Explanatory Memorandum to COM(2006)259 - Community position within the EC-Turkey Customs Co-operation Committee on the adoption of a Decision laying down detailed rules for the application of Decision No 1/95 of the EC-Turkey Association Council

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1) Context of the proposal

- Grounds for and objectives of the proposal

Decision No 1/2001 of the EC-Turkey Customs Co-operation Committee of 28 March 2001, lays down detailed rules for the application of Decision No 1/95 of the EC-Turkey Association Council. The Decision has to be amended to take account of enlargement and of recent developments in the Community Customs legislation. It has also to be amended to enable the acceptance by Turkey of A.TR movement certificates issued in the Community on the basis of single authorisations of approved exporters issued in a Member State other that those of actual export of the goods.

Decision No 1/1999 of the EC-Turkey Customs Co-operation Committee of 28 May 1999 lays down procedures to facilitate the issue of movement certificates EUR.1 and the making out of invoice declarations under the provisions governing preferential trade between the European Union, Turkey and certain European countries. Decision No 1/2000 of the EC-Turkey Customs Co-operation Committee of 25 July 2000, on the acceptance, as proof of Community or Turkish origin, of movement certificates EUR.1 or invoice declarations issued by certain countries that have signed a preferential agreement with the Community or Turkey. Both Decisions ensure, for the products covered by the customs union, the necessary linkage between the free circulation within the customs union and the preferential relations of its two parts with their common trade partners. It is therefore appropriate to incorporate in the current Decision the provisions currently laid down in Decisions No 1/1999 and No 1/2000 and to repeal them.

- General context

At the 35th meeting of the EC-Turkey Customs Co-operation Committee in Brussels on 20 January 2006, the Commission and the Turkish side agreed on the text of a draft Decision of the EC-Turkey Customs Co-operation Committee, laying down detailed rules for the application of Decision No 1/95 of the EC-Turkey Association Council.

At the Palermo Conference in March 2002, the Euromed Trade Ministers had agreed to the extension of the pan-European system of cumulation of origin to all the Mediterranean partners. Following this extension, the necessary reference to proofs of origin EUR-MED should be introduced in the provisions subject to this proposal.

Further to the outcome of the EC – Faroe Islands/Denmark Joint Committee of the 28 November 2003, it has been agreed to also include the Faroe Islands in the system of pan-Euro-Mediterranean cumulation of origin.

This new Decision of the EC-Turkey Customs Co-operation Committee ('Bridging-Legislation') will incorporate the provisions on supplier's declaration, currently laid down in Decision 1/1999 of the EC-Turkey Customs Co-operation Committee of 28 May 1999 (OJ L 204 of 4.8.1999, p. 43) and adapt them for the purpose of pan-Euro-Mediterranean cumulation.

- Existing provisions in the area of the proposal

Decision No 1/2001 of the EC-Turkey Customs Co-operation Committee of 28 March 2001, lays down detailed rules for the application of Decision No 1/95 of the EC-Turkey Association Council.

Decision No 1/1999 of the EC-Turkey Customs Co-operation Committee of 28 May 1999 lays down procedures to facilitate the issue of movement certificates EUR.1 and the making out of invoice declarations under the provisions governing preferential trade between the European Union, Turkey and certain European countries.

Decision No 1/2000 of the EC-Turkey Customs Co-operation Committee of 25 July 2000, on the acceptance, as proof of Community or Turkish origin, of movement certificates EUR.1 or invoice declarations issued by certain countries that have signed a preferential agreement with the Community or Turkey.

The provisions of the origin Protocols to these preferential agreements, allowing the extension of the system of the pan-European cumulation of origin to the Faroe Islands and to countries – other than Turkey - which are participants to the Euro-Mediterranean partnership, based on the Barcelona Declaration adopted at the Euro-Mediterranean Conference held on 27 and 28 November 1995

- Consistency with the other policies and objectives of the Union

The proposal aims on implementing the final phase of the EC-Turkey Customs Union, as well as the preferential trade relations between the Community and Turkey and its partners in the system of pan-Euro-Mediterranean cumulation of origin

2) Consultation of interested parties and impact assessment

- Consultation of interested parties

None

- Collection and use of expertise

None

- Impact assessment

The amendment proposed is a legal instrument necessary to facilitate the implementation of the detailed rules for the application of Decision 1/95, taking into consideration the system of pan-Euro-Mediterranean cumulation of origin.

3)

1.

Legal elements of the proposal



- Summary of the proposed action

The attached proposal aims at the adoption by the Council of a Community position on a new Decision of the EC-Turkey Customs Co-operation Committee, providing detailed rules for the application of the Customs Union Decision No 1/95 of the EC-Turkey Association Council. These rules are currently laid down in Decision No 1/2001 of the EC-Turkey Customs Co-operation Committee, amended by Decision No 1/2003.

The new Bridging Legislation will:

- take account of enlargement, in particular regarding endorsement of documents in new Community languages and of recent developments in the Community Customs legislation, in particular regarding the outward processing procedure;

- enable the acceptance by Turkey of A.TR movement certificates issued in the Community on the basis of single authorisations of approved exporters issued in a Member State other that those of actual export of the goods;

- incorporate and amend the provisions currently laid down in two separate Decisions of the EC-Turkey Customs Co-operation Committee i, in order to facilitate a joint application of the customs union and of the preferential trade arrangements between the Community or Turkey and the countries applying the system of pan Euro-Mediterranean cumulation of origin

In order to facilitate the implementation of the detailed rules for the application of Decision 1/95, it is appropriate to replace Decision No 1/2001 by a new Decision

- Legal basis

Article 133 EC.

Decision No 1/95 of the EC-Turkey Association Council of 22 December 1995 on implementing the final phase of the Customs Union and in particular Articles 3 i, 13 i, 16 and 28 i thereof

- Subsidiarity principle

Not relevant. Community exclusive competence.

- Proportionality principle

The measure proposed is necessary and adequate for the proper implementation of the Customs Union between the EU and Turkey as well as of the pan-Euro-Mediterranean cumulation.

- Choice of instruments

Decision No 1/95 of the EC-Turkey Association Council of 22 December 1995 on implementing the final phase of the Customs Union shall be implemented through Decisions of the EC-Turkey Customs-Co-operation Committee

4)

2.

Budgetary implication



No implication

5) Additional information

- Simulation, pilot phase and transitory period

Not relevant

- Recasting

Not relevant.