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2004/635/EC: Council Decision of 21 April 2004 concerning… TITLE II — FREE MOVEMENT OF GOODS

Article 6–Article 28 · 23 articles

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗

Article 6

The Community and Egypt shall gradually establish a free trade area over a transitional period not exceeding 12 years from the entry into force of this Agreement, according to the modalities set out in this Title and in conformity with the provisions of the General Agreement on Tariffs and Trade of 1994 and of the other multilateral agreements on trade in goods annexed to the Agreement establishing the World Trade Organisation (WTO), hereinafter referred to as the GATT.

CHAPTER 1 — Industrial products

Article 7

The provisions of this Chapter shall apply to products originating in the Community and Egypt falling within Chapters 25 to 97 of the Combined Nomenclature and of the Egyptian Customs tariff with the exception of the products listed in Annex I.

Article 8

Imports into the Community of products originating in Egypt shall be allowed free of customs duties and of any other charge having equivalent effect and free of quantitative restrictions and of any other restriction having equivalent effect.

Article 9

1.   Customs duties and charges having equivalent effect applicable on import into Egypt of products originating in the Community listed in Annex II shall be gradually abolished in accordance with the following schedule: — on the date of entry into force of this Agreement each duty and charge shall be reduced to 75 % of the basic duty, — one year after the date of entry into force of this Agreement each duty and charge shall be reduced to 50 % of the basic duty, — two years after the date of entry into force of this Agreement each duty and charge shall be reduced to 25 % of the basic duty, — three years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished. 2.   Customs duties and charges having equivalent effect applicable on import into Egypt of the products originating in the Community listed in Annex III shall be gradually abolished in accordance with the following schedule: — three years after the date of entry into force of this Agreement each duty and charge shall be reduced to 90 % of the basic duty, — four years after the date of entry into force of this Agreement each duty and charge shall be reduced to 75 % of the basic duty, — five years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60 % of the basic duty, — six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 45 % of the basic duty, — seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 30 % of the basic duty, — eight years after the date of entry into force of this Agreement each duty and charge shall be reduced to 15 % of the basic duty, — nine years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished. 3.   Customs duties and charges having equivalent effect applicable on import into Egypt of the products originating in the Community listed in Annex IV shall be gradually abolished in accordance with the following schedule: — five years after the date of entry into force of this Agreement each duty and charge shall be reduced to 95 % of the basic duty, — six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 90 % of the basic duty, — seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 75 % of the basic duty, — eight years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60 % of the basic duty, — nine years after the date of entry into force of this Agreement each duty and charge shall be reduced to 45 % of the basic duty, — 10 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 30 % of the basic duty, — 11 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 15 % of the basic duty, — 12 years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished. 4.   Customs duties and charges having equivalent effect applicable on import into Egypt of the products originating in the Community listed in Annex V shall be gradually abolished in accordance with the following schedule: — six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 90 % of the basic duty, — seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 80 % of the basic duty, — eight years after the date of entry into force of this Agreement each duty and charge shall be reduced to 70 % of the basic duty, — nine years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60 % of the basic duty, — 10 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 50 % of the basic duty, — 11 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 40 % of the basic duty, — 12 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 30 % of the basic duty, — 13 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 20 % of the basic duty, — 14 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 10 % of the basic duty, — 15 years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished. 5.   Customs duties and charges having equivalent effect applicable to imports into Egypt of products originating in the Community, other than those in Annexes II, III, IV and V shall be abolished in accordance with the relevant schedule on the basis of a decision of the Association Committee. 6.   In the event of serious difficulties for a given product, the relevant timetables in accordance with paragraphs 1, 2, 3 and 4 may be reviewed by the Association Committee by common accord on the understanding that the schedule for which the review has been requested may not be extended in respect of the product concerned beyond the maximum transitional period. If the Association Committee has not taken a decision within 30 days of its application to review the timetable, Egypt may suspend the timetable provisionally for a period that may not exceed one year. 7.   For each product concerned, the basic duty to be gradually reduced as provided for in paragraphs 1, 2, 3 and 4 shall be the rates referred to in Article 18.

Article 10

The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature.

Article 11

1.   By way of derogation from the provisions of Article 9, Egypt may take exceptional measures of limited duration to increase or re-introduce customs duties. 2.   Such measures may only apply to new and infant industries or to sectors undergoing restructuring or experiencing serious difficulties, particularly where those difficulties entail severe social problems. 3.   Customs duties on import into Egypt of products originating in the Community that are introduced by such exceptional measures may not exceed 25 % ad valorem, and must retain a preferential margin for products originating in the Community. The total value of imports of the products subjected to such measures may not exceed 20 % of total imports of industrial products from the Community during the last year for which statistics are available. 4.   Such measures shall be applied for no longer than five years, except where a longer duration is authorised by the Association Committee. They shall cease to apply at the latest on expiry of the maximum transitional period. 5.   Such measures may not be introduced for a given product if more than three years have elapsed since the abolition of all duties, quantitative restrictions and charges and measures having equivalent effect on the product concerned. 6.   Egypt shall inform the Association Committee of any exceptional measures it intends to adopt and, at the Community's request, consultations shall be held on the measures and sectors concerned before they are implemented. When adopting such measures, Egypt shall provide the Committee with a schedule for the abolition of the customs duties introduced pursuant to this Article. Such schedule shall provide for the phasing out of the duties concerned by equal annual instalments, starting no later than the end of the second year following their introduction. The Association Committee may decide on a different schedule. 7.   By way of derogation from the provisions of paragraph 4, the Association Committee may exceptionally, in order to take into account the difficulties involved in setting up new industries, endorse the measures already taken by Egypt pursuant to paragraph 1 for a maximum period of four years beyond the 12 years transitional period.

CHAPTER 2 — Agricultural, fisheries and processed agricultural products

Article 12

The provisions of this Chapter shall apply to products originating in the Community and Egypt falling within Chapters 1 to 24 of the Combined Nomenclature and of the Egyptian Customs tariff and to the products listed in Annex I.

Article 13

The Community and Egypt shall progressively establish a greater liberalisation of their trade in agricultural, fisheries and processed agricultural products of interest to both parties.

Article 14

1.   Agricultural products originating in Egypt listed in Protocol 1 on importation into the Community shall be subject to the arrangements set out in that Protocol. 2.   Agricultural products originating in the Community listed in Protocol 2 on importation into Egypt shall be subject to the arrangements set out in that Protocol. 3.   Trade for processed agricultural products falling under this chapter shall be subject to the arrangements set out in Protocol 3.

Article 15

1.   During the third year of implementation of the Agreement, the Community and Egypt shall examine the situation in order to determine the measures to be applied by the Community and Egypt from the beginning of the fourth year after the entry into force of the Agreement, in accordance with the objective set out in Article 13. 2.   Without prejudice to the provisions of paragraph 1 and taking account of the volume of trade in agricultural, fisheries and processed agricultural products between them and of their particular sensitivity, the Community and Egypt shall examine in the Association Council, product by product and on an orderly and reciprocal basis, the possibility of granting each other further concessions.

Article 16

1.   In the event of specific rules being introduced as a result of the implementation of its agricultural policy or of any alteration of the current rules or in the event of any alteration or extension of the provisions relating to the implementation of its agricultural policy, the Party concerned may amend the arrangements resulting from the Agreement in respect of the products concerned. 2.   In such cases, the Party concerned shall inform the Association Committee. At the request of the other Party, the Association Committee shall meet to take due account of the interests of the other Party. 3.   If the Community or Egypt, in applying paragraph 1, modifies the arrangements made by this Agreement for agricultural products, they shall accord imports originating in the other Party an advantage comparable to that provided for in this Agreement. 4.   The application of this Article should be the subject of consultations in the Association Council.

CHAPTER 3 — Common provisions

Article 17

1.   No new quantitative restrictions on imports or any other restriction having equivalent effect shall be introduced in trade between the Community and Egypt. 2.   Quantitative restrictions on imports and any other restriction having equivalent effect in trade between the Community and Egypt shall be abolished from the entry into force of this Agreement. 3.   The Community and Egypt shall not apply to exports between themselves either customs duties or charges having equivalent effect, or quantitative restrictions or measures having equivalent effect.

Article 18

1.   The applicable rates for imports between the Parties shall be the WTO bound rate or lower applied rate enforced as of 1 January 1999. If, after 1 January 1999, a tariff reduction is applied on an erga omnes basis, the reduced rate shall apply. 2.   No new customs duties on imports or exports, or charges having equivalent effect, shall be introduced, nor shall those already applied be increased, in trade between the Community and Egypt, unless this Agreement provides otherwise. 3.   The Parties shall communicate to each other their respective applied rates on 1 January 1999.

Article 19

1.   Products originating in Egypt shall not, on importation into the Community, be accorded a treatment more favourable than that which the Member States apply among themselves. 2.   Application of the provisions of this Agreement shall be without prejudice to the special provisions for the application of the Community law to the Canary Islands.

Article 20

1.   The Parties shall refrain from any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products of one Party and like products originating in the territory of the other Party. 2.   Products exported to the territory of one of the Parties may not benefit from repayment of indirect internal taxation in excess of the amount of indirect taxation imposed on them either directly or indirectly.

Article 21

1.   This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade, except in so far as they alter the trade arrangements provided for in this Agreement. 2.   Consultation between the Parties shall take place within the Association Council concerning agreements establishing customs unions or free trade areas and, where requested, on other major issues related to their respective trade policy with third countries. In particular, in the event of a third country acceding to the Union, such consultation shall take place so as to ensure that account can be taken of the mutual interests of the Parties.

Article 22

If one of the Parties finds that dumping is taking place in trade with the other Party within the meaning of the provisions of Article VI of the GATT 1994, it may take appropriate measures against this practice in accordance with the WTO Agreement on the Implementation of Article VI of the GATT 1994 and related internal legislation.

Article 23

Without prejudice to Article 34, the WTO Agreement on Subsidies and Countervailing Measures shall apply between the Parties. Until the necessary rules referred to in Article 34(2) are adopted, if either Party finds that subsidy is taking place in trade with the other party within the meanings of Articles VI and XVI of the GATT 1994, it may invoke appropriate measures against this practice in accordance with the WTO Agreement on Subsidies and Countervailing Measures and related internal legislation.

Article 24

1.   The provisions of the Article XIX GATT 1994 and the WTO Agreement on Safeguards shall apply between the Parties. 2.   Before applying safeguard measures pursuant to the provisions of the Article XIX GATT 1994 and the WTO Agreement on Safeguards, the Party intending to apply such measures shall supply the Association Committee with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties. In order to find such a solution, the Parties shall immediately hold consultations within the Association Committee. If, as a result of the consultations, the Parties do not reach an agreement within 30 days of the initiation of the consultations on a solution to avoid the application of the safeguard measures, the Party intending to apply safeguard measures may apply the provisions of the Article XIX GATT 1994 and the WTO Agreement on Safeguards. 3.   In the selection of safeguard measures pursuant to this Article, the Parties shall give priority to those which cause least disturbance to the achievement of the objectives of this Agreement. 4.   Safeguard measures shall be notified immediately to the Association Committee and shall be the subject of periodic consultations within the Committee, particularly with a view to their abolition as soon as circumstances permit.

Article 25

1.   Where compliance with the provisions of Article 17(3) leads to: (i) re-export towards a third country against which the exporting Party maintains, for the product concerned, quantitative export restrictions, export duties, or measures having equivalent effect, or (ii) a serious shortage, or threat thereof, of a product essential to the exporting Party; and where the situations referred to above give rise, or are likely to give rise, to major difficulties for the exporting Party, that Party may take appropriate measures, according to the procedures laid down in paragraph 2. 2.   The difficulties arising from the situations referred to in paragraph 1 shall be submitted for examination to the Association Committee. The Committee may take any decision needed to put an end to the difficulties. If it has not taken such a decision within 30 days of the matter being referred to it, the exporting Party may apply appropriate measures on the exportation of the product concerned. The measures shall be non-discriminatory and be eliminated when conditions no longer justify their maintenance.

Article 26

Nothing in this Agreement shall preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security, of the protection of health and life of humans, animals or plants, of the protection of national treasures possessing artistic, historic or archaeological value, of the protection of intellectual property or of regulations concerning gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.

Article 27

The concept of ‘originating products’ for the application of the provisions of this Title and the methods of administrative cooperation relating to them are set out in Protocol 4.

Article 28

The Combined Nomenclature of goods shall be applied to the classification of goods for imports into the Community. The Egyptian customs tariff shall be applied to the classification of goods for imports into Egypt.

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