Proposal for a Council Decision on a European Union position within the EU-Chile Special Committee on Customs Cooperation and Rules of Origin relating to Annex III to the Agreement establishing an association between the European Community and its Member States, of the one part, and the Republic of Chile, of the other part, concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation

CONTEXT OF THE PROPOSAL

Grounds for and objectives of the proposal
The Association Agreement between the European Community and its Member States, of the one part, and the Republic of Chile, of the other part, was signed on 18 November 2002.

Annex III to the EU-Chile Association Agreement concerning the definition of the concept of 'originating products' and methods of administrative cooperation, sets out the rules of origin for the products originating in the territory of the Parties to the Agreement. Chile and the European Union have agreed to introduce a clarification to the rules of origin contained in Annex III. This will be done through an explanatory note to Annex III.

General context
Annex III entered into force on 1 February 2003. Explanatory Notes to Annex III – whose provisions serve the purpose of providing the customs authorities with clear guidelines on the practical application of Annex III to the Agreement – have been in force since 1 January 2004.

Existing provisions in the area of the proposal
There are no existing provisions in the area of the proposal.

Consistency with the other policies and objectives of the Union
Not applicable.

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS
Not relevant.
This proposal introduces clarifications to a previous text.

Collection and use of expertise
There was no need for external expertise.

Impact assessment
Not relevant. This proposal introduces clarifications to an existing bilateral trade agreement. There are no other options to be considered.

LEGAL ELEMENTS OF THE PROPOSAL
Summary of the proposed action

The Council is asked to adopt a European Union position on a draft Decision of the European Union - Chile Special Committee on Customs Cooperation and Rules of Origin introducing clarifications to the rules of origin contained in Annex III to the Association Agreement concerning the definition of the concept of 'originating products' and methods of administrative cooperation.

Legal basis
Article 39 of Annex III to the Association Agreement empowers the Parties to agree on the
Explanatory Notes regarding the interpretation, application and administration of this Annex within the Special Committee on Customs Cooperation and Rules of Origin. .

Subsidiary principle
The proposal falls under the exclusive competence of the European Union. The subsidiarity principle therefore does not apply.

Proportionality principle
The proposal complies with the proportionality principle for the following reason(s):
Not relevant.

Choice of instruments
Proposed instruments: other. Other means would not be adequate for the following reason(s): Decision of the EU-Chile Special Committee on Customs Cooperation and Rules of Origin.

BUDGETARY IMPLICATION
The proposal has no implication for the European Union budget.

• Primary Source

EUR-Lex: COM(2011)059: Follow the progress of this document through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2011:059:FIN

ESO: Key Source: Relations between Chile and the European Union http://www.europeansources.info/record/relations-between-chile-and-the-european-union/

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