PURPOSE: to amend Decision 2013/755/EU on the association of the overseas countries and territories with the European Union (Overseas Association Decision).

LEGISLATIVE ACT: Council Decision (EU) 2019/2196 amending Decision 2013/755/EU on the association of the overseas countries and territories with the European Union (Overseas Association Decision).

CONTENT: the Council Decision amends Annex VI to the Overseas Association Decision (OAD) which defines the concept of ‘originating products’ and methods of administrative cooperation between the Union and the Overseas Countries and Territories (OCTs). It contains provisions to implement a system of certification of origin from 1 January 2017, namely the Registered Exporter System (REX), for which the OCTs benefit from a derogation until 31 December 2019.

The purpose of the amendment is to ensure the compatibility of Annex VI of the CAD with the provisions on the REX system set out in Commission implementing regulation (EU) 2015/2447 , which lays down all general rules for the implementation of Regulation (EU) No 952/2013 of the European Parliament and of the Council concerning the Union Customs Code, and to ensure that the OCTs implement and apply it as from 1 January 2020.

ENTRY INTO FORCE: 19.1.2020.

The European Parliament adopted by 661 votes to 1, with 25 abstentions, under the consultation procedure, a legislative resolution on the proposal for a Council decision amending Council Decision 2013/755/EU on the association of the overseas countries and territories with the European Union ('Overseas Association Decision').

Parliament approved the Commission proposal without amendments.

The aim of the proposal is to amend Annex VI of the OAD which defines the concept of ‘originating products’ and methods of administrative cooperation between the EU and the OCTs. It contains provisions aiming to implement a system of origin certification as of 1 January 2017, the Registered Exporters (REX) system, but for which OCTs benefit from a waiver until 31 December 2019

The proposed amendment aims to ensure the compatibility of Annex VI of the CAD with the provisions on the REX system set out in Regulation (EU) 2015/2447 and to ensure that the OCTs implement and apply it from 1 January 2020.

The Committee on Development adopted, following a special legislative procedure (consultation), the report by Tomas TOBÉ (EPP, SE) on the proposal for a Council decision amending Council Decision 2013/755/EU on the association of the overseas countries and territories with the European Union ('Overseas Association Decision').

The committee responsible recommended that the European Parliament approve the Commission proposal without amendment.

The Overseas Association Decision (OAD) establishes the legal framework for the relations between Overseas Countries and Territories (OCTs), the Member States to which they are linked, and the European Union.

The aim of the proposal is to amend Annex VI of the OAD which defines the concept of ‘originating products’ and methods of administrative cooperation between the EU and the OCTs. It contains provisions aiming to implement a system of origin certification as of 1 January 2017, the Registered Exporters (REX) system, but for which OCTs benefit from a waiver until 31 December 2019.

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. Therefore, Annex VI of the OAD should be amended in order to ensure compatibility with the provisions on the REX system laid down in Regulation (EU) 2015/2447 and to ensure its deployment and implementation by the OCTs as from 1 January 2020.

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.