EU/Euratom/Georgia Association Agreement: implementing the anti-circumvention mechanism

PURPOSE: to implement the anti-circumvention mechanism provided for in the Association Agreement between the EU and Georgia.

LEGISLATIVE ACT: Regulation (EU) 2016/401 of the European Parliament and of the Council implementing the anti-circumvention mechanism provided for in the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part.

CONTENT: the EU-Georgia Association Agreement was signed on 27 June 2014 and has been provisionally applied from 1 September 2014. The Agreement includes an anti-circumvention mechanism, which provides for the possibility of reintroducing the most favoured nation customs duty rate when imports of certain agricultural goods from Georgia exceed a given threshold without due justification of their exact origin.

Objective: the Regulation lays down provisions for the implementation of the anti-circumvention mechanism provided for in the Agreement. It applies to products originating in Georgia.

Anti-circumvention mechanism: the Regulation provides for the possibility of suspending the preferential customs duties for a maximum period of six months when the imports of certain agricultural products and processed agricultural products reach the defined annual import volumes.  

Implementation: implementing powers are conferred on the Commission in order to ensure uniform conditions for the application of the anti-circumvention mechanism. In order to prevent a negative impact on the Union market as a result of an increase in imports, the Commission should adopt immediately applicable implementing acts where, in duly justified cases, imperative grounds of urgency so require.

Annual report: for reasons of transparency, the Commission will submit an annual report to the European Parliament and to the Council on the implementation of the Agreement and the application of the anti-circumvention mechanism.

The European Parliament may, within 1 month of submission of the Commission’s report, invite the Commission to an ad hoc meeting of its responsible committee to present and explain any issues related to the implementation of the Regulation.

ENTRY INTO FORCE: 24.3.2016.