PURPOSE: to approve the conclusion of an agreement in the form of an exchange of letters between the European Union and Switzerland on the cumulation of origin between the European Union, Switzerland, Norway and Turkey under the European Union's Generalised System of Preferences (GSP).

NON-LEGISLATIVE ACT: Council Decision (EU) 2019/131 on the conclusion of an Agreement in the form of an Exchange of Letters between the European Union and the Swiss Confederation on the cumulation of origin between the European Union, the Swiss Confederation, the Kingdom of Norway and the Republic of Turkey in the framework of the Generalised System of Preferences.

CONTENT: the Council approved, on behalf of the European Union, the Agreement in the form of an Exchange of Letters between the Union and Switzerland on the cumulation of origin between the European Union, Switzerland, Norway and Turkey within the framework of the GSP.

With this agreement, certain products with content of Norwegian, Swiss or Turkish origin are to be treated on their arrival on the customs territory of the Union as products with content of Union origin. The rules of origin in the GSP of the Union, as reformed in 2010, provide for the implementation of a new system for the establishment of proofs of origin by registered exporters, which is to be applied from 1 January 2017.

In order to anticipate the application of that new system and the rules relating thereto, the Council authorised the Commission to negotiate an agreement with Switzerland, in the form of an Exchange of Letters, on the mutual acceptance of replacement certificates of origin Form A or replacement statements of origin providing that products with content of Norwegian, Swiss or Turkish origin are to be treated on their arrival on the customs territory of the Union as products with content of Union origin.

ENTRY INTO FORCE: 15.10.2018.

The European Parliament adopted by 582 votes to 28, with 18 abstentions, a legislative resolution on the draft Council decision on the conclusion of an Agreement in the form of an Exchange of Letters between the European Union and the Swiss Confederation on the cumulation of origin between the European Union, the Swiss Confederation, the Kingdom of Norway and the Republic of Turkey in the framework of the Generalised System of Preferences.

The European Parliament gave its consent to the conclusion of the agreement.

The Committee on International Trade adopted the report by Tiziana BEGHIN (EFD, IT) on the draft Council decision on the conclusion of an Agreement in the form of an Exchange of Letters between the European Union and the Swiss Confederation on the cumulation of origin between the European Union, the Swiss Confederation, the Kingdom of Norway and the Republic of Turkey in the framework of the Generalised System of Preferences.

The committee recommended that the European Parliament give its consent to the conclusion of the agreement.

As set out in the explanatory memorandum accompanying the recommendation, the present agreement between the EU and Switzerland was negotiated in order to enact the changes brought by the reform of the General System of Preferences (GSP) rules of origin in 2010. The reform introduced a new system of cumulation of origin by registered exporters and provided for inclusion of Turkey in the system of cumulation which so far worked between the Union, Switzerland and Norway.

The new legislation also provided for replacing of the former Certificates of origin of Form A by a new system of establishment of proofs of origin by registered exporters (Registered Exporter (REX) system).

The new system of cumulation entails that the EU, Switzerland, Norway and Turkey will allow GSP beneficiary countries to incorporate materials from any of the countries in the system (EU, Switzerland, Norway or Turkey) in their production processes, and export the final product to the EU, Switzerland, Norway or Turkey under the GSP preferential terms provided that the final product has been sufficiently worked or processed.

Under the present agreement, the EU and Switzerland will give preferential treatment and access to products originating in beneficiary countries when these countries use materials originating respectively in the EU or in Switzerland.

As regards the new system of proofs (REX), the GSP reform states that the former Certificates of origin of Form A were to be replaced by 1 January 2017. The new REX system has started to apply on 1 January 2017 in a certain number of GSP beneficiary countries constituting a first wave. The REX system already works in the framework of the GSP scheme granted by the EU, and the GSP schemes of Switzerland and Norway.

The present agreement is necessary to ensure smooth running of trade between the European Union and Switerland. It will enable the EU and Switzerland to use the new replacement proofs of origin provided for by the new REX system.

PURPOSE: to approve the conclusion of an agreement in the form of an exchange of letters between the European Union and Switzerland on cumulation of origin between the European Union, Switzerland, Norway and Turkey in the framework of the Generalised Preferences of the European Union (GSP).

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act.

BACKGROUND: under Commission Regulation (EU) 2015/2446 , products obtained in Norway, Switzerland or Turkey incorporating materials which have not been wholly obtained there are to be considered as originating in a beneficiary country, provided that such materials have undergone sufficient working or processing within the meaning of Article 45 of that Delegated Regulation (so-called 'cumulation' system).

The cumulation system shall apply provided that Switzerland reciprocally grants the same treatment to products originating in the beneficiary countries which incorporate materials originating in the Union.

In the case of Switzerland, the cumulation system was originally put in place by means of an agreement in the form of an exchange of letters between the Union and Switzerland. That exchange of letters took place on 14 December 2000, following the approval of the Council by Decision 2001/101/EC.

In order to ensure the application of a concept of origin corresponding to that set out in the rules of origin in the Union’s Generalised System of Preferences (GSP), Switzerland has amended its GSP rules of origin. Therefore, the agreement in the form of an exchange of letters between the Union and Switzerland must be revised.

The rules of origin in the GSP were reformed in 2010. They provide for the implementation of a new system for the establishment of proofs of origin by registered exporters, which will apply from 1 January 2017.

In order to anticipate the application of that new system and the rules, on 8 March 2012 the Council authorised the Commission to negotiate an agreement with Switzerland, in the form of an exchange of letters, on the mutual acceptance of replacement certificates of origin Form A or replacement statements of origin.

The negotiations resulted in an agreement in the form of an exchange of letters between the European Union and Switzerland which should be approved.

CONTENT: the draft decision seeks the approval, on behalf of the Union, of the Agreement in the form of an exchange of letters between the European Union and Switzerland on the cumulation of origin between the European Union, Switzerland, Norway and Turkey in the framework of the Generalised System of Preferences of the European Union.

Under the agreement, certain products with content of Norwegian, Swiss or Turkish origin are to be treated on their arrival on the customs territory of the Union as products with content of Union origin.

PURPOSE: to approve the conclusion of an agreement in the form of an exchange of letters between the European Union and Switzerland on cumulation of origin between the European Union, Switzerland, Norway and Turkey in the framework of the Generalised Preferences of the European Union (GSP).

PROPOSED ACT: Council Decision.

ROLE OF THE EUROPEAN PARLIAMENT: Council may adopt the act only if Parliament has given its consent to the act.

BACKGROUND: under Commission Regulation (EU) 2015/2446 , products obtained in Norway, Switzerland or Turkey incorporating materials which have not been wholly obtained there are to be considered as originating in a beneficiary country, provided that such materials have undergone sufficient working or processing within the meaning of Article 45 of that Delegated Regulation (so-called 'cumulation' system).

The cumulation system shall apply provided that Switzerland reciprocally grants the same treatment to products originating in the beneficiary countries which incorporate materials originating in the Union.

In the case of Switzerland, the cumulation system was originally put in place by means of an agreement in the form of an exchange of letters between the Union and Switzerland. That exchange of letters took place on 14 December 2000, following the approval of the Council by Decision 2001/101/EC.

In order to ensure the application of a concept of origin corresponding to that set out in the rules of origin in the Union’s Generalised System of Preferences (GSP), Switzerland has amended its GSP rules of origin. Therefore, the agreement in the form of an exchange of letters between the Union and Switzerland must be revised.

The rules of origin in the GSP were reformed in 2010. They provide for the implementation of a new system for the establishment of proofs of origin by registered exporters, which will apply from 1 January 2017.

In order to anticipate the application of that new system and the rules, on 8 March 2012 the Council authorised the Commission to negotiate an agreement with Switzerland, in the form of an exchange of letters, on the mutual acceptance of replacement certificates of origin Form A or replacement statements of origin.

The negotiations resulted in an agreement in the form of an exchange of letters between the European Union and Switzerland which should be approved.

CONTENT: the draft decision seeks the approval, on behalf of the Union, of the Agreement in the form of an exchange of letters between the European Union and Switzerland on the cumulation of origin between the European Union, Switzerland, Norway and Turkey in the framework of the Generalised System of Preferences of the European Union.

Under the agreement, certain products with content of Norwegian, Swiss or Turkish origin are to be treated on their arrival on the customs territory of the Union as products with content of Union origin.