BETA


2014/0165(COD) Avoiding trade diversion into the EU of certain key medicines. Codification

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead JURI FERRARA Laura (icon: EFDD EFDD) GERINGER DE OEDENBERG Lidia Joanna (icon: S&D S&D)
Former Responsible Committee JURI
Lead committee dossier:
Legal Basis:
TFEU 207-p2

Events

2016/12/09
   EC - Follow-up document
Details

The Commission presented a report on the application of Regulation (EU) 2016/793 of the European Parliament and of the Council to avoid trade diversion into the European Union of certain key medicines.

The Regulation puts in place safeguards to prevent diversion of medicines from poor developing countries into the European Union.

Supplying poor and developing countries with medicines at sustainable low prices is one of the objectives in the fight against the major diseases of HIV/AIDS, malaria and tuberculosis. In order to achieve this, the European Commission has consistently advocated a policy of "tiered pricing" for medicines, combined with market segmentation between rich and poor countries.

This report is the ninth Report under Article 12(2) of the Regulation which foresees biennially reports by the Commission to the European Parliament and to the Council on the volumes exported under tiered prices registered under the Regulation. It covers the period from 1 January 2014 to 31 December 2015.

Evaluation : the Regulation was evaluated on four criteria: effectiveness, efficiency, coherence and relevance. It was assessed against the REFIT criteria of being fit for purpose, having delivered on its objectives at minimum cost and whether there is potential for simplification.

The analysis of stakeholders' and experts' input by the external contractor found no evidence that there was scope for improving the effectiveness of the Regulation by modifying the list of countries of destination.

Exported products : one company, GlaxoSmithKline / ViiV Healthcare, has medicines registered under the Regulation. These products were registered in 2004 and all aim at the treatment of HIV/AIDS.

During the reference period, six products were exported under tiered prices to China, Honduras, Indonesia, Kenya, Moldova, Nigeria, South Africa, and Uganda.

The products were sold to the countries listed at the price of production, with no mark-up, and therefore in accordance with the criteria of the Regulation.

2016/05/24
   Final act published in Official Journal
Details

PURPOSE: the codification of Council Regulation (EC) No 953/2003 of 26 May 2003 to avoid trade diversion into the European Union of certain key medicines.

LEGISLATIVE ACT: Regulation (EU) 2016/793 of the European Parliament and of the Council of 11 May 2016 to avoid trade diversion into the European Union of certain key medicines (codification).

CONTENT: in the interests of legal clarity and transparency, this Regulation codifies and repeals Council Regulation (EC) No 953/2003 which had been substantially amended several times.

Price segmentation between developed country markets and the poorest developing country markets is necessary to ensure that the poorest developing countries are supplied with essential pharmaceutical products at heavily reduced prices. Therefore, those heavily reduced prices cannot be understood as a reference for the price to be paid for the same products in developed country markets.

This codified Regulation prohibits the importation into the European Union of tiered-priced products.

Derogations are laid down for certain situations under the strict provision that it is ensured that the final destination of the products in question is one of the countries listed in the Regulation’s Annex II.

‘Tiered-priced products’ are any pharmaceutical products used in the prevention, diagnosis or treatment of a disease such as HIV/AIDS, malaria, tuberculosis and related oppotunistic diseases , which are priced in accordance with one of the optional price calculations set out in the Regulation, verified by the Commission or an independent auditor, and and entered in the list of tiered-priced products in Annex I of the Regulation.

More specifically, the Regulation sets:

the criteria for establishing what is a tiered priced product; the conditions under which the customs authorities shall take action; the measures which shall be taken by the competent authorities in the Member States.

The Commission shall monitor on an annual basis the volumes of exports of tiered-priced products listed in Annex I and exported to the countries of destination. It shall report biennially to the European Parliament and to the Council on the volumes exported under tiered prices.

The European Parliament may, within one month of submission of the Commission's report, invite the Commission to an ad hoc meeting of its responsible committee to present and explain any issues related to the application of this Regulation. No later than six months from the date of submission of the report to the European Parliament and to the Council, the Commission shall make the report public.

ENTRY INTO FORCE: 13.6.2016.

DELEGATED ACTS: the Commission may adopt delegated acts to add products to the list of tiered-priced products covered by the Regulation. The power to adopt such delegated acts shall be conferred on the Commission for a period of 5 years from 20 February 2014 (a period that can be tacitly extended for periods of an identical duration). The European Parliament or the Council may raise objections to a delegated act within three months of notification (which may be extended by three months.) If Parliament or Council raise objections, the delegated act will not enter into force.

2016/05/11
   CSL - Draft final act
Documents
2016/05/11
   CSL - Final act signed
2016/05/11
   EP - End of procedure in Parliament
2016/04/11
   EP/CSL - Act adopted by Council after Parliament's 1st reading
2016/04/11
   CSL - Council Meeting
2016/04/07
   EC - For information
Documents
2016/04/07
   EC - For information
Documents
2016/03/09
   EP - Decision by Parliament, 1st reading
Details

The European Parliament adopted by 664 votes to 29, with 4 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council to avoid trade diversion into the European Union of certain key medicines (codified text).

Parliament adopted its position at first reading, taking over the Commission proposal. The proposal in question aims to codify Council Regulation (EC) No 953/2003 which has been substantially amended several times. The proposal contains a straightforward codification of the existing texts without any change in their substance.

The proposed codified Regulation serves the purpose of preventing tiered priced products from being imported into the Union . Exemptions are laid down for certain situations on the strict condition that it is ensured that the final destination of the products in question is one of the countries listed in Annex II. More specifically, the proposal lays down:

the criteria for establishing what is a tiered-priced product; the conditions under which the customs authorities shall take action; the measures which shall be taken by the competent authorities in the Member States.

The term ‘tiered-priced product’ shall mean any pharmaceutical product which is used in the prevention, diagnosis or treatment of a disease, referred to in Annex IV, and which is priced in accordance with one of the optional price calculations set out in the Regulation, verified by the Commission or an independent auditor and entered in the list of tiered-priced products set out in Annex I.

Documents
2016/02/24
   EP - Committee report tabled for plenary, 1st reading
Details

The Committee on Legal Affairs adopted the report by Laura FERRARA (EFD, IT) on the proposal for a regulation of the European Parliament and of the Council to avoid trade diversion into the European Union of certain key medicines (codified text).

The committee recommended the European Parliament to adopt its position at first reading, taking over the Commission proposal as adapted to the recommendations of the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission.

According to the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission, the proposal in question contains a straightforward codification of the existing texts without any change in their substance.

Price segmentation between developed country markets and the poorest developing country markets is necessary to ensure that the poorest developing countries are supplied with essential pharmaceutical products at heavily reduced prices. Therefore, those heavily reduced prices cannot be understood as a reference for the price to be paid for the same products in developed country markets.

The proposed codified Regulation serves the purpose of preventing tiered priced products from being imported into the Union . Exemptions are laid down for certain situations.

Documents
2015/01/28
   EP - Committee referral announced in Parliament, 1st reading
2014/12/16
   EC - For information
2014/11/11
   EP - Vote in committee, 1st reading
2014/10/10
   EP - Committee draft report
Documents
2014/10/09
   EP - FERRARA Laura (EFDD) appointed as rapporteur in JURI
2014/05/28
   EC - Legislative proposal published
Details

PURPOSE: codification of Council Regulation (EC) No 953/2003 of 26 May 2003 to avoid trade diversion into the European Union of certain key medicines.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: Council Regulation (EC) No 953/2003 has been substantially amended several times. On 1 April 1987, the Commission decided to instruct its staff that all acts should be codified after no more than ten amendments, stressing that this is a minimum requirement. The Conclusions of the Presidency of the Edinburgh European Council (December 1992) confirmed this, stressing the importance of codification.

The European Parliament, the Council and the Commission have agreed, by an interinstitutional agreement dated 20 December 1994, that an accelerated procedure may be used for the fast-track adoption of codification instruments.

CONTENT: in the interests of clarity and transparency of Union law, the purpose of this proposal is to undertake a codification of Council Regulation (EC) No 953/2003 to avoid trade diversion into the European Union of certain key medicines.

The new Regulation will supersede the various acts incorporated in it ; it fully preserves the content of the acts being codified and hence does no more than bring them together with only such formal amendments as are required by the codification exercise itself.

Price segmentation between developed country markets and the poorest developing country markets is necessary to ensure that the poorest developing countries are supplied with essential pharmaceutical products at heavily reduced prices. Therefore, those heavily reduced prices cannot be understood as a reference for the price to be paid for the same products in developed country markets.

The proposed codified Regulation serves the purpose of preventing tiered priced products from being imported into the Union . Exemptions are laid down for certain situations under the strict provision that it is ensured that the final destination of the products in question is one of the countries listed in Annex II. More specifically, the proposed Regulation lays down:

the criteria for establishing what is a tiered priced product; the conditions under which the customs authorities shall take action; the measures which shall be taken by the competent authorities in the Member States.

Documents

Activities

Votes

A8-0038/2016 - Laura Ferrara - Vote unique #

2016/03/09 Outcome: +: 664, -: 29, 0: 4
DE IT FR PL ES RO GB BE CZ PT HU SE AT NL EL BG FI SK LT HR DK IE SI LV CY MT LU EE
Total
88
69
68
47
51
31
64
21
20
19
19
18
18
24
20
15
12
12
11
11
11
10
8
7
6
6
5
5
icon: PPE PPE
204
2

Luxembourg PPE

2

Estonia PPE

For (1)

1
icon: S&D S&D
177

Netherlands S&D

3

Bulgaria S&D

2

Croatia S&D

2

Ireland S&D

For (1)

1

Slovenia S&D

For (1)

1

Latvia S&D

1

Cyprus S&D

2

Malta S&D

3

Luxembourg S&D

For (1)

1

Estonia S&D

For (1)

1
icon: ALDE ALDE
65

Romania ALDE

3

United Kingdom ALDE

1

Austria ALDE

For (1)

1

Croatia ALDE

2

Denmark ALDE

2

Ireland ALDE

For (1)

1

Slovenia ALDE

For (1)

1

Latvia ALDE

1

Luxembourg ALDE

For (1)

1

Estonia ALDE

2
icon: ECR ECR
65

Italy ECR

2

Romania ECR

For (1)

1

Czechia ECR

2

Netherlands ECR

2

Greece ECR

Against (1)

1

Bulgaria ECR

2
2

Slovakia ECR

2

Lithuania ECR

1

Croatia ECR

For (1)

1
icon: Verts/ALE Verts/ALE
47

Belgium Verts/ALE

2

Hungary Verts/ALE

2

Sweden Verts/ALE

3

Austria Verts/ALE

3

Netherlands Verts/ALE

2

Finland Verts/ALE

For (1)

1

Lithuania Verts/ALE

For (1)

1

Croatia Verts/ALE

For (1)

1

Denmark Verts/ALE

For (1)

1

Slovenia Verts/ALE

For (1)

1

Latvia Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1

Estonia Verts/ALE

For (1)

1
icon: GUE/NGL GUE/NGL
48

France GUE/NGL

2

United Kingdom GUE/NGL

1

Czechia GUE/NGL

2

Sweden GUE/NGL

For (1)

1

Netherlands GUE/NGL

3

Finland GUE/NGL

For (1)

1

Denmark GUE/NGL

For (1)

1

Cyprus GUE/NGL

2
icon: ENF ENF
36
2

Romania ENF

1

United Kingdom ENF

Against (1)

1

Belgium ENF

For (1)

1

Netherlands ENF

4
icon: NI NI
13

Germany NI

For (1)

Against (1)

2

Poland NI

1

United Kingdom NI

For (1)

1

Hungary NI

2
icon: EFDD EFDD
41

France EFDD

1

Poland EFDD

1

Czechia EFDD

Abstain (1)

1

Sweden EFDD

2

Lithuania EFDD

For (1)

1

History

(these mark the time of scraping, not the official date of the change)

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procedure/Other legal basis
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procedure/instrument
Old
  • Regulation
  • Repealing Regulation (EC) No 953/2003
New
Regulation
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rapporteur
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shadows
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events/3/docs/0/url
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  • date: 2014-05-28T00:00:00 docs: url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=FR&type_doc=COMfinal&an_doc=2014&nu_doc=0319 title: COM(2014)0319 type: Legislative proposal published celexid: CELEX:52014PC0319:EN body: EC commission: DG: url: http://ec.europa.eu/dgs/legal_service/ title: Legal Service Commissioner: BARROSO José Manuel type: Legislative proposal published
  • date: 2014-11-11T00:00:00 body: EP type: Vote in committee, 1st reading/single reading committees: body: EP shadows: group: S&D name: GERINGER DE OEDENBERG Lidia Joanna responsible: True committee: JURI date: 2014-10-09T00:00:00 committee_full: Legal Affairs rapporteur: group: EFD name: FERRARA Laura body: EP responsible: True committee_full: Legal Affairs committee: JURI
  • date: 2015-01-28T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP shadows: group: S&D name: GERINGER DE OEDENBERG Lidia Joanna responsible: True committee: JURI date: 2014-10-09T00:00:00 committee_full: Legal Affairs rapporteur: group: EFD name: FERRARA Laura body: EP responsible: True committee_full: Legal Affairs committee: JURI
  • body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2016-0038&language=EN type: Committee report tabled for plenary, 1st reading/single reading title: A8-0038/2016 type: Committee report tabled for plenary, 1st reading/single reading committees: body: EP shadows: group: S&D name: GERINGER DE OEDENBERG Lidia Joanna responsible: True committee: JURI date: 2014-10-09T00:00:00 committee_full: Legal Affairs rapporteur: group: EFD name: FERRARA Laura body: EP responsible: True committee_full: Legal Affairs committee: JURI date: 2016-02-24T00:00:00
  • date: 2016-03-09T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0076 type: Decision by Parliament, 1st reading/single reading title: T8-0076/2016 body: EP type: Decision by Parliament, 1st reading/single reading
  • date: 2016-04-11T00:00:00 body: CSL type: Council Meeting council: Agriculture and Fisheries meeting_id: 3459
  • date: 2016-04-11T00:00:00 body: EP/CSL type: Act adopted by Council after Parliament's 1st reading
  • date: 2016-05-11T00:00:00 body: CSL type: Final act signed
  • date: 2016-05-11T00:00:00 body: EP type: End of procedure in Parliament
  • date: 2016-05-24T00:00:00 docs: url: http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32016R0793 title: Regulation 2016/793 url: http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2016:135:TOC title: OJ L 135 24.05.2016, p. 0039 type: Final act published in Official Journal
commission
  • body: EC dg: Legal Service commissioner: BARROSO José Manuel
committees/0
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  • body: CSL type: Council Meeting council: Agriculture and Fisheries meeting_id: 3459 url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=SMPL&ROWSPP=25&RESULTSET=1&NRROWS=500&DOC_LANCD=EN&ORDERBY=DOC_DATE+DESC&CONTENTS=3459*&MEET_DATE=11/04/2016 date: 2016-04-11T00:00:00
docs
  • date: 2014-10-10T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE539.695 title: PE539.695 type: Committee draft report body: EP
  • date: 2014-12-16T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2014/0737/COM_COM(2014)0737_EN.pdf title: COM(2014)0737 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2014&nu_doc=0737 title: EUR-Lex type: For information body: EC
  • date: 2016-04-07T00:00:00 docs: title: SWD(2016)0124 type: For information body: EC
  • date: 2016-04-07T00:00:00 docs: title: SWD(2016)0125 type: For information body: EC
  • date: 2016-05-11T00:00:00 docs: url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=ADV&RESULTSET=1&DOC_ID=[%n4]%2F16&DOC_LANCD=EN&ROWSPP=25&NRROWS=500&ORDERBY=DOC_DATE+DESC title: 00005/2016/LEX type: Draft final act body: CSL
  • date: 2016-12-09T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2016/0785/COM_COM(2016)0785(ANN)_EN.pdf title: COM(2016)0785 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2016&nu_doc=0785 title: EUR-Lex summary: The Commission presented a report on the application of Regulation (EU) 2016/793 of the European Parliament and of the Council to avoid trade diversion into the European Union of certain key medicines. The Regulation puts in place safeguards to prevent diversion of medicines from poor developing countries into the European Union. Supplying poor and developing countries with medicines at sustainable low prices is one of the objectives in the fight against the major diseases of HIV/AIDS, malaria and tuberculosis. In order to achieve this, the European Commission has consistently advocated a policy of "tiered pricing" for medicines, combined with market segmentation between rich and poor countries. This report is the ninth Report under Article 12(2) of the Regulation which foresees biennially reports by the Commission to the European Parliament and to the Council on the volumes exported under tiered prices registered under the Regulation. It covers the period from 1 January 2014 to 31 December 2015. Evaluation : the Regulation was evaluated on four criteria: effectiveness, efficiency, coherence and relevance. It was assessed against the REFIT criteria of being fit for purpose, having delivered on its objectives at minimum cost and whether there is potential for simplification. The analysis of stakeholders' and experts' input by the external contractor found no evidence that there was scope for improving the effectiveness of the Regulation by modifying the list of countries of destination. Exported products : one company, GlaxoSmithKline / ViiV Healthcare, has medicines registered under the Regulation. These products were registered in 2004 and all aim at the treatment of HIV/AIDS. During the reference period, six products were exported under tiered prices to China, Honduras, Indonesia, Kenya, Moldova, Nigeria, South Africa, and Uganda. The products were sold to the countries listed at the price of production, with no mark-up, and therefore in accordance with the criteria of the Regulation. type: Follow-up document body: EC
events
  • date: 2014-05-28T00:00:00 type: Legislative proposal published body: EC docs: url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=FR&type_doc=COMfinal&an_doc=2014&nu_doc=0319 title: EUR-Lex title: COM(2014)0319 summary: PURPOSE: codification of Council Regulation (EC) No 953/2003 of 26 May 2003 to avoid trade diversion into the European Union of certain key medicines. PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: Council Regulation (EC) No 953/2003 has been substantially amended several times. On 1 April 1987, the Commission decided to instruct its staff that all acts should be codified after no more than ten amendments, stressing that this is a minimum requirement. The Conclusions of the Presidency of the Edinburgh European Council (December 1992) confirmed this, stressing the importance of codification. The European Parliament, the Council and the Commission have agreed, by an interinstitutional agreement dated 20 December 1994, that an accelerated procedure may be used for the fast-track adoption of codification instruments. CONTENT: in the interests of clarity and transparency of Union law, the purpose of this proposal is to undertake a codification of Council Regulation (EC) No 953/2003 to avoid trade diversion into the European Union of certain key medicines. The new Regulation will supersede the various acts incorporated in it ; it fully preserves the content of the acts being codified and hence does no more than bring them together with only such formal amendments as are required by the codification exercise itself. Price segmentation between developed country markets and the poorest developing country markets is necessary to ensure that the poorest developing countries are supplied with essential pharmaceutical products at heavily reduced prices. Therefore, those heavily reduced prices cannot be understood as a reference for the price to be paid for the same products in developed country markets. The proposed codified Regulation serves the purpose of preventing tiered priced products from being imported into the Union . Exemptions are laid down for certain situations under the strict provision that it is ensured that the final destination of the products in question is one of the countries listed in Annex II. More specifically, the proposed Regulation lays down: the criteria for establishing what is a tiered priced product; the conditions under which the customs authorities shall take action; the measures which shall be taken by the competent authorities in the Member States.
  • date: 2014-11-11T00:00:00 type: Vote in committee, 1st reading/single reading body: EP
  • date: 2015-01-28T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2016-02-24T00:00:00 type: Committee report tabled for plenary, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2016-0038&language=EN title: A8-0038/2016 summary: The Committee on Legal Affairs adopted the report by Laura FERRARA (EFD, IT) on the proposal for a regulation of the European Parliament and of the Council to avoid trade diversion into the European Union of certain key medicines (codified text). The committee recommended the European Parliament to adopt its position at first reading, taking over the Commission proposal as adapted to the recommendations of the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission. According to the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission, the proposal in question contains a straightforward codification of the existing texts without any change in their substance. Price segmentation between developed country markets and the poorest developing country markets is necessary to ensure that the poorest developing countries are supplied with essential pharmaceutical products at heavily reduced prices. Therefore, those heavily reduced prices cannot be understood as a reference for the price to be paid for the same products in developed country markets. The proposed codified Regulation serves the purpose of preventing tiered priced products from being imported into the Union . Exemptions are laid down for certain situations.
  • date: 2016-03-09T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0076 title: T8-0076/2016 summary: The European Parliament adopted by 664 votes to 29, with 4 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council to avoid trade diversion into the European Union of certain key medicines (codified text). Parliament adopted its position at first reading, taking over the Commission proposal. The proposal in question aims to codify Council Regulation (EC) No 953/2003 which has been substantially amended several times. The proposal contains a straightforward codification of the existing texts without any change in their substance. The proposed codified Regulation serves the purpose of preventing tiered priced products from being imported into the Union . Exemptions are laid down for certain situations on the strict condition that it is ensured that the final destination of the products in question is one of the countries listed in Annex II. More specifically, the proposal lays down: the criteria for establishing what is a tiered-priced product; the conditions under which the customs authorities shall take action; the measures which shall be taken by the competent authorities in the Member States. The term ‘tiered-priced product’ shall mean any pharmaceutical product which is used in the prevention, diagnosis or treatment of a disease, referred to in Annex IV, and which is priced in accordance with one of the optional price calculations set out in the Regulation, verified by the Commission or an independent auditor and entered in the list of tiered-priced products set out in Annex I.
  • date: 2016-04-11T00:00:00 type: Act adopted by Council after Parliament's 1st reading body: EP/CSL
  • date: 2016-05-11T00:00:00 type: Final act signed body: CSL
  • date: 2016-05-11T00:00:00 type: End of procedure in Parliament body: EP
  • date: 2016-05-24T00:00:00 type: Final act published in Official Journal summary: PURPOSE: the codification of Council Regulation (EC) No 953/2003 of 26 May 2003 to avoid trade diversion into the European Union of certain key medicines. LEGISLATIVE ACT: Regulation (EU) 2016/793 of the European Parliament and of the Council of 11 May 2016 to avoid trade diversion into the European Union of certain key medicines (codification). CONTENT: in the interests of legal clarity and transparency, this Regulation codifies and repeals Council Regulation (EC) No 953/2003 which had been substantially amended several times. Price segmentation between developed country markets and the poorest developing country markets is necessary to ensure that the poorest developing countries are supplied with essential pharmaceutical products at heavily reduced prices. Therefore, those heavily reduced prices cannot be understood as a reference for the price to be paid for the same products in developed country markets. This codified Regulation prohibits the importation into the European Union of tiered-priced products. Derogations are laid down for certain situations under the strict provision that it is ensured that the final destination of the products in question is one of the countries listed in the Regulation’s Annex II. ‘Tiered-priced products’ are any pharmaceutical products used in the prevention, diagnosis or treatment of a disease such as HIV/AIDS, malaria, tuberculosis and related oppotunistic diseases , which are priced in accordance with one of the optional price calculations set out in the Regulation, verified by the Commission or an independent auditor, and and entered in the list of tiered-priced products in Annex I of the Regulation. More specifically, the Regulation sets: the criteria for establishing what is a tiered priced product; the conditions under which the customs authorities shall take action; the measures which shall be taken by the competent authorities in the Member States. The Commission shall monitor on an annual basis the volumes of exports of tiered-priced products listed in Annex I and exported to the countries of destination. It shall report biennially to the European Parliament and to the Council on the volumes exported under tiered prices. The European Parliament may, within one month of submission of the Commission's report, invite the Commission to an ad hoc meeting of its responsible committee to present and explain any issues related to the application of this Regulation. No later than six months from the date of submission of the report to the European Parliament and to the Council, the Commission shall make the report public. ENTRY INTO FORCE: 13.6.2016. DELEGATED ACTS: the Commission may adopt delegated acts to add products to the list of tiered-priced products covered by the Regulation. The power to adopt such delegated acts shall be conferred on the Commission for a period of 5 years from 20 February 2014 (a period that can be tacitly extended for periods of an identical duration). The European Parliament or the Council may raise objections to a delegated act within three months of notification (which may be extended by three months.) If Parliament or Council raise objections, the delegated act will not enter into force. docs: title: Regulation 2016/793 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32016R0793 title: OJ L 135 24.05.2016, p. 0039 url: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2016:135:TOC
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  • Regulation
  • Repealing Regulation (EC) No 953/2003
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  • 4.20.01 Medicine, diseases
  • 4.20.04 Pharmaceutical products and industry
  • 6.20.02 Export/import control, trade defence
  • 6.30.02 Financial and technical cooperation and assistance
  • 7.30.02 Customs cooperation
New
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  • Repealing Regulation (EC) No 953/2003
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Regulation 2016/793
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  • The European Parliament adopted by 664 votes to 29, with 4 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council to avoid trade diversion into the European Union of certain key medicines (codified text).

    Parliament adopted its position at first reading, taking over the Commission proposal. The proposal in question aims to codify Council Regulation (EC) No 953/2003 which has been substantially amended several times. The proposal contains a straightforward codification of the existing texts without any change in their substance.

    The proposed codified Regulation serves the purpose of preventing tiered priced products from being imported into the Union. Exemptions are laid down for certain situations on the strict condition that it is ensured that the final destination of the products in question is one of the countries listed in Annex II. More specifically, the proposal lays down:

    • the criteria for establishing what is a tiered-priced product;
    • the conditions under which the customs authorities shall take action;
    • the measures which shall be taken by the competent authorities in the Member States.

    The term ‘tiered-priced product’ shall mean any pharmaceutical product which is used in the prevention, diagnosis or treatment of a disease, referred to in Annex IV, and which is priced in accordance with one of the optional price calculations set out in the Regulation, verified by the Commission or an independent auditor and entered in the list of tiered-priced products set out in Annex I.

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  • url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0076 type: Decision by Parliament, 1st reading/single reading title: T8-0076/2016
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activities/3/docs/0/text
  • The Committee on Legal Affairs adopted the report by Laura FERRARA (EFD, IT) on the proposal for a regulation of the European Parliament and of the Council to avoid trade diversion into the European Union of certain key medicines (codified text).

    The committee recommended the European Parliament to adopt its position at first reading, taking over the Commission proposal as adapted to the recommendations of the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission.

    According to the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission, the proposal in question contains a straightforward codification of the existing texts without any change in their substance.

    Price segmentation between developed country markets and the poorest developing country markets is necessary to ensure that the poorest developing countries are supplied with essential pharmaceutical products at heavily reduced prices. Therefore, those heavily reduced prices cannot be understood as a reference for the price to be paid for the same products in developed country markets.

    The proposed codified Regulation serves the purpose of preventing tiered priced products from being imported into the Union. Exemptions are laid down for certain situations.

activities/4/date
Old
2016-03-08T00:00:00
New
2016-03-09T00:00:00
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Old
Indicative plenary sitting date, 1st reading/single reading
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activities/3/docs
  • url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2016-0038&language=EN type: Committee report tabled for plenary, 1st reading/single reading title: A8-0038/2016
activities/0/docs/0/text/0
Old

PURPOSE: codification of Council Regulation (EC) No 953/2003 of 26 May 2003 to avoid trade diversion into the European Union of certain key medicines.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

CONTENT: in the interests of clarity and transparency of Union law, the purpose of this proposal is to undertake a codification of Council Regulation (EC) No 953/2003 to avoid trade diversion into the European Union of certain key medicines.

Council Regulation (EC) No 953/2003 has been substantially amended several times. It is recalled that in 1987, the Commission decided to instruct its staff that all acts should be codified after no more than ten amendments, stressing that this is a minimum requirement. The Edinburgh European Council in December 1992 confirmed the importance of codification as it offers certainty as to the law applicable to a given matter at a given time.

The European Parliament, the Council and the Commission agreed, by an interinstitutional agreement dated 20 December 1994, that an accelerated procedure may be used for the fast-track adoption of codification instruments.

The new Regulation will supersede the various acts incorporated in it; it fully preserves the content of the acts being codified and hence does no more than bring them together with only such formal amendments as are required by the codification exercise itself.

New

PURPOSE: codification of Council Regulation (EC) No 953/2003 of 26 May 2003 to avoid trade diversion into the European Union of certain key medicines.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: Council Regulation (EC) No 953/2003 has been substantially amended several times. On 1 April 1987, the Commission decided to instruct its staff that all acts should be codified after no more than ten amendments, stressing that this is a minimum requirement. The Conclusions of the Presidency of the Edinburgh European Council (December 1992) confirmed this, stressing the importance of codification.

The European Parliament, the Council and the Commission have agreed, by an interinstitutional agreement dated 20 December 1994, that an accelerated procedure may be used for the fast-track adoption of codification instruments.

CONTENT: in the interests of clarity and transparency of Union law, the purpose of this proposal is to undertake a codification of Council Regulation (EC) No 953/2003 to avoid trade diversion into the European Union of certain key medicines.

The new Regulation will supersede the various acts incorporated in it; it fully preserves the content of the acts being codified and hence does no more than bring them together with only such formal amendments as are required by the codification exercise itself.

Price segmentation between developed country markets and the poorest developing country markets is necessary to ensure that the poorest developing countries are supplied with essential pharmaceutical products at heavily reduced prices. Therefore, those heavily reduced prices cannot be understood as a reference for the price to be paid for the same products in developed country markets.

The proposed codified Regulation serves the purpose of preventing tiered priced products from being imported into the Union. Exemptions are laid down for certain situations under the strict provision that it is ensured that the final destination of the products in question is one of the countries listed in Annex II. More specifically, the proposed Regulation lays down:

  • the criteria for establishing what is a tiered priced product;
  • the conditions under which the customs authorities shall take action;
  • the measures which shall be taken by the competent authorities in the Member States.
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2016-04-12T00:00:00
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  • body: EC dg: url: http://ec.europa.eu/dgs/legal_service/ title: Legal Service commissioner: BARROSO José Manuel
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Repealing Regulation (EC) No 953/2003
instrument
Regulation
title
Avoiding trade diversion into the EU of certain key medicines. Codification
type
COD - Ordinary legislative procedure (ex-codecision procedure)
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