Explanatory Memorandum to COM(2002)466 - Community position within the EU - Mexico Joint Council relating to Annex III to Decision No 2/2000 of the EU-Mexico Joint Council of 23 March 2000, concerning the definition of the concept of 'originating products' and methods of administrative cooperation

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dossier COM(2002)466 - Community position within the EU - Mexico Joint Council relating to Annex III to Decision No 2/2000 of the EU-Mexico Joint ...
source COM(2002)466 EN
date 19-08-2002
1. Rules of origin are essential to the correct functioning of the free trade agreements between the Community and its trading partners, including Mexico. The European Communities and its Member States, of the one part, and the United Mexican States, of the other part, have signed an Economic Partnership, Political Coordination and Cooperation Agreement which entered into force on 1 October 2000  i.

Annex III to Decision 2/2000 of the EC - Mexico Joint Council  i concerns the definition of the concept of originating products and methods of administrative cooperation and has entered into force on 1 July 2000.

2. With the objective of ensuring a correct and harmonious application of provisions concerning quotas for certain products exchanged under preference by the Parties, a Communication to traders  i, which followed an exchange of letters, set out an obligation to mention in the proofs of origin the compliance with a separate origin rule for the purpose of benefiting from each quota. In the interest of clarity, it is desirable to include those specific instructions in this Decision.

3. Following the amendments to the Harmonized Commodity Description and Coding System ("Harmonized System"), which took effect on 1 January 2002, it is necessary to proceed to an adaptation of a number of origin rules included in Appendix II and II(a) to Annex III, with the view to ensure consistency between the origin rules and the above-mentioned modifications to the Harmonized System. Therefore, the said adaptations are of non-substantial nature. Following an identical rationale, Appendix I and Joint Declaration VI must also be adapted accordingly.

However, it is nevertheless envisaged to set up a mechanism that shall empower, under certain conditions, the Joint Committee to restore the previous rule of origin, should a specific modification have resulted in altering the substance of any origin rule existing previously.

4. The Commission is therefore asked to adopt the text by written procedure for forwarding to the Council.