Explanatory Memorandum to COM(2010)161 - EU position within the Association Council created by the association agreement with Egypt on the amendment of Article 15 (7) of Protocol 4 to that Agreement concerning the definition of the concept of "originating products" and methods of administrative cooperation - Main contents
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| dossier | COM(2010)161 - EU position within the Association Council created by the association agreement with Egypt on the amendment of Article 15 ... |
|---|---|
| source | COM(2010)161  |
| date | 20-04-2010 |
Prohibition of duty drawback is provided for in Article 15 of Protocol 4 to the EC - Egypt Association Agreement. Its paragraph 7 provides for a transitional period in relation to the full implementation of prohibition of duty drawback by Egypt and gives this partner country the possibility to grant duty drawback to its exporters/economic operators during this period.
The transitional period expired on 31 December 2009. However, Article 15 (7) provides for the possibility to extend its application by “common accord”.
At the EC-Egypt Association Council on 27 April 2009, Egypt formulated its request to prolong the provision on duty drawback and review the applicable rates on customs charges.
According to Article 39 of Protocol 4, the provisions of that Protocol shall be amended by decision of the Association Council.
The text of the decision will replace the existing provision laid down in Article 15 (7).
It includes, on the one hand, the modification on the validity of this provision on duty drawback and, on the other hand, the revision of the applicable customs charges to be retained.
In order to ensure clarity, long term economic predictability and legal certainty for economic operators, the parties to the Agreement have agreed to prolong the application of Article 15 (7) with effect as from 1 January 2010 for a period of three years.
Moreover, the applicable rates in Egypt should be adjusted on the basis of the current rates applied in the EU.
Pending the formal adoption of this decision, it was agreed, via an exchange of correspondence between the European Commission and the relevant Egyptian authorities that the content of this text would be applied as from 1 January 2010.
CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT
Interested parties were consulted in the framework of the Pan-Euro-Med Working Group and Customs code committee Origin section.
There was no need for external expertise.
There is no need for an impact assessment insofar as the amendments proposed are merely technical and do not modify the substance of the current origin protocol.
In view of the nature of the changes to be made to Article 15 (7) of Protocol 4 and for legal certainty the entire paragraph shall be replaced.
The amended provision on duty drawback should apply retroactively from 1 January 2010.
The legal basis for the amendment of this provision is laid down in Article 207(4) first subparagraph, in conjunction with Article 218(9) of the Treaty on the Functioning of the European Union.
The proposal falls under the exclusive competence of the Union. The subsidiarity principle therefore does not apply.
Proposed instrument: Council decision.
The proposal has no implication for the Union budget.
additional information
A review, revision or sunset clause is not foreseen .