Home Europe Council of the European Union Council Decision (EU) 2024/2968 of 21 November 2024 on the p...
Date: 29-Nov-2024 Category: Not Applicable State: Union Government Country: Europe

Council Decision (EU) 2024/2968 of 21 November 2024 on the position to be adopted on behalf of the European Union within the Joint Committee established by the Agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part, with regard to a decision establishing the general requirements for proofs of origin issued electronically under Article 17(4) of Appendix A to Protocol 3 to that Agreement

Issued by Council of the European Union · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • Council Decision (EU) 2024/2968 outlines the European Union's position within the Joint Committee established by the agreement between the European Community and the governments of Denmark and the Faroe Islands. This position concerns a decision to establish general requirements for proofs of origin issued electronically, as per Article 17(4) of Appendix A to Protocol 3 of the Agreement.
  • The decision aims to facilitate trade by enabling the use of electronically issued proofs of origin, aligning with modernized rules of origin.

Key Changes

  • The Joint Committee is set to take a decision on establishing general requirements for proofs of origin issued electronically.
  • This decision is based on Article 17(4) of Appendix A to Protocol 3 of the Agreement between the European Community and Denmark/Faroe Islands.
  • The decision aligns with the Regional Convention on pan-Euro-Mediterranean preferential rules of origin and its amendments, including the implementation of Transitional Rules.
  • The Transitional rules aim to provide less strict rules of origin and enable the use of electronically issued proofs of origin.
  • Council Decision 97/126/EC concluded the original agreement between the European Community and Denmark/Faroe Islands, effective from January 1, 1997.
  • Council Decision 2013/94/EU concluded the Regional Convention on pan-Euro-Mediterranean preferential rules of origin, effective for the EU from May 1, 2012.
  • Council Decision (EU) 2019/2198 supported amendments to the Regional Convention, introducing modernized rules of origin, scheduled to enter into force on January 1, 2025.
  • Decision No 1/2021 of the EC/Denmark-Faroe Islands Joint Committee replaced Protocol 3 to the Agreement, concerning the definition of ‘originating products’ and methods of administrative cooperation.
  • The Council Decision (EU) 2024/2968 will expire on December 31, 2025.

Impact Analysis

Businesses/Traders

  • Action Items: Businesses should review their supply chains to identify opportunities to benefit from the less strict rules of origin.

Customs Authorities

  • Action Items: Customs authorities should ensure that their systems can handle both sets of rules and provide clear guidance to traders on which rules apply in specific cases.

European Union

  • Action Items: The EU Commission should continue to work with other contracting parties to the Regional Convention to promote the adoption of modernized rules of origin.

Key Entities Referenced

European Union: One of the parties involved in the agreement, represented by the Council of the European Union. Government of Denmark: One of the parties involved in the agreement. Home Government of the Faroe Islands: One of the parties involved in the agreement. Joint Committee: Committee established by the Agreement between the European Community, Denmark, and the Faroe Islands, responsible for making decisions related to the agreement. Regional Convention on pan-Euro-Mediterranean preferential rules of origin: A convention aimed at harmonizing rules of origin in the pan-Euro-Mediterranean region. Council Decision 97/126/EC: Council Decision concerning the conclusion of an agreement between the European Community, and the Government of Denmark and the Home Government of the Faroe Islands. 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. Decision No 1/2021 of the EC/Denmark-Faroe Islands Joint Committee: Decision amending the Agreement between the European Community, and the Government of Denmark and the Home Government of the Faroe Islands, by replacing Protocol 3 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 2024/2968 29.11.2024 COUNCIL DECISION (EU) 2024/2968 of 21 November 2024 on the position to be adopted on behalf of the European Union within the Joint Committee established by the Agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part, with regard to a decision establishing the general requirements for proofs of origin issued electronically under Article 17(4) of Appendix A to Protocol 3 to that Agreement 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 Agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part (the ‘Agreement’) was concluded by the Union by Council Decision 97/126/EC (1) and entered into force on 1 January 1997. (2) Pursuant to Article 31 of the Agreement, the Joint Committee, established under that Article, (the ‘Joint Committee’) may take decisions in the cases provided for in the Agreement. (3) At its next meeting, the Joint Committee is to take a decision establishing the general requirements for proofs of origin issued electronically. (4) It is appropriate to establish the position to be adopted on the Union’s behalf within the Joint Committee as the decision of the Joint Committee 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. (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. (1) Council Decision 97/126/EC of 6 December 1996 concerning the conclusion of an agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part (OJ L 53, 22.2.1997, p. 1). (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/2024/2968/oj 1/2EN OJ L, 29.11.2024 (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 pending the entry into force of the amendment of the Convention. As regards the Kingdom of Denmark (‘Denmark’) and the Faroe Islands, Protocol 3 to the Agreement was replaced by a new Protocol 3 by Decision No 1/2021 of the EC/Denmark-Faroe Islands Joint Committee (5). The Transitional rules are set out in Appendix A to that new Protocol 3. (9) The two main objectives of the Transitional rules are, firstly, to provide for less strict rules, making it easier for goods to qualify for preferential originating status and, secondly, to enable the use of proofs of origin that have been issued electronically and/or submitted electronically. (10) The Union on the one hand, and Denmark and the Faroe Islands on the other hand, have agreed to apply Article 17(4) of Appendix A to Protocol 3 to the Agreement, as regards proofs of origin issued electronically. Therefore, a framework of general requirements for proofs of origin issued electronically should be determined. (11) The position of the Union within the Joint Committee 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 Joint Committee established by the Agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part (the ‘Agreement’) at its next meeting, with regard to a decision establishing the general requirements for proofs of origin issued electronically under Article 17(4) of Appendix A to Protocol 3 to that Agreement, shall be based on the draft decision of the Joint Committee 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 1/2021 of the EC/Denmark-Faroe Islands Joint Committee of 23 June 2021 amending the Agreement between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part, by replacing Protocol 3 thereto concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation [2021/1906] (OJ L 395, 9.11.2021, p. 84). 2/2 ELI: http://data.europa.eu/eli/dec/2024/2968/oj

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