Date: 17-May-2024Category: Not ApplicableState: Union GovernmentCountry: Europe
Commission Delegated Regulation (EU) 2024/1363 of 12 March 2024 amending Annex IV to Regulation (EU) No 978/2012 of the European Parliament and of the Council in order to remove Bhutan from the list of beneficiary countries of the special arrangement for the least-developed countries
Commission Delegated Regulation (EU) 2024/1363 amends Annex IV to Regulation (EU) No 978/2012 to remove Bhutan from the list of beneficiary countries of the special arrangement for the least-developed countries (Everything But Arms - EBA).
Key Changes
Bhutan graduated from the UN list of least-developed countries on 13 December 2023.
As a result, Bhutan no longer qualifies for EBA beneficiary status under Article 17(1) of Regulation (EU) No 978/2012.
Bhutan will be removed from Annex IV of Regulation (EU) No 978/2012, with the removal taking effect on 1 January 2028, following a three-year transitional period as stipulated in Article 17(2) of Regulation (EU) No 978/2012.
The regulation enters into force on 1 January 2025 but will apply from 1 January 2028.
Impact Analysis
Bhutanese Exporters
They should explore alternative trade agreements or strategies to mitigate the impact of losing EBA benefits.
EU Importers
They may need to explore alternative sourcing options or renegotiate contracts with Bhutanese suppliers.
European Commission
The Commission should monitor the impact of the removal of EBA benefits on Bhutan's economy.
Bhutanese Government
The government should engage with the EU to explore alternative forms of trade cooperation.
Key Entities Referenced
European Parliament: The directly elected parliamentary body of the European Union.
Council of the European Union: A body composed of government ministers from each EU member state.
European Commission: The executive branch of the European Union, responsible for proposing and implementing legislation.
United Nations (UN): An international organization founded in 1945, whose stated aims are to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmonizing the actions of nations.
Regulation (EU) No 978/2012: Regulation of the European Parliament and of the Council applying a scheme of generalised tariff preferences and repealing Council Regulation (EC) No 732/2008.
Bhutan: A landlocked country in the Eastern Himalayas.
Official Journal EN
of the European Union L series
2024/1363 17.5.2024
COMMISSION DELEGATED REGULATION (EU) 2024/1363
of 12 March 2024
amending Annex IV to Regulation (EU) No 978/2012 of the European Parliament and of the Council
in order to remove Bhutan from the list of beneficiary countries of the special arrangement for the
least-developed countries
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union and in particular Article 207 thereof,
Having regard to Regulation (EU) No 978/2012 of the European Parliament and of the Council of 25 October 2012
applying a scheme of generalised tariff preferences and repealing Council Regulation (EC) No 732/2008(1), and in
particular Article 17(2) thereof,
Whereas:
(1) Pursuant to Article 17(1) of Regulation (EU) No 978/2012, a country which is identified by the United Nations (‘UN’)
as a least-developed country should benefit from the tariff preferences provided under the special arrangement for
the least-developed countries ‘Everything But Arms’ (EBA).
(2) The list of beneficiary countries of the special arrangement for the least-developed countries referred to in
Article 1(2), point (c) of Regulation (EU) No 978/2012 is established in Annex IV to the Regulation. Article 17(2) of
Regulation (EU) No 978/2012 lays down that Annex IV is to be continuously reviewed in order to reflect changes in
relation to the conditions laid down in Article 17(1). Furthermore, Article 17(2) of Regulation (EU) No 978/2012
establishes a three-year transitional period for removing a country from the list of EBA beneficiary countries.
(3) Bhutan graduated from the UN least-developed country category on 13 December 2023. Therefore, Bhutan no
longer qualifies for EBA beneficiary status under Article 17(1) of Regulation (EU) No 978/2012 and should be
removed from Annex IV to that Regulation. In accordance with Article 17(2) of Regulation (EU) No 978/2012, the
removal of Bhutan from the list of EBA beneficiary countries should apply following a transitional period of 3 years
as from the date on which the Commission’ delegated act amending Annex IV to Regulation (EU) No 978/2012
enters into force. Bhutan should, therefore, be removed from Annex IV, with application from 1 January 2028.
(4) Therefore, Annex IV to Regulation (EU) No 978/2012 should be amended,
HAS ADOPTED THIS REGULATION:
Article 1
Amendment to Regulation (EU) No 978/2012
In Annex IV to Regulation (EU) No 978/2012, the following alphabetical code and the corresponding country is removed
from columns A and B, respectively:
‘BT Bhutan’
(1) OJ L 303, 31.10.2012, p. 1, ELI: http://data.europa.eu/eli/reg/2012/978/oj.
ELI: http://data.europa.eu/eli/reg_del/2024/1363/oj 1/2EN
OJ L, 17.5.2024
Article 2
Entry into force and application
This Regulation shall enter into force on 1 January 2025.
This Regulation shall apply from 1 January 2028.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 12 March 2024.
For the Commission
The President
Ursula VON DER LEYEN
2/2 ELI: http://data.europa.eu/eli/reg_del/2024/1363/oj