/ EUROPEAN COMMISSION
DIRECTORATE-GENERAL
TAXATION AND CUSTOMS UNION
Customs Policy
Rules of origin

Brussels, 22.12.2006

TAXUD/C2/RM (2006)
cr\152

TAXUD/3524/06 - EN

Working document

Customs Code Committee
Origin Section

(Council Regulation (EEC) No 2913/92 of 12 October 1992)

13.12.2005, 10.00 hrs – 18.00 hrs

Summary record of the 152nd meeting of the Origin Section of the Customs Code Committee, held in Brussels, 13 December 2005.

1. APPROVAL OF THE AGENDA

The agenda was approved.

2. PREFERENTIAL ORIGIN

POINTS SUBMITTED TO AN EXAMINATION

2.1. Verification of proofs of origin

2.1.1. Presentation by two delegations on use of IT to support the verification of proofs of origin (TAXUD/1159/05)

Two delegations gave a presentation on how the verification system works in practice between the two countries and invited other Member States to improve the system of communication in line with the system proposed.

In general there was support for the proposal and that the Commission should play a coordination role in improving the current system.

2.1.2. Presentation of draft EU Guidelines on the management of the verification of proofs of origin in the context of preferential trade arrangements (TAXUD/1157/05)

The Commission presented the above document and asked Member States for comments and endorsement of the draft guidelines, which can then be promoted as best practice to support the effective monitoring of the rules of origin.

Member States in welcoming the document will provide written comments for inclusion in the document.

2.2. Horizontal

2.2.1. Monitoring of the management of Preferential Arrangements

- Information on 2005 Pilot Monitoring Action

The Commission gave information to the Committee on the progress of the monitoring actions to date on a country by country basis. A full report on the pilot action is in preparation and will be presented to the Committee in early 2006.

- Preparation of 2006 Monitoring Plan

The Commission outlined briefly the work being undertaken in the preparation of the 2006 monitoring plan, and asked for material to support the targeting of countries who should be the subject of monitoring in 2006. A full plan for 2006 will be presented to the Committee for endorsement and subsequent implementation in early 2006.

2.2.2. Validity of proofs of preferential origin - Community guidelines (TAXUD/1148/05, TAXUD/1152/05 & TAXUD/1152/05 Rev.1)

The Commission presented the above document and asked for the views of the Committee.

Three delegations agreed with the points raised in the document.

The Commission will make some minor changes to the document and will have it translated for the next meeting.

2.2.3. Interpretation of the concept of 'simple mixing' in the context of cumulation, based on a case of mixture of sugar and lactose (or cocoa) in Andorra. Reply from the Andorran authorities (TAXUD/1133/05 Add.4).

The Commission presented the above document for the information of the Committee, there was no discussion.

2.3. Western Balkans

2.3.1. Prolongation and amendments to Council Regulation (EC) No 2007/2000 of 18 September 2000 introducing exceptional trade measures for countries and territories participating in or linked to the European Union's Stabilisation and Association process. Information and transitional measures (TAXUD/1160/05)

The Commission explained the impact of the modification of Council Regulation 2007/2000: three new origins will be introduced (Serbian origin, Montenegrin origin and Kosovar origin) from 1.1.2006 whereas the Joint Office will not be any longer needed. Therefore COM has requested to be informed on the new valid stamps and new authorities in charge of issuing and verifying movement certificates EUR 1. This information will be put into the SMS by December 2006, there will be no Notice to Importers published.

COM presented the above documents in which transitional arrangements for the three new origins were proposed and requested the agreement of MS.

Two delegations raised concerns about the legal basis for these measures. Therefore they will contact the Commission in writing on this.

2.3.2. Information on the results of a monitoring action on the implementation of the Stabilisation and Association Agreement EU- the former Yugoslav Republic of Macedonia

The Commission gave brief information on the study and monitoring visits to the former Yugoslav Republic of Macedonia, including information on results of on the spot checks, and the examination of new legislation. The findings of the visit were positive.

2.3.3. Mixture of sugar and cocoa in Bosnia-Herzegovina and Croatia - Letters to the authorities (TAXUD/1132/05/Add.2)

Some discussions took place on the issue without any conclusive solution

2.4. Pan-Euro-Mediterranean cumulation – sufficient working or processing of originating materials, implications for the application of the 'no-drawback' rule and certification of origin (TAXUD/1143/05 Rev.2)

The Commission presented the above document and looked for the views of the Committee. Comments are invited in writing by January 15 2006.

2.5. User's handbook to the Rules of Preferential Origin used in trade between the pan-Euro-Med countries (TAXUD/1155/05)

The Commission presented the above document and asked for comments from the Committee in writing.

3. NON PREFERENTIAL ORIGIN

POINTS SUBMITTED TO AN EXAMINATION

3.1. WTO Work Program for the harmonisation of non preferential rules of origin: Negotiating position on wine (TAXUD/1158/05)

The Commission presented the document in detail to the Committee and asked for the comments of Member States.

Five delegations agree with the compromises proposed in the document. Three other delegations are still examining the document and will revert to the Commission with their views. [One of them has subsequently communicated their agreement with the Commission proposal]

4. A.O.B.

Two delegations raised concerns about the broad interpretation of the non preferential rules of origin by Hong Kong / China and the Commission agreed that this broad interpretation is unacceptable.

One delegation raised concerns regarding the recent note from the WCO and its implications on changes to the HS draft rules of origin.

The Commission will consider the situation and revert to the Committee.

In response to a request from one delegation, the Commission informed the meeting that there are currently two studies into the proposed new GSP rules and these will be considered by the Commission and then there will be a role for the Committee in moving the process forward.

The Commission presented the delegates with information on the South African protocol which highlighted the ratification of the protocol by the South African Parliament on 15 November 2006.

In response to a question from one delegation, on a possible list showing the HS of goods covered by the ECSC, no information is available yet from the Commission. In response to a point from an other delegation, the Commission replied that there is currently a proposal in Council to formalise the situation on returned goods from Switzerland.

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