Press Release: Customs: Bulgaria referred to Court of Justice for failing to abolish duty and tax relief in its agreement with USA

The European Commission referred Bulgaria to the Court of Justice on 20 June 2013 for failing to bring its bilateral agreement with the USA on technical assistance into line with EU law.

On its accession to the EU, Bulgaria committed to take all steps necessary to bring its existing agreements with third countries into line with EU law. This includes the bilateral agreement with the United States on technical assistance, under which Bulgaria waives customs duties and VAT on imports linked to US-funded assistance projects. This goes beyond what is allowed under under EU customs duty rules and EU VAT rules.

The Commission had requested Bulgaria to amend the agreement so as to make it compatible with EU law or to unilaterally terminate it . Given that Bulgaria has failed to do this, the Commission is now referring the case to the European Court of Justice.

• Primary Source

ESO: Background Information: June infringements package: main decisions http://www.europeansources.info/record/memo-june-infringements-package-main-decisions/

ESO: Background Information: Customs: Bulgaria asked to review terms of bilateral agreement with the United States http://www.europeansources.info/record/press-release-customs-bulgaria-asked-to-review-terms-of-bilateral-agreement-with-the-united-states/

---