Council Decision (EU) 2020/2068
of 7 December 2020
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular the first subparagraph of Article 207(4), in conjunction with Article 218(9) thereof,
Having regard to the proposal from the European Commission,
Whereas:
The Agreement includes Protocol III concerning the concept of ‘originating products’ (‘Protocol III’). Pursuant to Article 4 of Protocol III, the Stabilisation and Association Council established by Article 126 of the Agreement (‘the Stabilisation and Association Council’) may decide to amend Protocol III.
The Stabilisation and Association Council will adopt a decision amending the Agreement by replacing Protocol III (‘decision’) during its next meeting, before the end of 2023.
It is appropriate to establish the position to be taken on the Union’s behalf within the Stabilisation and Association Council, as the decision will have binding legal effects in the Union.
Article 6 of the Convention provides that each Contracting Party is to take appropriate measures to ensure that the Convention is effectively applied. To that effect, the decision will introduce a dynamic reference to the Convention in Protocol III, so as to refer always to the latest version of the Convention in force.
Discussions on amending the Convention have resulted in a new set of modernised and more flexible rules of origin to be incorporated into the Convention. Pending the conclusion and entry into force of the amendment of the Convention, the Union and Kosovo1 have agreed to apply as soon as possible an alternative set of rules of origin based on those of the amended Convention, which may be used bilaterally as alternative rules of origin to those laid down in the Convention (‘Transitional rules’). To that effect, the decision will also provide for the Transitional rules.
In the cumulation zone constituted by the EFTA States, the Faroe Islands, the Union, the Republic of Turkey, the participants in the Stabilisation and Association Process, the Republic of Moldova, Georgia and Ukraine, the possibility of using movement certificates EUR.1 or origin declarations instead of movement certificates EUR-MED or origin declarations EUR-MED, as a derogation from the provisions of the Convention applicable to diagonal cumulation among those participants, should be maintained.
The position of the Union within the Stabilisation and Association Council should therefore be based on the draft decision,
HAS ADOPTED THIS DECISION: