Explanatory Memorandum to COM(2013)730 - EU position within the Association Council EU-Morocco as regards the definition of the concept of 'originating products' and methods of administrative cooperation

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1. CONTEXT OF THE PROPOSAL

The prohibition on drawback of customs duties is set out in Article 15 of Protocol No 4 annexed to the EC-Morocco Association Agreement as amended by Decision No 1/2010 of the EU-Morocco Association Council of 23 August 2010 i. Paragraph 7 of that article provides for a transitional period prior to the full application of the prohibition of drawback of duties by Morocco and allows the country to grant duty drawback to its exporters or economic operators during this period.

The transitional period expired on Monday 31 December 2012. However, Article 15 i provides for the possibility of reviewing this provision by mutual agreement.

On 24 July 2012 Morocco sent a written request asking for a four-year extension of the period of application of this provision.

In accordance with Article 39 of Protocol No 4, the provisions of the Protocol may be amended by decision of the Association Council.

The text of the decision will amend the existing provision laid down in Article 15 i.

The parties have agreed to extend by three years the application period of Article 15 i, with effect from 1 January 2013 in order to provide clarity, long-term economic predictability and legal certainty for economic operators and to ensure consistency with similar requests by other Mediterranean countries.

Pending formal adoption of the present decision, it was agreed, in the context of the Pan‑Euro-Med working group, that this decision will apply from 1 January 2013.

1.

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS



The parties concerned have been consulted in the Pan-Euro-Med working group and the Customs Code Committee's Origin Section.

No recourse to external expertise has been necessary.

It has not been necessary to conduct an impact assessment, since the proposed amendments are technical in nature and do not affect the substance of the protocol on rules of origin currently in effect.

2.

LEGAL ELEMENTS OF THE PROPOSAL



The amended provision on drawback of duties should apply retroactively from 1 January 2013.

The legal basis for the amendment of this provision is the first subparagraph of Article 207 i in conjunction with Article 218(9) of the Treaty on the Functioning of the European Union.

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

Proposed instrument: Council decision