21994A1231(24)

21994A1231(24) 21994A1231(24) Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part - Protocol 1 on textile and clothing products - Protocol 2 on ECSC products - Protocol 3 on trade between Bulgaria and the Community in processed agricultural products not covered by Annex II to the EEC Treaty - Protocol 4 concerning the definition of the concept of originating products and methods of administrative cooperation - Protocol 5 on specific provisions relating to trade between Bulgaria, of the one part, and Spain and Portugal, of the other part - Protocol 6 on mutual assistance in customs matters - Protocol 7 on concessions with annual limits - Protocol 8 on transboundary watercourses - Final Act - Joint Declarations Official Journal L 358 , 31/12/1994 P. 0003 - 0222 Finnish special edition: Chapter 11 Volume 39 P. 0004 Swedish special edition: Chapter 11 Volume 39 P. 0004  Dates: of document:   19/12/1994 of effect:   01/02/1995; Entry into force See Art 124 of signature:   08/03/1993; Brussels end of validity:   99/99/9999; See Art. 121 Authentic language: The official languages ; Spanish ; Danish ; German ; Greek ; English ; French ; Italian ; Dutch ; Portuguese ; Other than Community language ; Bulgarian Author: EUROPEAN ECONOMIC COMMUNITY ; European Coal and Steel Community ; European Atomic Energy Community ; The 12 Member States ; Belgium ; Denmark ; Federal Republic of Germany ; Greece ; Spain ; France ; Ireland ; Italy ; Luxembourg ; Netherlands ; Portugal ; United Kingdom ; Bulgaria Subject matter: External relations ; Association Directory code: 11401030 EUROVOC descriptor: EC association agreement ; Bulgaria ; economic cooperation ; trade cooperation ; European integration ; trade agreement Legal basis: 151K095................... Adoption 157A101-L2................ Adoption 192E228-P2F2.............. Adoption 192E228-P3L2.............. Adoption 192E238................... Adoption Instruments cited: 157E042................... 157E043................... 157E085................... 157E086................... 157E092-P3LA.............. 157E092................... 362R0026.................. 475A3490.................. 383R3420.................. 389R3906.................. 290A1023(02).............. 390D0233.................. 390D0685.................. 391R3687.................. 293A0216(02).............. Amendment to: 290A1023(02)...... Amendment..... Replacement from 01/02/1995 Amended by: Completed by.. 294A0129(06)...... Completion from 01/02/1994 Amended by.... 294A0129(06)...... Amendment from 01/02/1994 Completed by.. 294A0517(05)...... DP31/12/93 Amended by.... 294A0712(01)...... Amendment from 01/07/1994 Corrected by.. 294A1231(24)R(01). Completed by.. 294A1231(25)...... Completion Completed by.. 294A1231(26)...... Completion Completed by.. 294A1231(27)...... Completion Completed by.. 294A1231(28)...... Completion Completed by.. 294A1231(29)...... Completion Completed by.. 294A1231(38)...... Completion from 01/01/1995 Amended by.... 294A1231(38)...... Amendment ANN.III from 01/01/1995 Amended by.... 294A1231(38)...... Amendment PROT 1 ART.2.1 from 01/01/1995 Amended by.... 294A1231(38)...... Replacement ART.10.3 from 01/01/1995 Adopted by.... 394D0908.......... DP19/12/94 Completed by.. 295A1230(02)...... Completed by.. 296A0426(01)...... Completion Amended by.... 296A0426(01)...... Completion ART.11.3 Amended by.... 296A0426(01)...... Amendment PROT 1 ART.2.1 Amended by.... 297A0520(01)...... Completion from 31/12/1993 Amended by.... 297D0524(01)...... Replacement PROT 4 from 01/01/1997 Implemented by 298D0121(01)...... Implementation ART 64.1 PT I. from 07/10/1997 Implemented by 298D0121(01)...... Implementation ART 64.1 PT II. from 07/10/1997 Implemented by 298D0121(01)...... Implementation PROT 2 ART 9.1 from 07/10/1997 Repealed by... 299A0429(01)...... Repeal ANN 10 Repealed by... 299A0429(01)...... Repeal ANN 13A Repealed by... 299A0429(01)...... Repeal ANN 13B Repealed by... 299A0429(01)...... Repeal ANN 14A Repealed by... 299A0429(01)...... Repeal ANN 14B Repealed by... 299A0429(01)...... Repeal ART.18 Repealed by... 299A0429(01)...... Repeal ART.21.4 Amended by.... 299A0429(01)...... Addition ANN 17 Amended by.... 299A0429(01)...... Replacement ANN 11A Amended by.... 299A0429(01)...... Replacement ANN 11B Amended by.... 299A0429(01)...... Replacement ANN 12A Amended by.... 299A0429(01)...... Replacement ANN 12B Amended by.... 299A0429(01)...... Replacement ART.19.2 Amended by.... 299A0429(01)...... Replacement ART.21.2 Amended by.... 299A0429(01)...... Replacement ART.21.3 Amended by.... 299A0429(01)...... Replacement ART.9.1 Amended by.... 299A0429(01)...... Replacement PROT 3 TXT Amended by.... 299D0212(01)...... Completion PROT 4 ANN 1 from 01/01/1999 Amended by.... 299D0212(01)...... Completion PROT 4 ANN 2 from 01/01/1999 Amended by.... 299D0212(01)...... Addition PROT 4 ANN 5 from 01/01/1999 Amended by.... 299D0212(01)...... Amendment PROT 4 ART.13 from 01/01/1999 Amended by.... 299D0212(01)...... Amendment PROT 4 ART.14 from 01/01/1999 Amended by.... 299D0212(01)...... Amendment PROT 4 ART.15 from 01/01/1999 Amended by.... 299D0212(01)...... Amendment PROT 4 ART.17 from 01/01/1999 Amended by.... 299D0212(01)...... Amendment PROT 4 ART.21 from 01/01/1999 Amended by.... 299D0212(01)...... Amendment PROT 4 ART.26.1 Amended by.... 299D0212(01)...... Amendment PROT 4 ART.27 from 01/01/1999 Amended by.... 299D0212(01)...... Amendment PROT 4 ART.30 from 01/01/1999 Amended by.... 299D0212(01)...... Amendment PROT 4 ART.32 from 01/01/1999 Amended by.... 299D0212(01)...... Replacement DATE PROT 4 ART.15.6 Amended by.... 299D0212(01)...... Replacement PROT 4 ART.1.I from 01/01/1999 Amended by.... 299D0212(01)...... Replacement PROT 4 ART.12 from 01/01/1999 Amended by.... 299D0212(01)...... Replacement PROT 4 ART.3 from 01/01/1999 Amended by.... 299D0212(01)...... Replacement PROT 4 ART.4 from 01/01/1999 Amended by.... 200D0114(02)...... Amendment PROT 4 ANN 2 from 01/01/2000 Amended by.... 200D0114(02)...... Amendment PROT 4 ART.21 from 01/01/2000 Amended by.... 200D0114(02)...... Amendment PROT 4 ART.26 from 01/01/2000 Amended by.... 200D0114(02)...... Replacement PROT 4 ART.30 from 01/01/2000 Amended by.... 300R2290.......... Replacement ANN 10 from 20/10/2000 Amended by.... 201D0359.......... Amendment PROT4ART22 from 01/01/2001 Amended by.... 201D0359.......... Addition PROT4ART20BI from 01/01/2001 Amended by.... 201D0359.......... Extended validity PROT4ART15.6 till 31/12/2001 Amended by.... 201D0359.......... Replacement PROT4ART30 from 01/01/2001 Amended by.... 201D0359.......... Amendment PROT4ANN2 from 01/01/2001 Amended by.... 201D0359.......... Replacement PROT4ART1PTI from 01/01/2001 Amended by.... 201D0359.......... Replacement PROT4ART15.6 from 01/01/2001 Amended by.... 201D0359.......... Replacement PROT4ART7 from 01/01/2001 Implemented by 201D0620.......... Implementation ART 64.1 from 01/06/2001 Implemented by 201D0620.......... Implementation ART 64.2 from 01/06/2001 Implemented by 201D0620.......... Implementation PROT 2 ART 9.1 from 01/06/2001 Implemented by 201D0620.......... Implementation PROT 2 ART 9.2 from 01/06/2001 Amended by.... 203A0424(02)...... Amendment ANN 10 from 01/06/2003 Amended by.... 203A0424(02)...... Amendment ANN 11 from 01/06/2003 Amended by.... 203A0424(02)...... Addition PROT from 01/06/2003 Amended by.... 203D0049.......... Replacement PROT 3 ANN 1 from 01/09/2002 Amended by.... 203D0049.......... Replacement PROT 3 ANN 2 from 01/09/2002 Amended by.... 203D0528.......... Replacement PROT 4 from 01/01/2002 Affected by case: A45P1........: Interpreted by.......................... 699J0235 A59P1........: Interpreted by.......................... 699J0235 Subsequent related instruments: Relation...... 399Y0331(01)...... Amendment proposed by 501PC0368......... Relation...... 202A1212(01)...... EUROPE AGREEMENT establishing an association between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part THE KINGDOM OF BELGIUM, THE KINGDOM OF DENMARK, THE FEDERAL REPUBLIC OF GERMANY, THE HELLENIC REPUBLIC, THE KINGDOM OF SPAIN, THE FRENCH REPUBLIC, IRELAND, THE ITALIAN REPUBLIC, THE GRAND DUCHY OF LUXEMBOURG, THE KINGDOM OF THE NETHERLANDS, THE PORTUGUESE REPUBLIC, THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, Contracting Parties to the Treaty establishing the EUROPEAN ECONOMIC COMMUNITY, the Treaty establishing the EUROPEAN COAL AND STEEL COMMUNITY, and the Treaty establishing the EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as 'Member States', and The EUROPEAN ECONOMIC COMMUNITY, the EUROPEAN ATOMIC ENERGY COMMUNITY and the EUROPEAN COAL AND STEEL COMMUNITY, hereinafter referred to as 'the Community', of the one part, and THE REPUBLIC OF BULGARIA, hereinafter referred to as 'Bulgaria', of the other part, CONSIDERING the importance of the traditional links existing between the Community, its Member States and Bulgaria and the common values that they share, RECOGNIZING that the Community and Bulgaria wish to strengthen these links and to establish close and long lasting relations, based on mutual interest and reciprocity, which would allow Bulgaria to take part in the process of European integration, thus strengthening and widening the relations established in the past notably by the Agreement on Trade and Commercial and Economic Cooperation, signed on 8 May 1990, CONSIDERING the opportunities for a relationship of a new quality offered by the emergence of a new democracy in Bulgaria, CONSIDERING the commitment of the Community and its Member States and of Bulgaria to strengthening the political and economic freedoms which constitute the very basis of the association, RECOGNIZING the fundamental character of the democratic changes in Bulgaria, taking place in a peaceful manner and aimed at building a new political and economic system, based on the rule of law and human rights, political pluralism, and a pluralist multi-party system involving free and democratic elections and the creation of the legislative and economic conditions, necessary for the development of a market economy, as well as the need to continue and complete that process with the assistance of the Community, CONSIDERING the firm commitment of the Community and its Member States and of Bulgaria to the rule of law and human rights, including those of persons belonging to minorities, and to the full implementation of all other principles and provisons contained in the Final Act of the Conference on Security and Cooperation in Europe (CSCE), the concluding documents of Vienna and Madrid, the Charter of Paris for a new Europe, as well as to the principles and provisions of the European Energy Charter, WILLING to promote improved contacts among their citizens as well as the free flow of information and ideas, as agreed by the Parties in the framework of the CSCE, CONSCIOUS of the importance of this Agreement to establishing and enhancing in Europe a system of stability based on cooperation, with the Community as one of the cornerstones, BELIEVING that a link should be made between full implementation of association, on the one hand, and continuation of the actual accomplishment of Bulgaria's political, economic and legal reforms on the other hand, as well as the introduction of the factors necessary for cooperation and the actual rapprochement between the Parties' systems, notably in the light of the conclusions of the CSCE Bonn Conference, DESIROUS of establishing regular political dialogue on bilateral and international issues of mutual interest to enhance and complete the association, TAKING ACCOUNT of the Community's willingness to provide decisive support for the completion of the transition towards a market economy in Bulgaria and to help Bulgaria cope with the economic and social consequences of structural readjustment, TAKING ACCOUNT furthermore of the Community's willingness to set up instruments of cooperation and economic, technical and financial assistance on a global and multiannual basis, CONSIDERING the commitment of the Community and Bulgaria to free trade, and in particular in respect of the General Agreement on Tariffs and Trade principles, BEARING in mind the economic and social disparities between the Community and Bulgaria and thus recognizing that the objectives of this association should be reached through appropriate provisions of this Agreement, CONVINCED that this Agreement will create a new climate for their economic relations and in particular for the development of trade and investment, instruments which are indispensable for economic restructuring and technological modernization of the Bulgarian economy, DESIROUS of establishing cultural cooperation and developing exchanges of information, RECOGNIZING the fact that Bulgaria's ultimate objective is to become a member of the Community, and that this association, in the view of the Parties, will help Bulgaria to achieve this objective, HAVE DECIDED to conclude this Agreement and to this end have designated as their plenipotentiaries, THE KINGDOM OF BELGIUM: Robert URBAIN, Minister for Foreign Trade and European Affairs; THE KINGDOM OF DENMARK: JŲrgen ŲSTRŲM MŲLLER, State Secretary for Foreign Affairs; THE FEDERAL REPUBLIC OF GERMANY: Klaus KINKEL, Federal Minister for Foreign Affairs; THE HELLENIC REPUBLIC: Michel PAPACONSTANTINOU, Minister for Foreign Affairs; THE KINGDOM OF SPAIN: Javier SOLANA, Minister for Foreign Affairs; THE FRENCH REPUBLIC: Elisabeth GUIGOU, Minister responsible for European Affairs; IRELAND: Dick SPRING, Minister for Foreign Affairs; THE ITALIAN REPUBLIC: Valdo SPINI, State Secretary for Foreign Affairs; THE GRAND DUCHY OF LUXEMBOURG: Jacques POOS, Minister for Foreign Affairs; THE KINGDOM OF THE NETHERLANDS: P. KOOIJMANS, Minister for Foreign Affairs; THE PORTUGUESE REPUBLIC: J. M. DURAO BARROSO, Minister for Foreign Affairs; THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND: Douglas HURD, Secretary of State for Foreign and Commonwealth Affairs; THE EUROPEAN ECONOMIC COMMUNITY, THE EUROPEAN ATOMIC ENERGY COMMUNITY AND THE EUROPEAN COAL AND STEEL COMMUNITY: Niels HELVEG PETERSEN, Minister for Foreign Affairs of the Kingdom of Denmark, President-in-Office of the Council of the European Communities; Sir Leon BRITTAN, Member of the Commission of the European Communities; Hans VAN DEN BROEK, Member of the Commission of the European Communities; THE REPUBLIC OF BULGARIA: Luben BEROV, Prime Minister and Minister for Foreign Affairs; WHO, having exchanged their full powers, formed in good and due form, HAVE AGREED AS FOLLOWS: Article 1 1. An association is hereby established between the Community and its Member States on the one part, and Bulgaria on the other part. 2. The objectives of this association are: - to provide an appropriate framework for the political dialogue between the Parties allowing the development of close political relations, - to establish gradually a free trade area between the Community and Bulgaria covering substantially all trade between them, - to promote the expansion of trade and the harmonious economic relations between the Parties and so to foster the dynamic economic development and prosperity in Bulgaria, - to provide a basis for economic, financial, cultural and social cooperation, as well as for the Community's assistance to Bulgaria, - to support Bulgaria's efforts to develop its economy and to complete the transition into a market economy, - to provide an appropriate framework for the gradual integration of Bulgaria into the Community. To this end new rules, policies and practices will be established in compliance with market mechanisms, and Bulgaria shall work towards fulfilling the necessary requirements in this respect, - to set up institutions suitable to make the association effective. TITLE I POLITICAL DIALOGUE Article 2 A regular political dialogue shall be established between the Parties which they intend to develop and intensify. It shall accompany and consolidate the rapprochement between the Community and Bulgaria, support the political and economic changes underway in that country and contribute to the establishment of new links of solidarity and new forms of cooperation. The political dialogue and cooperation, based on shared values and aspirations: - will facilitate Bulgaria's full integration into the community of democratic nations and progressive rapprochement with the Community. The economic rapprochement provided for in this Agreement will lead to greater political convergence, - will bring about better mutual understanding and an increasing convergence of positions on international issues, and in particular on those matters likely to have substantial effects on one or the other Party, - will enable each Party to consider the position and interests of the other in their respective decision-making process, - will contribute to the rapprochement of the Parties' psotions on security issues and will enhance security and stability in the whole of Europe. Article 3 1. Meetings as appropriate shall take place between the President of the European Council and the President of the Commission of the European Communities on one side and the President of the Republic of Bulgaria on the other. 2. At ministerial level, political dialogue shall take place within the Association Council. This shall have general responsibility for all matters which the Parties might wish to put to it. Article 4 Other procedures and mechanisms for political dialogue shall be set up by the Parties, and in particular in the following forms: - meetings at senior official level (political directors) between officials of Bulgaria on the one hand, and the Presidency of the Council of the European Communities and the Commission of the European Communities, on the other, - taking full advantage of all diplomatic channels between the Parties, including appropriate contacts in the bilateral as well as multilateral field, such as the UN, CSCE meetings and other multilateral fora, - including Bulgaria in the group of countries receiving regular information on the issues dealt with by the European Political Cooperation as well as exchanging information with a view to achieving the objectives set out in Article 2, - any other means which would contribute to consolidating, developing and stepping up this dialogue. Article 5 Political dialogue at parliamentary level shall take place within the framework of the Parliamentary Association Committee. TITLE II GENERAL PRINCIPLES Article 6 Respect for the democratic principles and human rights established by the Helsinki Final Act and the Charter of Paris for a New Europe inspires the domestic and external policies of the Parties and constitutes an essential element of the present association. Article 7 1. The association includes a transitional period of a maximum duration of 10 years divided into two successive stages, each in principle lasting five years. The first stage shall begin when the Agreement enters into force. 2. The Association Council, bearing in mind that the principles of the market economy are essential to the present association, shall proceed regularly to examine the application of the Agreement and Bulgaria's accomplishment in the process leading to a market economy system on the basis of the principles established in the preamble. 3. During the course of the 12 months preceding the expiration of the first stage, the Association Council shall meet to decide the transition to the second stage as well as on any possible changes to be brought about as regards measures concerning the implementation of the dispositions governing the second stage. In doing this, it will take into account the results of the examination mentioned in paragraph 2. 4. The two states envisaged under 1, 2 and 3 do not apply to Title III. TITLE III FREE MOVEMENT OF GOODS Article 8 1. The Community and Bulgaria shall gradually establish a free trade area in a transitional period lasting a maximum of 10 years starting from the entry into force of this Agreement, in accordance with the provisons of this Agreement and in conformity with those of the General Agreement on Tariffs and Trade (GATT). 2. The combined nomenclature of goods shall be applied to the classification of goods for imports into the Community. The Bulgarian Customs Tariff shall be applied to the classification of goods for imports into Bulgaria. 3. For each product, the basic duty to which the successive reductions set out in this Agreement are to be applied shall be that actually applied erga omnes on the day preceding the entry into force of the Agreement. 4. If, after the entry into force of the Agreement, any tariff reduction is applied on an erga omnes basis, in particular, reductions resulting from the tariff agreement concluded as a result of the GATT Uruguay Round, such reduced duties shall replace the basic duties referred to in paragraph 3 as from that date when such reductions are applied. 5. The Community and Bulgaria shall communicate to each other their respective basic duties. CHAPTER I Industrial products Article 9 1. The provisions of this chapter shall apply to products originating in the Community and in Bulgaria listed in Chapters 25 to 97 of the combined nomenclature and of the Bulgarian Customs Tariff with the exception of the products listed in Annex I. 2. The provisions of Articles 10 to 14 included do not apply to products mentioned in Articles 16 and 17. Article 10 1. Customs duties on imports applicable in the Community to products originating in Bulgaria other than those listed in Annexes IIa, IIb and III shall be abolished on the entry into force of the Agreement. 2. Customs duties on imports applicable in the Community to products originating in Bulgaria which are listed in Annex IIa shall be progressively abolished in accordance with the following timetable: - on the date of entry into force of the Agreement, each duty shall be reduced to 50 % of the basic duty, - one year after the date of entry into force of the Agreement, the remaining duties shall be eliminated. Customs duties on imports applicable in the Community to products originating in Bulgaria listed in Annex IIb shall be progressively reduced, from the date of entry into force of the Agreement, by annual reductions of 20 % of the basic duty so as to arrive at total abolition by the end of the fourth year after the date of entry into force of the Agreement. 3. The products of Bulgarian origin listed in Annex III shall benefit from a suspension of customs duties on imports within the limits of annual Community tariff quotas or ceilings increasing progressively in accordance with the conditons defined in that Annex so as to arrive at a complete abolition of customs duties on imports of the products concerned at the end of the fifth year at the latest. At the same time, the customs duties on imports to be applied to import quantities when the quotas have been exhausted or when the levying of customs duties has been reintroduced with respect to products covered by a tariff ceiling, shall be progressively dismantled from the entry into force of the Agreement by annual reductions of 15 % of the basic duty. By the end of the fifth year, remaining duties shall be abolished. 4. Quantitative restrictions on imports to the Community and measures having an equivalent effect shall be abolished on the date of entry into force of the Agreement with regard to the products originating in Bulgaria. Article 11 1. Customs duties on imports applicable in Bulgaria to products originating in the Community which are listed in Annex IV shall be abolished on the date of entry into force of the Agreement. 2. Customs duties on imports applicable in Bulgaria to products originating in the Community which are listed in Annex V shall be progressively reduced in accordance with the following timetable: - one year after the entry into force of the Agreement, each duty shall be reduced to 80 % of the basic duty, - three years after the entry into force of the Agreement, each duty shall be reduced to 40 % of the basic duty, - five years after the entry into force of the Agreement, the remaining duties shall be eliminated. 3. Customs duties on imports applicable in Bulgaria to products originating in the Community which are listed in Annex VI shall be progressively reduced in accordance with the following timetable: - three years after the entry into force of the Agreement, each duty shall be reduced to 80 % of the basic duty, - five years after the entry into force of the Agreement, each duty shall be reduced to 60 % of the basic duty, - six years after the entry into force of the Agreement, each duty shall be reduced to 45 % of the basic duty, - seven years after the entry into force of the Agreement, each duty shall be reduced to 30 % of the basic duty, - eight years after the entry into force of the Agreement each duty shall be reduced to 15 % of the basic duty, - nine years after the entry into force of the Agreement, the remaining duties shall be eliminated. 4. Quantitative restrictions on imports into Bulgaria of products originating in the Community and measures having an equivalent effect shall be abolished upon entry into force of the Agreement, except for those listed in Annex VII which shall be abolished in accordance with the timetable provided for in that Annex. Article 12 The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature. Article 13 1. The Community shall abolish in its imports from Bulgaria any charges having an effect equivalent to customs duties on imports upon the entry into force of the Agreement. 2. Bulgaria shall abolish in its imports from the Community any charges having an equivalent effect to customs duties on imports upon entry into force of the Agreement, except for those listed in Annex VIII, which shall be abolished in accordance with the timetable provided in that Annex. Article 14 1. The Community and Bulgaria shall progressively abolish between them at the latest by the end of the fifth year after entry into force of the Agreement any customs duties on exports and charges having equivalent effect. 2. Quantitative restrictions on exports to Bulgaria and any measures having equivalent effect shall be abolished by the Community on the entry into force of the Agreement. 3. Quantitative restrictions on exports to the Community and any measures having equivalent effect shall be abolished by Bulgaria upon entry into force of the Agreement, with the exception of those listed in Annex IX, which shall be abolished at the latest by the end of the fifth year after the entry into force of the Agreement. Article 15 Each Party declares its readiness to reduce its customs duties in trade with the other Party more rapidly than is provided for in Articles 10 and 11 of its general economic situation and the situation of the economic sector concerned so permit. The Association Council may make recommendations to this effect. Article 16 Protocol 1 lays down the arrangements applicable to the textile products referred to therein. Article 17 Protocol 2 lays down the arrangements applicable to products covered by the Treaty establishing the European Coal and Steel Community. Article 18 1. The provisions of this chapter do not preclude the retention by the Community of an agricultural component in the duties applicable to products listed in Annex X in respect of products originating in Bulgaria. 2. The provisions of this chapter do not preclude the introduction of an agricultural component by Bulgaria in the duties applicable to the products listed in Annex X in respect of products originating in the Community. CHAPTER II Agriculture Article 19 1. The provisions of this chapter shall apply to agricultural products originating in the Community and in Bulgaria. 2. The term 'agricultural products' means the products listed in Chapters 1 to 24 of the combined nomenclature and of the Bulgarian Customs Tariff and the products listed in Annex I, but excluding fishery products as defined by Regulation (EEC) No 3687/91 on the common organization of the market in fishery prducts. Article 20 Protocol 3 lays down the trade arrangements for processed agricultural products which are listed in such protocol. Article 21 1. The Community shall abolish at the date of entry into force of the Agreement the quantitative restrictions on imports of agricultural products originating in Bulgaria maintained by virtue of Council Regulation (EEC) No 3420/83 in the form existing on the date of signature hereof. 2. The agricultural products originating in Bulgaria listed in Annex XI shall benefit, upon the date of entry into force of the Agreement, from the reduction of customs duties and levies within the limits of Community quotas and upon the conditions provided in the same Annex. 3. Agricultural products originating in the Community listed in Annex XIIa shall be imported into Bulgaria free of quantitative restrictions. Agricultural products originating in the Community listed in Annex XIIb shall be subject to the quantitative restrictions set out in that Annex. 4. The Community and Bulgaria shall grant each other the concessions referred to in Annexes XIII and XIV, on a harmonious and reciprocal basis, in accordance with the conditions laid down therein. 5. Taking account of the volume of trade in agricultural products between them, of their particular sensitivity, of the rules of the Common Agricultural Policy of the Community, of the rules of the agricultural policy in Bulgaria, of the role of agriculture in Bulgaria's economy, and of the consequences of the multilateral trade negotiations under the General Agreement on Tariffs and Trade, the Community and Bulgaria shall examine in the Association Council, product by product and on an orderly and reciprocal basis, the possibilities of granting each other further concessions. Article 22 Notwithstanding other provisons of this Agreement, and in particular Article 31, if, given the particular sensitivity of the agricultural markets, imports of products originating in one Party, which are the subject of concessions granted in Article 21, cause serious disturbance to the markets in the other Party, both Parties shall enter into consultations immediately to find an appropriate solution. Pending such a solution, the Party concerned may take the measures it deems necessary. CHAPTER III Fisheries Article 23 The provisions of this chapter shall apply to fishery products originating in the Community and in Bulgaria, which are covered by Regulation (EEC) No 3687/91. Article 24 The provisions of Article 21 (5) shall apply mutatis mutandis to fishery products. CHAPTER IV Common provisions Article 25 The provisions of this chapter shall apply to trade in all products, except where otherwise provided herein or in Protocols 1, 2 or 3. Article 26 1. No new customs duties on imports or exports or charges having equivalent effect shall be introduced, nor shall those already applied be increased, in the trade between the Community and Bulgaria from the date of entry into force of the Agreement. 2. No new quantitative restrictions on imports or exports or measure having equivalent effect shall be introduced, nor shall those existing be made more restrictive, in the trade between the Community and Bulgaria from the date of entry into force of the Agreement. 3. Without prejudice to the concessions granted under Article 21, the provisions of paragraphs 1 and 2 of this Article shall not restrict in any way the pursuance of the respective agricultural policies of Bulgaria and the Community or the taking of any measures under such policies. Article 27 1. The two Parties shall refrain from 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 two Parties may not benefit from repayment of internal taxation in excess of the amount of direct or indirect taxation imposed on them. Article 28 1. This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade except in so far as they alter the trade arrangements provided for in this Agreement. 2. Consultations between the Parties shall take place within the Association Council concerning agreements establishing such customs unions or free trade areas and, where requested, on other major issues related to their respective trade policies with third countries. In particular in the event of a third country acceding to the Community, such consultations shall take place so as to ensure that account can be taken of the mutual interests of the Community and Bulgaria stated in this Agreement. Article 29 Exceptional measures of limited duration which derogate from the provisions of Articles 11 and 26 (1) may be taken by Bulgaria in the form of increased customs duties. These measures may only concern infant industries, or certain sectors undergoing restructuring or facing serious difficulties, particularly where these difficulties produce important social problems. Customs duties on imports applicable in Bulgaria to products originating in the Community introduced by these measures may not exceed 25 % ad valorem and shall maintain an element of preference for products originating in the Community. The total value of imports of the products which are subject to these measures may not exceed 15 % of total imports from the Community of industrial products as defined in Chapter I, during the last year for which statistics are available. These measures shall be applied for a period not exceeding five years, unless a longer duration is authorized by the Association Council. They shall cease to apply at the latest at the expiration of the transitional period. No such measures can be introduced in respect of a product if more than three years have elapsed since the elimination of all duties and quantitative restrictions or charges or measures having an equivalent effect concerning that product. Bulgaria shall inform the Association Council of any exceptional measures it intends to take and, at the request of the Community, consultations shall be held in the Association Council on such measures and the sectors to which they apply before they are applied. When taking such measures, Bulgaria shall provide the Association Council with a schedule for the elimination of the customs duties introduced under this Article. This schedule shall provide for a phasing out of these duties starting at the latest two years after their introduction at equal annual rates. The Association Council may decide on a different schedule. Article 30 If one of the Parties finds that dumping is taking place in trade with the other Party within the meaning of Article VI of the General Agreement on Tariffs and Trade, it may take appropriate measures against this practice in accordance with the Agreement relating to the application of Article VI of the General Agreement on Tariffs and Trade, with related internal legislation and with the conditions and procedures laid down in Article 34. Article 31 Where any product is being imported in such increased quantities and under such conditions as to cause, or threaten to cause: - serious injury to domestic producers of like or directly competitive products in the territory of one of the Parties, or - serious disturbances in any sector of the economy or difficulties which could bring about serious deterioration in the economic situation of a region, the Community or Bulgaria, whichever is concerned, may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 34. Article 32 Where compliance with the provisions of Articles 14 and 26 leads to: (i) re-export towards a third country against which the exporting Party maintains, for the product concerned, quantitative export restrictions, export duties or measures having equivalent effect; or (ii) a serious shortage, or threat thereof, of a product essential to the exporting Party, and where the situations above referred to 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 Article 34. The measures shall be non-discriminatory and be eliminated when conditions no longer justify their maintenance. Article 33 The Member States and Bulgaria shall progressively adjust any State monopolies of a commercial character so as to ensure that, by the end of the fifth year following 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 and of Bulgaria. The Association Council will be informed of the measures adopted to implement this objective. Article 34 1. In the event of the Community or Bulgaria subjecting imports of products liable to give rise to the difficulties referred to in Article 31 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. 2. In the cases specified in Articles 30, 31 and 32, before taking the measures provided for therein or, in cases to which paragraph 3 (d) applies, as soon as possible, the Community or Bulgaria, as the case may be, shall supply the Association Council with all relevant information, with a view to seeking a solution acceptable to the two Parties. In the selection of measures, priority must be given to those which least disturb the functioning of this Agreement. The safeguard measures shall be notified immediately to the Association Council and shall be the subject of periodic consulations within that body, particularly with a view to establishing a timetable for their abolitions as soon as circumstances permit. 3. For the implementation of paragraph 2, the following provisions shall apply: (a) As regards Article 31, the difficulties arising from the situation referred to in that Article shall be referred for examination to the Association Council, which may take any decision needed to put an end to such difficulties. If the Association Council or the exporting Party has not taken a decision putting an end to the difficulties or no other satisfactory solution has been reached within 30 days of the matter being referred, the importing Party may adopt the appropriate measures to remedy the problem. These measures must not exceed the scope of what is necessary to remedy the difficulties which have arisen. (b) As regards Article 30, the Association Council shall be informed of the dumping case as soon as the authorities of the importing Party have initiated an investigation. When no end has been put to the dumping or no other satisfactory solution has been reached within 30 days of the matter being referred to the Association Council, the importing Party may adopt the appropriate measures. (c) As regards Article 32, the difficulties arising from the situations referred to in that Article shall be referred for examination to the Association Council. The Association Council may take any decision needed to put an end to the difficulties. If it has not taken such a decision within 30 days of the matter being referred to it, the exporting Party may apply appropriate measures on the exportation of the product concerned. (d) Where exceptional circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Community or Bulgaria, whichever is concerned, may, in the situations specified in Articles 30, 31 and 32, apply forthwith the precautionary and provisional measures strictly necessary to deal with the situation, and the Association Council will be informed immediately. Article 35 Protocol 4 lays down rules of origin for the application of tariff preferences foreseen in this Agreement. Article 36 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 the exhaustible natural resources; 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 37 Protocol 5 lays down the specific provisions to apply to trade between Bulgaria of the one part and Spain and Portugal of the other part. TITLE IV MOVEMENT OF WORKERS, ESTABLISHMENT, SUPPLY OF SERVICES CHAPTER I Movement of workers Article 38 1. Subject to the conditions and modalities applicable in each Member State: - the treatment accorded to workers of Bulgarian nationality, legally employed in the territory of a Member State shall be free from any discrimination based on nationality, as regards working conditions, remuneration or dismissal, as compared to its own nationals, - the legally resident spouse and children of a worker legally employed in the territory of a Member State, with the exception of seasonal workers and of workers coming under bilateral Agreements in the sense of Article 42, unless otherwise provided by such Agreements, shall have access to the labour market of that Member State, during the period of that worker's authorized stay of employment. 2. Bulgaria shall, subject to the conditions and modalities applicable in that country, accord the treatment referred to in paragraph 1 to workers who are nationals of a Member State and are legally employed in its territory as well as to their spouse and children who are legally resident in the said territory. Article 39 1. With a view to coordinating social security systems for workers of Bulgarian nationality, legally employed in the territory of a Member State and for the members of their family, legally resident there, and subject to the conditions and modalities applicable in each Member State, - all periods of insurance, employment or residence completed by such workers in the various Member States shall be added together for the purpose of pensions and annuities in respect of old age, invalidity and death and for the purpose of medical care for such workers and such family members, - any pensions or annuities in respect of old age, death, industrial accident or occupational disease, or of invalidity resulting therefrom, with the exception of non-contributory benefits, shall be freely transferable at the rate applied by virtue of the law of the debtor Member State or States, - the workers in question shall receive family allowances for the members of their family as defined above. 2. Bulgaria shall accord to workers who are nationals of a Member State and legally employed in its territory, and to members of their families legally resident there, treatment similar to that specified in the second and third indents of paragraph 1. Article 40 1. The Association Council shall by decision adopt the appropriate provisions to implement the objective set out in Article 39. 2. The Association Council shall by decision adopt detailed rules for administrative cooperation providing the necessary management and control guarantees for the application of the provisions referred to in paragraph 1. Article 41 The provisions adopted by the Association Council in accordance with Article 40 shall not affect any rights or obligations arising from bilateral Agreements linking Bulgaria and the Member States where those Agreements provide for more favourable treatment of nationals of Bulgaria or of the Member States. Article 42 1. Taking into account the labour market situation in the Member State, subject to its legislation and to the respect of rules in force in that Member State in the area of mobility of workers, - the existing facilities for access to employment for Bulgarian workers accorded by Member States under bilateral Agreements ought to be preserved and if possible improved, - the other Member States shall consider favourably the possibility of concluding similar Agreements. 2. The Association Council shall examine granting other improvements including facilities of access for professional training, in conformity with rules and procedures in force in the Member States, and taking account of the labour market situation in the Member States and in the Community. Article 43 During the second stage referred to in Article 7, or earlier if so decided, the Association Council shall examine further ways of improving the movement of workers, taking into account inter alia the social and economic situation in Bulgaria and the employment situation in the Community. The Association Council shall make recommendations to such end. Article 44 In the interest of facilitating the restructuring of labour resources resulting from the economic restructuring in Bulgaria, the Community shall provide technical assistance for the establishment of a suitable social security system in Bulgaria as set out in Article 89. CHAPTER II Establishment Article 45 1. Each Member State shall grant, from entry into force of the Agreement, for the establishment of Bulgarian companies and nationals and for the operation of Bulgarian companies and nationals established in its territory, a treatment no less favourable than that accorded to its own companies and nationals, save for matters referred to in Annex XVa. 2. Bulgaria shall (i) grant, from entry into force of the Agreement, for the establishment of Community companies and nationals a treatment no less favourable than that accorded to its own companies and nationals, save for the sectors and matters referred to in Annexes XVb and XVc, where such treatment shall be granted at the latest by the end of the transitional period referred to in Article 7; (ii) grant, from entry into force of the Agreement, in the operation of Community companies and nationals established in Bulgaria a treatment no less favourable than that accorded to its own companies and nationals. 3. The provisions contained in paragraph 2 of this Article shall not apply to the matters listed in Annex XVd. 4. Bulgaria shall, during the transitional period referred to in paragraph 2 (i), not adopt any new regulations or measures which introduce discrimination as regards the establishment of Community companies and nationals in its territory in comparison to its own companies and nationals. 5. For the purposes of this Agreement (a) 'establishment' shall mean (i) as regards nationals, the right to take up and pursue economic activities as self-employed persons and to set up and manage undertakings, in particular companies, which they effectively control. Self-employment and business undertakings by nationals shall not extend to seeking or taking employment in the labour market or confer a right of access to the labour market of the other Party. The provisions of this chapter do not apply to those who are not exclusively self-employed; (ii) as regards companies, the right to take up and pursue economic activities by means of the setting up and management of subsidiaries, branches and agencies; (b) 'subsidiary' of a company shall mean a company which is effectively controlled by the first company; (c) 'economic activities' shall in particular include activities of an industrial character, activities of a commercial character, activities of craftsmen and activities of the professions. 6. The Association Council shall, during the transitional period referred to in paragraph 2 (i), examine regularly the possibility of accelerating the granting of national treatment in the sectors referred to in Annexes XVb and XVc and the inclusion of areas or matters listed in Annex XVd within the scope of application of the provisions of paragraph 2 (i) of this Article. Amendments may be made to these Annexes by decision of the Association Council. Following the expiration of the transitional period referred to in paragraph 2 (i), the Association Council may exceptionally, upon request by Bulgaria, and if the necessity arises, decide to prolong the duration of exclusion of certain areas or matters listed in Annexes XVb and XVc for a limited period of time. Article 46 1. Subject to the provisions of Article 45 with the exception of financial services described in Annex XVb, each Party may regulate the establishment and operation of companies and nationals on its territory, in so far as these regulations do not discriminate against companies and nationals of the other Party in comparison to its own companies and nationals. 2. In respect of financial services, described in Annex XVb, this Agreement does not prejudice the right of the Parties to adopt measures necessry for the conduct of the Party's monetary policy, or for prudential grounds in order to ensure the protection of investors, depositors, policy holders, or persons to whom a fiduciary duty is owed, or to ensure the integrity and stability of the financial system. These measures shall not discriminate on grounds of nationality against companies and nationals of the other Party in comparison to its own companies and nationals. Article 47 In order to make it easier for Community nationals and Bulgarian nationals to take up and pursue regulated professional activities in Bulgaria and the Community respectively, the Association Council shall examine which steps are necessary to be taken to provide for the mutual recognition of qualifications. It may take all necessary measures to that end. Article 48 The provisions of Article 46 do not preclude the application by a Party of particular rules concerning the establishment and operation in its territory of branches and agencies of companies of another Party not incorporated in the territory of the first Party, which are justified by legal or technical differences between such branches and agencies as compared to branches and agencies of companies incorporated in its territory, or, as regards financial services, for prudential reasons. The difference in treatment shall not go beyond what is strictly necessary as a result of such legal or technical differences, or, as regards financial services, described in Annex XVb, for prudential reasons. Article 49 1. A 'Community company' and a 'Bulgarian company' respectively shall, for the purpose of this Agreement, mean a company or a firm set up in accordance with the laws of a Member State or of Bulgaria respectively and having its registered office, central administration, or principle place of business in the territory of the Community or Bulgaria respectively. However, should the company or firm, set up in accordance with the laws of a Member State or of Bulgaria respectively, have only its registered office in the territory of the Community or Bulgaria respectively, its operations must possess a real and continuous link with the economy of one of the Member States or Bulgaria respectively. 2. With regard to international maritime transport, a national or a shipping company of the Member States or of Bulgaria, respectively established outside the Community or Bulgaria respectively and controlled by nationals of a Member State, or Bulgarian nationals respectively, shall also be beneficiaries of the provisions of this chapter and Chapter III of this title, if their vessels are registered in that Member State or in Bulgaria respectively in accordance with their respective legislations. 3. A 'Community national' and a 'Bulgarian national' respectively shall, for the purpose of this Agreement, mean a natural person who is a national of one of the Member States or of Bulgaria respectively. 4. The provisions of this Agreement shall not prejudice the application by each Party of any measure necessary to prevent the circumvention of its measures concerning third country access to its market, through the provisions of this Agreement. Article 50 For the purpose of this Agreement 'financial services' shall mean those activities described in Annex XVb. The Association Council may extend or modify the scope of Annex XVb. Article 51 During the first five years following the date of entry into force of this Agreement, or for the sectors referred to in Annex XVb and XVc during the transitional period referred to in Article 7, Bulgaria may introduce measures which derogate from the provisions of this chapter as regards the establishment of Community companies and nationals if certain industries: - are undergoing restructuring, or - are facing serious difficulties, particularly where these entail serious social problems in Bulgaria, or - face the elimination or a drastic reduction of the total market share held by Bulgarian companies or nationals in a given sector or industry in Bulgaria, or - are newly emerging industries in Bulgaria. Such measures: (i) shall cease to apply at the latest two years after the expiraton of the fifth year following the date of entry into force of this Agreement; and (ii) shall be reasonable and necessary in order to remedy the situation; and (iii) shall only relate to establishments in Bulgaria to be created after the entry into force of such measures and shall not introduce discrimination concerning the operations of Community companies or nationals already established in Bulgaria at the time of introduction of a given measure compared to Bulgarian companies or nationals. The Association Council may exceptionally, upon request by Bulgaria, and if the necessity arises, decide to prolong the period referred to in indent (i) for a given sector for a limited period of time not exceeding the duration of the transitional period referred to in Article 7. While devising and applying such measures, Bulgaria shall grant whenever possible to Community companies and nationals a preferential treatment, and in no case a treatment less favourable than that accorded to companies or nationals from any third country. Prior to the introduction of these measures, Bulgaria shall consult the Association Council and shall not put them into effect before a one month period following the notification to the Association Council of the concrete measures to be introduced by Bulgaria, except where the threat of irreparable damage requires the taking of urgent measures in which case Bulgaria shall consult the Association Council immediately after their introduction. Upon the expiration of the fifth year following the entry into force of the Agreement, or for the sectors referred to in Annexes XVb and XVc upon expiration of the transitional period referred to in Article 7, Bulgaria may introduce such measures only with the authorization of the Association Council and under conditions determined by the latter. Article 52 1. The provisions of this chapter shall not apply to air transport services, inland-waterways transport services and maritime cabotage transport services. 2. The Association Council may make recommendations for improving establishment and operations in the areas covered by paragraph 1. Article 53 1. Notwithstanding the provisions of Chapter I of this title, the beneficiaries of the rights of establishment granted by Bulgaria and the Community respectively shall be entitled to employ, or have employed by one of their subsidiaries, in accordance with the legislation in force in the host country of establishment, in the territory of Bulgaria and the Community respectively, employees who are nationals of Community Member States and Bulgaria respectively, provided that such employees are key personnel as defined in paragraph 2, and that they are employed exclusively by such beneficiaries or their subsidiaries. The residence and work permits of such employees shall only cover the period of such employment. 2. Key personnel of the beneficiaries of the rights of establishment, herein referred to as 'organization', are: (a) senior employees of an organization who primarily direct the management of the organization, receiving general supervision or direction principally from the board of directors or shareholders of the business, including: - directing the organization or a department or sub-division of the organization, - supervising and controlling the work of other supervisory, professional or managerial employees, - having the authority personally to engage and dismiss or recommend engaging, dismissing or other personnel actions. (b) persons employed by an organization who possess high or uncommon: - qualifications referring to a type of work or trade requiring specific technical knowledge, - knowledge essential to the organization's service, research equipment, techniques or management. These may include, but are not limited to, members of accredited professions. Each such employee must have been employed by the organization concerned for at least one year preceding the detachment by the organization. Article 54 1. The provisions of this chapter shall be applied subject to limitations justified on grounds of public policy, public security or public health. 2. They shall not apply to activities which in the territory of each party are connected, even occasionally, with the exercise of official authority. Article 55 Companies which are controlled and exclusively owned jointly by Bulgarian companies or nationals and Community companies or nationals shall also be beneficiaries of the provisions of this chapter and Chapter III of this title. CHAPTER III Supply of services between the Com …