Explanatory Memorandum to COM(2013)724 - EU position within the Association Council EU-Egypt as regards the definition of the concept of 'originating products' and methods of administrative cooperation - Main contents
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| dossier | COM(2013)724 - EU position within the Association Council EU-Egypt as regards the definition of the concept of 'originating products' and ... |
|---|---|
| source | COM(2013)724  |
| date | 24-10-2013 |
The prohibition of drawback of customs duties is stipulated in Article 15 of Protocol No 4 annexed to the EC-Egypt Association Agreement, as amended by Decision No 1/2010 of the EU-Egypt Association Council of 3 August 2010 i. Paragraph 7 of that article provides for a transitional period prior to the full application of the prohibition of drawback of duties by Egypt and allows the country to grant duty drawback to its exporters or economic operators during this period.
The transitional period expired on 31 December 2012. However, Article 15 i provides for the possibility of re-examining this provision by mutual agreement.
On 28 August 2012 Egypt requested in writing that the period in which the provision applies be extended.
In accordance with Article 39 of Protocol No 4, the provisions of the Protocol may be amended by decision of the Association Council.
The text of the decision will amend the existing provision laid down in Article 15 i.
The parties have agreed to extend by three years the application period of Article 15 i, with effect from 1 January 2013 in order to provide clarity, long-term economic predictability and legal certainty for economic operators.
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 2013.
Contents
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.
The amended provision on drawback of duties should apply retroactively from 1 January 2013.
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