Agreement in the form of an Exchange of Letters

between the European Community and Switzerland concerning the extension of the common communication network/common system interface (CCN/CSI) within the framework of the Convention on a common transit procedure

A. Letter from the European Community

Brussels, 13 April 2000

Sir,

Regarding the extension of the use of the common communication network/common system interface (CCN/CSI) for the new computerised transit system to Switzerland(1), I would like to propose the following commitment on behalf of the European Community:

I. The Parties will comply with the technical specifications set out in the documents listed in the Annex to this letter which have been made available to Switzerland, together with any future amendments which may be made in connection with the project.

II. The Commission of the European Communities (hereinafter referred to as the "Commission") will manage and develop the system in accordance with the guidelines drawn up by the Customs Policy Committee - Working Party on Data Processing - CCN/CSI Technical Subgroup (CPC-CWP -CCN/CSI) for the partner countries also.

III. The Parties will comply with the rules on general security policy as laid down and decided within the framework of the project.

IV. Not later than 15 May 2000, Switzerland will pay the costs of installing the CCN/CSI as justified by the Commission on the basis of the specific Agreement which it has concluded for that purpose with the subcontractor.

V. Not later than 15 May 2000, Switzerland will pay the costs of operating the network as incurred by the Commission from the date of installation of the hardware and software up to 31 December 1999.

VI. On 15 May each year, Switzerland will pay a flat-rate sum (EUR 90000 for the year 2000) for the annual cost of Switzerland's use of the network. Before 31 July each year, the Commission will inform Switzerland of the flat-rate sum for the following year.

VII. Before 31 January each year, the Commission will clear the accounts relating to the annual costs of operating the network on the basis of the sum already paid and the actual costs chargeable to Switzerland and will provide Switzerland with a statement of account. The Commission will calculate tha actual costs on the basis of its relationship with the subcontractor chosen in accordance with the current procedures for the award of contracts. The final payment (payment of the balance) will take place 30 days after the presentation of the statement of account. The total amount to be paid by Switzerland will not in any case exceed by more than 20 % the annual flat-rate sum already paid.

VIII. In the same way as the Member States of the European Union, Switzerland will be kept informed of the forecast trends in these costs as well as of the main aspects of the development of the CCN/CSI which are likely to have an impact on those costs.

IX. Not later than 15 May 2000, Switzerland will pay the sum of EUR 40000 by way of an annual deposit for future development and contingencies. The Commission will provide Switzerland with a statement of account specifying the breakdown of costs chargeable to that deposit. Not later than 15 May each year, Switzerland will replenish the deposit by paying a sum corresponding to the amount actually used for future development and contingencies in the previous year.

X. All payments must be made to the Commission. Unless specified otherwise, they will be based on a statement of account issued by the Commission containing a breakdown of costs identifying the different services and the supply of hardware and software, payable within 60 days.

XI. This Agreement will remain in force as long as the two Parties are contracting Parties to the Convention of 20 May 1987 on a common transit procedure. However, both Parties shall reserve the right to amend the Agreement by mutual agreement.

XII. If Switzerland pays the amounts provided for in points IV, V, VI, VII and IX later than the dates specified in those points, the European Union may charge interest on the arrears (at the rate applied by the European Central Bank to its operations in euro, published in the "C" series of the Official Journal, on the day on which the deadline for repayment expires, plus one and a half points). The same rate will apply to payments to be made by the Community.

I would be grateful if you could confirm the agreement of Switzerland to the above.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the Council of the European Union

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ANNEX TO THE EXCHANGE OF LETTERS

CCN/CSI EXTERNAL DOCUMENTATION

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B. Letter from Switzerland

Berne, 14 April 2000

Sir,

I hereby acknowledge receipt of your letter concerning the extension of the use of the common communication network/common system interface (CCN/CSI) for the NCTS to Switzerland, which reads as follows:

"Regarding the extension of the use of the common communication network/common system interface (CCN/CSI) for the new computerised transit system to Switzerland(2), I would like to propose the following commitment on behalf of the European Community:

I. The Parties will comply with the technical specifications set out in the documents listed in the Annex to this letter which have been made available to Switzerland, together with any future amendments which may be made in connection with the project.

II. The European Commission will manage and develop the system in accordance with the guidelines drawn up by the Customs Policy Committee - Working Party on Data Processing - CCN/CSI Technical Subgroup (CPC-CWP-CCN/CSI) for the partner countries also.

III. The Parties will comply with the rules on general security policy as laid down and decided within the framework of the project.

IV. Not later than 15 May 2000, Switzerland will pay the costs of installing the CCN/CSI as justified by the European Commission on the basis of the specific Agreement which it has concluded for that purpose with the subcontractor.

V. Not later than 15 May 2000, Switzerland will pay the costs of operating the network as incurred by the European Commission from the date of installation of the hardware and software up to 31 December 1999.

VI. On 15 May each year, Switzerland will pay a flat-rate sum (EUR 90000 for the year 2000) for the annual cost of Switzerland's use of the network. Before 31 July each year, the European Commission will inform Switzerland of the flat-rate sum for the following year.

VII. Before 31 January each year, the European Commission will clear the accounts relating to the annual costs of operating the network on the basis of the sum already paid and the actual costs chargeable to Switzerland and will provide Switzerland with a statement of account. The European Commission will calculate the actual costs on the basis of its relationship with the subcontractor chosen in accordance with the current procedures for the award of contracts. The final payment (payment of the balance) will take place 30 days after the presentation of the statement of account. The total amount to be paid by Switzerland will not in any case exceed by more than 20 % the annual flat-rate sum already paid.

VIII. In the same way as the Member States of the European Union, Switzerland will be kept informed of the forecast trends in these costs as well as of the main aspects of the development of the CCN/CSI which are likely to have an impact on those costs.

IX. Not later than 15 May 2000, Switzerland will pay the sum of EUR 40000 by way of an annual deposit for future development and contingencies. The European Commission will provide Switzerland with a statement of account specifying the breakdown of costs chargeable to that deposit. Not later than 15 May each year, Switzerland will replenish the deposit by paying a sum corresponding to the amount actually used for future development and contingencies in the previous year.

X. All payments must be made to the European Commission. Unless specified otherwise, they will be based on a statement of account issued by the European Commission containing a breakdown of costs identifying the different services and the supply of hardware and software, payable within 60 days.

XI. This Agreement will remain in force as long as the two Parties are contracting Parties to the Convention of 20 May 1987 on a common transit procedure. However, both Parties shall reserve the right to amend the Agreement by mutual agreement.

XII. If Switzerland pays the amounts provided for in points IV, V, VI, VII and IX later than the dates specified in those points, the European Union may charge interest on the arrears (at the rate applied by the European Central Bank to its operations in euro, published in the 'C' series of the Official Journal, on the day on which the deadline for repayment expires, plus one and a half points). The same rate will apply to payments to be made by the European Community.

I would be grateful if you could confirm the agreement of Switzerland to the above."

I am pleased to confirm the agreement of Switzerland to the content of this letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of Switzerland

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(1) The two Parties agree that the extension of the use of the CCN/CSI to Switzerland shall also apply to the Principality of Liechtenstein for as long as that Principality remains bound to Switzerland by a Customs Union Treaty.

(2) The two Parties agree that the extension of the use of the CCN/CSI to Switzerland shall also apply to the Principality of Liechtenstein for as long as that Principality remains bound to Switzerland by a Customs Union Treaty.