Agreement

between the European Community and the Government of the Republic of Kazakhstan on trade in certain steel products

THE EUROPEAN COMMUNITY,

of the one part, and

THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN,

of the other part,

being the Parties to this Agreement,

HAVE AGREED AS FOLLOWS:

Article 1

1. This Agreement applies to trade in (former ECSC) steel products.

2. Trade in steel products set out in Annex I may be subject to quantitative limits.

3. Trade in steel products not set out in Annex I shall not be subject to quantitative limits.

4. In the case of steel products and subject matters which are not covered by this Agreement, the relevant provisions of the PCA shall apply.

Article 2

1. The Parties agree to establish and maintain for each calendar year quantitative limits on the Kazakh exports to the Community as set out in Annex II for 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 reiterate their commitment to achieve complete liberalisation of trade in respect of the steel products mentioned in Annex I provided that compatible competitive conditions have been established.

3. Quantitative restrictions, customs duties, charges or any similar measures on the export of ferrous scrap and waste under the Combined Nomenclature heading 7204 are prohibited among the Parties.

4. The Parties agree that imports into the Community from Kazakhstan of products mentioned in Annex I as from 1.1.2005 until the entry into force of this Agreement shall be deducted from the quantitative limits set out in Annex II.

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

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

7. Either Party may, at any time, request consultations concerning:

- the levels of the quantitative limits set out in Annex II, where the conditions in respect of the products mentioned in Annex I have substantially deteriorated or improved,

- the possibility of transferring unused amounts from under-utilised product groups to other groups.

Article 3

1. Imports into the customs territory of the Community for free circulation of steel products mentioned in Annex I shall be subject to the presentation of an import authorisation issued by the competent authority of a Member State based on the production of an export licence issued by the authorities of Kazakhstan and to a certificate of origin in accordance with the provisions of Protocol A.

2. Imports into the customs territory of the Community of steel products mentioned 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. Carryover to the corresponding quantitative limits for the following calendar year of the amounts of quantitative limits set out in Annex II not used during the first calendar year is authorised up to 10 % of the relevant quantitative limit for the year in which it was not used. Kazakhstan shall notify the Community no later than 31 March of the following year if it intends to make use of this provision.

4. The quantitative limit for a given product group can be adjusted once in the course of a calendar year up to 10 % of the quantitative limit for a given product group, subject to 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. Kazakhstan shall notify the Community no later than 31 May 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 minimise the possibilities for abuse and circumvention:

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

- the Community authorities shall inform the Kazakh authorities by the 28th of each month of the import authorisations 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, both Parties agree to take all necessary steps to prevent, to investigate and to take any necessary legal and/or administration action against circumvention 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 and by whatever other means. Accordingly, the Parties 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 either Party believe on the basis of information available that this Agreement is being circumvented, it may request consultations with the other Party which shall be held immediately.

4. Pending the results of the consultations referred to in paragraph 3, and if requested by the Community and on provision of sufficient evidence, Kazakhstan shall ensure that any adjustments of the quantitative limits which may result from such consultations, are 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, where there is sufficient evidence that steel products covered by this Agreement originating in Kazakhstan have been imported in circumvention of this Agreement, to set off the relevant quantities against the quantitative limits set out in Annex II.

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

7. 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 set out in Annex II on imports into the Community of the steel products set out in Annex I 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 supplies), 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. Kazakhstan shall endeavour to ensure that exports into the Community of steel products mentioned 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 Kazakh 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 Kazakh authorities may continue to issue export licences for the products covered by this Agreement provided they do not exceed the quantities set out in Annex II.

Article 6

1. Where any product covered by this Agreement is being imported into the Community from Kazakhstan under such conditions as to cause or threaten to cause substantial injury to Community producers of like products, the Community shall supply Kazakhstan with all relevant information with a view to seeking a solution acceptable to both Parties. The Parties shall commence consultations immediately.

2. Should the consultations referred to in paragraph 1 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 PCA.

3. Notwithstanding the provisions of this Agreement, the provisions of Article 13.6 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) and any amendments thereof. Any amendment to the combined nomenclature made in accordance with the procedures in force in the Community concerning the products covered by this Agreement or any decision relating to the classification of goods shall not have the effect of reducing the quantitative limits set out in 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 Kazakhstan and shall not have the effect of reducing the quantitative limits set out in Annex II. 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 authorisations pursuant to Article 4(1), the Parties agree to exchange full statistical information relating to the products mentioned 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 authorisations issued pursuant to Article 3, 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 of the Parties. 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 Contracting 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 arrive at a mutually acceptable result within one month of their commencement, unless the period is extended by agreement between the Parties.

4. Specific additional consultations may also be held by agreement between the Parties.

Article 10

Both Parties aim at achieving complete liberalisation of trade in steel products and recognise 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 Kazakhstan, the Community shall provide technical assistance to help Kazakhstan to adopt and implement legislative provisions compatible with those adopted and applied by the Community. Such assistance shall be specified in projects to be agreed by both Parties and identifying clearly, inter alia, the objectives, the means and the calendar.

Article 11

1. This Agreement shall enter into force on the day of its signature. It shall be applicable until 31 December 2006 unless it is denounced or terminated in accordance with, respectively, the provisions of paragraph 3 or 4.

2. Either Party may at any time propose modifications to this Agreement which at the request of either Party shall be the subject of consultations.

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 quantitative limits in the Community established in Annex II shall be reduced on a pro rata basis up to the date on which denunciation takes effect unless the Parties decide otherwise.

4. In the event that Kazakhstan accedes to the WTO before the expiration of this Agreement, the Agreement shall be terminated as of the date of accession.

5. The Community reserves the right at all times to take all appropriate measures including, where the Parties are unable to reach a mutually satisfactory solution in the consultations foreseen in previous Articles or where this Agreement is denounced by either Party, the reintroduction of a system of autonomous quotas in respect of exports from Kazakhstan of the products mentioned in Annex I.

6. The Annexes, the Agreed Minute and Protocol A annexed to this Agreement shall form an integral part thereof.

Article 12

This Agreement shall be drawn up in duplicate in the Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Slovak, Slovenian, Spanish, Swedish, Kazakh and Russian languages, each of these texts being equally authentic.

Hecho en Bruselas, el diecinueve de julio del dos mil cinco.

V Bruselu dne devatenáctého července dva tisíce pět.

Udfærdiget i Bruxelles den nittende juli to tusind og fem.

Geschehen zu Brüssel am neunzehnten Juli zweitausendfünf.

Kahe tuhande viienda aasta juulikuu üheksateistkümnendal päeval Brüsselis.

Έγινε στις Βρυξέλλες, στις δεκαεννέα Ιουλίου δύο χιλιάδες πέντε.

Done at Brussels on the nineteenth day of July in the year two thousand and five.

Fait à Bruxelles, le dix-neuf juillet deux mille cinq.

Fatto a Bruxelles, addi' diciannove luglio duemilacinque.

Briselē, divtūkstoš piektā gada deviņpadsmitajā jūlijā.

Priimta du tūkstančiai penktų metų liepos devynioliktą dieną Briuselyje.

Kelt Brüsszelben, a kettőezer ötödik év július tizenkilencedik napján.

Magħmul fi Brussel, fid-dsatax jum ta' Lulju tas-sena elfejn u ħamsa.

Gedaan te Brussel, de negentiende juli tweeduizend vijf.

Sporządzono w Brukseli dnia dziewiętnastego lipca roku dwutysięcznego piątego.

Feito em Bruxelas, em dezanove de Julho de dois mil e cinco.

V Bruslju, devetnajstega julija leta dva tisoč pet.

V Bruseli dňa devätnásteho júla dvetisícpäť.

Tehty Brysselissä yhdeksäntenätoista päivänä heinäkuuta vuonna kaksituhattaviisi.

Som skedde i Bryssel den nittonde juli tjugohundrafem.

Совершено в городе Брюсселе девятнадцатого июля две тысячи пятого года.

Por la Comunidad Europea

Za Evropské společenství

For Det Europæiske Fællesskab

Für die Europäische Gemeinschaft

Euroopa Ühenduse nimel

Για την Ευρωπαϊκή Κοινότητα

For the European Community

Pour la Communauté européenne

Per la Comunità europea

Eiropas Kopienas vārdā

Europos bendrijos vardu

az Európai Közösség részéről

Għall-Komunità Ewropea

Voor de Europese Gemeenschap

W imieniu Wspólnoty Europejskiej

Pela Comunidade Europeia

Za Európske spoločenstvo

Za Evropsko skupnost

Euroopan yhteisön puolesta

På Europeiska gemenskapens vägnar

За Европейское сообщество

Por el Gobierno de la República de Kazajstán

Za vládu Republiky Kazachstán

For regeringen for Republikken Kasakhstan

Im Namen der Regierung der Republik Kasachstan

Kasahstani Vabariigi valitsuse nimel

Για την κυβέρνηση της Δημοκρατίας του Καζακστάν

For the Government of the Republic of Kazakhstan

Pour le gouvernement de la République du Kazakhstan

Per il governo della Repubblica del Kazakstan

Kazahstānas Republikas valdības vārdā

Kazachstano Respublikos Vyriausybės vardu

a Kazah Köztársaság Kormánya részéről

Għall-Gvern tar-Repubblika tal-Kazakastan

Voor de regering van de Republiek Kazachstan

W imieniu rządu Republiki Kazachstanu

Pelo Governo da República do Cazaquistão

Za vládu Kazašskej republiky

Za Vlado Republike Kazahstan

Kazakstanin tasavallan hallituksen puolesta

På Republiken Kazakstans regerings vägnar

За Правительство Республики Казахстан

[1] OJ L 196, 28.7.1999, p. 3.

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