AGREEMENT between the European Coal and Steel Community and 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 an agreement concerning trade in products covered by the Treaty establishing the European Coal and Steel Community is foreseen by Article 21 (1) of the Agreement on Partnership and Cooperation establishing a Partnership between the European Communities and their Member States and the Russian Federation (hereinafter referred to as the 'Partnership and Cooperation Agreement`);

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 Article 53 of the Partnership and Cooperation Agreement provides the framework for mutual cooperation between the Parties in respect of competition and certain aids affecting trade between the Parties;

Whereas Article 17 of the Interim Agreement on trade and trade related matters between the parties, which entered into force on 1 February 1996 (1), provides the basis for implementation of the above-mentioned provisions of the Partnership and Cooperation Agreement;

Whereas market reforms in the Russian Federation are establishing a competitive environment in the Russian steel industry and the Parties desire to further develop cooperation on competition matters;

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 and 1996 trade in certain products covered by the Treaty establishing the European Coal and Steel Community was the subject of an agreement 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 the Parties reiterate their commitment to achieve complete liberalisation of trade in respect of the steel products covered by this Agreement provided that the competitive conditions envisaged in Protocol B have been established;

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 and to the Interim 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. 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 (hereinafter called 'the products covered by this Agreement`) shall be subject to the conditions set out in this Agreement. In the case of subject matter which is not covered by this Agreement, the relevant provisions of the bilateral agreements on trade and trade-related matters in force between the Parties shall apply.

2. Trade in the steel products covered by the ECSC Treaty but not set out in Annex I shall not be subject to quantitative limits and shall be governed by the relevant provisions of the bilateral trade agreements in force between the Parties, in particular those relating to anti-dumping procedures and safeguard measures.

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 covered by this Agreement. 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 covered by this Agreement provided that the competitive conditions envisaged in Protocol B have been established.

3. At the request of either Party, the Parties shall consult to determine whether the competitive conditions in respect of the products covered by the Agreement are such that quantitative restrictions are no longer necessary. The consultations foreseen by this paragraph may be requested at any time during the application of this Agreement.

4. Without prejudice to the provisions of paragraph 3, the Parties will effect a review of progress in the development of competitive conditions beginning not later than 30 months following the entry into force of this Agreement. The Parties will in any event meet to review the operation of this Agreement and to determine whether competitive conditions in respect of the products covered by the Agreement in the Russian Federation justify complete removal of quantitative restrictions in the EC, not later than six months prior to the expiry of this Agreement.

5. For the purposes of the consultations and evaluations foreseen in paragraphs 3 and 4, the Parties shall take account of the implementation by Russia of the provisions of Protocol B concerning competition, State aid and environmental protection in respect of the products covered by the Agreement.

6. Without prejudice to paragraph 3 either Party may, at any time, request consultations concerning the possibility of transferring unused amounts from underutilised product groups to other groups.

Article 3

1. Imports into the customs territory of the Community for free circulation of the products covered by this Agreement 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 covered by this Agreement 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 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). 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 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 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 following year, if the limit for that calendar year is exhausted.

5. In the absence of a mutually satisfactory solution, the Community shall have the right, where sufficient evidence of circumvention or false declaration by Russian producers and/or exporters exists:

(a) to set off the quantities imported by way of circumvention against the limits established under the Agreement;

(b) 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 ECSC 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 covered by this Agreement 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, and without prejudice to the consultations foreseen by Article 2 (6), 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 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 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 relevant agreements on trade and trade-related matters in force between the Parties.

3. The utilization of the right to consultations under paragraph 1 shall not preclude action concerning anti-dumping procedures pursuant to the provisions of the relevant agreements on trade and trade-related matters in force between the Parties, notwithstanding the quantitative limits set out in Annex II.

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 covered by this Agreement or any decision relating to the classification of goods shall not have the effect of reducing the quantitative limits of this Agreement.

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 covered by this Agreement 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 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 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. This Agreement shall enter into force on the day of its signature. It shall be applicable until 31 December 2001 subject to any modifications agreed by the Parties following consultations pursuant to Article 2 (3) and unless it is denounced in accordance with the provisions of paragraph 3 of this Article or terminated following the reviews foreseen in Article 2 (3) and (4).

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 this 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 Protocols attached to this Agreement shall form an integral part thereof.

6. In respect of the products covered by this Agreement, the provisions of this Agreement concerning competition, State aids and environmental protection shall supplement and, where necessary, prevail over provisions relating to the same subject matter contained in other bilateral trade and trade-related agreements between the Parties.

Article 11

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 13 de octubre de 1997.

Geschehen zu Brüssel am 13. Oktober 1997.

Udfærdiget i Bruxelles, den 13. oktober 1997.

Tehty Brysselissä 13 päivänä lokakuuta 1997.

Fait à Bruxelles, le 13 octobre 1997.

¸ãéíå óôéò ÂñõîÝëëåò, óôéò 13 Ïêôùâñßïõ 1997.

Done at Brussels, 13 October 1997.

Fatto a Bruxelles, il 13 ottobre 1997.

Gedaan te Brussel, 13 oktober 1997.

Feito em Bruxelas, em 13 de Outubro de 1997.

Utfärdat i Bryssel den 13 oktober 1997.

>REFERENCE TO A GRAPHIC>

Por la Comisión de las Comunidades Europeas

Für die Kommission der Europäischen Gemeinschaften

For Kommissionen for De Europæiske Fællesskaber

Euroopan yhteisöjen komission puolesta

Pour la Commission des Communautés européennes

Ãéá ôçí ÅðéôñïðÞ ôùí Åõñùðáúêþí ÊïéíïôÞôùí

For the Commission of the European Communities

Per la Commissione delle Comunità europee

Voor de Commissie van de Europese Gemeenschappen

Pela Comissão das Comunidades Europeias

På Europeiska gemenskapernas kommissionens vägnar

>REFERENCE TO A GRAPHIC>

Por el Gobierno de la Federación de Rusia

Für die Regierung der Russischen Föderation

For regeringen for Den Russiske Føderation

Venäjän federaation hallituksen puolesta

Pour le gouvernement de la Fédération russe

Ãéá ôçí êõâÝñíçóç ôçò ÑùóéêÞò Ïìïóðïíäßáò

For the Government of the Russian Federation

Per il governo della Federazione russa

Voor de regering van de Russische Federatie

Pelo Governo da Federação Russa

På Ryska Federationens vägnar

>REFERENCE TO A GRAPHIC>

(1) OJ L 247, 13. 10. 1995, p. 1.

ANNEX I

RUSSIA

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 19 10

7225 20 20

7225 30 00

SA1.a. 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 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

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

SB. Longs

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

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Agreed minute

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 13 October 1997 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.

Por la Comisión de las Comunidades Europeas

Für die Kommission der Europäischen Gemeinschaften

For Kommissionen for De Europæiske Fællesskaber

Euroopan yhteisöjen komission puolesta

Pour la Commission des Communautés européennes

Ãéá ôçí ÅðéôñïðÞ ôùí Åõñùðáúêþí ÊïéíïôÞôùí

For the Commission of the European Communities

Per la Commissione delle Comunità europee

Voor de Commissie van de Europese Gemeenschappen

Pela Comissão das Comunidades Europeias

På Europeiska gemenskapernas kommissionens vägnar

>REFERENCE TO A GRAPHIC>

Por el Gobierno de la Federación de Rusia

Für die Regierung der Russischen Föderation

For regeringen for Den Russiske Føderation

Venäjän federaation hallituksen puolesta

Pour le gouvernement de la Fédération russe

Ãéá ôçí êõâÝñíçóç ôçò ÑùóéêÞò Ïìïóðïíäßáò

For the Government of the Russian Federation

Per il governo della Federazione russa

Voor de regering van de Russische Federatie

Pelo Governo da Federação Russa

På Ryska Federationens vägnar

>REFERENCE TO A GRAPHIC>

Declaration No 1

For the purposes of the Agreement between the European Coal and Steel Community and the Russian Federation on trade in certain steel products signed in Brussels on 13 October 1997, the Parties agree that the relevant agreements on trade and trade-related matters shall, depending on their applicability, be as follows:

- the Interim Agreement on trade and trade-related matters between the European Community, the European Coal and Steel Community and European Atomic Energy Community, of the one part, and the Russian Federation, of the other part, which entered into force on 1 February 1996,

- the Agreement on Partnership and Cooperation establishing a Partnership between the European Communities and their Member States, of the one part, and the Russian Federation, of the other part, signed on 24 June 1994 at Corfu.

Declaration No 2

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 13 October 1997, and more particularly Article 9 thereof, the Parties agree that Russia may, following experience with the management of the Agreement, propose consultations concerning the quantitative limits in respect of the categories of products in order more appropriately to take account of the utilization of the quantitative limits.

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 13 October 1997, 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 Combined Nomenclature heading 7204, without prejudice to the provisions of Article 19 of the Partnership and Cooperation Agreement.

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 the Agreement before the date of their entry into force in the Community.

TITLE II ORIGIN

Article 2

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

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

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 Russian organizations authorized for such purposes under Russian legislation shall ensure that the certificate of origin is properly completed and for this purpose they shall call for any necessary documentary evidence or carry out any check 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 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 quantitative limits set out in Annex 2 of 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 2 of 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

The release for free circulation into the Community of steel products subject to quantitative limits shall be subject to the presentation of an import authorization.

Article 10

1. The presentation by the importer of an export licence shall be effected 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 8 above, within 9 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 imports 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 quantities covered by export licences issued by the competent authorities of Russia exceed the limits set out in Annex II of 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 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:

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- a one-digit number identifying the year in question corresponding to the last figure in the year, e.g. '7` for 1997,

- a two-digit number from 01 to 99, identifying the particular issuing office concerned in the 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 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 shall offer mutual assistance for the checking of the authenticity and the accuracy of export licences 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 appropriate 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 this information.

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 above 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, licence or declaration, 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 authorities 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 on 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 the 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 of infringement, including the true origin of the goods to be determined.

3. By agreement between the Parties, 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 the Agreement. These exchanges may include information on the trade in the type of products covered by the 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 as are necessary to prevent a recurrence of such circumvention or infringement.

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CERTIFICATE OF ORIGIN

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CERTIFICATE OF ORIGIN

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LISTA DE LAS AUTORIDADES NACIONALES COMPETENTES LISTE OVER KOMPETENTE NATIONALE MYNDIGHEDER LISTE DER ZUSTÄNDIGEN BEHÖRDEN DER MITGLIEDSTAATEN ÄÉÅÕÈÕÍÓÅÉÓ ÔÙÍ ÁÑ×ÙÍ ÅÊÄÏÓÇÓ ÁÄÅÉÙÍ ÔÙÍ ÊÑÁÔÙÍ ÌÅËÙÍ 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 LISTA ÖVER BEHÖRIGA NATIONELLA MYNDIGHETER

BELGIQUE/BELGIË

Administration des relations économiques

Quatrième division: Mise en oeuvre des politiques commerciales internationales - Services «Licences»

Rue Général Leman 60

B-1040 Bruxelles

Télécopieur: (32-2) 230 83 22

Bestuur van de Economische Betrekkingen

Vierde Afdeling: Toepassing van het Internationaal Handelsbeleid - Dienst Vergunningen

Generaal Lemanstraat 60

B-1040 Brussel

Fax: (32-2) 230 83 22

DANMARK

Erhvervsfremme Styrelsen

Søndergade 25

DK-8600 Silkeborg

Fax (45) 87 20 40 77

DEUTSCHLAND

Bundesamt für Wirtschaft, Dienst 01

Postfach 51 71

D-65762 Eschborn 1

Fax: (49) 6196 40 42 12

ÅËËÁÓ

Õðïõñãåßï ÅèíéêÞò Ïéêïíïìßáò

ÃåíéêÞ Ãñáììáôåßá ÄÏÓ

Äéåýèõíóç Äéáäéêáóéþí Åîùôåñéêïý Åìðïñßïõ

ÊïñíÜñïõ 1

GR-105 63 ÁèÞíá

ÔÝëåöáî: (301) 328 60 29/328 60 59/328 60 39

ESPAÑA

Ministerio de Economía y Hacienda

Dirección 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

Télécopieur: (33-1) 44 63 26 59

IRELAND

Licensing Unit

Department of Tourism and Trade

Kildare Street

IRL-Dublin 2

Fax: (353-1) 676 61 54

ITALIA

Ministero del Commercio con l'estero

Direzione generale per la politica commerciale e per la gestione del regime degli scambi

Viale America 341

I-00144 Roma

Telefax: (39-6) 59 93 22 35/59 93 26 36

LUXEMBOURG

Ministère des affaires étrangères

Office des licences

Boîte postale 113

L-2011 Luxembourg

Télécopieur: (352) 46 61 38

NEDERLAND

Centrale Dienst voor In- en Uitvoer

Postbus 30003

Engelse Kamp 2

NL-9700 RD Groningen

Fax: (31-50) 526 06 98

ÖSTERREICH

Bundesministerium für wirtschaftliche Angelegenheiten

Außenwirtschaftsadministration

Landstrasser Hauptstraße 55-57

A-1030 Wien

Fax: (43-1) 715 83 47

PORTUGAL

Direcção-Geral do Comércio Externo

Avenida da República, 79

P-1000 Lisboa

Telefax: (351-1) 793 22 10

SUOMI

Tullihallitus

PL 512

FIN-00101 Helsinki

Telekopio: +358-9 614 2852

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 TS23 2NF

Cleveland

Fax: (44) 1642 533 557

PROTOCOL B

Competition, State aid and environmental protection in respect of the products covered by this Agreement

TITLE I OBJECTIVES

Article 1

The aims of this Protocol shall be:

- to facilitate the achievement of appropriate market conditions for liberalization of trade in steel products through the progressive application of equivalent disciplines in respect of competition, State aid and environmental protection which are compatible with those in the Community, and

- to establish a framework for measuring progress towards the removal of restrictions on competition by enterprises or caused by State intervention in so far as they affect the trade between the Parties in the steel products covered by the Agreement.

TITLE II COMPETITION AND STATE AID

Article 2

1. The Community declares that for the ECSC steel sector, the following practices are incompatible with Community law:

(i) all agreements of cooperative or concentrative nature between undertakings, decisions by association of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;

(ii) abuse by one or more undertakings of a dominant position;

(iii) State aid in any form whatsoever except derogations allowed pursuant to the ECSC Treaty and secondary legislation.

2. The Russian Federation declares that in working towards the removal of restrictions on competition as foreseen by Article 53 of the Agreement on Partnership and Cooperation and the establishment of compatible disciplines as meant in Article 1 of this Protocol, it recognises the following to be incompatible with the good functioning of this Agreement:

(i) agreements between competing undertakings that have cumulative market shares of the product in question of more than 35 %, as well as agreements between non-competing undertakings, one of which has a dominant position and the other is a supplier or buyer, where such agreements lead to restrictions in competition;

(ii) abuse by one or more undertakings of a dominant position;

(iii) State aid in any form whatsoever except aid for research and development, environmental protection or for the closure of plant or for appropriately defined measures in respect of social support in the context of these closures.

Article 3

1. By the end of the third year after the entry into force of the agreement, the Parties will agree the necessary rules and measures for the implementation of Article 2 paragraph 2 in respect of the products covered by this Agreement by means of an Agreement in the Form of an Exchange of Letters.

2. No later than six months before the expiry of the Agreement, the Parties shall apply compatible disciplines in respect of competition, State aid and environmental protection, in so far as they may affect trade between the Community and Russia in respect of the products covered by this Agreement.

Article 4

1. The Parties shall ensure transparency in the area of State aid within their respective territories, inter alia, by provision of relevant information to the coal and steel Contact Group established by the Interim Agreement on trade and trade-related matters between the Parties. Either of the Parties may raise in the coal and steel Contact Group any matter relating to aid which it considers to be incompatible with this Agreement.

2. In the implementation of the provisions foreseen by Articles 2 and 3, the Parties agree to cooperate closely and to keep each other fully informed of all legislative proposals prior to their coming into force.

Article 5

1. The Parties recognize that during a transitional period expiring five years after the entry into force of this Agreement, and by way of derogation from Article 2 (2) (iii) of this Protocol, Russia may grant State aid on an exceptional basis for restructuring purposes for individual steel firms, provided that:

- transparency is ensured by a full and continuous exchange of information concerning the implementation of the overall restructuring programme, and shall include details of the amount, intensity and purposes of the aid for the benefiting firm as well as the restructuring plan of the benefiting firm; and

- the restructuring of the benefiting firm takes place within the context of the overall restructuring programme leading to rationalization and a reduction of capacity to produce hot-rolled products; and

- the aid to the viability of the benefiting firms under normal market conditions at the end of the restructuring period, and

- the amount of aid granted is not out of proportion to its objectives and is strictly limited, in amount and intensity, to what is absolutely necessary to bring about or restore viability.

2. Russia shall inform the Community in sufficient time of any aid proposed to be granted under this Article and will provide the Community with all the necessary information which is required in order to assess whether the aid and the restructuring meet the criteria above.

TITLE III ENVIRONMENTAL PROTECTION

Article 6

1. The Parties agree to cooperate in order to combat the deterioration of the environment, resulting from activities in the steel sector, including on the basis of the environmental provisions of the Partnership and Cooperation Agreement.

2. The Parties agree to keep each other fully informed of major environmental problems in the steel sector within their respective territories by way of providing the relevant information to the coal and steel Contact Group.

3. The Parties shall comply with the relevant international environmental agreements to which they are already Parties applying, inter alia, to activities in the steel sector. The Parties endeavour to join and to implement other such agreements. These abovementioned agreements include, in particular, the 1979 Convention on long range transboundary air pollution and its protocols, the 1991 Convention on environmental impact assessment in a transboundary context, the 1992 Convention on the protection and use of transboundary watercourses and international lakes, the 1992 Convention on transboundary effects of industrial accidents, and the 1992 Framework Convention on climate change.

TITLE IV TECHNICAL COOPERATION

Article 7

The Community will provide within available resources technical assistance to Russia for the implementation of this Protocol, in particular for the development of rules on competition and State aid and elaboration of the necessary implementation mechanisms.

Declaration by the European Coal and Steel Community on Article 3 of Protocol B

The Community declares that, until the entry into force of the provisions referred to in Article 3 (1) of Protocol B, it will measure any practices relating to Article 2 on the basis of the criteria resulting from the rules contained in Articles 85, 86 and 92 of the Treaty establishing the European Community, Articles 65 and 66 of the Treaty establishing the European Coal and Steel Community and the Community rules on State aids, including secondary legislation.

In particular, the Community considers as State aid any aid which is granted by federal, State, regional or local authorities. It also considers that State aid shall include, inter alia, acquisitions of shareholdings or provisions of capital or similar financing which cannot be regarded as a genuine provision of risk capital according to usual investment practice in a market economy.