Explanatory Memorandum to COM(2005)332 - Community position within the Association Council on a derogation from Protocol 4, concerning the definition of originating products and methods of administrative co-operation, to the association agreement with their Member States, on the one part, and Morocco, of the other part - Main contents
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| dossier | COM(2005)332 - Community position within the Association Council on a derogation from Protocol 4, concerning the definition of originating ... |
|---|---|
| source | COM(2005)332  |
| date | 18-07-2005 |
- Grounds for and objectives of the proposal
In the context of the Barcelona process, the Commission has made a proposal to the Council for the extension of the pan-European cumulation of origin to the Mediterranean countries, which will contribute to the creation of the Euro-Med free trade area by 2010.
The pan-Euro-Mediterranean cumulation of origin will allow, amongst other, that garments manufactured in Morocco will be conferred preferential origin for export to the Community if they are made up from fabrics originating in the other pan-Euro-Mediterranean countries, such as Turkey.
A basic condition for the application of pan-Euro-Mediterranean cumulation is the existence of free trade agreements with identical rules of origin, between the countries of the zone. On 7 April 2004 Morocco and Turkey signed a free trade agreement, which contains a declaration stating that the two Parties will replace the current origin protocol with the pan-Euro-Med origin protocol via an exchange of letter. The pan-Euro-Mediterranean cumulation also requires that the rules of origin of the EC-Morocco Euro-Mediterranean Agreement be amended. A proposal to that effect is currently being discussed by the Council.
- General context
The rule of origin applicable to the garments for which the derogation is requested is that all the fabrics used must be manufactured from already originating yarn. In other words, it does not allow for the use of non-originating fabrics in the manufacture of these garments.
Based upon the Joint Declaration on Article 39 of Protocol No. 4 to the EC-Morocco Agreement, on 19 April 2005, Morocco requested a derogation which will allow the manufacture in Morocco of originating garments from fabrics originating in Turkey for export to the EU. This derogation aims at anticipating the effects of pan-Euro-Mediterranean cumulation of origin among Morocco, Turkey and the EU.
Existing provisions in the area of the proposal There are no existing provisions in the area of the proposal.
Consistency with the other policies and objectives of the Union The consistency of the proposed decision with the various objectives of the Neighbourhood Policy has been met.
CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT
Consultation of interested parties
No consultation needed because the proposed decision follows a request of the interested parties, i.e. the Moroccan authorities.
Collection and use of expertise
There was no need for external expertise.
Impact assessment Option 1: granting of the derogation. This option will contribute to the development of a key sector of the Moroccan economy, the textile sector, without jeopardising the Community textile industry. Option 2: refusal of the request for derogation. This option will not contribute to the development of the Moroccan economy and in particular of the textile industry which has been facing a difficult moment due to the abolition of quotas since January 2005.
- Summary of the proposed action
The proposal lays down that the derogation shall be granted:
- in respect of garments falling under chapters 61 and 62 of the Harmonized Commodity Description and Coding System;
- for a quantity of 10.890 tons of garments (detailed table enclosed in Annex 1);
- until the entry into force of the Pan-Euro-Mediterranean protocol on rules of origin among the Parties concerned, namely Morocco, Turkey and the EU but, in any event, for no longer than a period of one year;
- provided that Morocco carries out quantitative checks on the exports of the products concerned and supplies statements of the quantities in respect of which movement certificates have been issued;
- provided that the free trade agreement between Morocco and Turkey is in force.
Legal basis Article 133 in conjunction with Article 300 paragraph 2, second subparagraph of the Treaty establishing the European Community.
Subsidiarity principle The proposal falls under the exclusive competence of the Community. The subsidiarity principle therefore does not apply.
Proportionality principle The proposal complies with the proportionality principle for the following reason(s).
There is no other option in the present case. Therefore this is the simplest measure possible.
There is no extra financial and administrative burden.
Choice of instruments
Proposed instruments: other.
Other means would not be adequate for the following reason(s). The derogation implies an amendment of the protocol on rules of origin. Article 39 of the protocol provides that amendments are decided by the EC-Morocco Association Council.
The proposal has no implication for the Community budget.