input for, the implementation of this Agreement.

2.  An EU-Georgia Civil Society Platform is hereby established. It shall be a forum to meet and exchange views for, and consist of, representatives of civil society on the side of the EU, including Members of the European Economic and Social Committee, and representatives of civil society on the side of Georgia, including representatives of the national platform of the Eastern Partnership Civil Society Forum. It shall meet at intervals which it shall itself determine.

3.  The Civil Society Platform shall establish its own rules of procedure.

4.  The Civil Society Platform shall be chaired in turn by a representative of the European Economic and Social Committee and representatives of civil society on the side of Georgia respectively, in accordance with the provisions to be laid down in its rules of procedure.

Article 413

1.  The Civil Society Platform shall be informed of the decisions and recommendations of the Association Council.

2.  The Civil Society Platform may make recommendations to the Association Council.

3.  The Association Committee and Parliamentary Association Committee shall organise regular contacts with representatives of the Civil Society Platform, in order to obtain their views on the attainment of the objectives of this Agreement.

CHAPTER 2

General and final provisions

Article 414

Access to courts and administrative organs

Within the scope of this Agreement, the Parties undertake to ensure that natural and legal persons of the other Party have access free of discrimination in relation to its own nationals to the competent courts and administrative organs of the Parties to defend their individual rights, including property rights.

Article 415

Security exceptions

Nothing in this Agreement shall prevent a Party from taking any measures:

Article 416

Non-discrimination

1.  In the fields covered by this Agreement and without prejudice to any special provisions contained therein:

2.  The provisions of paragraph 1 shall be without prejudice to the right of the Parties to apply the relevant provisions of their fiscal legislation to taxpayers who are not in identical situations as regards their place of residence.

Article 417

Gradual approximation

Georgia shall carry out gradual approximation of its legislation to EU law as referred to in the Annexes to this Agreement, based on commitments identified in this Agreement, and in accordance with the provisions of those Annexes. This provision shall be without prejudice to any specific principles and obligations on approximation under Title IV (Trade and Trade-related Matters) of this Agreement.

Article 418

Dynamic approximation

In line with the goal of gradual approximation by Georgia to EU law, the Association Council shall periodically revise and update Annexes to this Agreement, including in order to reflect the evolution of EU law and applicable standards set out in international instruments deemed relevant by the Parties, and following the completion of the respective internal procedures of the Parties, as appropriate. This provision shall be without prejudice to any specific provisions under Title IV (Trade and Trade-related Matters) of this Agreement.

Article 419

Monitoring of approximation

1.  Monitoring shall mean the continuous appraisal of progress in implementing and enforcing measures covered by this Agreement.

2.  Monitoring shall include assessments by the EU of the approximation of Georgian law to EU law as defined in this Agreement, including aspects of implementation and enforcement. These assessments may be conducted by the EU individually on its own initiative as specified in Title IV (Trade and Trade-related Matters) of this Agreement, by the EU in agreement with Georgia, or jointly by the Parties. To facilitate the assessment process, Georgia shall report to the EU on progress in approximation, where appropriate before the end of the transitional periods set out in this Agreement in relation to EU legal acts. The reporting and assessment process, including modalities and frequency of assessments, shall take into account specific modalities defined in this Agreement or decisions by the institutional bodies established by this Agreement.

3.  Monitoring may include on-the-spot missions, with the participation of EU institutions, bodies and agencies, non-governmental bodies, supervisory authorities, independent experts and others as needed.

4.  The results of monitoring activities, including the assessments of approximation set out in paragraph 2 of this Article, shall be discussed in all relevant bodies established under this Agreement. Such bodies may adopt joint recommendations, which shall be submitted to the Association Council.

5.  If the Parties agree that necessary measures covered by Title IV (Trade and Trade-related Matters) of this Agreement have been implemented and are being enforced, the Association Council, under the powers conferred to it in Articles 406 and 408 of this Agreement, shall decide on further market opening where provided for in Title IV (Trade and Trade-related Matters) of this Agreement.

6.  A joint recommendation as referred to in paragraph 4 of this Article submitted to the Association Council, or the failure to reach such a recommendation, shall not be subject to dispute settlement as defined in Title IV (Trade and Trade-related Matters) of this Agreement. A decision taken by the relevant institutional body, or the failure to take such a decision, shall not be subject to dispute settlement as defined in Title IV (Trade and Trade-related Matters) of this Agreement.

Article 420

Fulfilment of obligations

1.  The Parties shall take any general or specific measures required to fulfil their obligations under this Agreement. They shall ensure that the objectives set out in this Agreement are attained.

2.  The Parties agree to consult promptly through appropriate channels at the request of either Party, to discuss any matter concerning the interpretation, implementation or the application in good faith of this Agreement and other relevant aspects of the relations between the Parties.

3.  The Parties shall refer to the Association Council any dispute related to the interpretation, implementation or the application in good faith of this Agreement in accordance with Article 421. The Association Council may settle a dispute by means of a binding decision.

Article 421

Dispute settlement

1.  When a dispute arises between the Parties concerning the interpretation, implementation or the application in good faith of this Agreement, any Party shall submit to the other Party and the Association Council a formal request that the matter in dispute be resolved. By way of derogation, disputes concerning the interpretation, implementation or the application in good faith of Title IV (Trade and Trade-related Matters) of this Agreement shall be governed exclusively by Chapter 14 (Dispute Settlement) of that Title.

2.  The Parties shall endeavour to resolve the dispute by entering into good faith consultations within the Association Council and other relevant bodies referred to in Articles 407 and 409 of this Agreement, with the aim of reaching a mutually acceptable solution in the shortest time possible.

3.  The Parties shall provide the Association Council and other relevant bodies with all information required for a thorough examination of the situation.

4.  As long as a dispute is not resolved, it shall be discussed at every meeting of the Association Council. A dispute shall be deemed to be resolved when the Association Council has taken a binding decision to settle the matter as provided for in paragraph 3 of Article 420 of this Agreement, or when it has declared that the dispute is at an end. Consultations on a dispute can also be held at any meeting of the Association Committee or any other relevant body set up on the basis of Articles 407 and 409 of this Agreement, as agreed between the Parties or at the request of either of the Parties. Consultations may also be held in writing.

5.  All information disclosed during the consultations shall remain confidential.

Article 422

Appropriate measures in case of non-fulfilment of obligations

1.  A Party may take appropriate measures, if the matter is not resolved within three months of the date of notification of a formal request for dispute settlement in accordance with Article 421 of this Agreement and if the complaining Party continues to consider that the other Party has failed to fulfil an obligation under this Agreement. The requirement for a three month consultation period may be waived by mutual agreement of the Parties and shall not apply to exceptional cases set out in paragraph 3 of this Article.

2.  In the selection of appropriate measures, priority shall be given to those which least disturb the functioning of this Agreement. Except in cases described in paragraph 3 of this Article, such measures may not include the suspension of any rights or obligations provided for under provisions of this Agreement set out in Title IV (Trade and Trade-related Matters). The measures taken under paragraph 1 of this Article shall be notified immediately to the Association Council and shall be the subject of consultations in accordance with Article 420(2) of this Agreement, and of dispute settlement in accordance with Article 420(3) and Article 421 of this Agreement.

3.  The exceptions referred to in paragraphs 1 and 2 of this Article shall concern:

Article 423

Relation to other agreements

1.  The Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and Georgia, of the other part, signed in Luxembourg on 22 April 1996 and which entered into effect on 1 July 1999 is hereby repealed.

2.  This Agreement replaces the agreement referred to in paragraph 1. References thereto in all other agreements between the Parties shall be construed as referring to this Agreement.

3.  This Agreement replaces the Agreement between the European Union and Georgia on protection of geographical indications of agricultural products and foodstuffs, signed on 14 July 2011 in Brussels and which entered into force on 1 April 2012.

Article 424

1.  This Agreement shall not, until equivalent rights for natural and legal persons have been achieved under this Agreement, affect rights ensured to them through existing agreements which are binding upon one or more Member States, on the one hand, and Georgia on the other hand.

2.  Existing agreements relating to specific areas of cooperation falling within the scope of this Agreement shall be considered part of the overall bilateral relations as governed by this Agreement and as forming part of a common institutional framework.

Article 425

1.  The Parties may complement this Agreement by concluding specific agreements in any area falling within its scope. Such specific agreements shall be an integral part of the overall bilateral relations as governed by this Agreement and shall form part of a common institutional framework.

2.  Without prejudice to the relevant provisions of the Treaty on European Union and the Treaty on the Functioning of the European Union, neither this Agreement nor action taken hereunder shall in any way affect the powers of the Member States to undertake bilateral cooperation activities with Georgia or to conclude, where appropriate, new cooperation agreements with Georgia.

Article 426

Annexes and Protocols

The Annexes and Protocols to this Agreement shall form an integral part thereof.

Article 427

Duration

1.  This Agreement is concluded for an unlimited period.

2.  Either Party may denounce this Agreement by notifying the other Party. This Agreement shall terminate six months from the date of receipt of such notification.

Article 428

Definition of the Parties

For the purposes of this Agreement, the term ‘the Parties’ shall mean the EU or its Member States, or the EU and its Member States, in accordance with their respective powers as derived from the Treaty on European Union and the Treaty on the Functioning of the European Union and, where relevant, it shall also refer to Euratom, in accordance with its powers under the Treaty establishing the European Atomic Energy Community, of the one part, and Georgia of the other part.

Article 429

Territorial application

1.  This Agreement shall apply, of the one part, to the territories in which the Treaty on European Union, the Treaty on the Functioning of the European Union and the Treaty establishing the European Atomic Energy Community are applied and under the conditions laid down in those Treaties, and of the other part, to the territory of Georgia.

2.  The application of this Agreement, or of Title IV (Trade and Trade-related Matters) thereof, in relation to Georgia's regions of Abkhazia and Tskhinvali region/South Ossetia over which the Government of Georgia does not exercise effective control, shall commence once Georgia ensures the full implementation and enforcement of this Agreement, or of Title IV (Trade and Trade-related Matters) thereof, respectively, on its entire territory.

3.  The Association Council shall adopt a decision on when the full implementation and enforcement of this Agreement, or of Title IV (Trade and Trade-related Matters) thereof, on the entire territory of Georgia, is ensured.

4.  Should a Party consider that the full implementation and enforcement of this Agreement, or of Title IV (Trade and Trade-related Matters) thereof, respectively, is no longer ensured in the regions of Georgia referred to in paragraph 2 of this Article, that Party may request the Association Council to reconsider the continued application of this Agreement, or of Title IV (Trade and Trade-related Matters) thereof, respectively, in relation to the regions concerned. The Association Council shall examine the situation and adopt a decision on the continued application of this Agreement, or of Title IV (Trade and Trade-related Matters) thereof, respectively, within three months of the request. If the Association Council does not adopt a decision within three months of the request, the application of this Agreement, or of Title IV (Trade and Trade-related Matters) thereof, respectively, shall be suspended in relation to the regions concerned until the Association Council adopts a decision.

5.  Decisions of the Association Council under this Article on the application of Title IV (Trade and Trade-related Matters) of this Agreement shall cover the entirety of that Title and cannot only cover parts of that title.

Article 430

Depositary of this Agreement

The General Secretariat of the Council of the European Union shall be the depositary of this Agreement.

Article 431

Entry into force and provisional application

1.  The Parties shall ratify or approve this Agreement in accordance with their own procedures. The instruments of ratification or approval shall be deposited with the General Secretariat of the Council of the European Union.

2.  This Agreement shall enter into force on the first day of the second month following the date of the deposit of the last instrument of ratification or approval.

3.  Notwithstanding paragraph 2 of this Article, the Union and Georgia agree to provisionally apply this Agreement in part, as specified by the Union, as set out in paragraph 4 of this Article, and in accordance with their respective internal procedures and legislation as applicable.

4.  The provisional application shall be effective from the first day of the second month following the date of receipt by the depositary of this Agreement of the following:

5.  For the purpose of the relevant provisions of this Agreement, including the respective Annexes and Protocols hereto, any reference in such provisions to the ‘date of entry into force of this Agreement’ shall be understood to the ‘date from which this Agreement is provisionally applied’ in accordance with paragraph 3 of this Article.

6.  During the period of the provisional application, in so far as the provisions of the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and Georgia, of the other part, signed in Luxembourg on 22 April 1996 and which entered into effect on 1 July 1999, are not covered by the provisional application of this Agreement, they continue to apply.

7.  Either Party may give written notification to the depositary of this Agreement of its intention to terminate the provisional application of this Agreement. Termination of provisional application shall take effect six months after receipt of the notification by the depositary of this Agreement.

Article 432

Authentic texts

This Agreement shall be drawn up in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish, Swedish and Georgian languages, each text being equally authentic.

IN WITNESS WHEREOF, the undersigned, duly authorised, have signed this Agreement.

Съставено в Брюксел на двадесет и седми юни две хиляди и четиринадесета година.

Hecho en Bruselas, el veintisiete de junio de dos mil catorce.

V Bruselu dne dvacátého sedmého června dva tisíce čtrnáct.

Udfærdiget i Bruxelles den syvogtyvende juni to tusind og fjorten.

Geschehen zu Brüssel am siebenundzwanzigsten Juni zweitausendvierzehn.

Kahe tuhande neljateistkümnenda aasta juunikuu kahekümne seitsmendal päeval Brüsselis.

Έγινε στις Βρυξέλλες, στις είκοσι εφτά Ιουνίου δύο χιλιάδες δεκατέσσερα.

Done at Brussels on the twenty-seventh day of June in the year two thousand and fourteen.

Fait à Bruxelles, le vingt-sept juin deux mille quatorze.

Sastavljeno u Bruxellesu dvadeset sedmog lipnja dvije tisuće četrnaeste.

Fatto a Bruxelles, addì ventisette giugno duemilaquattordici.

Briselē, divi tūkstoši četrpadsmitā gada divdesmit septītajā jūnijā.

Priimta du tūkstančiai keturioliktų metų birželio dvidešimt septintą dieną Briuselyje.

Kelt Brüsszelben, a kétezer-tizennegyedik év június havának huszonhetedik napján.

Magħmul fi Brussell, fis-sebgħa u għoxrin jum ta’ Ġunju tas-sena elfejn u erbatax.

Gedaan te Brussel, de zevenentwintigste juni tweeduizend veertien.

Sporządzono w Brukseli dnia dwudziestego siódmego czerwca roku dwa tysiące czternastego.

Feito em Bruxelas, em vinte e sete de junho de dois mil e catorze.

Întocmit la Bruxelles la douăzeci și șapte iunie două mii paisprezece.

V Bruseli dvadsiateho siedmeho júna dvetisícštrnásť.

V Bruslju, dne sedemindvajsetega junija leta dva tisoč štirinajst.

Tehty Brysselissä kahdentenakymmenentenäseitsemäntenä päivänä kesäkuuta vuonna kaksituhattaneljätoista.

Som skedde i Bryssel den tjugosjunde juni tjugohundrafjorton.

Voor het Koninkrijk België

Pour le Royaume de Belgique

Für das Königreich Belgien

Deze handtekening verbindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap, de Duitstalige Gemeenschap, het Vlaamse Gewest, het Waalse Gewest en het Brussels Hoofdstedelijk Gewest.

Cette signature engage également la Communauté française, la Communauté flamande, la Communauté germanophone, la Région wallonne, la Région flamande et la Région de Bruxelles-Capitale.

Diese Unterschrift bindet zugleich die Deutschsprachige Gemeinschaft, die Flämische Gemeinschaft, die Französische Gemeinschaft, die Wallonische Region, die Flämische Region und die Region Brüssel-Hauptstadt.

За Релублика България

Za Českou republiku

For Kongeriget Danmark

Für die Bundesrepublik Deutschland

Eesti Vabariigi nimel

Thar cheann Na hÉireann

For Ireland

Για την Ελληνική Δημοκρατία

Por el Reino de España

Pour la République française

Za Republiku Hrvatsku

Per la Repubblica italiana

Για την Κυπριακή Δημοκρατία

Latvijas Republikas vārdā –

Lietuvos Respublikos vardu

Pour le Grand-Duché de Luxembourg

Magyarország részéről

Għar-Repubblika ta’ Malta

Voor het Koninkrijk der Nederlanden

Für die Republik Österreich

W imieniu Rzeczypospolitej Polskiej

Pela República Portuguesa

Pentru România

Za Republiko Slovenijo

Za Slovenskú republiku

▼C2

Suomen tasavallan puolesta

För Republiken Finland

För Konungariket Sverige

For the United Kingdom of Great Britain and Northern Ireland

За Европейския съюз

Por la Unión Europea

Za Evropskou unii

For Den Europæiske Union

Für die Europäische Union

Euroopa Liidu nimel

Για την Ευρωπαϊκή Ένωση

For the European Union

Pour l'Union européenne

Za Europsku uniju

Per l'Unione europea

Eiropas Savienības vārdā –

Europos Sąjungos vardu

Az Európai Unió részéről

Għall-Unjoni Ewropea

Voor de Europese Unie

W imieniu Unii Europejskiej

Pela União Europeia

Pentru Uniunea Europeană

Za Európsku úniu

Za Evropsko unijo

Euroopan unionin puolesta

För Europeiska unionen

▼B

Зa Eвpoпeйcката общност зa aтoмна енергия

Por la Comunidad Europea de la Energía Atómica

Za Evropské společenství pro atomovou energii

For Det Europæiske Atomenergifællesskab

Für die Europäische Atomgemeinschaft

Euroopa Aatomienergiaühenduse nimel

Гια την Ευρωπαїκή Κоινότητα Ατομικής Εvέργειας

For the European Atomic Energy Community

Pour la Communauté européenne de l'énergie atomique

Za Europsku zajednicu za atomsku energiju

Per la Comunità europea dell'energia atomica

Eiropas Atomenerģijas Kopienas vārdā –

Europos atominės energijos bendrijos vardu

Az Európai Atomenergia-közösség részéről

F'isem il-Komunità Ewropea tal-Enerġija Atomika

Voor de Europese Gemeenschap voor Atoomenergie

W imieniu Europejskiej Wspólnoty Energii Atomowej

Pela Comunidade Europeia da Energia Atómica

Pentru Comunitatea Europeană a Energiei Atomice

Za Európske spoločenstvo pre atómovú energiu

Za Evropsko skupnost za atomsko energijo

Euroopan atominienergiajärjestön puolesta

För Europeiska atomenergigemenskapen

ANNEX I

FREEDOM, SECURITY AND JUSTICE

Each Party shall, in the context of the implementation of this or other Agreements, ensure a legal level of data protection which at least corresponds to that set out in Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data, as well as the Council of Europe Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data, signed on 28 January 1981 (ETS No. 108) and the Additional Protocol thereto, regarding Supervisory Authorities and Transborder Data Flows, signed on 8 November 2001 (ETS No. 181). Where relevant, each party shall take into account Council Framework Decision 2008/977/JHA of 27 November 2008 on the protection of personal data processed in the framework of police and judicial cooperation in criminal matters, and Recommendation No R (87)15 of 17 September 1987 of the Committee of Ministers of the Council of Europe Regulating the Use of Personal Data in the Police Sector.

ANNEX II

ELIMINATION OF CUSTOMS DUTIES

ANNEX II-A

PRODUCTS SUBJECT TO ANNUAL DUTY-FREE TARIFF-RATE QUOTAS (UNION)

ANNEX II-B

PRODUCTS SUBJECT TO ENTRY PRICE ( 35 )

for which the ad valorem component of the import duty is exempted (UNION)

ANNEX II-C

ANNEX III

APPROXIMATION

ANNEX III-A

LIST OF SECTORAL LEGISLATION FOR APPROXIMATION

The below list reflects Georgia's priorities with regard to approximation of EU's New Approach and Global Approach Directives as included in the Government of Georgia's Strategy in Standardisation, Accreditation, Conformity Assessment, Technical Regulation and Metrology and Programme on Legislative Reform and Adoption of Technical Regulations, of March 2010.

ANNEX III-B

INDICATIVE LIST OF HORIZONTAL LEGISLATION

The below list outlines the horizontal ‘principles and practice laid down in relevant Union acquis’ referred to in Article 47(1) of this Agreement. It aims to serve as a non-exhaustive guidance for Georgia for the purpose of approximation of horizontal measures of the Union.

ANNEX IV

COVERAGE

ANNEX IV-A

SPS MEASURES

PART 1

Measures applicable to main live animal categories

PART 2

Measures applicable to animal products

I.   Main product categories of animal products for human consumption

II.   Main product categories of animal by-products

III.   Pathogenic agents

PART 3

Plants, plant products and other objects

Plants, plant products and other objects ( 36 ) which are potential carriers of pests that, by their nature or that of their processing, may create a risk for the introduction and spread of pests.

PART 4

Measures applicable to food and feed additives

Food:

Feed ( 37 ):

ANNEX IV-B

ANIMAL WELFARE STANDARDS

Animal welfare standards concerning:

ANNEX IV-C

OTHER MEASURES COVERED BY CHAPTER 4 OF TITLE IV

Georgia shall approximate its GMO legislation to that of the Union included into the approximation list as laid down in Article 55(4) of this Agreement.

ANNEX IV-D

MEASURES TO BE INCLUDED AFTER THE APPROXIMATION OF THE UNION LEGISLATION

ANNEX V

LIST OF NOTIFIABLE ANIMAL AND AQUACULTURE DISEASES AND REGULATED PESTS FOR WHICH REGIONAL FREEDOM CAN BE RECOGNISED

ANNEX V-A

ANIMAL AND FISH DISEASES SUBJECT TO NOTIFICATION, FOR WHICH THE STATUS OF THE PARTIES IS RECOGNISED AND FOR WHICH REGIONALISATION DECISIONS MAY BE TAKEN

ANNEX V-B

RECOGNITION OF THE PEST STATUS, PEST FREE AREAS OR PROTECTED ZONES

A.   Recognition of pest status

Each Party shall establish and communicate a list of regulated pests based on the following principles:

Any change to the list of pest status shall be immediately notified to the other Party unless otherwise notified to the relevant international organisation.

B.   Recognition of pest free areas and protected zones

The Parties recognise the protected zones and the concept of pest free areas and its application in respect of relevant International Standards for Phytosanitary Measures (ISPMs).

ANNEX VI

REGIONALISATION/ZONING, PEST-FREE AREAS AND PROTECTED ZONES

A.   Animal and aquaculture diseases

1.   Animal diseases

The basis for recognition of the animal disease status of the territory or of a region of a Party shall be the Terrestrial Animal Health Code of the World Organisation for Animal Health (OIE).

The basis for regionalisation decisions for an animal disease shall be the Terrestrial Animal Health Code of the OIE.

2.   Aquaculture diseases

The basis for regionalisation decisions for aquaculture diseases shall be the Aquatic Animal Health Code of the OIE.

B.   Pests

The criteria for the establishment of pest free areas or protected zones for certain pests shall comply with the provisions of either:

C.   Criteria for the recognition of the special status for animal diseases of the territory or a region of a Party

ANNEX VII

PROVISIONAL APPROVAL OF ESTABLISHMENTS

Conditions and provisions for provisional approval of establishments

1.

Provisional approval of establishments means that for the purpose of import the importing Party approves provisionally the establishments in the exporting Party on the basis of appropriate guarantees provided by that Party without prior inspection by the importing Party of the individual establishments in accordance with the provisions of paragraph 4 of this Annex. The procedure and conditions set out in paragraph 4 of this Annex shall be used for modifying or completing the lists provided for in paragraph 2 of this Annex to take account of new applications and guarantees received. Only as regards the initial list of establishments verification may be part of the procedure in accordance with the provisions of point (d) of paragraph 4.

2.

The provisional approval shall initially be applied to the following categories of establishments: 2.1. Establishments for products of animal origin for human consumption: — slaughterhouses for fresh meat of domestic ungulates, poultry, lagomorphs and farm game (Annex IV-A, Part 1); — game handling establishments; — cutting plants; — establishments for minced meat, meat preparation, mechanically separated meat and meat products; — purification centres and dispatching centres for live bivalve molluscs; — establishments for: — eggs products, — dairy products, — fishery products, — treated stomachs, bladders and intestines, — gelatine and collagen, — fish oil, — factory vessels, — freezer vessels. 2.2. Approved or registered establishments producing animal by-products and main categories of animal by-products not for human consumption Type of approved or registered establishment and plants Product Slaughterhouses Animal by-products to be fed to fur animals Animal by-products for the manufacture of pet food Blood and blood products from equidae to be used outside the feed chain Fresh or chilled hides and skins of ungulates Animal by-products for the manufacture of derived products for uses outside the feed chain Dairy plants Milk, milk-based products and milk-derived products Colostrum and colostrum products Other facilities for the collection or handling of animal by-products (i.e. unprocessed/ untreated materials Blood and blood products from equidae to be used outside the feed chain Untreated blood products, excluding of equidae, for derived products for purposes outside the feed chain for farmed animals Treated blood products, excluding of equidae, for the manufacture of derived products for purposes outside the feed chain for farmed animals Fresh or chilled hides and skins of ungulates Pig bristles from third countries or regions thereof that are free from African swine fever Bones and bone products (excluding bone meal), horns and horn products (excluding horn meal) and hooves and hoof products (excluding hoof meal) for uses other than as feed material, organic fertiliser or soil improvers Horns and horn products, excluding horn meal, and hooves and hoof products, excluding hoof meal, for the production of organic fertilisers or soil improvers Gelatine not intended for human consumption to be used by the photographic industry Wool and hair Treated feathers, parts of feathers and down Processing plants Processed animal protein, including mixtures and products other than petfood containing such protein Blood products that could be used as feed material Treated hides and skins of ungulates Treated hides and skins of ruminants and of equidae (21 days) Pig bristles from third countries or regions thereof that are not free of African swine fever Fish oil to be used as feed material or for purposes outside the feed chain Rendered fats to be used as feed materials Rendered fats for certain purposes outside the feed chain for farmed animals Gelatine or collagen to be used as feed material or for purposes outside the feed chain Hydrolysed protein, dicalcium phosphate or tricalcium phosphate to be used as feed material or for purposes outside the feed chain Apiculture by-products intended exclusively for use in apiculture Fat derivatives to be used outside the feed chain Fat derivatives to be used as feed or outside the feed chain Egg products that could be used as feed material Pet food plants (including plants manufacturing dog chews and flavouring innards) Canned pet food Processed pet food other than canned pet food Dog chews Raw pet food for direct sale Flavouring innards for use in the manufacture of pet food Game trophies plants Treated game trophies and other preparations of birds and ungulates, being solely bones, horns, hooves, claws, antlers, teeth, hides or skins Game trophies or other preparations of birds and ungulates consisting of entire parts not having been treated Plants or establishments manufacturing intermediate products Intermediate products Fertiliser and soil improvers Processed animal protein including mixtures and products other than pet food containing such protein Processed manure, derived products from processed manure and guano from bats Storage of derived products All derived products

3.	The importing Party shall draw up lists of provisionally approved establishments as referred to in paragraphs 2.1 and 2.2 and shall make these lists publicly available.

4.

Conditions and procedures for provisional approval: (a) if import of the animal product concerned from the exporting Party has been authorised by the importing Party and the relevant import conditions and certification requirements for the products concerned have been established; (b) if the competent authority of the exporting Party has provided the importing Party with satisfactory guarantees that the establishments appearing on its list or lists meet the relevant health requirements for the products processed of the importing Party and has officially approved the establishments appearing on the lists for exportation to the importing Party; (c) in the event of non-compliance with the said guarantees the competent authority of the exporting Party must have a real power to suspend the activities of exportation to the importing Party from an establishment for which that authority provided guarantees; (d) verification in accordance with the provisions of Article 62 of this Agreement by the importing Party may be part of the provisional approval procedure. That verification concerns the structure and the organisation of the competent authority responsible for the approval of the establishment as well as the powers available to that competent authority and the guarantees that it can provide with regard to the implementation of the importing Party's rules. That verification may include on the spot inspection of a certain representative number of establishments appearing on the list or lists provided by the exporting Party. Taking into account the specific structure and division of competence within the European Union, such verification in the European Union may concern individual Member States; (e) based on the results of the verification provided for in point (d) of this paragraph, the importing Party may amend the existing list of establishments.

ANNEX VIII

PROCESS OF RECOGNITION OF EQUIVALENCE

1.   Principles:

2.   Preconditions:

3.   The process:

4.   Demonstration of equivalence of measures by the exporting party and assessment of this demonstration by the importing Party:

5.   Conclusion of the importing Party

The process may include an inspection or verification;

In case the importing Party arrives at a negative conclusion, it shall provide the exporting Party with a detailed and reasoned explanation.

6.	For plants and plant products, equivalence concerning phytosanitary measures, shall be based on the conditions referred to in Article 57(6) of this Agreement.

ANNEX IX

IMPORT CHECKS AND INSPECTION FEES

A.   Principles of import checks

Import checks consist of documentary checks, identity checks and physical checks.

As regards animals and animal products, the physical checks and their frequency shall be based on the level of the risk associated with such imports.

In carrying out the checks for plant health purposes, the importing Party shall ensure that the plants, plant products and other objects shall be meticulously inspected on an official basis, either in their entirety or by inspecting a representative sample, in order to make sure, that they are not contaminated by pests.

In the event that the checks reveal non-conformity with the relevant standards and/or requirements, the importing Party shall take measures proportionate to the risk involved. Wherever possible, the importer or his representative shall be given access to the consignment and the opportunity to provide any relevant information to assist the importing Party in taking a final decision concerning the consignment. Such decision shall be proportional to the level of the risk associated with such imports.

B.   Frequencies of physical checks

B.1.   Import of animals and animal products from Georgia to the European Union and from the European Union to Georgia

B.2.   Import of non-animal food from Georgia to the European Union and from the European Union to Georgia

B.3.   Import to the European Union or to Georgia of plants, plant products and other objects

For plants, plant products and other objects listed in Part B of Annex V to Directive 2000/29/EC:

The importing Party carries out checks in order to verify the phytosanitary status of the consignment(s).

The Parties shall assess the necessity of plant health import checks in bilateral trade for commodities referred to in the above Annex as originating in non-EU countries.

A reduced frequency of plant health import checks could be set up for regulated commodities with the exception of plants, plant product and other objects defined in accordance with Commission Regulation (EC) No 1756/2004 of 11 October 2004 specifying the detailed conditions for the evidence required and the criteria for the type and level of the reduction of the plant health checks of certain plants, plant products or other objects listed in Part B of Annex V to Council Directive 2000/29/EC.

ANNEX X

CERTIFICATION

A.   Principles of certification

Plants and plant products and other objects:

In respect of certification of plants and plant products and other objects, the competent authorities shall apply the principles laid down in the relevant ISPMs.

Animals and animal products:

B.   Certificate referred to in Article 60(2)(a) of this Agreement

The health attestation in the certificate reflects the status of equivalence of the commodity concerned. The health attestation states compliance with the production standards of the exporting Party recognised as equivalent by the importing Party.

C.   Official languages for certification

1.   Import into the European Union

For plants, plant products and other objects:

The certificates shall be drawn up in a language understood by the certifying officer and in at least one of the official languages of the importing Party.

For animals and animal products:

The health certificate must be drawn up in at least one of the official languages of the EU Member State of destination and in one of those of the EU Member State in which the import checks provided for in Article 63 of this Agreement are carried out. However, an EU Member State may consent to the use of an official Union language other than its own.

2.   Import into Georgia

The health certificate must be drawn up in Georgian, and in at least one of the official languages of the certifying EU Member State.

ANNEX XI

APPROXIMATION

ANNEX XI-A

PRINCIPLES FOR THE EVALUATION OF PROGRESS IN THE APPROXIMATION PROCESS FOR THE PURPOSE OF RECOGNITION OF EQUIVALENCE

PART I

Gradual approximation

1.   General rules

The sanitary, phytosanitary and animal welfare law of Georgia shall be gradually approximated to that of the Union, based on the approximation list of the EU sanitary, phytosanitary and animal welfare law. That list shall be divided into priority areas that relate to measures, as defined in Annex IV to this Agreement. For this reason Georgia shall identify its trade priority areas.

Georgia shall approximate domestic rules to the EU acquis by either:

In either case, Georgia shall:

Georgia shall document such approximation in tables of correspondence according to a model indicating the date on which domestic rules enter into force and the official journal in which the rules were published. The model of the tables of correspondence for the preparation and evaluation is provided in Part II of this Annex. If the approximation is not complete, reviewers ( 38 ) shall describe the shortcomings in the column provided for comments.

Irrespective of the priority area identified, Georgia shall prepare specific tables of correspondence demonstrating the approximation for other general and specific legislation, including, in particular, the general rules related to:

PART II

Evaluation

1.   Procedure and method

Georgia's sanitary, phytosanitary and animal welfare law covered by Chapter 4 (Sanitary and Phytosanitary Measures) of Title IV (Trade and Trade-related Matters) of this Agreement shall be gradually approximated to that of the Union and shall be effectively enforced ( 39 ).

Tables of correspondence shall be prepared according to the model as laid down in point (2) of this Annex for each single approximated act and submitted in English for review by the reviewers.

If the result of the evaluation is positive for an individual measure, a group of measures, a system applicable to a sector, sub-sector, a commodity or a group of commodities, the conditions of Article 57(4) of this Agreement shall apply.

2.   Tables of correspondence

2.1.   When preparing tables of correspondence, the following shall be taken into consideration:

The EU acts shall serve as a basis for preparation of a table of correspondence. To this end the version in force at the time of approximation shall be used. Particular attention shall be paid to precise translation into the national language, as linguistic imprecisions may lead to misinterpretation, in particular if they concern the scope of the law ( 40 ).

2.2.   Model of table of correspondence:

Legend:

▼M2

ANNEX XI-B

LIST OF THE UNION LEGISLATION TO BE APPROXIMATED BY GEORGIA

In accordance with Article 55(4) of this Agreement, Georgia shall approximate its legislation to the following Union legislation within the timeframes as listed below.

▼B

ANNEX XII

STATUS OF EQUIVALENCE

ANNEX XIII

APPROXIMATION OF CUSTOMS LEGISLATION

Customs Code

Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code

Timetable: the approximation with the provisions of the above mentioned Regulation, with the exception of Articles 1 to 3, 8(1) first indent, 18, 19, 94(1), 97, 113, 117(c), 129, 163 to 165, 174, 179, 209, 210, 211, 215(4), 247 to 253 shall be carried out within four years following the entry into force of this Agreement.

The Parties shall revisit the approximation of Articles 84, 130-136 referring to the processing under customs control before the expiry of timeframe for approximation as set out above.

Approximation with Articles 173, 221(3) and 236(2) shall take place on a best endeavour basis.

Common Transit and SAD

Convention of 20 May 1987 on the Simplification of Formalities in Trade in Goods

Convention of 20 May 1987 on a common transit procedure

Timetable: The approximation with the provisions of the above mentioned Conventions, including through a possible accession to those Conventions by Georgia, shall be carried out within four years following the entry into force of this Agreement.

Reliefs from customs duty

Council Regulation (EC) No 1186/2009 of 16 November 2009 setting-up a Community system of reliefs from customs duty

Timetable: the approximation with Titles I and II of the above mentioned Regulation shall be carried out within four years following the entry into force of this Agreement.

Intellectual property rights protection

Regulation (EU) No 608/2013 of the European Parliament and of the Council of 12 June 2013 concerning customs enforcement of intellectual property rights

Timetable: the approximation with the provisions of the above mentioned Regulation, with the exception of Article 26, shall be carried out within three years following the entry into force of this Agreement. The obligation on approximation to Regulation No 608/2013 in itself does not create any obligation on Georgia to apply measures where a right in intellectual property is not protected under its substantive intellectual property laws and regulations.

ANNEX XIV

LIST OF RESERVATIONS ON ESTABLISHMENT; LIST OF COMMITMENTS ON CROSS-BORDER SUPPLY OF SERVICES; LIST OF RESERVATIONS ON KEY PERSONNEL, GRADUATE TRAINEES AND BUSINESS SELLERS; LIST OF RESERVATIONS ON CONTRACTUAL SERVICES SUPPLIERS AND INDEPENDENT PROFESSIONALS

Union

Georgia

The following abbreviations are used for the purpose of Annexes XIV-A, XIV-B, XIV-C and XIV-D:

The following abbreviation is used for the purpose of Annexes XIV-E, XIV-F, XIV-G and XIV-H:

ANNEX XIV-A

LIST OF RESERVATIONS ON ESTABLISHMENT (UNION)

The list is composed of the following elements:

A reservation corresponding to an activity which is not liberalised (Unbound) is expressed as follows: ‘No national treatment and most favoured nation treatment obligations’.

When a reservation under (a) or (b) includes only Member State-specific reservations, Member States not mentioned therein undertake the obligations of Article 79(2) of this Agreement in the sector concerned without reservations (the absence of Member State-specific reservations in a given sector is without prejudice to horizontal reservations or to sectoral Union-broad reservations that may apply).

Horizontal reservations

Public utilities

EU: Economic activities considered as public utilities at a national or local level may be subject to public monopolies or to exclusive rights granted to private operators ( 42 ).

Types of establishment

EU: Treatment accorded to subsidiaries (of Georgian companies) formed in accordance with the law of the Member States and having their registered office, central administration or principal place of business within the Union is not extended to branches or agencies established in the Member States by Georgian companies ( 43 ).

AT: Managing directors of branches of juridical persons must be resident in Austria; natural persons responsible within a juridical person or a branch for the observance of the Austrian Trade Act must have a domicile in Austria.

EE: At least half of the members of the management board shall have their residence in the EU.

FI: A foreigner carrying on trade as a private entrepreneur and at least one of the partners in a general partnership or of general partners in a limited partnership have to be permanently resident in the European Economic Area (EEA). For all sectors, EEA residency is required for at least one of the ordinary and deputy members of the board of directors and the managing director; however exemptions may be granted to certain companies. If a Georgian organisation intends to carry on business or trade by establishing a branch in Finland, a trade permit is required.

HU: No national treatment and most favoured nation treatment obligations for the acquisition of state owned properties.

IT: Access to industrial, commercial and artisanal activities may be subject to a residence permit.

PL: Georgian entrepreneurs can undertake and conduct economic activity only in the form of a limited partnership, limited joint-stock partnership, limited liability company, and joint-stock company (in the case of legal services only in the form of registered partnership and limited partnership).

RO: The sole administrator or the chairman of the board of administration as well as half of the total number of administrators of the commercial companies shall be Romanian citizens unless otherwise stipulated in the company contract or its statutes. The majority of the commercial companies' auditors and their deputies shall be Romanian citizens.

SE: A foreign company, which has not established a legal entity in Sweden or is conducting its business through a commercial agent, shall conduct its commercial operations through a branch, registered in Sweden, with independent management and separate accounts. The managing director of the branch, and the vice-managing director, if appointed, must reside in the EEA. A natural person not resident in the EEA, who conducts commercial operations in Sweden, shall appoint and register a resident representative responsible for the operations in Sweden. Separate accounts shall be kept for the operations in Sweden. The competent authority may in individual cases grant exemptions from the branch and residency requirements. Building projects with duration of less than a year - conducted by a company located or a natural person residing outside the EEA - are exempted from the requirements of establishing a branch or appointing a resident representative. A Swedish limited liability company may be established by a natural person resident within the EEA, by a Swedish juridical person or by a juridical person that has been formed according to the legislation in a state within the EEA and that has its registered office, headquarters or principal place of business within the EEA. A partnership may be a founder, only if all owners with unlimited personal liability are resident within the EEA. Founders outside the EEA may apply for permission from the competent authority. For limited liability companies and co-operative economic associations, at least 50 % of the members of the board of directors, at least 50 % of the deputy board members, the managing director, the vice-managing director and at least one of the persons authorised to sign for the company, if any, must reside within the EEA. The competent authority may grant exemptions from this requirement. If none of the company's/society's representatives reside in Sweden, the board must appoint and register a person resident in Sweden, who has been authorised to receive services on behalf of the company/society. Corresponding conditions prevail for establishment of all other types of legal entities.

SK: A Georgian natural person whose name is to be registered in the Commercial Register as a person authorised to act on behalf of the entrepreneur is required to submit residence permit for Slovakia.

Investment

ES: Investment in Spain by foreign governments and foreign public entities (which tends to affect, besides economic, also non-economic interests of the State), directly or through companies or other entities controlled directly or indirectly by foreign governments, needs prior authorisation by the government.

BG: Foreign investors cannot participate in privatisation. Foreign investors and Bulgarian juridical persons with controlling Georgian participation require permission for:

FR: Georgian purchases exceeding 33,33 % of the shares of capital or voting rights in existing French enterprises, or 20 % in publicly quoted French companies, are subject to the following regulations:

Foreign participation in newly privatised companies may be limited to a variable amount, determined by the government of France on a case-by-case basis, of the equity offered to the public. For establishing in certain commercial, industrial or artisanal activities, a specific authorisation is needed if the managing director is not a holder of a permanent residence permit.

HU: No national treatment and most favoured nation treatment obligations with regards to Georgian participation in newly privatised companies.

IT: The Government can exercise certain special powers in enterprises operating in the areas of defence and national security (in relation to all juridical persons carrying out activities considered of strategic importance in the areas of defence and national security), and in certain activities of strategic importance in the areas of energy, transport and communications.

PL: Acquisition of real estate, direct and indirect, ►C1  by foreigners (foreign natural or ◄ foreign juridical persons) requires permission. Unbound in relation to acquisition of state-owned property, i.e. the regulations governing the privatisation process.

Real estate

The acquisition of land and real estate is subject to the following limitations ( 44 ):

AT: The acquisition, purchase as well as rent or lease of real estate by foreign natural persons and juridical persons requires an authorisation by the competent regional authorities (Länder) which will consider whether important economic, social or cultural interests are affected or not.

BG: Foreign natural and juridical persons (incl. through a branch) cannot acquire ownership of land. Bulgarian juridical persons with foreign participation cannot acquire ownership of agricultural land. Foreign juridical persons and foreign citizens with permanent residence abroad can acquire ownership of buildings and limited property rights (right to use, right to build, right to raise a superstructure and servitudes) of real estate.

CZ: Agricultural and forest land can be acquired only by foreign natural persons having permanent residence in the Czech Republic and enterprises established as juridical persons with permanent residence in the Czech Republic. Specific rules apply to the agricultural and forest land in the state ownership. State agricultural land can be acquired only by Czech nationals, by municipalities and by public universities (for training and research). Juridical persons (regardless of the form or place of residence) can acquire state agricultural land from the state only if a building, which they already own, is built on it or if this land is indispensable for the use of such building. Only municipalities and public universities can acquire state forests.

CY: No national treatment and most favoured nation treatment obligations.

DK: Limitations on real estate purchase by non-resident physical and legal entities. Limitations on agricultural estate purchased by foreign physical and legal entities.

HU: Subject to the exceptions included in legislation on arable land, foreign natural and juridical persons are not allowed to acquire arable land. The purchase of real estate by foreigners is subject to obtaining permission from the country public administration agency competent on the basis of the location of real estate.

EL: According to Law No 1892/90, permission from the Ministry of Defence is needed for acquisition of land in areas near borders. According to administrative practices, permission is easily granted for direct investment.

HR: Unbound in relation to acquisition of real estate by services suppliers not established and incorporated in Croatia. Acquisition of real estate necessary for the supply of services by companies established and incorporated in Croatia as juridical persons is allowed. Acquisition of real estate necessary for the supply of services by branches requires the approval of the Ministry of Justice. Agricultural land cannot be acquired by foreign natural or juridical persons.

IE: Prior written consent of the Land Commission is necessary for the acquisition of any interest in Irish land by domestic or foreign companies or foreign nationals. Where such land is for industrial use (other than agricultural industry), this requirement is waived subject to certification to this effect from the Minister for Enterprise, Trade and Employment. This law does not apply to land within the boundaries of cities and towns.

IT: The purchase of real estate by foreign natural and juridical persons is subject to a condition of reciprocity.

LT: Acquisition into ownership of land, internal waters and forests shall be permitted to foreign natural and juridical persons meeting the criteria of European and transatlantic integration. The land plot acquisition procedure, terms and conditions, as well as restrictions shall be established by the constitutional law.

LV: Limitations on the acquisition of land in rural areas and land in cities or urban areas; land lease not exceeding 99 years permitted.

PL: The acquisition of real estate, direct and indirect requires a permit. A permit is issued through an administrative decision by a minister competent in internal affairs, with the consent of the Minister of National Defence, and in the case of agricultural real estate, also with the consent of the Minister of Agriculture and Rural Development.

RO: Natural persons not having Romanian citizenship and residence in Romania, as well as juridical persons not having Romanian nationality and their headquarters in Romania, cannot acquire ownership over any kind of land plots, through inter vivos acts.

SI: Branches established in the Republic of Slovenia by foreign persons may only acquire real estate, except land, necessary for the conduct of the economic activities for which they are established.

SK: Agricultural and forest land cannot be acquired by foreign natural or juridical persons. Specific rules apply to certain other real estate categories. Foreign entities may acquire real property through establishment of Slovak legal entities or participation in joint ventures. Acquisition of the land by foreign entities is subject to ►C1  authorisation (for Modes 3 and 4). ◄

Sectoral reservations

A.   Agriculture, Hunting, Forestry and Logging

FR: The establishment of agricultural enterprises by non-EU companies and the acquisition of vineyards by non-EU entrepreneurs are subject to authorisation.

AT, HU, MT, RO: No national treatment and most favoured nation treatment obligations for agricultural activities.

CY: The participation of investors is allowed only up to 49 %.

IE: Establishment by Georgian residents in flour milling activities is subject to authorisation.

BG: No national treatment and most favoured nation treatment obligations for logging activities.

B.   Fishing and Aquaculture

EU: Access to and use of the biological resources and fishing grounds situated in the maritime waters coming under the sovereignty or within the jurisdiction of Member States may be restricted to fishing vessels flying the flag of a EU territory unless otherwise provided for.

SE: A ship shall be deemed Swedish and can carry the Swedish flag if more than half is owned by Swedish citizens or juridical persons. The Government may permit foreign vessels to fly the Swedish flag if their operations are under Swedish control or the owner has permanent residence in Sweden. Vessels which are 50 % owned by EEA nationals or companies having their registered office, central administration or principal place of business in the EEA and whose operation is controlled from Sweden, may also be registered in the Swedish register. A professional fishing license, needed for professional fishing, is only given if the fishing has a connection to the Swedish fishing industry. Connection can for example be landing half the catch during a calendar year (in value) in Sweden, half the fishing trips departs from a Swedish harbour or half of the fishermen in the fleet are domiciled in Sweden. For vessels over five meters, a vessel permit is needed together with the professional fishing license. A permit is granted if, among other things, the vessel is registered in the national registry and the vessel have a real economic connection to Sweden.

UK: No national treatment and most favoured nation obligations for the acquisition of UK flagged vessels, unless the investment is at least 75 % owned by British citizens and/or by companies which are at least 75 % owned by British citizens, in all cases resident and domiciled in the UK. Vessels must be managed, directed and controlled from within the UK.

C.   Mining and quarrying

EU: No national treatment and most favoured nation treatment obligations for juridical persons controlled ( 45 ) by natural or juridical persons of a non-EU country which accounts for more than 5 % of the EU's oil or natural gas imports. No national treatment and most favoured nation treatment obligations for direct branching (incorporation is required).

D.   Manufacturing

EU: No national treatment and most favoured national obligations for juridical persons controlled ( 46 ) by natural or juridical persons of a non-EU country which accounts for more than 5 % of the EU's oil or natural gas imports. No national treatment and most favoured nation treatment obligations for direct branching (incorporation is required).

HR: Residence requirement for publishing, printing and reproduction of recorded media.

IT: Owners of publishing and printing company and publishers must be citizens of a Member State. Companies must have their headquarters in a Member State.

SE: Owners of periodicals that are printed and published in Sweden, who are natural persons, must reside in Sweden or be citizens of the EEA. Owners of such periodicals who are juridical persons must be established in the EEA. Periodicals that are printed and published in Sweden, and technical recordings must have a responsible editor, who must be domiciled in Sweden.

For production, transmission and distribution on own account of electricity, gas, steam and hot water ( 47 ) (excluding nuclear based electricity generation)

EU: No national treatment and most favoured nation obligations for production of electricity, transmission and distribution of electricity on own account and manufacture of gas, distribution of gaseous fuels.

For production, transmission and distribution of steam and hot water

EU: No national treatment and most favoured national obligations for juridical persons controlled ( 48 ) by natural or juridical persons of a non-EU country which accounts for more than 5 % of the EU's oil, electricity or natural gas imports. Unbound for direct branching (incorporation is required).

FI: No national treatment and most favoured nation obligations for production, transmission and distribution of steam and hot water.

1.   Business services

Professional services

EU: No national treatment and most favoured nation treatment obligations with respect to legal advisory and legal documentations and certification services provided by legal professionals entrusted with public functions, such as notaries, ‘huissiers de justice’ or other ‘officiers publics et ministériels’, and with respect to services provided by bailiffs who are appointed by an official act of government.

EU: Full admission to the Bar required for the practice of domestic (EU and Member State) law, which is subject to a nationality condition and/or residency requirement.

AT: With respect to legal services, foreign lawyers' (who must be fully qualified in their home country) equity participation and shares in the operating result of any law firm may not exceed 25 %. They may not have decisive influence in decision-making. For foreign minority investors, or its qualified personnel, provision of legal services is only authorised in respect of public international law and the law of the jurisdiction where they are qualified to practice as a lawyer; provision of legal services in respect of domestic (EU and Member State) law including representation before courts requires full admission to the bar, which is subject to a nationality condition.

With respect to accounting, bookkeeping, auditing and taxation advisory services, equity participation and voting rights of persons entitled to exercise the profession according to foreign law may not exceed 25 %.

No national treatment and most favoured nation treatment obligations for medical (except for dental services and for psychologists and psychotherapists) and veterinary services.

BG: With respect to legal services, some types of legal form (‘advokatsko sadrujue’ and ‘advokatsko drujestvo’) are reserved to lawyers fully admitted to the Bar in the Republic of Bulgaria. For mediation services permanent residence is required. With respect to taxation services EU nationality condition applies. With respect to architectural services, urban planning and landscape architectural services, engineering and integrated engineering services foreign natural and juridical persons, possessing recognised licensed designer competence under their national legislation, may survey and design works in Bulgaria independently only after winning a competitive procedure and when selected as contractors under the terms and according to the procedure established by the Public Procurement Act; for projects of national or regional significance, Georgian entrepreneurs must act in partnership with or, as subcontractors of, local entrepreneurs. With respect to urban planning and landscape architectural services, nationality condition applies. No national treatment and most favoured national treatment obligation for midwives services and services provided by nurses, physiotherapists and paramedical personnel.

DK: Foreign auditors may enter into partnerships with Danish State authorised accountants after obtaining permission from the ►C1  Danish Business Authority. ◄

FI: No national treatment and most favoured nation treatment obligations with respect to services related to publicly or privately funded health and social services (i.e. Medical, including Psychologists, and Dental services; Midwives services; Physiotherapists and Paramedical Personnel).

FI: With respect to auditing services, residency requirement for at least one of the auditors of a Finnish Liability company.

FR: With respect to legal services, some types of legal form (‘association d'avocats’ and ‘société en participation d'avocat’) are reserved to lawyers fully admitted to the Bar in FR. With respect to architectural services, medical (including psychologists) and dental services, midwife services and services provided by nurses, physiotherapists and paramedical personnel foreign entrepreneurs only have access to the legal forms of ‘société d'exercice liberal’ (sociétés anonymes, sociétés à responsabilité limitée ou sociétés en commandite par actions) and ‘société civile professionnelle’. Nationality condition and reciprocity apply with respect to veterinary services.

EL: No national and most favoured nation treatment with respect to dental technicians. EU nationality is required to obtain a licence to be a statutory auditor and in veterinary services.

ES: Statutory auditors and industrial property attorneys are subject to an EU nationality condition.

HR: Unbound except for consultancy on home country, foreign and international law. Representation of parties before courts can be practised only by the members of the Bar Council of Croatia (Croatian title ‘odvjetnici’). Citizenship requirement for membership in the Bar Council. In proceedings involving international elements, parties can be represented before arbitration courts – ad hoc courts by lawyers who are members of bar associations of other countries.

A licence is required to provide audit services. Natural and juridical persons may supply architectural and engineering services upon approval of the Croatian Chamber of Architects and Croatian Chamber of Engineers respectively.

HU: Establishment should take the form of partnership with a Hungarian barrister (ügyvéd) or a barrister's office (ügyvédi iroda), or representative office. Residency requirement for non EEA national in veterinary services.

LV: In a commercial company of sworn auditors more than 50 % of the voting capital shares shall be owned by sworn auditors or commercial companies of sworn auditors of the EU or the EEA.

LT: With respect to auditing services, at least three-quarters of the shares of an audit company must belong to auditors or auditing companies of EU or EEA.

PL: While other types of legal form are available for EU lawyers, foreign lawyers only have access to the legal forms of registered partnership and limited partnership. EU nationality condition applies to provide veterinary services.

SK: Residency is required to provide architectural, engineering services, veterinary services.

SE: For legal services, admission to the Bar, necessary only for the use of the Swedish title ‘advokat’, is subject to a residency requirement. There is a residency requirement for liquidators. The competent authority may grant exemption from this requirement. There are EEA requirements connected to the appointing of a certifier of an economic plan. EEA residency requirement for auditing services.

Research and Development services

EU: For publicly funded Research and Development services, exclusive rights and/or authorisations may only be granted to EU nationals and to EU juridical persons having their headquarters in the EU.

Rental/Leasing without Operators

A.   Relating to ships:

LT: Ships must be owned by Lithuanian natural persons or companies established in Lithuania.

SE: In the case of Georgian ownership interests in a ship, proof of dominating Swedish operating influence must be shown to fly the Swedish flag.

B.   Relating to aircraft

EU: With respect to rental and leasing relating to aircraft, although waivers can be granted for short term lease contracts, aircraft must be owned either by natural persons meeting specific nationality criteria or by juridical persons meeting specific criteria regarding ownership of capital and control (including nationality of directors).

Other business services

EU, except HU and SE: No national treatment and most favoured nation treatment obligations for supply services of domestic help personnel, other commercial or industrial workers, nursing and other personnel. Residency or commercial presence is required and nationality requirements may exist.

EU except BE, DK, EL, ES, FR, HU, IE, IT, LU, NL, SE and UK: Nationality conditions and residency requirement for placement services and supply services of personnel.

EU except AT and SE: For investigation services, no national treatment and most favoured treatment obligations. Residency or commercial presence is required and nationality requirements may exist.

AT: Regarding placement services and labour leasing agencies, an authorisation can only be granted to juridical persons having their headquarter in the EEA and members of the management board or managing partners/shareholders entitled to represent the juridical person have to be EEA-citizens and have to be domiciled in the EEA.

BE: A company having its head office outside the EEA has to prove that it supplies placement services in its country of origin. With respect to security services, EU citizenship and residence are required for managers.

BG: Nationality is required for activities in aerial photography and for geodesy, cadastral surveying and cartography. No national treatment and most favoured national treatment obligations for placement and supply services of personnel, placement services; supply services of office support personnel; investigation services; security services; technical testing and analysis services; services on contract basis for repair and dismantling of equipment in oil and gas fields. No national treatment and most favoured national treatment obligations for official translation and interpretation.

DE: Nationality condition for sworn interpreters.

DK: With respect to security services, residency requirement and nationality condition for majority of members of the board and for managers. No national treatment and most favoured nation treatment obligations for the supply of airport guard services.

EE: No national treatment and most favoured nation treatment obligations for security services. EU citizenship required for sworn translators.

FI: EEA residency is required for certified translators.

FR: No national treatment obligation and most favoured nation treatment obligations with respect to the attribution of rights in the area of placement services.

FR: Foreign entrepreneurs are required to have a specific authorisation for exploration and prospection services for scientific and technical consulting services.

HR: No national treatment and most favoured nation treatment obligations for placement services; investigation and security services.

IT: Italian or EU nationality and residency requirement in order to obtain the necessary authorisation to supply security guard services. Owners of publishing and printing company and publishers must be citizens of a Member State. Companies must have their headquarters in a Member State. No national treatment and MFN obligation for collection agency and credit reporting services.

LV: With respect to investigations services, only detective companies whose head and every person who has an office in the administration thereof is a national of the EU or the EEA are entitled to obtain a license. With respect to security services at least half of the equity capital should be possessed by physical and juridical persons of the EU or the EEA to obtain a license.

LT: The activity of security services, may only be undertaken by persons with the citizenship of the EEA or a NATO country.

PL: With respect to investigation services, the professional license can be granted to a person holding Polish citizenship or to a citizen of another Member State, EEA or Switzerland. With respect to security service, a professional license may be granted only to a person holding Polish citizenship or to a citizen of another Member State, EEA or Switzerland. EU nationality condition for sworn translators. Polish nationality condition to provide aerial photographic services and for the editor-in chief of newspapers and journals.

PT: No national treatment and most favoured nation treatment obligations for investigation services. An EU nationality condition for entrepreneurs to provide collection agency services and credit reporting services. Nationality requirement for specialised personnel for security services.

SE: Residency requirement for publisher and owner of publishing and printing companies. Only Sami people may own and exercise reindeer husbandry.

SK: With respect to investigation services and security services, licences may be granted only if there is no security risk and if all managers are citizens of the EU, EEA or Switzerland.

4.   Distribution services

EU: No national treatment and most favoured nation treatment obligations with respect to distribution of arms, munitions and explosives.

EU: Nationality condition and residency requirement applies in some countries to operate a pharmacy and operate as a tobacconist.

FR: No national treatment and most favoured nation treatment obligations with respect to granting of exclusive rights in the area of tobacco retail.

FI: No national treatment and most favoured nation treatment obligations with respect to distribution of alcohol and pharmaceuticals.

AT: No national treatment and most favoured nation treatment obligations with respect to distribution of pharmaceuticals

BG: No national treatment and most favoured nation treatment obligations with respect to distribution of alcoholic beverages, chemical products, tobacco and tobacco products, pharmaceuticals, medical and orthopaedic goods; weapons, munitions and military equipment; petroleum and petroleum products, gas, precious metals, precious stones.

DE: Only natural persons are permitted to provide retail services of pharmaceuticals and specific medical goods to the public. Residency is required in order to obtain a licence as a pharmacist and/or to open a pharmacy for the retail of pharmaceuticals and certain medical goods to the public. Nationals of other countries or persons who have not passed the German pharmacy exam may only obtain a licence to take over a pharmacy which has already existed during the preceding three years.

HR: No national treatment and most favoured nation treatment obligations with respect to distribution of tobacco products.

6.   Environmental services

EU: No national treatment and most favoured nation treatment obligations in respect of the provision of services relating to the collection, purification and distribution of water to household, industrial, commercial or other users, including the provision of drinking water, and water management.

7.   Financial services ( 49 )

EU: Only firms having their registered office in the EU can act as depositories of the assets of investment funds. The establishment of a specialised management company, having its head office and registered office in the same Member State, is required to perform the activities of management of unit trusts and investment companies.

AT: The licence for a branch office of foreign insurers shall be denied if the foreign insurer does not have a legal form corresponding or comparable to a joint stock company or a mutual insurance association. The management of a branch office must consist of two natural persons resident in Austria.

BG: Pension insurance shall be implemented through participation in incorporated pension insurance companies. Permanent residence in Bulgaria is required for the chairperson of the management board and the chairperson of the board of directors. Before establishing a branch or agency to provide certain classes of insurance, a foreign insurer must have been authorised to operate in the same classes of insurance in its country of origin.

CY: Only members (brokers) of the Cyprus Stock Exchange can undertake business pertaining to securities brokerage in Cyprus. A brokerage firm may only be registered as a member of the Cyprus Stock Exchange if it has been established and registered in accordance with the Companies Law of Cyprus (no branches).

EL: The right of establishment does not cover the creation of representative offices or other permanent presence of insurance companies, except where such offices are established as agencies, branches or head offices.

ES: Before establishing a branch or agency to provide certain classes of insurance, a foreign insurer must have been authorised to operate in the same classes of insurance in its country of origin.

HU: Branches of foreign institutions are not allowed to provide asset management services for private pension funds or management of venture capital. The board of a financial institution should include at least two members, who are Hungarian citizens, residents in the meaning of the relevant foreign exchange regulations and have permanent residency in Hungary for at least one year.

IE: In the case of collective investment schemes constituted as unit trusts and variable capital companies (other than undertakings for collective investment in transferable securities, UCITS) the trustee/depository and management company is required to be incorporated in Ireland or in another Member State (no branches). In the case of an investment limited partnership, at least one general partner must be incorporated in Ireland. To become a member of a stock exchange in Ireland, an entity must either:

PT: Pension fund management may be provided only by specialized companies incorporated in Portugal for that purpose and by insurance companies established in Portugal and authorised to take up the life insurance business or by entities authorised to pension fund management in other Member States.

In order to establish a branch in Portugal, foreign insurance companies need to demonstrate prior operational experience of at least five years. Direct branching is not permitted for insurance intermediation, which is reserved to companies formed in accordance with the law of a Member State.

FI: For insurance companies providing statutory pension insurance: at least one half of the promoters and members of the board of directors and the supervisory board shall have their place of residence in the EU, unless the competent authorities have granted an exemption.

Other insurance companies than those providing statutory pension insurance: residency requirement for at least one member of the board of directors and supervisory board and the managing director.

The general agent of a Georgian insurance company must have his place of residence in Finland, unless the company has its head office in the EU.

Foreign insurers cannot get a licence in Finland as a branch to carry on statutory pension insurance.

For banking services: residency requirement for at least one of the founders, one member of the board of directors and supervisory board, the managing director and the person entitled to sign in the name of a credit institution.

IT: In order to be authorised to manage the securities settlement system with an establishment in Italy, a company is required to be incorporated in Italy (no branches). In order to be authorised to manage central securities depository services with an establishment in Italy, companies are required to be incorporated in Italy (no branches). In the case of collective investment schemes other than UCITS harmonised with the legislation of the EU, the trustee/depository is required to be incorporated in Italy or in another Member State and established through a branch in Italy. Management companies of ►C1  UCITS not harmonised under the legislation of the EU are also required to be incorporated in Italy (no branches). Only banks, insurance companies, investment firms, and companies managing UCITS harmonised under the legislation of ◄ the EU, having their legal head office in the EU, as well as UCITS incorporated in Italy may carry out activity of pension fund resources management. In providing the activity of door-to-door selling, intermediaries must utilise authorised financial salesmen listed in the Italian register. Representative offices of foreign intermediaries cannot carry out activities aimed at providing investment services.

LT: For the purpose of asset management, incorporation as a specialized management company (no branches) is required.

Only firms having their registered office or branch in Lithuania can act as depositories of pension funds.

Only banks having their registered office or branch in Lithuania and authorised to provide investment services in a Member State or in an EEA State may act as the depositaries of the assets of pension funds.

PL: Local incorporation (no branches) required for insurance intermediaries.

SK: Foreign nationals may establish an insurance company in the form of a joint stock company or may conduct insurance business through their subsidiaries with registered office in Slovakia (no branches).

Investment services in Slovakia can be provided by banks, investment companies, investment funds and security dealers which have a legal form of joint-stock company with equity capital according to the law (no branches).

SE: Insurance broking undertakings not incorporated in Sweden may be established only though a branch. A founder of a savings bank shall be a natural person resident in the EU.

8.   Health, Social and Education services

EU: No national treatment and most favoured nation treatment obligations with respect to publicly funded health, social and education services.

EU: No national treatment and most favoured nation treatment obligations with respect to privately funded other human health services.

EU: With respect to privately funded education services, nationality conditions may apply for majority of members of the Board.

EU (except for NL, SE and SK): No national treatment and most favoured nation treatment obligations with respect to the provision of privately funded other education services, which means other than those classified as being primary, secondary, higher and adult education services.

BE, CY, CZ, DK, FR, DE, EL, HU, IT, ES, PT and UK: No national treatment and most favoured nation treatment obligations with respect to the provision of privately funded social services other than services relating to Convalescent and Rest Houses and Old People's Homes.

FI: No national treatment and most favoured nation treatment obligations with respect to privately funded health and social services.

BG: Foreign high schools cannot open their divisions on the territory of Bulgaria. Foreign high schools can open faculties, departments, institutes and colleges in Bulgaria only within the structure of the Bulgarian high schools and in cooperation with them.

EL: With respect to higher education services, no national or most favoured nation treatment obligations for establishment of education institutions granting recognised State diplomas. EU nationality condition for owners and majority of members of the Board, teachers in privately founded primary and secondary schools.

HR: No national treatment and most favorable nation treatment obligations with respect to primary education.

SE: reserves the right to adopt and maintain any measure with respect to educational services suppliers that are approved by public authorities to provide education. This reservation applies to publicly funded and privately funded educational services suppliers with some form of State support, inter alia educational service suppliers recognised by the State, educational services suppliers under State supervision or education which entitles to study support.

UK: No national treatment and most favoured nation treatment obligations with respect to the provision of privately-funded ambulance services or privately-funded residential health services other than hospital services.

9.   Tourism and travel related services

BG, CY, EL, ES and FR: Nationality condition for tourist guides.

BG: For hotel, restaurant and catering services (excluding catering in air transport services) incorporation is required (no branching).

IT: Tourist guides from non-EU countries need to obtain a specific licence.

10.   Recreational cultural and sporting services

News and Press Agencies Services

FR: Foreign participation in existing companies publishing publications in French language may not exceed 20 % of the capital or of the voting rights in the company. With respect to press agencies, national treatment for the establishment of juridical persons is subject to reciprocity.

Sporting and other recreational services

EU: No national treatment and most favoured nation treatment obligations with respect to gambling and betting services. For legal certainty it is clarified that no market access is granted.

AT: With respect to ski schools and mountain guide services, management directors of juridical persons have to be citizens of the EEA.

Libraries, archives, museums and other cultural services

BE, FR, HR and IT: No national treatment and most favoured nation treatment with respect to libraries, archives, museum and other cultural services.

11.   Transport

Maritime transport

EU: No national treatment and most favoured treatment obligations for the establishment of a registered company for the purpose of operating a fleet under the national flag of the State of establishment.

FI: For services auxiliary to maritime transport, services can be provided only by ships operating under the Finnish flag.

HR: For services auxiliary to maritime transport foreign juridical person is required to establish a company in Croatia which should be granted a concession by the port authority, following a public tendering procedure. The number of service suppliers may be limited reflecting limitations in port capacity.

Internal Waterways Transport ( 50 )

EU: No national treatment and most favoured nation treatment obligations with respect to national cabotage transport. Measures based upon existing or future agreements on access to inland waterways (incl. agreements following the Rhine-Main-Danube link) reserve some traffic rights for operators based in the countries concerned and meeting nationality criteria regarding ownership. Subject to regulations implementing the Mannheim Convention on Rhine Shipping.

AT and HU: No national treatment and most favoured nation treatment obligations for the establishment of a registered company for the purpose of operating a fleet under the national flag of the State of establishment.

AT: With respect to internal waterways a concession is only granted to EEA juridical persons and more than 50 % of the capital share, the voting rights and the majority in the governing boards are reserved to citizens of the EEA.

HR: No national treatment and most favoured nation treatment obligations for internal waterways transport.

Air transport services

EU: The conditions of mutual market access in air transport shall be dealt with by the Common Aviation Area Agreement between the European Union and its Member States, of the one part, and Georgia, of the other part.

EU: Aircraft used by an air carrier of the EU have to be registered in the Member State licensing the carrier or elsewhere in the EU. With respect to rental of aircraft with crew, aircraft must be owned either by natural persons meeting specific nationality criteria or by juridical persons meeting specific criteria regarding ownership of capital and control. Aircraft must be operated by air carriers owned either by natural persons meeting specific nationality criteria or by juridical persons meeting specific criteria regarding ownership of capital and control.

EU: With respect to computer reservation systems (CRS) services, where air carriers of the EU are not accorded equivalent treatment ( 51 ) to that provided in the EU by CRS services suppliers outside the EU, or where CRS services suppliers of the EU are not accorded equivalent treatment to that provided in the EU by non-EU air carriers, measures may be taken to accord equivalent treatment, respectively, to the non-EU air carriers by the CRS services suppliers in the EU, or to the non-EU CRS services suppliers by the air carriers in the EU.

Rail transport

HR: No national treatment and most favoured nation treatment obligations for passenger and freight transportation and for pushing and towing services.

Road transport

EU: Incorporation (no branches) is required for cabotage operations. Residency is required for the transport manager.

AT: For passenger and freight transportation, exclusive rights and/or authorisations may only be granted to nationals of the Member States of the EU and to juridical persons of the EU having their headquarters in the EU.

BG: For passenger and freight transportation, exclusive rights and/or authorisations may only be granted to nationals of the Member States of the EU and to juridical persons of the EU having their headquarters in the EU. Incorporation is required. Condition of EU nationality for natural persons.

EL: In order to engage in the occupation of road freight transport operator a Hellenic licence is needed. Licences are granted on non–discriminatory terms. Road freight transport operations established in Greece may only use vehicles that are registered in Greece.

FI: Authorisation is required to provide road transport services, which is not extended to foreign registered vehicles.

FR: Foreign entrepreneurs are not allowed to provide intercity bussing services.

LV: For passenger and freight transportation services, an authorisation is required, which is not extended to foreign registered vehicles. Established entities are required to use nationally registered vehicles.

RO: In order to obtain a licence, road haulage and road passenger transport operators may only use vehicles that are registered in Romania, owned and used according to the Government Ordinance provisions.

SE: In order to engage in the occupation of road transport operator, a Swedish licence is needed. Criteria for receiving a taxi licence include that the company has appointed a natural person to act as the transport manager (a de facto residency requirement – see the Swedish reservation on types of establishment). Criteria for receiving a licence for other road transport operators require that the company is established in the EU, has an establishment situated in Sweden and has appointed a natural person to act as the transport manager, who must be resident in the EU. Licences are granted on non-discriminatory terms, except that operators of road haulage and road passenger transport services may as a general rule only use vehicles that are registered in the national road traffic registry. If a vehicle is registered abroad, owned by a natural or juridical person whose principal residence is abroad and is brought to Sweden for temporary use, the vehicle may be temporarily used in Sweden. Temporary use is usually defined by the Swedish Transport Agency as meaning not more than one year.

14.   Energy services

EU: No national treatment and most favoured treatment obligations with respect to juridical persons of Georgia controlled ( 52 ) by natural or juridical persons of a country which accounts for more than 5 % of the EU's oil or natural gas imports ( 53 ), unless the EU provides comprehensive access to this sector to natural or juridical persons of this country, in the context of an economic integration agreement concluded with that country.

EU: No national treatment and most favoured nation treatment obligations for nuclear-based electricity generation and with respect to processing of nuclear fuel.

EU: Certification of a transmission system operator which is controlled by a natural or juridical person or persons from a third country or third countries may be refused where the operator has not demonstrated that granting certification will not put at risk the security of energy supply in a Member State and/or the EU, in accordance with Article 11 of Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and Article 11 of Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas.

AT, BE, BG, CY, CZ, DE, DK, ES, EE, FI, FR, EL, IE, IT, LV, LU, MT, NL, PL, PT, RO, SK, SI, SE and UK: No national treatment and most favoured nation treatment obligations with respect to pipeline transportation of fuels services, other than consultancy services.

BE and LV: No national treatment and most favoured nation treatment obligations with respect to pipeline transportation of natural gas, other than consultancy services.

AT, BE, BG, CY, CZ, DE, DK, ES, EE, FI, FR, EL, IE, HU, IT, LU, LT, MT, NL, PL, PT, RO, SK, SE and UK: No national treatment and most favoured nation treatment obligations with respect to services incidental to energy distribution, other than consultancy services.

SI: No national treatment and most favoured nation treatment obligations with respect to services incidental to energy distribution, other than services incidental to the distribution of gas.

CY: Reserves the right to require reciprocity for licensing in relation to the activities of prospecting, exploration and exploitation of hydrocarbons.

15.   Other services not included elsewhere

PT: No national treatment and most favoured nation treatment obligations with respect to services related to the sale of equipment or to the assignment of a patent.

SE: No national treatment and most favoured nation treatment obligations with respect to funeral, cremation and undertaking services.

ANNEX XIV-B

LIST OF COMMITMENTS ON CROSS-BORDER SUPPLY OF SERVICES (UNION)

When the column referred to under point (b) only includes Member State-specific reservations, Member States not mentioned therein undertake commitments in the sector concerned without reservations (the absence of Member State-specific reservations in a given sector is without prejudice to horizontal reservations or to sectoral Union-broad reservations that may apply).

Sectors or sub-sectors not mentioned in the list below are not committed.

ANNEX XIV-C

LIST OF RESERVATIONS ON KEY PERSONNEL, GRADUATE TRAINEES AND BUSINESS SELLERS (UNION)

When the column referred to under (b) includes only Member State-specific reservations, Member States not mentioned therein undertake commitments in the sector concerned without reservations (the absence of Member State-specific reservations in a given sector is without prejudice to horizontal reservations or to sectoral Union-broad reservations that may apply).

The Union does not undertake any commitment for key personnel, graduate trainees and business sellers in economic activities which are not liberalised (remain unbound) pursuant to Sections 2 and 3 of Chapter 6 (Establishment, Trade in Services and Electronic Commerce) of Title IV (Trade and Trade-related Matters) of this Agreement.

ANNEX XIV-D

LIST OF RESERVATIONS ON CONTRACTUAL SERVICES SUPPLIERS AND INDEPENDENT PROFESSIONALS (UNION)

The Union does not undertake any commitment for contractual service suppliers and independent professionals for any sector of economic activity other than those which are explicitly listed below.

The Parties shall allow the supply of services into their territory by contractual services suppliers of the other Party through presence of natural persons, subject to the conditions specified in Article 91 of this Agreement, in the following sub-sectors:

The Parties shall allow the supply of services into their territory by independent professionals of the other Party through presence of natural persons, subject to the conditions specified in Article 92 of this Agreement, in the following sub-sectors:

ANNEX XIV-E

LIST OF RESERVATIONS ON ESTABLISHMENT (GEORGIA) ( 54 )

The list is composed of the following elements:

A reservation corresponding to an activity which is not liberalised (Unbound) is expressed as follows: ‘No national treatment and most favoured nation treatment obligations’.

In the sectors, where reservation is not made by Georgia, country undertakes obligations of Article 79(1) of this Agreement without reservations (the absence of reservation in a given sector is without prejudice to horizontal reservations).

Horizontal Reservations

Subsidies

Eligibility for subsidies may be limited to persons established in a particular geographical sub-division of Georgia.

Privatization

An organization, in which the Government's share exceeds 25 %, has no right to participate as a buyer in privatization process (market access limitation).

At least one manager of a ‘corporation with limited liability’ must have his domicile in Georgia. The establishment of a branch requires a representative (natural person) with domicile in Georgia who is duly authorised by the company to fully represent it.

Real estate purchase

Unbound except for the following:

Sector Reservations

Fishing

No market access, national treatment and most favoured nation treatment obligations with respect to fishing. Access to Georgian waters for fish catches is granted on the basis of reciprocity.

Business Services

Communication Services

Construction and Related Engineering Services

Not less than 50 % of the entire staff must be Georgian citizens.

Distribution Services

No national treatment and most favoured nation treatment obligations with respect to other distribution services (4,E)*.

Educational Services

Financial Services

Health related and Social Services

Tourism and Travel related Services

No national treatment and most favoured nation treatment obligations with respect to other tourism and travel related services (9,D)*.

Recreational, Cultural and Sporting Services

No national treatment and most favoured nation treatment obligations with respect to other recreational, cultural and sporting services (10,E)*.

Transport Services

ANNEX XIV-F

LIST OF COMMITMENTS ON CROSS-BORDER SUPPLY OF SERVICES (GEORGIA) ( 56 )

Sectors or sub-sectors not mentioned in the list below are not committed.

Horizontal reservations

Unbound for subsidies

Sector reservations

ANNEX XIV-G

LIST OF RESERVATIONS ON KEY PERSONNEL, GRADUATE TRAINEES AND BUSINESS SELLERS ( 57 )(GEORGIA)

Georgia does not undertake any commitment for key personnel, graduate trainees and business sellers in economic activities which are not liberalised (remain unbound) pursuant to Sections 2 and 3 Chapter 6 (Establishment, Trade in Services and Electronic Commerce) of Title IV (Trade and Trade-related Matters) of this Agreement.

ANNEX XIV-H

LIST OF RESERVATIONS ON CONTRACTUAL SERVICES SUPPLIERS AND INDEPENDENT PROFESSIONALS ( 58 )(GEORGIA)

Georgia does not undertake any commitment for contractual service suppliers and independent professionals for any sector of economic activity other than those which are explicitly listed in this Annex.

ANNEX XV

APPROXIMATION

ANNEX XV-A

RULES APPLICABLE TO FINANCIAL SERVICES

Georgia undertakes to gradually approximate its legislation to the following EU legislation within the stipulated timeframes:

A.   BANKING

Directive 2007/44/EC of the European Parliament and of the Council of 5 September 2007 amending Council Directive 92/49/EEC and Directives 2002/83/EC, 2004/39/EC, 2005/68/EC and 2006/48/EC as regards procedural rules and evaluation criteria for the prudential assessment of acquisitions and increase of holdings in the financial sector

Timetable: the provisions of Directive 2007/44/EC shall be implemented within six years of the entry into force of this Agreement.

Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions ( 59 )

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Directive 2006/49/EC of the European Parliament and of the Council of 14 June 2006 on the capital adequacy of investment firms and credit institutions ( 60 )

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994 on deposit-guarantee schemes

Timetable: that Directive's provisions shall be implemented within six years of the entry into force of this Agreement. However, Georgia may consider different levels of thresholds than the ones outlined in that Directive and will submit a proposal to the Association Council taking into account the developments of local market in Georgia, no later than five years after the entry into force of this Agreement.

Council Directive 86/635/EEC of 8 December 1986 on the annual accounts and consolidated accounts of banks and other financial institutions

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Directive 2001/65/EC of the European Parliament and of the Council of 27 September 2001 amending Directives 78/660/EEC, 83/349/EEC and 86/635/EEC as regards the valuation rules for the annual and consolidated accounts of certain types of companies as well as of banks and other financial institutions

Timetable: the provisions of Directive 2001/65/EC shall be implemented within four years of the entry into force of this Agreement.

Directive 2003/51/EC of the European Parliament and of the Council of 18 June 2003 amending Directives 78/660/EEC, 83/349/EEC, 86/635/EEC and 91/674/EEC on the annual and consolidated accounts of certain types of companies, banks and other financial institutions and insurance undertakings

Timetable: the provisions of Directive 2003/51/EC shall be implemented within four years of the entry into force of this Agreement.

Directive 2006/46/EC of the European Parliament and of the Council of 14 June 2006 amending Council Directives 78/660/EEC on the annual accounts of certain types of companies, 83/349/EEC on consolidated accounts, 86/635/EEC on the annual accounts and consolidated accounts of banks and other financial institutions and 91/674/EEC on the annual accounts and consolidated accounts of insurance undertakings

Timetable: the provisions of Directive 2006/46/EC shall be implemented within four years of the entry into force of this Agreement.

Directive 2001/24/EC of the European Parliament and of the Council of 4 April 2001 on the reorganisation and winding up of credit institutions

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

B.   INSURANCE

Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II)

Timetable: that Directive's provisions shall be implemented within six years of the entry into force of this Agreement.

Council Directive 91/674/EEC of 19 December 1991 on the annual accounts and consolidated accounts of insurance undertakings

Timetable: that Directive's provisions, excluding Article 33, shall be implemented within six years of the entry into force of this Agreement. The proposal regarding the implementation of Article 33 of that Directive shall be submitted to the Association Council, no later than five years after the entry into force of this Agreement.

Commission Recommendation of 18 December 1991 on insurance intermediaries (92/48/EEC)

Timetable: not applicable

Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on insurance mediation

Timetable: that Directive's provisions shall be implemented within eight years of the entry into force of this Agreement.

Directive 2009/103/EC of the European Parliament and of the Council of 16 September 2009 relating to insurance against civil liability in respect of the use of motor vehicles, and the enforcement of the obligation to insure against such liability

Timetable: the proposal regarding the implementation of that Directive shall be submitted to the Association Council taking into account the development of local market in Georgia, no later than five years after the entry into force of this Agreement.

Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision

Timetable: that Directive's provisions shall be implemented within seven years of the entry into force of this Agreement.

C.   SECURITIES

Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Commission Directive 2006/73/EC of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive

Timetable: that Directive's provisions shall be implemented within seven years of the entry into force of this Agreement.

Commission Regulation (EC) No 1287/2006 of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards record-keeping obligations for investment firms, transaction reporting, market transparency, admission of financial instruments to trading, and defined terms for the purposes of that Directive

Timetable: that Regulation's provisions shall be implemented within seven years of the entry into force of this Agreement.

Directive 2003/71/EC of the European Parliament and of the Council of 4 November 2003 on the prospectus to be published when securities are offered to the public or admitted to trading and amending Directive 2001/34/EC

Timetable: that Directive's provisions shall be implemented within seven years of the entry into force of this Agreement.

Commission Regulation (EC) No 809/2004 of 29 April 2004 implementing Directive 2003/71/EC of the European Parliament and of the Council as regards information contained in prospectuses as well as the format, incorporation by reference and publication of such prospectuses and dissemination of advertisements

Timetable: that Regulation's provisions shall be implemented within seven years of the entry into force of this Agreement.

Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC

Timetable: that Directive's provisions shall be implemented within seven years of the entry into force of this Agreement.

Commission Directive 2007/14/EC of 8 March 2007 laying down detailed rules for the implementation of certain provisions of Directive 2004/109/EC on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market

Timetable: the provisions of Directive 2007/14/EC shall be implemented within seven years of the entry into force of this Agreement.

Directive 97/9/EC of the European Parliament and of the Council of 3 March 1997 on investor-compensation schemes

Timetable: that Directive's provisions shall be implemented within six years of the entry into force of this Agreement. However, Georgia may consider different levels of thresholds for the investor compensation schemes and will submit a proposal to the Association Council taking into account the development of local market in Georgia, no later than five years after the entry into force of this Agreement.

Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003 on insider dealing and market manipulation (market abuse)

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Commission Directive 2004/72/EC of 29 April 2004 implementing Directive 2003/6/EC of the European Parliament and of the Council as regards accepted market practices, the definition of inside information in relation to derivatives on commodities, the drawing up of lists of insiders, the notification of managers' transactions and the notification of suspicious transactions

Timetable: the provisions of Directive 2004/72/EC shall be implemented within seven years of the entry into force of this Agreement.

Commission Directive 2003/124/EC of 22 December 2003 implementing Directive 2003/6/EC of the European Parliament and of the Council as regards the definition and public disclosure of inside information and the definition of market manipulation

Timetable: the provisions of Directive 2003/124/EC shall be implemented within seven years of the entry into force of this Agreement.

Commission Directive 2003/125/EC of 22 December 2003 implementing Directive 2003/6/EC of the European Parliament and of the Council as regards the fair presentation of investment recommendations and the disclosure of conflicts of interest

Timetable: the provisions of Directive 2003/125/EC shall be implemented within seven years of the entry into force of this Agreement.

Commission Regulation (EC) No 2273/2003 of 22 December 2003 implementing Directive 2003/6/EC of the European Parliament and of the Council as regards exemptions for buy-back programmes and stabilisation of financial instruments

Timetable: that Regulation's provisions shall be implemented within seven years of the entry into force of this Agreement.

Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies

Timetable: that Regulation's provisions shall be implemented within seven years of the entry into force of this Agreement.

D.   UCITS

Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS)

Timetable: that Directive's provisions shall be implemented within six years of the entry into force of this Agreement.

Commission Directive 2007/16/EC of 19 March 2007 implementing Council Directive 85/611/EEC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) as regards the clarification of certain definitions

Timetable: the provisions of Directive 2007/16/EC shall be implemented within six years of the entry into force of this Agreement.

E.   MARKET INFRASTRUCTURE

Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Directive 2009/44/EC of the European Parliament and the Council of 6 May 2009 amending Directive 98/26/EC on settlement finality in payment and securities settlement systems and Directive 2002/47/EC on financial collateral arrangements as regards linked systems and credit claims

Timetable: the provisions of Directive 2009/44/EC shall be implemented within five years of the entry into force of this Agreement.

F.   PAYMENTS

Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market

Timetable: that Directive's provisions shall be implemented within six years of the entry into force of this Agreement.

Regulation (EC) No 924/2009/EC of the European Parliament and of the Council of 16 September 2009 on cross-border payments in the Community

Timetable: that Regulation's provisions shall be implemented within five years of the entry into force of this Agreement.

G.   ANTI MONEY LAUNDERING

Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing

Timetable: that Directive's provisions shall be implemented within two years of the entry into force of this Agreement.

Commission Directive 2006/70/EC of 1 August 2006 laying down implementing measures for Directive 2005/60/EC of the European Parliament and of the Council as regards the definition of politically exposed person and the technical criteria for simplified customer due diligence procedures and for exemption on grounds of a financial activity conducted on an occasional or very limited basis

Timetable: the provisions of Directive 2006/70/EC shall be implemented within two years of the entry into force of this Agreement.

Regulation (EC) No 1781/2006 of the European Parliament and of the Council of 15 November 2006 on information on the payer accompanying transfers of funds

Timetable: that Regulation's provisions shall be implemented within three years of the entry into force of this Agreement.

ANNEX XV-B

RULES APPLICABLE TO TELECOMMUNICATION SERVICES

Georgia undertakes to gradually approximate its legislation to the following EU legislation within the stipulated timeframes:

Directive 2002/21/EC of the European Parliament and of the Council of 7 March 2002 on a common regulatory framework for electronic communications networks and services (Framework Directive) as amended by Directive 2009/140/EC

The following provisions of Directive 2002/21/EC shall apply:

Timetable: those provisions of Directive 2002/21/EC shall be implemented within three years of the entry into force of this Agreement.

Directive 2002/20/EC of the European Parliament and of the Council of 7 March 2002 on the authorisation of electronic communications networks and services (Authorisation Directive) as amended by Directive 2009/140/EC

The following provisions of Directive 2002/20/EC shall apply:

Timetable: those provisions of Directive 2002/20/EC shall be implemented within three years of the entry into force of this Agreement.

Directive 2002/19/EC of the European Parliament and of the Council of 7 March 2002 on access to, and interconnection of, electronic communications networks and associated facilities (Access Directive) as amended by Directive 2009/140/EC

Based on the market analysis carried out in accordance with Directive 2002/21/EC the National regulator in the field of electronic communications shall impose on operators found to have significant market power (SMP) on the relevant markets, appropriate regulatory obligations with regard to:

Timetable: those provisions of Directive 2002/19/EC shall be implemented within three years of the entry into force of this Agreement.

Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002 on universal service and users' rights relating to electronic communications networks and services (Universal Service Directive) as amended by Directive 2009/136/EC

The following provisions of Directive 2002/22/EC shall apply:

Timetable: those provisions of Directive 2002/22/EC shall be implemented within five years of the entry into force of this Agreement.

▼C1

Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector (Directive on privacy and electronic communications) as amended by Directive 2009/136/EC

▼B

The following provisions of Directive 2002/58/EC shall apply:

Timetable: those provisions of Directive 2002/58/EC shall be implemented within three years of the entry into force of this Agreement.

Decision 676/2002/EC of the European Parliament and of the Council of 7 March 2002 on a regulatory framework for radio spectrum policy in the European Community

Timetable: the measures resulting from the operation of that Decision shall be implemented within three years of the entry into force of this Agreement.

ANNEX XV-C

RULES APPLICABLE TO POSTAL AND COURIER SERVICES

Georgia undertakes to gradually approximate its legislation to the following EU legislation within the stipulated timeframes:

Directive 97/67/EC of the European Parliament and of the Council of 15 December 1997 on common rules for the development of the internal market of Community postal services and the improvement of quality of service

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Directive 2002/39/EC of the European Parliament and of the Council of 10 June 2002 amending Directive 97/67/EC with regard to the further opening to competition of Community postal services

Timetable: the provisions of Directive 2002/39/EC shall be implemented within five years of the entry into force of this Agreement.

Directive 2008/6/EC of the European Parliament and of the Council of 20 February 2008 amending Directive 97/67/EC with regard to the full accomplishment of the internal market of Community postal services

Timetable: the provisions of Directive 2008/6/EC shall be implemented within five years of the entry into force of this Agreement.

ANNEX XV-D

RULES APPLICABLE TO INTERNATIONAL MARITIME TRANSPORT

Georgia undertakes to gradually approximate its legislation to the following EU legislation and international instruments within the stipulated timeframes:

Maritime safety- flag state / classification societies

Directive 2009/15/EC of the European Parliament and of the Council of 23 April 2009 on common rules and standards for ship inspection and survey organisations and for the relevant activities of maritime administrations

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Regulation (EC) No 391/2009 of the European Parliament and of the Council of 23 April 2009 on common rules and standards for ship inspection and survey organisations

Timetable: that Regulation's provisions shall be implemented within four years of the entry into force of this Agreement.

Flag State

Directive 2009/21/EC of the European Parliament and of the Council of 23 April 2009 on compliance with flag State requirements

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Port State Control

Directive 2009/16/EC of the European Parliament and of the Council of 23 April 2009 on port State control ( 61 )

The provisions of that Directive shall apply with the exception of:

Timetable: that Directive's provisions, with the exception of the list above, shall be implemented within five years of the entry into force of this Agreement.

Vessel Traffic Monitoring

Directive 2002/59/EC of the European Parliament and of the Council of 27 June 2002 establishing a Community vessel traffic monitoring and information system

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Accident Investigation

Directive 2009/18/EC of the European Parliament and of the Council of 23 April 2009 establishing the fundamental principles governing the investigation of accidents in the maritime transport sector

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Liability of carriers of passengers

Regulation (EC) No 392/2009 of the European Parliament and of the Council of 23 April 2009 on the liability of carriers of passengers by sea in the event of accidents

Timetable: that Regulation's provisions shall be implemented within four years of the entry into force of this Agreement.

Regulation (EC) No 336/2006 of the European Parliament and of the Council of 15 February 2006 on the implementation of the International Safety Management Code within the Community

Timetable: that Regulation's provisions shall be implemented within three years of the entry into force of this Agreement.

Technical and operational rules

Passenger ships

Directive 2009/45/EC of the European Parliament and of the Council of 6 May 2009 on safety rules and standards for passenger ships

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Council Directive 1999/35/EC of 29 April 1999 on a system of mandatory surveys for the safe operation of regular ro-ro ferry and high-speed passenger craft services

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Directive 2003/25/EC of the European Parliament and of the Council of 14 April 2003 on specific stability requirements for ro-ro passenger ships

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Oil tankers

Regulation (EC) No 417/2002 of the European Parliament and of the Council of 18 February 2002 on the accelerated phasing-in of double hull or equivalent design requirements for single hull oil tankers

The timetable of phasing-out single hull tankers will follow the schedule as specified in the MARPOL Convention.

Bulk carriers

Directive 2001/96/EC of the European Parliament and of the Council of 4 December 2001 establishing harmonised requirements and procedures for the safe loading and unloading of bulk carriers

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Crew

Directive 2008/106/EC of the European Parliament and of the Council of 19 November 2008 on the minimum level of training of seafarers

Timetable: that Directive's provisions shall be implemented within three years of the entry into force of this Agreement.

Environment

Directive 2000/59/EC of the European Parliament and of the Council of 27 November 2000 on port reception facilities for ship-generated waste and cargo residues

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Regulation (EC) No 782/2003 of the European Parliament and of the Council of 14 April 2003 on the prohibition of organotin compounds on ships

Timetable: that Regulation's provisions shall be implemented within four years of the entry into force of this Agreement.

Technical conditions

Directive 2010/65/EU of the European Parliament and of the Council of 20 October 2010 on reporting formalities for ships arriving in and/or departing from ports of the Member States

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Social conditions

Council Directive 92/29/EEC of 31 March 1992 on the minimum safety and health requirements for improved medical treatment on board vessels

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Council Directive 1999/63/EC of 21 June 1999 concerning the Agreement on the organisation of working time of seafarers concluded by the European Community Shipowners' Association (ECSA) and the Federation of Transport Workers' Unions in the European Union (FST) – Annex: European Agreement on the organisation of working time of seafarers

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Directive 1999/95/EC of the European Parliament and of the Council of 13 December 1999 concerning the enforcement of provisions in respect of seafarers' hours of work on board ships calling at Community ports

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Maritime security

Directive 2005/65/EC of the European Parliament and of the Council of 26 October 2005 on enhancing port security

Timetable: that Directive's provisions (except those concerning Commission inspections) shall be implemented within four years of the entry into force of this Agreement.

Regulation (EC) No 725/2004 of the European Parliament and of the Council of 31 March 2004 on enhancing ship and port facility security

Timetable: that Regulation's provisions (except those concerning Commission inspections) shall be implemented within four years of the entry into force of this Agreement.

ANNEX XVI

PUBLIC PROCUREMENT

ANNEX XVI-A

THRESHOLDS

ANNEX XVI-B

INDICATIVE TIME SCHEDULE FOR INSTITUTIONAL REFORM, APPROXIMATION AND MARKET ACCESS

ANNEX XVI-C

BASIC ELEMENTS OF DIRECTIVE 2004/18/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ( 62 )

(PHASE 2)

TITLE I

Definitions and general principles

Article 1 Definitions (paragraphs 1, 2, 8, 9, 11(a), 11(b) and 11(d), 12, 13, 14 and 15)

Article 2 Principles of awarding contracts

Article 3 Granting of special or exclusive rights: non-discrimination clause

TITLE II

Rules on public contracts

CHAPTER I

General provisions

Article 4 Economic operators

Article 6 Confidentiality

CHAPTER II

Scope

Section 1 — Thresholds

Article 8 Contracts subsidised by more than 50 % by contracting authorities

Article 9 Methods for calculating the estimated value of public contracts, framework agreements and dynamic purchasing systems

Section 2 — Specific situations

Article 10 Defence procurement

Section 3 — Excluded contracts

Article 12 Contracts in the water, energy, transport and postal services sectors (only when basic rules of Directive 2004/17/EC have been approximated)

Article 13 Specific exclusions in the field of telecommunications

Article 14 Secret contracts and contracts requiring special security measures

Article 15 Contracts awarded pursuant to international rules

Article 16 Specific exclusions

Article 18 Service contracts awarded on the basis of an exclusive right

Section 4 — Special arrangement

Article 19 Reserved contracts

CHAPTER III

Arrangements for public service contracts

Article 20 Service contracts listed in Annex II A

Article 21 Service contracts listed in Annex II B

Article 22 Mixed contracts including services listed in Annex II A and services listed in Annex II B

CHAPTER IV

Specific rules governing specifications and contract documents

Article 23 Technical specifications

Article 24 Variants

Article 25 Subcontracting

Article 26 Conditions for performance of contracts

Article 27 Obligations relating to taxes, environmental protection, employment protection provisions and working conditions

CHAPTER V

Procedures

Article 28 Use of open, restricted and negotiated procedures and of competitive dialogue

Article 30 Cases justifying use of the negotiated procedure with prior publication of a contract notice

Article 31 Cases justifying use of the negotiated procedure without publication of a contract notice

CHAPTER VI

Rules on advertising and transparency

Section 1 — Publication of notices

Article 35 Notices: paragraph 1 mutatis mutandis; paragraph 2; first, third and fourth subparagraph of paragraph 4

Article 36 Form and manner of publication of notices: paragraph 1; paragraph 7

Section 2 — Time-limits

Article 38 Time-limits for receipt of requests to participate and for receipt of tenders

Article 39 Open procedures: specifications, additional documents and information

Section 3 — Information content and means of transmission

Article 40 Invitations to submit a tender, participate in the dialogue or negotiate

Article 41 Informing candidates and tenderers

Section 4 — Communication

Article 42 Rules applicable to communication

CHAPTER VII

Conduct of the procedure

Section 1 — General provisions

Article 44 Verification of the suitability and choice of participants and award of contracts

Section 2 — Criteria for qualitative selection

Article 45 Personal situation of the candidate or tenderer

Article 46 Suitability to pursue the professional activity

Article 47 Economic and financial standing

Article 48 Technical and/or professional ability

Article 49 Quality assurance standards

Article 50 Environmental management standards

Article 51 Additional documentation and information

Section 3 — Award of the contract

Article 53 Contract award criteria

Article 55 Abnormally low tenders

ANNEXES to Directive 2004/18/EC

Annex I List of the activities referred to in Article 1(2)(b)

Annex II Services referred to in Article 1(2)(d)

Annex II A

Annex II B

Annex V List of products referred to in Article 7 with regard to contracts awarded by contracting authorities in the field of defence

Annex VI Definition of certain technical specifications

Annex VII Information to be included in notices

Annex VII A Information to be included in public contract notices

Annex X Requirements relating to equipment for the electronic receipt of tenders, requests to participate and plans and projects in design contests

ANNEX XVI-D

BASIC ELEMENTS OF COUNCIL DIRECTIVE 89/665/EEC ( 63 )AS AMENDED BY DIRECTIVE 2007/66/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ( 64 )

(PHASE 2)

Article 1

Scope and availability of review procedures

Article 2

Requirements for review procedures

Article 2a

Standstill period

Article 2b

Derogations from the standstill period Point (b) of the first paragraph of Article 2b

Article 2c

Time-limits for applying for review

Article 2d

Ineffectiveness Paragraph 1(b) Paragraph 2 and 3

Article 2e

Infringements of this Directive and alternative penalties

Article 2f

Time-limits

ANNEX XVI-E

BASIC ELEMENTS OF DIRECTIVE 2004/17/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ( 65 )

(PHASE 3)

TITLE I

General provisions applicable to contracts and design contests

CHAPTER I

Basic terms

Article 1 Definitions (paragraphs 2, 7, 9, 11, 12 and 13)

CHAPTER II

Definition of the activities and entities covered

Section 1 - Entities

Article 2 Contracting entities

Section 2 - Activities

Article 3 Gas, heat and electricity

Article 4 Water

Article 5 Transport services

Article 6 Postal services

Article 7 Exploration for, or extraction of, oil, gas, coal or other solid fuels, as well as ports and airports

Article 9 Contracts covering several activities

CHAPTER III

General principles

Article 10 Principles of awarding contracts

TITLE II

Rules applicable to contracts

CHAPTER I

General provisions

Article 11 Economic operators

Article 13 Confidentiality

CHAPTER II

Thresholds and exclusion provisions

Section 1 - Thresholds

Article 16 Contract thresholds

Article 17 Methods of calculating the estimated value of contracts, framework agreements and dynamic purchasing systems

Section 2 - Contracts and concessions and contracts subject to special arrangements

Subsection 2 - Exclusions applicable to all contracting entities and to all types of contract

Article 19 Contracts awarded for purposes of resale or lease to third parties

Article 20 Contracts awarded for purposes other than the pursuit of an activity covered or for the pursuit of such an activity in a third country: paragraph 1

Article 21 Contracts which are secret or require special security measures

Article 22 Contracts awarded pursuant to international rules

Article 23 Contracts awarded to an affiliated undertaking, to a joint venture or to a contracting entity forming part of a joint venture

Subsection 3 - Exclusions applicable to all contracting entities, but to service contracts only

Article 24 Contracts relating to certain services excluded from the scope of this Directive

Article 25 Service contracts awarded on the basis of an exclusive right

Subsection 4 - Exclusions applicable to certain contracting entities only

Article 26 Contracts awarded by certain contracting entities for the purchase of water and for the supply of energy or of fuels for the production of energy

CHAPTER III

Rules applicable to service contracts

Article 31 Service contracts listed in Annex XVII A

Article 32 Service contracts listed in Annex XVII B

Article 33 Mixed service contracts including services listed in Annex XVII A and services listed in Annex XVII B

CHAPTER IV

Specific rules governing specifications and contract documents

Article 34 Technical specifications

Article 35 Communication of technical specifications

Article 36 Variants

Article 37 Subcontracting

Article 39 Obligations relating to taxes, environmental protection, employment protection provisions and working conditions

CHAPTER V

Procedures

Article 40 Use of open, restricted and negotiated procedures (except points (i) and (l) of paragraph 3)

CHAPTER VI

Rules on publication and transparency

Section 1 - Publication of notices

Article 41 Periodic indicative notices and notices on the existence of a system of qualification

Article 42 Notices used as a means of calling for competition paragraphs 1 and 3

Article 43 Contract award notices (except for second and third subparagraphs of paragraph 1)

Article 44 Form and manner of publication of notices (except for the first subparagraph of paragraph 2 and paragraphs 4, 5 and 7)

Section 2 - Time limits

Article 45 Time-limits for the receipt of requests to participate and for the receipt of tenders

Article 46 Open procedures: specifications, additional documents and information

Article 47 Invitations to submit a tender or to negotiate

Section 3 - Communication and information

Article 48 Rules applicable to communication

Article 49 Information to applicants for qualification, candidates and tenderers

CHAPTER VII

Conduct of the procedure

Article 51 General provisions

Section 1 - Qualification and qualitative selection

Article 52 Mutual recognition concerning administrative, technical or financial conditions, and certificates, tests and evidence

Article 54 Criteria for qualitative selection

Section 2 - Award of the contract

Article 55 Contract award criteria

Article 57 Abnormally low tenders

ANNEXES to Directive 2004/17/EC

Annex XIII

Information to be included in contract notices: A. Open procedures B. Restricted procedures C. Negotiated procedures

Annex XIV

Information to be included in the notice on the existence of a system of qualification

Annex XV A

Information to be included in the periodic indicative notice

Annex XV B

Information to be included in notices of publication of a periodic notice on a buyer profile not used as a means of calling for competition

Annex XVI

Information to be included in the contract award notice

Annex XVII A

Services within the meaning of Article 31

Annex XVII B

Services within the meaning of Article 32

Annex XX

Features concerning publication

Annex XXI

Definition of certain technical specifications

Annex XXIII

International labour law provisions within the meaning of Article 59(4)

Annex XXIV

Requirements relating to equipment for the electronic receipt of tenders, requests to participate, applications for qualification as well as plans and projects

ANNEX XVI-F

BASIC ELEMENTS OF COUNCIL DIRECTIVE 92/13/EEC ( 66 )AS AMENDED BY DIRECTIVE 2007/66/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ( 67 )

(PHASE 3)

ANNEX XVI-G

OTHER NON-MANDATORY ELEMENTS OF DIRECTIVE 2004/18/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ( 68 )

(PHASE 4)

The elements of Directive 2004/18/EC set out in this Annex are not mandatory but recommended for approximation. Georgia may approximate those elements within the time-frame set in Annex XVI-B.

TITLE I

Definitions and general principles

Article 1 Definitions (paragraphs: 5, 6, 7, 10 and 11(c))

TITLE II

Rules on public contracts

CHAPTER II

Scope

Section 2 — Specific situations

Article 11 Public contracts and framework agreements awarded by central purchasing bodies

Section 4 — Special arrangement

Article 19 Reserved contracts

CHAPTER V

Procedures

Article 29 Competitive dialogue

Article 32 Framework agreements

Article 33 Dynamic purchasing systems

Article 34 Public works contracts: particular rules on subsidised housing schemes

CHAPTER VI

Rules on advertising and transparency

Section 1 — Publication of notices

Article 35 Notices: paragraph 3, and subparagraphs 2 and 3 of paragraph 4

CHAPTER VII

Conduct of the procedure

Section 2 — Criteria for qualitative selection

Article 52 Official lists of approved economic operators and certification by bodies established under public or private law

Section 3 — Award of the contract

Article 54 Use of electronic auctions

ANNEX XVI-H

OTHER MANDATORY ELEMENTS OF DIRECTIVE 2004/18/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ( 69 )

(PHASE 4)

TITLE I

Definitions and general principles

Article 1 Definitions (paragraphs: 3, 4 and 11(e))

TITLE II

Rules on public contracts

CHAPTER II

Scope

Section 3 - Excluded contracts

Article 17 Service concessions

TITLE III

Rules on public works concessions

CHAPTER I

Rules governing public works concessions

Article 56 Scope

Article 57 Exclusions from the scope (except the last paragraph)

Article 58 Publication of the notice concerning public works concessions

Article 59 Time limit

Article 60 Subcontracting

Article 61 Awarding of additional works to the concessionaire

CHAPTER II

Rules on contracts awarded by concessionaires which are contracting authorities

Article 62 Applicable rules

CHAPTER III

Rules applicable to contracts awarded by concessionaires which are not contracting authorities

Article 63 Advertising rules: threshold and exceptions

Article 64 Publication of the notice

Article 65 Time limit for the receipt of requests to participate and receipt of tenders

TITLE IV

Rules governing design contests

Article 66 General provisions

Article 67 Scope

Article 68 Exclusions from the scope

Article 69 Notices

Article 70 Form and manner of publication of notices of contests

Article 71 Means of communication

Article 72 Selection of competitors

Article 73 Composition of the jury

Article 74 Decisions of the jury

ANNEXES to Directive 2004/18/EC

Annex VII B Information which must appear in public works concession notices

Annex VII C Information which must appear in works contracts notices of concessionaires who are not contracting authorities

Annex VII D Information which must appear in design contest notices

ANNEX XVI-I

OTHER ELEMENTS OF COUNCIL DIRECTIVE 89/665/EEC ( 70 )AS AMENDED BY DIRECTIVE 2007/66/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ( 71 )

(PHASE 4)

Article 2b

Derogations from the standstill period Point (c) ►C1  of the first paragraph of ◄ Article 2b

Article 2d

Ineffectiveness Point (c) of paragraph 1 of Article 2d Paragraph 5

ANNEX XVI-J

OTHER NON-MANDATORY ELEMENTS OF DIRECTIVE 2004/17/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ( 72 )

(PHASE 5)

The elements of Directive 2004/17/EC set out in this Annex are not mandatory but recommended for approximation. Georgia may approximate these elements within the time-frame set in Annex XVI-B.

TITLE I

General provisions applicable to contracts and design contests

CHAPTER I

Basic terms

Article 1 Definitions (paragraphs 4, 5, 6 and 8)

TITLE II

Rules applicable to contracts

CHAPTER I

General provisions

Article 14 Framework agreements

Article 15 Dynamic purchasing systems

Section 2 - Contracts and concessions and contracts subject to special arrangements

Subsection 5 - Contracts subject to special arrangements, provisions concerning central purchasing bodies and the general procedure in case of direct exposure to competition

Article 28 Reserved contracts

Article 29 Contracts and framework agreements awarded by central purchasing bodies

CHAPTER V

Procedures

Article 40 (3) (i) and (l)

CHAPTER VI

Rules on publication and transparency

Section 1 - Publication of notices

Article 42 Notices used as a means of calling for competition: paragraph 2

Article 43 Contract award notices (only for the second and the third subparagraphs of paragraph 1)

CHAPTER VII

Conduct of the procedure

Section 2 - Award of the contract

Article 56 Use of electronic auctions

ANNEX to Directive 2004/17/EC

Annex XIII Information to be included in contract notices:

D. Simplified contract notice for use in a dynamic purchasing system

ANNEX XVI-K

OTHER ELEMENTS OF COUNCIL DIRECTIVE 92/13/EEC ( 73 )AS AMENDED BY DIRECTIVE 2007/66/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ( 74 )

(PHASE 5)

Article 2b

Derogations from the standstill period Point (c) ►C1  of the first paragraph of ◄ Article 2b

Article 2d

Ineffectiveness Point (c) of paragraph 1 of Article 2d Paragraph 5

ANNEX XVI-L

PROVISIONS OF DIRECTIVE 2004/18/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ( 75 )OUTSIDE THE SCOPE OF APPROXIMATION

The elements listed in this Annex are not subject to the process of approximation.

TITLE II

Rules on public contracts

CHAPTER I

General provisions

Article 5 Conditions relating to agreements concluded within the World Trade Organisation

CHAPTER VI

Rules on advertising and transparency

Section 1 — Publication of notices

Article 36 Form and manner of publication of notices: paragraphs 2, 3, 4, 5, 6 and 8

Article 37 Non-mandatory publication

Section 5 — Reports

Article 43 Content of reports

TITLE V

Statistical obligations, executory powers and final provisions

Article 75 Statistical obligations

Article 76 Content of statistical report

Article 77 Advisory Committee

Article 78 Revision of the thresholds

Article 79 Amendments

Article 80 Implementation

Article 81 Monitoring mechanisms

Article 82 Repeals

Article 83 Entry into force

Article 84 Addressees

ANNEXES to Directive 2004/18/EC

Annex III List of bodies and categories of bodies governed by public law referred to in the second subparagraph of Article 1(9)

Annex IV Central Government authorities

Annex VIII Features concerning publication

Annex IX Registers

Annex IX A Public works contracts

Annex IX B Public supply contracts

Annex IX C Public service contracts

Annex XI Deadlines for transposition and application (Article 80)

Annex XII Correlation table

ANNEX XVI-M

PROVISIONS OF DIRECTIVE 2004/17/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ( 76 )OUTSIDE THE SCOPE OF APPROXIMATION

The elements listed in this Annex are not subject to the process of approximation.

TITLE I

General provisions applicable to contracts and design contests

CHAPTER II

Definition of the activities and entities covered

Section 2 - Activities

Article 8 Lists of contracting entities

TITLE II

Rules applicable to contracts

CHAPTER I

General provisions

Article 12 Conditions relating to Agreements concluded within the World Trade Organisation

Section 2 - Contracts and concessions and contracts subject to special arrangements

Subsection 1

Article 18 Works and service concessions

Subsection 2 - Exclusions applicable to all contracting entities and to all types of contract

Article 20 Contracts awarded for purposes other than the pursuit of an activity covered or for the pursuit of such an activity in a third country: paragraph 2

Subsection 5 - Contracts subject to special arrangements, provisions concerning central purchasing bodies and the general procedure in case of direct exposure to competition

Article 27 Contracts subject to special arrangements

Article 30 Procedure for establishing whether a given activity is directly exposed to competition

CHAPTER IV

Specific rules governing specifications and contract documents

Article 38 Conditions for performance of contracts

CHAPTER VI

Rules on publication and transparency

Section 1 - Publication of notices

Article 44 Form and manner of publication of notices (only for the first subparagraph of paragraph 2, and for paragraphs 4, 5 and 7)

Section 3 - Communication and information

Article 50 Information to be stored concerning awards

CHAPTER VII

Conduct of the procedure

Section 3 - Tenders comprising products originating in third countries and relations with those countries

Article 58 Tenders comprising products originating in third countries

Article 59 Relations with third countries as regards service contracts

TITLE IV

Statistical obligations, executory powers and final provisions

Article 67 Statistical obligations

Article 68 Advisory Committee

Article 69 Revision of the thresholds

Article 70 Amendments

Article 71 Implementation of the Directive

Article 72 Monitoring mechanisms

Article 73 Repeal

Article 74 Entry into force

Article 75 Addressees

ANNEXES to Directive 2004/17/EC

Annex I Contracting entities in the sectors of transport or distribution of gas or heat

Annex II Contracting entities in the sectors of production, transport or distribution of electricity

Annex III Contracting entities in the sectors of production, transport or distribution of drinking water

Annex IV Contracting entities in the field of rail services

Annex V Contracting entities in the field of urban railway, tramway, trolleybus or bus services

Annex VI Contracting entities in the postal services sector

Annex VII Contracting entities in the sectors of exploration for and extraction of oil or gas

Annex VIII Contracting entities in the sectors of exploration for and extraction of coal and other solid fuels

Annex IX Contracting entities in the field of maritime or inland port or other terminal facilities

Annex X Contracting entities in the field of airport installations

Annex XI List of legislation referred to in Article 30(3)

Annex XII List of professional activities as set out in point b of Article 1(2)

Annex XXII Summary table of the time limits laid down in Article 45

Annex XXV Time limits for transposition and implementation

Annex XXVI Correlation table

ANNEX XVI-N

PROVISIONS OF COUNCIL DIRECTIVE 89/665/EEC ( 77 )AS AMENDED BY DIRECTIVE 2007/66/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ( 78 )OUTSIDE THE SCOPE OF APPROXIMATION

The elements listed in this Annex are not subject to the process of approximation.

Article 2b

Derogations from the standstill period Point (a) ►C1  of the first paragraph of ◄ Article 2b

Article 2d

Ineffectiveness Point (a) of paragraph 1 of Article 2d Paragraph 4

Article 3

Corrective Mechanisms

Article 3a

Content of the notice for voluntary ex ante transparency

Article 3b

Committee Procedure

Article 4

Implementation

Article 4a

Review

ANNEX XVI-O

PROVISIONS OF COUNCIL DIRECTIVE 92/13/EEC ( 79 )AS AMENDED BY DIRECTIVE 2007/66/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL ( 80 )OUTSIDE THE SCOPE OF APPROXIMATION

The elements listed in this Annex are not subject to the process of approximation.

Article 2b

Derogations from the standstill period Point (a) ►C1  of the first paragraph of ◄ Article 2b

Article 2d

Ineffectiveness Point (a) of paragraph 1 of Article 2d Paragraph 4

Article 3a

Content of the notice for voluntary ex ante transparency

Article 3b

Committee Procedure

Article 8

Corrective Mechanisms

Article 12

Implementation

Article 12a

Review

ANNEX XVI-P

GEORGIA: INDICATIVE LIST OF ISSUES FOR COOPERATION

ANNEX XVII

GEOGRAPHICAL INDICATIONS

ANNEX XVII-A

ELEMENTS FOR REGISTRATION AND CONTROL OF GEOGRAPHICAL INDICATIONS AS REFERRED TO IN ARTICLE 170(1) AND (2)

ANNEX XVII-B

CRITERIA TO BE INCLUDED IN THE OBJECTION PROCEDURE FOR PRODUCTS REFERRED TO IN ARTICLES 170(2) AND (3)

▼M3

ANNEX XVII-C

GEOGRAPHICAL INDICATIONS OF PRODUCTS AS REFERRED TO IN ARTICLE 170(3) AND (4)

PART A

Agricultural products and foodstuffs other than wines, spirit drinks and aromatised wines of the European Union to be protected in Georgia

PART B

Agricultural products and foodstuffs other than wines, spirit drinks and aromatised wines of Georgia to be protected in the European Union

ANNEX XVII-D

GEOGRAPHICAL INDICATIONS OF PRODUCTS AS REFERRED TO IN ARTICLE 170(3) AND (4)

PART A

Wines of the European Union to be protected in Georgia

Wines of Georgia to be protected in the European Union

PART B

Spirit drinks of the European Union to be protected in Georgia

Spirit drinks of Georgia to be protected in the European Union

PART C

Aromatised wines of the European Union to be protected in Georgia

Aromatised wines of Georgia to be protected in the European Union

[…]

▼B

ANNEX XVIII

EARLY WARNING MECHANISM

ANNEX XIX

MEDIATION MECHANISM

Article 1

Objective

The objective of this Annex is to facilitate the finding of a mutually agreed solution through a comprehensive and expeditious procedure with the assistance of a mediator.

SECTION 1

PROCEDURE UNDER THE MEDIATION MECHANISM

Article 2

Request for information

1.  Before the initiation of the mediation procedure, a Party may request at any time in writing information regarding a measure adversely affecting its trade interests. The Party to which such request is made shall provide, within 20 days, a written response containing its comments on the information contained in the request.

2.  Where the responding Party considers that a response within 20 days is not practicable, it shall inform the requesting Party of the reasons for the delay, together with an estimate of the shortest period within which it will be able to provide its response.

Article 3

Initiation of the procedure

1.  A Party may request, at any time, that the Parties enter into a mediation procedure. Such request shall be addressed to the other Party in writing. The request shall be sufficiently detailed to present clearly the concerns of the requesting Party and shall:

2.  The mediation procedure may only be initiated by mutual agreement of the Parties. The Party to which a request pursuant to paragraph 1 is addressed shall give sympathetic consideration to the request and reply by accepting or rejecting it in writing within ten days of its receipt.

Article 4

Selection of the mediator

1.  Upon launch of the mediation procedure, the Parties shall endeavour to agree on a mediator no later than 15 days after the receipt of the reply to the request referred to in Article 3 of this Annex.

2.  In the event that the Parties are unable to agree on the mediator within the time frame laid down in paragraph 1, either Party may request the chair or co-chairs of the Association Committee in Trade configuration, as set out in Article 408(4) of this Agreement, or their delegates, to select the mediator by lot from the list established under Article 268 of this Agreement. Representatives of both Parties shall be invited, with sufficient advance notice, to be present when lots are drawn. In any event, the lot shall be carried out with the Party/Parties that are present.

3.  The chair or co-chairs of the Association Committee in Trade configuration, or their delegates, shall select the mediator within five working days of the request made by either Party under paragraph 2 of this Article.

4.  Should the list provided for in Article 268 of this Agreement not be established at the time a request is made pursuant to Article 3 of this Annex, the mediator shall be drawn by lot from the individuals which have been formally proposed by one or both of the Parties.

5.  A mediator shall not be a citizen of either Party, unless the Parties agree otherwise.

6.  The mediator shall assist, in an impartial and transparent manner, the Parties in bringing clarity to the measure and its possible trade effects, and in reaching a mutually agreed solution. The Code of Conduct for Arbitrators and Mediators set out in Annex XXI to this Agreement shall apply to mediators, mutatis mutandis. Rules 3 through 7 (notifications) and 41 through 45 (translation and interpretation) of the Rules of Procedure of Annex XX to this Agreement shall also apply, mutatis mutandis.

Article 5

Rules of the mediation procedure

1.  Within ten days after the appointment of the mediator, the Party having invoked the mediation procedure shall present, in writing, a detailed description of the problem to the mediator and to the other Party, in particular of the operation of the measure at issue and its trade effects. Within 20 days after the date of delivery of this submission, the other Party may provide, in writing, its comments to the description of the problem. Either Party may include in its description or comments any information that it deems relevant.

2.  The mediator may decide on the most appropriate way of bringing clarity to the measure concerned and its possible trade effects. In particular, the mediator may organise meetings between the Parties, consult the Parties jointly or individually, seek the assistance of, or consult with, relevant experts and stakeholders and provide any additional support requested by the Parties. However, before seeking the assistance of or consulting with relevant experts and stakeholders, the mediator shall consult with the Parties.

3.  The mediator may offer advice and propose a solution for the consideration of the Parties which may accept or reject the proposed solution or may agree on a different solution. However, the mediator shall not advise or give comments on the consistency of the measure at issue with this Agreement.

4.  The procedure shall take place in the territory of the Party to which the request was addressed, or by mutual agreement in any other location or by any other means.

5.  The Parties shall endeavour to reach a mutually agreed solution within 60 days from the appointment of the mediator. Pending a final agreement, the Parties may consider possible interim solutions, especially if the measure relates to perishable goods.

6.  The solution may be adopted by means of a decision of the Association Committee in Trade configuration as set out in Article 408(4) of this Agreement. Either Party may make such solution subject to the completion of any necessary internal procedures. Mutually agreed solutions shall be made publicly available. The version disclosed to the public may not contain any information that a Party has designated as confidential.

7.  On request of the Parties, the mediator shall notify to the Parties, in writing, a draft factual report, providing a brief summary of (a) the measure at issue in these procedures; (b) the procedures followed; and (c) any mutually agreed solution reached as the final outcome of these procedures, including possible interim solutions. The mediator shall provide the Parties 15 days to comment on the draft report. After considering the comments of the Parties submitted within the period, the mediator shall submit, in writing, a final factual report to the Parties within 15 days. The factual report shall not include any interpretation of this Agreement.

8.  The procedure shall be terminated:

SECTION 2

IMPLEMENTATION

Article 6

Implementation of a mutually agreed solution

1.  Where the Parties have agreed to a solution, each Party shall take the measures necessary to implement the mutually agreed solution within the agreed timeframe.

2.  The implementing Party shall inform the other Party in writing of any steps or measures taken to implement the mutually agreed solution.

SECTION 3

GENERAL PROVISIONS

Article 7

Confidentiality and relationship to dispute settlement

1.  Unless the Parties agree otherwise, and without prejudice to Article 5(6) of this Annex, all steps of the procedure, including any advice or proposed solution, are confidential. However, any Party may disclose to the public that mediation is taking place.

2.  The mediation procedure is without prejudice to the Parties' rights and obligations under the provisions on Dispute Settlement of Chapter 14 (Dispute Settlement) of Title IV (Trade and Trade-related Matters) of this Agreement or any other agreement.

3.  Consultations under Chapter 14 (Dispute Settlement) of Title IV (Trade and Trade-related Matters) of this Agreement are not required before initiating the mediation procedure. However, a Party should normally avail itself of the other available cooperation or consultation provisions in this Agreement before initiating the mediation procedure.

4.  A Party shall not rely on or introduce as evidence in other dispute settlement procedures under this Agreement or any other agreement, nor shall a panel take into consideration:

5.  A mediator may not serve as a panellist in a dispute settlement proceeding under this Agreement or under the WTO Agreement involving the same matter for which he/she has been a mediator.

Article 8

Time-limits

Any time-limit referred to in this Annex may be modified by mutual agreement between the Parties involved in these procedures.

Article 9

Costs

1.  Each Party shall bear its own expenses derived from its participation in the mediation procedure.

2.  The Parties shall share jointly and equally the expenses derived from organisational matters, including the remuneration and expenses of the mediator. The remuneration of the mediator shall be in accordance with that foreseen for the chairperson of an arbitration panel in accordance with Rule 8(e) of the Rules of Procedure.

ANNEX XX

RULES OF PROCEDURE FOR DISPUTE SETTLEMENT

General provisions

Notifications

Commencing the arbitration

Initial submissions

Working of arbitration panels

Replacement

If the Parties to the dispute fail to agree on the need to replace an arbitrator, any Party to the dispute may request that such matter be referred to the chairperson of the arbitration panel, whose decision shall be final.

If, pursuant to such a request, the chairperson finds that an arbitrator does not comply with the requirements of the Code of Conduct, the new arbitrator shall be selected in accordance with Article 249 of this Agreement and Rule 8 of these Rules.

If the Parties fail to agree on the need to replace the chairperson, any Party may request that such matter be referred to one of the remaining members of the pool of individuals from the sub-list of chairpersons established under paragraph 1 of Article 268 of this Agreement. Within five days from the request, his/her name shall be drawn by lot in accordance with Rule 8 of these Rules. The decision by the selected person on the need to replace the chairperson shall be final.

If the selected person decides that the original chairperson does not comply with the requirements of the Code of Conduct, he/she shall select a new chairperson by lot among the remaining pool of individuals from the sub-list of chairpersons referred to under paragraph 1 of Article 268 of this Agreement. The selection of the new chairperson shall be carried out within five days of the date of the decision by the selected person that the original chairperson does not comply with the requirements of the Code of Conduct.

Hearings

The hearing shall be open to the public, unless it must be partially or fully closed in order to ensure the confidentiality of confidential information. In addition, the Parties may, by mutual agreement, decide that the hearing be partially or fully closed to the public on the basis of other objective considerations.

Only the representatives and advisers of the Parties to the dispute may address the arbitration panel.

Argument

Rebuttal Argument

Questions in writing

Confidentiality

Ex parte contacts

Amicus curiae submissions

Urgent cases

Translation and interpretation

Other procedures

ANNEX XXI

CODE OF CONDUCT FOR ARBITRATORS AND MEDIATORS

Definitions

Responsibilities to the process

Disclosure obligations

Duties of arbitrators

Independence and impartiality of arbitrators

Obligations of former arbitrators

Confidentiality

Expenses

Mediators

ANNEX XXII

TAXATION

Georgia undertakes to gradually approximate its legislation to the following EU legislation and international instruments within the stipulated timeframes.

Indirect taxation

Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax.

The provisions of that Directive shall apply, with the exception of:

Timetable: that Directive's provisions, with the exception of the list above, shall be implemented within five years of entry into force of this Agreement.

Georgia retains the right to exempt supply of goods and services that are exempted under Georgian Tax Code at the entry into force of this Agreement.

Council Directive 2011/64/EU of 21 June 2011 on the structure and rates of excise duty applied on manufactured tobacco

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement with the exception of Articles 7(2), 8, 9, 10, 11, 12 14(1), 14(2), 14(4), 18 and 19 of that Directive for which a proposal for a decision of the Association Council on a timetable will be submitted within one year from the entry into force of this Agreement, taking into account the need of Georgia to fight against smuggling and defend its tax revenue.

Council Directive 2007/74/EC of 20 December 2007 on the exemption from value added tax and excise duty of goods imported by persons travelling from third countries

The following section of that Directive shall apply:

Timetable: those provisions of that Directive shall be implemented within three years of entry into force of this Agreement.

Council Directive 92/83/EEC of 19 October 1992 on the harmonization of the structures of excise duties on alcohol and alcoholic beverages

Timetable: that Directive's provisions shall be implemented within three years of entry into force of this Agreement.

Georgia will retain the right to exempt from excise duties spirits produced by individuals in small quantities for home consumption and not intended for marketing.

Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity

Timetable: that Directive's provisions, with the exception of Annex 1 thereto, shall be implemented within five years of entry into force of this Agreement.

Council Directive 2008/118/EC of 16 December 2008 concerning the general arrangements for excise duty

The following Article of that Directive shall apply:

Timetable: those provisions of that Directive shall be implemented within two years of entry into force of this Agreement.

Thirteenth Council Directive 86/560/EEC of 17 November 1986 on the harmonization of the laws of the Member States relating to turnover taxes-Arrangements for the refund of value added tax to taxable persons not established in Community territory

Timetable: that Directive's provisions shall be implemented within three years of entry into force of this Agreement.

ANNEX XXIII

STATISTICS

The EU acquis in statistics as mentioned in Article 291 of Chapter 4 (Statistics), Title V (Economic Cooperation) of this Agreement is set out in the annually updated Statistical Requirements Compendium, which is considered by the Parties as annexed to this Agreement.

The latest available version of the Statistical Requirements Compendium can be found on the website of the Statistical Office of the European Union (Eurostat) in an electronic form at http://epp.eurostat.ec.europa.eu

ANNEX XXIV

TRANSPORT

Georgia undertakes to gradually approximate its legislation to the following EU legislation and international instruments within the stipulated timeframes.

Road transport

Technical conditions

Council Directive 92/6/EEC of 10 February 1992 on the installation and use of speed limitation devices for certain categories of motor vehicles in the Community

Timetable:

For all vehicles engaged in international transport, that Directive's provisions shall be implemented within two years of the entry into force of this Agreement.

For all vehicles engaged in national transport already registered at the moment of entry into force of this Agreement, that Directive's provisions shall be implemented within six years of the entry into force of this Agreement.

For all vehicles which are registered for the first time, that Directive's provisions shall be implemented within two years after the entry into force of this Agreement.

Council Directive 96/53/EC of 25 July 1996 laying down for certain road vehicles circulating within the Community the maximum authorized dimensions in national and international traffic and the maximum authorized weights in international traffic

Timetable: that Directive's provisions shall be implemented within two years of the entry into force of this Agreement.

Directive 2009/40/EC of the European Parliament and of the Council of 6 May 2009 on roadworthiness tests for motor vehicles and their trailers

Timetable: that Directive's provisions shall be implemented within two years of the entry into force of this Agreement for buses and trucks and within four years of the entry into force of this Agreement for other categories of vehicles.

Safety conditions

Directive 2006/126/EC of the European Parliament and of the Council of 20 December 2006 on driving licences

The following provisions of that Directive shall apply:

Timetable: those provisions of that Directive shall be implemented within four years of the entry into force of this Agreement.

Directive 2008/68/EC of the European Parliament and of the Council of 24 September 2008 on the inland transport of dangerous goods

Timetable:

For all vehicles engaged in international transport, that Directive's provisions shall be implemented within three years of the entry into force of this Agreement.

For all vehicles engaged in national transport, that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Social conditions

Regulation (EC) No 561/2006 of the European Parliament and of the Council of 15 March 2006 on the harmonisation of certain social legislation relating to road transport

Timetable:

For all vehicles engaged in international transport, that Regulation's provisions shall be implemented upon entry into force of this Agreement.

For all vehicles engaged in national transport already registered at the moment of the entry into force of this Agreement, that Regulation's provisions shall be implemented within five years of the entry into force of this Agreement.

Council Regulation (EEC) No 3821/85 of 20 December 1985 on recording equipment in road transport

Timetable:

For all vehicles engaged in international transport, that Regulation's provisions shall be implemented upon entry into force of this Agreement.

For all vehicles engaged in national transport already registered at the moment of the entry into force of this Agreement, that Regulation's provisions shall be implemented within five years of the entry into force of this Agreement.

Directive 2006/22/EC of the European Parliament and of the Council of 15 March 2006 on minimum conditions for the implementation of Council Regulations (EEC) No 3820/85 and (EEC) No 3821/85 concerning social legislation relating to road transport activities

Timetable: For all vehicles engaged in international transport, that Directive's provisions shall be implemented upon entry into force of this Agreement.

For all vehicles engaged in national transport that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Regulation (EC) No 1071/2009 of the European Parliament and of the Council of 21 October 2009 establishing common rules concerning the conditions to be complied with to pursue the occupation of road transport operator

The following provisions of that Regulation shall apply:

Timetable:

For all vehicles engaged in international transport, that Regulation's provisions shall be implemented within one year of the entry into force of this Agreement.

For all vehicles engaged in national transport that Regulation's provisions shall be implemented within four years of the entry into force of this Agreement.

Directive 2002/15/EC of the European Parliament and of the Council of 11 March 2002 on the organisation of the working time of persons performing mobile road transport activities

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Directive 2003/59/EC of the European Parliament and of the Council of 15 July 2003 on the initial qualification and periodic training of drivers of certain road vehicles for the carriage of goods or passengers

Timetable:

For all vehicles engaged in international transport, that Directive's provisions shall be implemented within two years of the entry into force of this Agreement.

For all vehicles engaged in national transport that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Fiscal conditions

Directive 1999/62/EC of the European Parliament and of the Council of 17 June 1999 on the charging of heavy goods vehicles for the use of certain infrastructures

Timetable: that Directive's provisions shall be implemented once Georgia decides to introduce tolls or charges for the use of certain infrastructure.

Railway transport

Market and infrastructure access

►C1  Directive 2012/34/EU of ◄ the European Parliament and of the Council of 21 November 2012 establishing a single European rail area

The following provisions of that Directive shall apply:

Timetable: those provisions of that Directive shall be implemented by August 2022.

Regulation (EU) No 913/2010 of the European Parliament and of the Council of 22 September 2010 concerning a European rail network for competitive freight

Timetable: that Regulation's provisions shall be implemented within five years of the entry into force of this Agreement.

Technical and safety conditions, interoperability

Directive 2004/49/EC of the European Parliament and of the Council of 29 April 2004 on safety on the Community's railways

Timetable: that Directive's provisions shall be implemented within seven years of the entry into force of this Agreement.

Directive 2007/59/EC of the European Parliament and of the Council of 23 October 2007 on the certification of train drivers operating locomotives and trains on the railway system in the Community

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Directive 2008/57/EC of the European Parliament and of the Council of 17 June 2008 on the interoperability of the rail system within the Community

Timetable: that Directive's provisions shall be implemented within six years of the entry into force of this Agreement.

Directive 2008/68/EC of the European Parliament and of the Council of 24 September 2008 on the inland transport of dangerous goods

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Other aspects

Regulation (EC) No 1370/2007 of the European Parliament and of the Council of 23 October 2007 on public passenger transport services by rail and by road

Timetable: that Regulation's provisions regarding public passenger transport services by rail shall be implemented within four years of the entry into force of this Agreement.

The proposal regarding the implementation of that Regulation's provisions regarding public passenger transport services by road shall be submitted to the Association Council within four years of the entry into force of this Agreement.

Regulation (EC) No 1371/2007 of the European Parliament and of the Council of 23 October 2007 on rail passengers' rights and obligations

Timetable: that Regulation's provisions (except for Articles 9, 11, 12, 19, 20(1), 26) shall be implemented within three years of the entry into force of this Agreement. Articles 9, 11, 12, 19, 20(1), 26 of that Regulation shall be implemented within seven years of the entry into force of this Agreement. Georgia retains the right to apply Annex I to that Regulation, only on the section from the station Gardabani to the station Kartsakhi, to the state border (244 km), after that line is put into operation.

Air transport

Gradual approximation in the air transport sector takes place under the Common Aviation Area Agreement between the European Union and its Member States, of the one part, and Georgia, of the other part, signed on 2 December 2010 in Brussels which contains the list and timetable for implementation of EU acquis in the area of aviation in an annex.

ANNEX XXV

ENERGY

Georgia undertakes to gradually approximate its legislation to the following EU legislation and international instruments within the stipulated timeframes.

Electricity

Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity

Timetable: that Directive's provisions shall be implemented in accordance with the timeline agreed by Georgia in the framework of the Energy Community Treaty. Should Georgia's accession to the Energy Community Treaty not become effective within two years of the entry into force of this Agreement, a proposal for a timeline will be submitted to the Association Council no later than three years after the entry into force of the this Agreement.

Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity

Timetable: that Regulation's provisions shall be implemented in accordance with the timeline agreed by Georgia in the framework of the Energy Community Treaty. Should Georgia's accession to the Energy Community Treaty not become effective within two years of the entry into force of this Agreement, a proposal for a timeline will be submitted to the Association Council no later than three years after the entry into force of this Agreement.

Directive 2005/89/EC of the European Parliament and of the Council of 18 January 2006 concerning measures to safeguard security of electricity supply and infrastructure investment

Timetable: that Directive's provisions shall be implemented in accordance with the timeline agreed by Georgia in the framework of the Energy Community Treaty. Should Georgia's accession to the Energy Community Treaty not become effective within two years of the entry into force of this Agreement, a proposal for a timeline will be submitted to the Association Council no later than three years after the entry into force of this Agreement.

Directive 2008/92/EC of the European Parliament and of the Council of 22 October 2008 concerning a Community procedure to improve the transparency of gas and electricity prices charged to industrial end-users

Timetable: that Directive's provisions shall be implemented in accordance with the timeline agreed by Georgia in the framework of the Energy Community Treaty. Should Georgia's accession to the Energy Community Treaty not become effective within two years of the entry into force of this Agreement, a proposal for a timeline will be submitted to the Association Council no later than three years after the entry into force of this Agreement.

Gas

Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas

Timetable: provisions of Directive 2009/73/EC shall be implemented in accordance with the timeline agreed by Georgia in the framework of the Energy Community Treaty. Should Georgia's accession to the Energy Community Treaty not become effective within two years of the entry into force of this Agreement, a proposal for a timeline will be submitted to the Association Council no later than three years after the entry into force of this Agreement.

Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions of access to the natural gas transmission networks, as amended by Commission Decision 2010/685/EU of 10 November 2010

Timetable: the provisions of Regulation (EC) No 715/2009 shall be implemented in accordance with the timeline agreed by Georgia in the framework of the Energy Community Treaty. Should Georgia's accession to the Energy Community Treaty not become effective within two years of the entry into force of this Agreement, a proposal for a timeline will be submitted to the Association Council no later than three years after the entry into force of this Agreement.

Directive 2008/92/EC of the European Parliament and of the Council of 22 October 2008 concerning a Community procedure to improve the transparency of gas and electricity prices charged to industrial end-users

Timetable: that Directive's provisions shall be implemented in accordance with the timeline agreed by Georgia in the framework of the Energy Community Treaty. Should Georgia's accession to the Energy Community Treaty not become effective within two years of the entry into force of this Agreement, a proposal for a timeline will be submitted to the Association Council no later than three years after the entry into force of this Agreement.

►C1  Regulation (EU) No 994/2010 of the European Parliament and of the Council of 20 October 2010 concerning ◄ measures to safeguard security of gas supply

Timetable: that Regulation's provisions shall be implemented in accordance with the timeline agreed by Georgia in the framework of the Energy Community Treaty. Should Georgia's accession to the Energy Community Treaty not become effective within two years of the entry into force of this Agreement, a proposal for a timeline will be submitted to the Association Council no later than three years after the entry into force of this Agreement.

Renewable energy

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources

Timetable: that Directive's provisions shall be implemented in accordance with the timeline agreed by Georgia in the framework of the Energy Community Treaty. Should Georgia's accession to the Energy Community Treaty not become effective within two years of the entry into force of this Agreement, a proposal for a timeline will be submitted to the Association Council no later than three years after the entry into force of this Agreement.

Oil

Council Directive 2009/119/EC of 14 September 2009 imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products

Timetable: that Directive's provisions shall be implemented in accordance with the timeline agreed by Georgia in the framework of the Energy Community Treaty. Should Georgia's accession to the Energy Community Treaty not become effective within two years of the entry into force of this Agreement, a proposal for a timeline will be submitted to the Association Council no later than three years after the entry into force of this Agreement.

Energy efficiency

Directive 2006/32/EC of the European Parliament and of the Council of 5 April 2006 on energy end-use efficiency and energy services

Timetable: that Directive's provisions shall be implemented in accordance with the timeline agreed by Georgia in the framework of the Energy Community Treaty. Should Georgia's accession to the Energy Community Treaty not become effective within two years of the entry into force of this Agreement, a proposal for a timeline will be submitted to the Association Council no later than three years after the entry into force of this Agreement.

Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the energy performance of buildings

Timetable: that Directive's provisions shall be implemented in accordance with the timeline agreed by Georgia in the framework of the Energy Community Treaty. Should Georgia's accession to the Energy Community Treaty not become effective within two years of the entry into force of this Agreement, a proposal for a timeline will be submitted to the Association Council no later than three years after the entry into force of this Agreement.

►C1  Directive 2010/30/EU of the European Parliament and of the Council of 19 May 2010 on the indication by labelling ◄ and standard product information of the consumption of energy and other resources by energy-related products

Timetable: that Directive's provisions shall be implemented in accordance with the timeline agreed by Georgia in the framework of the Energy Community Treaty. Should Georgia's accession to the Energy Community Treaty not become effective within two years of the entry into force of this Agreement, a proposal for a timeline will be submitted to the Association Council no later than three years after the entry into force of this Agreement.

Implementing Directives/Regulations:

Timetable: the provisions of the above mentioned implementing Directives/Regulations shall be implemented in accordance with the timeline agreed by Georgia in the framework of the Energy Community Treaty. Should Georgia's accession to the Energy Community Treaty not become effective within two years of the entry into force of this Agreement, a proposal for a timeline will be submitted to the Association Council no later than three years after the entry into force of this Agreement.

Prospection and exploration of hydrocarbons

Directive 94/22/EC of the European Parliament and of the Council of 30 May 1994 on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

Timetable: that Directive's provisions shall be implemented within three years of the entry into force of this Agreement.

Energy efficiency

Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency

Timetable: that Directive's provisions shall be implemented in accordance with the timeline to be agreed in the framework of the Energy Community Treaty. Should Georgia's accession to the Energy Community Treaty not become effective within two years of the entry into force of this Agreement, a proposal for a timeline will be submitted to the Association Council no later than three years after the entry into force of this Agreement.

Directive 2009/33/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of clean and energy-efficient road transport vehicles

Timetable: that Directive's provisions shall be implemented within eight years of the entry into force of this Agreement.

Commission Regulation (EC) No 859/2009 of 18 September 2009 amending Regulation (EC) No 244/2009 as regards the ecodesign requirements on ultraviolet radiation of non-directional household lamps

Timetable: the provisions of Regulation (EC) No 859/2009 shall be implemented within eight years of the entry into force of this Agreement.

Commission Regulation (EC) No 107/2009 of 4 February 2009 implementing Directive 2005/32/EC of the European Parliament and of the Council with regard to eco-design requirements for simple set-top boxes

Timetable: that Regulation's provisions shall be implemented within four years of the entry into force of this Agreement.

Commission Regulation (EC) No 1275/2008 of 17 December 2008 implementing Directive 2005/32/EC of the European Parliament and of the Council with regard to eco-design requirements for standby and off mode electric power consumption of electrical and electronic household and office equipment

Timetable: that Regulation's provisions shall be implemented within five years of the entry into force of this Agreement.

Commission Regulation (EC) No 641/2009 of 22 July 2009 implementing Directive 2005/32/EC of the European Parliament and of the Council with regard to ecodesign requirements for glandless standalone circulators and glandless circulators integrated in products

Timetable: that Regulation's provisions shall be implemented within five years of the entry into force of this Agreement.

Commission Regulation (EC) No 640/2009 of 22 July 2009 implementing Directive 2005/32/EC of the European Parliament and of the Council with regard to ecodesign requirements for electric motors

Timetable: that Regulation's provisions shall be implemented within six years of the entry into force of this Agreement.

Commission Regulation (EC) No 643/2009 of 22 July 2009 implementing Directive 2005/32/EC of the European Parliament and of the Council with regard to ecodesign requirements for household refrigerating appliances

Timetable: that Regulation's provisions shall be implemented within six years of the entry into force of this Agreement.

Commission Regulation (EC) No 642/2009 of 22 July 2009 implementing Directive 2005/32/EC of the European Parliament and of the Council with regard to ecodesign requirements for televisions

Timetable: that Regulation's provisions shall be implemented within 6 years of the entry into force of this Agreement.

Council Directive 92/42/EEC of 21 May 1992 on efficiency requirements for new hot-water boilers fired with liquid or gaseous fuels

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Regulation (EC) No 106/2008 of the European Parliament and of the Council of 15 January 2008 on a Community energy-efficiency labelling programme for office equipment

Timetable: that Regulation's provisions shall be implemented within six years of the entry into force of this Agreement.

Regulation (EC) No 1222/2009 of the European Parliament and of the Council of 25 November 2009 on the labelling of tyres with respect to fuel efficiency and other essential parameters

Timetable: that Regulation's provisions shall be implemented within five years of the entry into force of this Agreement.

Commission Regulation (EU) No 1015/2010 of 10 November 2010 implementing Directive 2009/125/EC of the European Parliament and of the Council with regard to ecodesign requirements for household washing machines

Timetable: that Regulation's provisions shall be implemented within five years of the entry into force of this Agreement.

Commission Regulation (EU) No 1016/2010 of 10 November 2010 implementing Directive 2009/125/EC of the European Parliament and of the Council with regard to ecodesign requirements for household dishwashers

Timetable: that Regulation's provisions shall be implemented within four years of the entry into force of this Agreement.

ANNEX XXVI

ENVIRONMENT

Georgia undertakes to gradually approximate its legislation to the following EU legislation and international instruments within the stipulated timeframes.

Environmental governance and integration of environment into other policy areas

Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment

The following provisions of that Directive shall apply:

Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment

The following provisions of that Directive shall apply:

Directive 2003/4/EC of the European Parliament and of the Council of 28 January 2003 on public access to environmental information

The following provisions of that Directive shall apply:

Directive 2003/35/EC of the European Parliament and of the Council of 26 May 2003 providing for public participation in respect of the drawing up of certain plans and programmes relating to the environment

The following provisions of that Directive shall apply:

To be read in conjunction with Directives 2008/50/EC, 91/676/EEC, 2008/98/EC, 2010/75/EU and 2011/92/EU

Directive 2004/35/EC of the European Parliament and of the Council of 21 April 2004 on environmental liability with regard to the prevention and remedying of environmental damage

The following provisions of that Directive shall apply:

Air quality

Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality and cleaner air for Europe

The following provisions of that Directive shall apply:

Directive 2004/107/EC of the European Parliament and of the Council of 15 December 2004 relating to arsenic, cadmium, mercury, nickel and polycyclic aromatic hydrocarbons in ambient air

The following provisions of that Directive shall apply:

Directive 1999/32/EC of 26 April 1999 relating to a reduction of sulphur content of certain liquid fuels as amended by Regulation (EC) No 1882/2003 and Directive 2005/33/EC

The following provisions of Directive 1999/32/EC shall apply:

Directive 94/63/EC of 20 December 1994 on the control of volatile organic compound (VOC) emissions resulting from the storage of petrol and its distribution from terminals to service stations, as amended by Regulation (EC) No 1882/2003

The following provisions of that Directive shall apply:

Directive 2004/42/EC of the European Parliament and of the Council of 21 April 2004 on the limitation of emissions of volatile organic compounds due to the use of organic solvents in certain paints and varnishes and vehicle refinishing products

The following provisions of that Directive shall apply:

Water quality and resource management including marine environment

Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy as amended by Decision No 2455/2001/EC

The following provisions of that Directive shall apply:

Directive 2007/60/EC of the European Parliament and of the Council of 23 October 2007 on the assessment and management of flood risks

The following provisions of that Directive shall apply:

►C1  Council Directive 91/271/EEC of ◄ 21 May 1991 concerning urban waste water treatment as amended by Directive 98/15/EC and Regulation (EC) No 1882/2003

The following provisions of Directive 91/271/EEC shall apply:

►C1  Council Directive 98/83/EC of 3 November 1998 on the quality ◄ of water intended for human consumption as amended by Regulation (EC) No 1882/2003

The following provisions of that Directive shall apply:

►C1  Council Directive 91/676/EEC of ◄ 12 December 1991 concerning the protection of waters against pollution caused by nitrates from agricultural sources as amended by Regulation (EC) No 1882/2003

The following provisions of that Directive shall apply:

Directive 2008/56/EC of the European Parliament and of the Council of 17 June 2008 establishing a framework for Community action in the field of marine environmental policy

The following provisions of that Directive shall apply:

Waste management

Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste:

The following provisions of that Directive shall apply:

Council Directive 1999/31/EC of 26 April 1999 on the landfill of waste as amended by Regulation (EC) No 1882/2003

The following provisions of that Directive shall apply:

Directive 2006/21/EC of the European Parliament and of the Council of 15 March 2006 on the management of waste from extractive industries

The following provisions of that Directive shall apply:

Nature protection

Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds

The following provisions of that Directive shall apply:

Council Directive 92/43/EC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora as amended by Directive 97/62/EC, 2006/105/EC and Regulation (EC) No 1882/2003

The following provisions of Directive 92/43/EC shall apply:

Industrial pollution and industrial hazards

Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions

The following provisions of that Directive shall apply:

Council Directive 96/82/EC of 9 December 1996 on the control of major accident hazards involving dangerous substances as amended by Directive 2003/105/EC and Regulation (EC) No 1882/2003

The following provisions of Directive 96/82/EC shall apply:

Chemicals management

Regulation (EC) No 689/2008 of the European Parliament and of the Council of 17 June 2008 concerning the export and import of dangerous chemicals

The following provisions of that Regulation shall apply:

Regulation (EC) No 1272/2008 of the European Parliament and of the Council of 16 December 2008 on classification, labelling and packaging of substances and mixtures,

The following provisions of that Regulation shall apply:

ANNEX XXVII

CLIMATE ACTION

Georgia undertakes to gradually approximate its legislation to the following EU legislation and international instruments within the stipulated timeframes.

Regulation (EC) No 842/2006 of the European Parliament and of the Council of 17 May 2006 on certain fluorinated greenhouse gases.

The following provisions of that Regulation shall apply:

Regulation (EC) No 1005/2009 of the European Parliament and of the Council of 16 September 2009 on substances that deplete the ozone layer.

The following provisions of that Regulation shall apply:

ANNEX XXVIII

COMPANY LAW, ACCOUNTING AND AUDITING AND CORPORATE GOVERNANCE

Georgia undertakes to gradually approximate its legislation to the following EU legislation and international instruments within the stipulated timeframes.

For the purposes of this Annex the term Public Limited Liability Company (PLLC) designates in Georgia any company where liability of shareholders is limited by their shares, and offer its shares to the public and/or the shares are publicly tradable (listed) in a stock exchange. The different designations for such companies under Georgian law, corresponding to those of the list of national designations included in Directive 77/91/EEC, will be agreed upon by the Association Council, and will replace the aforementioned definition of a PLLC. A proposal to the Association Council shall be made for such a decision no later than one year after the entry into force of this Agreement. This approach applies to all Directives referring to PLLC under this Annex.

Company law

Directive 2009/101/EC of the European Parliament and of the Council of 16 September 2009 on coordination of safeguards which, for the protection of the interests of members and third parties, are required by Member States of companies within the meaning of the second paragraph of Article 48 of the Treaty, with a view to making such safeguards equivalent

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

The proposal on the types of companies that will be exempt from Article 2(f) of that Directive, shall be proposed to the Association Council no later than one year after the entry into force of this Agreement.

Second Council Directive 77/91/EEC of 13 December 1976 on coordination of safeguards which, for the protection of the interests of members and others, are required by Member States of companies within the meaning of the second paragraph of Article 58 of the Treaty, in respect of the formation of public limited liability companies and the maintenance and alteration of their capital, with a view to making such safeguards equivalent, as amended by Directives 92/101/EEC, 2006/68/EC and 2009/109/EC

Timeline: the provisions of Directive 77/91/EEC shall be implemented within three years of entry into force of this Agreement.

Minimum capital requirement shall be clarified and a final decision will be submitted to the Association Council no later than three years from the entry into force.

Third Council Directive 78/855/EEC of 9 October 1978 based on Article 54(3)(g) of the Treaty concerning mergers of public limited liability companies, as amended by Directives 2007/63/EC and 2009/109/EC

Timetable: the provisions of Directive 78/855/EEC shall be implemented within five years of the entry into force of this Agreement.

Sixth Council Directive 82/891/EEC of 17 December 1982 based on Article 54(3)(g) of the Treaty, concerning the division of public limited liability companies, as amended by Directives 2007/63/EC and 2009/109/EC

Timetable: the provisions of Directive 82/891/EEC shall be implemented within five years of the entry into force of this Agreement.

Eleventh Council Directive 89/666/EEC of 21 December 1989 concerning disclosure requirements in respect of branches opened in a Member State by certain types of company governed by the law of another State

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Directive 2009/102/EC of the European Parliament and of the Council of 16 September 2009 in the area of company law on single-member private limited liability companies

Timetable: that Directive's provisions shall be implemented for single-member private limited companies with turnover above 1 million EUR within two years of the entry into force of this Agreement.

Scheduled application of that Directive to other single-member private limited companies will be clarified and a final decision will be submitted to the Association Council within one year from the entry into force of this Agreement.

Directive 2004/25/EC of the European Parliament and of the Council of 21 April 2004 on takeover bids

Timetable: that Directive's provisions shall be implemented within six years of the entry into force of this Agreement.

Directive 2007/36/EC of the European Parliament and of the Council of 11 July 2007 on the exercise of certain rights of shareholders in listed companies

Timetable: that Directive's provisions shall be implemented within three years of the entry into force of this Agreement.

Accounting and auditing

Fourth Council Directive 78/660/EEC of 25 July 1978 based on Article 54(3)(g) of the Treaty on the annual accounts of certain types of companies

Timetable: that Directive's provisions shall be implemented for public limited companies within three years of entry into force of this Agreement.

Scheduled application of this directive to other types of companies will be clarified and a final decision will be submitted to the Association Council within one year from the entry into force of the Agreement.

Seventh Council Directive 83/349/EEC of 13 June 1983 based on the Article 54(3)(g) of the Treaty on consolidated accounts

Timetable: that Directive's provisions shall be implemented for public limited companies within three years of entry into force of this Agreement.

Scheduled application of this directive to other types of companies will be clarified and a final decision will be submitted to the Association Council within one year from the entry into force of the Agreement.

Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards

Timetable: that Regulation's provisions shall be implemented for public limited companies within three years of entry into force of this Agreement.

Scheduled application of that Regulation to other types of companies will be clarified and a final decision will be submitted to the Association Council within one year from the entry into force of the Agreement.

Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts

Timetable: that Directive's provisions shall be implemented for public limited companies within three years of entry into force of this Agreement.

Scheduled application of this directive to other types of companies will be clarified and a final decision will be submitted to the Association Council within one year from the entry into force of the Agreement.

Commission Recommendation of 6 May 2008 on external quality assurance for statutory auditors and audit firms auditing public interest entities (2008/362/EC)

Timetable: not applicable

Commission Recommendation of 5 June 2008 concerning the limitation of the civil liability of statutory auditors and audit firms (2008/473/EC)

Timetable: not applicable

Corporate governance

OECD principles on corporate governance

Timetable: not applicable

Commission Recommendation of 14 December 2004 fostering an appropriate regime for the remuneration of directors of listed companies (2004/913/EC)

Timetable: not applicable

Commission Recommendation of 15 February 2005 on the role of non-executive or supervisory directors of listed companies and on the committees of the (supervisory) board (2005/162/EC)

Timetable: not applicable

Commission Recommendation of 30 April 2009 on remuneration in the financial services sector (2009/384/EC)

Timetable: not applicable

Commission Recommendation of 30 April 2009 complementing Recommendations No 2004/913/EC and No 2005/162/EC as regards the regime for the remuneration of directors of listed companies (2009/385/EC)

Timetable: not applicable

▼C1

ANNEX XXIX

▼B

CONSUMER POLICY

Georgia undertakes to gradually approximate its legislation to the following EU legislation and international instruments within the stipulated timeframes.

Product Safety

Directive 2001/95/EC of the European Parliament and of the Council of 3 December 2001 on general product safety

Timetable: that Directive's provisions shall be implemented upon the entry into force of this Agreement.

Council Directive 87/357/EEC of 25 June 1987 on the approximation of the laws of the Member States concerning products which, appearing to be other than they are, endanger the health or safety of consumers

Timetable: that Directive's provisions shall be implemented within two years of the entry into force of this Agreement.

Commission Decision 2009/251/EC of 17 March 2009 requiring Member States to ensure that products containing the biocide dimethylfumarate are not placed or made available on the market

The proposal on the timeline for that Decision shall be proposed to the Association Council no later than one year after the entry into force of this Agreement.

Commission Decision 2006/502/EC of 11 May 2006 requiring Member States to take measures to ensure that only lighters which are child-resistant are placed on the market and to prohibit the placing on the market of novelty lighters

Timetable: that Decision's provisions shall be implemented within two years of the entry into force of this Agreement.

Marketing

Directive 98/6/EC of the European Parliament and of the Council of 16 February 1998 on consumer protection in the indication of the prices of products offered to consumers

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market (‘Unfair Commercial Practices Directive’)

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Directive 2006/114/EC of the European Parliament and of the Council of 12 December 2006 concerning misleading and comparative advertising

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Contract Law

Directive 1999/44/EC of the European Parliament and of the Council of 25 May 1999 on certain aspects of the sale of consumer goods and associated guarantees

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Directive 97/7/EC of the European Parliament and of the Council of 20 May 1997 on the protection of consumers in respect of distance contracts

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Council Directive 85/577/EEC of 20 December 1985 to protect the consumer in respect of contracts negotiated away from business premises

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Council Directive 90/314/EEC of 13 June 1990 on package travel, package holidays and package tours

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Directive 2008/122/EC of the European Parliament and of Council of 14 January 2009 on the protection of consumers in respect of certain aspects of timeshare, long-term holiday product, resale and exchange contracts

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Financial Services

Directive 2002/65/EC of the European Parliament and of the Council of 23 September 2002 concerning the distance marketing of consumer financial services

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Consumer credit

Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Redress

Commission Recommendation of 30 March 1998 on the principles applicable to the bodies responsible for out-of-court settlement of consumer disputes (98/257/EC)

Timetable: not applicable

Commission Recommendation of 4 April 2001 on the principles for out-of-court bodies involved in the consensual resolution of consumer disputes (2001/310/EC)

Timetable: not applicable

Enforcement

Directive 98/27/EC of the European Parliament and of the Council of 19 May 1998 on injunctions for the protection of consumers' interests

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Consumer protection cooperation

Regulation (EC) No 2006/2004 of the European Parliament and of the Council of 27 October 2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws (the Regulation on consumer protection cooperation)

The approximation of Georgia's legislation should be limited to the following provisions of that Regulation:

Timetable: that Regulation's provisions shall be implemented within five years of the entry into force of this Agreement.

ANNEX XXX

EMPLOYMENT, SOCIAL POLICY AND EQUAL OPPORTUNITIES

Georgia undertakes to gradually approximate its legislation to the following EU legislation and international instruments within the stipulated timeframes.

Labour Law

Council Directive 91/533/EEC of 14 October 1991 on an employer's obligation to inform employees of the conditions applicable to the contract or employment relationship

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Council Directive 1999/70/EC of 28 June 1999 concerning the framework agreement on fixed-term work concluded by ETUC, UNICE and CEEP

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Council Directive 97/81/EC of 15 December 1997 concerning the Framework Agreement on part-time work concluded by UNICE, CEEP and the ETUC - Annex: Framework agreement on part-time work

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Council Directive 91/383/EEC of 25 June 1991 supplementing the measures to encourage improvements in the safety and health at work of workers with a fixed- duration employment relationship or a temporary employment relationship

Timetable: that Directive's provisions shall be implemented within six years of the entry into force of this Agreement.

Council Directive 98/59/EC of 20 July 1998 on the approximation of the laws of the Member States relating to collective redundancies

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Council Directive 2001/23/EC of 12 March 2001 on the approximation of the laws of the Member States relating to the safeguarding of employees' rights in the event of transfers of undertakings, businesses or parts of undertakings or businesses

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Directive 2002/14/EC of the European Parliament and of the Council of 11 March 2002 establishing a general framework for informing and consulting employees in the European Community - Joint declaration of the European Parliament, the Council and the Commission on employee representation

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Directive 2003/88/EC of the European Parliament and of the Council of 4 November 2003 concerning certain aspects of the organisation of working time

Timetable: that Directive's provisions shall be implemented within six years of the entry into force of this Agreement.

Anti-discrimination and gender equality

Council Directive 2000/43/EC of 29 June 2000 implementing the principle of equal treatment between persons irrespective of racial or ethnic origin

Timetable: that Directive's provisions shall be implemented within three years of the entry into force of this Agreement.

Council Directive 2000/78/EC of 27 November 2000 establishing a general framework for equal treatment in employment and occupation

Timetable: that Directive's provisions shall be implemented within three years of the entry into force of this Agreement.

Directive 2006/54/EC of the European Parliament and of the Council of 5 July 2006 on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Council Directive 2004/113/EC of 13 December 2004 implementing the principle of equal treatment between men and women in the access to and supply of goods and services

Timetable: that Directive's provisions shall be implemented within three years of the entry into force of this Agreement.

Council Directive 92/85/EEC of 19 October 1992 on the introduction of measures to encourage improvements in the safety and health at work of pregnant workers and workers who have recently given birth or are breastfeeding (tenth individual Directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: the provisions of Directive 92/85/EEC shall be implemented within four years of the entry into force of this Agreement.

Council Directive 79/7/EEC of 19 December 1978 on the progressive implementation of the principle of equal treatment for men and women in matters of social security

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Health and Safety at Work

Council Directive 89/391/EEC of 12 June 1989 on the introduction of measures to encourage improvements in the safety and health of workers at work

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Council Directive 89/654/EEC of 30 November 1989 concerning the minimum safety and health requirements for the workplace (first individual directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: for new workplaces, the provisions of Directive 89/654/EEC shall be implemented within five years of the entry into force of this Agreement, including minimum safety and health requirements laid down in Annex II to that Directive.

For workplaces already in use at the moment of entry into force of this Agreement, that Directive's provisions shall be implemented within seven years of the entry into force of this Agreement, including minimum safety and health requirements laid down in Annex II to that Directive.

Directive 2009/104/EC of the European Parliament and of the Council of 16 September 2009 concerning the minimum safety and health requirements for the use of work equipment by workers at work (second individual Directive within the meaning of Article 16(1) of Directive 89/391/EEC – Codification of Directive 89/655/EEC, as amended by Directives 95/63/EC and 2001/45/EC)

Timetable: for new workplaces, the provisions of Directive 2009/104/EC shall be implemented within five years of the entry into force of this Agreement, including minimum safety and health requirements laid down in Annex II to that Directive.

For workplaces already in use at the moment of entry into force of this Agreement, that Directive's provisions shall be implemented within seven years of the entry into force of this Agreement, including minimum safety and health requirements laid down in Annex I to that Directive.

Council Directive 89/656/EEC of 30 November 1989 on the minimum health and safety requirements for the use by workers of personal protective equipment at the workplace (third individual directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: the provisions of Directive 89/656/EEC shall be implemented within six years of the entry into force of this Agreement.

Council Directive 92/57/EEC of 24 June 1992 on the implementation of minimum safety and health requirements at temporary or mobile construction sites (eight individual directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: the provisions of Directive 92/57/EC shall be implemented within seven years of the entry into force of this Agreement.

Directive 2009/148/EC of the European Parliament and of the Council of 30 November 2009 on the protection of workers from the risks related to exposure to asbestos at work

Timetable: that Directive's provisions shall be implemented within eight years of the entry into force of this Agreement.

Directive 2004/37/EC of the European Parliament and of the Council of 29 April 2004 on the protection of workers from the risks related to exposure to carcinogens or mutagens at work (sixth individual directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: the provisions of Directive 2004/37/EC shall be implemented within nine years of the entry into force of this Agreement.

Directive 2000/54/EC of the European Parliament and of the Council of 18 September 2000 on the protection of workers from risks related to exposure to biological agents at work (seventh individual directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: the provisions of Directive 2000/54/EC shall be implemented within nine years of the entry into force of this Agreement.

Council Directive 90/270/EEC of 29 May 1990 on the minimum safety and health requirements for work with display screen equipment (fifth individual directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: the provisions of Directive 90/270/EEC shall be implemented within five years of the entry into force of this Agreement.

Council Directive 92/58/EEC of 24 June 1992 on the minimum requirements for the provision of safety and/or health signs at work (ninth individual Directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: the provisions of Directive 92/58/EEC shall be implemented within six years of the entry into force of this Agreement.

Council Directive 92/91/EEC of 3 November 1992 concerning the minimum requirements for improving the safety and health protection of workers in the mineral-extracting industries through drilling (eleventh individual directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: for new workplaces, the provisions of Directive 92/91/EEC shall be implemented within six years of the entry into force of this Agreement. For workplaces already in use at the moment of entry into force of this Agreement, that Directive's provisions shall be implemented within eight years of the entry into force of this Agreement, including minimum safety and health requirements laid down in the Annex to that Directive.

Council Directive 92/104/EEC of 3 December 1992 on the minimum requirements for improving the safety and health protection of workers in surface and underground mineral-extracting industries (twelfth individual directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: for new workplaces, the provisions of Directive 92/104/EEC shall be implemented within six years of the entry into force of this Agreement.

For workplaces already in use at the moment of entry into force of this Agreement, that Directive's provisions shall be implemented within nine years of the entry into force of this Agreement, including minimum safety and health requirements laid down in the Annex to that Directive.

Council Directive 98/24/EC of 7 April 1998 on the protection of the health and safety of workers from the risks related to chemical agents at work (fourteenth individual directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: the provisions of Directive 98/24/EC shall be implemented within nine years of the entry into force of this Agreement.

Directive 1999/92/EC of the European Parliament and of the Council of 16 December 1999 on minimum requirements for improving the safety and health protection of workers potentially at risk from explosive atmospheres (fifteenth individual directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: the provisions of Directive 1999/92/EC shall be implemented within eight years of the entry into force of this Agreement.

Directive 2002/44/EC of the European Parliament and of the Council of 25 June 2002 on the minimum health and safety requirements regarding the exposure of workers to the risk arising from physical agents (vibration) (sixteenth individual directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: the provisions of Directive 2002/44/EC shall be implemented within seven years of the entry into force of this Agreement.

Directive 2003/10/EC of the European Parliament and of the Council of 6 February 2003 on the minimum health and safety requirements regarding the exposure of workers to the risk arising from physical agents (noise) (seventeenth individual directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: the provisions of Directive 2003/10/EC shall be implemented within nine years of the entry into force of this Agreement.

Directive 2004/40/EC of the European Parliament and of the Council of 29 April 2004 on the minimum health and safety requirements regarding the exposure of workers to the risks arising from physical agents (electromagnetic fields) (eighteenth individual Directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: the provisions of Directive 2004/40/EC shall be implemented within nine years of the entry into force of this Agreement.

Directive 2006/25/EC of the European Parliament and of the Council of 5 April 2006 on the minimum health and safety requirements regarding the exposure of workers to risks arising from physical agents (artificial optical radiation) (nineteenth individual Directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: the provisions of Directive 2006/25/EC shall be implemented within eight years of the entry into force of this Agreement.

Council Directive 93/103/EC of 23 November 1993 concerning the minimum safety and health requirements for work on board fishing vessels (thirteenth individual directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: the provisions of Directive 93/103/EC shall be implemented within eight years of the entry into force of this Agreement.

Council Directive 92/29/EEC of 31 March 1992 on the minimum safety and health requirements for improved medical treatment on board vessels

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Council Directive 90/269/EEC of 29 May 1990 on the minimum health and safety requirements for the manual handling of loads where there is a risk particularly of back injury to workers (fourth individual directive within the meaning of Article 16(1) of Directive 89/391/EEC)

Timetable: the provisions of Directive 90/269/EEC shall be implemented within eight years of the entry into force of this Agreement.

Commission Directive 91/322/EEC of 29 May 1991 on establishing indicative limit values by implementing Council Directive 80/1107/EEC on the protection of workers from the risks related to exposure to chemical, physical and biological agents at work

Timetable: the provisions of Directive 91/322/EEC shall be implemented within nine years of the entry into force of this Agreement.

Commission Directive 2000/39/EC of 8 June 2000 establishing a first list of indicative occupational exposure limit values in implementation of Council Directive 98/24/EC on the protection of the health and safety of workers from the risks related to chemical agents at work

Timetable: the provisions of Directive 2000/39/EC shall be implemented within nine years of the entry into force of this Agreement.

Commission Directive 2006/15/EC of 7 February 2006 establishing a second list of indicative occupational exposure limit values in implementation of Council Directive 98/24/EC

Timetable: the provisions of Directive 2006/15/EC shall be implemented within nine years of the entry into force of this Agreement.

Commission Directive 2009/161/EU of 17 December 2009 establishing a third list of indicative occupational exposure limit values in implementation of Council Directive 98/24/EC

Timetable: the provisions Directive 2009/161/EU shall be implemented within nine years of the entry into force of this Agreement.

Council Directive 2010/32/EU of 10 May 2010 implementing the Framework Agreement on prevention from sharp injuries in the hospital and healthcare sector concluded by HOSPEEM and EPSU

Timetable: that Directive's provisions shall be implemented within nine years of the entry into force of this Agreement.

ANNEX XXXI

PUBLIC HEALTH

Georgia undertakes to gradually approximate its legislation to the following EU legislation and international instruments within the stipulated timeframes.

Tobacco

Directive 2001/37/EC of the European Parliament and of the Council of 5 June 2001 on the approximation of the laws, regulations and administrative provisions of the Member States concerning the manufacture, presentation and sale of tobacco products

Timetable: that Directive's provisions shall be implemented within six years of the entry into force of this Agreement.

Directive 2003/33/EC of the European Parliament and of the Council of 26 May 2003 on the approximation of the laws, regulations and administrative provisions of the Member States relating to the advertising and sponsorship of tobacco products

Timetable: that Directive's provisions shall be implemented within four years of the entry into force of this Agreement.

Council Recommendation of 2 December 2002 on the prevention of smoking and on initiatives to improve tobacco control (2003/54/EC)

Timetable: not applicable

Council Recommendation of 30 November 2009 on smoke-free environments (2009/C 296/02)

Timetable: not applicable

Communicable diseases

Decision No 2119/98/EC of the European Parliament and of the Council of 24 September 1998 setting up a network for the epidemiological surveillance and control of communicable diseases in the Community

Timetable: that Decision's provisions shall be implemented within three years of the entry into force of this Agreement.

Commission Decision 2000/96/EC of 22 December 1999 on the communicable diseases to be progressively covered by the Community network under Decision No 2119/98/EC of the European Parliament and of the Council

Timetable: the provisions of Decision 2000/96/EC shall be implemented within three years of the entry into force of this Agreement.

Commission Decision 2002/253/EC of 19 March 2002 laying down case definitions for reporting communicable diseases to the Community network under Decision No 2119/98/EC of the European Parliament and of the Council

Timetable: the provisions of Decision 2002/253/EC shall be implemented within three years of the entry into force of this Agreement.

Commission Decision 2000/57/EC of 22 December 1999 on the early warning and response system for the prevention and control of communicable diseases under Decision No 2119/98/EC of the European Parliament and of the Council

Timetable: the provisions of Decision 2000/57/EC shall be implemented within one year of the entry into force of this Agreement.

Blood

Directive 2002/98/EC of the European Parliament and of the Council of 27 January 2003 setting standards of quality and safety for the collection, testing, processing, storage and distribution of human blood and blood components

Timetable: the provisions of Directive 2002/98/EC shall be implemented within five years of the entry into force of this Agreement.

Commission Directive 2004/33/EC of 22 March 2004 implementing Directive 2002/98/EC of the European Parliament and of the Council as regards certain technical requirements for blood and blood components

Timetable: the provisions of Directive 2004/33/EC shall be implemented within five years of the entry into force of this Agreement.

Commission Directive 2005/62/EC of 30 September 2005 implementing Directive 2002/98/EC of the European Parliament and of the Council as regards Community standards and specifications relating to a quality system for blood establishments

Timetable: the provisions of Directive 2005/62/EC shall be implemented within five years of the entry into force of this Agreement.

Commission Directive 2005/61/EC of 30 September 2005 implementing Directive 2002/98/EC of the European Parliament and of the Council as regards traceability requirements and notification of serious adverse reactions and events

Timetable: the provisions of Directive 2005/61/EC shall be implemented within five years of the entry into force of this Agreement.

Organs, tissues and cells

Directive 2004/23/EC of the European Parliament and of the Council of 31 March 2004 on setting standards of quality and safety for the donation, procurement, testing, processing, preservation, storage and distribution of human tissues and cells

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Commission Directive 2006/17/EC of 8 February 2006 implementing Directive 2004/23/EC of the European Parliament and of the Council as regards certain technical requirements for the donation, procurement and testing of human tissues and cells

Timetable: the provisions of Directive 2006/17/EC shall be implemented within five years of the entry into force of this Agreement.

Commission Directive 2006/86/EC of 24 October 2006 implementing Directive 2004/23/EC of the European Parliament and of the Council as regards traceability requirements, notification of serious adverse reactions and events and certain technical requirements for the coding, processing, preservation, storage and distribution of human tissues and cells

Timetable: the provisions of Directive 2006/86/EC shall be implemented within five years of the entry into force of this Agreement.

Directive 2010/53/EU of the European Parliament and of the Council of 7 July 2010 on standards of quality and safety of human organs intended for transplantation

Timetable: that Directive's provisions shall be implemented within five years of the entry into force of this Agreement.

Mental health - Drug dependence

Council Recommendation of 18 June 2003 on the prevention and reduction of health-related harm associated with drug dependence (2003/488/EC)

Timetable: not applicable

Alcohol

Council Recommendation of 5 June 2001 on the drinking of alcohol by young people, in particular children and adolescents (2001/458/EC)

Timetable: not applicable

Cancer

Council Recommendation of 2 December 2003 on cancer screening (2003/878/EC)

Timetable: not applicable

Prevention of injury and promotion of safety

Council Recommendation of 31 May 2007 on the prevention of injury and the promotion of safety (2007/C 164/01)

Timetable: not applicable

ANNEX XXXII

EDUCATION, TRAINING AND YOUTH

Decision No 2241/2004/EC of the European Parliament and of the Council of 15 December 2004 on a single Community framework for the transparency of qualifications and competences (Europass)

Council Recommendation of 24 September 1998 on European cooperation in quality assurance in higher education (98/561/EC)

Recommendation of European Parliament and of the Council of 15 February 2006 on further European cooperation on quality assurance in higher education (2006/143/EC)

Recommendation of European Parliament and of the Council of 18 December 2006 on key competences for lifelong learning (2006/962/EEC)

Recommendation of European Parliament and of the Council of 23 April 2008 on the establishment of the European Qualifications Framework for lifelong learning (2008/C 111/01)

Recommendation of European Parliament and of the Council of 18 June 2009 on the establishment of a European Credit System for Vocational Education and Training (ECVET) (2009/C 155/02)

Recommendation of European Parliament and of the Council of 18 June 2009 on the establishment of a European Quality Assurance Reference Framework for Vocational Education and Training (2009/C 155/01)

ANNEX XXXIII

COOPERATION IN THE AUDIO-VISUAL AND MEDIA FIELDS

Georgia undertakes to gradually approximate its legislation to the following EU legislation and international instruments within the stipulated timeframes.

Directive 2010/13/EU of the European Parliament and of the Council of 10 March 2010 on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the provision of audiovisual media services (Audiovisual Media Services Directive)

Timetable: that Directive's provisions shall be implemented within three years of the entry into force of this Agreement, except for Article 23 of this Directive which shall be implemented within five years.

ANNEX XXXIV

ANTI-FRAUD AND CONTROL PROVISIONS

Georgia undertakes to gradually approximate its legislation to the following EU legislation and international instruments within the stipulated timeframes.

EU Convention of 26 July 1995 on the protection of the European Communities' financial interests; the following provisions of that Convention shall apply:

Timetable: those provisions of that Convention shall be implemented within four years of the entry into force of this Agreement.

Protocol to the Convention on the protection of the European Communities' financial interests; the following provisions of that Protocol shall apply:

Timetable: those provisions of that Protocol shall be implemented within four years of the entry into force of this Agreement.

Second Protocol to the Convention on the protection of the European Communities' financial interests; the following provisions of that Protocol shall apply:

Timetable: those provisions of that Protocol shall be implemented within four years of the entry into force of this Agreement.

PROTOCOL I

Concerning the definition of the concept of ‘Originating products’ and methods of administrative cooperation

TABLE OF CONTENTS
TITLE I	GENERAL PROVISIONS
Article 1	Definitions
TITLE II	DEFINITION OF THE CONCEPT OF ‘ORIGINATING PRODUCTS’
Article 2	General requirements
Article 3	Cumulation of origin
Article 4	Wholly obtained products
Article 5	Sufficiently worked or processed products
Article 6	Insufficient working or processing
Article 7	Unit of qualification
Article 8	Accessories, spare parts and tools
Article 9	Sets
Article 10	Neutral elements
TITLE III	TERRITORIAL REQUIREMENTS
Article 11	Principle of territoriality
Article 12	Direct transport
Article 13	Exhibitions
TITLE IV	DRAWBACK OR EXEMPTION
Article 14	Prohibition of drawback of, or exemption from, customs duties
TITLE V	PROOF OF ORIGIN
Article 15	General requirements
Article 16	Procedure for the issue of a movement certificate EUR.1
Article 17	Movement certificates EUR.1 issued retrospectively
Article 18	Issue of a duplicate movement certificate EUR.1
Article 19	Issue of movement certificates EUR.1 on the basis of a proof of origin issued or made out previously
Article 20	Accounting segregation
Article 21	Conditions for making out an origin declaration
Article 22	Approved exporter
Article 23	Validity of proof of origin
Article 24	Submission of proof of origin
Article 25	Importation by instalments
Article 26	Exemptions from proof of origin
Article 27	Supporting documents
Article 28	Preservation of proof of origin and supporting documents
Article 29	Discrepancies and formal errors
Article 30	Amounts expressed in euro
TITLE VI	ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION
Article 31	Administrative cooperation
Article 32	Verification of proofs of origin
Article 33	Dispute settlement
Article 34	Penalties
Article 35	Free zones
TITLE VII	CEUTA AND MELILLA
Article 36	Application of this Protocol
Article 37	Special conditions
TITLE VIII	FINAL PROVISIONS
Article 38	Amendments to this Protocol
Article 39	Transitional provisions for goods in transit or storage
	List of Annexes to this Protocol
Annex I	Introductory notes to the list in Annex II to Protocol I
Annex II	List of working or processing required to be carried out on non-originating materials in order for the product manufactured to obtain originating status
Annex III	Specimens of movement certificate EUR.1 and application for a movement certificate EUR.1
Annex IV	Text of the origin declaration
	Joint Declarations
	Joint declaration concerning the Principality of Andorra
	Joint declaration concerning the Republic of San Marino
	Joint declaration concerning the revision of the rules of origin contained in Protocol I concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation

TITLE I

GENERAL PROVISIONS

Article 1

Definitions

For the purposes of this Protocol:

TITLE II

DEFINITION OF THE CONCEPT OF ‘ORIGINATING PRODUCTS’

Article 2

General requirements

For the purpose of implementing this Agreement, the following products shall be considered as originating in a Party:

Article 3

Cumulation of origin

1.  Without prejudice to the provisions of Article 2 of this Protocol, products shall be considered as originating in the exporting Party if they are obtained there, incorporating materials originating in the other Party or incorporating materials originating in Turkey to which the Decision No 1/95 of the EC-Turkey Association Council of 22 December 1995 ( 82 ) applies, provided that the working or processing carried out in the exporting Party goes beyond the operations referred to in Article 6 of this Protocol. It shall not be necessary for such materials to have undergone sufficient working or processing.

2.  Where the working or processing carried out in the exporting Party does not go beyond the operations referred to in Article 6, the product obtained shall be considered as originating in the exporting Party only where the value added there is greater than the value of the materials used originating in the other Party or in Turkey. If this is not so, the product obtained shall be considered as originating in Turkey or in the other Party, depending on which of them accounts for the highest value of originating materials used in the manufacture in the exporting Party.

3.  Products, originating in a Party or in Turkey, which do not undergo any working or processing in the exporting Party, retain their origin if exported into the other Party.

4.  The cumulation provided for materials originating in Turkey may be applied only provided that:

5.  The cumulation provided for in this Article shall apply from the date indicated in the notice published in the Official Journal of the European Union (C series).

6.  The Parties shall provide each other with details of the agreements, including their dates of entry into force, which are applied with countries referred to in paragraphs 1 and 2.

Article 4

Wholly obtained products

1.  The following shall be considered as wholly obtained in a Party:

2.  The terms ‘its vessels’ and ‘its factory ships’ in points (f) and (g) of paragraph 1 shall apply only to vessels and factory ships:

Article 5

Sufficiently worked or processed products

1.  For the purposes of Article 2, products which are not wholly obtained shall be considered to be sufficiently worked or processed when the conditions set out in the list in Annex II to this Protocol are fulfilled.

Those conditions indicate the working or processing which must be carried out on non-originating materials used in manufacturing and apply only in relation to such materials. It follows that if a product which has acquired originating status by fulfilling the conditions set out in the list is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture.

2.  Notwithstanding paragraph 1, non-originating materials which, according to the conditions set out in the list in Annex II to this Protocol, should not be used in the manufacture of a product may nevertheless be used, provided that:

This paragraph shall not apply to products falling within Chapters 50 to 63 of the Harmonised System.

3.  Paragraphs 1 and 2 of this Article shall apply subject to the provisions of Article 6.

Article 6

Insufficient working or processing

1.  Without prejudice to paragraph 2 of this Article, the following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 5 are satisfied:

2.  All operations carried out in a Party on a given product shall be considered together when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of paragraph 1.

Article 7

Unit of qualification

1.  The unit of qualification for the application of the provisions of this Protocol shall be the particular product which is considered as the basic unit when determining classification using the nomenclature of the Harmonised System.

It follows that:

2.  Where, under General Rule 5 of the Harmonised System, packaging is included with the product for classification purposes, it shall be included for the purposes of determining origin.

Article 8

Accessories, spare parts and tools

Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle, which are part of the normal equipment and included in the price thereof or which are not separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question.

Article 9

Sets

Sets, as defined in General Rule 3 of the Harmonised System, shall be regarded as originating when all component products are originating. Nevertheless, when a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating, provided that the value of the non-originating products does not exceed 15 % of the ex-works price of the set.

Article 10

Neutral elements

In order to determine whether a product is an originating product, it shall not be necessary to determine the origin of the following which might be used in its manufacture:

TITLE III

TERRITORIAL REQUIREMENTS

Article 11

Principle of territoriality

1.  Except as provided for in Article 3 and in paragraph 3 of this Article the conditions for acquiring originating status set out in Title II shall be fulfilled without interruption in a Party.

2.  Except as provided for in Article 3, where originating goods exported from a Party to another country return, they shall be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that:

3.  The acquisition of originating status in accordance with the conditions set out in Title II shall not be affected by working or processing done outside a Party on materials exported from the Party and subsequently reimported there, provided that:

and

4.  For the purposes of paragraph 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside a Party. But where, in the list in Annex II to this Protocol, a rule setting a maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end-product, the total value of the non-originating materials incorporated in the territory of the party concerned, taken together with the total added value acquired outside the Party by applying the provisions of this Article, shall not exceed the stated percentage.

5.  For the purposes of applying the provisions of paragraphs 3 and 4, ‘total added value’ shall be taken to mean all costs arising outside a Party, including the value of the materials incorporated there.

6.  The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfill the conditions set out in the list in Annex II to this Protocol or which can be considered sufficiently worked or processed only if the general tolerance fixed in Article 5(2) is applied.

7.  The provisions of paragraphs 3 and 4 of this Article shall not apply to products of Chapters 50 to 63 of the Harmonised System.

8.  Any working or processing of the kind covered by the provisions of this Article and done outside a Party shall be done under the outward processing arrangements, or similar arrangements.

Article 12

Direct transport

1.  The preferential treatment provided for under this Agreement shall apply only to products satisfying the requirements of this Protocol which are transported directly between the Parties or through the territory of Turkey. However, products constituting one single consignment may be transported through other territories with, should the occasion arise, trans-shipment or temporary warehousing in such territories, provided that they remain under the surveillance of the customs authorities in the country of transit or warehousing and do not undergo operations other than unloading, reloading or any operation designed to preserve them in good condition.

Originating products may be transported by pipeline across territory other than that of the Parties acting as exporting and importing parties.

2.  Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied to the customs authorities of the importing Party by the production of:

Article 13

Exhibitions

1.  Originating products, sent for exhibition in a country other than a Party and sold after the exhibition for importation in a Party, shall benefit on importation from the provisions of this Agreement provided it is shown to the satisfaction of the customs authorities that:

2.  A proof of origin shall be issued or made out in accordance with the provisions of Title V and submitted to the customs authorities of the importing Party in the normal manner. The name and address of the exhibition shall be indicated thereon. Where necessary, additional documentary evidence of the conditions under which they have been exhibited may be required.

3.  Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organised for private purposes in shops or business premises with a view to the sale of foreign products, and during which the products remain under customs control.

TITLE IV

DRAWBACK OR EXEMPTION

Article 14

Prohibition of drawback of, or exemption from, customs duties

1.  Non-originating materials used in the manufacture of products originating in a Party for which a proof of origin is issued or made out in accordance with the provisions of Title V shall not be subject in the Party to drawback of, or exemption from, customs duties of whatever kind.

2.  The prohibition in paragraph 1 shall apply to any arrangement for refund, remission or non-payment, partial or complete, of customs duties or charges having an equivalent effect, applicable in a Party to materials used in the manufacture, where such refund, remission or non-payment applies, expressly or in effect, when products obtained from the said materials are exported and not when they are retained for home use there.

3.  The exporter of products covered by a proof of origin shall be prepared to submit at any time, upon request from the customs authorities, all appropriate documents proving that no drawback has been obtained in respect of the non-originating materials used in the manufacture of the products concerned and that all customs duties or charges having equivalent effect applicable to such materials have actually been paid.

4.  The provisions of paragraphs 1, 2 and 3 of this Article shall also apply in respect of packaging within the meaning of Article 7 paragraph 2, accessories, spare parts and tools within the meaning of Article 8 and products in a set within the meaning of Article 9 when such items are non-originating.

5.  The provisions of paragraphs 1 to 4 shall apply only in respect of materials which are of the kind to which this Protocol applies.

TITLE V

PROOF OF ORIGIN

Article 15

General requirements

1.  Products originating in a Party shall, on importation into the other Party, benefit from the provisions of this Agreement upon submission of one of the following proofs of origin:

2.  Notwithstanding paragraph 1 of this Article, originating products within the meaning of this Protocol shall, in the cases specified in Article 26, benefit from the provisions of this Agreement without it being necessary to submit any of the proofs of origin referred to in paragraph 1 of this Article.

Article 16

Procedure for the issue of a movement certificate EUR.1

1.  A movement certificate EUR.1 shall be issued by the customs authorities of the exporting Party on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorised representative.

2.  For this purpose, the exporter or his authorised representative shall fill in both the movement certificate EUR.1 and the application form, specimens of which appear in Annex III to this Protocol. These forms shall be completed in one of the languages in which this Agreement is drawn up and in accordance with the provisions of the national law of the exporting country. If the completion of the forms is done in handwriting, they shall be completed in ink in printed characters. The description of the products shall be given in the box reserved for this purpose without leaving any blank lines. Where the box is not completely filled, a horizontal line shall be drawn below the last line of the description, the empty space being crossed through.

3.  The exporter applying for the issue of a movement certificate EUR.1 shall be prepared to submit at any time, at the request of the customs authorities of the exporting Party where the movement certificate EUR.1 is issued, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Protocol.

4.  Without prejudice to paragraph 5, a movement certificate EUR.1 shall be issued by the customs authorities of a Member State of the EU or of Georgia if the products concerned can be considered as products originating in the EU or in Georgia or in Turkey and fulfil the other requirements of this Protocol.

5.  The customs authorities issuing movement certificates EUR.1 shall take any steps necessary to verify the originating status of the products and the fulfilment of the other requirements of this Protocol. For this purpose, they shall have the right to call for any evidence and to carry out any inspection of the exporter's accounts or any other check considered appropriate. They shall also ensure that the forms referred to in paragraph 2 are duly completed. In particular, they shall check whether the space reserved for the description of the products has been completed in such a manner as to exclude all possibility of fraudulent additions.

6.  The date of issue of the movement certificate EUR.1 shall be indicated in Box 11 of the certificate.

7.  A movement certificate EUR.1 shall be issued by the customs authorities and made available to the exporter as soon as actual exportation has been effected or ensured.

Article 17

Movement certificates EUR.1 issued retrospectively

1.  Notwithstanding Article 16(7), a movement certificate EUR.1 may exceptionally be issued after exportation of the products to which it relates if:

2.  For the implementation of paragraph 1, the exporter shall indicate in his application the place and date of exportation of the products to which the movement certificate EUR.1 relates, and state the reasons for his request.

3.  The customs authorities may issue a movement certificate EUR.1 retrospectively only after verifying that the information supplied in the exporter's application complies with that in the corresponding file.

4.  Movement certificates EUR.1 issued retrospectively shall be endorsed with the following phrase in English:

‘ISSUED RETROSPECTIVELY’

5.  The endorsement referred to in paragraph 4 shall be inserted in Box 7 of the movement certificate EUR.1.

Article 18

Issue of a duplicate movement certificate EUR.1

1.  In the event of theft, loss or destruction of a movement certificate EUR.1, the exporter may apply to the customs authorities which issued it for a duplicate made out on the basis of the export documents in their possession.

2.  The duplicate issued in this way shall be endorsed with the following word in English:

‘DUPLICATE’

3.  The endorsement referred to in paragraph 2 shall be inserted in Box 7 of the duplicate movement certificate EUR.1.

4.  The duplicate, which shall bear the date of issue of the original movement certificate EUR.1, shall take effect as from that date.

Article 19

Issue of movement certificates EUR.1 on the basis of a proof of origin issued or made out previously

When originating products are placed under the control of a customs office in a Party, it shall be possible to replace the original proof of origin by one or more movement certificates EUR.1 for the purpose of sending all or some of these products elsewhere within that Party. The replacement movement certificate(s) EUR.1 shall be issued by the customs office under whose control the products are placed.

Article 20

Accounting segregation

1.  Where considerable cost or material difficulties arise in keeping separate stocks of originating and non-originating materials which are identical and interchangeable, the customs authorities may, at the written request of those concerned, authorise the so-called ‘accounting segregation’ method (hereinafter referred to as the ‘method’) to be used for managing such stocks.

2.  The method shall ensure that, for a specific reference period, the number of products obtained which could be considered as ‘originating’ is the same as that which would have been obtained had there been physical segregation of the stocks.

3.  The customs authorities may make the grant of authorisation referred to in paragraph 1 subject to any conditions deemed appropriate.

4.  The method shall be applied and the application thereof shall be recorded on the basis of the general accounting principles applicable in the country where the product was manufactured.

5.  The beneficiary of the method may make out or apply for proofs of origin, as the case may be, for the quantity of products which may be considered as originating. At the request of the customs authorities, the beneficiary shall provide a statement of how the quantities have been managed.

6.  The customs authorities shall monitor the use made of the authorisation and may withdraw it whenever the beneficiary makes improper use of the authorisation in any manner whatsoever or fails to fulfil any of the other conditions laid down in this Protocol.

Article 21

Conditions for making out an origin declaration

1.  An origin declaration as referred to in point (b) of Article 15(1) may be made out:

2.  Without prejudice to paragraph 3, an origin declaration may be made out if the products concerned can be considered as products originating in the EU or in Georgia and fulfil the other requirements of this Protocol.

3.  The exporter making out an origin declaration shall be prepared to submit at any time, at the request of the customs authorities of the exporting Party, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Protocol.

4.  An origin declaration shall be made out by the exporter by typing, stamping or printing on the invoice, the delivery note or another commercial document, the declaration, the text of which appears in Annex IV to this Protocol, using one of the linguistic versions set out in that Annex and in accordance with the provisions of the national law of the exporting country. If the declaration is handwritten, it shall be written in ink in printed characters.

5.  Origin declarations shall bear the original signature of the exporter in manuscript. However, an approved exporter within the meaning of Article 22 shall not be required to sign such declarations provided that he gives the customs authorities of the exporting Party a written undertaking that he accepts full responsibility for any origin declaration which identifies him as if it had been signed in manuscript by him.

6.  An origin declaration may be made out by the exporter when the products to which it relates are exported, or after exportation on condition that it is presented in the importing country at the latest two years after the importation of the products to which it relates.

Article 22

Approved exporter

1.  The customs authorities of the exporting Party may authorise any exporter (hereinafter referred to as ‘approved exporter’), who makes frequent shipments of products in accordance with the provisions of this Protocol to make out origin declarations irrespective of the value of the products concerned. An exporter seeking such authorisation shall offer to the satisfaction of the customs authorities all guarantees necessary to verify the originating status of the products as well as the fulfilment of the other requirements of this Protocol.

2.  The customs authorities may grant the status of approved exporter subject to any conditions which they consider appropriate.

3.  The customs authorities shall grant to the approved exporter a customs authorisation number which shall appear on the origin declaration.

4.  The customs authorities shall monitor the use of the authorisation by the approved exporter.

5.  The customs authorities may withdraw the authorisation at any time. They shall do so where the approved exporter no longer offers the guarantees referred to in paragraph 1, no longer fulfils the conditions referred to in paragraph 2 or otherwise makes an incorrect use of the authorisation.

Article 23

Validity of proof of origin

1.  A proof of origin shall be valid for four months from the date of issue in the exporting Party, and shall be submitted within that period to the customs authorities of the importing Party.

2.  Proofs of origin which are submitted to the customs authorities of the importing Party after the final date for presentation specified in paragraph 1 may be accepted for the purpose of applying preferential treatment, where the failure to submit these documents by the final date set is due to exceptional circumstances.

3.  In other cases of belated presentation, the customs authorities of the importing Party may accept the proofs of origin where the products have been submitted before the said final date.

Article 24

Submission of proof of origin

Proofs of origin shall be submitted to the customs authorities of the importing Party in accordance with the procedures applicable in that country. The said authorities may require a translation of a proof of origin and may also require the import declaration to be accompanied by a statement from the importer to the effect that the products meet the conditions required for the implementation of this Agreement.

Article 25

Importation by instalments

Where, at the request of the importer and subject to the conditions laid down by the customs authorities of the importing Party, dismantled or non-assembled products within the meaning of General Rule 2(a) of the Harmonised System falling within Sections XVI and XVII or headings 7308 and 9406 of the Harmonised System are imported by instalments, a single proof of origin for such products shall be submitted to the customs authorities upon importation of the first instalment.

Article 26

Exemptions from proof of origin

1.  Products sent as small packages from private persons to private persons or forming part of travellers' personal luggage shall be admitted as originating products without requiring the submission of a proof of origin, provided that such products are not imported by way of trade and have been declared as meeting the requirements of this Protocol and where there is no doubt as to the veracity of such a declaration. In the case of products sent by post, that declaration may be made on the customs declaration CN22/CN23 or on a sheet of paper annexed to that document.

2.  Imports which are occasional and consist solely of products for the personal use of the recipients or travellers or their families shall not be considered as imports by way of trade if it is evident from the nature and quantity of the products that no commercial purpose is in view.

3.  Furthermore, the total value of these products shall not exceed EUR 500 in the case of small packages or EUR 1 200 in the case of products forming part of travellers' personal luggage.

Article 27

Supporting documents

The documents referred to in Article 16(3) and Article 21(3) used for the purpose of proving that products covered by a movement certificate EUR.1 or an origin declaration may be considered as products originating in a Party and fulfil the other requirements of this Protocol may consist inter alia of the following:

Article 28

Preservation of proof of origin and supporting documents

1.  The exporter applying for the issue of a movement certificate EUR.1 shall keep for at least three years the documents referred to in Article 16(3).

2.  The exporter making out an origin declaration shall keep for at least three years a copy of this origin declaration as well as the documents referred to in Article 21(3).

3.  The customs authorities of the exporting Party issuing a movement certificate EUR.1 shall keep for at least three years the application form referred to in Article 16(2).

4.  The customs authorities of the importing Party shall keep for at least three years the movement certificates EUR.1 and the origin declarations submitted to them.

Article 29

Discrepancies and formal errors

1.  The discovery of slight discrepancies between the statements made in the proof of origin and those made in the documents submitted to the customs office for the purpose of carrying out the formalities for importing the products shall not, ipso facto, render the proof of origin null and void if it is duly established that this document does correspond to the products submitted.

2.  Obvious formal errors such as typing errors on a proof of origin shall not cause this document to be rejected if those errors are not such as to create doubts concerning the correctness of the statements made in this document.

Article 30

Amounts expressed in euro

1.  For the application of the provisions of point (b) of Article 21(1) and Article 26(3) in cases where products are invoiced in a currency other than euro, amounts in the national currencies of the Parties equivalent to the amounts expressed in euro shall be fixed annually by each of the countries concerned.

2.  A consignment shall benefit from the provisions of point (b) of Article 21(1) or Article 26(3) by reference to the currency in which the invoice is drawn up, according to the amount fixed by the country concerned.

3.  The amounts to be used in any given national currency shall be the equivalent in that currency of the amounts expressed in euro as at the first working day of October. The amounts shall be communicated to the European Commission by 15 October and shall apply from 1 January the following year. The European Commission shall notify all countries concerned of the relevant amounts.

4.  A country may round up or down the amount resulting from the conversion into its national currency of an amount expressed in euro. The rounded-off amount may not differ from the amount resulting from the conversion by more than 5 %. A country may retain unchanged its national currency equivalent of an amount expressed in euro if, at the time of the annual adjustment provided for in paragraph 3, the conversion of that amount, prior to any rounding-off, results in an increase of less than 15 % in the national currency equivalent. The national currency equivalent may be retained unchanged if the conversion were to result in a decrease in that equivalent value.

5.  The amounts expressed in euro shall be reviewed by the Customs Sub-Committee at the request of any Party. When carrying out this review, the Customs Sub-Committee shall consider the desirability of preserving the effects of the limits concerned in real terms. For this purpose, it may decide to modify the amounts expressed in euro.

TITLE VI

ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

Article 31

Administrative cooperation

1.  The customs authorities of the Parties shall provide each other, through the European Commission, with specimen impressions of stamps used in their customs offices for the issue of movement certificates EUR.1, and with the addresses of the customs authorities responsible for verifying those certificates and origin declarations.

2.  In order to ensure the proper application of this Protocol, the Parties shall assist each other, through the competent customs administrations, in checking the authenticity of the movement certificates EUR.1, the origin declarations and the correctness of the information given in these documents.

Article 32

Verification of proofs of origin

1.  Subsequent verifications of proofs of origin shall be carried out at random or whenever the customs authorities of the importing Party have reasonable doubts as to the authenticity of such documents, the originating status of the products concerned or the fulfilment of the other requirements of this Protocol.

2.  For the purposes of implementing the provisions of paragraph 1, the customs authorities of the importing Party shall return the movement certificate EUR.1 and the invoice, if it has been submitted, the origin declaration, or a copy of these documents, to the customs authorities of the exporting Party giving, where appropriate, the reasons for the request for verification. Any documents and information obtained suggesting that the information given on the proof of origin is incorrect shall be forwarded in support of the request for verification.

3.  The verification shall be carried out by the customs authorities of the exporting Party. For this purpose, they shall have the right to call for any evidence and to carry out any inspection of the exporter's accounts or any other check considered appropriate.

4.  If the customs authorities of the importing Party decide to suspend the granting of preferential treatment to the products concerned while awaiting the results of the verification, release of the products shall be offered to the importer subject to any precautionary measures judged necessary.

5.  The customs authorities requesting the verification shall be informed of the results thereof as soon as possible. These results shall indicate clearly whether the documents are authentic and whether the products concerned may be considered as products originating in a Party and fulfil the other requirements of this Protocol.

6.  If in cases of reasonable doubt there is no reply within ten months of the date of the verification request or if the reply does not contain sufficient information to determine the authenticity of the document in question or the real origin of the products, the requesting customs authorities shall, except in exceptional circumstances, refuse entitlement to the preferences.

Article 33

Dispute settlement

1.  Where disputes arise in relation to the verification procedures provided for in Article 32 of this Protocol which cannot be settled between the customs authorities requesting a verification and the customs authorities responsible for carrying out this verification, those disputes shall be submitted to the Association Committee in Trade configuration as set out in Article 408(4) of this Agreement. Chapter 14 (Dispute Settlement) of Title IV (Trade and Trade-related Matters) of this Agreement shall not apply.

2.  Where disputes other than those related to the verification procedures provided for in Article 32 of this Protocol arise in relation to the interpretation of this Protocol, those disputes shall be submitted to the Customs Sub-Committee. A dispute settlement proceeding under Chapter 14 (Dispute Settlement) of Title IV (Trade and Trade-related Matters) of this Agreement may only be initiated, if the Customs Sub-Committee has failed to resolve the dispute within six months from the date on which the dispute was submitted to the Customs Sub-Committee.

3.  In all cases the settlement of disputes between the importer and the customs authorities of the importing Party shall take place under the legislation of that Party.

Article 34

Penalties

Penalties shall be imposed on any person who draws up, or causes to be drawn up, a document which contains incorrect information for the purpose of obtaining a preferential treatment for products.

Article 35

Free zones

1.  The Parties shall take all necessary steps to ensure that products traded under cover of a proof of origin, which in the course of transport use a free zone situated in their territory, are not substituted by other goods and do not undergo handling other than normal operations designed to prevent their deterioration.

2.  By way of derogation from paragraph 1 of this ►C1  Article when products ◄ originating in a Party are imported into a free zone under cover of a proof of origin and undergo treatment or processing, the authorities concerned shall issue a new movement certificate EUR.1 at the exporter's request, if the treatment or processing undergone complies with this Protocol.

TITLE VII

CEUTA AND MELILLA

Article 36

Application of this Protocol

1.  The term ‘European Union’ does not cover Ceuta and Melilla.

2.  Products originating in Georgia, when imported into Ceuta or Melilla, shall enjoy in all respects the same customs regime as that which is applied to products originating in the customs territory of the EU under Protocol 2 of the Act of Accession of Spain and Portugal to the European Communities. Georgia shall grant to imports of products covered by this Agreement and originating in Ceuta and Melilla the same customs regime as that which is granted to products imported from and originating in the EU.

3.  For the purpose of the application of paragraph 2 of this Article with regard to products originating in Ceuta and Melilla, this Protocol shall apply mutatis mutandis subject to the special conditions set out in Article 37.

Article 37

Special conditions

1.  Provided that they have been transported directly in accordance with the provisions of Article 12, the following shall be considered as:

2.  Ceuta and Melilla shall be considered as a single territory.

3.  The exporter or his authorised representative shall enter ‘Georgia’ and ‘Ceuta and Melilla’ in Box 2 of movement certificates EUR.1 or on origin declarations. In addition, in the case of products originating in Ceuta and Melilla, this shall be indicated in Box 4 of movement certificates EUR.1 or on origin declarations.

4.  The Spanish customs authorities shall be responsible for the application of this Protocol in Ceuta and Melilla.

TITLE VIII

FINAL PROVISIONS

Article 38

Amendments to this Protocol

1.  The Customs Sub-Committee may decide to amend the provisions of this Protocol.

2.  The Customs Sub-Committee shall, within one year following accession of Georgia to the Regional Convention on Pan-Euro-Mediterranean preferential rules of origin, replace the rules of origin set out in this Protocol by those appended to that Convention.

Article 39

Transitional provisions for goods in transit or storage

The provisions of this Agreement may be applied to goods which comply with the provisions of this Protocol and which on the date of entry into force of this Agreement are either in transit, in the Parties, in temporary storage in customs warehouses or in free zones, subject to the submission to the customs authorities of the importing Party, within four months of that date, of a proof of origin made out retrospectively together with the documents showing that the goods have been transported directly in accordance with Article 13.

ANNEX I TO PROTOCOL I

INTRODUCTORY NOTES TO THE LIST IN ANNEX II TO PROTOCOL II

Note 1:

The list sets out the conditions required for all products to be considered as sufficiently worked or processed within the meaning of Article 5 of this Protocol.

Note 2:

Note 3:

Example:

An engine of heading 8407 , for which the rule states that the value of the non-originating materials which may be incorporated may not exceed 40 % of the ex-works price, is made from ‘other alloy steel roughly shaped by forging’ of heading ex  72 24 .

If this forging has been forged in the EU from a non-originating ingot, it has already acquired originating status by virtue of the rule for heading ex  72 24 in the list. The forging can then count as originating in the value-calculation for the engine, regardless of whether it was produced in the same factory or in another factory in the EU. The value of the non-originating ingot is thus not taken into account when adding up the value of the non-originating materials used.

However, the expression ‘Manufacture from materials of any heading, including other materials of heading’ or ‘Manufacture from materials of any heading, including other materials of the same heading as the product’ means that materials of any heading(s) may be used, except those of the same description as the product as given in column 2 of the list.

Example:

The rule for fabrics of headings 5208 to 5212 provides that natural fibres may be used and that chemical materials, among other materials, may also be used. This does not mean that both have to be used; it is possible to use one or the other, or both.

Example:

The rule for prepared foods of heading 1904, which specifically excludes the use of cereals and their derivatives, does not prevent the use of mineral salts, chemicals and other additives which are not products from cereals.

However, this does not apply to products which, although they cannot be manufactured from the particular materials specified in the list, can be produced from a material of the same nature at an earlier stage of manufacture.

Example:

In the case of an article of apparel of ex Chapter 62 made from non-woven materials, if the use of only non-originating yarn is allowed for this class of article, it is not possible to start from non-woven cloth – even if non-woven cloths cannot normally be made from yarn. In such cases, the starting material would normally be at the stage before yarn – that is, the fibre stage.

Note 4:

Note 5:

The following are the basic textile materials:

Example:

A yarn, of heading 5205 , made from cotton fibres of heading 5203 and synthetic staple fibres of heading 5506 , is a mixed yarn. Therefore, non-originating synthetic staple fibres which do not satisfy the rules of origin (which require manufacture from chemical materials or textile pulp) may be used, provided that their total weight does not exceed 10 % of the weight of the yarn.

Example:

A woollen fabric, of heading 5112 , made from woollen yarn of heading 5107 and synthetic yarn of staple fibres of heading 5509 , is a mixed fabric. Therefore, synthetic yarn which does not satisfy the rules of origin (which require manufacture from chemical materials or textile pulp), or woollen yarn which does not satisfy the rules of origin (which require manufacture from natural fibres, not carded or combed or otherwise prepared for spinning), or a combination of the two, may be used, provided that their total weight does not exceed 10 % of the weight of the fabric.

Example:

Tufted textile fabric, of heading 5802 , made from cotton yarn of heading 5205 and cotton fabric of heading 5210 , is a only mixed product if the cotton fabric is itself a mixed fabric made from yarns classified in two separate headings, or if the cotton yarns used are themselves mixtures.

Example:

If the tufted textile fabric concerned had been made from cotton yarn of heading 5205 and synthetic fabric of heading 5407 , then, obviously, the yarns used are two separate basic textile materials and the tufted textile fabric is, accordingly, a mixed product.

Note 6:

Example:

If a rule in the list provides that, for a particular textile item (such as trousers), yarn must be used, this does not prevent the use of metal items, such as buttons, because buttons are not classified within Chapters 50 to 63. For the same reason, it does not prevent the use of slide-fasteners, even though slide-fasteners normally contain textiles.

Note 7:

ANNEX II TO PROTOCOL I

LIST OF WORKING OR PROCESSING REQUIRED TO BE CARRIED OUT ON NON-ORIGINATING MATERIALS IN ORDER FOR THE PRODUCT MANUFACTURED TO OBTAIN ORIGINATING STATUS

The products mentioned in the list may not be all covered by this Agreement. It is, therefore, necessary to consult the other parts of this Agreement.

ANNEX III TO PROTOCOL I

SPECIMENS OF MOVEMENT CERTIFICATE EUR.1 AND APPLICATION FOR A MOVEMENT CERTIFICATE EUR.1

Printing instructions

NOTES

ANNEX IV TO PROTOCOL I

TEXT OF THE ORIGIN DECLARATION

The origin declaration, the text of which is given below, must be made out in accordance with the footnotes. However, the footnotes do not have to be reproduced.

Bulgarian version

Износителят на продуктите, обхванати от този документ (митническо разрешение № … ( 83 )) декларира, че освен където ясно е отбелязано друго, тези продукти са с … преференциален произход ( 84 ).

Spanish version

El exportador de los productos incluidos en el presente documento (autorización aduanera no … (83) ) declara que, salvo indicación en sentido contrario, estos productos gozan de un origen preferencial … (84) .

Czech version

Vývozce výrobků uvedených v tomto dokumentu (číslo povolení … (83) ) prohlašuje, že kromě zřetelně označených mají tyto výrobky preferenční původ v … (84) .

Danish version

Eksportøren af varer, der er omfattet af nærværende dokument, (toldmyndighedernes tilladelse nr. … (83) ), erklærer, at varerne, medmindre andet tydeligt er angivet, har præferenceoprindelse i … (84) .

German version

Der Ausführer (Ermächtigter Ausführer; Bewilligungs-Nr. … (83) ) der Waren, auf die sich dieses Handelspapier bezieht, erklärt, dass diese Waren, soweit nicht anderes angegeben, präferenzbegünstigte … (84)  Ursprungswaren sind.

Estonian version

Käesoleva dokumendiga hõlmatud toodete eksportija (tolli kinnitus nr. … (83) ) deklareerib, et need tooted on … (84)  sooduspäritoluga, välja arvatud juhul kui on selgelt näidatud teisiti.

Greek version

Ο εξαγωγέας των προϊόντων που καλύπτονται από το παρόν έγγραφο (άδεια τελωνείου υπ'αριθ. … (83) ) δηλώνει ότι, εκτός εάν δηλώνεται σαφώς άλλως, τα προϊόντα αυτά είναι προτιμησιακής καταγωγής … (84) .

French version

L'exportateur des produits couverts par le présent document (autorisation douanière no … (83) ) déclare que, sauf indication claire du contraire, ces produits ont l'origine préférentielle … (84) .

Croatian version

Izvoznik proizvoda obuhvaćenih ovom ispravom (carinsko ovlaštenje br. … (83) ) izjavljuje da su, osim ako je drukčije izričito navedeno, ovi proizvodi. … (84)  preferencijalnog podrijetla.

Italian version

L'esportatore delle merci contemplate nel presente documento (autorizzazione doganale n. … (83) ) dichiara che, salvo indicazione contraria, le merci sono di origine preferenziale … (84) .

Latvian version

To produktu eksportētājs, kuri ietverti šajā dokumentā (muitas atļauja Nr. … (83) ), deklarē, ka, izņemot tur, kur ir citādi skaidri noteikts, šiem produktiem ir preferenciāla izcelsme … (84) .

Lithuanian version

Šiame dokumente išvardytų produktų eksportuotojas (muitinės liudijimo Nr. … (83) ) deklaruoja, kad, jeigu kitaip nenurodyta, tai yra … (84)  preferencinės kilmės produktai.

Hungarian version

A jelen okmányban szereplő áruk exportőre (vámfelhatalmazási szám: … (83) ) kijelentem, hogy eltérő egyértelmű jelzés hiányában az áruk preferenciális … (84)  származásúak.

Maltese version

L-esportatur tal-prodotti koperti b'dan id-dokument (awtorizzazzjoni tad-dwana nru. … (83) ) jiddikjara li, ħlief fejn indikat b'mod ċar li mhux hekk, dawn il-prodotti huma ta' oriġini preferenzjali … (84) .

Dutch version

De exporteur van de goederen waarop dit document van toepassing is (douanevergunning nr. … (83) ), verklaart dat, behoudens uitdrukkelijke andersluidende vermelding, deze goederen van preferentiële … oorsprong zijn (84) .

Polish version

Eksporter produktów objętych tym dokumentem (upoważnienie władz celnych nr … (83) ) deklaruje, że z wyjątkiem gdzie jest to wyraźnie określone, produkty te mają … (84)  preferencyjne pochodzenie.

Portuguese version

O abaixo-assinado, exportador dos produtos abrangidos pelo presente documento (autorização aduaneira no (83) ), declara que, salvo indicação expressa em contrário, estes produtos são de origem preferencial … (84) .

Romanian version

Exportatorul produselor ce fac obiectul acestui document (autorizația vamală nr. … (83) ) declară că, exceptând cazul în care în mod expres este indicat altfel, aceste produse sunt de origine preferențială … (84) .

Slovenian version

Izvoznik blaga, zajetega s tem dokumentom (pooblastilo carinskih organov št … (83) ) izjavlja, da, razen če ni drugače jasno navedeno, ima to blago preferencialno … (84)  poreklo.

Slovak version

Vývozca výrobkov uvedených v tomto dokumente (číslo povolenia … (83) ) vyhlasuje, že okrem zreteľne označených, majú tieto výrobky preferenčný pôvod v … (84) .

Finnish version

Tässä asiakirjassa mainittujen tuotteiden viejä (tullin lupa n:o … (83) ) ilmoittaa, että nämä tuotteet ovat, ellei toisin ole selvästi merkitty, etuuskohteluun oikeutettuja … alkuperätuotteita (84) .

Swedish version

Exportören av de varor som omfattas av detta dokument (tullmyndighetens tillstånd nr. … (83) ) försäkrar att dessa varor, om inte annat tydligt markerats, har förmånsberättigande … ursprung (84) .

English version

The exporter of the products covered by this document (customs authorization No … (83) ) declares that, except where otherwise clearly indicated, these products are of … (84)  preferential origin.

Georgian version

‘ამ საბუთით (საბაჟოს მიერ გაცემული უფლებამოსილების N… (83) ) წარმოდგენილი საქონლის ექსპორტიორი აცხადებს, რომ ეს საქონელი არის … (84)  შეღავათიანი წარმოშობის თუ სხვა რამ არ არის პირდაპირ მითითებული’

 ( 85 )

(Place and date)

 ( 86 )

(Signature of the exporter, in addition the name of the person signing the declaration has to be indicated in clear script)

Joint declaration concerning the Principality of Andorra

Joint declaration concerning the republic of San Marino

Joint declaration concerning the revision of the rules of origin contained in Protocol I concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation

PROTOCOL II

on Mutual Administrative Assistance in Customs Matters

Article 1

Definitions

For the purposes of this Protocol:

Article 2

Scope

1.  The Parties shall assist each other, in the areas of their competence, in the manner and under the conditions laid down in this Protocol, to ensure the correct application of their customs legislation, in particular by preventing, investigating and combating operations in breach of that legislation.

2.  The assistance in customs matters, as provided for in this Protocol, shall apply to any administrative authority of the Parties which is competent for the application of this Protocol. It shall not prejudice the rules governing mutual assistance in criminal matters. Nor shall it cover exchange of information obtained under powers exercised at the request of a judicial authority, except where the communication of such information is authorised by that authority.

3.  The assistance to recover duties, taxes or fines is not covered by this Protocol.

Article 3

Assistance upon request

1.  Upon request of the requesting authority, the requested authority shall provide the requesting authority with all relevant information which may enable the requesting authority to ensure that customs legislation is correctly applied, including information regarding noted or planned activities which are or could be operations in breach of customs legislation.

2.  Upon request of the requesting authority, the requested authority shall inform the requesting authority of the following:

3.  Upon request of the requesting authority, the requested authority shall, within the framework of its legal or regulatory provisions, take the necessary steps to ensure special surveillance of:

Article 4

Spontaneous assistance

The Parties shall assist each other, on their own initiative and in accordance with their legal or regulatory provisions, if they consider that to be necessary for the correct application of customs legislation, in particular by providing information pertaining to:

Article 5

Delivery and notification

1.  Upon request of the requesting authority, the requested authority shall, in accordance with legal or regulatory provisions applicable to that authority, take all necessary measures in order to deliver any documents or to notify any decisions originating from the requesting authority and falling within the scope of this Protocol, to an addressee residing or established in the territory of the requested authority.

2.  Requests for delivery of documents or notification of decisions shall be made in writing in an official language of the requested authority or in a language acceptable to that authority.

Article 6

Form and substance of requests for assistance

1.  Requests pursuant to this Protocol shall be made in writing. They shall be accompanied by the documents necessary to enable compliance with the request. When required because of the urgency of the situation, oral requests may be accepted, but must be confirmed in writing immediately.

2.  Requests pursuant to paragraph 1 shall include the following information:

3.  Requests shall be submitted in an official language of the requested authority or in a language acceptable to that authority. That requirement shall not apply to any documents that accompany a request under paragraph 1.

4.  If a request does not meet the formal requirements set out in this Article, its correction or completion may be requested and precautionary measures may be ordered in the meantime.

Article 7

Execution of requests

1.  In order to comply with a request for assistance, the requested authority shall proceed, within the limits of its competence and available resources, as though it were acting on its own account or upon request of other authorities of that same Party, by supplying information already in the requested authority's possession, by carrying out appropriate enquiries or by arranging for them to be carried out. This provision shall also apply to any other authority to which the request has been addressed by the requested authority when the latter cannot act on its own.

2.  Requests for assistance shall be executed in accordance with the legal or regulatory provisions of the requested Party.

3.  Duly authorised officials of a Party may, with the agreement of the other Party and subject to the conditions laid down by the latter, be present in the offices of the requested authority or any other concerned authority in accordance with paragraph 1, to obtain information relating to activities that are or may be operations in breach of customs legislation which the requesting authority needs for the purposes of this Protocol.

4.  Duly authorised officials of a Party may, with the agreement of the other Party and subject to the conditions laid down by the latter, be present at enquiries carried out in the latter's territory.

Article 8

Form in which information is to be communicated

1.  The requested authority shall communicate the results of enquiries to the requesting authority in writing together with relevant documents, certified copies or other items.

2.  That information may be in a computerised form.

3.  Original documents shall be transmitted only upon request in cases where certified copies would be insufficient. Those originals shall be returned at the earliest opportunity.

Article 9

Exceptions to the obligation to provide assistance

1.  Assistance may be refused or may be subject to the satisfaction of certain conditions or requirements, in cases where a Party is of the opinion that assistance under this Protocol would:

2.  Assistance may be postponed by the requested authority on the ground that it will interfere with an on-going investigation, prosecution or proceeding. In such a case, the requested authority shall consult with the requesting authority to determine if assistance can be given subject to such terms or conditions as the requested authority may require.

3.  Where the requesting authority seeks assistance which it would itself be unable to provide if so requested, it shall draw attention to that fact in its request. It shall then be for the requested authority to decide how to respond to such a request.

4.  For the cases referred to in paragraphs 1 and 2, the decision of the requested authority and the reasons therefor must be communicated to the requesting authority without delay.

Article 10

Information exchange and confidentiality

1.  Any information communicated in whatsoever form pursuant to this Protocol shall be of a confidential or restricted nature, depending on the rules applicable in each of the Parties. It shall be covered by the obligation of official secrecy and shall enjoy the protection extended to similar information under the relevant laws of the Party that received it and the corresponding provisions applying to the institutions of the Union.

2.  Personal data may be exchanged only where the Party which may receive it undertakes to protect such data in a manner that is considered adequate by the Party that may supply them.

3.  The use, in administrative or judicial proceedings instituted in respect of operations in breach of customs legislation, of information obtained under this Protocol, shall be considered to be for the purposes of this Protocol. Therefore, the Parties may, in their records of evidence, reports and testimonies and in proceedings and charges brought before the courts, use as evidence information obtained and documents consulted in accordance with the provisions of this Protocol. The competent authority which supplied that information or gave access to those documents shall be notified of such use.

4.  The information obtained under this Protocol shall be used solely for the purposes set out in this Protocol. Where one of the Parties wishes to use such information for other purposes, it shall obtain the prior written consent of the requested authority which provided the information. Such use shall then be subject to any restrictions laid down by requested authority.

Article 11

Experts and witnesses

An official of a requested authority may be authorised to appear, within the limitations of the authorisation granted, as an expert or a witness in administrative or judicial proceedings regarding the matters covered by this Protocol, and may produce such objects, documents or certified copies thereof, as may be needed for the proceedings. The request to the official is made by the requesting authority and must indicate specifically before which administrative or judicial authority the official will have to appear, on which matters and in which capacity (title or qualification).

Article 12

Assistance expenses

The Parties shall waive all claims against each other for the reimbursement of expenses incurred pursuant to this Protocol, except, as appropriate, for expenses related to experts and witnesses, and those related to interpreters and translators who are not public service employees.

Article 13

Implementation

1.  The implementation of this Protocol shall be entrusted on the one hand to the customs authorities of Georgia and on the other hand to the competent services of the European Commission and the customs authorities of the Member States, as appropriate. They shall decide on all practical measures and arrangements necessary for its application, taking into consideration the rules in force, in particular in the field of data protection.

2.  The Parties shall consult each other and subsequently keep each other informed of the detailed rules of implementation which are adopted in accordance with the provisions of this Protocol.

Article 14

Other agreements

1.  Taking into account the respective competencies of the Union and the Member States, the provisions of this Protocol shall:

2.  Notwithstanding the provisions of paragraph 1, the provisions of this Protocol shall take precedence over the provisions of any bilateral agreement on mutual assistance which has been or may be concluded between individual Member States and Georgia in so far as the provisions of such a bilateral agreement are incompatible with those of this Protocol.

Article 15

Consultations

In respect of questions relating to the applicability of this Protocol, the Parties shall consult each other to resolve the matter in the framework of the Customs Sub-Committee set up under Article 74 of this Agreement.

PROTOCOL III

on a framework Agreement between the European Union and Georgia on the general principles for the participation of Georgia in Union programmes

Article 1

Georgia shall be allowed to participate in all current and future programmes of the Union opened to the participation of Georgia in accordance with the relevant provisions adopting those programmes.

Article 2

Georgia shall contribute financially to the general budget of the EU corresponding to the specific programmes in which Georgia participates.

Article 3

Georgia's representatives shall be allowed to take part as observers and, for the points which concern Georgia, in the management committees responsible for monitoring the programmes, to which Georgia contributes financially.

Article 4

Projects and initiatives submitted by participants from Georgia shall, as far as possible, be subject to the same conditions, rules and procedures pertaining to the programmes concerned as those which apply to Member States.

Article 5

The specific terms and conditions regarding the participation of Georgia in each specific programme, in particular the financial contribution payable, as well as reporting and evaluation procedures, shall be determined by agreement between the European Commission and the competent authorities of Georgia on the basis of the criteria established by the programmes concerned.

If Georgia applies for external assistance of the Union to participate in a given Union programme pursuant to Article 3 of Regulation (EC) No 1638/2006 of the European Parliament and of the Council of 24 October 2006 laying down general provisions establishing a European Neighbourhood and Partnership Instrument or pursuant to any similar legislative act of the Union providing for external assistance of the Union to Georgia that may be adopted in the future, the conditions governing the use by Georgia of external assistance of the Union shall be determined in a financing agreement, complying in particular with Article 20 of Regulation (EC) No 1638/2006.

Article 6

Each agreement concluded pursuant to Article 5 of this Protocol, shall stipulate, in accordance with Regulation (EU, EURATOM) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002, that financial control or audits or other verifications, including administrative investigations will be carried out by, or under the authority of, the European Commission, the Court of Auditors and the European Anti-Fraud Office.

Detailed provisions shall be made on financial control and auditing, administrative measures, penalties and recovery enabling the European Commission, the Court of Auditors and the European Anti-Fraud Office to be granted powers equivalent to their powers with regard to beneficiaries or contractors established in the Union.

Article 7

This Protocol shall apply while this Agreement is applicable.

Either Party may denounce this Protocol by written notification to the other Party.

Termination of the Protocol following denunciation by either Party shall have no influence on the checks and controls to be carried out in accordance with the provisions laid down in Articles 5 and 6 respectively.

Article 8

No later than three years after the date of entry into force of this Protocol, and every three years thereafter, both Parties may review the implementation of this Protocol on the basis of the actual participation of Georgia in Union programmes.

PROTOCOL IV

Definitions

For the purposes of this Agreement:

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( 1 ) For the purposes of this Agreement, ‘goods’ means products as understood in GATT 1994 unless otherwise provided in this Agreement. Goods falling under the scope of the WTO Agreement on Agriculture are referred to in this Chapter as ‘agricultural products’ or ‘products’.

( 2 ) Convention of 20 May 1987 on a common transit procedure.

( 3 ) The sole fact of requiring a visa for natural persons of certain countries and not for those of other countries shall not be regarded as nullifying or impairing benefits under a specific commitment.

( 4 ) For greater certainty, that territory shall include the exclusive economic zone and continental shelf, as provided for in the United Nations Convention on the Law of the Sea (UNCLOS).

( 5 ) A juridical person is controlled by another juridical person if the latter has the power to name a majority of its directors or otherwise to legally direct its actions.

( 6 ) For greater certainty, processing of nuclear materials includes all the activities contained in UN ISIC Rev.3.1 code 2330 .

( 7 ) Without prejudice to the scope of activities which may be considered as cabotage under the relevant domestic legislation, national maritime cabotage under this Chapter covers transportation of passengers or goods between a port or point located in Georgia or a Member State of the EU and another port or point located in Georgia or Member State of the EU, including on its continental shelf, as provided in the UNCLOS and traffic originating and terminating in the same port or point located in Georgia or a Member State of the EU.

( 8 ) The conditions of mutual market access in air transport are dealt with by the Agreement between the EU and its Member States and Georgia on the establishment of a Common Aviation Area.

( 9 ) This obligation does not extend to the investment protection provisions not covered by this Chapter, including provisions relating to investor-to-state dispute settlement procedures, as found in other agreements.

( 10 ) This obligation does not extend to the investment protection provisions not covered by this Chapter, including provisions relating to investor-to-state dispute settlement procedures, as found in other agreements.

( 11 ) Without prejudice to the scope of activities which may be considered as cabotage under the relevant national legislation, national maritime cabotage under this Chapter covers transportation of passengers or goods between a port or point located in Georgia or a Member State of the EU and another port or point located in Georgia or Member State of the EU, including on its continental shelf, as provided in the UNCLOS and traffic originating and terminating in the same port or point located in Georgia or a Member State of the EU.

( 12 ) The conditions of mutual market access in air transport are dealt with by the Agreement between the EU and its Member States and Georgia on the establishment of a Common Aviation Area.

( 13 ) The reference to other than a ‘non-profit organisation’ only applies for Belgium, Czech Republic, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Austria, Portugal, Slovenia, Finland and United Kingdom.

( 14 ) The recipient establishment may be required to submit a training programme covering the duration of the stay for prior approval, demonstrating that the purpose of the stay is for training. For Czech Republic, Germany, Spain, France, Hungary and Austria, training must be linked to the university degree which has been obtained.

( 15 ) United Kingdom: the category of business sellers is only recognised for services sellers.

( 16 ) Obtained after having reached the age of majority, as defined under applicable domestic legislation.

( 17 ) Where the degree or qualification has not been obtained in the Party where the service is supplied, that Party may evaluate whether this is equivalent to a university degree in its territory.

( 18 ) Where the degree or qualification has not been obtained in the Party where the service is supplied, that Party may evaluate whether this is equivalent to a university degree required in its territory.

( 19 ) Licencing fees do not include payments for auction, tendering or other non-discriminatory means of awarding concessions, or mandated contributions to universal service provision.

( 20 ) CPC means the Central Products Classification as set out in Statistical Office of the UN, Statistical Papers, Series M, No 77, CPC prov, 1991.

( 21 ) Licence fees do not include payments for auction, tendering or other non-discriminatory means of awarding concessions, or mandated contributions to universal service provision.

( 22 ) Georgia shall implement the provisions of this Sub-Section within two years from the date of entry into force of this Agreement.

( 23 ) For the purposes of this Sub-Section, the term ‘actual knowledge’ shall be interpreted in accordance with each Party's domestic law.

( 24 ) Measures that are aimed at ensuring the equitable or effective imposition or collection of direct taxes include measures taken by a Party under its taxation system which:

Tax terms or concepts in point (f) of this provision and in this footnote are determined in accordance with tax definitions and concepts, or equivalent or similar definitions and concepts, under the domestic law of the Party taking the measure.

( 25 ) The expression ‘private undertakings operating on the basis of special and exclusive rights’ shall be interpreted in accordance with the European Commission's Explanatory Note CC/2004/33 of 18 June 2004.

( 26 ) Wherever Union legislation that is subject to the process of approximation under this Chapter makes reference to publication in the Official Journal of the European Union, it is understood that in Georgia such publication shall be in the official means of publication of Georgia.

( 27 ) For the purposes of this Chapter, ‘fixation’ means the embodiment of sounds or images, or of the representations thereof, from which they can be perceived, reproduced or communicated through a device.

( 28 ) The term ‘evocation’ means, in particular, the use in any way for products falling under heading 20.09 of the HS, although only in so far as they are referred to as wines falling under heading 22.04, aromatised wines falling under heading 22.05 and spirit drinks falling under heading 22.08 of that system.

( 29 ) For the purposes of this Article, a Party may consider that a design having individual character is original.

( 30 ) This Article shall be without prejudice to Georgian Governmental Regulation No 188 of 22 October 2009 on the establishment of the list of countries and relevant authorities eligible for the simplified regime of registration of medicinal products in Georgia. The list established by the above Regulation refers to the following countries/authorities: EMA - European Medicines Agency; Australia; Austria; Belgium; Bulgaria; Canada; Cyprus; Czech Republic; Denmark; Estonia; Finland; France; Germany; Greece; Hungary; Iceland; Ireland; Italy; Japan; Korea; Latvia; Lithuania; Luxemburg; Malta; Netherlands; New Zealand; Norway; Poland; Portugal; Romania; Slovakia; Slovenia; Spain; Sweden; Switzerland; UK; USA.

( 31 ) For the purposes of this Section the notion of ‘intellectual property rights’ includes at least the following rights: copyright; rights related to copyright; sui generis right of a database maker; rights of the creator of the topographies of a semi-conductor product; trademark rights; design rights; patent rights, including rights derived from supplementary protection certificates; geographical indications; utility model rights; plant variety rights; trade names in so far as these are protected as exclusive rights by domestic law.

( 32 ) For the purposes of the implementation of this Chapter by Georgia, this Article shall apply only if and when Georgia has become a party to the Energy Community Treaty and to the extent the specific provisions of the Energy Community Treaty or of the Union legislation made applicable under the Energy Community Treaty are applicable to Georgia.

( 33 ) As expressed in the Council of Europe's Recommendation of the Committee of Ministers to Member States on good administration, CM/Rec(2007)7 of 20 June 2007.

( 34 ) When labour is referred to in this Chapter, it includes the issues relevant to the strategic objectives of the ILO, through which the Decent Work Agenda is expressed, as agreed on in the ILO 2008 Declaration on Social Justice for a Fair Globalisation.

( 35 ) See Annex 2 to Commission Implementing Regulation (EU) 927/2012 of 9 October 2012 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff.

( 36 ) Packaging, conveyances, containers, soil and growing mediums and any other organisms, object or material capable of harbouring or spreading pests.

( 37 ) Only animal by-products originated from animals or parts of animals, declared as fit for human consumption may enter into the feed chain of farmed animals.

( 38 ) Reviewers shall be experts appointed by the European Commission.

( 39 ) For this occasion, it may be supported by the EU Member States' experts separately or in the margin of the CIB programs (twinning projects, TAIEX etc.).

( 40 ) To facilitate the approximation process, consolidated versions of certain pieces of Union legislation are available at the EUR-LEX web page under:

http://eur-lex.europa.eu/RECH_menu.do?ihmlang=en

( 41 ) For example, as indicated on the EUR-LEX web page:

http://eur-lex.europa.eu/RECH_menu.do?ihmlang=en

( 42 ) Public utilities exist in sectors such as related scientific and technical consulting services, R&D services on social sciences and humanities, technical testing and analysis services, environmental services, health services, transport services and services auxiliary to all modes of transport. Exclusive rights on such services are often granted to private operators, for instance operators with concessions from public authorities, subject to specific service obligations. Given that public utilities often also exist at the sub-central level, detailed and exhaustive sector-specific scheduling is not practical. This reservation does not apply to telecommunications and to computer and related services.

( 43 ) In accordance with Article 54 of the TFEU these subsidiaries are considered as juridical persons of the EU. To the extent that they have a continuous and effective link with the economy of the EU, they are beneficiaries of the Union's Internal Market, which includes, inter alia, the freedom to establish and to provide services in all Member States of the EU.

( 44 ) As regards services sectors, those limitations do not go beyond the limitations reflected in the existing commitments under GATS.

( 45 ) A juridical person is controlled by other natural or juridical person(s) if the latter has/have the power to name a majority of its directors or otherwise legally direct its actions. In particular, ownership of more than 50 % of the equity interests in a juridical person shall be deemed to constitute control.

( 46 ) A juridical person is controlled by other natural or juridical person(s) if the latter has/have the power to name a majority of its directors or otherwise legally direct its actions. In particular, ownership of more than 50 % of the equity interests in a juridical person shall be deemed to constitute control.

( 47 ) The horizontal limitation on public utilities applies.

( 48 ) A juridical person is controlled by other natural or juridical person(s) if the latter has/have the power to name a majority of its directors or otherwise legally direct its actions. In particular, ownership of more than 50 % of the equity interests in a juridical person shall be deemed to constitute control.

( 49 ) The horizontal limitation on the difference in treatment between branches and subsidiaries applies. Foreign branches may only receive an authorisation to operate in the territory of a Member State under the conditions provided for in the relevant legislation of that Member State and may therefore be required to satisfy a number of specific prudential requirements.

( 50 ) Including Services auxiliary to internal waterways transport.

( 51 ) Equivalent treatment implies non-discriminatory treatment of Union air carriers and Union CRS services suppliers.

( 52 ) A juridical person is controlled by other natural or juridical person(s) if the latter has/have the power to name a majority of its directors or otherwise legally direct its actions. In particular, ownership of more than 50 % of the equity interest in a juridical person shall be deemed to constitute control.

( 53 ) Based on figures published by the Directorate General in charge of Energy in the latest EU energy statistical pocketbook: crude oil imports expressed in weight, gas imports in calorific value.

( 54 ) This document is prepared based on WTO Services Sectoral Classification List (MTN.GNS/W/120) of 10 July 1991.

( 55 ) Classification of the service according to WTO Services Sectoral Classification List (MTN.GNS/W/120) of 10 July 1991.

( 56 ) This document is prepared based on WTO Services Sectoral Classification List (MTN.GNS/W/120) of 10 July 1991.

( 57 ) This document is prepared based on WTO Services Sectoral Classification List (MTN.GNS/W/120) of 10 July 1991.

( 58 ) This document is prepared based on WTO Services Sectoral Classification List (MTN.GNS/W/120) of 10 July 1991.

( 59 ) Georgia may however postpone the implementation of the more advanced approaches for the respective risks and the implementation of the rules for the trading book. Georgia will encourage the development of capabilities within its banking sector and regulatory authorities towards the use of more advanced approaches over the coming years, with a view to implementing those within eight years. Georgia will ensure that as long as the rules for the trading book are not implemented, the trading books of Georgian banks and investment firms fall below the de minimis thresholds set out in Article 18(2) of Directive 2006/49/EC.

( 60 ) Georgia may however postpone the implementation of the more advanced approaches for the respective risks and the implementation of the rules for the trading book. Georgia will encourage the development of capabilities within its banking sector and regulatory authorities towards the use of more advanced approaches over the coming years, with a view to implementing those within eight years. Georgia will ensure that as long as the rules for the trading book are not implemented, the trading books of Georgian banks and investment firms fall below the de minimis thresholds set out in Article 18(2) of Directive 2006/49/EC.

( 61 ) Repealing Council Directive 95/21/EC of 19 June 1995 concerning the enforcement, in respect of shipping using Community ports and sailing in the waters under the jurisdiction of the Member States, of international standards for ship safety, pollution prevention and shipboard living and working conditions (port State control).

( 62 ) Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts.

( 63 ) Council Directive 89/665/EEC of 21 December 1989 on the coordination of the laws, regulations and administrative provisions relating to the application of review procedures to the award of public supply and public works contracts.

( 64 ) Directive 2007/66/EC of the European Parliament and of the Council of 11 December 2007 amending Council Directives 89/665/EEC and 92/13/EEC with regard to improving the effectiveness of review procedures concerning the award of public contracts.

( 65 ) Directive 2004/17/EC of the European Parliament and of the Council of 31 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors.

( 66 ) Council Directive 92/13/EEC of 25 February 1992 coordinating the laws, regulations and administrative provisions relating to the application of Community rules on the procurement procedures of entities operating in the water, energy, transport and telecommunications sectors.

( 67 ) Directive 2007/66/EC of the European Parliament and of the Council of 11 December 2007 amending Council Directives 89/665/EEC and 92/13/EEC with regard to improving the effectiveness of review procedures concerning the award of public contracts.

( 68 ) Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts.

( 69 ) Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts.

( 70 ) Council Directive 89/665/EEC of 21 December 1989 on the coordination of the laws, regulations and administrative provisions relating to the application of review procedures to the award of public supply and public works contracts.

( 71 ) Directive 2007/66/EC of the European Parliament and of the Council of 11 December 2007 amending Council Directives 89/665/EEC and 92/13/EEC with regard to improving the effectiveness of review procedures concerning the award of public contracts.

( 72 ) Directive 2004/17/EC of the European Parliament and of the Council of 31 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors.

( 73 ) Council Directive 92/13/EEC of 25 February 1992 coordinating the laws, regulations and administrative provisions relating to the application of Community rules on the procurement procedures of entities operating in the water, energy, transport and telecommunications sectors.

( 74 ) Directive 2007/66/EC of the European Parliament and of the Council of 11 December 2007 amending Council Directives 89/665/EEC and 92/13/EEC with regard to improving the effectiveness of review procedures concerning the award of public contracts.

( 75 ) Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts.

( 76 ) Directive 2004/17/EC of the European Parliament and of the Council of 31 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors.

( 77 ) Council Directive 89/665/EEC of 21 December 1989 on the coordination of the laws, regulations and administrative provisions relating to the application of review procedures to the award of public supply and public works contracts.

( 78 ) Directive 2007/66/EC of the European Parliament and of the Council of 11 December 2007 amending Council Directives 89/665/EEC and 92/13/EEC with regard to improving the effectiveness of review procedures concerning the award of public contracts.

( 79 ) Council Directive 92/13/EEC of 25 February 1992 coordinating the laws, regulations and administrative provisions relating to the application of Community rules on the procurement procedures of entities operating in the water, energy, transport and telecommunications sectors.

( 80 ) Directive 2007/66/EC of the European Parliament and of the Council of 11 December 2007 amending Council Directives 89/665/EEC and 92/13/EEC with regard to improving the effectiveness of review procedures concerning the award of public contracts.

( 81 ) Each arbitrator shall not appoint more than one assistant.

( 82 ) Decision No 1/95 of the EC-Turkey Association Council of 22 December 1995 on implementing the final phase of the Customs Union applies to products other than agricultural products as defined in the Agreement establishing an Association between the European Community and Turkey and other than coal and steel products as defined in the Agreement between the European Coal and Steel Community and the Republic of Turkey on trade in products covered by the Treaty establishing the European Coal and Steel Community.

( 83 ) When the origin declaration is made out by an approved exporter, the authorization number of the approved exporter must be entered in this space. When the origin declaration is not made out by an approved exporter, the words in brackets shall be omitted or the space left blank.

( 84 ) Origin of products to be indicated. When the origin declaration relates in whole or in part, to products originating in Ceuta and Melilla, the exporter must clearly indicate them in the document on which the declaration is made out by means of the symbol ‘CM’.

( 85 ) Those indications may be omitted if the information is contained on the document itself.

( 86 ) In cases where the exporter is not required to sign, the exemption of signature also implies the exemption of the name of the signatory.