21997A1218(02)

21997A1218(02) 21997A1218(02) Cooperation Agreement between the European Community and the former Yugoslav Republic of Macedonia - Protocol 1 on additional trade arrangements for certain iron and steel product - Protocol 2 on the definition of the concept of 'originating products' and methods of administrative cooperation - Protocol 3 on financial cooperation - Joint Declarations - Declarations of Intent by the Contracting Parties - Declarations by the Community Official Journal L 348 , 18/12/1997 P. 0002 - 0167  Dates: of document:   29/04/1997 of effect:   01/01/1998; Entry into force See Art 49 ; See OJ L 348/97 P. 168 end of validity:   99/99/9999 Authentic language: The official languages ; German ; Danish ; French ; Italian ; Dutch ; Greek ; English ; Spanish ; Portuguese ; Swedish ; Finnish ; Other than Community language ; Macedonian Author: Macedonia ; European Community ; Former Yugoslav Republic of Macedonia Subject matter: External relations ; Commercial policy ; Provisions under Article 235 EEC Directory code: 11401040 EUROVOC descriptor: customs regulations ; economic cooperation ; import policy ; industrial cooperation ; EC cooperation agreement ; Former Yugoslav Republic of Macedonia Legal basis: 192E113................... Adoption 192E228-P2F2.............. Adoption 192E228-P3L2.............. Adoption 192E235................... Adoption Instruments cited: 389R3906.................. 294A1223(01).............. 294A1223(09).............. 394R0517.................. Amended by: Adopted by.... 397D0831.......... Suspended by.. 200A1209(01)...... Suspension ANN A. from 01/12/2000 Suspended by.. 200A1209(01)...... Suspension ANN B. from 01/12/2000 Suspended by.. 200A1209(01)...... Suspension TIT II. from 01/12/2000 Suspended by.. 200D1209(01)...... Suspension ANN A. from 01/12/2000 Suspended by.. 200D1209(01)...... Suspension ANN B. from 01/12/2000 Suspended by.. 200D1209(01)...... Suspension TIT II. from 01/12/2000 Amended by.... 201A0504(01)...... Suspension ART30 from DATEFF Amended by.... 201A0504(01)...... Suspension ART29 from DATEFF Amended by.... 201A0504(01)...... Suspension ART28 from DATEFF Amended by.... 201A0504(01)...... Suspension ART27 from DATEFF Amended by.... 201A0504(01)...... Suspension ART26 from DATEFF Amended by.... 201A0504(01)...... Suspension ART25 from DATEFF Amended by.... 201A0504(01)...... Suspension ART24 from DATEFF Amended by.... 201A0504(01)...... Suspension ART23 from DATEFF Amended by.... 201A0504(01)...... Suspension ART32 from DATEFF Amended by.... 201A0504(01)...... Suspension ART31 from DATEFF Amended by.... 201A0504(01)...... Suspension ART22 from DATEFF Amended by.... 201A0504(01)...... Suspension ART18 from DATEFF Amended by.... 201A0504(01)...... Suspension ART14 from DATEFF Amended by.... 201A0504(01)...... Suspension ART15 from DATEFF Amended by.... 201A0504(01)...... Suspension ART17 from DATEFF Amended by.... 201A0504(01)...... Suspension ART16 from DATEFF Amended by.... 201A0504(01)...... Suspension ART13 from DATEFF Amended by.... 201A0504(01)...... Suspension ART19 from DATEFF Amended by.... 201A0504(01)...... Suspension ART21 from DATEFF Amended by.... 201A0504(01)...... Suspension ART20 from DATEFF Replaced by... 204A0320(03)...... from 01/04/2004 COOPERATION AGREEMENT between the European Community and the former Yugoslav Republic of Macedonia THE EUROPEAN COMMUNITY, hereinafter referred as 'the Community`, of the one part, and THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA, of the other part, RESOLVED to strengthen economic cooperation between the Community and the former Yugoslav Republic of Macedonia; RESOLVED to promote the development and diversification of economic, financial and trade cooperation in order to foster a better balance and an improvement in the structure of their trade and expand its volume and to improve the welfare of their populations; RESOLVED to provide a sounder basis for cooperation in conformity with their international obligations; RESOLVED to contribute to regional stability and to open and cooperative relations among countries of South-Eastern Europe, taking into consideration the specific situation of the former Yugoslav Republic of Macedonia; CONSCIOUS that the Interim Accord of 13 September 1995 contributes to regional stability and favours cooperative relations between Greece and the former Yugoslav Republic of Macedonia; AWARE that the former Yugoslav Republic of Macedonia has taken the initiative leading to UN General Assembly Resolution No 48/84B of 16 December 1993 on the development of good neighbourly relations among Balkan States; CONSCIOUS of the need to bring about harmonious economic and trade relations between the Community and the former Yugoslav Republic of Macedonia; AWARE of the importance of giving full effect to all the provisions and principles of the Organization on Security and Cooperation in Europe (OSCE) process, and in particular those set out in the Helsinki Final Act, the concluding documents of the Madrid, Vienna and Copenhagen meetings and the Charter of Paris for a New Europe, particularly with regard to the rule of law, democracy and human rights, as well as those of the Bonn Conference on Economic Cooperation; CONSCIOUS that the respect for democratic principles and basic human rights, as proclaimed in the Universal Declaration of Human Rights, underpins the internal and international policies of the Community and of the former Yugoslav Republic of Macedonia and constitutes an essential element of this Agreement; CONSCIOUS that the same applies to the principles of a market economy as reflected in the document of the Bonn Conference on Economic Cooperation; RECOGNIZING the importance of social development which should go hand in hand with any economic development; RECOGNIZING the importance of guaranteeing the rights of ethnic and national groups and minorities, in accordance with the undertakings made within the Organization on Security and Cooperation in Europe (OSCE); AWARE of the importance of strengthening the democratic institutions and of supporting the process of economic reform in the former Yugoslav Republic of Macedonia, bearing in mind the overall situation in the region and the particular economic difficulties of the former Yugoslav Republic of Macedonia; DESIROUS of establishing regular political dialogue on bilateral and international issues of mutual interest with particular emphasis on the creation of conditions facilitating the progressive rapprochement of the former Yugoslav Republic of Macedonia with the Community and favourable to cooperation and good-neighbourly relations in the region; CONSCIOUS that the readiness of the former Yugoslav Republic of Macedonia to enter into such cooperation and relations with the other countries in the region constitutes an important factor in the development of the relations and cooperation between the Community and the former Yugoslav Republic of Macedonia; CONSCIOUS that this Agreement constitutes a first step of contractual relations between the Community and the former Yugoslav Republic of Macedonia and that the Contracting Parties desire to strengthen their contractual relations as soon as possible, taking full account of the aspirations of the former Yugoslav Republic of Macedonia for an advanced relationship with the European Union, HAVE DECIDED to conclude this Agreement and to this end have designated as their Plenipotentiaries: THE EUROPEAN COMMUNITY: THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA: WHO, having exchanged their full powers, found in good and due form, HAVE AGREED AS FOLLOWS: Article 1 The objective of this Agreement between the Community and the former Yugoslav Republic of Macedonia is to promote comprehensive cooperation between the Contracting Parties with a view to contributing to the economic development of the former Yugoslav Republic of Macedonia, in particular to the development of a market economy, and to deepening relations between the Contracting Parties. The Community's cooperation with and assistance to the former Yugoslav Republic of Macedonia shall also contribute to good neighbourly relations and the development of regional cooperation and trade. To these ends, provisions and measures will be adopted and implemented in the fields of economic, technical and financial cooperation and trade. The readiness of the former Yugoslav Republic of Macedonia to enter into cooperative and good neighbourly relations with the other countries of the region including the promotion of economic cooperation and trade constitutes an important factor in the development of the relations and cooperation between the Community and the former Yugoslav Republic of Macedonia as foreseen in this Agreement. Respect for the democratic principles and human Rights established by the Universal Declaration of Human rights, the Helsinki Final Act and the Charter of Paris for a New Europe underpins the internal and international policies of the Community and of the former Yugoslav Republic of Macedonia, and constitutes an essential element of this Agreement. The same applies to the principles of a market economy as reflected in the document of the Bonn Conference on Economic Cooperation. The Contracting Parties acknowledge the importance of social development which should go hand in hand with any economic development. In this context the Contracting Parties give particular priority to the respect for basic social rights. TITLE I ECONOMIC, TECHNICAL AND FINANCIAL COOPERATION Article 2 The Community and the former Yugoslav Republic of Macedonia shall cooperate with the aim of contributing to the development of the former Yugoslav Republic of Macedonia by efforts complementary to those made by the former Yugoslav Republic of Macedonia itself and of strengthening existing economic links between the former Yugoslav Republic of Macedonia and the Community on as broad a basis as possible, for the mutual benefit of the Contracting Parties. Particular weight shall be attached to activities and cooperation of interregional or trans-European interest. Article 3 In order to achieve the cooperation referred to in Article 2, account shall be taken, in particular, of the development objectives and priorities of the former Yugoslav Republic of Macedonia. Article 4 1. The purpose of cooperation between the Community and the former Yugoslav Republic of Macedonia in the field of industry shall be to promote in particular: - Community involvement in the efforts made by the former Yugoslav Republic of Macedonia to modernize and restructure its industry with a view to facilitating the transition to a market economy and to foster economic cooperation with the other countries in the region, - market surveys and trade promotion by both Contracting Parties on their respective markets and on the markets of third countries, - the transfer and development of technology and know-how in the former Yugoslav Republic of Macedonia, - fostering of cooperation in long-term production between economic operators of the Contracting Parties in order to establish more stable and balanced links between their respective economies, - efforts to find appropriate ways and means of removing any barriers to trade on both sides which are likely to impede access to either market, - the putting up for tender of goods and services contracts, - the organization of contacts and meetings between industrial policy-makers, promoters and economic operators in order to encourage the establishment of new relations in the field of industry, in accordance with the objectives of this Agreement, - the exchange of available information on short- and medium-term prospects and forecasts for production, consumption and trade. 2. The Contracting Parties shall encourage the development and strengthening of craft industries and small and medium-sized enterprises (SMEs) and their organizations in the former Yugoslav Republic of Macedonia, as well as cooperation between craft industries and SMEs in the Community and the former Yugoslav Republic of Macedonia. To this end they shall encourage the exchange of information and the transfer of technology, as well as cooperation between enterprises, in particular by establishing appropriate links with Community operators (such as BRE, BC-Net, Euro Info Centre network, etc.) and by organizing direct business contacts between enterprises (such as Interprise events and/or participation at Europartenariats). 3. In line with the principles of a market economy and of the Energy Charter Treaty, the aim of cooperation in the field of energy between the Community and the former Yugoslav Republic of Macedonia shall be to encourage in particular the facilitation of energy transit, the consideration of the possibility of the interconnection of energy networks and the participation of the Contracting Parties' economic operators in research, production and processing programmes in connection with the energy resources of the former Yugoslav Republic of Macedonia and any other projects of mutual interest. 4. The Contracting Parties shall cooperate with a view to promoting the development of standards in mining and modernizing existing facilities. Article 5 The Contracting Parties shall cooperate in the field of research and technological development in accordance with the existing instruments. Article 6 1. The main aims of cooperation in agriculture between the Community and the former Yugoslav Republic of Macedonia shall be: - to encourage scientific and technical cooperation on projects of mutual interest, including projects in third countries, - in particular, to promote mutually advantageous investment projects and in that connection encourage efforts to achieve complementarity. 2. To this end the Community and the former Yugoslav Republic of Macedonia shall: - step up the exchange of information on their agricultural policy guidelines, including short- and medium-term production, consumption and trade forecasts, - facilitate and encourage the study of practical schemes for cooperation in the mutual interest of both Contracting Parties, - encourage the improvement and broadening of contacts between economic operators. Article 7 1. In the field of transport, the Community and the former Yugoslav Republic of Macedonia shall examine the scope: - for improving and developing international transport services including combined transport, notably in order to achieve complementarity taking into account the regional context, and - for implementing specific schemes of mutual interest in this field. 2. Cooperation shall also aim to encourage the improvement and development of infrastructure, to the mutual benefit of the Contracting Parties. To this end the Community and the former Yugoslav Republic of Macedonia shall exchange information on projects of mutual interest to build trunk roads, and encourage cooperation in their execution. 3. In addition, the Community and the former Yugoslav Republic of Macedonia shall hold exchanges of views and information on the development of their respective transport policies. Article 8 The Community and the former Yugoslav Republic of Macedonia shall encourage exchanges of information on tourism and participation in joint studies on possible ways of developing this sector in a balanced and sustainable manner, and shall promote contacts between their competent bodies and tourist trade associations, with a view to increasing tourist flows. Article 9 With the aim of improving health, the quality and circumstances of life, the environment and living conditions of both Contracting Parties, pooling technical know-how on environmental matters and encouraging cooperation on environmental problems, the Community and the former Yugoslav Republic of Macedonia shall exchange information on developments in their respective policies with particular emphasis on sustainable development and shall encourage the joint implementation of specific schemes. Article 10 1. In the context of financial cooperation, the Community and the former Yugoslav Republic of Macedonia shall exchange information on and undertake joint analyses of their medium-term economic policies, balance-of-payments trends and the policies which determine them, and capital market trends in European centres, with the aim of promoting the activities of economic operators. They shall exchange information in the Cooperation Council set up in Article 33 on general conditions which may influence capital flows earmarked for financing investment projects in various sectors of mutual interest. 2. The Contracting Parties agree on the necessity of making every effort and cooperating in order to prevent the use of their financial systems for laundering of proceeds from criminal activities in general and drug offences in particular. 3. The Community shall participate in the financing of capital projects of mutual interest which take account of the objectives of this Agreement, under the conditions laid down in Protocol 3. 4. Financial assistance will be made available under the PHARE programme in accordance with Council Regulation (EEC) No 3906/89, as amended, on a multiannual indicative basis including projects promoting regional and other forms of cooperation. Article 11 1. Within the limits of their powers, the Contracting Parties shall make efforts to encourage and promote cooperation in the following fields: - establishment and supply of services, including financial services, - payment and movement of capital, - information, - development of human resources, education and training, social affairs and public health, - statistics and customs, - telecommunications, - standardization and certification, - investment promotion and protection, - public procurement. 2. The former Yugoslav Republic of Macedonia shall endeavour to ensure that its legislation would be gradually made compatible with that of the Community. The Community shall provide appropriate technical assistance for this purpose. 3. The administrative authorities of the Contracting Parties shall assist each other in the customs field, in accordance with the provisions of Protocol 2. Article 12 1. The Cooperation Council shall periodically define the general guidelines of cooperation for the purpose of attaining the aims set out in this Agreement. 2. The Cooperation Council shall be responsible for seeking ways and means of establishing cooperation in the areas defined by this Agreement. TITLE II TRADE Article 13 1. In the field of trade, the object of this Agreement is to promote trade between the Contracting Parties, taking account of their respective levels of development and of the need to ensure a better balance in their trade, with a view to improving the conditions for access for products of the former Yugoslav Republic of Macedonia to the Community market. 2. The Community shall provide technical assistance for the envisaged accession of the former Yugoslav Republic of Macedonia to the World Trade Organization (WTO). Article 14 Subject to the special provisions laid down or envisaged in respect of certain products in this Title and in Protocol 2, products originating in the former Yugoslav Republic of Macedonia other than those listed in Annex II to the Treaty establishing the European Community and in Annex A to this Agreement shall be imported into the Community free of quantitative restrictions and measures having equivalent effect, and of customs duties and charges having equivalent effect. Article 15 1. Imports into the Community of the products originating in the former Yugoslav Republic of Macedonia listed in Annex C shall be subject to annual ceilings, the ceilings fixed for the year of entry into force of this Agreement being indicated against each product. 2. Imports into the Community of the products listed in Annexes D and E shall be subject to annual tariff quotas, ceilings or reference quantities, the quotas, ceilings and reference quantities fixed for the year of entry into force of this Agreement being indicated against each product. 3. Once a ceiling set for imports of a product is reached, the customs duties generally applied in respect of third countries may be reintroduced in respect of imports of the product in question until the end of the calendar year. 4. Once a tariff quota set for imports of a product is reached, the customs duties generally applied in respect of third countries will be reintroduced in respect of imports of the product in question until the end of the calendar year. 5. Once imports of a product subject to reference quantity exceeded that reference quantity, a decision may be taken by the Community in accordance with the appropriate Community procedure to make it subject to a ceiling equal to the reference quantity, having regard to the Community annual balance of trade in the product. 6. If, during two consecutive years, imports of a product listed in Annex C have been less than 80 % of the amount laid down, the Community may suspend the ceiling in question. 7. As from the second year following the entry into force of the Agreement, the amounts of the ceilings given in Annex C shall be increased annually by 5 % except that the Community may extend for a period of one year the ceiling or ceilings set for the preceding year. 8. Additional trade arrangements for certain iron and steel products are laid down in Protocol 1. 9. Pending the conclusion of a separate agreement setting out specific trade arrangements, the regime applicable to trade in textile products (Chapters 50 to 63 of the combined nomenclature) shall be the one defined by Council Regulation (EC) No 517/94. 10. The trade arrangements to apply to wine products will be defined in a separate wine and spirit agreement. Article 16 Imports into the Community of the products listed in Annex B shall be subject to the tariff arrangements and rules indicated for each of them in that Annex. Article 17 1. For certain products which it considers to be sensitive, the Community reserves the right to call upon the Cooperation Council to determine such special conditions for access to its market as may prove necessary. The Cooperation Council shall determine the conditions in question within a period not exceeding three months from the date of notification. Failing a decision by the Cooperation Council within that period, the Community may take the necessary measures. However, such measures shall be of the same kind as those provided for in Article 15. 2. For the purposes of implementing paragraph 1, the Contracting Parties shall hold periodic exchanges of information in the Cooperation Council before determining, if appropriate, special conditions for access by the products concerned to the markets of each of the Contracting Parties. The Contracting Parties shall notably exchange information on trade flows and medium- and long-term production and export forecasts. 3. The Cooperation Council shall examine periodically the measures taken under paragraph 1 to ascertain whether they are compatible with the objectives of this Agreement. Article 18 The products referred to in this Agreement originating in the former Yugoslav Republic of Macedonia may not be given more favourable treatment when imported into the Community than that given by the Member States among themselves. Article 19 1. In the field of trade, the former Yugoslav Republic of Macedonia shall grant the Community treatment no less favourable than most-favoured-nation treatment. However, in order to promote regional exchanges the former Yugoslav Republic of Macedonia will be entitled during a transitional period expiring five years after the entry into force of this Agreement to grant preferential treatment to imports originating in other States which emerged from former Yugoslavia or in other adjacent countries. The Cooperation Council may decide a prolongation of this period. 2. Without prejudice to Article 20 (2), the former Yugoslav Republic of Macedonia will refrain, as from this Agreement's entry into force, from imposing on exports to the Community new customs duties and charges having equivalent effect or new quantitative restrictions and measures having equivalent effect. Article 20 1. The Contracting Parties shall inform each other when this Agreement is signed of the provisions relating to the trade arrangements they apply. 2. Subject to Article 19 (1), the former Yugoslav Republic of Macedonia shall be entitled to introduce into its trade arrangements with the Community new customs duties and charges having equivalent effect or new quantitative restrictions and measures having equivalent effect, and to increase the duties and charges or the quantitative restrictions and measures having equivalent effect applied to products originating in or intended for the Community, insofar as such measures are necessitated by the needs of the former Yugoslav Republic of Macedonia for infant industries and restructuring. In accordance with the objectives of this Agreement, the measures selected by the former Yugoslav Republic of Macedonia shall be those which least harm the trade and economic interests of the Community. 3. The former Yugoslav Republic of Macedonia shall inform the Community of the envisaged measures so that appropriate discussions may be held on them prior to their introduction. 4. The Cooperation Council shall examine periodically the measures taken by the former Yugoslav Republic of Macedonia under paragraph 2. Article 21 The concept of originating products for the purposes of implementing Title II and the methods of administrative cooperation relating thereto are laid down in Protocol 2. Article 22 In the event of modifications to the nomenclature of the customs tariffs of the Contracting Parties affecting products referred to in this Agreement, the Cooperation Council may adapt the tariff nomenclature of these products to conform with such modifications, provided the real advantages resulting from this Agreement are maintained. Article 23 The Contracting Parties shall refrain from any internal tax establishing, whether directly or indirectly, discrimination between the products of one Contracting Party and like products originating in the territory of the other Contracting Party. Products exported to the territory of one of the Contracting Parties may not benefit from repayment of internal indirect taxation in excess of the amount of indirect taxation imposed upon them. Article 24 The Contracting Parties undertake to authorize in freely convertible currency, any payments on the current account balance of payments between residents of the Community and of the former Yugoslav Republic of Macedonia connected with the movements of goods made in accordance with the provisions of this Agreement. Article 25 The former Yugoslav Republic of Macedonia shall take measures guaranteeing effective and appropriate protection of intellectual, industrial and commercial property, including effective means for enforcing such rights, at a level similar to that which exists in the Community, and shall accede to international conventions on intellectual, industrial and commercial property. Article 26 The 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 national treasures possessing artistic, historic or archaeological value; the protection of intellectual, industrial and commercial property. Such prohibitions or restrictions must not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Contracting Parties. Article 27 1. If one of the Contracting Parties finds that dumping is taking place in trade with the other Contracting Party, it may, pursuant to Article VI of the General Agreement on Tariffs and Trade (GATT 1994) and the Agreement on implementation of Article VI of GATT 1994, take appropriate measures against this practice in accordance with the procedures laid down in Article 30. 2. In the event of measures being taken against subsidies, the Contracting Parties undertake to observe the provisions of the Agreement on subsidies and countervailing duties annexed to the WTO Agreement. Article 28 Where any product is being imported into the territory of one of the Contracting Parties in such increased quantities or under such conditions as to cause or threaten to cause injury to domestic producers of like or directly competitive products, the Contracting Party concerned may take the necessary safeguard measures under the conditions and in accordance with the procedures laid down in Article 30. Article 29 In the event of a Contracting Party subjecting imports of products liable to give rise to the difficulties referred to in Article 28 to an administrative procedure aimed at providing rapid information on the trend of trade flows, it shall inform the other Contracting Party. Article 30 1. With regard to Article 27 (1), the Cooperation Council must be informed of a case of dumping as soon as the authorities of the importing Contracting Party have started the investigation. If the dumping has not ceased or if no other satisfactory solution has been found within 30 days following notification of the matter to the Cooperation Council, the importing Contracting Party may adopt appropriate measures. 2. In the cases specified in Article 28, before taking the measures provided for therein or, in cases to which paragraph 3 applies, as soon as possible, the Contracting Party in question shall supply the Cooperation Council with all relevant information required for a thorough examination of the situation, with a view to seeking a solution acceptable to the Contracting Parties. Consultations shall take place in the Cooperation Council before the Contracting Party concerned takes the appropriate measures, should the other Contracting Party so request. 3. Where exceptional circumstances require immediate action making prior examination impossible, the Contracting Party concerned may, in the situations specified in Articles 27 and 28, apply forthwith such precautionary measures as are strictly necessary to remedy the situation. 4. In the selection of measures, priority must be given to those which least disturb the functioning of the Agreement. Such measures must not exceed the limits of what is strictly necessary to counteract the difficulties which have arisen. The safeguard measures shall be notified immediately to the Cooperation Council, which shall hold periodic consultations on them, particularly with a view to their abolition as soon as circumstances permit. Article 31 In the event of a sudden and very substantial worsening of a trade imbalance which is liable to jeopardize the smooth functioning of this Agreement, the Contracting Parties shall hold special consultations within the Cooperation Council to examine the difficulties that have arisen with a view to keeping this Agreement functioning as normally as possible. Article 32 Where one or more Member States of the Community or the former Yugoslav Republic of Macedonia is in serious difficulties or is seriously threatened with difficulties as regards its balance of payments, the Contracting Party concerned may take the necessary safeguard measures. In the selection of measures, priority must be given to those which least disturb the functioning of this Agreement. They shall be notified immediately to the other Contracting Party and shall be the subject of periodic consultations within the Cooperation Council, particularly with a view to their abolition as soon as circumstances permit. TITLE III GENERAL AND FINAL PROVISIONS Article 33 1. A Cooperation Council is hereby established. It shall have the power, for the purpose of attaining the objectives set out in this Agreement, to take decisions in the cases provided for in this Agreement. The decisions taken shall be binding on the Contracting Parties, which shall take such measures as are required to implement them. 2. The Cooperation Council may also formulate any resolutions, recommendations or opinions which it considers desirable for the attainment of the common objectives and the smooth functioning of this Agreement. 3. The Cooperation Council shall adopt its own rules of procedure. Article 34 1. The Cooperation Council shall be composed of representatives of the Community, on the one hand, and of representatives of the former Yugoslav Republic of Macedonia, on the other. The European Investment Bank shall participate in the work of the Cooperation Council where matters falling within its competence arise. 2. Members of the Cooperation Council may be represented as laid down in its rules of procedure. 3. The Cooperation Council shall act by mutual agreement between the Community, on the one hand, and the former Yugoslav Republic of Macedonia, on the other. Article 35 1. The office of Chairman of the Cooperation Council shall be held alternately by each of the Contracting Parties in accordance with the conditions to be laid down in the rules of procedure. 2. Meetings of the Cooperation Council shall be called once a year by its Chairman. The Cooperation Council shall hold whatever additional meetings may be necessary, at the request of either Contracting Party, as laid down in its rules of procedure. Article 36 1. The Cooperation Council may decide to set up working parties that can assist in carrying out its duties. 2. In its rules of procedure, the Cooperation Council shall determine the composition and duties of such working parties and how they shall function. Article 37 Where, in the course of the exchanges of information provided for in this Agreement, problems arise or seem likely to arise in the general functioning of this Agreement, particularly in the field of trade, consultations shall take place between the Contracting Parties in the Cooperation Council with a view to avoiding market disturbances as far as possible. Article 38 Either Contracting Party shall provide, if so requested by the other Contracting Party, all relevant information on any agreements it concludes containing tariff or trade provisions, and on any amendments to its customs tariff or external trade arrangements. Where such amendments or agreements have a direct and specific impact on the functioning of this Agreement, appropriate consultations shall be held within the Cooperation Council at the request of the other Contracting Party so that the interests of the Contracting Parties may be taken into consideration. Article 39 When the Community concludes an association or cooperation agreement having a direct and specific impact on the functioning of this Agreement, appropriate consultations shall be held within the Cooperation Council so that the Community may take into consideration the interests of the Contracting Parties as defined by this Agreement. In the event of a third country acceding to the Community, appropriate consultations shall be held within the Cooperation Council so that the interests of the Contracting Parties as defined by this Agreement may be taken into consideration. Article 40 1. The Contracting Parties shall take any general or specific measures required to fulfil their obligations under this Agreement. They shall see to it that the objectives of this Agreement are attained. 2. If either Contracting Party considers that the other Contracting Party has failed to fulfil any of its obligations under this Agreement, it may take appropriate measures. Before so doing, except in cases of special urgency, it shall supply the Cooperation Council with all relevant information required for a thorough examination of the situation, with a view to seeking a solution acceptable to the Parties. 3. In the selection of measures, priority shall be given to those which least disturb the functioning of this Agreement. These measures shall be notified immediately to the Cooperation Council, and consultations shall be held on them within it, if the other Contracting Party so requests. Article 41 1. Any dispute which arises between the Contracting Parties concerning the interpretation of this Agreement may be placed before the Cooperation Council. 2. If the Cooperation Council fails to settle the dispute at its next meeting, either Contracting Party may notify the other of the appointment of an arbitrator; the other Party must then appoint a second arbitrator within two months. The Cooperation Council shall appoint a third arbitrator. The decisions of the arbitrators shall be taken by majority vote. Each Party to the dispute must take the measures required for the implementation of the arbitrators' decision. Article 42 In the fields covered by this Agreement: - the arrangements applied by the former Yugoslav Republic of Macedonia in respect of the Community shall not give rise to any discrimination between the Member States and their nationals, whether natural or legal persons, - the arrangements applied by the Community in respect of the former Yugoslav Republic of Macedonia shall not give rise to any discrimination between its nationals, whether natural or legal persons. Article 43 Annexes A, B, C, D, and E and Protocols 1, 2 and 3 shall form an integral part of this Agreement. Article 44 This Agreement is concluded for an unlimited period. Either Contracting Party may denounce this Agreement by notifying the other Contracting Party. This Agreement shall cease to apply six months after the date of such notification. Article 45 The Contracting Parties shall examine, in due course, when conditions are met, the possibility of strengthening their contractual relations, bearing in mind the aspiration of the former Yugoslav Republic of Macedonia for an advanced relationship towards an association with the European Community. Article 46 This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of the former Yugoslav Republic of Macedonia. Article 47 This Agreement is drawn up in duplicate in each of the official languages of the Contracting Parties, each of these texts being equally authentic. Article 48 The Secretary-General of the Council of the European Union shall be the depository of this Agreement. Article 49 This Agreement shall be approved by the Contracting Parties in accordance with their own procedures. This Agreement shall enter into force on the first day of the second month following notification that the procedures referred to in the first paragraph have been completed. ANNEX A concerning the products referred to in Article 14 Notwithstanding the rules for the interpretation of the combined nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application of the CN code and corresponding description taken together. >TABLE POSITION> ANNEX B concerning the tariff arrangements and rules applicable to certain goods resulting from the processing of agricultural products referred to in Article 16 Notwithstanding the rules for the interpretation of the combined nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application of the CN code and corresponding description taken together. >TABLE POSITION> ANNEX C concerning the annual ceilings referred to in Article 15 (1) Notwithstanding the rules for the interpretation of the combined nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes. Where ex codes are indicated, the preferential scheme is to be determined by application of the CN code and corresponding description taken together. >TABLE POSITION> >TABLE POSITION> ANNEX D Products referred to in Article 15 (2) IMPORTS INTO THE COMMUNITY OF THE FOLLOWING PRODUCTS SHALL BENEFIT FROM AN EXEMPTION FROM CUSTOMS DUTY Notwithstanding the rules for the interpretation of the combined nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application of the CN code and corresponding description taken together. >TABLE POSITION> Appendix 1 to Annex D >START OF GRAPHIC> >END OF GRAPHIC> DEFINITION Plum spirit with an alcoholic strength of 40 % vol or more, marketed under the name OSLJIVOVICA, corresponding to the specifications laid down in the Regulation relating to the quality of spirituous beverages, being in force in the Republics and territory referred to in this Regulation. DÉFINITION Eau-de-vie de prunes ayant un titre alcoomłtrique łgal ou supłrieur š 40 % vol, commercialisłe sous la dłnomination SLJIVOVICA correspondant š la spłcification reprise dans la rłglementation relative š la qualitł des boissons alcooliques en vigueur dans les rłpubliques et territoires visłs par le prłsent rųglement. Appendix 2 to Annex D >START OF GRAPHIC> >END OF GRAPHIC> ANNEX E Products referred to in Article 15 (2) IMPORTS INTO THE COMMUNITY OF THE FOLLOWING PRODUCTS SHALL BE SUBJECT TO AN 80 % REDUCTION OF CUSTOMS DUTY Notwithstanding the rules for the interpretation of the combined nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application of the CN code and corresponding description taken together. >TABLE POSITION> PROTOCOL 1 on additional trade arrangements for certain iron and steel products Article 1 This Protocol shall apply to the products listed in Chapters 72 and 73 of the Common Customs Tariff (1) under the following headings: 7204, 7208 to 7212, 7303 to 7306. It shall also apply to other finished steel products which may originate in future in the former Yugoslav Republic of Macedonia. Article 2 1. Imports into the Community of the products originating in the former Yugoslav Republic of Macedonia listed in Annex I to this Protocol shall be subject to annual tariff ceilings, the ceilings fixed for the year of entry into force of the Agreement being indicated against each product. 2. As from the second year following the entry into force of the Agreement, the amounts of the tariff ceilings given in Annex I shall be increased annually by 5 % except that the Community may extend for a period of one year the ceiling or ceilings set for the preceding year. Article 3 1. Quantitative restrictions, customs duties or charges on exports to the Community and any measures having equivalent effect shall be abolished by the former Yugoslav Republic of Macedonia upon entry into force of the Agreement, with the exception of those applying to ferrous waste and scrap under the complete CN heading 7204, which shall be progressively reduced and shall be eliminated at the latest by the end of the second year after the entry into force of the Agreement. 2. The former Yugoslav Republic of Macedonia will liberalize progressively the export restrictions relating to wastes and scrap of ferrous metals. It will therefore permit the export of these products to the Community within the following quantitative limits: 20 000 tonnes in the first year after the entry into force of the Agreement and 35 000 tonnes in the second year after the entry into force of the Agreement. 3. The authorities of the former Yugoslav Republic of Macedonia will notify the Community, within three months of the entry into force of the Agreement, of the internal measures taken to implement fully this progressive liberalization and will send the Community details of the export licences issued and of exports realized at six-monthly intervals. The Contact Group will periodically review the progressive liberalization of the export restrictions and, where appropriate, make recommendations to the Cooperation Council. Article 4 Where any product is being imported into the territory of one of the Contracting Parties in such increased quantities or under such conditions as to cause or threaten to cause injury to domestic producers of like or directly competitive products or serious disturbances to the steel markets of the other Contracting Party, the Contracting Parties shall enter into consultations immediately to find an appropriate solution before the Contracting Party concerned takes the appropriate measures. In the selection of measures, priority must be given to those which least disturb the functioning of the Agreement. Article 5 1. The Contracting Parties recognize the need for an administrative procedure having as its purpose the rapid provision of information on the trend in trade flows in respect of the trade in steel products originating in the former Yugoslav Republic of Macedonia in order to increase transparency and to avoid possible diversions of trade. 2. The Contracting Parties therefore agree to establish a double-checking system, without quantitative limits, for the import into the Community of steel products originating in the former Yugoslav Republic of Macedonia; to exchange statistical information on export and surveillance documents and to hold consultations promptly on any problems arising from the operation of such a system. 3. The details of the double-checking system are contained in Annex II to this Protocol. The continuing need for this system shall be regularly reviewed. The Annex may subsequently be amended or the double-checking system abolished by means of a Decision of the Cooperation Council. Article 6 The Contracting Parties commit themselves to close cooperation in matters relating to the iron and steel industry, particularly in the areas listed in Article 4 of the Agreement. In this context, they agree to ensure transparency through regular exchanges of information on policy in areas such as competition, public aid and restructuring. Article 7 The Parties agree that one of the special bodies established by the Cooperation Council shall be a Contact Group responsible for discussing the implementation of this Protocol. (1) Commission Regulation (EC) No 1734/96 of 9 September 1996 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (OJ L 238, 19. 9. 1996, p. 1). ANNEX I Notwithstanding the rules for the interpretation of the Combined Nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application of the CN code and corresponding description taken together. >TABLE POSITION> >TABLE POSITION> ANNEX II concerning the introduction of a double-checking system for the export of certain ECSC and EC steel products from the former Yugoslav Republic of Macedonia to the European Communities Article 1 1. From the date of entry into force of the Cooperation Agreement between the European Community and the former Yugoslav Republic of Macedonia (hereinafter referred to as respectively 'the Agreement` and 'the Community`), imports into the Community of the products listed in Appendix I originating in the former Yugoslav Republic of Macedonia shall be subject to the presentation of a surveillance document conforming to the model shown in Appendix II issued by the authorities in the Community. 2. The classification of the products covered by this Protocol is based on the tariff and statistical nomenclature of the Community (hereinafter called the 'combined nomenclature`, or in abbreviated form 'CN`). The origin of the products covered by this Protocol shall be determined in accordance with the rules in force in the Community. 3. The competent authorities of the Community undertake to inform the former Yugoslav Republic of Macedonia of any changes in the combined nomenclature (CN) in respect of products covered by the double-checking system before the date of their entry into force in the Community. 4. Import into the Community of the iron and steel products listed in Appendix I and which originate in the former Yugoslav Republic of Macedonia shall, in addition, be subject to the issue of an export document by the competent authorities of the former Yugoslav Republic of Macedonia. In order to avoid problems at the end of a year, presentation by the importer of the original of the export document must be effected not later than 31 March of the year following that in which in the goods covered by the document were shipped. 5. An export document will not be required for goods already shipped before the date of entry into force of the Agreement, provided that the destination of such products is not changed from a non-Community destination and that those products which, under the prior surveillance regime applicable in 1996, could be imported only on presentation of a surveillance document are in fact accompanied by such a document. 6. Shipment is considered to have taken place on the date of loading onto the exporting means of transport. 7. The export document shall conform to the model shown at Appendix III. It shall be valid for exports throughout the customs territory of the Community. 8. The former Yugoslav Republic of Macedonia shall notify the Commission of the European Communities of the names and addresses of the appropriate governmental authorities of the former Yugoslav Republic of Macedonia which are authorized to issue and to verify export documents together with specimens of the stamps and signatures they use. The former Yugoslav Republic of Macedonia shall also notify the Commission of any change in these particulars. 9. Certain technical provisions on the implementation of the double-checking system are set out in Appendix IV. Article 2 1. The former Yugoslav Republic of Macedonia undertakes to supply the Community with precise statistical information on the export documents issued by the authorities of the former Yugoslav Republic of Macedonia pursuant to Article 1. Such information shall be transmitted to the Community by the end of the month following the month to which the statistics relate. 2. The Community undertakes to supply the authorities of the former Yugoslav Republic of Macedonia with precise statistical information on surveillance documents issued by Member States in respect of the products listed in Appendix I. Such information shall be transmitted to the authorities of the former Yugoslav Republic of Macedonia by the end of the month following the month to which the statistics relate. Article 3 If necessary, at the request of either of the Parties, consultations shall be held on any problems arising from the operation of the double-checking system. Such consultations shall be held promptly. Any consultations held under this Article shall be approached by both Parties in a spirit of cooperation and with a desire to reconcile the difference between them. Article 4 Any notices to be given hereunder shall be given: - in respect of the Community, to the Commission of the European Communities (DG I/D/2 and DG III/C/2), - in respect of the former Yugoslav Republic of Macedonia, to its Mission to the European Communities, the Ministry of Foreign Affairs and the Ministry of Economy. Appendix I to Annex II THE FORMER YUGOSLAV REPUBLIC OF MACEDONA LIST OF PRODUCTS SUBJECT TO DOUBLE-CHECKING Complete CN heading 7208 Complete CN heading 7209 Complete CN heading 7210 Complete CN heading 7211 Complete CN heading 7212 Complete CN heading 7303 Complete CN heading 7304 Complete CN heading 7305 Complete CN heading 7306 Appendix II to Annex II >START OF GRAPHIC> >END OF GRAPHIC> Appendix III to Annex II >START OF GRAPHIC> >END OF GRAPHIC> >START OF GRAPHIC> >END OF GRAPHIC> Annex IV to Annex II THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA Technical annex on the double-checking system 1. The export documents shall measure 210 × 297 mm. The paper used shall be white writing paper, sized, not containing mechanical pulp, and weighing not less than 25 g/m². They shall be made out in English. If they are completed by hand, entries must be in ink and in printed script. These documents may comprise additional copies duly indicated as such. If the documents have several copies only the top copy is the original. This copy shall be clearly marked as 'original` and other copies as 'copies`. Only the original shall be accepted by the competent authorities of the Community as being valid for the control of export to the Community in accordance with the provisions of the double-checking system. 2. Each document shall bear a standardized serial number, whether or not printed, by which it can be identified. This number shall be composed of the following elements: - a two-digit number identifying the exporting country as follows: 96, - a two-digit number identifying the intended Member State of customs clearance as follows: >TABLE POSITION> - a one-digit number identifying the year, corresponding to the last figure in the respective year, e. g. 7 for 1997, - a two-digit number from 01 to 99, identifying the particular issuing office concerned in the exporting country, - a five-digit number running consecutively from 00001 to 99999 allocated to the intended Member State of customs clearance. 3. The export documents shall be valid for four months from the date of their issue. Export documents may be renewed or prolonged. 4. Since the importer needs to present the original export document when requesting an import document, export documents should, as far as possible, be issued in respect of individual commercial transactions, not global contracts. 5. The former Yugoslav Republic of Macedonia need not show price information on the export document if there is a genuine need to protect commercial confidentiality. In such cases, Box 9 of the export document should indicate the reason for not showing the price information and that it is available to the competent authorities of the European Communities on request. 6. Export documents may be issued after the shipment of the products to which they relate. In such cases they must bear the endorsement 'issued retrospectively`. 7. In the event of theft, loss or destruction of an export document, the exporter may apply to the competent governmental authority which issued the document for a duplicate to be made out on the basis of the export documents in his possession. The duplicate of any such document so issued shall bear the endorsement 'duplicate`. The duplicate shall bear the date of the original export document. 8. The competent authorities of the Community shall be informed immediately of the withdrawal or modification of any export documents already issued and, where relevant, of the basis for such action. PROTOCOL 2 on the definition of the concept of 'originating products` and methods of administrative cooperation TABLE OF CONTENTS Page TITLE I GENERAL PROVISIONS . 65 - Article 1 Definitions . 65 TITLE II DEFINITION OF THE CONCEPT OF 'ORIGINATING PRODUCTS` . 65 - Article 2 General requirements . 65 - Article 3 Bilateral cumulation of origin . 65 - Article 4 Wholly obtained products . 66 - Article 5 Sufficiently worked or processed products . 66 - Article 6 Insufficient working or processing operations . 67 - Article 7 Unit of qualification . 67 - Article 8 Accessories, spare parts and tools . 67 - Article 9 Sets . 67 - Article 10 Neutral elements . 67 TITLE III TERRITORIAL REQUIREMENTS . 68 - Article 11 Principle of territoriality . 68 - Article 12 Direct transport . 68 - Article 13 Exhibitions . 68 TITLE IV DRAWBACK OR EXEMPTION . 69 - Article 14 Prohibition of drawback of, or exemption from, customs duties . 69 TITLE V PROOF OF ORIGIN . 69 - Article 15 General requirements . 69 - Article 16 Procedure for the issue of an EUR.1 movement certificate . 69 - Article 17 EUR.1 movement certificates issued retrospectively . 70 - Article 18 Issue of a duplicate EUR.1 movement certificate . 70 - Article 19 Issue of EUR.1 movement certificates on the basis of a proof of origin issued or made out previously . 71 - Article 20 Conditions for making out an invoice declaration . 71 - Article 21 Approved exporter . 71 - Article 22 Validity of proof of origin . 71 - Article 23 Submission of proof of origin . 72 - Article 24 Importation by instalments . 72 - Article 25 Exemptions from proof of origin . 72 - Article 26 Supporting documents . 72 - Article 27 Preservation of proof of origin and supporting documents . 72 - Article 28 Discrepancies and formal errors . 73 - Article 29 Amounts expressed in ecu . 73 TITLE VI ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION . 73 - Article 30 Mutual assistance . 73 - Article 31 Verification of proofs of origin . 73 - Article 32 Dispute settlement . 74 - Article 33 Penalties . 74 - Article 34 Free zones . 74 TITLE VII CEUTA AND MELILLA . 74 - Article 35 Application of the Protocol . 74 - Article 36 Special conditions . 74 TITLE VIII FINAL PROVISIONS . 75 - Article 37 Amendments to the Protoco …