PURPOSE: to extend the application of Regulation (EU)
No 374/2014 on the reduction or elimination of customs duties on
goods originating in Ukraine.
PROPOSED ACT: Regulation of the Council and the
European Parliament.
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: Ukraine is a priority partner
country within the European Neighbourhood Policy (ENP) and the
Eastern Partnership. The European Union and Ukraine negotiated in
2007-2011 an Association Agreement, including a Deep and
Comprehensive Free Trade Area (DCFTA), which was signed by both
parties on 27 June 2014. The European Union and Ukraine are to
establish a free trade area over a transitional period of a
maximum of 10 years starting from the entry into force of the
Association Agreement.
Regulation (EU) No 374/2014
on the reduction or elimination of customs
duties on goods originating in Ukraine was to apply until Title IV
of the Association Agreement enters into force or is applied
provisionally. It was intended that this Regulation (would cease to
apply on 1 November 2014 at the latest.
In light of the unprecedented security, political
and economic challenges faced by Ukraine, and in order to
support its economy, it was decided to anticipate the
implementation of the Schedule of concessions set out in Annex I-A
to the Association Agreement between the EU and Ukraine by means of
the autonomous trade preferences provided for under Regulation (EU)
No 374/2014. In view of the challenges Ukraine still faces, the
application of Regulation (EU) No 374/2014 shall be
extended.
CONTENT: in order to support the political and
economic stability of Ukraine, the European Commission would
propose the extension of the application of Regulation (EU) No
374/2014 on the reduction or elimination of customs duties on goods
originating in Ukraine until 31 December 2015. For the
purpose of predictability, the customs duties and access to tariff
quotas should following the extension remain the same as for
2014.
The autonomous trade preferences provided for by
Regulation (EU) No 374/2014 should have full respect for
democratic principles, human rights and fundamental freedoms
and respect for the principle of the rule of law, promotion of
respect for the principles of sovereignty and territorial
integrity, inviolability of borders and independence, as well as
countering the proliferation of weapons of mass
destruction.
The proposal ensures that it is appropriate to
introduce the possibility to temporarily suspend the preferences in
case of failure to respect the fundamental principles of human
rights, democracy and the rule of law by Ukraine.
BUDGETARYIMPLICATION: the European Union will see a
loss of customs revenue corresponding to EUR 487 million
(gross) annually. However, those figures are estimates, having
regard to the political and economic situation of Ukraine and can
change.