Council Decision of 29 April 2008 concerning the signing and conclusion of the Interim Agreement on trade and trade-related matters between the European Community, of the one part, and the Republic of Serbia, of the other part

• Articles: 82

Article 1

1.   The Interim Agreement on trade and trade-related matters between the European Community, of the one part, and the Republic of Serbia, of the other part, the Annexes and Protocols annexed thereto, as well as the joint declarations and the declaration by the Community attached to the Final Act are hereby approved on behalf of the Community.

2.   The texts referred to in paragraph 1 are attached to this Decision.

Article 1 (SAA Article 2)

Respect for democratic principles and human rights as proclaimed in the Universal Declaration of Human Rights and as defined in the Convention for the Protection of Human Rights and Fundamental Freedoms, in the Helsinki Final Act and the Charter of Paris for a New Europe, respect for principles of international law, including full cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY), and the rule of law as well as the principles of market economy as reflected in the Document of the CSCE Bonn Conference on Economic Cooperation, shall form the basis of the domestic and external policies of the Parties and constitute essential elements of this Agreement.

Article 1 Objectives

1.   The Parties shall, on the basis of non-discrimination and reciprocity, recognise, protect and control names of the products referred to in Article 2 of this Protocol in accordance with the conditions provided for in this Annex.

2.   The Parties shall take all general and specific measures necessary to ensure that the obligations laid down by this Annex are fulfilled and that the objectives set out in this Annex are attained.

Article 2

The President of the Council is hereby authorised to designate the person(s) empowered, on behalf of the Community, to sign the Agreement and deposit the instrument of approval provided for in Article 59 of the Agreement.

Article 2 (SAA Article 9)

This Agreement shall be fully compatible with and implemented in a manner consistent with the relevant WTO provisions, in particular Article XXIV of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and Article V of the General Agreement on Trade in Services (GATS).

Article 2 Definitions

For the purposes of the Agreement in this Annex and except where otherwise expressly provided herein:

(a)

‘originating’, when used in relation to the name of a Party, shall mean that:

—

a wine is produced entirely within the Party concerned solely from grapes which have been wholly harvested in that Party,

—

a spirit drink or aromatised wine is produced within that Party;

(b)

‘geographical indication’ as listed in Appendix 1 means an indication as defined in Article 22(1) of the Agreement on Trade Related Aspects of Intellectual Property Rights (hereinafter referred to as ‘the TRIPS Agreement’);

(c)

‘traditional expression’ means a traditionally used name, as specified in Appendix 2, referring in particular to the method of production or to the quality, colour, type or place, or a particular event linked to the history of the wine concerned and recognised by the laws and regulations of a Party for the purpose of describing and presenting of such a wine originating in the territory of that Party;

(d)

‘homonymous’ means the same geographical indication or same traditional expression, or such a term so similar as to be likely to cause confusion, to denote different places, procedures or things;

(e)

‘description’ means the words used to describe a wine, spirit drink or aromatised wine on a label or documents accompanying the transport of wine, spirit drink or aromatised wine, on commercial documents particularly invoices and delivery notes, and advertising material;

(f)

‘labelling’ means all descriptions and other references, signs, designs, geographical indications or trademarks which distinguish wines, spirit drinks or aromatised wines and which appear on the same container, including its sealing device or the tag attached to the container and the sheathing covering the neck of bottles;

(g)

‘presentation’ means the entirety of terms, allusions and the like referring to a wine, spirit drink or aromatised wine used on the labelling, on the packaging; on the containers, the closure, in advertising and/or sales promotion of any kind;

(h)

‘packaging’ means the protective wrappings, such as papers, straw envelopes of any kind, cartons and cases, used in transport of one or more containers or for sale to the ultimate consumer;

(i)

‘produced’ means the entire process of wine-making, spirit drink-making and aromatised wine-making;

(j)

‘wine’ means solely the beverage resulting from full or partial alcoholic fermentation of fresh grapes of the vine varieties, referred to in the Agreement in this Annex whether or not pressed, or of its must;

(k)

‘vine varieties’ means varieties of plants of Vitis Vinifera without prejudice to any legislation which a Party may have in respect of the use of different vine varieties in wine produced in that Party;

(l)

‘WTO Agreement’ means the Marrakesh Agreement establishing the World Trade Organisation done on 15 April 1994.

Article 3 (SAA Article 18)

The Community and Serbia shall gradually establish a bilateral free trade area over a period lasting a maximum of six years starting from the entry into force of this Agreement in accordance with the provisions of this Agreement and in conformity with those of the GATT 1994 and the WTO. In so doing they shall take into account the specific requirements laid down hereinafter.

The Combined Nomenclature shall be applied to the classification of goods in trade between the Parties.

For the purpose of this Agreement customs duties and charges having equivalent effect to customs duties include any duty or charge of any kind imposed in connection with the importation or exportation of a good, including any form of surtax or surcharge in connection with such importation or exportation, but do not include any:

(a)

charges equivalent to an internal tax imposed consistently with the provisions of paragraph 2 of Article III of the GATT 1994;

(b)

antidumping or countervailing measures;

(c)

fees or charges commensurate with the costs of services rendered.

For each product, the basic duty to which the successive tariff reductions set out in this Agreement are to be applied shall be:

(a)

the Community Common Customs Tariff, established pursuant to Council Regulation (EEC) No 2658/87  ( 1 ) actually applied erga omnes on the day of the signature of this Agreement;

(b)

the Serbian applied tariff  ( 2 ) ;

If, after the signature of this Agreement, any tariff reduction is applied on an erga omnes basis, in particular reductions resulting:

(a)

from the tariff negotiations in the WTO or,

(b)

in the event of the accession of Serbia to the WTO or,

(c)

from subsequent reductions after the accession of Serbia to the WTO.

Such reduced duties shall replace the basic duty referred to in paragraph 4 as from the date when such reductions are applied.

The Community and Serbia shall communicate to each other their respective basic duties and any changes thereof.

Article 3 General importation and marketing rules

Unless otherwise provided for in the Agreement in this Annex, importation and marketing of the products referred to in Article 2 of this Protocol shall be conducted in compliance with the laws and regulations applying in the territory of the Party.

Article 4 (SAA Article 19)

The provisions of this Chapter shall apply to products originating in the Community or in Serbia listed in Chapters 25 to 97 of the Combined Nomenclature, with the exception of the products listed in Annex I, paragraph I, (ii) of the WTO Agreement on Agriculture.

Trade between the Parties in products covered by the Treaty establishing the European Atomic Energy Community shall be conducted in accordance with the provisions of that Treaty.

The provisions of this Agreement shall apply to textile products subject to the Agreement of 31 March 2005 between the European Community and the Republic of Serbia on trade in textile products.

Article 4 Protected names

Without prejudice to Articles 5, 6 and 7 of thisAnnex, the following shall be protected:

(a)

as regards the products referred to in Article 2 of this Protocol:

—

references to the name of the Member State in which the wine, spirit drink and aromatised wine originates or other names to indicate the Member State,

—

the geographical indications, listed in Appendix 1, Part A, points (a) for wines (b) for spirit drinks and (c) for aromatised wines,

—

the traditional expressions listed in Appendix 2, Part A;

(b)

as regards wines, spirit drinks or aromatised wines originating in Serbia:

—

references to the name ‘Serbia’ or any other name designating that country,

—

the geographical indications, listed in Appendix 1, Part B, points (a) for wines (b) for spirit drinks and (c) for aromatised wines,

—

the traditional expressions listed in Appendix 2, Part B.

Article 5 (SAA Article 20)

1.   Customs duties on imports into the Community and charges having equivalent effect shall be abolished upon the entry into force of this Agreement on industrial products originating in Serbia.

2.   Quantitative restrictions on imports into the Community and measures having equivalent effect shall be abolished upon the entry into force of this Agreement on industrial products originating in Serbia.

Article 5 Protection of names referring to Member States of the Community and of Serbia

1.   In Serbia, references to the Member States of the Community, and other names used to indicate a Member State, for the purpose of identifying origin of the wine, spirit drink and aromatised wine:

(a)

shall be reserved for wines, spirit drinks and aromatised wines originating in the Member State concerned, and

(b)

shall not be used by the Community otherwise than under the conditions provided for by the laws and regulations of the Community.

2.   In the Community, references to Serbia, and other names used to indicate Serbia (whether or not followed by the name of a vine variety), for the purpose of identifying origin of the wine, spirit drink and aromatised wine:

(a)

shall be reserved for wines, spirit drinks and aromatised wines originating in Serbia, and

(b)

shall not be used by Serbia otherwise than under the conditions provided for by the laws and regulations of Serbia.

Article 6 (SAA Article 21)

1.   Customs duties on imports into Serbia of industrial products originating in the Community other than those listed in Annex I shall be abolished upon the entry into force of this Agreement.

2.   Charges having equivalent effect to customs duties on imports into Serbia shall be abolished upon the entry into force of this Agreement on industrial products originating in the Community.

3.   Customs duties on imports into Serbia of industrial products originating in the Community which are listed in Annex I shall be progressively reduced and abolished in accordance with the timetable indicated in that Annex.

4.   Quantitative restrictions on imports into Serbia of industrial products originating in the Community and measures having equivalent effect shall be abolished upon the date of entry into force of this Agreement.

Article 6 Protection of geographical indications

1.   In Serbia, the geographical indications for the Community which are listed in Appendix 1, Part A:

(a)

shall be protected for wines, spirit drinks and aromatised wines originating in the Community, and

(b)

shall not be used otherwise than under the conditions provided for by the laws and regulations of the Community.

2.   In the Community, the geographical indications for Serbia which are listed in Appendix 1, Part B:

(a)

shall be protected for wines, spirit drinks and aromatised wines originating in Serbia, and

(b)

shall not be used otherwise than under the conditions provided for by the laws and regulations of Serbia.

Notwithstanding Article 2(2)(b) of Protocol 2 inasmuch as it refers to EU legislation on spirit drinks, sales denominations for spirit drinks originating in Serbia and marketed in the EU shall not be supplemented or replaced by a geographical indication.

3.   The Parties shall take all measures necessary, in accordance with the Agreement in this Annex, for the reciprocal protection of the names referred to in Article 4(a) and (b), second indents which are used for the description and presentation of wines, spirit drinks and aromatised wines originating in the territory of the Parties. To that end, each Party shall make use of the appropriate legal means referred to in Article 23 of the TRIPS Agreement to ensure an effective protection and prevent geographical indications from being used to identify wines, spirit drinks and aromatised wines not covered by the indications or the descriptions concerned.

4.   The geographical indications referred to in Article 4 shall be reserved exclusively for the products originating in the territory of the Party to which they apply and may be used only under the conditions laid down in the laws and regulations of that Party.

5.   The protection provided for in the Agreement in this Annex shall prohibit in particular any use of protected names for wines, spirit drinks and aromatised wines which do not originate in the geographical area indicated, and shall apply even when:

—

the true origin of the wine, spirit drink or aromatised wine is indicated,

—

the geographical indication in question is used in translation,

—

the name is accompanied by terms such as ‘kind’, ‘type’, ‘style’, ‘imitation’, ‘method’ or other expressions of the sort,

—

the protected name is used in any way for products falling under heading 20.09 of the Harmonised System of the International Convention on the Harmonised Commodity Description and Coding System, done at Brussels on 14 June 1983.

6.   If geographical indications listed in Appendix 1 are homonymous, protection shall be granted to each indication provided that it has been used in good faith. The Parties shall mutually decide the practical conditions of use under which the homonymous geographical indications will be differentiated from each other, taking into account the need to ensure equitable treatment of the producers concerned and that consumers are not misled.

7.   If a geographical indication listed in Appendix 1 is homonymous with a geographical indication for a third country, Article 23(3) of the TRIPS Agreement applies.

8.   The provisions of the Agreement in this Annex shall in no way prejudice the right of any person to use, in the course of trade, that person's name or the name of that person's predecessor in business, except where such name is used in such a manner as to mislead consumers.

9.   Nothing in the Agreement in this Annex shall oblige a Party to protect a geographical indication of the other Party listed in Appendix 1 which is not or ceases to be protected in its country of origin or which has fallen into disuse in that country.

10.   On the entry into force of this Agreement, the Parties shall no longer deem that the protected geographical names listed in Appendix 1 are customary in the common language of the Parties as a common name for wines, spirit drinks and aromatised wines as foreseen in Article 24(6) of the TRIPS Agreement.

Article 7 (SAA Article 22)

1.   The Community and Serbia shall abolish any customs duties on exports and charges having equivalent effect in trade between them upon the entry into force of this Agreement.

2.   The Community and Serbia shall abolish between themselves any quantitative restrictions on exports and measures having equivalent effect upon the entry into force of this Agreement.

Article 7 Protection of traditional expressions

1.   In Serbia, the traditional expressions for the Community listed in Appendix 2:

(a)

shall not be used for the description or presentation of wine originating in Serbia; and

(b)

may not be used for the description or presentation of wine originating in the Community otherwise than in relation to the wines of the origin and the category and in the language as listed in Appendix 2 and under the conditions provided for by the laws and regulations of the Community.

2.   In the Community, the traditional expressions for Serbia listed in Appendix 2:

—

shall not be used for the description or presentation of wine originating in the Community; and may not be used for the description or presentation of wine originating in Serbia otherwise than in relation to the wines of the origin and the category and in Serbian language, as listed in Appendix 2 and under the conditions provided for by the laws and regulations of Serbia.

3.   The Parties shall take the measures necessary, in accordance with this Title, for the reciprocal protection of the traditional expressions referred to in Article 4 and used for the description and presentation of wines originating in the territory of the Parties. To that end, the Parties shall provide appropriate legal means to ensure an effective protection and prevent traditional expressions from being used to describe wine not entitled to use those traditional expressions, even where the traditional expressions used are accompanied by expressions such as ‘kind’, ‘type’, ‘style’, ‘imitation’, ‘method’ or the like.

4.   If traditional expressions listed in Appendix 2 are homonymous, protection shall be granted to each expression provided it has been used in good faith and does not mislead consumers as to the actual origin of the wine. The Parties shall mutually decide the practical conditions of use under which the homonymous traditional expressions will be differentiated from each other, taking into account the need to ensure equitable treatment of the producers concerned and that consumers are not mislead.

5.   The protection of a traditional expression shall apply only: to the language or languages and alphabets in which it appears in Appendix 2 and not in translation; and for a category of product in relation to which it is protected for the Parties as set out in Appendix 2.

Article 8 (SAA Article 23)

Serbia declares its readiness to reduce its customs duties in trade with the Community more rapidly than is provided for in Article 6 if its general economic situation and the situation of the economic sector concerned so permit.

The Interim Committee shall analyse the situation in this respect and make the relevant recommendations.

Article 8 Trademarks

1.   The responsible offices of the Parties shall refuse the registration of a trademark for a wine, spirit drink or aromatised wine which is identical with, or similar to, or contains or consists of a reference to a geographical indication protected under Article 4 with respect to such wine, spirit drink or aromatised wine not having this origin and not complying with the relevant rules governing its use.

2.   The responsible offices of the Parties shall refuse the registration of a trademark for a wine which contains or consists of a traditional expression protected under the Agreement in this Annex if the wine in question is not one to which the traditional expression is reserved as indicated in Appendix 2.

Article 9 (SAA Article 24)

1.   The provisions of this Chapter shall apply to trade in agricultural and fishery products originating in the Community or in Serbia.

2.   The term ‘agricultural and fishery product’ refers to the products listed in Chapters 1 to 24 of the Combined Nomenclature and the products listed in Annex I, paragraph I, (ii) of the WTO Agreement on Agriculture.

3.   This definition includes fish and fishery products covered by chapter 3, headings 1604 and 1605, and sub-headings 0511 91, 2301 20 and ex 1902 20 (‘stuffed pasta containing more than 20 % by weight of fish, crustaceans, molluscs or other aquatic invertebrates’).

Article 9 Exports

The Parties shall take all steps necessary to ensure that, where wines, spirit drinks and aromatised wines originating in a Party are exported to a third country, the protected geographical indications referred to in Article 4(a) and 4(b) second indents and in the case of wines, the traditional expressions of that Party referred to in Article 4(a) and 4(b) third indent are not used to describe and present products originating in the respectively other Party.

Article 10 (SAA Article 25)

Protocol 1 lays down the trade arrangements for processed agricultural products which are listed therein.

Article 10 Working Group

1.   A Working Group functioning under the auspices of the Sub-Committee on Agriculture to be created in accordance with Article 45 of the Interim Agreement (SAA Article 123) shall be established.

2.   The Working Group shall see to the proper functioning of the Agreement in this Annex and shall examine all questions which may arise in implementing it.

3.   The Working Group may make recommendations, discuss and put forward suggestions on any matter of mutual interest in the wine, spirit drink and aromatised wine sector which would contribute to the attainment of the objectives of the Agreement in this Annex. It shall meet at the request of either of the Parties, alternatively in the Community and in Serbia, at time and a place and in a manner mutually determined by the Parties.

Article 11 (SAA Article 26)

1.   From the date of entry into force of this Agreement, the Community shall abolish all quantitative restrictions and measures having equivalent effect, on imports of agricultural products originating in Serbia.

2.   From the date of entry into force of this Agreement, the Community shall abolish the customs duties and charges having equivalent effect, on imports of agricultural products originating in Serbia other than those of headings 0102, 0201, 0202, 1701, 1702 and 2204 of the Combined Nomenclature.

For the products covered by Chapters 7 and 8 of the Combined Nomenclature, for which the Common Customs Tariff provides for the application of ad valorem customs duties and a specific customs duty, the elimination applies only to the ad valorem part of the duty.

3.   From the date of entry into force of this Agreement, the Community shall fix the customs duties applicable to imports into the Community of ‘baby beef’ products defined in Annex II and originating in Serbia at 20 % of the ad valorem duty and 20 % of the specific duty as laid down in the Common Customs Tariff, within the limit of an annual tariff quota of 8 700 tonnes expressed in carcass weight.

4.   From the date of entry into force of this Agreement, the Community shall apply duty-free access on imports into the Community for products originating in Serbia of headings 1701 and 1702 of the Combined Nomenclature, within the limit of an annual tariff quota of 180 000 tonnes (net weight).

Article 11 Tasks of the parties

1.   The Parties shall either directly or through the Working Group referred to in Article 10 maintain contact on all matters relating to the implementation and functioning of this Agreement.

2.   Serbia designates the Ministry of Agriculture, Forestry and Water Management as its representative body. The Community designates the Directorate-General Agriculture and Rural Development of the European Commission, as its representative body. A Party shall notify the other Party if it changes its representative body.

3.   The representative body shall ensure the coordination of the activities of all the bodies responsible for ensuring the enforcement of the Agreement in this Annex.

4.   The Parties shall:

(a)

mutually amend the lists referred to in Article 4 by decision of the Interim Committee to take account of any amendments to the laws and regulations of the Parties;

(b)

mutually decide, by decision of the Interim Committee, that the Appendices to the Agreement in this Annex should be modified. The Appendices shall be deemed to be modified from the date recorded in an exchange of letters between the Parties, or the date of the Working Group decision, as the case requires;

(c)

mutually decide the practical conditions referred to in Article 6(6);

(d)

inform each other of the intention to decide new regulations or amendments of existing regulations of public policy concern, such as health or consumer protection, with implications for the wine, spirit and aromatised wine sector;

(e)

notify each other of any legislative, administrative and judicial decisions concerning the implementation of the Agreement in this Annex and inform each other of measures adopted on the basis of such decisions.

Article 12 (SAA Article 27)

1.   From the date of entry into force of this Agreement, Serbia shall abolish all quantitative restrictions and measures having equivalent effect, on imports of agricultural products originating in the Community.

2.   From the date of entry into force of this Agreement, Serbia shall:

(a)

abolish the customs duties applicable on imports of certain agricultural products originating in the Community, listed in Annex IIIa;

(b)

abolish progressively the customs duties applicable on imports of certain agricultural products originating in the Community, listed in Annex IIIb in accordance with the timetable indicated for each product in that Annex;

(c)

reduce progressively the customs duties applicable on imports of certain agricultural products originating in the Community, listed in Annex IIIc and d in accordance with the timetable indicated for each product in those Annexes.

Article 12 Application and operation of the Agreement in this Annex

The Parties designate the contact points set out in Appendix 3 to be responsible for the application and operation of the Agreement in this Annex.

Article 13 (SAA Article 28)

The arrangements applicable to the wine and spirit drinks products referred to in Protocol 2 are laid down in that Protocol.

Article 13 Enforcement and mutual assistance between the parties

1.   If the description or presentation of a wine, spirit drink or aromatised wine in particular on the labelling, in official or commercial documents or in advertising, is in breach of the Agreement in this Annex, the Parties shall apply the necessary administrative measures and/or shall initiate legal proceedings with a view to combating unfair competition or preventing the wrongful use of the protected name in any other way.

2.   The measures and proceedings referred to in paragraph 1 shall be taken in particular:

(a)

where descriptions or translation of description, names, inscriptions or illustrations relating to wine, spirit or aromatised wine drinks whose names are protected under the Agreement in this Annex are used, directly or indirectly, which give false or misleading information as to the origin, nature or quality of the wine, spirit drink or aromatised wine;

(b)

where, for packaging, containers are used which are misleading as to the origin of the wine.

3.   If one of the Parties has reason to suspect that:

(a)

a wine, spirit drink or aromatised wine as defined in Article 2, being or having been traded in Serbia and the Community, does not comply with rules governing the wine, spirit drink or aromatised wine sector in the Community or in Serbia or with this Agreement; and

(b)

this non-compliance is of particular interest to the other Party and could result in administrative measures and/or legal proceedings being taken,

it shall immediately inform the representative body of the other Party.

4.   The information to be provided in accordance with paragraph 3 shall include details of the non-compliance with the rules governing the wine, spirit drink and aromatised wine sector of the Party and/or the Agreement in this Annex and shall be accompanied by official, commercial or other appropriate documents, with details of any administrative measures or legal proceedings that may, if necessary, be taken.

Article 14 (SAA Article 29)

1.   From the date of entry into force of this Agreement, the Community shall abolish all quantitative restrictions and measures having equivalent effect on imports of fish and fishery products originating in Serbia.

2.   From the entry into force of this Agreement the Community shall eliminate all customs duties on fish and fishery products originating in Serbia other than those listed in Annex IV. Products listed in Annex IV shall be subject to the provisions laid down therein.

Article 14 Consultations

1.   The Parties shall enter into consultations if one of them considers that the other has failed to fulfil an obligation under the Agreement in this Annex.

2.   The Party which requests the consultations shall provide the other Party with all the information necessary for a detailed examination of the case in question.

3.   In cases where any delay could endanger human health or impair the effectiveness of measures to control fraud, appropriate interim protective measures may be taken, without prior consultation, provided that consultations are held immediately after the taking of these measures.

4.   If, following the consultations provided for in paragraphs 1 and 3, the Parties have not reached agreement, the Party which requested the consultations or which took the measures referred to in paragraph 3 may take appropriate measures in accordance with Article 49 of the Interim Agreement (SAA Article 129) so as to permit the proper application of the Agreement in this Annex.

Article 15 (SAA Article 30)

1.   From the date of entry into force of this Agreement, Serbia shall abolish all quantitative restrictions and measures having equivalent effect on imports of fish and fishery products originating in the Community.

2.   From the entry into force of this Agreement, Serbia shall eliminate customs duties on fish and fishery products originating in the Community other than those listed in Annex V. Products listed in Annex V shall be subject to the provisions laid down therein.

Article 15 Transit of small quantities

1.   The Agreement in this Annex shall not apply to wines, spirit drinks and aromatised wines, which:

(a)

pass in transit through the territory of one of the Parties, or

(b)

originate in the territory of one of the Parties and which are consigned in small quantities between those Parties under the conditions and according to the procedures provided for in paragraph II.

2.   The following products referred to wines, spirit drinks and aromatised wines shall be considered to be small quantities:

I.

quantities in labelled containers of not more than 5 litres fitted with a non-reusable closing device where the total quantity transported, whether or not made up of separate consignments, does not exceed 50 litres;

II.

(a)

quantities which are contained in the personal luggage of travellers in quantities not exceeding 30 litres;

(b)

quantities which are sent in consignments from one private individual to another in quantities not exceeding 30 litres;

(c)

quantities which are part of the belongings of private individuals who are moving house;

(d)

quantities which are imported for the purpose of scientific or technical experiments, subject to a maximum of 1 hectolitre;

(e)

quantities which are imported for diplomatic, consular or similar establishments as part of their duty-free allowance;

(f)

quantities which are held on board international means of transport as victualling supplies.

The case of exemption referred to in point 1 may not be combined with one or more of the cases of exemption referred to in point 2.

Article 16 (SAA Article 31)

Taking account of the volume of trade in agricultural and fishery products between the Parties, of their particular sensitivities, of the rules of the Community common policies and of the policies for agriculture and fisheries in Serbia of the role of agriculture and fisheries in the economy of Serbia, of the consequences of the multilateral trade negotiations in the framework of the WTO as well as of the eventual accession of Serbia to the WTO, the Community and Serbia shall examine in the Interim Committee, no later than three years after the entry into force of this Agreement, product by product and on an orderly and appropriate reciprocal basis, the opportunities for granting each other further concessions with a view to implementing greater liberalisation of the trade in agricultural and fishery products.

Article 16 Marketing of pre-existing stocks

1.   Wines, spirit drinks or aromatised wines which, at the time of the entry into force of this Agreement, have been produced, prepared, described and presented in compliance with the internal laws and regulations of the Parties but are prohibited by the Agreement in this Annex may be sold until stocks run out.

2.   Except where provisions to the contrary are adopted by the Parties, wines, spirit drinks or aromatised wines which have been produced, prepared, described and presented in compliance with the Agreement in this Annex but whose production, preparation, description and presentation cease to comply therewith as a result of an amendment thereto may continue to be marketed until stocks run out.

Article 17 (SAA Article 32)

1.   Notwithstanding other provisions of this Agreement, and in particular Article 26, given the particular sensitivity of the agricultural and fisheries markets, if imports of products originating in one Party, which are the subject of concessions granted pursuant to Articles 10, 11, 12, 13, 14 and 15, cause serious disturbance to the markets or to their domestic regulatory mechanisms, in the other Party, both Parties shall enter into consultations immediately to find an appropriate solution. Pending such solution, the Party concerned may take the appropriate measures it deems necessary.

2.   In the event that imports originating in Serbia of products listed in Annex V of Protocol 3 cumulatively reach in volume 115 % of the average of the three previous calendar years, Serbia and the Community shall within five working days enter into consultations to analyse and evaluate the trade pattern of these products into the Community, and when necessary, find appropriate solutions to avoid trade distortion of the imports of these products into the Community.

Without prejudice to paragraph 1, in the event that imports originating in Serbia of products listed in Annex V of Protocol 3 cumulatively increase by more than 30 percent in volume during a calendar year, compared to the average of the three previous calendar years, the Community may suspend the preferential treatment applicable to the products causing the increase.

If a suspension of the preferential treatment is decided, the Community shall notify within five working days the measure to the Interim Committee and shall enter in consultations with Serbia to agree on measures designed to avoid trade distortion in trade of products listed in Annex V of Protocol 3.

The Community shall restore the preferential treatment as soon as the trade distortion has been resolved by the effective implementation of the agreed measures or by the effect of any other appropriate measures adopted by the Parties

The provisions of Article 26, paragraphs 3 to 6 shall apply mutatis mutandis to action under this paragraph.

3.   The Parties shall review the functioning of the mechanism provided for in paragraph 2 no later than three years after the entry into force of this Agreement. The Interim Committee may decide on appropriate adaptations to the mechanism provided for in paragraph 2.

Article 18 (SAA Article 33)

1.   Serbia shall provide protection for the geographical indications of the Community registered in the Community under Council Regulation (EC) No 510/2006 of 20 March 2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs  ( 3 ) , in accordance with the terms of this Article. Geographical indications of Serbia shall be eligible for registration in the Community under the conditions set out in that Regulation.

2.   Serbia shall prohibit any use in its territory of the names protected in the Community for comparable products not complying with the geographical indication’s specification. This shall apply even where the true geographical origin of the good is indicated, the geographical indication in question is used in translation, the name is accompanied by terms such as ‘kind’, ‘type’, ‘style’, ‘imitation’, ‘method’ or other expressions of the sort.

3.   Serbia shall refuse the registration of a trademark the use of which corresponds to the situations referred to in paragraph 2.

4.   Trademarks the use of which corresponds to the situations referred to in paragraph 2, which have been registered in Serbia or established by use, shall no longer be used five years after the entry into force of this Agreement. However, this shall not apply to trademarks registered in Serbia and trademarks established by use which are owned by nationals of third countries, provided they are not of such a nature as to deceive in any way the public as to the quality, the specification and the geographical origin of the goods.

5.   Any use of the geographical indications protected in accordance with paragraph 1 as terms customary in common language as the common name for such goods in Serbia shall cease at the latest five years after the entry into force of this Agreement.

6.   Serbia shall ensure that goods exported from its territory five years after the entry into force of this Agreement do not infringe the provisions of this Article.

7.   Serbia shall ensure the protection referred to in paragraphs 1 to 6 on its own initiative as well as at the request of an interested party.

Article 19 (SAA Article 34)

The provisions of this Chapter shall apply to trade in all products between the Parties except where otherwise provided herein or in Protocol 1.

Article 20 (SAA Article 35)

The provisions of this Title shall in no way affect the application, on a unilateral basis, of more favourable measures by any of the Parties.

Article 21 (SAA Article 36)

1.   From the date of entry into force of this Agreement, 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 Serbia.

2.   From the date of entry into force of this Agreement, no new quantitative restriction on imports or exports or measure having equivalent effect shall be introduced, nor shall those existing be made more restrictive, in trade between the Community and Serbia.

3.   Without prejudice to the concessions granted under Articles 11, 12, 13, 14 and 15, the provisions of paragraphs 1 and 2 of this Article shall not restrict in any way the pursuit of the respective agricultural and fishery policies of Serbia and of the Community and the taking of any measures under those policies insofar as the import regime in Annexes II-V and Protocol 1 is not affected.

Article 22 (SAA Article 37)

1.   The Community and Serbia shall refrain from, and abolish where existing, 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 internal indirect taxation in excess of the amount of indirect taxation imposed on them.

Article 23 (SAA Article 38)

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

Article 24 (SAA Article 39)

1.   This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade except insofar as they alter the trade arrangements provided for in this Agreement.

2.   During the transitional periods specified in Article 3, this Agreement shall not affect the implementation of the specific preferential arrangements governing the movement of goods either laid down in frontier Agreements previously concluded between one or more Member States and Serbia or resulting from the bilateral Agreements specified in Title III concluded by Serbia in order to promote regional trade.

3.   Consultations between the Parties shall take place within the Interim Committee concerning the Agreements described in paragraphs 1 and 2 of this Article and, where requested, on other major issues related to their respective trade policies towards third countries. In particular in the event of a third country acceding to the Union, such consultations shall take place so as to ensure that account is taken of the mutual interests of the Community and Serbia stated in this Agreement.

Article 25 (SAA Article 40)

1.   None of the provisions in this Agreement shall prevent any of the Parties from taking trade defence action in accordance with paragraph 2 of this Article and Article 26.

2.   If one of the Parties finds that dumping and/or countervailable subsidiation is taking place in trade with the other Party, that Party may take appropriate measures against this practice in accordance with the WTO Agreement on Implementation of Article VI of the GATT 1994 or the WTO Agreement on Subsidies and Countervailing Measures and the respective related internal legislation.

Article 26 (SAA Article 41)

1.   The provisions of Article XIX GATT 1994 and the WTO Agreement on Safeguards are applicable between the parties.

2.   Notwithstanding paragraph 1 of this Article, where any product of one Party is being imported into the territory of the other Party in such increased quantities and under such conditions as to cause or threaten to cause:

(a)

serious injury to the domestic industry of like or directly competitive products in the territory of the importing Party or

(b)

serious disturbances in any sector of the economy or difficulties which could bring about serious deterioration in the economic situation of a region of the importing Party,

the importing Party may take appropriate bilateral safeguard measures under the conditions and in accordance with the procedures laid down in this Article.

3.   Bilateral safeguard measures directed at imports from the other Party shall not exceed what is strictly necessary to remedy the problems, as defined in paragraph 2, which have arisen as a result of application of this Agreement. The safeguard measure adopted should consist of a suspension in the increase or in the reduction of the margins of preferences provided for under this Agreement for the product concerned up to a maximum limit corresponding to the basic duty referred to in Article 3 paragraph 4(a) and (b) and paragraph 5 for the same product. Such measures shall contain clear elements progressively leading to their elimination at the end of the set period, at the latest, and shall not be taken for a period exceeding two years.

In very exceptional circumstances, measures may be extended for a further period of maximum two years. No bilateral safeguard measure shall be applied to the import of a product that has previously been subject to such a measure for a period of time equal to that during which such measure had been previously applied, provided that the period of non-application is at least, two years since the expiry of the measure.

4.   In the cases specified in this Article, before taking the measures provided for therein or, in the cases to which paragraph 5(b) of this Article applies, as soon as possible, the Community on the one part or Serbia on the other part, shall supply the Interim Committee with all relevant information required for a thorough examination of the situation, with a view to seeking a solution acceptable to the Parties concerned.

5.   For the implementation of the paragraphs 1, 2, 3, and 4 the following provisions shall apply:

(a)

The problems arising from the situation referred to in this Article shall be immediately referred for examination to the Interim Committee, which may take any decisions needed to put an end to such problems.

If the Interim Committee or the exporting Party has not taken a decision putting an end to the problems, or no other satisfactory solution has been reached within 30 days of the matter being referred to the Interim Committee, the importing Party may adopt the appropriate measures to remedy the problem in accordance with this Article. In the selection of safeguard measures, priority must be given to those which least disturb the functioning of the arrangements established in this Agreement. Safeguard measures applied in accordance with Article XIX GATT 1994 and the WTO Agreement on Safeguards shall preserve the level/margin of preference granted under this Agreement.

(b)

Where exceptional and critical circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Party concerned may, in the situations specified in this Article, apply forthwith provisional measures necessary to deal with the situation and shall inform the other Party immediately thereof.

The safeguard measures shall be notified immediately to the Interim Committee and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their abolition as soon as circumstances permit.

6.   In the event of the Community of the one part or Serbia of the other part subjecting imports of products liable to give rise to the problems referred to in this Article to an administrative procedure having as its purpose the rapid provision of information on the trend of trade flows, it shall inform the other Party.

Article 27 (SAA Article 42)

1.   Where compliance with the provisions of this Title leads to:

(a)

a critical shortage, or threat thereof, of foodstuffs or other products essential to the exporting Party; or

(b)

re-export to a third country of a product against which the exporting Party maintains quantitative export restrictions, export duties or measures or charges having equivalent effect, 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 under the conditions and in accordance with the procedures laid down in this Article.

2.   In the selection of measures, priority must be given to those which least disturb the functioning of the arrangements in this Agreement. Such measures shall not be applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination where the same conditions prevail, or a disguised restriction on trade and shall be eliminated when the conditions no longer justify their maintenance.

3.   Before taking the measures provided for in paragraph 1 or, as soon as possible in cases to which paragraph 4 applies, the Community or Serbia, shall supply the Interim Committee with all relevant information, with a view to seeking a solution acceptable to the Parties. The Parties within the Interim Committee may agree on any means needed to put an end to the difficulties. If no agreement is reached within 30 days of the matter being referred to the Interim Committee, the exporting Party may apply measures under this Article on the exportation of the product concerned.

4.   Where exceptional and critical circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Community or Serbia may apply forthwith the precautionary measures necessary to deal with the situation and shall inform the other Party immediately thereof.

5.   Any measures applied pursuant to this Article shall be immediately notified to the Interim Committee and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their elimination as soon as circumstances permit.

Article 28 (SAA Article 43)

Serbia shall progressively adjust any state monopolies of a commercial character so as to ensure that, three years after the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States of the European Union and Serbia.

Article 29 (SAA Article 44)

Except if otherwise stipulated in this Agreement, Protocol 3 lays down the rules of origin for the application of the provisions of this Agreement.

Article 30 (SAA Article 45)

This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures of artistic, historic or archaeological value or the protection of intellectual, industrial and commercial property, or rules relating to 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 31 (SAA Article 46)

1.   The Parties agree that administrative cooperation is essential for the implementation and the control of the preferential treatment granted under this Title and underline their commitment to combat irregularities and fraud in customs and related matters.

2.   Where a Party has made a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud under this Title, the Party concerned may temporarily suspend the relevant preferential treatment of the product(s) concerned in accordance with this Article.

3   For the purpose of this Article a failure to provide administrative cooperation shall mean, inter alia:

(a)

a repeated failure to respect the obligations to verify the originating status of the product(s) concerned;

(b)

a repeated refusal or undue delay in carrying out and/or communicating the results of subsequent verification of the proof of origin;

(c)

a repeated refusal or undue delay in obtaining authorisation to conduct administrative cooperation missions to verify the authenticity of documents or accuracy of information relevant to the granting of the preferential treatment in question.

For the purpose of this Article a finding of irregularities or fraud may be made, inter alia , where there is a rapid increase, without satisfactory explanation, in imports of goods exceeding the usual level of production and export capacity of the other Party, that is linked to objective information concerning irregularities or fraud.

4.   The application of a temporary suspension shall be subject to the following conditions:

(a)

The Party which has made a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud shall without undue delay notify the Interim Committee of its finding together with the objective information and enter into consultations within the Interim Committee, on the basis of all relevant information and objective findings, with a view to reaching a solution acceptable to both Parties.

(b)

Where the Parties have entered into consultations within the Interim Committee as above and have failed to agree on an acceptable solution within three months following the notification, the Party concerned may temporarily suspend the relevant preferential treatment of the product(s) concerned. A temporary suspension shall be notified to the Interim Committee without undue delay.

(c)

Temporary suspensions under this Article shall be limited to the minimum necessary to protect the financial interests of the Party concerned. They shall not exceed a period of six months, which may be renewed. Temporary suspensions shall be notified immediately after their adoption to the Interim Committee. They shall be subject to periodic consultations within the Interim Committee in particular with a view to their termination as soon as the conditions for their application no longer prevail.

5.   At the same time as the notification to the Interim Committee under paragraph 4(a) of this Article, the Party concerned should publish a notice to importers in its Official Journal. The notice to importers should indicate for the product concerned that there is a finding, on the basis of objective information, of a failure to provide administrative cooperation and/or of irregularities or fraud.

Article 32 (SAA Article 47)

In case of error by the competent authorities in the proper management of the preferential system at export, and in particular in the application of the provisions of Protocol 3 to this Agreement where this error leads to consequences in terms of import duties, the contracting Party facing such consequences may request Interim Committee to examine the possibilities of adopting all appropriate measures with a view to resolving the situation.