Home Europe Council of the European Union Council Decision (EU) 2024/2955 of 21 November 2024 on the p...
Date: 29-Nov-2024 Category: Not Applicable State: Union Government Country: Europe

Council Decision (EU) 2024/2955 of 21 November 2024 on the position to be adopted on behalf of the European Union within the Stabilisation and Association Council established by the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part, with regard to a decision concerning the amendment of Protocol 2 to that Agreement as regards permeability between the Regional Convention on pan-Euro-Mediterranean preferential rules of origin and the Transitional rules of origin

Issued by Council of the European Union · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • This Council Decision (EU) 2024/2955 establishes the European Union's position within the Stabilisation and Association Council regarding the amendment of Protocol 2 of the Stabilisation and Association Agreement between the EU and Bosnia and Herzegovina.
  • The amendment concerns the 'permeability' between the Regional Convention on pan-Euro-Mediterranean preferential rules of origin and the Transitional rules of origin, aiming to simplify trade by allowing goods that qualify under one set of rules to be considered originating under the other.

Key Changes

  • The decision focuses on amending Article 8 of Appendix A to Protocol 2 of the Agreement to facilitate the application of permeability between the Convention and the Transitional rules.
  • The Transitional rules, which are generally less strict than the Convention's rules, have been applied bilaterally among Contracting Parties since September 1, 2021.
  • Decision No 1/2023 of the EU-Bosnia and Herzegovina Stabilisation and Association Council replaced Protocol 2 to the Agreement with a new Protocol 2, which includes the Transitional rules in Appendix A.
  • The amendment of the Convention, providing for modernised and more flexible rules of origin, will enter into force on 1 January 2025.
  • The Council Decision (EU) 2024/2955 enters into force on 21 November 2024 and expires on 31 December 2025.

Impact Analysis

Businesses involved in trade between EU and Bosnia and Herzegovina

  • Action Items: Businesses should seek clarification on specific product classifications to determine eligibility for preferential originating status.

Customs Authorities of EU and Bosnia and Herzegovina

  • Action Items: Update customs procedures and provide training to customs officials on the new rules of origin and the principle of permeability.

European Union

  • Action Items: The EU needs to ensure that its position within the Stabilisation and Association Council aligns with its trade policy objectives.

Key Entities Referenced

Stabilisation and Association Council: Established under Article 115 of the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part. It may take decisions within the scope of the Agreement and may decide to amend the provisions of Protocol 2. Regional Convention on pan-Euro-Mediterranean preferential rules of origin (the Convention): A convention concluded by the Union by Council Decision 2013/94/EU, providing rules of origin for trade among participating countries. Transitional rules of origin: An alternative set of rules of origin based on the amendment of the Convention, implemented on a transitional, bilateral basis pending the entry into force of the amendment of the Convention. These rules are generally less strict than those of the Convention. Council Decision 2013/94/EU: Council Decision on the conclusion of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin. Council Decision (EU) 2019/2198: Council Decision on the position to be taken on behalf of the European Union within the Joint Committee established by the Regional Convention on pan-Euro-Mediterranean preferential rules of origin as regards the amendment of the Convention. Council and Commission Decision (EU, Euratom) 2015/998: Council and Commission Decision on the conclusion of the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part. Decision No 1/2023 of the EU-Bosnia and Herzegovina Stabilisation and Association Council: Decision amending the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part, by replacing Protocol 2 thereto concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation.
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Official Journal EN of the European Union L series 2024/2955 29.11.2024 COUNCIL DECISION (EU) 2024/2955 of 21 November 2024 on the position to be adopted on behalf of the European Union within the Stabilisation and Association Council established by the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part, with regard to a decision concerning the amendment of Protocol 2 to that Agreement as regards permeability between the Regional Convention on pan-Euro-Mediterranean preferential rules of origin and the Transitional rules of origin THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 207(4), first subparagraph, in conjunction with Article 218(9) thereof, Having regard to the proposal from the European Commission, Whereas: (1) The Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part (the ‘Agreement’) was concluded by the Union by Council and Commission Decision (EU, Euratom) 2015/998 (1) and entered into force on 1 June 2015. (2) Pursuant to Article 117 of the Agreement, the Stabilisation and Association Council established under Article 115 of the Agreement (the ‘Stabilisation and Association Council’) may take decisions within the scope of the Agreement. Pursuant to Article 4 of Protocol 2 to the Agreement, the Stabilisation and Association Council may decide to amend the provisions of that Protocol. (3) At its next meeting, the Stabilisation and Association Council is to take a decision on an amendment of Protocol 2 to the Agreement. (4) It is appropriate to establish the position to be adopted on the Union’s behalf within the Stabilisation and Association Council as the decision of the Stabilisation and Association Council will have legal effects. (5) The Regional Convention on pan-Euro-Mediterranean preferential rules of origin (the ‘Convention’) was concluded by the Union by Council Decision 2013/94/EU (2) and entered into force in relation to the Union on 1 May 2012. By Decision (EU) 2019/2198 (3), the Council supported the amendment of the Convention providing for a new set of modernised and more flexible rules of origin (the ‘amendment of the Convention’). The amendment of the Convention will enter into force on 1 January 2025. (6) At the technical meeting held in Brussels on 5 February 2020, the majority of the Contracting Parties to the Convention agreed to implement an alternative set of rules of origin based on the amendment of the Convention on a transitional, bilateral basis (the ‘Transitional rules’). The Transitional rules apply in parallel with the rules of the Convention, pending the entry into force of the amendment of the Convention. (1) Council and Commission Decision (EU, Euratom) 2015/998 of 21 April 2015 on the conclusion of the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part (OJ L 164, 30.6.2015, p. 548). (2) Council Decision 2013/94/EU of 26 March 2012 on the conclusion of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (OJ L 54, 26.2.2013, p. 3). (3) Council Decision (EU) 2019/2198 of 25 November 2019 on the position to be taken on behalf of the European Union within the Joint Committee established by the Regional Convention on pan-Euro-Mediterranean preferential rules of origin as regards the amendment of the Convention (OJ L 339, 30.12.2019, p. 1). ELI: http://data.europa.eu/eli/dec/2024/2955/oj 1/2EN OJ L, 29.11.2024 (7) The application of the Transitional rules ensures the adaptation of the trade flows and customs practices pending the entry into force of the amendment of the Convention. (8) Since 1 September 2021, a number of bilateral protocols on rules of origin among several Contracting Parties to the Convention (4) have entered into force, rendering the Transitional rules applicable. As regards Bosnia and Herzegovina, Protocol 2 to the Agreement was replaced by a new Protocol 2 by Decision No 1/2023 of the EU-Bosnia and Herzegovina Stabilisation and Association Council (5). The Transitional rules are set out in Appendix A to that new Protocol 2. (9) The objective of the Transitional rules is to provide for less strict rules, making it easier for goods to qualify for preferential originating status. As the Transitional rules are, in general, less strict than those of the Convention, goods fulfilling the rules of origin set out in the Convention could also qualify as originating under the Transitional rules, with the exception of certain agricultural products classified under Chapters 2, 4 to 15 and 16 (except for processed fishery products) and Chapters 17 to 24 of the Harmonized Commodity Description and Coding System. The Transitional rules are applicable in parallel with the rules of origin set out in the Convention, thus creating two distinct zones of cumulation of origin. In that context, it can happen that goods fall under both sets of rules of origin simultaneously. According to the principle of permeability under Article 21(1), point (d), of Appendix A to Protocol 2 to the Agreement (‘permeability’), goods which have acquired originating status under one set of rules of origin can be also considered as originating under the other set of rules of origin. In order to facilitate the application of permeability between the Convention and the Transitional rules, Article 8 of Appendix A to Protocol 2 to the Agreement should be amended. (10) The position of the Union within the Stabilisation and Association Council should therefore be based on the attached draft decision, HAS ADOPTED THIS DECISION: Article 1 The position to be adopted on the Union’s behalf within the Stabilisation and Association Council established by the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part (the ‘Agreement’) at its next meeting, with regard to a decision concerning the amendment of Protocol 2 to the Agreement as regards permeability between the Regional Convention on pan-Euro-Mediterranean preferential rules of origin on the one hand and the Transitional rules of origin included in Appendix A to Protocol 2 to the Agreement on the other hand, shall be based on the draft decision of the Stabilisation and Association Council attached to this Decision. Article 2 This Decision shall enter into force on the date of its adoption and shall expire on 31 December 2025. Done at Brussels, 21 November 2024. For the Council The President SZIJJÁRTÓ P. (4) The European Union, Iceland, the Swiss Confederation (including Liechtenstein), the Kingdom of Norway, the Faroe Islands, the State of Israel, the Hashemite Kingdom of Jordan, Palestine (this designation shall not be construed as recognition of a State of Palestine and is without prejudice to the individual positions of the Member States on this issue), the Republic of Albania, Bosnia and Herzegovina, Kosovo (this designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence), the Republic of North Macedonia, the Republic of Serbia, Montenegro, Georgia, the Republic of Moldova and Ukraine. (5) Decision No 1/2023 of the EU-Bosnia and Herzegovina Stabilisation and Association Council of 11 December 2023 amending the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part, by replacing Protocol 2 thereto concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation [2024/245] (OJ L, 2024/245, 18.1.2024, ELI: http://data.europa.eu/eli/dec/2024/245/ oj). 2/2 ELI: http://data.europa.eu/eli/dec/2024/2955/oj

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