Explanatory Memorandum to COM(2013)728 - EU position within the EU-PLO Association Committee on the definition of the concept of "originating products" and methods of administrative cooperation

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1. CONTEXT OF THE PROPOSAL

The prohibition of drawback of customs duties is stipulated in Article 15 of Protocol No 3 annexed to the EC-PLO Association Agreement, as amended by Decision No 1/2009 of the EU-PLO Joint Committee of 24 June 2009 i. Paragraph 7 of that Article provides for a transitional period prior to the full application of the prohibition of drawback of duties by the West Bank and the Gaza Strip and allows this partner to grant duty drawback to its exporters or economic operators during this period.

The transitional period expired on 31 December 2009. However, Article 15 i provides for the possibility of re-examining this provision by common accord.

Further to a request from the PLO, in 2010 the Commission proposed extending the application period of this provision until 31 December 2012 i. However, the EU‑PLO Joint Committee never adopted that decision. On 6 December 2012 the PLO requested in writing a further four-year extension of the application period of this provision.

In accordance with Article 39 of Protocol No 3, the provisions of the Protocol may be amended by decision of the Joint Committee.

The text of the decision will amend the existing provision laid down in Article 15 i.

The parties have agreed to extend by six years the application period of Article 15 i with effect from 1 January 2010 in order to provide clarity, long-term economic predictability and legal certainty for economic operators, to ensure consistency with similar requests from other Mediterranean countries and to establish the period covered by the Commission proposal following the PLO's initial request.

Pending formal adoption of the present decision, it was agreed, in the Pan‑Euro‑Med working group, that this decision will apply from 1 January 2010.

1.

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS



The parties concerned have been consulted in the Pan-Euro-Med working group and the Customs Code Committee's Origin Section.

No recourse to external expertise has been necessary.

It has not been necessary to conduct an impact assessment, since the proposed amendments are technical in nature and do not affect the substance of the protocol on rules of origin currently in effect.

2.

LEGAL ELEMENTS OF THE PROPOSAL



The amended provision on drawback of duties should apply retroactively from 1 January 2010.

The legal basis for the amendment of this provision is the first subparagraph of Article 207 i 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 principle of subsidiarity does not therefore apply.

Proposed instrument: Council decision