EU Customs 2010

The Egyptian Center for Studies of Export & Import ‫ا
آ ا ى رات ا
و ااد‬
Gateways to European Union Customs Code

Modernized Customs Code
Summary This is a Summary of Study's - For full study Contact us Summary
February 2010
An independent study's
Prepared by:
The Egyptian center for Studies of Export & Import.
Economics provides a tool for studying how legal rules affect the way people and
businesses behave, so that understanding the economic aspects of legal problems
has become an important part of a lawyer's education.
Similarly, for a person trained as economist knowledge of legal issues has come to
be increasingly important.
The objective of this study's
Our Studies goal is to provide general information about effective EU customs

legislation and its respective relationships.
Considering that Community customs legislation spans more than 1,000 pages and
The Expanding Competence of the European Union in the Area of International
Trade.
To Support the Egyptian Exporters, Shippers
The EU Customs Policy

The Regulation (EC) No 450/2008 of the European Parliament and of the
Council of 23 April 2008 laying down the Community Customs Code
(Modernized Customs Code) which must be applied only when the detailed
implementation regulations have been adopted (this must happen no later
than 2013).
It is nearly impossible to have up-to-date knowledge of Community customs

legislation without access to the Internet because certain updated important
elements of it can be accessed only through the Internet.
Our Study's it is first studies in this field and we hope to help all exporters in
Arab Countries to understand and pass to EU Market.
Our Reference: EU websites, EU Members website and others …
General Manager
Medhat Saad El-din
Legal & Economic Consultations
www.ecsei.com
www.ecsei-eg.com
Direct: 0020-123514312
Email: [email protected]
[email protected]
www.ecsei.com www.ecsei-eg.com Email: [email protected] [email protected]

The Egyptian Center for Studies of Export & Import ‫ا آ ا ى رات ا
و ااد‬

Introduction
The EU is one of the world’s major economic actors and the most important trader
so that clearly its relations with the most countries in the world have a substantial
impact on the global economy.
The EU boasts a diverse and yet increasingly integrated market, Europe is an open
and transparent market.
The strong markets of Western Europe and the Nordics are complemented by the
impressive growth of the emerging markets in Central and Eastern Europe."
The European Union is the world's largest single market and by far the most
important trading partner for developing countries.
The wide range of preferential and bilateral trade agreements that the EU is offering
partners in the developing world, allows them to benefit from as open access as
possible to the EU market.
The single European market has created an estimated €877 billion (£700 billion) of
extra wealth in the last 10 years and EU trade now accounts for 20% of all global
imports and exports, making the EU the world’s largest trader.
The EU is a springboard to extend further commercial activities in North Africa, the

Middle East and Asia.
Some of the key growth sectors of interest to the EU include:
• Information and communications technologies,
• Aerospace and defence,
• Life sciences,
• Agriculture and agri-food,
• Environmental products,
• Services,
• Technologies
The European Union is based on the rule of law
This means that everything that it does is derived from treaties, which are agreed on
voluntarily and democratically by all Member States.
Previously signed treaties have been changed and updated to keep up with
developments in society.
The EU Common Commercial Policy
The Treaty of Rome (EEC) contains the progressive establishment of the Common
commercial Policy (CCP) and its common external tariff (CET) (Title VII arts 110-113,
now Title XI arts 131-134).
The Common Commercial Policy has been and still is one of the most dynamic fields
of EU external relations. At the same time it is one of the most important fields of
Page (1)

و ااد‬

European Law determining the legal basis for Europe`s place in its global economic
relations. Since the entry into force of the ECC-Treaty in 1958 the scope of the
Common Commercial Policy (CCP) has already changed several times to adapt to the
new realities of international trade and economic relations.
A primary objective of the CCP
Is to secure uniformity of treatment by EC members in trade relations with third

countries.
As in any commercial policy, art. 113 (133) expressly refers not only to the use of
tariff, but also to the uniform application of other trade policy
Instruments such as:
• Liberalization measures,
• Protection in the case of illicit practices,
• Export policy (credit),
• Anti-dumping and countervailing measures against subsidies.
It also regulates the negotiation and approval of common trade arrangements with
third countries.
The Customs Union
The European Union (EU) acts in the area of international trade

through the community’s commercial policy regulated by the
European Community (EC) Treaty and the position of the Union in
external trade relations is dependant on the unique legal
character of this entity.
The customs union is the essential element of the internal

market.
Its introduction was the primary objective after the signature of
the Treaty of Rome and continued until 1968.
Common procedures and rules were drawn up together with a

Single Administrative Document (SAD) aimed at replacing the
different documents previously used with the entry into force of
the single market in 1993.
The other essential element of the customs union is that goods

imported from third countries are subject to the same customs
duties in every member country.
Page (2)

و ااد‬

Tariff Policy is the first step towards customs union
First Step Towards Customs Union
Common Customs Tariff (CCT) entered

into force
On 1st July 1968
As a consequence were eliminated
The Tariff barriers and quantity

restrictions in intra-Community
Community trade
Achieving a tariff union among the six

countries which had signed the Treaty
of Rome
The basis of the Community Customs Tariff, enacted by means of Regulation (EEC)
3816/86, which came into force on 1st January 1988.
The Community Customs Code Council Regulation (EEC) No 2913/92

establishing the Community Customs Code & amended
unity Customs Code and the Regulation that followed are

The Community
the basis of the economic union of the Member States; these represent
a single body as against all other Countries called ”third Countries”.
The Community Customs Code is the only legislative means in force in
all E.U. Member States.
It provides for identical rules and procedures for all Member

States and it is the only fundamental customs law that
disciplines trade between EU and non-EU
non Countries.
The Code is made up of 253 articles disciplining the
competences of customs.
It starts from the scope of application and basic definition,
determining the activity of customs, its principles and implementing
regulations.
www.ecsei.com www.ecse
sei-eg.com Email: [email protected]
com [email protected]
و ااد‬

On 1st January 1993,

1993 the single market started and all national
customs laws ceased
ased to be in force; a Consolidation Act has
been issued that may be modified only by the competent
Community bodies.
The Community Customs Code is the result of more than 35 years of

continues harmonization and modification of Member States’ customs
legislations.
The first target that has been achieved is the elimination of all
obligations and limitations in intercommunity trade.
Goods can now be transferred from one EU Country to another

without completing customs formalities.
The customs union was one of the EU's earliest milestones.
It abolished customs duties at internal borders and put in place a
uniform system for taxing imports.
Internal border controls subsequently disappeared.
disappeared
The customs union is a single trading area
are where all goods
circulate freely, whether made within the EU or imported from
outside.
The EU will cut its tariff in stages, from the current rate of €176
per tonne to €114 per cent tonne in 2017 at the earliest.
Customs services in the EU handle nearly 20% of world imports,
imports
that is more than two billion tonnes of goods per year.
Customs process well over 100 million customs declarations
annually the EU lower its tariffs on many imports from poor
countries.
The Modernized Customs Code the Council Regulation
(EC) No 450/2008
The Main changes made to customs legislation by the modernized Code:
The Code has been modernized in response to a number of

internal and external challenges faced by the EU, as well to the
changing context in which customs authorities work.
EU Market Access
Requirements are
divided into two
categories:
Non--legislative Legislative
Requirements Requirements
Page (3)
و ااد‬

Our View and work in this study's :
The Community's Basic Customs Legislation
Council Regulation 2913/92/EEC

/EEC establishing the
Community Customs Code

/EEC laying down provisions
for the implementation of Council Regulation 2913/92/
EEC establishing the Community Customs Code

/EEC setting up a Community
system of reliefs from customs duty (duty-free
(duty
regulation).

/EEC on the tariff and
statistical nomenclature and on the Common Customs
Tariff.
Decision No 624/2007/EC
/EC
establishing an action programme for customs in the
Community (Customs 2013)
2013
The Council Regulation (EC) No 450/2008
450 of the
European Parliament and of the Council of 23 April 2008
laying down the Community Customs Code
((Modernized Customs Code)
Decision No 70/2008/EC
/EC of the European Parliament and
of the Council of 15 January 2008 on a Paperless
Environment for Customs and Trade
origins of
the
imported
goods
Type of
the
imported
Goods
Common
Customs Tariff
(CCT)
Page (4)
و ااد‬

Two Major Initiatives Phased in

Customs authorities across the EU
The Electronic Customs plan

should lead to a Paperless
Customs system by 2012..
Modernization of the Community

Customs Code is the Legal Side of
Electronic Customs.
Common Rules
Regarding Origin
Storage Procedures
A Single Administrative
Document (SAD) for
Customs
Page (5)
و ااد‬

The Electronic customs initiative is essentially based on three pieces

of legislation
The Regulation (EC) 648/2005 on the Security

and Safety Amendment to the customs code
which provides for full computerization of all
procedures related to security and safety
The Decision No 70/2008/EC/EC of the European

Parliament and of the Council of The Decision
on the paperless environment for customs and
trade Electronic Customs Decision which sets
the basic framework and major deadlines for
the electronic customs projects
The Regulation No 450/2008 EC, the

Modernized Community Customs Code which
provides for the completion of the
computerization of customs
The Structure of the Tax to

be applied to a particular
group of products
The minimum rates of duty

General provisions that
that Member States have
apply across the product
to respect for each type of
categories
product.
Page (6)
و ااد‬

The European
Customs Union
Eliminated import VAT Eliminated customs

Created uniform
between EU member duties between EU
customs regime
states member states
External common
customs tariff (CCT) rates
for goods imported from
non-member countries Enter EU Market
into the Customs Union
area
The CC is applicable in
areas other than
customs duties
In Certain Cases These

Include
Restrictions and
The suspension of VAT prohibitions based on Import and export
and excise duties grounds other than quotas and prohibitions
commercial policy
Page (7)
و ااد‬

2008 Unit Euro EU United Japan

area States
Population, GDP and labour
Total population millions 327.9 498.6 304.5 127.7
Labour force participation rate % 71.4 70.9 75.3 73.8
Age dependency ratio % 49.8 48.6 48.7 55.2

EUR
GDP (PPP) trillions 9.3 13.0 12.3 3.7
EUR
GDP per capita (PPP) thousands 28.2 26.1 40.3 28.9
Labour productivity (PPP) 4) (euro area 100.0 91.6 132.6 91.6

= 100)
Labour income share % 66.0 67.6 68.5 72.8

Value added by economic
activity
% of total 1.8 1.8 1.3 1.4
Agriculture, fishing, forestry
Industry (incl. construction) % of total 26.4 26.5 21.8* 28.5*
Services (incl. non-market services) % of total 71.8 71.7 76.9*) 70.1*

Saving and investment
Gross saving6 % of GDP 21.2 20.8 14.5* 27.0
Gross fixed capital formation % of GDP 21.7 21.1 17.8 23.1

External
Exports of goods and services % of GDP 22.6 14.8 12.6 18.3
Imports of goods and services % of GDP 22.3 15.8 17.5 17.9

Monetary and financial
indicators
EUR
Credit trillions 15.5 20.8 10.8 8.9
EUR
Outstanding debt securities trillions 13.2 16.3*) 21.4 8.1
EUR
Stock market capitalisation trillions 3.5 5.2 9.0 2.3
Page (8)

و ااد‬

Page (9)
و ااد‬

Index
Part I: EU Glossary Preparation by ECSEI
Part II: European Union History:

I. The European coal and Steel Community (ECSC) 1951
II. The European Atomic Energy Community (EURATOM) 1957
III. The European Economic Community (EEC) 1957
IV. Merger Treaty 1965
V. Single European Act (SEA) 1986
VI. Treaty on European Union (The Maastricht Treaty) 1992
VII. Treaty of Amsterdam 1997
VIII. Treaty of Nice 2001
IX. Treaty of Lisbon 2007
Part III: The Single European Market

I. The Terms of the EEC Treaty
II. EU Market Access Requirements:
II.1. Legislative requirements
II.2. Non-legislative requirements
Part IV: The Players in the Community System (The European Union institutions)
I. The European Parliament
II. The Council of the European Union
III. The European Commission
IV. The Court of Justice
V. The Court of Auditors
VI. The European Central Bank (ECB)
VI.1. Euro area
VII. The European Economic and Social Committee (EESC)
Part V: EU Economy
I. EU Economy Overview
II. The EU budget 2010
III. Economic of the European Union, 2008
IV. Economic Survey of the European Union, 2009
V. Shares of Global Output
Part VI: The Common Commercial Policy

I. Commission negotiates and concludes international agreements at the bilateral and
multilateral levels.
II. EU and the World Trade Organization
III. The Specific Preferences (The Generalized Preferences System) GPS
IV. Trade relations with third Countries
V. The United Nations Conference on Trade and Development (UNCTAD)
VI. UN list of LDCs a<er the 2006 triennial review
Page (10)

و ااد‬

Part VII: The Roles and Structure of the Common Customs Tariff (CCT)
I. Type of EU Taxation
II. The Types of Duty are used in the CCT
III. EU Legislation in the area of excise duties
IV. Common Customs Tariff
V. EU Combined Nomenclature
VI. Integrated Tariff of the European Communities (Taric)
VII. Combined Nomenclature and Taric
VIII. The Principles of Tariff Classification
IX. Binding Tariff Information (BTI)
X. Tariff quotas
Part VIII: The History of Customs Union

I. Emerging Issues in European Customs Law
II. The legal sources of European customs law
III. The General Agreement on Tariffs and Trade
IV. The rules of commercial international law
Part IX: The Scope and Structure of Community Customs Legislation

I. The European Union's customs policy
II. Basic Customs Legislations
III. Basic Customs Instruments
IV. Customs union and the internal market European law represent the most
important Source of law for applicable European customs law.
V. Electronic customs
VI. The right and obligation of traders and administrations with regard to customs rules
VII. The Community Customs Code contains three broad categories of rules:
VII.1.General provisions
VII.2.Procedural rules
VII.3.Rules on customs duties
VIII. The Two Most Common Types of Customs Duty :
VIII.1.Tariff quotas
VIII.2.Anti-dumping duties
IX. The World Trade Organization
X. The World Customs Organization
Part X. The Community Customs Code (Modernized Customs Code) No 450/2008 EC

I. The Main changes made to customs legislation by the modernized Code
II. MCC Implementation provisions
III. Electronic systems
IV. MCC Structure
V. Scope of customs legislation
VI. Rights and obligations of persons with regard to customs legislation
VII. The Basis of which import or export duties
VIII. Goods Brought into the Customs Territory of the Community
IX. General rules and Special Procedures on customs status
X. Departure of goods from the customs territory of the community
XI. Glossary of MCC
Page (11)

و ااد‬

Part. I. EU Glossary Preparation by ECSEI
ACP
African, Caribbean and Pacific Group of States.

Is an organization created by the Georgetown Agreement in 1975.
It is composed of African, Caribbean and Pacific States which are signatories to the
Partnership Agreement between the ACP and the European Union, officially called
the "ACP-EC
EC Partnership Agreement" or the "Cotonou Agreement".
It includes 77 countries namely Angola - Antigua and Barbuda - Belize - Cape Verde -
Comoros - Bahamas - Barbados - Benin - Botswana - Burkina Faso - Burundi -
Cameroon - Central African Republic - Chad - Congo (Brazzaville) - Congo (Kinshasa)
- Cook Islands - Cte d'Ivoire
voire - Cuba - Djibouti - Dominica - Dominican Republic -
Eritrea - Ethiopia - Fiji - Gabon - Gambia - Ghana - Grenada - Republic of Guinea -
Guinea-Bissau - Equatorial Guinea - Guyana - Haiti - Jamaica - Kenya - Kiribati -
Lesotho - Liberia - Madagascar - Malawi - Mali - Marshall Islands - Mauritania -
Mauritius - Micronesia - Mozambique - Namibia - Nauru - Niger - Nigeria - Niue -
Palau - Papua New Guinea - Rwanda - St. Kitts and Nevis - St. Lucia - St. Vincent and
the Grenadines - Solomon Islands - Samoa - Sao Tome and Principe - Senegal -
Seychelles - Sierra Leone - Somalia - South Africa - Sudan - Suriname - Swaziland -
Tanzania - Timor Leste - Togo - Tonga - Trinidad and Tobago - Tuvalu - Uganda -
Vanuatu - Zambia - Zimbabwe.
Page (12)
و ااد‬

Action programme for customs in the Community 2013
Decision No 624/2007/EC of the European Parliament and of the Council of 23 May

2007 establishing an action programme for customs in the Community
Establishment of the Programme:
1. A multiannual action programme for customs in the Community (Customs 2013)

Established for the period from 1 January 2008 to 31 December 2013 to support
and complement action undertaken by Member States in ensuring the effective
Functioning of the internal market in the customs field.
2. The Programme shall consist of the following activities:
(a) Communication and information-exchange systems;

(b) Benchmarking;
(c) Seminars and workshops;
(d) Project groups and steering groups;
(e) Working visits;
(f) Training activities;
(g) Monitoring actions;
(h) Any other activities required for the realisation of the objectives of the
programme.
AEO
Authorized Economic Operator (AEO) Programme :

The EU is introducing a series of measures to protect the international supply chain
from terrorist exploitation.
To minimize any slowdown in the movement of legitimate goods resulting from these
measures, a trade facilitation initiative known as the AEO Programme has been
introduced for compliant traders with effect from 1st January 2008.
In advance of the introduction of AEO, Revenue engaged in an extensive
consultation process with the trade and has trained staff throughout the organization
to deal with this new program.
AES
Means Automated Export System (EU)

The objective of the Automated Export System is to ensure that export operations
started in one Member State can be finalized in another Member State without re-
submission of the same information.
This includes the exchange of electronic messages related to the different stages of
the operations amongst the various actors (customs, traders and other governmental
administrations). This project was divided in 3 phases:
• Export Control System (ECS)

• ECS - Exit "Security" Control
• AES Full Deployment
Page (13)

و ااد‬

Agricultural Duties
Import and export duties introduced under the common agricultural policy.
The EU is one of the worlds most open market to imports of farm products from
third countries and especially from developing countries.
Taking into account trade preferences given to developing countries, the average
customs duty actually applied by the EU to farm imports is 10.5 %, a figure three
times lower than frequently mentioned data.
As a result of this low level of protection, the EU is by far the world's number one
importer of agricultural products, and the main importer of farm products from
developing countries as well as from Least Developed countries.
Anti-dumping Duties (AD)
Customs duties imposed on imports from specific countries in addition to the normal
or preferential duty; such duties can be introduced where the export price is below
the normal value, provided such imports cause or threaten to cause material injury
to Community producers of like products.
Anti-dumping measures
• Regulation (EC) No 384/96 aims to transpose the provisions of the new

agreement on the implementation of Article VI of the General Agreement on
Tariffs and Trade 1994 (1994 Anti-dumping Agreement) into Community law
with a view to ensuring appropriate and transparent application of the new
anti-dumping rules.
• The Regulation applies to all countries that are not members of the European
Community (EC).
• The Regulation applies to all products.
• However, with regard to agricultural products, particularly products where
common market organizations protect Community production through the use
of levies, the provisions of the anti-dumping regulation may be applied by
way of complement to and in derogation from any provisions which preclude
the application of anti-dumping duties.
The Regulation lays down two conditions for the application of anti-dumping duties:
• The existence of dumping and

• Proof of injury to the Community industry as a result of this dumping.
Approved Exporter (Export Procedure)
A person who has been authorized to use the local clearance procedure for exports,
i.e. he places the goods under the procedure by entry in his records and notifies the
customs authorities of the removal of the goods from his premises in the manner
specified in the authorization (Arts 283-289 CCIP).
Page (14)

و ااد‬

Approved Exporter (Origin)
A person who makes frequent shipments of products qualifying for preferential origin
and who has been authorized to make out invoice declarations for proof of origin.
Association Agreement
An agreement between the Community and one or more third countries creating
mutual rights and obligations.
ATA Carnets
The ATA Carnet is an international customs document that permits duty-free and
tax-free temporary import of goods for up to one year.
The initials "ATA" are an acronym of the French and English words "Admission
Temporaire/Temporary Admission."
ATA Carnets cover:
• Commercial samples
• Professional equipment
• Goods for presentation or use at trade fairs, shows, exhibitions etc.
That means almost anything:
• Computers,
• Repair tools,
• Photographic and film equipment,
• Musical instruments,
• Industrial machinery,
• Vehicles,
• Jewellery,
• Clothing,
• Medical appliances and aircraft,
• Race horses,
• Old masters,
• Prehistoric relics,
• Ballet costumes and
• Rock group sound systems
Note:
ATA Carnets do NOT cover perishable or consumable items or goods for processing
or repair.
Page (15)

و ااد‬

ATR Goods Movement Certificates
An ATR Document is a goods movement certificate used for preferential treatment of

goods moved between the European Community and Turkey.
This Notice explains the rules to be satisfied if goods are to qualify for preferential
tariff treatment which the EC has formed with Turkey for a wide range of industrial
products. Most agricultural and all coal and steel products qualify under traditional
reciprocal trade agreements.
Authorized Consignee
A person who has been authorized to receive at his premises or at any other
specified place goods under a transit procedure without presenting them and the
transit declaration at the office of destination.
Authorized Consignor
A person who has been authorized to carry out transit operations without presenting
the goods and the transit declaration at the office of departure.
Bilateral and regional cooperation
Relations between
the EU and its
neighbors
Are handled within

two political
frameworks
The European
The separate
Neighbourhood Policy
Strategic Partnership
(ENP)
European Neighborhoods and Partnership Instrument
Relations between the EU and its neighbors are handled within two political
frameworks:
Page (16)

و ااد‬

The European Neighborhoods Policy (ENP) covering relations with 16 of the

EU’s immediate neighbors',
The ENPI provides EC assistance at a bilateral or regional level to 17

countries:
1) Algeria,
2) Armenia,
3) Azerbaijan,
4) Belarus,
5) Egypt,
6) Georgia,
7) Israel,
8) Jordan,
9) Lebanon,
10) Libya,
11) The Republic of Moldova (hereafter Moldova),
12) Morocco,
13) The occupied Palestinian territory,
14) Syria,
15) Tunisia,
16) Ukraine and
17) Russia.
It comprises a specific cross-border cooperation component covering

border regions of EU Member States.
Binding Origin Information (BOI)
Written information issued by the customs authorities of the Member States on the
preferential or non-preferential origin of specific goods to be imported or exported
(Art. 12 CC).
Binding Tariff information (BTI)
Written information issued by the customs authorities of the Member States on the
classification of goods in the combined nomenclature or a nomenclature derived
there from, such as the TARIC (Art. 12 CC).
CCC
Community Customs Code (EU) the provisions of Council Regulation (EEC) No

2913/92 establishing the Community Customs Code and subsequent amendments.
CCE
Commissioners of Customs and Excise.
Page (17)

و ااد‬

CCIP
Customs Code Implementer Provisions (EU) Regulation (EEC) No 2454/93 laying

down provisions for the implementation of Council Regulation (EEC) No 2913/92
establishing the Community Customs Code.
Combined Nomenclature (CN)
A systematic list of goods descriptions based on the Harmonized System, serving for
the purposes of the Common Customs Tariff, external trade statistics, and other
Community policies (Art. 1 Reg. [EEC] No 2658/87).
Commercial Policy Measures
Non-tariff measures established in the framework of the common commercial policy,

such as:
• import or export surveillance or safeguard measures,
• quantitative import or export restrictions,
• Import or export prohibitions (Art. 1 (7) CCIP).
Some measures apply to all goods entering or leaving the EC customs territory,
others only to release for free circulation or export (Arts 509, 808 CCIP).
Common Customs Tariff
The sum of all Community provisions fixing import and export duties and duty
exemptions with regard to specific goods, including agricultural, anti-dumping and
preferential duties, tariff quotas and tariff suspensions.
Common Transit
Customs procedure for the carriage of goods between the Community and the EFTA
countries and between the EFTA countries themselves.
Community Transit
Customs procedure that allows goods to be moved from one point in the Community
to another.
Compensating products
Products resulting from processing under the inward or outward processing

procedure. Main compensating products are those for the production of which the
arrangements were authorized, whilst secondary compensating products are
necessary by-products of the processing operation (Art. 496 (k, l) CCIP).
Page (18)

و ااد‬

Control copy T5
Declaration and undertaking used to cover goods imported into, exported from or
moving within the customs territory of the Community that are subject to proof of
compliance with the conditions provided for or prescribed by a Community rule for
their use and/or destination.
Countervailing duties
Customs duties imposed on imports from specific countries in addition to the normal
or preferential duty; such duties can be introduced where a subsidy is granted by the
export country, provided such imports cause or threaten to cause material injury to
Community producers of like products (Art. VI GATT and Reg. [EC] No 2026/97,)
CPD Carnet
Document facilitating transit and temporary importation of means of transport by

serving both as a customs declaration and authorization as well as guarantee in
countries that are a contracting party to the Istanbul Convention.
CPT
European Committee for the Prevention of Torture and Inhuman or Degrading

Treatment or Punishment.
Cumulation
Rules allowing components and processing in certain partner countries to be

considered for the acquisition or maintenance of preferential origin.
Cumulation is the term used to describe a system that allows originating products of
country A to be further processed or added to products originating in country B, just
as if they had originated in country B.
The resulting product would have the origin of country B. It can only be applied
between countries operating with identical origin rules.
An important point to remember is that in the case of cumulation the working or
processing carried out in each partner country on originating products does not have
to be 'sufficient working or processing' as set out in the list rules.
There are four types of cumulation: bilateral, diagonal, regional and full.
• Bilateral cumulation
• Diagonal cumulation
• Regional cumulation
• Full cumulation
Page (19)

و ااد‬

Customs Code Committee
The Committee assisting the Commission in the elaboration of implementing

provisions to:
• The Community Customs Code,

• Duty relief on account of special circumstances,
• The Combined nomenclature and explanatory notes thereto,
• Any other Council regulation referring to this Committee.
Customs Controls
Acts performed by the customs authorities of the Member States with a view to
ensuring that the customs rules and other applicable trade provisions are observed,
such as examining goods, documents or accounts, or carrying out inquiries (Arts 4
(14), 13, 68, 78 (2) CC).
Customs Debt
The obligation on a person to pay import or export duties under the provisions of the
Community Customs Code and the Common Customs Tariff.
Customs Declaration
The act whereby a person indicates the wish to place goods under one of the
customs procedures provided for by the Community Customs Code (Arts 4 (17), 59 -
78 CC).
Customs office of Entry
Means the customs office designated by the customs authorities in accordance with
the customs rules to which goods brought into the customs territory of the
Community must be conveyed without delay and at which they will be subject to
appropriate risk-based entry controls.
Customs office of Exit
the customs rules to which goods must be presented before they leave the customs
territory of the Community and at which they will be subject to customs controls
relating to the completion of exit formalities, and appropriate risk-based controls.
Customs office of Export
the customs rules where the formalities for assigning goods leaving the customs
territory of the Community to a customs-approved treatment or use, including
appropriate risk-based controls, are to be completed.
Page (20)

و ااد‬

Customs office of Import
the customs rules where the formalities for assigning goods brought into the customs
territory of the Community to a customs-approved treatment or use, including
appropriate risk-based controls, are to be carried out.
Customs Procedure
The Community Customs Code provides for 8 customs procedures:

1) Release for free circulation,
2) Transit,
3) Customs warehousing,
4) Inward processing,
5) Processing under customs control,
6) Temporary importation,
7) Outward processing, and
8) Exportation (Art. 4 (16) CC).
Customs Procedures with economic impact
The following customs procedures require an authorization and in some situations an

evaluation of their economic impact (Art. 84 (1) (b) CC):
• Customs warehousing,
• Inward processing,
• Processing under customs control,
• Temporary importation,
• Outward processing.
Customs Territory of the Community
The Customs Territory of the Community

Comprises of the Territory of:
• Belgium,
• Bulgaria,
• The Czech Republic,
• Denmark, except the Faroe Islands and
Greenland,
• Germany, except the Island of Helgoland and the
territory of Bussing,
• Estonia,
• Ireland,
• Greece,
• Spain, except Ceuta and Melilla,
• France, except New Caledonia, Mayotte, Saint-Pierre and Miquelon, Wallis
and Futuna Islands, French Polynesia and French Southern and Antarctic
Territories,
Page (21)

و ااد‬

• Italy, except the municipalities of Livigno and Campione d'Italia and the
national waters of Lake Lugano which are between the bank and the political
frontier of the area between Ponte Tresa and Porto Ceresio,
• Cyprus (pending a settlement to the Cyprus problem, the application of the
Community 'acquis' is suspended in those areas in which the Government of
the Republic of Cyprus does not exercise effective control),
• Latvia,
• Lithuania,
• Luxembourg,
• Hungary,
• Malta,
• the Netherlands in Europe,
• Austria,
• Poland,
• Portugal,
• Romania
• Slovenia,
• The Slovak Republic,
• Finland,
• Sweden,
• The United Kingdom of Great Britain and Northern Ireland and the Channel
Islands and the Isle of Man.
Customs Union
The merger of two or more customs territories with the effect that (Art. XXIV GATT
and Art. 23 EC Treaty):
• Customs duties and non-tariff barriers are eliminated between the members
of the union for substantially all trade, and
• A common customs tariff and common rules for non-tariff barriers are
introduced for substantially all trade with non-member countries.
Customs Value
The value of goods established according to the customs rules for the levying of ad-
valorem duties (Arts 28 _ 36 CC).
Customs Warehousing
Customs procedure allowing the storage of (Art. 98 (1) CC) Non-Community goods
without subjecting them to import duties or commercial policy measures, and
Community goods with a view to applying measures normally requiring the export of
such goods.
Debtor
Any person liable for payment of a customs debt.
Page (22)

و ااد‬

Declarant
The person making the customs declaration in his own name or the person in whose
name a customs declaration is made (Arts 4 (18), 5 CC).
Declaration of value (D.V.1)
A form accompanying the customs declaration where it is necessary to establish the

customs value (Art. 178, Annexes 28, 29 CCIP).
Destruction
Customs treatment of Community goods subject to end-use controls and non-

Community goods in order to avoid payment of import duties (Arts 82, 182 CC).
Direct Transport Rule
Preferential arrangements contain rules concerning the transportation of preferential

goods from one party's territory to another.
The purpose of direct transport is to ensure that the goods arriving in the country of
import are the same as those which left the country of export.
However, if for any reason the goods pass through or stop-over in, the territory of a
third country provided that they stay under customs supervision, the conditions of
direct transport are considered to have been fulfilled.
Proof of compliance with the direct transport rule may be given by a single transport
document covering the passage of the goods through the country of transit or, for
example, a "non-manipulation certificate" issued by the authorities of that country.
Drawback
One of the two variants of the inward processing procedure under which the import
duties are paid at release for free circulation and refunded when the processed
products or the goods in the unaltered state are re-exported. Many free-trade
agreements don't allow drawback if a preferential proof of origin is issued.
Duty relief
Duty relief is provided for:
• Outward processing (Art. 145 CC),

• Special circumstances as defined in Reg. (EEC) No 918/83 (Art. 184 CC),
• Returned goods (Arts 185-187 CC),
• Products of sea-fishing (Art. 188).
………………………. Summary
Page (23)

و ااد‬

Part II. European Union History
On 23 July 1952 SIX founding members formed the European Coal and Steel
Community (ECSC) which was transformed into the European Community later
renamed to European Community later renamed to European Union in waves of
accession as follows:
Date Countries Members
18 April 1951 The Treaty of Paris was signed in April of 1951, establishing the 6
European Coal and Steel Community (ECSC).France, Germany,
Italy, Belgium, Luxembourg and the Netherlands accepted the
challenge and began negotiating a treaty.
25 March Belgium, France, West Germany, Italy, Luxembourg and 6

1957 Netherlands founding members
1 January Denmark, Ireland, United Kingdom 9
1973
1 January Greece 10
1981
1 January Greenland withdrew after gaining home rule from Denmark 10
1985
1 January Portugal , Spain 12
1986
3 October The Territory of the former German Democratic Republic as part 12
1990 of unified Germany also becomes part of the European
Community.
1 January Austria , Finland , Sweden 15
1995
1 May 2004 Cyprus , Czech , Republic, Estonia, Hungary, Latvia, Lithuania, 25
Malta, Poland, Slovakia, Slovenia
1 January Bulgaria , Romania 27
2007
July 1, 1968 remains a landmark in the European Economic Community's

(EEC) on that day, the six EEC founding members – Belgium, France,
Germany, Italy, Luxembourg and the Netherlands- completed their customs
union 18 months ahead of schedule.
This date marks the halfway point in the Community's evolution to economic
and monetary union.
As a customs union, the Community not only has eliminated internal trade
barriers but also has established a common external tariff and common trade
policies vis-à-vis the world.
The final goal is complete economic and monetary union, the nine
Community member countries- the original "SIX" plus the United Kingdom,
Denmark, and Ireland – will have a common commercial policy in the
broadest sense.
Page (24)

و ااد‬

i.The European coal and Steel Community (ECSC)
Treaty establishing the European Coal and Steel

Community
The Treaty Establishing the European Coal and Steel

Community (ECSC) which was signed on 18 April 1951 in
Paris, entered into force on 23 July 1952 and expired on 23
July 2002.
Moreover, the founding treaties have been amended on
several occasions, in particular when new Member States
acceded in 1973 (Denmark, Ireland, United Kingdom), 1981
(Greece), 1986 (Spain, Portugal), 1995 (Austria, Finland,
Sweden) and 2004 (the Czech Republic, Cyprus, Estonia, Hungary,
Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia).
Based on the Treaties, EU institutions can adopt legislation,
which is then implemented by the Member States.
The need for a common commercial policy was

recognized in the 1951 ParisTreaty which created the first
of the three European Communities in 1952- the
European coal and Steel Community (ECSC).
Chapter X of the Treaty (Articles. 71-75) devoted
exclusively to commercial policy empowered the ECSC, s
executive high authority to set both minimum and
maximum customs. The member states national
governments administered import and export licenses for
coal and steel but the High Authority supervised this
administration.
In addition the member states bound themselves to
inform the High Authority of any proposed trade or
commercial agreements involving Coal Steel raw
materials and semi finished products for coal and
steel production.
Treaty of Rome
The Treaty of Rome, establishing the European Economic

Community (EEC), signed in Rome on 25 March 1957, and
entered into force on 1 January 1958.
The Treaty establishing the European Atomic Energy

Community (Euratom) was signed at the same time and
the two are therefore jointly known as the Treaties of
Rome.
Page (25)

و ااد‬

ii.The European Atomic Energy Community( EURATOM)
The 1957 Rome Treaty which created the European Atomic Energy
Community (EURATOM) in 1958 like the ECSC Treaty provided for both a
customs union and a common commercial policy vis-à-vis third countries.
Just as the ECSC Treaty dealt only with coal and steel the Euratom Treaty
involved only nuclear supplies and products Chapter X (Articles 101-106) of
the Euratom treaty put all agreements with countries in the field of nuclear
energy under the authority of the Community rather than the individual
member states.
iii.The European Economic Community (EEC)
The main provisions of the community's common commercial policy are

embodied in a second Rome Treaty which created the European Economic
Community (EEC) in 1958.
This Treaty applies to every product not covered by other two limited
Treaties.
The rest of the booklet deals exclusively with EEC commercial Policy.
Cases where the common commercial policy does not yet fully apply to the
new members have been noted.
The EEC Treaty's preamble speaks of the member states as being "desirous
of contributing by means of a common commercial policy to the progressive
abolition of restriction on international trade.
"Article 3 of the Treaty calls for "the establishment of a common customs
tariff and of a common commercial policy towards third countries."
Article 29 says the Commission " shall be guided by the need for promoting
commercial exchanges between the member states and third countries"
Chapter 3 of Title II of the Treaty (Articles 110-116) gives the first details of
the Common Commercial policy.
Article 110 pledges the signatory countries to a liberal, rather than inward-
looking, commercial policy. It states their intention "to contribute, in
conformity with the common interest, to the harmonious development of
world trade, the progressive abolition of restrictions on international
exchanges, and the lowering of customs barriers."
This liberally conceived commercial policy looks forward.
Merger Treaty
The Merger Treaty signed in Brussels on 8 April 1965 and in force since 1 July 1967,
which provided for a Single Commission and a Single Council of the then three
European Communities.
Single European Act (SEA)
The Single European Act (SEA), signed in Luxembourg and the Hague, and entered
into force on 1 July 1987, provided for the adaptations required for the achievement
of the Internal Market.
Page (26)

و ااد‬

Treaty on European Union
This Treaty, the High Contracting Parties establish among themselves a European
Union, hereinafter called ‘the Union’.
This Treaty marks a new stage in the process of creating an ever closer union among
the peoples of Europe, in which decisions are taken as closely as possible to the
citizen.
The Union shall be founded on the European Communities, supplemented by the
policies and forms of cooperation established by this Treaty. Its task shall be to
organize, in a manner demonstrating consistency and solidarity,
solidarity, relations between
the Member States and between their peoples.
The main treaties established EU
Treaty on European Union

(The Maastricht Treaty)
was signed in Maastricht on 7 February
1992, entered into force on 1 November
1993
The Treaty of Amsterdam

signed on 2 October 1997,, entered into
force on 1 May 1999
The Treaty of Nice

signed on 26 February 2001,, entered
into force on 1 February 2003.
2003
The Treaty of Lisbon

was signed on 13 December 2007 and
entered into force on 1 December 2009
و ااد‬

The main treaties are the following:
Treaty on European Union (The Maastricht Treaty)
The Treaty on European, which was signed in Maastricht

on 7 February 1992, entered into force on 1 November
1993. 'The Maastricht Treaty changed the name of the
European Economic Community to simply "the European
Community".
It also introduced new forms of co-operation between the
Member State governments - for example on defence, and in the area of "justice and
home affairs".
By adding this inter-governmental co-operation to the existing "Community" system,
the Maastricht Treaty created a new structure with three "pillars"
which is political as well economic. This is the European Union (EU).
Treaty of Amsterdam
The Treaty of Amsterdam signed on 2 October 1997,

entered into force on 1 May 1999.
It amended and renumbered the EU and EC Treaties.
Consolidated versions of the EU and EC Treaties are
attached to it.
The Treaty of Amsterdam changed the articles of the Treaty on European Union,
identified by letters A to S, into
Numerical form.
Treaty of Nice
The Treaty of Nice, signed on 26 February 2001, entered

into force on 1 February 2003.
It dealt mostly with reforming the institutions so
that the Union could function efficiently after its
enlargement to 25 Member States.
The Treaty of Nice, the former Treaty of the EU and the
Treaty of the EC have been merged into one consolidated

version.
Treaty of Lisbon
The Treaty of Lisbon was signed on 13 December 2007

and entered into force on 1 December 2009.
Page (27)

و ااد‬

On 1 December 2009, the Treaty of Lisbon entered into

force, thus ending several years of negotiation about
institutional issues.
The Treaty of Lisbon amends the current EU and EC
treaties, without replacing them. It provides the Union with
the legal framework and tools necessary to meet future
challenges and to respond to citizens' demands.
It provides the EU with modern institutions and optimized
working methods to tackle both efficiently and effectively
today's challenges in today's world. In a rapidly changing world, Europeans look to
the EU to address issues such as globalization, climatic and demographic changes,
security and energy. The Treaty of Lisbon reinforces democracy in the EU and its
capacity to promote the interests of its citizens on a day-to-day basis
The European Parliament and the Treaty of Lisbon
The Treaty gives the European Parliament more power to shape Europe than ever
before by increasing its legislative power.
The Parliament is now on an equal footing with the Council in the co-decision
procedure, which has been extended to areas such as immigration, the EU budget
and energy. The aim is to make the EU more accountable to its citizens
It will have to be ratified by all 27 Member States before it can enter into force,
which is hoped to be before the next European Parliament elections in June 2009.
Its main objectives are:
• To make the EU more democratic,

• Meeting the European citizens’
• Expectations for high standards of accountability,
• Openness,
• Transparency and participation; and
• To make the EU more efficient and able
• To tackle today's global challenges such as climate change,
• Security and sustainable development.
Page (28)

و ااد‬

Part III. The Single European Market
The Legal Source

of European Single
Market
The Treaties of Roma 1957

two international
agreements signed 25 March
1957
The Single European Act European Atomic Energy The European Economic
signed in 1986 Commission Community
(SEA) (Euratom) (EEC)
The Treaties of Roma 1957

two international agreements
signed 25 March 1957
The European Economic

Community(EEC)
(came into effect 1 January 1958)
The Single European Act (SEA)

signed in 1986
(and in force from July 1987)
Page (29)
و ااد‬

EEC
The Terms of the EEC

Treaty Provided for:
Common The Free Movement Reduction (and Economic

Trading Policies
Agricultural between the member eventual removal) Cooperation
for Countries: of Customs Barriers
Capital
Goods
Labour
Note:
Subsequent new members of the European Union have been obliged to accept these terms.
• The Single market within the European Union established under the Single
European Act (SEA).
• Act signed in 1986 (and in force from July 1987) to establish a Single
European Market , defined as an area without frontiers in which free
movement of goods, services, people, and capital is ensured.
• The act was the first major revision of the Treaties of Roma and two
international agreements signed 25 March 1957 by Belgium, France, West
Germany, Italy, Luxembourg, and the Netherlands, which established the
European Economic Community and the European Atomic Energy Commission
(EURATOM).
• The terms of the economic treaty, which (came into effect 1 January 1958),
provided for Economic
onomic Cooperation, Reduction
eduction (and eventual removal) of
Customs Barriers,
arriers, and The Free Movement of Capital, Goods,
oods, and Labour
between the member countries, together with Common Agricultural
gricultural and
Trading Policies.
olicies. Subsequent new members of the European Union have been
obliged to accept these terms.
Page (30)
و ااد‬

The Terms of the EEC Treaty Provided for:
It provided for greater involvement of the European Parliament in

decision-making
making process, and the introduction of qualified majority voting in
the Council of Ministers (now the Council of the European Union) for some
policy areas.
In addition, it included provisions concerning collaboration in research and
development
ment and in environmental policy.
Itt was the core of the process of European economic integration, involving
the removal of obstacles to the free movement of goods, services, people,
and capital between member states of the EU.
It covers, among other benefits,
bene the elimination of customs barriers, the
liberalization of capital movements, the opening of public procurement
markets, and the mutual recognition of professional qualifications.
It came into effect on 1 January 1993.
EU Market Access Requirements are divided into two categories:

EU Market Access
1) Legislative requirements and Requirements are
divided into two
categories:
2) Non-legislative
legislative requirements
Legislative Market Access Requirements
Form an important part of the Market Access

Requirements exporters face when exporting
their products to the EU.
Non-legislative Legislative
The legislation is further divided into: Requirements Requirements
1) EU legislative requirements and

2) Implementation of national legislation in
EU Member Statess and Norway.
At present the 27 countries that made
up the EU up to 2009 plus Norway have
been included.
Non-legislative
Requirements
Consumer Health
Product Safety
Environmental
Social and Quality

Concerns.
Page (31)
و ااد‬

Part IV. The Players in the Community System
The Players in
the Community
System
The European
The The Council of
The European Economic and The Court of The Court of The European The European
Committee of the European
Central Bank Social Auditors Justice Commission Parliament
the Regions Union
Committee
The European Union institutions
The European institutions are the political bodies created

by the Treaty of Rome to build a united Europe.
Article 7 of the Treaty establishing the European
Community lists five European institutions in the strict
sense of the term:
• The European Parliament

• The Council of the European Union
• The European Commission;
• The Court of Justice;
• The Court of Auditors.
Article 3 of the Treaty on European Union provides that the institutions shall operate
within a single institutional framework.
This means that they act within
within the decisional process of the three pillars.
They interact with other players such as the European Economic and Social
Committee, the Committee of the Regions, the European Central Bank, the European
Investment Bank, the European Ombudsman and the Community
Commu
agencies, thus forming the European institutional system.
The European Parliament
The European Parliament is the only directly-elected

directly body of the
European Union. The 736 Members of the European Parliament are there to
represent you, the citizen. They are elected once every five years by voters right
across the 27 Member States of the European Union on behalf of its 500 million
citizens.
Page (32)
و ااد‬

Parliament plays an active role in drafting

legislation which has an impact on the daily lives of
its citizens:
For example on:
• Environmental protection,
• Consumer rights,
• Equal opportunities,
• Transport, and the free movement of
workers,
• Capital, services and goods.
• Parliament also has joint power with the
Council over the annual budget of the European Union.
The Council of the European Union
The Council is the EU's main decision-making

decision body.
Like the European Parliament, the Council was set up by the
founding treaties in the 1950s.
It represents the member states, and its meetings are attended by one
minister from each of the EU’s national governments.
Which ministers attend which meeting depends on what
subjects are on the agenda.
If, for example
The Council is to discuss environmental issues, the

meeting will be attended by the Environment Minister
from each EU country and it will be known as the
‘Environment Council’.
The EU’s relations with the rest of the world are dealt
with by the ‘General Affairs and External Relations Council’. But this Council
configuration also has wider responsibility for general policy issues, so its
meetings are attended by whichever Minister or State Secretary each
government chooses.
The European Commission
The Commission is both the institution and the College of Commissioners.

There is currently one commissioner from each EU country.
The Commission's role in the EU lawmaking process
The Commission's job is to represent the common European interest

to all the EU countries.
To allow it to play its role as 'guardian of the treaties' and defender of the
general interest, the Commission also has the right of initiative in the
lawmaking process.
Page (33)
و ااد‬

This means that it proposes legislative acts for the European Parliament and
the Council of Ministers to adopt.
The Commission is also responsible for putting the EU's common policies (like
the common agricultural policy and the growth and jobs strategy) into
practice and manages the EU's budget and programmes.
The Court of Justice
The Court of Justice of the European Communities (often referred to simply as

‘the Court’) was set up under the ECSC Treaty in 1952.
It is based in Luxembourg.
Since the establishment of the Court of Justice of the European Union in 1952, its
mission has been to ensure that "the law is observed" "in the interpretation and
application" of the Treaties.
As part of that mission, the Court of Justice of the European Union:
• Reviews the legality of the acts of the institutions of the European Union,
• Ensures that the Member States comply with obligations under the Treaties,
• Interprets European Union law at the request of the national courts and
tribunals.
The Court of Justice of the European Union, which has its seat in Luxembourg,
consists of three courts: the Court of Justice, the General Court (created in 1988)
and the Civil Service Tribunal (created in 2004). Since their establishment,
approximately 15 000 judgments have been delivered by the three courts.
The Court gives rulings on cases brought before it. The five most common types of
case are:
• References for a preliminary ruling;

• Actions for failure to fulfill an obligation;
• Actions for annulment;
• Actions for failure to act;
• Actions for damages.
The Court of Auditors
Since the Treaty of Maastricht the European Court of Auditors

has been recognized as one of the five institutions of the
European Communities.
The European Court of Auditors is the EU Institution established by the
Treaty to carry out the audit of EU finances.
The Court renders audit services through which it assesses the collection and
spending of EU funds.
It examines whether financial operations have been properly recorded and

disclosed, legally and regularly executed and managed so as to ensure
economy, efficiency and effectiveness. The Court communicates the results of
Page (34)

و ااد‬

its audits in clear, relevant and objective reports. It also provides its opinion
on financial management issues.
The European Court of Auditors was promoted to the rank of an institution on

1 November 1993 with the entry into force of the Maastricht Treaty, thus
enhancing its independence and authority as one among equals.
Since then the Court has been required to publish a statement of assurance
(DAS) as to the reliability of the EU accounts and the legality and reliability of
the transactions underlying the EU budget.

The Treaty of Nice of 1 February 2003 confirmed the principle that there
should be one Member from each Member State, allowed the Court the
option of being organized in chambers and highlighted the importance of the
Court's cooperation with the national audit bodies.
The European Central Bank (ECB)
The ECB is the central bank for Europe's single currency, the euro.
The ECB’s main task is to maintain the euro's purchasing power and
thus price stability in the euro area. The euro area comprises the 16
European Union countries that have introduced the euro since 1999.
ECB, ESCB and the Eurosystem
Since 1 January 1999 the European Central Bank (ECB) has been responsible for
conducting monetary policy for the euro area - the world’s largest economy after the
United States.
The euro area came into being when responsibility for monetary policy was
transferred from the national central banks of 11 EU Member States to the ECB in
January 1999. Greece joined in 2001, Slovenia in 2007, Cyprus and Malta in 2008,
Slovakia in 2009.
The creation of the euro area and of a new supranational institution, the ECB, was a
milestone in the long and complex process of European integration
The European System of Central Banks
The European System of Central Banks (ESCB) comprises:
• The European Central Bank (ECB) and

• The national central banks (NCBs) of all 27 EU Member States.
This means that the ESCB includes the national central banks of those
EU Member States that have not yet adopted the euro, be it due to their special
status (Denmark, United Kingdom) or because they have a derogation.
Euro area
The euro area consists of the EU countries that have adopted the euro.
Page (35)

و ااد‬

16 Member States of the European Union use the euro as their currency
• Belgium
• Germany
• Ireland
• Greece
• Spain
• France
• Italy
• Cyprus
• Luxembourg
• Malta
• The Netherlands
• Austria
• Portugal
• Slovenia
• Slovakia
• Finland
Non-participants
Bulgaria, Czech Republic, Denmark, Estonia, Latvia, Lithuania, Hungary, Poland,

Romania, Sweden and the United Kingdom are EU Member States but do not
currently use the single European currency.
The European Economic and Social Committee (EESC)
The European Economic and Social Committee is a consultative body set

up by the Rome Treaties in 1957 and represents the various economic and
social components of organized civil society at European level.
It is made up of 344 members, split into three groups:
Page (36)

و ااد‬

• The “Employers” group, the “Employees” group and the “Various Interests”
group.
• The EESC has six specialist sections whose work is to draw up Committee
opinions, advising the three major institutions – the Council of the European
Union, the European Commission and the European Parliament.
• The TEN section is responsible for drawing up Committee opinions in the
fields of transport, energy, the information society, infrastructure and services
of general interest.
The Committee opinions play an essential role in policy- and decision-

making at European Union level:
• They reflect wide-ranging expertise and the bringing together of the

sometimes divergent interests of organized civil society.
Each year, the TEN section draws up approximately 30 opinions, a quarter of which
are own- initiative opinions or exploratory opinions.
Page (37)

و ااد‬

Part V. EU Economy
The European Union is the world's largest single market and by far the most
important trading partner for developing countries.
The wide range of preferential and bilateral trade agreements that the EU is
offering partners in the developing world, allows them to benefit from as
open access as possible to the EU market.
This is a degree of openness unmatched by any other major economy and
demonstrates the EU's commitment to putting trade at the service of
development not only in theory, but in practice.
• Internally, the EU is attempting to lower trade barriers, adopt a common

currency, and move toward convergence of living standards.
• Internationally, the EU aims to bolster Europe's trade position and its political
and economic power.
• Because of the great differences in per capita income among member states
(from $7,000 to $69,000) and historic national animosities, the EU faces
difficulties in devising and enforcing common policies.
For example
• Since 2003 Germany and France have flouted the member states' treaty
obligation to prevent their national budgets from running more than a 3%
deficit.
• In 2004 and 2007, the EU admitted 10 and two countries, respectively, that
are, in general, less advanced technologically and economically than the
other 15.
• Eleven established EU member states introduced the euro as their common
currency on 1 January 1999 (Greece did so two years later), but the UK,
Sweden, and Denmark chose not to participate.
• Of the 12 most recent member states, only Slovenia (1 January 2007) and
Cyprus and Malta (1 January 2008) have adopted the euro; the remaining
nine are legally required to adopt the currency upon meeting EU's fiscal and
monetary convergence criteria.
GDP - (Purchasing Power Parity)
$14.82 trillion (2008 est.)

$14.66 trillion (2007)
$14.34 trillion (2006)
Note: data are in 2008 US dollars
GDP - (official exchange rate)
Page (38)

و ااد‬

GDP – Real Growth Rate)
1% (2008 est.)
3% (2007 est.)
3.3% (2006 est.)
GDP - (Per Capital)
$33,400 (2008 est.)

$33,400 (2007 est.)
$32,600 (2006 est.)
Note: data are in 2008 US dollars
GDP – Composition by Sector
Agriculture: 2%
Industry: 26.8%
Services: 71.1% (2008 est.)
Labor Force
224.8 million (2008 est.)
Labor Force – by Occupation
Agriculture: 5.6%
Industry: 27.7%
Services: 66.7%
Note: the remainder is in miscellaneous public and private sector industries and
services (2007 est.)
Unemployment Rate
7.5% (2008 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: 2.8%

Highest 10%: 25.2% (2001 est.)
Investment (Gross Fixed)
21% of GDP (2008 est.)
Inflation Rate (Consumer Prices)
3% (2008 est.)
Page (39)

و ااد‬

Central Bank Discount Rate
4%
Note: this is the European Central Bank's
rate on the marginal lending facility, which
offers overnight credit to banks from the
euro system (31 December 2008) .
Commercial Bank Prime Lending Rate
8.03% (31 December 2007)

2007
Stock of Money
$5.679 trillion
Note: this is the quantity of money,
money M1, for
the euro area, converted into US dollars at
the exchange rate for the date indicated; it
excludes the stock of money carried by non-
non
euro zone members of the European Union
(31 December 2008)
Stock of Quasi Money
$11.38 trillion
Note: this is the quantity of quasi money,
M2, for the euro area, converted into US
dollars at the exchange rate for the date
indicated; it excludes the stock of quasi
money carried by non-euro
euro zone members
of the European Union (3131 December 2008)
Stock of Domestic Credit
$20.94 trillion
Note: this figure refers to the euro area
only; it excludes credit data for members of
the EU outside the euro zone (31 December
2007)
Market Value of Publicly Traded Shares

.)
Agriculture – Products
Wheat,
Barley,
Oilseeds,
Page (40)
و ااد‬

Sugar Beets,
Wine,
Grapes;
Dairy Products,
Cattle, Sheep,
Pigs,
Poultry;
Fish.
Industries
Among the worlds largest and most technologically advanced, the European Union
industrial base includes:
• Ferrous and non-ferrous metal production and processing,
• Metal products,
• Petroleum,
• Coal,
• Cement,
• Chemicals,
• Pharmaceuticals,
• Aerospace,
• Rail transportation equipment,
• Passenger and commercial vehicles,
• Construction equipment,
• Industrial equipment,
• Shipbuilding,
• Electrical power equipment,
• Machine tools and automated manufacturing systems,
• Electronics and telecommunications equipment,
• Fishing,
• Food and beverage processing,
• Furniture,
• Paper,
• Textiles,
• Tourism
Industrial Production Growth Rate
-0.4% (2008 est.)
Electricity – Production
3.103 trillion KWh (2007 est.)
Electricity – Consumption
2.926 trillion kWh (2007 est.)
Oil – Production
2.676 million bbl/day (2007 est.)
Page (41)

و ااد‬

Oil - Consumption
Oil – Exports
Oil – Imports
Oil – Proved Reserves
6.146 billion bbl (1 January 2008)
Natural Gas – Production
197.8 billion cu m (2007 est.)
Natural Gas – Consumption
497.3 billion cu m (2007 est.)
Natural Gas – Proved Reserves
2.476 trillion cu m (1 January 2008 est.)
Current Account Balance
$51.4 billion (2008 est.)
Exports
$1.952 trillion; note - external exports, excluding intra-EU trade (2007)
Exports – Commodities
• Machinery,
• Motor vehicles,
• Aircraft,
• Plastics,
• Pharmaceuticals and other chemicals,
• Fuels,
• Iron and steel,
• Nonferrous metals,
• Wood pulp and paper products,
• Textiles,
• Meat,
• Dairy products,
Page (42)

و ااد‬

• Fish,
• Alcoholic beverages.
Imports
$1.69 trillion f.o.b.; note - external imports, excluding intra-EU trade (2007
2007)
Imports – Commodities
• Machinery,
• Vehicles,
• Aircraft,
• Plastics,
• Crude oil,
• Chemicals,
• Textiles,
• Metals,
• Foodstuffs,
• Clothing
Exchange Rates
• Euros per US dollar - 0.6827 (2008 est.),

• 0.7345 (2007),
• 0.7964 (2006),
• 0.8041 (2005),
• 0.8054 (2004)
EU Countries Real GDP Growth Rate 2009
European Union (27 countries)
Page (43)
و ااد‬

The EU budget 2010
The 2010 budget has been adopted during

the European Parliament plenary on 17th
December 2009 and amounts to €141,5bn.
Economic recovery is at the heart of next

year’s spending and the proposal channels
the biggest share of funds (45%) into
growth and employment measures – a 3.3
% rise on 2009 – to help restore
competitiveness across the Union.
Funds for major programmes linked to
research and energy will increase by more
than 19.1% and cash for cohesion policy
will grow too, with the EU-12 set to
receive 52% of cohesion and Structural
Funds.
All headings in the budget will see an
increase, reaching a total of €141.4 bn in
commitments (1.20% of GNI) and
€122.9bn in payments (1.04% of GNI).
Page (44)

و ااد‬

The EU budget is paid for by the 27 member

countries
Total payments in 2007 - €117.5bn

In 2007, five countries:
• Germany,
• France,
• Italy,
• The UK, and
• Spain
Contributed nearly half of the budget.
In fact, Germany alone - Europe's largest

economy - paid more than the 19 lowest-paying
member states combined.
Each country's payment is divided into three parts:
• A fixed percentage of gross national income (GNI),

• Customs duties collected on behalf of the EU (known as "traditional own
resources")
• A percentage of VAT income.
The GNI-based contribution is the largest part of each country's payment and is set
each year by the EU to balance the budget.
There is one other important part of the revenue calculations:
The UK rebate, which returns to the UK two-thirds of its payments.

This rebate is paid for by the other 26 countries as a fixed amount of their gross
national income.
Economic of the European Union, 2008
• The year 2008 posed challenges for the European Union and its development
partners across the world.
• Soaring food and energy prices and the global financial crisis tested the EU’s
ability to meet ongoing aid commitments and deal with new needs.
• The European Commission responded swiftly to off set the impact of high
food prices on poor countries.
• The European Union demonstrated its reliability by setting up a €1 billion
Food Facility for 2008-2010 from the EU budget by the end of December.
• In the meantime, the Commission increased its budget for humanitarian food
aid from the emergency aid reserve with €140 million and redirected money
earmarked for food security to the most vulnerable populations.
• Furthermore, it called up €200 million from the unallocated reserve in the
10th European Development Fund (EDF).
Page (45)

و ااد‬

• The Commission also undertook to increase levels of macro-financial

assistance to countries in need on a case-by-case basis.
• Despite the economic crisis, the EU and its Member States reaffirmed their
commitments to increase development assistance in coming years.
•
• Responding in a flexible and effective way to the situation as it unfolds will
remain a key objective for 2009.
A truly global dimension
The global nature of the EU’s external policies was clearly

evident in 2008 as the EU deepened its relations with
partners across the world and sought their cooperation on
global issues like climate and energy, trade liberalization
and the attainment of the Millennium Development Goals
(MDGs) of 2000 by the target date of 2015.
In May, the EU put its relations with Latin America on a
new footing at a summit meeting in Lima.
Leaders from the two sides adopted an agenda for joint
action to focus on two themes:
• Social cohesion and
• Sustainable development.
The EU held it's first-ever summit with South Africa in July.

Georgia became an unscheduled centre of attention in
August as a result of the conflict with Russia.
The Commission quickly put together a three-year package of up to €500 million.
It mobilized a first payment of € 60 million for internally-displaced persons in Georgia
before the end of the year.
The EU devoted a lot of attention in 2008 to its neighbors in Eastern Europe and in
the Mediterranean basin.
It launched the Union for the Mediterranean with its southern partners in July, while
in December the Commission proposed a new Eastern Partnership for its eastern
neighbors.
Negotiations on a new partnership agreement with Russia, frozen by the EU because
of the conflict with Georgia, were unblocked at an EU-Russia summit in November.
During the year, the EU provided a total of €498 million in assistance to the
Palestinians mainly to cover the running costs of the Palestinian Authority and to
support the Palestinian Reform and Development Plan.
Figures on poverty reduction confirm the trend of

previous years, with 35 % of Official
Development Assistance (ODA) going to least
developed countries.
The reduction of ODA to Other Low-Income Countries

(OLIC) is mainly the result of a revision in the list of
Page (46)

و ااد‬

ODA recipients carried out by the OECD’s Development Assistance Committee (DAC).
In the new DAC list, which took effect in 2008, a number of OLICs have been
reclassified as Lower Middle-Income Countries: Cameroon, Cape Verde, India,
Republic of Moldova, Mongolia, Nicaragua, and Republic of Congo.
Monitoring the Paris Declaration: results of the 2008 survey
The first challenge for developing countries is to improve the quality of their poverty-
reduction strategies (better prioritization, stronger links with national budgets and
more results-oriented).
The second is to improve and reform their national systems for public financial
management and procurement.
Donors should use country systems more and increase the predictability of aid.
They should also refrain from setting up parallel project implementation units, which
undermine local capacity development, make more use of programme-based
approaches and better coordinate in-country missions and analytical studies.
In the light of these recommendations,
The Commission should be able to meet the following commitments:
• Coordinate technical cooperation (including missions and analytical studies),
• Cut the number of parallel project implementation units, and
• Raise aid predictability.
Major challenges for the Commission concern the use of country systems.
Economic Survey of the European Union, 2009
• The European Union is facing severe challenges from the financial crisis and
the Worst global recession in the past fifty years.
• The Community has responded to the crisis proactively, consistent with the
broad framework for policy actions provided by the European Economic
Recovery Plan.
• Actions have been taken to stabilize financial markets and support the
economy.
• An ambitious agenda for financial services reform is underway to improve
macro- and micro-prudential regulation and supervision, and the ECB has cut
its policy rate significantly.
• It is essential that policy actions to support economic activity during the crisis
do not imperil the prospects for recovery or endanger the single market and,
where necessary, some measures must be withdrawn once the economy
recovers.
• Fiscal measures should ideally offer dual benefits: mitigating the impact of
the recession on output and jobs as well as providing longer term benefits.
• Structural reforms must be accelerated in the years ahead to help prevent

future financial crises, enhance resilience to adverse economic shocks and
improve both longer term growth prospects and the long-term sustainability
of the public finances.
Page (47)

و ااد‬

Sources: OECD
1. GDP per hour worked.

2. Total hours worked per capita.
3. EU15 refers to member states that joined the Union before 2004.
EU12 refers to the new member states who have joined the Union since 2004.
Source: Mourre, G. (2009), “What Explains the Differences in Income and

Labour Utilization and Drives
Labour and Economic Growth in Europe – A
GDP Accounting Perspective”, European
Economy, Economic Papers 354, January.
Page (48)

و ااد‬

Shares of Global Output
The EU Economy
conomy in the World
With a combined GDP of €12.5 trillion ($A21.1

trillion) in 2008, the EU was the world’s largest
economy, representing approximately 30% of
global GDP.
In 2008, the EU was the world’s largest two-way

two
trader of merchandise goods (excluding intra-EU
intra
trade), being both the world’s largest exporter and
largest importer, accounting for roughly 17% of global merchandise trade.
trade Figure 5
(below) and Table 1 (overleaf
overleaf) rank the EU and Australia in world merchandise trade
trad
against other major economic partners.
Leading exporters and importers in

world merchandise trade,
trade 2008
In regard to services, the EU was

responsible for 28% of global services
exports and 24% of services imports in
2007 (latest
latest data available,
available excluding intra-
EU trade). This also makes the EU the
world’s largest market in services,
accounting for 26% of global services trade.
trade
In confronting the financial

crisis, the EU remains a
competitive economy which is
attributable in large part to its
capacity to implement structural
reform. The ‘Global
Competitiveness Report 2009-10’
2009
produced by the World Economic
Forum found that five of the
world’s ten most competitive
countries were EU Member States,
States with 19 out of the 27 Member States featuring in
the top 50.
A separate report, prepared by The Economist Intelligence Unit, forecast that six EU
Members States would be in the top 15 countries worldwide with the best business
environment over the next five years (2009-2013), with Australia ranked 7th out of
the countries surveyed.
Page (49)
و ااد‬

The End Summary of Study's
If you want our full studies Please Contact us:
The Egyptian Center for Studies of Export & Import (ECSEI)
www.ecsei.com
www.ecsei-eg.com
[email protected]
[email protected]
Direct Contact:
0020-123514312
General Manager
Mr. Medhat Saad Eldin
Legal & Economic Consultation
Our Studies
Page (50)

EU Customs 2010

Uploaded by

Copyright:

Available Formats

EU Customs 2010

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

EU Customs 2010

Uploaded by

Copyright:

Available Formats

The Egyptian Center for Studies of Export & Import ‫ا

Gateways to European Union Customs Code

Summary This is a Summary of Study's - For full study Contact us Summary

The objective of this study's

Our Studies goal is to provide general information about effective EU customs

To Support the Egyptian Exporters, Shippers

The EU Customs Policy

It is nearly impossible to have up-to-date knowledge of Community customs

Our Reference: EU websites, EU Members website and others …

www.ecsei.com www.ecsei-eg.com Email: [email protected] [email protected]

Gateways to European Union Customs Code

The EU is a springboard to extend further commercial activities in North Africa, the

The European Union is based on the rule of law

The EU Common Commercial Policy

www.ecsei.com www.ecsei-eg.com Email: [email protected] [email protected]

Gateways to European Union Customs Code

A primary objective of the CCP

Is to secure uniformity of treatment by EC members in trade relations with third

The Customs Union

The European Union (EU) acts in the area of international trade

The customs union is the essential element of the internal

Common procedures and rules were drawn up together with a

The other essential element of the customs union is that goods

www.ecsei.com www.ecsei-eg.com Email: [email protected] [email protected]

Gateways to European Union Customs Code

Tariff Policy is the first step towards customs union

First Step Towards Customs Union

Common Customs Tariff (CCT) entered

As a consequence were eliminated

The Tariff barriers and quantity

Achieving a tariff union among the six

The Community Customs Code Council Regulation (EEC) No 2913/92

unity Customs Code and the Regulation that followed are

It provides for identical rules and procedures for all Member

Gateways to European Union Customs Code

On 1st January 1993,

The Community Customs Code is the result of more than 35 years of

Goods can now be transferred from one EU Country to another

The Main changes made to customs legislation by the modernized Code:

The Code has been modernized in response to a number of

Gateways to European Union Customs Code

Our View and work in this study's :

The Community's Basic Customs Legislation

Council Regulation 2913/92/EEC

Council Regulation 2454/93/EEC

Council Regulation 918/83/EEC

Council Regulation 2658/87/EEC

Gateways to European Union Customs Code

Two Major Initiatives Phased in

The Electronic Customs plan

Modernization of the Community

Gateways to European Union Customs Code

The Electronic customs initiative is essentially based on three pieces

The Regulation (EC) 648/2005 on the Security

The Decision No 70/2008/EC/EC of the European

The Regulation No 450/2008 EC, the

The Structure of the Tax to

The minimum rates of duty

Gateways to European Union Customs Code

Eliminated import VAT Eliminated customs

Services (incl. non-market services) % of total 71.8 71.7 76.9) 70.1