Agreement

between the European Coal and Steel Community and the Government of the Russian Federation on trade in certain steel products

THE EUROPEAN COAL AND STEEL COMMUNITY,

of the one part, and

THE GOVERNMENT OF THE RUSSIAN FEDERATION,

of the other part,

being the Parties to this Agreement,

Whereas the Parties are desirous to promote the orderly and equitable development of trade in steel between the European Coal and Steel Community (hereinafter referred to as "the Community") and the Russian Federation (hereinafter referred to as "Russia");

Whereas the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and the Russian Federation, of the other part(1), entered into force on 1 December 1997;

Whereas Article 21 of the Partnership and Cooperation Agreement provides that trade in ECSC products shall be governed by Title III, save for Article 15 thereof, and by the provisions of this Agreement;

Whereas the ECSC Treaty shall expire on 23 July 2002; that the EC shall take over all rights and obligations contracted by the former; that it is important to clearly indicate that this Agreement will not be affected by such expiry;

Bearing in mind the process of accession of the Russian Federation to the World Trade Organisation (WTO) and European Community support for the integration of the Russian Federation into the international trading system;

Whereas for the years 1995-2001 trade in certain products covered by the Treaty establishing the European Coal and Steel Community was the subject of agreements between the Parties, which it is appropriate to replace with a further agreement which takes account of developments in the relationship between the Parties;

Whereas this Agreement should be accompanied by cooperation between the Parties in respect of their steel industries, including appropriate exchanges of information, within the Contact Group on coal and steel as foreseen in Protocol 1 to the Partnership and Cooperation Agreement;

HAVE DECIDED to conclude this Agreement and to this end have designated as their Plenipotentiaries:

THE COMMISSION OF THE EUROPEAN COMMUNITIES:

THE GOVERNMENT OF THE RUSSIAN FEDERATION:

WHO HAVE AGREED AS FOLLOWS:

Article 1

1. This agreement applies to trade in the steel products covered by the Treaty establishing the European Coal and Steel Community set out in Annex I originating within the Parties.

2. Trade in the steel products not set out in Annex I shall not be subject to quantitative limits and shall be governed by the relevant provisions of the Partnership and Cooperation Agreement, in particular those relating to anti-dumping procedures and safeguard measures.

3. In the case of subject matter which is not covered by this Agreement, the relevant provisions of the Partnership and Cooperation Agreement shall apply.

Article 2

1. The Parties agree to establish and maintain for the period of validity of the present Agreement for each calendar year quantitative arrangements fixing the limits set out in Annex II on Russian exports to the Community of the products set out in Annex I. Such exports shall be subject to a double-checking system as specified in Protocol A.

2. The Parties agree that imports into the EC from Russia for products included in Annex I as from 1.1.2002 until the entry into force of this Agreement shall be deducted from the quantitative limits set out in Annex II.

3. Imports of quantities in excess of those mentioned in Annex II shall be authorised where the EC industry is unable to meet the internal demand and results in a shortage of supply for one or more products listed in Annex I. Consultations shall take place immediately at the request of either Party to determine the level of the shortage. Following the conclusions of the consultations and on the basis of objective evidence, the EC shall instigate its internal procedures to increase the quantities set out in Annex II.

4. In the case where the candidate countries to EU membership would accede before the termination of this Agreement, the Parties agree to consider the increase of quantitative limits set out in Annex II.

Article 3

1. Imports into the customs territory of the Community for free circulation of the products set out in Annex I shall be subject to the production of an export licence issued by the authorities of Russia and to proof of origin in accordance with the provisions of Protocol A.

2. Imports into the customs territory of the Community of the products set out in Annex I shall not be subject to the quantitative limits set out in Annex II provided they are declared to be for re-export outside the Community in the same state or after processing, within the administrative system of control which exists within the Community.

3. Carry-over to the corresponding quantitative limits for the following calendar year of the amounts of quantitative limits not used during any calendar year is authorized up to 7 % of the relevant quantitative limit set out in Annex II for a product group in question for the year in which it was not used. Russia shall notify the Community no later than 1 February of the following year if it intends to make use of this provision.

4. Up to 7 % of the quantitative limit for a given product group may be transferred to one or more other groups within the same product category, i.e. within SA or SB, subject to the consent of both Parties. The quantitative limit for a given product group can be reduced once in the course of a calendar year. Transfers shall not be permitted to or from product group SA1a (coils for re-rolling), except that, notwithstanding the first sentence of this paragraph, products from category SB2 and SB3, respectively up to 30000 t and 45000 t, may be transferred to category SA1a with the consent of both Parties. Any adjustments to the quantitative limits resulting from transfers shall only affect the calendar year in progress. At the start of the following calendar year, the quantitative limits shall be those shown at Annex II, without prejudice to the provisions of paragraph 3 above. Russia shall notify the Community no later than 30 June if it intends to make use of this provision.

Article 4

1. With a view to rendering the double-checking system as effective as possible and to minimize the possibilities for abuse and circumvention:

- the Community authorities shall inform Russia by the 28th of each month of the import authorizations issued during the preceding month;

- the Russian authorities shall inform the Community by the 28th of each month of the export licences issued during the preceding month.

In the event of any significant discrepancy taking account of the time factors involved in respect of such information either Party may request consultations which shall be opened immediately.

2. Without prejudice to paragraph 1 and with a view to ensuring the effective functioning of this Agreement, the Community and Russia agree to take all necessary steps to prevent, to investigate and to take any necessary legal and/or administration action against circumvention, notably by transhipment, re-routing, false declaration concerning the country or place of origin, falsification of documents, false declaration concerning quantities, description or classification of merchandise. Accordingly, the Community and Russia agree to establish the necessary legal provisions and administrative procedures permitting effective action to be taken against such circumvention, which shall include the adoption of legally binding corrective measures against exporters and/or importers involved.

3. Should the Community believe on the basis of information available that this Agreement is being circumvented, the Community may request consultations with Russia which shall be held immediately.

4. Pending the results of the consultations referred to in paragraph 3, Russia shall, as a precautionary measure, and if so requested by the Community, take all necessary measures to ensure that, where sufficient evidence of circumvention is provided, adjustments of the quantitative limits liable to be agreed following the consultations referred to in paragraph 3, shall be carried out for the calendar year in which the request for consultations under paragraph 3 was made, or for the following year, if the limit for that calendar year is exhausted.

5. Should the Parties be unable in the course of the consultations referred to in paragraph 3 to reach a mutually satisfactory solution, the Community shall have the right:

(a) where there is sufficient evidence that products covered by this Agreement originating in Russia have been imported in circumvention of this Agreement, to set off the relevant quantities against the quantitative limits established under the Agreement.

(b) where sufficient evidence shows false declaration concerning quantities description or classification has occurred, to refuse to import the products in question.

6. The Parties agree to cooperate fully to prevent and to address effectively all problems arising from circumvention of this Agreement.

Article 5

1. The quantitative limits established under this Agreement on imports of steel products into the Community shall not be broken down by the Community into regional shares.

2. The Parties shall cooperate in order to prevent sudden and prejudicial changes in traditional trade flows into the Community. Should a sudden and prejudicial change in traditional trade flows arise (including regional concentration or the loss of traditional customers), the Community will be entitled to request consultations in order to find a satisfactory solution to the problem. Such consultations shall be held immediately.

3. Russia shall endeavour to ensure that exports into the Community of products set out in Annex I are spaced out as evenly as possible over the year. Should a sudden and prejudicial surge of imports arise, the Community will be entitled to request consultations in order to find a satisfactory solution to the problem. Such consultations shall be held immediately.

4. In addition to the obligation contained in paragraph 3, where licences issued by the Russian authorities have reached 90 % of the quantitative limits for the calendar year in question, either Party may request consultations concerning the quantitative limits for that year. Such consultations shall be held immediately. Pending the outcome of such consultations the Russian authorities may continue to issue export licences for the products set out in Annex I provided they do not exceed the quantities set out in Annex II.

Article 6

1. Where any product set out in Annex I is being imported into the Community from Russia under such conditions as to cause or threaten to cause substantial injury to Community producers of like products, the Community shall supply Russia with all relevant information with a view to seeking a solution acceptable to both Parties. The Parties shall commence consultations promptly.

2. Should the consultations referred to in paragraph 1 above fail to lead to agreement within 30 days of the Community's request for consultations, the Community may utilise the right to take action concerning safeguard measures pursuant to the provisions of the Partnership and Cooperation Agreement.

3. Notwithstanding the provisions of this Agreement, the provisions of Article 18 of the PCA shall apply.

Article 7

1. The classification of the products covered by this Agreement is based on the tariff and statistical nomenclature of the Community (hereinafter called the "combined nomenclature", or in abbreviated form "CN"). Any amendment to the combined nomenclature (CN) made in accordance with the procedures in force in the Community concerning the products set out in Annex I or any decision relating to the classification of goods shall not have the effect of reducing the quantitative limits of the products set out Annex II.

2. The origin of the products covered by this Agreement shall be determined in accordance with the rules in force in the Community. Any amendment to these rules of origin shall be communicated to Russia and shall not have the effect of reducing the quantitative limits of this Agreement. The procedures for control of the origin of the products referred to above are laid down in Protocol A.

Article 8

1. Without prejudice to the periodic exchange of information on export licences and import authorizations pursuant to Article 4(1), the Parties agree to exchange available statistical information relating to trade in the products set out in Annex I at appropriate intervals, taking account of the shortest periods in which the information in question is prepared, which shall cover export licences and import authorizations issued pursuant to Article 3 and import and export statistics in respect of the products in question.

2. Either Party may request consultations in the event of any significant discrepancy between the information exchanged.

Article 9

1. Without prejudice to provisions concerning consultations foreseen in respect of specific circumstances in preceding Articles, consultations shall be held on any problems arising from the application of this Agreement at the request of either Party. Any consultations shall take place in a spirit of cooperation and with a desire to reconcile the differences between the Parties.

2. Where this Agreement provides that consultations shall be held immediately, the Parties undertake to use all reasonable means to ensure that this is achieved.

3. All other consultations shall be governed by the following provisions:

- any request for consultations shall be notified in writing to the other Party,

- where appropriate, the request shall be followed within a reasonable period by a report setting out the reasons for the consultations,

- consultations shall begin within one month from the date of the request,

consultations shall endeavour to arrive at a mutually acceptable result within one month of their commencement, unless the period is extended by agreement between the Parties.

Article 10

1. When the Treaty establishing the European Coal and Steel Community expires on 23 July 2002, the European Community shall take over all rights and obligations contracted by the former under this Agreement.

2. The Parties agree that this Agreement will be continued and that all rights and obligations of the Parties under this Agreement shall be maintained after such expiry.

3. The reference in Article 21 of the PCA to products covered by the Treaty establishing the European Coal and Steel Community shall be read to refer to products listed in Annex III after the expiry of the said Treaty.

Article 11

1. This Agreement shall enter into force on the day of its signature. It shall be applicable until 31 December 2004 subject to any modifications agreed by the Parties and unless it is denounced in accordance with the provisions of paragraph 3 of this Article.

2. Either Party may at any time propose modifications to this Agreement which shall require the mutual consent of the Parties and take effect as agreed by them.

3. Either Party may denounce this Agreement, provided that at least six months' notice is given. In that event, the Agreement shall come to an end on the expiry of the period of notice and the limits established by this Agreement shall be reduced on a pro rata basis up to the date on which denunciation takes effect unless the Parties decide otherwise by common agreement.

4. In the event that the Russian Federation accedes to the WTO before the expiration of this Agreement, the Agreement shall be reviewed prior to such accession to ensure that its provisions are consistent with WTO rules. The operation of the Agreement shall also be reviewed in the event of new multilateral commitments accepted both by the Community and Russia concerning the steel products covered by this Agreement.

5. The Annexes and Protocol A attached to this Agreement shall form an integral part thereof.

Article 12

This Agreement shall be drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Russian languages, each of these texts being equally authentic.

Hecho en Bruselas, el nueve de julio de dos mil dos/Udfærdiget i Bruxelles, den niende juli to fusind og to/Geschehen zu Brüssel am neunten Juli zweitausendzwei./Έγινε στις Βρυξέλλες, στις εννέα Ιουλίου δύο χιλιάδες δύο/Done at Brussels, ninth day of July two thousand and two/Fait à Bruxelles, le neuf juillet deux mille deux/Fatto a Bruxelles, addì nove luglio duemiladue/Gedaan te Brussel, negen juli tweeduizend en twee/Feito em Bruxelas, em nove de Julho de dois mil e dois/Tehty Brysselissä yhdeksäntenä päivänä heinäkuuta vuonna kaksituhattakaksi/Utfärdat i Bryssel den nionde juli tjugohundratvå/

>PIC FILE= "L_2002195EN.005801.TIF">

Por la Comisión de las Comunidades Europeas/For Kommissionen for De Europæiske Fællesskaber/Für die Kommission der Europäischen Gemeinschaften/Για την Επιτροπή των Ευρωπαϊκών Κοινοτήτων/For the Commission of the European Communities/Pour la Commission des Communautés européennes/Per la Commissione delle Comunità europee/Voor de Commissie van de Europese Gemeenschappen/Pela Comissão das Comunidades Europeias/Euroopan yhteisöjen komission puolesta/På Europeiska gemenskapernas kommissions vägnar/

>PIC FILE= "L_2002195EN.005802.TIF">

Karl Falkenberg

Por el Gobierno de la Federación de Rusia/For regeringen for Den Russiske Føderation/Für die Regierung der Russischen Föderation/Για την κυβέρνηση της Ρωσικής Ομοσπονδίας/For the Government of the Russian Federation/Pour le gouvernement de la Fédération de Russie/Per il governo della Federazione russa/Voor de regering van de Russische Federatie/Pelo Governo da Federação da Rússia/Venäjän federaation hallituksen puolesta/På Rysslands regerings vägnar/

>PIC FILE= "L_2002195EN.005803.TIF">

Vasiliy Likhachev

(1) OJ L 327, 28.11.1997, p. 3.

ANNEX I

SA FLAT-ROLLED PRODUCTS

SA1. Coils

7208 10 00

7208 25 00

7208 26 00

7208 27 00

7208 36 00

7208 37 90

7208 38 90

7208 39 90

7211 14 10

7211 19 20

7219 11 00

7219 12 10

7219 12 90

7219 13 10

7219 13 90

7219 14 10

7219 14 90

7225 20 20

7225 30 00

SA1a. Hot rolled coils for re-rolling

7208 37 10

7208 38 10

7208 39 10

SA2. Heavy plate

7208 40 10

7208 51 10

7208 51 30

7208 51 50

7208 51 91

7208 51 99

7208 52 10

7208 52 91

7208 52 99

7208 53 10

7211 13 00

SA3. Other flat-rolled products

7208 40 90

7208 53 90

7208 54 10

7208 54 90

7208 90 10

7209 15 00

7209 16 10

7209 16 90

7209 17 10

7209 17 90

7209 18 10

7209 18 91

7209 18 99

7209 25 00

7209 26 10

7209 26 90

7209 27 10

7209 27 90

7209 28 10

7209 28 90

7209 90 10

7210 11 10

7210 12 11

7210 12 19

7210 20 10

7210 30 10

7210 41 10

7210 49 10

7210 50 10

7210 61 10

7210 69 10

7210 70 31

7210 70 39

7210 90 31

7210 90 33

7210 90 38

7211 14 90

7211 19 90

7211 23 51

7211 29 20

7211 90 11

7212 10 10

7212 10 91

7212 20 11

7212 30 11

7212 40 10

7212 40 91

7212 50 31

7212 50 51

7212 60 11

7212 60 91

7219 21 10

7219 21 90

7219 22 10

7219 22 90

7219 23 00

7219 24 00

7219 31 00

7219 32 10

7219 32 90

7219 33 10

7219 33 90

7219 34 10

7219 34 90

7219 35 10

7219 35 90

7225 40 80

SA4. Alloyed products

7226 20 20

7226 91 10

7226 91 90

7226 99 20

SB. LONGS PRODUCTS

SB1. Beams

7207 19 31

7207 20 71

7216 31 11

7216 31 19

7216 31 91

7216 31 99

7216 32 11

7216 32 19

7216 32 91

7216 32 99

7216 33 10

7216 33 90

SB2. Wire rod

7213 10 00

7213 20 00

7213 91 10

7213 91 20

7213 91 41

7213 91 49

7213 91 70

7213 91 90

7213 99 10

7213 99 90

7221 00 10

7221 00 90

7227 10 00

7227 20 00

7227 90 10

7227 90 50

7227 90 95

SB3. Other longs

7207 19 11

7207 19 14

7207 19 16

7207 20 51

7207 20 55

7207 20 57

7214 20 00

7214 30 00

7214 91 10

7214 91 90

7214 99 10

7214 99 31

7214 99 39

7214 99 50

7214 99 61

7214 99 69

7214 99 80

7214 99 90

7215 90 10

7216 10 00

7216 21 00

7216 22 00

7216 40 10

7216 40 90

7216 50 10

7216 50 91

7216 50 99

7216 99 10

7218 99 20

7222 11 11

7222 11 19

7222 11 21

7222 11 29

7222 11 91

7222 11 99

7222 19 10

7222 19 90

7222 30 10

7222 40 10

7222 40 30

7224 90 31

7224 90 39

7228 10 10

7228 10 30

7228 20 11

7228 20 19

7228 20 30

7228 30 20

7228 30 41

7228 30 49

7228 30 61

7228 30 69

7228 30 70

7228 30 89

7228 60 10

7228 70 10

7228 70 31

7228 80 10

7228 80 90

7301 10 00

ANNEX II

QUANTITATIVE LIMITS

>TABLE>

Note:

SA and SB are product categories

SA1 to SA4 and SB1 to SB3 are product groups

ANNEX III

PRODUCTS REFERRED TO IN ARTICLE 10

7201 10 11

7201 10 19

7201 10 30

7201 10 90

7201 50 10

7201 50 90

7202 11 20

7202 11 80

7202 99 11

7203 10 00

7203 90 00

7204 10 00

7204 21 10

7204 21 90

7204 29 00

7204 30 00

7204 41 10

7204 41 91

7204 41 99

7204 49 10

7204 49 30

7204 49 91

7204 49 99

7204 50 10

7204 50 90

7206 10 00

7206 90 00

7207 11 11

7207 11 14

7207 11 16

7207 12 10

7207 19 11

7207 19 14

7207 19 16

7207 19 31

7207 20 11

7207 20 15

7207 20 17

7207 20 32

7207 20 51

7207 20 55

7207 20 57

7207 20 71

7208 10 00

7208 25 00

7208 26 00

7208 27 00

7208 36 00

7208 37 10

7208 37 90

7208 38 10

7208 38 90

7208 39 10

7208 39 90

7208 40 10

7208 40 90

7208 51 10

7208 51 30

7208 51 50

7208 51 91

7208 51 99

7208 52 10

7208 52 91

7208 52 99

7208 53 10

7208 53 90

7208 54 10

7208 54 90

7208 90 10

7209 15 00

7209 16 10

7209 16 90

7209 17 10

7209 17 90

7209 18 10

7209 18 91

7209 18 99

7209 25 00

7209 26 10

7209 26 90

7209 27 10

7209 27 90

7209 28 10

7209 28 90

7209 90 10

7210 11 10

7210 12 11

7210 12 19

7210 20 10

7210 30 10

7210 41 10

7210 49 10

7210 50 10

7210 61 10

7210 69 10

7210 70 31

7210 70 39

7210 90 31

7210 90 33

7210 90 38

7211 13 00

7211 14 10

7211 14 90

7211 19 20

7211 19 90

7211 23 10

7211 23 51

7211 29 20

7211 90 11

7212 10 10

7212 10 91

7212 20 11

7212 30 11

7212 40 10

7212 40 91

7212 50 31

7212 50 51

7212 60 11

7212 60 91

7213 10 00

7213 20 00

7213 91 10

7213 91 20

7213 91 41

7213 91 49

7213 91 70

7213 91 90

7213 99 10

7213 99 90

7214 20 00

7214 30 00

7214 91 10

7214 91 90

7214 99 10

7214 99 31

7214 99 39

7214 99 50

7214 99 61

7214 99 69

7214 99 80

7214 99 90

7215 90 10

7216 10 00

7216 21 00

7216 22 00

7216 31 11

7216 31 19

7216 31 91

7216 31 99

7216 32 11

7216 32 19

7216 32 91

7216 32 99

7216 33 10

7216 33 90

7216 40 10

7216 40 90

7216 50 10

7216 50 91

7216 50 99

7216 99 10

7218 91 11

7218 91 19

7218 99 11

7218 99 20

7219 11 00

7219 12 10

7219 12 90

7219 13 10

7219 13 90

7219 14 10

7219 14 90

7219 21 10

7219 21 90

7219 22 10

7219 22 90

7219 23 00

7219 24 00

7219 31 00

7219 32 10

7219 32 90

7219 33 10

7219 33 90

7219 34 10

7219 34 90

7219 35 10

7219 35 90

7219 90 10

7220 11 00

7220 12 00

7220 20 10

7220 90 11

7220 90 31

7221 00 10

7221 00 90

7222 11 11

7222 11 19

7222 11 21

7222 11 29

7222 11 91

7222 11 99

7222 19 10

7222 19 90

7222 30 10

7222 40 10

7222 40 30

7224 10 00

7224 90 01

7224 90 05

7224 90 08

7224 90 15

7224 90 31

7224 90 39

7225 11 00

7225 19 10

7225 19 90

7225 20 20

7225 30 00

7225 40 20

7225 40 50

7225 40 80

7225 50 00

7225 91 10

7225 92 10

7225 99 10

7226 11 10

7226 19 10

7226 19 30

7226 20 20

7226 91 10

7226 91 90

7226 92 10

7226 93 20

7226 94 20

7226 99 20

7227 10 00

7227 20 00

7227 90 10

7227 90 50

7227 90 95

7228 10 10

7228 10 30

7228 20 11

7228 20 19

7228 30 20

7228 30 41

7228 30 49

7228 30 61

7228 30 69

7228 30 70

7228 30 89

7228 60 10

7228 70 10

7228 70 31

7228 80 10

7228 80 90

7301 10 00

7302 10 31

7302 10 39

7302 10 90

7302 20 00

7302 40 10

7302 90 10

Agreed minute No 1

In the context of the Agreement between the European Coal and Steel Community and the Russian Federation on trade in certain steel products signed in Brussels on 9 July 2002 the Parties agree that:

- in pursuance of the exchange of information foreseen in Article 4(1) concerning export licences and import authorizations, the Parties will supply that information by reference to the Member States in addition to the Community as a whole,

- if the Parties are unable to reach a satisfactory solution during the consultations foreseen by Article 5(2), Russia will cooperate, if so requested by the Community, by not issuing export licences for an intended destination where imports pursuant to such licences would aggravate the problems resulting from sudden and prejudicial changes in traditional trade flows, it being understood that Russia may continue to issue licences for other Community destinations,

the Parties will cooperate closely in order to prevent sudden and prejudicial changes in traditional trade flows in respect of coils for re-rolling (product group SA1a); Russia will give priority to deliveries to its traditional customers for these products in order to avoid disturbing the Community market, and both Parties will inform the other immediately in the event of any emerging problems, and

- Russia will take due account of the sensitive nature of small regional markets within the Community both as regards their traditional needs for supplies and the avoidance of regional concentrations.

Agreed minute No 2

In the context of the conclusions of the negotiations of the new Agreement, the Parties have agreed to include in the product coverage of the agreement steel products alloyed with boron classified under the EU Combined Nomenclature 7226 20 20, 7226 91 10, 7226 91 90, 7226 99 20 in order to address the concerns of the EU that imports of these products could be regarded as circumvention of the Agreement.

The Parties agree that any similar use of alloyed steel products which would have as effect of creating a similar situation would not be compatible with a fair implementation of, and could be considered as an infringement of, the new Agreement. In such a case, the Parties shall enter immediately into consultations with the objective of finding rapidly an acceptable solution. If no acceptable solution is agreed within 3 months of the date of the notification of the problem, the parties may take appropriate measures until an acceptable solution is agreed.

The content of this agreed minutes will constitute an integral part of the new Agreement.

Declaration No 1

In the case Russian operators were to set up service centers in the EU that would further process products imported from Russia and covered by this Agreement, Russia declares that it could request an increase of quantitative limits mentioned in Annex II. In this case, the Commission could examine such request of increase if the market situation allows it.

Declaration No 2

The Parties declare that they aim at achieving complete liberalisation of trade in steel products. Both Parties also recognize that it is an important condition for promoting trade between them that competition, State aid and environment provisions applicable within each Party must be compatible. To this end, and upon request from Russia, the Community shall provide technical assistance, within relevant earmarked budgetary limits, to help Russia to adopt and implement legislative provisions compatible with those adopted and applied by the Community. The technical assistance shall be channelled through detailed projects agreed by both Parties.

Declaration No 3

In the context of the Agreement between the European Coal and Steel Community and the Russian Federation on trade in certain steel products signed in Brussels on 9 July 2002, the Parties agree that they shall not apply with respect to the other Party quantitative restrictions, customs duties, charges or any similar measures on the export of ferrous waste and scrap under the EC Combined Nomenclature heading 7204, without prejudice to the provisions of Article 19 of the Partnership and Cooperation Agreement.

Without prejudice to paragraph 1, in order not to delay the conclusion of this Agreement and due to lack of time, the Parties agreed to leave unresolved the issue of the tax introduced by Russia on exports of ferrous waste and scrap under the EC combined Nomenclature 7204. The tax is currently set at 15 % but not less than EUR 15 per ton for all products of 7204, except for product 7204 41 00 where the tax is set at 5 %. Nevertheless, the Parties agree to continue the discussion to find a satisfactory solution as soon as possible.

It is understood that the quantitative limits set out in Annex II of the Agreement would be increased by 12 % if the Russian Federation removes completely the tax or by a lower percentage to be determined if such tax is reduced, provided that no other measures that would constitute an obstacle to free export are introduced by Russia.

The products of particular interest for the EC are: 7204 10 00, 7204 21 10, 7204 41 10, 7204 49 10, 7204 49 30, 7204 49 91 and 7204 49 99

Declaration No 4

With respect to export of ferrous waste and scrap under the EC Combined Nomenclature 7204, Russia declares that it will maintain the customs points currently open and that it will open 2 additional customs points at the latest by the date of entry into force of this Agreement to allow exports by road and rail through Central Europe: these customs points are Smolensk and Topoly-Solovej.

PROTOCOL A

TITLE I

CLASSIFICATION

Article 1

The competent authorities of the Community undertake to inform Russia of any changes in the combined nomenclature (CN) in respect of products covered by this Agreement before the date of their entry into force in the Community.

TITLE II

ORIGIN

Article 2

1. Products covered by this Agreement originating in Russia (as defined by the relevant Community Regulations) to be exported to the Community in accordance with the arrangements established by this Agreement shall be accompanied by a certificate of Russian origin conforming to the model annexed to this Protocol.

2. The certificate of origin shall be certified by the competent Russian organizations authorized under Russian legislation as to whether the products in question can be considered as products originating in that country.

Article 3

The certificate of origin shall be issued only on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorized representative. The competent Russian organizations authorized under Russian legislation shall ensure that the certificate of origin is properly completed and for this purpose they shall request for any necessary documentary evidence or carry out any checking which they consider appropriate.

Article 4

The discovery of slight discrepancies between the statements made in the certificate of origin and those made in the documents produced to the customs office for the purpose of carrying out the necessary formalities for importing the products shall not ipso facto cast doubt upon the statements in the certificate.

TITLE III

DOUBLE-CHECKING SYSTEM FOR PRODUCTS SUBJECT TO QUANTITATIVE LIMITS

SECTION I

Exportation

Article 5

The appropriate Russian governmental authorities shall issue an export licence in respect of all consignments from Russia of steel products covered by the Agreement up to the relevant quantitative limits set out in Annex II to the Agreement.

Article 6

1. The export licence shall conform to the model annexed to this Protocol and it shall be valid for exports throughout the customs territory of the Community.

2. Each export licence must certify inter alia that the quantity of the product in question has been set off against the relevant quantitative limit established for the product concerned in Annex II to the Agreement.

Article 7

The competent authorities of the Community must be informed immediately of the withdrawal or modification of any export licence already issued.

Article 8

1. Exports shall be set off against the quantitative limits established for the year in which the shipment of goods has been effected even if the export licence is issued after such shipment.

2. For the purposes of applying paragraph 1, shipment of goods is considered to have taken place on the date of their loading onto the exporting transport as evidenced by their bill of lading or other transport document.

SECTION II

Importation

Article 9

1. Steel products originating in Russia, covered by a valid import licence issued pursuant to Decision 2001/932/ECSC(1), as amended, which were already sent to the Community before the date of entry into force of this Agreement shall be admitted within the limits applicable for the period from 1 January 2002 to 31 December 2002.

2. The release for free circulation into the Community of the products covered by the Agreement shall be subject to the presentation of an import authorization.

Article 10

1. The presentation by the importer of an export licence shall be made not later than 31 March of the year following that in which the goods covered by the licence have been shipped.

2. The competent authorities of the Community shall issue the import authorization referred to in Article 9 above, within 10 working days of the presentation by the importer of the original of the corresponding export licence. A list of the competent authorities is annexed to this Protocol.

3. The import authorizations shall be valid for four months from the date of their issue for importation throughout the customs territory of the Community.

4. The competent authorities of the Community shall cancel the import authorization already issued whenever the corresponding export licence has been withdrawn.

However, if the competent authorities of the Community are notified of the withdrawal or the cancellation of the export licence only after the release for free circulation of the products into the Community, the relevant quantities shall be set off against the limits established for the product.

Article 11

If the competent authorities of the Community find that the total quantity of the products covered by export licences issued by the competent authorities of Russia exceed the limits set out in Annex II to the Agreement, the Community authorities shall suspend the further issue of import authorizations. In this event, the competent authorities of the Community shall immediately inform the competent authorities of Russia and immediate consultations pursuant to Article 9(2) of the Agreement shall be initiated.

TITLE IV

FORM AND PRODUCTION OF EXPORT LICENCES AND CERTIFICATES OF ORIGIN, AND COMMON PROVISIONS CONCERNING EXPORTS TO THE COMMUNITY

Article 12

1. The export licence and the certificate of origin may comprise additional copies duly indicated as such. They shall be made out in English. If they are completed by hand, entries must be in ink and in printed script.

These documents shall measure 210 × 297 mm. The paper used shall be white writing paper, sized, not containing mechanical pulp, and weighing not less than 25 g/m2; If the documents have several copies only the top copy, which is the original, shall be printed with the guilloche pattern background. This copy shall be clearly marked 'original' and the other copies "copies". Only the original shall be accepted by the competent authorities of the Community as being valid for the purpose of export to the Community in accordance with the provisions of the Agreement.

2. Each document shall bear a standardized serial number, whether or not printed, by which it can be identified.

This number shall be composed of the following elements:

- two letters identifying the exporting country as follows: RU,

- two letters identifying the intended Member State of customs clearance as follows:

BE= Belgium

DK= Denmark

DE= Germany

EL= Greece

ES= Spain

FR= France

IE= Ireland

IT= Italy

LU= Luxembourg

NL= Netherlands

AT= Austria

PT= Portugal

FI= Finland

SE= Sweden

GB= United Kingdom,

- a one-digit number identifying the year in question corresponding to the last figure in the year, e.g. "2" for year 2002,

- a two-digit number from 01 to 99, identifying the particular issuing office concerned in exporting country,

- a five-digit number running consecutively from 00001 to 99999 allocated to the intended Member State of customs clearance.

Article 13

The export licence and the certificate of origin may be issued after the shipment of the products to which they relate. In such cases, they must bear the endorsement "issued retrospectively".

Article 14

1. In the event of the theft, loss or destruction of an export licence or a certificate of origin, the exporter may apply to the competent Russian authorities which issued the document for a duplicate to be made out on the basis of the export documents in his possession. The duplicate of any such certificate or licence so issued shall bear the endorsement "duplicate".

2. The duplicate shall bear the date of the original export licence or certificate of origin.

TITLE V

ADMINISTRATIVE COOPERATION

Article 15

The Community and Russia shall cooperate closely in the implementation of the provisions of this Protocol. To this end, contacts and exchanges of views, including on technical matters, shall be facilitated by both Parties.

Article 16

In order to ensure the correct application of this Protocol, the Community and Russia offer mutual assistance for the checking of the authenticity and the accuracy of export licences issued and certificates of origin issued or of any declarations made within the terms of this Protocol.

Article 17

Russia shall send the Commission of the European Communities the names and addresses of the competent Russian governmental authorities which are authorized to issue and to verify export licences and the competent Russian organizations authorized under Russian legislation to issue certificates of origin together with specimens of the stamps and signatures they use. Russia shall also notify the Commission of any change in these particulars.

Article 18

1. Subsequent verification of certificates of origin or export licences shall be carried out at random, or whenever the competent Community authorities have reasonable doubt as to the authenticity of the certificate or licence or as to the accuracy of the information regarding the true origin of the products in question.

2. In such cases, the competent authorities in the Community shall return the certificate of origin or the export licence or a copy thereof to the appropriate Russian authorities giving, where appropriate, the reasons of form or substance which justify an enquiry. If the invoice has been submitted, such invoice or a copy thereof shall be attached to the certificate or to the licence or their copies. The authorities shall also forward any information that has been obtained suggesting that the particulars given on the said certificate or licence are inaccurate.

3. The provisions of paragraph 1 above shall also apply to subsequent verifications of the certificates of origin provided for in Article 2 of this Protocol.

4. The results of the subsequent verifications carried out in accordance with paragraphs 1 and 2 shall be communicated to the competent authorities of the Community within three months at the latest. The information communicated shall indicate whether the disputed certificate or licence applies to the goods actually exported and whether these goods are eligible for export under the arrangements established by the Agreement. The information shall also include, at the request of the Community, copies of all the documentation necessary to fully determine the facts, and in particular the true origin of the goods.

5. For the purpose of subsequent verification of certificates of origin, copies of the certificates as well as any export documents referring to them shall be kept by the competent Russian organizations for at least one year following the end of the Agreement.

6. Recourse to the random verification procedure specified in this Article must not constitute an obstacle to the release for free circulation of the products in question.

Article 19

1. Where the verification procedure referred to in Article 18 or where information available to the competent authorities of the Community or of Russia indicates or appears to indicate that the provisions of this Agreement are being circumvented or infringed, the two Parties shall cooperate closely and with the appropriate urgency in order to prevent any such circumvention or infringement.

2. To this end, the appropriate Russian authorities shall, on their own initiative or at the request of the Community, carry out appropriate inquiries, or arrange for such inquiries to be carried out, concerning operations which are, or appear to the Community to be, in circumvention or infringement of this Protocol. Russia shall communicate the results of these inquiries to the Community, including any other pertinent information enabling the cause of the circumvention or infringement, including the true origin of the goods to be determined.

3. By agreement between the Community and Russia, officials designated by the Community may be present at the inquiries referred to in paragraph 2 above.

4. In pursuance of the cooperation referred to in paragraph 1 above, the competent authorities of the Community and Russia shall exchange any information considered by either Party to be of use in preventing circumvention or infringement of the provisions of this Agreement. These exchanges may include information on the trade in the type of products covered by this Agreement between Russia and third countries, particularly where the Community has reasonable grounds to consider that the products in question may be in transit across the territory of Russia prior to their importation into the Community. This information may include, at the request of the Community, copies of all relevant documentation, where available.

5. Where sufficient evidence shows that the provisions of this Protocol have been circumvented or infringed, the competent authorities of Russia and the Community may agree to take any measures necessary to prevent a recurrence of such circumvention or infringement.

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LISTA DE LAS AUTORIDADES NACIONALES COMPETENTES/LISTE OVER KOMPETENTE NATIONALE MYNDIGHEDER/LISTE DER ZUSTÄNDIGEN BEHÖRDEN DER MITGLIEDSTAATEN/ΔΙΕΥΘΥΝΣΕΙΣ ΤΩΝ ΑΡΧΩΝ ΕΚΔΟΣΗΣ ΑΔΕΙΩΝ ΤΩΝ ΚΡΑΤΩΝ ΜΕΛΩΝ/LIST OF THE COMPETENT NATIONAL AUTHORITIES/LISTE DES AUTORITÉS NATIONALES COMPÉTENTES/ELENCO DELLE COMPETENTI AUTORITÀ NAZIONALI/LIJST VAN BEVOEGDE NATIONALE INSTANTIES/LISTA DAS AUTORIDADES NACIONAIS COMPETENTES/LUETTELO TOIMIVALTAISISTA KANSALLISISTA VIRANOMAISISTA/FÖRTECKNING ÖVER BEHÖRIGA NATIONELLA MYNDIGHETER

BELGIQUE/BELGIË

Ministère des affaires économiques Administration des relations économiques

Services Licences

Rue Général Leman 60 B - 1040 Bruxelles Fax (32-2) 230 83 22 Ministerie van Economische Zaken Bestuur van de Economische Betrekkingen

Dienst Vergunningen

Generaal Lemanstraat 60 B - 1040 Brussel Fax (32-2) 230 83 22

DANMARK

Erhvervsfremme Styrelsen Økonomi- og Erhvervsministeriet Vejlsøvej 29 DK - 8600 Silkeborg Fax: (45) 35 46 64 01

DEUTSCHLAND

Bundesamt für Wirtschaft und Ausfuhrkontrolle, (BAFA) Frankfurter Straße 29-35 D - 65760 Eschborn 1 Fax (49-6196) 942 26

ΕΛΛΑΔΑ

Υπουργείο Εθνικής Οικονομίας Γενική Γραμματεία Διεθνών Σχέσεων

Διεύθυνση Διεθνών Οικονομικών Ροών

Κορνάρου 1 GR - 105 63 Αθήνα Φαξ: (30 10) 328 60 94

ESPAÑA

Ministerio de Economía Secretaría General de Comercio Exterior Paseo de la Castellana 162 E - 28046 Madrid Fax: +34-1-563 18 23/349 38 31

FRANCE

Setice 8, rue de la Tour-des-Dames F - 75436 Paris Cedex 09 Fax (33) 155 07 46 69

IRELAND

Department of Enterprise, Trade and Employment Import/Export Licensing, Block C Earlsfort Centre

Hatch Street

Dublin 2 Ireland Fax (353-1) 631 28 26

ITALIA

Ministero delle Attività produttive Direzione generale per la Politica commerciale e per la gestione del regime degli scambi Viale America, 341 I - 00144 Roma Fax (39-06) 59 93 22 35/59 93 26 36

LUXEMBOURG

Ministère des affaires étrangères Office des licences BP 113 L - 2011 Luxembourg Fax (352) 46 61 38

NEDERLAND

Belastingdienst/Douane centrale dienst voor in- en uitvoer Postbus 30003, Engelse Kamp 2 9700 RD Groningen Nederland Fax (31) 505 26 06 98 m.i.v. 18.1.2002

Fax (31) 505 23 23 41

ÖSTERREICH

Bundesministerium für Wirtschaft und Arbeit Aussenwirtschaftsadministration Landstrasser Hauptstraße 55-57 A - 1030 Wien Fax + 43-1-711 00/8386

PORTUGAL

Ministério da Economia Direcção-Geral das Relações Económicas Internacionais Alfândega de Lisboa, Largo do Terreiro do Trigo P - 1100 Lisboa Fax: (351-21) 881 42 61

SUOMI

Tullihallitus PL 512 FIN - 00101 Helsinki Faksi (358-9) 614 28 52

SVERIGE

Kommerskollegium Box 6803 S - 113 86 Stockholm Fax: (46-8) 30 67 59

UNITED KINGDOM

Department of Trade and Industry Import Licensing Branch Queensway House, West Precinct Billingham Cleveland TS23 2NF United Kingdom Fax (44) 1642 533 557

(1) OJ L 345, 29.12.2001, p. 71.