Date: 2016-03-17Category: Not ApplicableState: Union GovernmentCountry: Europe
Decision of the EU-Iceland Joint Committee No 1/2016 of 17 February 2016 amending Protocol 3 to the Agreement between the European Economic Community and the Republic of Iceland concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation [2016/386]
**Executive Summary:**
This decision of the EU-Iceland Joint Committee amends Protocol 3 to the Agreement between the European Economic Community and the Republic of Iceland concerning the definition of originating products and methods of administrative cooperation. It replaces the existing protocol with a reference to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin. The decision is effective from the date of adoption, 17 February 2016, and applies retroactively from 1 May 2015.
**Key Points / Main Content:**
* **Amendment of Protocol 3:**
* Protocol 3, concerning originating products and administrative cooperation, is replaced by the text in the Annex.
* **Applicable Rules of Origin:**
* Appendix I and relevant provisions of Appendix II to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (the Convention) apply.
* References to "the relevant agreement" in the Convention appendices are construed as referring to the Agreement between the EU and Iceland.
* **Dispute Settlement:**
* Disputes related to verification procedures that cannot be settled between customs authorities are submitted to the Joint Committee.
* Disputes between importers and the importing country's customs authorities are settled under the importing country's legislation.
* **Amendments to the Protocol:**
* The Joint Committee may amend the provisions of the Protocol.
* **Withdrawal from the Convention:**
* If either the EU or Iceland withdraws from the Convention, they will immediately negotiate new rules of origin.
* Until new rules are in force, the rules of origin in the Convention appendices at the time of withdrawal will continue to apply, allowing only bilateral cumulation between the EU and Iceland.
* **Transitional Provisions on Cumulation:**
* Where cumulation involves only EFTA States, the Faroe Islands, the EU, Turkey, the participants in the Stabilisation and Association Process and the Republic of Moldova, the proof of origin may be a movement certificate EUR.1 or an origin declaration.
**Impact Analysis:**
* **EU and Icelandic Customs Authorities:**
* *Impact:* Must implement and adhere to the new rules of origin as defined by the Convention. They also need to manage dispute resolutions according to the updated procedures.
* *Action Required:* Update internal procedures and systems to reflect the application of the Convention, and prepare for potential dispute resolutions via the Joint Committee.
* **Importers and Exporters in the EU and Iceland:**
* *Impact:* Need to comply with the new rules of origin to benefit from preferential treatment under the Agreement. The transitional cumulation provisions also affect them.
* *Action Required:* Familiarize themselves with the Convention's rules of origin and ensure that they have the correct documentation (movement certificate EUR.1 or origin declaration, where applicable) to prove origin.
* **Joint Committee:**
* *Impact:* Responsible for settling disputes related to verification procedures and can decide to amend the provisions of the Protocol.
* *Action Required:* Be prepared to address and resolve disputes submitted by customs authorities and consider potential amendments to the Protocol as needed.
Key Entities Referenced
European Union: A political and economic union of member states located primarily in Europe.
Republic of Iceland: A Nordic island country in the North Atlantic.
EU-Iceland Joint Committee: A committee established by the Agreement between the European Economic Community and the Republic of Iceland to amend the provisions of Protocol 3.
Agreement between the European Economic Community and the Republic of Iceland: An agreement signed in Brussels on 22 July 1972, concerning originating products and methods of administrative cooperation.
Protocol 3: Protocol 3 to the Agreement between the European Economic Community and the Republic of Iceland concerning the definition of the concept of originating products and methods of administrative cooperation.
Regional Convention on pan-Euro-Mediterranean preferential rules of origin: A convention that aims to replace the protocols on rules of origin currently in force among the countries of the pan-Euro-Mediterranean area with a single legal act.
Brussels: The capital of Belgium and the location where the decision was made.
Turkey: A transcontinental country located mainly on the Anatolian Peninsula in Western Asia
L 72/66 EN Official Journal of the European Union 17.3.2016
DECISION OF THE EU-ICELAND JOINT COMMITTEE No 1/2016
of 17 February 2016
amending Protocol 3 to the Agreement between the European Economic Community and the
Republic of Iceland concerning the definition of the concept of ‘originating products’ and methods
of administrative cooperation [2016/386]
THE JOINT COMMITTEE,
Having regard to the Agreement between the European Economic Community and the Republic of Iceland, signed in
Brussels on 22 July 1972 (1), (‘the Agreement’), and in particular its Article 11,
Having regard to Protocol 3 to the Agreement concerning the definition of the concept of ‘originating products’ and
methods of administrative cooperation, (‘Protocol 3’),
Whereas:
(1) Article 11 of the Agreement refers to Protocol 3 which lays down the rules of origin and provides for cumulation
of origin between the EU, Iceland, Switzerland (including Liechtenstein), Norway, Turkey, the Faroe Islands and
the participants in the Barcelona Process, namely Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Palestine (2),
Syria and Tunisia..
(2) Article 39 of Protocol 3 provides that the Joint Committee provided for in Article 30 of the Agreement may
decide to amend the provisions of this protocol.
(3) The Regional Convention on pan-Euro-Mediterranean preferential rules of origin (3) (‘the Convention’), aims to
replace the protocols on rules of origin currently in force among the countries of the pan-Euro-Mediterranean
area with a single legal act.
(4) The EU and Iceland signed the Convention on 15 June 2011 and 30 June 2011, respectively.
(5) The EU and Iceland deposited their instruments of acceptance with the depositary of the Convention on 26
March 2012 and 12 March 2012, respectively. Consequently, in application of its Article 10(3), the Convention
entered into force in relation to the EU and Iceland on 1 May 2012.
(6) The Convention has included participants in the Stabilisation and Association Process and the Republic of
Moldova in the pan-Euro-Mediterranean zone of cumulation of origin.
(7) Protocol 3 to the Agreement should therefore be amended so as to make reference to the Convention,
HAS ADOPTED THIS DECISION:
Article 1
Protocol 3 to the Agreement, concerning the definition of the concept of ‘originating products’ and methods of adminis
trative cooperation shall be replaced by the text set out in the Annex to this Decision.
(1) OJ L 301, 31.12.1972, p. 2.
(2) The 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 the issue.
(3) OJ L 54, 26.2.2013, p. 4.17.3.2016 EN Official Journal of the European Union L 72/67
Article 2
This Decision shall enter into force on the date of its adoption.
It shall apply from 1 May 2015.
Done at Brussels, 17 February 2016.
For the Joint Committee
The President
Petros SOURMELISL 72/68 EN Official Journal of the European Union 17.3.2016
ANNEX
Protocol 3
concerning the definition of the concept of ‘originating products’ and methods of administrative
cooperation
Article 1
Applicable rules of origin
For the purpose of implementing this Agreement, Appendix I and the relevant provisions of Appendix II to the Regional
Convention on pan-Euro-Mediterranean preferential rules of origin (1), (‘the Convention’) shall apply.
All references to the ‘relevant agreement’ in Appendix I and in the relevant provisions of Appendix II to the Regional
Convention on pan-Euro-Mediterranean preferential rules of origin shall be construed so as to mean this Agreement.
Article 2
Dispute settlement
Where disputes arise in relation to the verification procedures of Article 32 of Appendix I to the Convention that
cannot be settled between the customs authorities requesting the verification and the custom authorities responsible for
carrying out this verification, they shall be submitted to the Joint Committee.
In all cases the settlement of disputes between the importer and the customs authorities of the importing country shall
take place under the legislation of that country.
Article 3
Amendments to the Protocol
The Joint Committee may decide to amend the provisions of this Protocol.
Article 4
Withdrawal from the Convention
1. Should either the EU or Iceland give notice in writing to the depositary of the Convention of their intention to
withdraw from the Convention according to its Article 9, the EU and Iceland shall immediately enter into negotiations
on rules of origin for the purpose of implementing this Agreement.
2. Until the entry into force of such newly negotiated rules of origin, the rules of origin contained in Appendix I and,
where appropriate, the relevant provisions of Appendix II to the Convention, applicable at the moment of withdrawal,
shall continue to apply to this Agreement. However, as of the moment of withdrawal, the rules of origin contained in
Appendix I and, where appropriate, the relevant provisions of Appendix II to the Convention shall be construed so as to
allow bilateral cumulation between the EU and Iceland only.
Article 5
Transitional provisions — cumulation
Notwithstanding Articles 16(5) and 21(3) of Appendix I of the Convention, where cumulation involves only EFTA
States, the Faroe Islands, the EU, Turkey, the participants in the Stabilisation and Association Process and the Republic of
Moldova, the proof of origin may be a movement certificate EUR.1 or an origin declaration.
(1) OJ L 54, 26.2.2013, p. 4.