Association of the overseas countries and territories with the European Union ("Overseas Association Decision")
PURPOSE: to amend Council Decision 2013/755/EU on the association of the overseas countries and territories with the European Union (Overseas Association Decision).
PROPOSED ACT: Council Decision.
ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act.
BACKGROUND: Council Decision 2013/755/EU which entered into force on 1 January 2014 (the Overseas Association Decision (OAD)) covers relations between the OCTs, including Greenland, their Member States and the European Union. It defines the OCTs' privileged relationship with the Union and the specific legal framework applicable to them, which is based on three main pillars, namely policy, trade and cooperation.
Annex VI of the OAD defines ‘originating products’ and methods of administrative cooperation between the EU and the OCTs. It contains provisions aiming to implement the REX system for origin certification as of 1 January 2017.
The OCTs were not ready as of 1 January 2017 to apply the REX system as provided for in Annex VI of the OAD. All OCTs requested a derogation of three years. The Commission then adopted Implementing Decision (EU) 2016/2093 postponing the date to establish the REX system for the OCTs to 1 January 2020. This means that as of 1 January 2020, the OCTs must apply the REX system as provided under the current OAD.
On 24 November 2015, the Commission adopted Implementing Regulation (EU) 2015/2447, where all the general rules for implementing the Union Customs Code, among which the provisions dealing with the REX system of the GSP, have been transferred.
As a result, the provisions in Annex VI to the OAD on the ‘procedures for the registered exporter system’ differ from those in the GSP rules of origin.
Annex VI of the OAD should therefore be amended in order to ensure compatibility with the provisions on the REX system laid down in Regulation (EU) 2015/2447.
CONTENT: the objective of the proposal is to amend Annex VI of Council Decision 2013/755/EU on the association of the overseas countries and territories (OCTs) with the European Union. The amendment is required for the application of the registered exporters (REX) system for origin certification.
The proposal is limited to upgrading the conditions needed to define ‘originating products’ and the methods for administrative cooperation between the OCTs and the Union. It therefore provides for the upgrading of the provisions on the REX system.
In concrete terms, it incorporates into Annex VI of the OAD the provisions to implement the REX system that is established by Regulation (EU) 2015/2447. It replaces Annex VI in its entirety.
It should be noted that in the context of the negotiations for the next multiannual financial framework, the Commission tabled on 14 June 2018 a proposal for a new Overseas Association Decision (new OAD). That proposal includes updated provisions on the REX system, which are compatible with the new legislation. However, it is not expected to enter into force until January 2021.