1 M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 29 – Customs union Bilateral screening: Chapter 29 PRESENTATION OF MONTENEGRO Brussels, June 2013

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Rules of origin

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Content Non-preferential origin Preferential origin : 1.Generalized system of preferences-GSP; 2.Free Trade Agreements 3.Cumulation of origin Binding Information on origin Approved Exporters

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Rules of origin Legal Framework-National Regulations Customs Law (Official Gazette of the Republic of Montenegro 7/02, 38/02, 72/02, 21/03, 31/03, 29/05, 66/06 and 21/08) Implementing Provisions to the Customs Law (Official Gazette of the Republic of Montenegro 15/03, 81/06 and 38/08) Regulation on issuing the certificates covering the goods at export, import or transit (Official Gazette of the Republic of Montenegro 41/05 and 54/05)

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Rules of origin Legal Framework-National Regulations Articles 21 and 28 of the Customs Law

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Rules of origin Legal Framework-International Regulations FTAs that Montenegro has concluded and implemented; Regional Convention on Pan-Euro-Mediterranean preferential rules of origin (Official Gazette ME-International Agreements, 8/12) GSP rules of origin EU ATM for Western Balkans

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Non preferential origin For the purpose of: 1.application of customs tariff; 2.application of other measures imposed by the provisions of special regulations governing trade in goods; 3.issuance of certificates of origin

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Non preferential origin Procedure for issuing certificates of domestic origin of goods (Articles of the Implementing Provisions to the Customs Law) issued by the Chamber of Commerce of Montenegro only if the requirements are met

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Non preferential origin Two conditions for the acquisition of origin: 1. condition: wholly obtained or produced (Art.24 CL), or 2.condition: underwent last substantial, economically justifiable processing (treatment, final treatment, further treatment) (Art.25 CL) Gap analysis

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Non preferential origin -special rules- For textile and textile products clasified within Section XI of the Customs Tariff ( Art.14 and 15 of the Implementing Provisions) -change of heading; -exception are goods listed in Annex 4 of the Implementing Provisions, it is necessary to fulfill the condition given in column 3 For some other products ( Art.16 of the Implementing Provisions) - for products listed in Annex 5 of the Implementing Provisions, it is necessary to fulfill the condition given in column 3

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin -Generalized System of Preferences (GSP)- Possibility of using GSP rules of origin is prescribed by the Article 28 of the Customs Law : 1.Paragraph 2- ME provides for the right of use of GSP; 2.Paragraph 3- ME is the beneficiary country ME GSP rules of origin are prescribed by the Articles of the Implementing Provisions to the Customs Law

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin -Generalized System of Preferences (GSP)- 2 criteria for the acquisition of origin in the beneficiary country: 1.wholly obtained products (Article 37 of the Implementing Provisions) and 2.sufficiently worked or processed products (Article 38 of the Implementing Provisions)

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin -Generalized System of Preferences (GSP)- Bilateral cumulation with materials of the Montenegrin origin; The general tolerance rule (10%); Principles of territoriality and direct transport; Proofs of origin: 1.Certificate Form A, and 2.Invoice declaration Gap analysis

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin -Generalized System of Preferences (GSP)- ME has not made a unilateral decision on the application of preferential tariff treatment for goods originating from other countries ME is a beneficiary country of the GSP approved by : 1.Japan; 2.Norway; 3.Russian Federation, Belarus and Kazakhstan; 4.Ukraine; 5.USA

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin -Free Trade Agreements- CEFTA 2006; Agreements: pan-Euro-Mediterranean zone and Western Balkan countries; Other FTAs

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin -Free Trade Agreements- Multilateral: CEFTA in the application as of 27 July general characteristics

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin -Free Trade Agreements- Pan-Euro-Mediterranean zone and Western Balkan countries -SAA between EU and ME -ME-EFTA states -ME-Turkey - general characteristics

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin -Free Trade Agreements- Other FTAs -Russian Federation -Ukraine - general characteristics

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin -Cumulation of origin- Bilateral cumulation: 1.ME-EFTA states 2.ME-Russian Federation 3.ME-Ukraine

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin -Cumulation of origin- Diagonal cumulation: 1.SAA-SAP cumulation (EU,Montenegro, Bosnia and Herzegovina, Serbia, Albania, Macedonia and Turkey) 2.CEFTA Agreement (Montenegro, Bosnia and Hercegovina, Serbia, Albania, Macedonia, Croatia,Moldova, UNMIK-Kosovo,EU and Turkey) 3.ME-Turkey (Montenegro, Turkey, EU, Macedonia and Croatia)

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin -Proofs of origin- Products originating in the Contracting Party shall, on importation into other Contracting Party, benefit from the Agreement upon submission of either: (a)a movement certificate EUR.1, or (b)a declaration, referred to as the "invoice declaration"

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin - Procedure for the issuance of a movement certificate EUR.1- -on exporter's request -submit the necessary documents - the right of MCA to call for any evidence

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin - Post verification of a movement certificate EUR.1- t hrough mutual assistance based on Protocols on rules of origin of the FTAs; can be carried out at random or on reasonable doubts

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin -Administrative capacity- Employees: Headquarters level Deparment of value, origin of goods and laboratory 2 employees Customs house/Customs office level Customs officers/Origin Teams

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Binding Information on origin Is prescribed by the: 1.Article 12 of the Customs Law 2.Articles 5-13 of the Implementing Provisions to the Customs Law

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Binding Information on origin Upon written application; Relates to only one type of goods and one set of circumstances conferring origin; Is issued in written form; Has the power of decision in the administrative procedure;

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Binding Information on origin Within 60 days of receipt of the complete application; Takes effect from the date of validity specified in the decision; Ceases to be in force after 3 years from the date of issue; Can cease to be valid in circumstances other then its expiry (Art.12 paragraphs 6-9 CL and Art.11 of the Implementing Provisions); Information holder has the right to appeal in accordance with Article 9 of the Implementing Provisions

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Approved exporter In accordance with Protocols of rules of origin of the FTAs Subject to any conditions which MCA considers appropriate MCA grants a customs authorisation number

CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union THANK YOU FOR YOUR ATTENTION! Stojanka Milošević Customs Administration of Montenegro Head of Department of value, origin of goods and laboratory tel , Ana Vulić Customs Administration of Montenegro Advisor in Department of value, origin of goods and laboratory tel ,