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Document 52024PC0505
Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the Joint Committee set up by the EEA Agreement, as regards the amendment of Protocol 4 thereto, on rules of origin
Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the Joint Committee set up by the EEA Agreement, as regards the amendment of Protocol 4 thereto, on rules of origin
Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the Joint Committee set up by the EEA Agreement, as regards the amendment of Protocol 4 thereto, on rules of origin
COM/2024/505 final
EUROPEAN COMMISSION
Brussels, 31.10.2024
COM(2024) 505 final
2024/0283(NLE)
Proposal for a
COUNCIL DECISION
on the position to be taken on behalf of the European Union in the Joint Committee set up by the EEA Agreement, as regards the amendment of Protocol 4 thereto, on rules of origin
(Text with EEA relevance)
EXPLANATORY MEMORANDUM
1.Subject matter of the proposal
This proposal is to set out the position to be taken on the EU’s behalf in the Joint Committee of the EEA Agreement on the amendment of Protocol 4 to that Agreement, which lays down rules of origin.
2.Context of the proposal
2.1.Agreement on the European Economic Area (the EEA Agreement)
The EEA Agreement 1 aims to strengthen trade and economic relations between its contracting parties in a continuous and balanced way. Under the Agreement, which entered into force on 1 January 1994, Parties should enjoy equal conditions of competition and respect the same rules, with a view to creating a homogeneous European Economic Area (EEA).
2.2.The Joint Committee
The Joint Committee, set up in line with Article 92 of the EEA Agreement, may decide to amend Protocol 4. The Joint Committee, which is composed of the representatives of the EEA Parties, draws up its decisions and recommendations by agreement between the EU and the EFTA States speaking with one voice.
2.3.The envisaged act of the Joint Committee
At its next meeting or by exchange of letters, the Joint Committee is to adopt a decision on the amendment of Protocol 4 (the envisaged act).
The purpose of the envisaged act is to amend Protocol 4 by replacing it with a new protocol to include a dynamic reference to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin, so that it always refers to the latest version of the Convention in force.
The envisaged act will be binding on the parties, in line with Article 103, paragraph 1 of the EEA Agreement.
3.Position to be taken on the EU’s behalf
The Regional Convention on pan-Euro-Mediterranean preferential rules of origin (the Convention) lays down provisions on the origin of goods traded under relevant agreements concluded between the contracting parties. The EU, Norway and Liechtenstein signed the Convention on 15 June 2011 and Iceland signed the Convention on 30 June 2011.
The EU, Norway, Iceland and Liechtenstein deposited their instruments of acceptance with the depositary of the Convention on 26 March 2012, 9 November 2011, 12 March 2012 and 28 November 2011, respectively. As a consequence, under its Article 10(3), the Convention entered into force for the EU and Iceland on 1 May 2012 and for Norway and Liechtenstein on 1 January 2012.
The Convention was amended by Decision No 1/2023 of the Joint Committee of the Regional Convention on pan-Euro-Mediterranean Preferential Rules of Origin of 7 December 2023.
Article 6 of the Convention stipulates that each contracting party must take appropriate measures to ensure that the Convention is effectively applied. To that effect, the Association Council established by the Agreement should adopt a decision introducing the rules of the Convention under Protocol 4. This is done by introducing in the amended Protocol a reference to the Convention that will render it applicable.
The position to be taken by the EU within the Joint Committee should be established by the Council.
The proposed amendments are technical in nature and do not affect the substance of the protocol on rules of origin currently in effect. Therefore, they do not require an impact assessment.
4.Legal basis
4.1.Procedural legal basis
4.1.1.Principles
Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides for decisions establishing ‘the positions to be adopted on the Union’s behalf in a body set up by an agreement, when that body is called upon to adopt acts having legal effects, with the exception of acts supplementing or amending the institutional framework of the agreement.’
The concept of ‘acts having legal effects’ includes acts that have legal effects because of the rules of international law governing the body in question. It also includes instruments that do not have a binding effect under international law, but that are ‘capable of decisively influencing the content of the legislation adopted by the EU legislature’ 2 .
4.1.2.Application to the present case
The Joint Committee is a body set up by an agreement, namely the EEA Agreement.
The act that the Joint Committee is called on to adopt has legal effects. It will be binding under international law in accordance with Article 103, paragraph 1 of the EEA Agreement.
The envisaged act does not supplement or amend the institutional framework of the EEA Agreement.
Therefore, the procedural legal basis for the proposed decision is Article 218(9) TFEU.
4.2.Substantive legal basis
4.2.1.Principles
The substantive legal basis for a decision under Article 218(9) TFEU depends primarily on the objective and content of the envisaged act for which a position is taken on the EU’s behalf.
4.2.2.Application to the present case
The main objective and content of the envisaged act relate to the common commercial policy.
The substantive legal basis of the proposed decision is therefore Article 207(4), first subparagraph, TFEU.
4.3.Conclusion
The legal basis of the proposed decision should be Article 207(4), first subparagraph, in conjunction with Article 218(9) TFEU.
5.PUBLICATION OF THE ENVISAGED ACT
As the act of the Joint Committee will amend the EEA Agreement, it would be appropriate to publish it in the Official Journal of the European Union after it has been adopted.
2024/0283 (NLE)
Proposal for a
COUNCIL DECISION
on the position to be taken on behalf of the European Union in the Joint Committee set up by the EEA Agreement, as regards the amendment of Protocol 4 thereto, on rules of origin
(Text with EEA relevance)
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 207(4), first subparagraph in conjunction with Article 218(9) thereof,
Having regard to the proposal from the European Commission,
Whereas:
(1)The Agreement on the European Economic Area (‘EEA Agreement’) was concluded by the Union by Decision 94/1/ECSC, EC of the Council and the Commission 3 and entered into force on 1 January 1994. Protocol 4 thereto, on rules of origin, defines the concept of ‘originating’ products and lays down method of administrative cooperation.
(2)Pursuant to Article 98 of the EEA Agreement, the EEA Joint Committee established by Article 92 of the EEA Agreement (‘Joint Committee’) may decide to amend Protocol 4 to that Agreement.
(3)The Joint Committee, during its next meeting or by exchange of letters is to adopt a Decision on an amendment of Protocol 4 to the EEA Agreement.
(4)It is appropriate to establish the position to be taken on the Union’s behalf in the Joint Committee, as the Decision will be binding on the Union.
(5)The Regional Convention on pan-Euro-Mediterranean preferential rules of origin (‘the Convention’) was concluded by the Union by Council Decision 2013/94/EU 4 and entered into force in relation to the Union on 1 May 2012. It lays down provisions on the origin of goods traded under relevant bilateral free trade agreements concluded between the Contracting Parties to the Convention, which apply without prejudice to the principles laid down in those bilateral agreements.
(6)The Convention was amended by Decision No 1/2023 of the Joint Committee of the Regional Convention on pan-Euro-Mediterranean Preferential Rules of Origin of 7 December 2023 5 . The current applicable rules of origin in Protocol 4 should be replaced by the amendment to the Convention.
(7)The amendment to the Convention enters into force on 1 January 2025 in relation to all Contracting Parties, including between the parties to the EEA Agreement. To ensure effective and immediate application of the amendment to the Convention between the parties to the EEA Agreement, a reference to the Convention should be introduced in Protocol 4, so as to always refer to the latest version of the Convention in force. In the absence of such reference, the effective application of the amendment to the Convention would not be ensured thus creating a situation in which the common EEA origin would be determined based on different rules of origin than the rules of origin of the amendment to the Convention.
(8)Additional to the reference to the Convention, EEA specific provisions should be maintained in Protocol 4 and the Joint declarations should remain intact and included thereto.
(9)Article 6 of the Convention provides that each Contracting Party is to take appropriate measures to ensure that the Convention is effectively applied. To that effect, the joint Committee should adopt a decision introducing in Protocol 4 to the EEA Agreement a reference to the Convention so as to always refer to the latest version of the Convention in force,
HAS ADOPTED THIS DECISION:
Article 1
The position to be taken on the Union’s behalf in the Joint Committee established by the Agreement on the European Economic Area shall be based on the draft act of the Joint Committee attached to this Decision.
Article 2
This Decision is addressed to the Commission.
Done at Brussels,
For the Council
The President
EUROPEAN COMMISSION
Brussels, 31.10.2024
COM(2024) 505 final
ANNEX
to the
Proposal for a Council Decision
on the position to be taken on behalf of the European Union in the Joint Committee set up by the EEA Agreement, as regards the amendment of Protocol 4 thereto, on rules of origin
DRAFT
DECISION OF THE EEA JOINT COMMITTEE
No […]
of […]
amending Protocol 4 to the EEA Agreement, on rules of origin
THE EEA JOINT COMMITTEE,
Having regard to the Agreement on the European Economic Area (‘the EEA Agreement’), and in particular Articles 86 and 98 thereof,
Whereas:
(1)Article 9 of the EEA Agreement refers to Protocol 4 to the EEA Agreement (‘Protocol 4’) which lays down the rules of origin.
(2)The Regional Convention on pan-Euro-Mediterranean preferential rules of origin 1 (‘the Convention’) aims to transpose the existing bilateral systems of rules of origin established in bilateral free trade agreements concluded among the Contracting Parties to the Convention into a multilateral framework, without prejudice to the principles laid down in those bilateral agreements.
(3)The Union, Liechtenstein and Norway signed the PEM Convention on 15 June 2011 and Iceland signed the Convention on 30 June 2011.
(4)The Union, Iceland, Liechtenstein and Norway, each deposited their instrument of acceptance with the depositary of the Convention on 26 March 2012, 12 March 2012, 28 November 2011 and 9 November 2011 respectively. Consequently, and in accordance with Article 10(3) of the Convention, the Convention entered into force on 1 May 2012 as regards the Union and Iceland and on 1 January 2012 as regards Liechtenstein and Norway.
(5)Decision of the EEA Council No 1/95 of 10 March 1995 on the entry into force of the Agreement on the European Economic Area for the Principality of Liechtenstein 2 which lays down the rules for the application of Protocol 4 to the EEA Agreement to the Principality of Liechtenstein.
(6)The Convention was amended by Decision No 1/2023 of the Joint Committee of the Regional Convention on pan-Euro-Mediterranean Preferential Rules of Origin of 7 December 2023 3 .
(7)Article 6 of the Convention provides that each Contracting Party is to take appropriate measures to ensure that the Convention is effectively applied.
(8)The provisions of Protocol 4 should therefore be amended to include a dynamic reference to the Convention, so as to always refer to the latest version of the Convention in force.
(9)Protocol 4 should also contain specific provisions taking into account the distinctive features in the EEA agreement, such as EEA Origin.
(10)Protocol 4 to the EEA Agreement should therefore be amended in order to allow for this extended cooperation to take place from 1 January 2025,
HAS ADOPTED THIS DECISION:
Article 1
The text of the main Articles and the Annexes to Protocol 4 to the EEA Agreement shall be replaced by the text as set out in the Annex to this Decision.
Article 2
For the purposes of the application of this Decision, proofs of origin may be issued retrospectively for exports performed between 1 January 2025 and the date of entry into force of this Decision.
Article 3
This Decision shall enter into force on the day following the last notification under Article 103(1) of the EEA Agreement 4 .
It shall apply from 1 January 2025.
Article 4
This Decision shall be published in the EEA Section of, and in the EEA Supplement to, the Official Journal of the European Union.
Done at Brussels, […].
For the EEA Joint Committee
The President
[…]
The Secretaries
To the EEA Joint Committee
[…]
ANNEX
to Decision of the EEA Joint Committee No …/…
‘PROTOCOL 4
ON RULES OF ORIGIN
Article 1
Rules of origin
1. For the purpose of implementing the EEA Agreement, Appendix I and the relevant provisions of Appendix II to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin 5 (‘the Convention’), as last amended and published in the Official Journal of the European Union, shall apply and are hereby incorporated into and made part of the EEA Agreement, mutatis mutandis
2. All references to the “relevant agreement” in Appendix I and in the relevant provisions of Appendix II to the Convention shall be construed so as to mean the EEA Agreement.
Article 2
Specific provisions for the European Economic Area
1. For the purpose of implementing the EEA Agreement, the following products shall be considered as originating in the EEA:
(a) products wholly obtained in the EEA;
(b) products obtained in the EEA incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in the EEA.
For the purpose of EEA origin, the territories of the Contracting Parties to the EEA Agreement to which the Agreement applies shall be considered as a single territory.
2. Notwithstanding paragraph 1, the territory of the Principality of Liechtenstein shall be excluded from that of the EEA, for the purpose of determining the origin of the products referred to in Tables I and II of Protocol 3 and such products shall be considered to be originating in the EEA only if they have been either wholly obtained or sufficiently worked or processed in the territories of the other Contracting Parties 6 .
3. Notwithstanding the definition of ‘territory’ in Appendix I to the Convention, ‘territory’ includes the land territory, internal waters and the territorial sea of the Contracting Parties to the EEA Agreement to which the EEA Agreement applies.
4. For the purpose of implementing the EEA Agreement, the term “EEA” shall not cover Ceuta and Melilla. For the purposes of applying Protocol 49 to the EEA Agreement concerning products originating in Ceuta and Melilla, this protocol shall apply mutatis mutandis subject to the special conditions set out in Annex V of the Convention.
Article 3
Additional cumulation provisions
1. The Contracting Parties agree to extend the application of Article 7(3) of the Convention on importation of products falling within Chapters 50 to 63.
2. The Contracting Parties to the EEA Agreement agree to waive the obligation to include in the proof of origin the statement referred to in Article 8(3) of the Convention “CUMULATION APPLIED WITH (name of the country/countries in English)”.
JOINT DECLARATION
concerning the acceptance of proofs of origin issued within the framework of the agreements referred to in Article 7 of the Convention for products originating in the European Union, Iceland or Norway
1. Proofs of origin issued within the framework of the agreements referred to in Article 7 of Appendix I to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin for products originating in the European Union, Iceland or Norway shall be accepted for the purpose of granting preferential tariff treatment provided for by the EEA Agreement.
2. Such products shall be considered as materials originating in the EEA when incorporated into a product obtained there. It shall not be necessary for such materials to have undergone sufficient working or processing.
3. Furthermore, in so far as such products are covered by the EEA Agreement they shall be considered as originating in the EEA when re-exported to another EEA Contracting Party.
JOINT DECLARATION
concerning the Principality of Andorra
1. Products originating in the Principality of Andorra falling within Chapters 25 to 97 of the Harmonised System shall be accepted by Iceland, Liechtenstein and Norway as originating in the European Union within the meaning of the Agreement.
2. Protocol 4 shall apply, mutatis mutandis, for the purpose of defining the originating status of the abovementioned products.
JOINT DECLARATION
concerning the Republic of San Marino
1. Products originating in the Republic of San Marino shall be accepted by Iceland, Liechtenstein and Norway as originating in the European Union within the meaning of the Agreement.
2. Protocol 4 shall apply, mutatis mutandis for the purpose of defining the originating status of the abovementioned products.
JOINT DECLARATION
concerning the withdrawal of a Contracting Party from the Regional Convention on pan-Euro-Mediterranean preferential rules of origin
1. Should a Contracting Party to the EEA Agreement give notice in writing to the depositary of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin of their intention to withdraw from the Convention according to its Article 9, the withdrawing Contracting Party shall immediately enter into negotiations on rules of origin with all other EEA Contracting Parties for the purpose of implementing this Agreement.
2. Until the entry into force of such newly negotiated rules of origin, the rules of origin contained in Appendix I and, where appropriate, the relevant provisions of Appendix II to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin, applicable at the moment of withdrawal, shall apply mutatis mutandis between the withdrawing Contracting Party and the other EEA Contracting Parties. However, as of the moment of withdrawal, the rules of origin contained in Appendix I and, where appropriate, the relevant provisions of Appendix II to the Convention shall be construed so as to allow bilateral cumulation between the withdrawing Contracting Party and the other EEA Contracting Parties only.’