               EUROPEAN COMMISSION
            Brussels, 6.10.2016
            COM(2016) 642 final
            Recommendation for a
            COUNCIL DECISION
            approving the conclusion, by the European Commission,on behalf of the European Atomic Energy Community,of the Protocol to the Stabilisation and Association Agreement betweenthe European Communities and their Member States, of the one part,and Bosnia and Herzegovina, of the other part,to take account of the accession of the Republic of Croatia to the European Union

               EXPLANATORY MEMORANDUM

               The attached proposal constitutes the legal instrument for the Recommendation for a Council Decision approving the conclusion by the European Commission, on behalf of the European Atomic Energy Community, of a Protocol to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part, to take account of the accession of the Republic of Croatia to the European Union (hereinafter referred to as 'the Protocol').

               According to its Act of accession, Croatia shall accede to the international agreements signed or concluded by the European Union and its Member States by means of a Protocol to those agreements.

               The Stabilisation and Association Agreement between the European Communities and its Member States, of the one part, and Bosnia and Herzegovina, of the other part, hereinafter referred to as 'the Agreement', was signed in Luxembourg on 16 June 2008 and entered into force on 1 June 2015.

               On 24 September 2012 the Council authorised the Commission to open negotiations, on behalf of the European Union and its Member States and the Republic of Croatia, with Bosnia and Herzegovina in order to conclude a Protocol to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part, to take account of the accession of the Republic of Croatia to the European Union.

               Several rounds of negotiations took place between 13 December 2012 and 28 April 2016. Following further technical consultations and correspondence, the Protocol was initialled by the Commission and Bosnia and Herzegovina on 18 July 2016.

               The Commission proposes that the Council decides on the signature and provisional application of the Protocol and concludes the Protocol on behalf of the European Union and its Member States. The European Atomic Energy Community (EAEC) is also a Party to the Stabilisation and Association Agreement. In accordance with Article 101 of the Treaty establishing the EAEC, the decision to conclude the agreement is adopted by the Commission with the approval of the Council acting by means of a qualified majority vote..

               It is therefore necessary to adopt separate decisions for the signature and conclusion of the Protocol by the European Union and by the EAEC.

               For the conclusion of the Protocol on behalf of the EAEC, the Commission recommends that the Council:

               –gives its approval, pursuant to the second paragraph of Article 101 of the Treaty establishing the EAEC

               Recommendation for a

               COUNCIL DECISION

               approving the conclusion, by the European Commission,
                  on behalf of the European Atomic Energy Community,
                  of the Protocol to the Stabilisation and Association Agreement between
                  the European Communities and their Member States, of the one part,
                  and Bosnia and Herzegovina, of the other part,
                  to take account of the accession of the Republic of Croatia to the European Union

               THE COUNCIL OF THE EUROPEAN UNION,

               Having regard to the Treaty establishing the European Atomic Energy Community, and in particular the second paragraph of Article 101 thereof,

               Having regard to the recommendation from the European Commission,

               Whereas:

               (1)The Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part was signed on 16 June 2008 and entered into force on 1 June 2015
                  1
               .

               (2)The Republic of Croatia became a Member State of the Union on 1 July 2013.

               (3)In accordance with the second subparagraph of Article 6(2) of the 2012 Act concerning the conditions of accession of the Republic of Croatia to the European Union, the accession of Croatia to the Stabilisation and Association Agreement between the European Communities and its Member States, of the one part, and Bosnia and Herzegovina, of the other part, should be agreed by the conclusion of a protocol to such agreement by the Council acting unanimously on behalf of the Member States and by the third country concerned.

               (4)On 24 September 2012 the Council authorised the Commission to open negotiations with Bosnia and Herzegovina in order to conclude a Protocol to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part, to take account of the accession of the Republic of Croatia to the European Union ("the Protocol").

               (5)These negotiations were completed by initialling the Protocol on 18 July 2016.

               (6)The Protocol covers matters falling under competences of the European Atomic Energy Community.

               (7)The conclusion, by the Commission on behalf of the European Atomic Energy Community, of the Protocol should be approved as regards matters falling within the competence of the European Atomic Energy Community.

               (8)The signature and conclusion of the Protocol is subject to a separate procedure as regards matters falling under the Treaty on European Union and the Treaty on Functioning of the European Union,

               HAS ADOPTED THIS DECISION:

               Article 1

               The conclusion by the European Commission, on behalf of the European Atomic Energy Community, of the Protocol to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part, to take account of the accession of the Republic of Croatia to the European Union is hereby approved.

               The text of the Protocol is attached to the Decision on its signature.

               Article 2

               This Decision shall enter into force on the date of its adoption.

               Done at Brussels,

                     For the Council

                     The President

                     (1)
                  OJ L 164, 30.6.2015, p. 2.

    ---documentbreak---

               EUROPEAN COMMISSION
            Brussels, 6.10.2016
            COM(2016) 642 final
            ANNEX
            to the
            Recommendation for aCOUNCIL DECISION
            approving the conclusion, by the European Commission,on behalf of the European Atomic Energy Community,of the Protocol to the Stabilisation and Association Agreement betweenthe European Communities and their Member States, of the one part,and Bosnia and Herzegovina, of the other part,to take account of the accession of the Republic of Croatia to the European Union

               PROTOCOL

               to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part, to take account of the accession of the Republic of Croatia to the European Union

               THE KINGDOM OF BELGIUM,

               THE REPUBLIC OF BULGARIA,

               THE CZECH REPUBLIC,

               THE KINGDOM OF DENMARK,

               THE FEDERAL REPUBLIC OF GERMANY,

               THE REPUBLIC OF ESTONIA,

               IRELAND,

               THE HELLENIC REPUBLIC,

               THE KINGDOM OF SPAIN,

               THE FRENCH REPUBLIC,

               THE REPUBLIC OF CROATIA,

               THE ITALIAN REPUBLIC,

               THE REPUBLIC OF CYPRUS,

               THE REPUBLIC OF LATVIA,

               THE REPUBLIC OF LITHUANIA,

               THE GRAND DUCHY OF LUXEMBOURG,

               HUNGARY,

               THE REPUBLIC OF MALTA,

               THE KINGDOM OF THE NETHERLANDS,

               THE REPUBLIC OF AUSTRIA,

               THE REPUBLIC OF POLAND,

               THE PORTUGUESE REPUBLIC,

               ROMANIA,

               THE REPUBLIC OF SLOVENIA,

               THE SLOVAK REPUBLIC,

               THE REPUBLIC OF FINLAND,

               THE KINGDOM OF SWEDEN,

               THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND

               Contracting Parties to the Treaty on European Union, the Treaty on the Functioning of the European Union and the Treaty establishing the European Atomic Energy Community, hereinafter referred to as the 'Member States', and

               THE EUROPEAN UNION and THE EUROPEAN ATOMIC ENERGY COMMUNITY,

               hereinafter referred to as 'the European Union',

               of the one part, and

               BOSNIA AND HERZEGOVINA,

               of the other part,

               Having regard to the accession of the Republic of Croatia (hereinafter referred to as 'Croatia') to the European Union on 1 July 2013,

               Whereas:

               (1)The Interim Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina, of the other part, was signed in Luxemburg on 16 June 2008 and was in force from 1 July 2008 until 31 May 2015.

               (2)The Treaty concerning the accession of Croatia to the European Union (hereinafter referred to as 'the Treaty of Accession') was signed in Brussels on 9 December 2011.

               (3)Croatia acceded to the European Union on 1 July 2013.

               (4)The Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina of the other part (hereinafter referred to as 'SAA') was signed in Luxembourg on 16 June 2008 and entered into force on 1 June 2015.

               (5)Pursuant to Article 6(2) of the Act of Accession of Croatia, the accession of Croatia to the SAA shall be agreed by the conclusion of a protocol to the SAA.

               (6)Consultations pursuant to Article 37(3) of the SAA have taken place so as to ensure that account is taken of the mutual interests of the European Union and Bosnia and Herzegovina stated in that Agreement,

               HAVE AGREED AS FOLLOWS:

               Section I

               Contracting Parties

               Article 1

               Croatia shall be Party to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Bosnia and Herzegovina of the other part (hereinafter referred to as 'SAA') signed in Luxembourg on 16 June 2008 and shall respectively adopt and take note, in the same manner as the other Member States of the European Union, of the texts of the SAA, as well as of the Joint Declarations, and the Unilateral Declarations annexed to the Final Act signed on the same date.

               Section II

               ADJUSTMENTS TO THE TEXT OF THE SAA INCLUDING ITS ANNEXES AND PROTOCOLS

               AGricultural Products

               Article 2

               Agricultural Products sensu stricto

               1. In Article 27 (3) of the SAA the following new subparagraph two is added:

               From the date of entry into force of the Protocol to take account of the accession of Croatia to the European Union or, in case this Protocol is applied provisionally, from the date of its provisional application, the annual tariff quota set out in the first subparagraph shall be 13 210 tonnes (net weight).

               2. In Article 27 of the SAA the following new paragraph 4a is added:

               4a. In addition to paragraph 4, from the date of entry into force of the Protocol to take account of the accession of Croatia to the European Union or, in case this Protocol is applied provisionally, from the date of its provisional application Bosnia and Herzegovina shall abolish the customs duties applicable on imports of certain agricultural products originating in the Union, listed in Annex III (f) within the limit of the tariff quota indicated for the products concerned.

               3. Annex I to this Protocol shall be added as Annex III (f) to the SAA and shall form an integral part of the SAA.

               Article 3

               Fish and fishery products

               1. In Article 28 of the SAA the following paragraph shall be added as paragraph 1a:

               1a. From the date of entry into force of the Protocol to take account of the accession of Croatia to the European Union or, in case this Protocol is applied provisionally, from the date of its provisional application, the Union shall abolish all customs duties or charges having equivalent effect of fish and fishery products originating in Bosnia and Herzegovina, other than those listed in Annex IVa. Products listed in Annex IVa shall be subject to the provisions laid down therein.

               2. In Article 28 of the SAA the following paragraph shall be added as paragraph 3:

               3. From the date of entry into force of the Protocol to take account of the accession of Croatia to the European Union or, in case this Protocol is applied provisionally, from the date of its provisional application, Bosnia and Herzegovina shall open a duty free quota for imports of live carp under CN code 0301 93 00 within the limit of an annual tariff quota of 75 tonnes. Imports outside the quota limits shall be subject to the duties laid down in Annex V to the SAA.

               3. Annex II to this Protocol shall be added as Annex IVa to the SAA and shall form an integral part of the SAA.

               Article 4

               Processed agricultural products

               Annex III to this Protocol shall be added as Annex III to Protocol 1 to the SAA and shall form an integral part of the SAA.

               Article 5

               Wine Agreement

               From the date of entry into force of the Protocol to take account of the accession of Croatia to the European Union or, in case this Protocol is applied provisionally, from the date of its provisional application, Annex I to Protocol 7 to the SAA referred to in Article 27 (5) of the SAA shall be amended as set out in Annex IV to this Protocol.

               Section III
               GENERAL AND FINAL PROVISIONS

               Article 6

               This Protocol and the Annexes thereto shall form an integral part of the SAA.

               Article 7

               1. This Protocol shall be approved by the European Union and its Member States and by Bosnia and Herzegovina in accordance with their own procedures.

               2. The Parties shall notify each other of the completion of the corresponding procedures referred to in paragraph 1. The instruments of approval shall be deposited with the General Secretariat of the Council of the European Union.

               Article 8

               1. This Protocol shall enter into force on the first day of the first month following the date of the deposit of the last instrument of approval.

               2. If not all the instruments of approval of this Protocol have been deposited before the first day of the second month following the date of signature, this Protocol shall apply provisionally. The date of provisional application shall be the first day of the second month following the date of signature.

               Article 9

               This Protocol is drawn up in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Irish, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovene, Spanish, Swedish, Bosnian and Serbian languages, each of these texts being equally authentic.

               ANNEXES

               ANNEX I

               'ANNEX III (f)

               TARIFF CONCESSIONS OF BOSNIA AND HERZEGOVINA FOR AGRICULTURAL PRIMARY PRODUCTS ORIGINATING IN THE EUROPEAN UNION

               (Referred to in Article 27(4a) of the SAA)

                        1.

                        From the date of entry into force or provisional application of the Protocol to take account of the accession of Croatia to the European Union, duty shall be abolished for the products below within the Tariff Quota quantities set out below. For imports out of quota the MFN duty rate shall apply. For the year 2017 the full amount of the quota shall apply, irrespective of the date of entry into force or provisional application of the Protocol.

                        CN Code

                        Description

                        Tariff quota (tonnes)

                        0102

                        Live bovine animals:

                        - Cattle:

                        0102 29

                        - - Other:

                        - - - Other:

                        - - - - Of a weight exceeding 300 kg:

                        - - - - - Cows:

                        0102 29 61

                        - - - - - - For slaughter

                        1 935

                        - - - - - Other:

                        0102 29 91

                        - - - - - - For slaughter

                        190

                        0103

                        Live swine:

                        - Other:

                        0103 92

                        - - Weighing 50 kg or more:

                        - - - Domestic species:

                        0103 92 11

                        - - - - Sows having farrowed at least once, of a weight of not less than 160 kg

                        575

                        0103 92 19

                        - - - - Other

                        1 755

                        0103 92 90

                        - - - Other

                        195

                        0105

                        Live poultry, that is to say, fowls of the species Gallus domesticus, ducks, geese, turkeys and guinea fowls:

                        - Other:

                        0105 94 00

                        - - Fowls of the species Gallus domesticus

                        1 455

                        0207

                        Meat and edible offal, of the poultry of heading 0105, fresh, chilled or frozen:

                        - Of fowls of the species Gallus domesticus:

                        0207 12

                        - - Not cut in pieces, frozen:

                        0207 12 90

                        - - - Plucked and drawn, without heads and feet and without necks, hearts, livers and gizzards, known as '65 % chickens', or otherwise presented

                        80

                        0207 13

                        - - Cuts and offal, fresh or chilled:

                        - - - Cuts:

                        0207 13 10

                        - - - - Boneless

                        90

                        - - - - With bone in:

                        0207 13 30

                        - - - - - Whole wings, with or without tips

                        55

                        0207 13 60

                        - - - - - Legs and cuts thereof

                        320

                        - - - Offal:

                        0207 13 99

                        - - - - Other

                        25

                        0207 14

                        - - Cuts and offal, frozen:

                        - - - Cuts:

                        - - - - With bone in:

                        0207 14 20

                        - - - - - Halves or quarters

                        30

                        0207 14 60

                        - - - - - Legs and cuts thereof

                        130

                        - - - Offal:

                        0207 14 99

                        - - - - Other

                        50

                        0401

                        Milk and cream, not concentrated nor containing added sugar or other sweetening matter:

                        0401 40

                        - Of a fat content, by weight, exceeding 6 % but not exceeding 10 %:

                        0401 40 10

                        - - In immediate packings of a net content not exceeding two litres

                        80

                        0401 50

                        - Of a fat content, by weight, exceeding 10 %:

                        - - Not exceeding 21 %:

                        0401 50 11

                        - - - In immediate packings of a net content not exceeding two litres

                        30

                        0402

                        Milk and cream, concentrated or containing added sugar or other sweetening matter:

                        - In powder, granules or other solid forms, of a fat content, by weight, exceeding 1,5 %:

                        0402 21

                        - - Not containing added sugar or other sweetening matter:

                        - - - Of a fat content, by weight, not exceeding 27 %:

                        0402 21 18

                        - - - - Other

                        25

                        0403

                        Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa:

                        0403 90

                        - Other:

                        - - Not flavoured nor containing added fruit, nuts or cocoa:

                        - - - Other:

                        - - - - Not containing added sugar or other sweetening matter, of a fat content, by weight:

                        0403 90 51

                        - - - - - Not exceeding 3 %

                        500

                        0403 90 53

                        - - - - - Exceeding 3 % but not exceeding 6 %

                        290

                        0405

                        Butter and other fats and oils derived from milk; dairy spreads:

                        0405 10

                        - Butter:

                        - - Of a fat content, by weight, not exceeding 85 %:

                        - - - Natural butter:

                        0405 10 11

                        - - - - In immediate packings of a net content not exceeding 1 kg

                        160

                        0405 10 19

                        - - - - Other

                        200

                        0406

                        Cheese and curd:

                        0406 10

                        - Fresh (unripened or uncured) cheese, including whey cheese, and curd

                        - - Of a fat content, by weight, not exceeding 40 %

                        0406 10 30

                        - - - Mozzarella, whether or not in a liquid

                        355

                        0406 10 50

                        - - - Other

                        0406 10 80

                        - - Other

                        165

                        0409 00 00

                        Natural honey

                        165

                        0701

                        Potatoes, fresh or chilled:

                        0701 90

                        - Other:

                        - - Other:

                        0701 90 50

                        - - - New, from 1 January to 30 June

                        50

                        0701 90 90

                        - - - Other

                        1 265

                        0704

                        Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled:

                        0704 90

                        - Other:

                        0704 90 10

                        - - White cabbages and red cabbages

                        280

                        0706

                        Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots, fresh or chilled:

                        0706 10 00

                        - Carrots and turnips

                        50

                        0806

                        Grapes, fresh or dried:

                        0806 10

                        - Fresh:

                        0806 10 10

                        - - Table grapes

                        45

                        0809

                        Apricots, cherries, peaches (including nectarines), plums and sloes, fresh:

                        - Cherries:

                        0809 21 00

                        - - Sour cherries (Prunus cerasus)

                        410

                        0811

                        Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter:

                        0811 90

                        - Other:

                        - - Other:

                        - - - Cherries:

                        0811 90 75

                        - - - - Sour cherries (Prunus cerasus)

                        70

                        1601

                        Sausages and similar products, of meat, meat offal or blood; food preparations based on these products:

                        - Other:

                        1601 00 91

                        - - Sausages, dry or for spreading, uncooked

                        285

                        1602

                        Other prepared or preserved meat, meat offal or blood:

                        1602 10 00

                        - Homogenised preparations

                        75

                        1602 20

                        - Of liver of any animal:

                        1602 20 90

                        - - Other

                        140

                        - Of poultry of heading 0105:

                        1602 31

                        - - Of turkeys:

                        - - - Containing 57 % or more by weight of poultry meat or offal:

                        1602 31 19

                        - - - - Other

                        40

                        1602 32

                        - - Of fowls of the species Gallus domesticus

                        - Of swine:

                        - - - Containing 57 % or more by weight of poultry meat or offal:

                        1602 32 11

                        - - - - Uncooked

                        130

                        1602 32 19

                        - - - - Other

                        30

                        1602 32 30

                        - - - Containing 25 % or more but less than 57 % by weight of poultry meat or offal

                        170

                        1602 32 90

                        - - - Other

                        230

                        1602 41

                        - - Hams and cuts thereof:

                        1602 41 10

                        - - - Of domestic swine

                        360

                        1602 49

                        - - Other, including mixtures:

                        - - - Of domestic swine:

                        - - - - Containing by weight 80 % or more of meat or meat offal, of any kind, including fats of any kind or origin:

                        1602 49 15

                        - - - - - Other mixtures containing hams (legs), shoulders, loins or collars, and cuts thereof

                        150

                        1602 49 30

                        - - - - Containing by weight 40 % or more but less than 80 % of meat or meat offal, of any kind, including fats of any kind or origin

                        445

                        1602 49 50

                        - - - - Containing by weight less than 40 % of meat or meat offal, of any kind, including fats of any kind or origin

                        60

                        1602 50

                        - Of bovine animals:

                        - - Other:

                        1602 50 31

                        - - - Corned beef, in airtight containers

                        70

                        1602 50 95

                        - - - Other

                        295

                        1701

                        Cane or beet sugar and chemically pure sucrose, in solid form:

                        - Other:

                        1701 91 00

                        - - Containing added flavouring or colouring matter

                        55

                        1701 99

                        - - Other:

                        1701 99 10

                        - - - White sugar

                        3 470

                        2001

                        Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid:

                        2001 10 00

                        - Cucumbers and gherkins

                        265

                        2001 90

                        - Other:

                        2001 90 70

                        - - Sweet peppers

                        70

                        2005

                        Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006:

                        - Other vegetables and mixtures of vegetables:

                        2005 99

                        - - Other:

                        2005 99 50

                        - - - Mixtures of vegetables

                        245

                        2005 99 60

                        - - - Sauerkraut

                        40

                        2.

                        Imports into Bosnia and Herzegovina of the following products shall be subject to the concessions set out below. For imports out of quota the MFN duty rate shall apply. For the year 2017 the full amount of the quota shall apply, irrespective of the date of entry into force or provisional application of the Protocol.

                        CN Code

                        Description

                        Tariff quota (tonnes)

                        As of 01.01.2017

                        As of 01.01.2018

                        As of 01.01.2019

                        0401

                        Milk and cream, not concentrated nor containing added sugar or other sweetening matter:

                        0401 20

                        - Of a fat content, by weight, exceeding 1 % but not exceeding 6 %:

                        - - Not exceeding 3 %:

                        0401 20 11

                        - - - In immediate packings of a net content not exceeding two litres

                        5 432

                        9 506

                        13 580

                        - - Exceeding 3 %:

                        0401 20 91

                        - - - In immediate packings of a net content not exceeding two litres

                        720

                        1 440

                        1 440

                        0403

                        Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa:

                        0403 10

                        - Yogurt:

                        - - Not flavoured nor containing added fruit, nuts or cocoa:

                        - - - Not containing added sugar or other sweetening matter, of a fat content, by weight:

                        0403 10 11

                        - - - - Not exceeding 3 %

                        1 515

                        3 030

                        3 030

                        0403 10 13

                        - - - - Exceeding 3 % but not exceeding 6 %

                        1 520

                        3 040

                        3 040

                        0403 90

                        - Other:

                        - - Not flavoured nor containing added fruit, nuts or cocoa:

                        - - - Other:

                        - - - - Not containing added sugar or other sweetening matter, of a fat content, by weight:

                        0403 90 59

                        - - - - - Exceeding 6 %

                        1 762.5

                        3 525

                        3 525

                        1601

                        Sausages and similar products, of meat, meat offal or blood; food preparations based on these products:

                        - Other:

                        1601 00 99

                        - - Other

                        1 692.5

                        3 385

                        3 385

               ANNEX II

               'ANNEX IVa

                  DUTIES APPLICABLE TO GOODS ORIGINATING IN BOSNIA AND HERZEGOVINA ON IMPORT INTO THE EUROPEAN UNION

               (Referred to in Article 28 (1a) of the SAA)

                        1.

                        From the date of entry into force or provisional application of the Protocol to take account of the accession of Croatia to the European Union, imports from Bosnia and Herzegovina into the European Union shall be subject to the concessions set below. For the year 2017 the full amount of the quota shall apply, irrespective of the date of entry into force or provisional application of the Protocol.

                        CN Codes

                        Description

                        Tariff quota volume (in tonnes)

                        Rate of duty
                           within quota

                        Rate of duty
                           over quota

                        0301 91 00

                        0302 11 00

                        0303 14 00

                        0304 42 00

                        ex 0304 52 00

                        0304 82 00

                        ex 0304 99 21

                        ex 0305 10 00

                        ex 0305 39 90

                        0305 43 00

                        ex 0305 59 80

                        ex 0305 69 80

                        Trout (Salmo trutta, Oncorhynchus mykiss, Oncorhynchus clarki, Oncorhynchus aguabonita, Oncorhynchus gilae, Oncorhynchus apache and Oncorhynchus chrysogaster): live; fresh or chilled; frozen; dried, salted or in brine, smoked; fillets and other fish meat; flours, meals and pellets, fit for human consumption

                        500

                        0%

                        70%
                           of MFN duty

                        0301 93 00

                        0302 73 00

                        0303 25 00

                        ex 0304 39 00

                        ex 0304 51 00

                        ex 0304 69 00

                        ex 0304 93 90

                        ex 0305 10 00

                        ex 0305 31 00

                        ex 0305 44 90

                        ex 0305 59 80

                        ex 0305 69 80

                        Carp (Cyprinus carpio, Carassius carassius, Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon piceus): live; fresh or chilled; frozen; dried, salted or in brine, smoked; fillets and other fish meat; flours, meals and pellets, fit for human consumption

                        140

                        0%

                        70%
                           of MFN duty

                        ex 0301 99 85

                        0302 85 10

                        0303 89 50

                        ex 0304 49 90

                        ex 0304 59 90

                        ex 0304 89 90

                        ex 0304 99 99

                        ex 0305 10 00

                        ex 0305 39 90

                        ex 0305 49 80

                        ex 0305 59 80

                        ex 0305 69 80

                        Sea bream (Dentex dentex and Pagellus spp.): live; fresh or chilled; frozen; dried, salted or in brine, smoked; fillets and other fish meat; flours, meals and pellets, fit for human consumption

                        30

                        0%

                        30%
                           of MFN duty

                        ex 0301 99 85

                        0302 84 10

                        0303 84 10

                        ex 0304 49 90

                        ex 0304 59 90

                        ex 0304 89 90

                        ex 0304 99 99

                        ex 0305 10 00

                        ex 0305 39 90

                        ex 0305 49 80

                        ex 0305 59 80

                        ex 0305 69 80

                        Sea bass (Dicentrarchus labrax): live; fresh or chilled; frozen; dried, salted or in brine, smoked; fillets and other fish meat; flours, meals and pellets, fit for human consumption

                        30

                        0%

                        30%
                           of MFN duty

                        1604 13 11

                        1604 13 19

                        ex 1604 20 50

                        Prepared or preserved sardines

                        50

                        6%

                        100%

                        1604 16 00

                        1604 20 40

                        Prepared or preserved anchovies

                        70

                        12,5%

                        100%

                        2.

                        The duty rate applicable to all products of HS heading 1604 except prepared or preserved sardines and prepared or preserved anchovies is reduced to 70 % of MFN duty rate.

               ANNEX III

               'ANNEX III TO PROTOCOL 1

                  TARIFF CONCESSIONS OF BOSNIA AND HERZEGOVINA FOR PROCESSED AGRICULTURAL PRODUCTS ORIGINATING IN THE EUROPEAN UNION

               (Referred to in Article 25 of the SAA)

               From the date of entry into force or provisional application of the Protocol to take account of the accession of Croatia to the European Union, the import duty shall be abolished within the tariff quota quantities set out below. For imports out of quota the MFN duty rate shall apply. For the year 2017 the full amount of the quota shall apply, irrespective of the date of entry into force or provisional application of the Protocol.

                        CN Code

                        Description

                        Tariff quota (tonnes)

                        0403

                        Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa:

                        0403 10

                        - Yogurt:

                        - - Flavoured or containing added fruit, nuts or cocoa:

                        - - - Other, of a milkfat content, by weight:

                        0403 10 91

                        - - - - Not exceeding 3 %

                        480

                        0403 10 93

                        - - - - Exceeding 3 % but not exceeding 6 %

                        130

                        0403 10 99

                        - - - - Exceeding 6 %

                        25

                        0403 90

                        - Other:

                        - - Flavoured or containing added fruit, nuts or cocoa:

                        - - - Other, of a milkfat content, by weight:

                        0403 90 91

                        - - - - Not exceeding 3 %

                        530

                        0403 90 93

                        - - - - Exceeding 3 % but not exceeding 6 %

                        55

                        1905

                        Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products:

                        - Sweet biscuits; waffles and wafers:

                        1905 31

                        - - Sweet biscuits:

                        - - - Completely or partially coated or covered with chocolate or other preparations containing cocoa:

                        1905 31 19

                        - - - - Other

                        365

                        - - - Other:

                        - - - - Other:

                        1905 31 99

                        - - - - - Other

                        600

                        1905 32

                        - - Waffles and wafers:

                        - - - Other:

                        - - - - Completely or partially coated or covered with chocolate or other preparations containing cocoa:

                        1905 32 19

                        - - - - - Other

                        300

                        1905 90

                        - Other:

                        - - Other:

                        1905 90 45

                        - - - Biscuits

                        35

                        2208

                        Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol; spirits, liqueurs and other spirituous beverages:

                        2208 20

                        - Spirits obtained by distilling grape wine or grape marc:

                        - - In containers holding 2 litres or less:

                        2208 20 29

                        - - - Other:

                        ex

                        2208 20 29

                        - - - - Grape brandy and grape marc brandy

                        85

                        ex

                        2208 20 29

                        - - - - Other

                        2402

                        Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes:

                        2402 20

                        - Cigarettes containing tobacco:

                        2402 20 90

                        - - Other

                        3 200

               ANNEX IV

               'AMENDMENTS TO ANNEX I TO PROTOCOL 7

                        1.

                        The table at Point 1 of Annex I to Protocol 7, on imports of wines into the European Union, shall be replaced by the table below:

                        2.

                        The table at Point 3 of Annex I to Protocol 7, on imports of wines into Bosnia and Herzegovina, shall be replaced by the table below:


title: RECOMMENDATION FOR A COUNCIL DECISION on the conclusion of an agreement between the European Economic Community and the Arab Republic of Syria for the supply of cereals as food aid (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 1592
Vol. 1974/0256
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---    COMMISSION OF THE EUROPEAN COMMUNITIES
                                                          COM(74) 1592 final
                                                          Brussels , 9 October 1974
                              RECOMMENDATION" FOR A
                               COUNCIL DECISION
                 on "the conclusion of an agreement "between the
               European Economic Community and the Arab Republic
                 of Syria for the supply of cereals as food aid
                   ( submitted to the Council by the Commission)
COM(74) 1592 final
 ---pagebreak---  THE COUNCIL OP THE EUROPEAN Ca^MUNITIES ,
 Having regard to the Treaty establishing the European Economic Community ,
 and in particular Articles 11 3 , 114 and 223 , thereof }
 Having regard to the Recommendation from the Commission ;
 Whereas the European Economic Community has concluded the second Convention '
 relating to food aid^\
 Whereas the Arab Republic of Syria        , by its letter of 8.8.1973
 has requested food aid ;
 Whereas in view of the cereal supply situation in Syria       that country
 should be accorded , by way of gift , 8.5OO tonnes        of cereals in the
  form of 5.629 tonnes of flour of soft wheat under the Community Food Aid
  Programme for 1 97 3/74 ;
 DECIDES :
                                Article  1
 On behalf of the European Economic Community an Agreement , the text whereof
 is annexed hereto , shall be concluded between the European Economic Community
 and the Arab Republic of Syria       for supply of flour of soft wheat as food
 aid ."
                                                                 \
                                Article  2                       *
 The President of the Council is hereby authorized to designate thos« who
 are to sign the Agreement and to confer on them the requisite powers to
 bind the Community .
                                                                      . I
 Done at Brussels ,                19                                           .
                                                     For the Council
                                                      The Président
( 1 ) J.O. L 219 du 9.8.74 , P. 19
                            •                            1
 ---pagebreak---               AGKEEMENT
                     «
BETWEEN THE EUROPEAN ECONOMIC COIfrlUTJITY
AND THE ARAB REPUBLIC OF SYRIA ■       ON
THE SUPPLY OF FOOD AID IN THE FORM OF
CEREALS .
                                     <
 ---pagebreak--- THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
                                          of the one part ,
THE GOVERNMENT OF THE ARAB REPUBLIC OF SYRIA
                                          of the other part .
HAVE DECIDED to conclude this Agreement and to this end have
designate  as their plenipotentiaries :
THE COUNCIL OF THE EUROPEAN COMMUNITIES :
THE GOVERNMENT OF THE ARAB REPUBLIC CF SYRIA :
WHO HAVE AGREED AS FOLLOVJS :
 ---pagebreak---                            ARTICLE  I
The European Economic Community shall supply "by way of gift to the Arab
Republic of Syria    ( hereafter referred to an "the recipient country ") a
quantity of b.^00 tonnes        of cereals in the form of 5-629 tonnes of
flour of soft wheat under the Community 's food aid programme in cereals for
1973/74 .
                           ARTICLE' II
Deliveries will be made in in new cotton sacks with a net weight of 50      each
fob in accordance with the details laid down in the Annex which . forms an
integral part of the present Agreement .
                           ARTICLE  III
The recipient country undertakes to make all necessary arrangements for the
transport and insurance of the products from point of delivery to places
of destination .
It undertakes to  exercise the greatest care to ensure that the tendering
arrangements for  sea transport do not prejudice the free play of fair
competition . Any problems ariaing in this connection shall be the subject
of consultations  under Article VIII of the present Agreement .
                                                             V
                           ARTICLE  IV
The recipient country undertakes to use the product received as aid for
purposes of consumption and to apply , for the sale of the product on its
market , the prices normally charged on that market for products of
comparable quality . The proceeds from this sale shall be paid into b.
special account with the Central Bank and allocated to the financing of
one or more development projects under arrangements which have been
agreed in advance between the recipient country and the European Economic
Community .
                                                      i
 ---pagebreak---                               ARTICLE   V
The Contracting Parties undertake to implement this Agreement in such . a way
as to avoid any prejudice to the normal structure of national production
and international trade . To this end they shall take any measures required
 to ensure that supplies as aid are in addition to and do not replace business
 transactions which might reasonably be expected in the absence of such supplies .
 In particular , the recipient country undertakes to import commercially from
whatever source between 1 July 1974 and 30 June 1975 a- minimum quality of
             metric tons of soft wheat or its equivalent in flour of soft wheat .
                              ARTICLE   VI
The recipient country shall take all steps required to prevent :
( i ) the re-export of the product received as aid and also of any products
         and by-prcducts resulting therefrom ;
( ii ) the export , commercially or otherwise , within a period of six months
         commencing from the final delivery , either of any product procured
         locally of the same nature as that used to produce the flour received
        as aid , or of any products and by-products resulting therefrom .
                              ARTICLE   VII
The recipient country undertakes to inform the European Economic Con-munity
of how this Agreement is implemented . To this end it shall provide the
Commission of the European Communities with the following details. :
    ( i ) Immediately after the imlQading of each cargo : ports and dates of
          arrival of vessel ; nature , quantity and any observations as to the
          quality of the products unloaded ; date on which unloading 'was
                                    '                                             i
          completed ; costs of sea transport and of insurance relating thereto ;
                                                                         1
  ( ii ) Every three months until the quantities received as aid have been
          fully used : quantities sold ; manner of sale ; actual selling prices ;
          normal selling costs on the recipient country 's market ; costs of
          insurance and of transport if applicable from the port of unloading
          to the places of destination ;
                                                        ï
 ---pagebreak--- ( iii ) On 15 January every year until the special account has "been fully
        expended :
        a) Summary of the account ( incomings and outgoings ) to 31 December
            of the previous yearj
        t>) Stage of progress of the project or projects , indicating' the
            total resources expended to that stage .
                              ARTICLE  VITI
The Contracting Parties shall at the request of either consult each other
on any questions concerning the implementation of this Agreement .
                              ARTICLE  IX
This Agreement is drawn up in duplicate in the Danish , Dutch , English ,
French , German and Italian languages * each of these texts having equal force .
                                                     ï
 ---pagebreak---                                                                      AKÏÏKX  I
                          General provisions
                                                                                »
                              Article   1
   Delivery shall be effected and risks shall pass from the European Economic
   Community , hereinafter referred to as the EEC , to the recipient country at
   the moment at which the goods are put down at the point of exportation
   named by the Commission of the European Communities at the berth specified
   by the recipient country or its agent referred to in Article 3 and under the
  terms specified in the following articles . Without prejudice to Articles 3 and.
  '9 the EEC shall bear all costs up to delivery and the recipient country those
  beyond delivery .
                              Article  2
   On delivery a tolerance of 5 v less than the quantity of the product to be
   supplied in accordance with article I of the Agreement shall be admissible .
                              Article  3
  The EEC shall appoint an-agent to implement the provisions of the present
   Annex - or for each consignment - whose name and address it shall make        l
  known to the recipient country immediately following his appointment .
  The recipient country shall appoint an agent in the port or ports of ship
  ment , whose name and address it shall make known to the EEC with all
   despatch and if possible before the appointmen t of agent Of . the EEC .-
                              Article  4                   '
  Before implementing the procedures for appointing the agent of the EEC
  referred to in Article 3 » the Commission of the European Communities and
  the recipient country shall jointly establish the period during which  I
• delivery must begin .
                 Obligations of the European Economic Community
                             Article  5
  Should the ESC not be in a position to carry out delivery on the date and
  ( if applicable ) on the schedule as provided in Article 7 » all costs
  arising for the recipient country - for example demurrage void freight
  and dead freight - •shall be borne by the EEC .
 ---pagebreak--- The charges and the arrangements relating to demurrage laid down in the
contract between the recipient country and the carrier roust have been
agreed in advance "by the recipient country and the agent of the ESC .
The other costs referred to in the first paragraph shall only be refunded
by the EEC if they have been paid by the recipient country with the approval
of the EEC .
                               Article  6
Should it prove impossible for the EEC to supply all or part of the goods
on the date and within the time-limits provided for in Article 7 and. without
prejudice to the provisions of Article 5i a new date and a new time-limit
shall be agreed between the agents of the EEC and of the recipient country
for the delivery of all the goods or of the undelivered part thereof .
                   Obligations of the recipient country
                             { Article  7
After contacting the ESC , the recipient country shall procure one or more
vessels to transport all the quantities provided for in Article 1 of the
Agreement , of dimensions corresponding to the normal capacity of the port of
shipment ; these vessels must be ready for loading on a date falling within
the period referred to in Article A.
                                                             v           "
The agent of the recipient country shall inform the EEC of this date
immedately on learning it , and also that Jfor commencement of delivery ,
if possible twenty days in advance and in any case ten days before the date
for commencement of delivery .
                                                                    i
He shall establish with the agent of the EEC the schedule to which delivery
shall take place .
                                                                       »   -
                               Article  8
Should the recipient country be unable to begin loading on the date provided
for in Article 7i paragraph 1 , the agent of the recipient country shall
inform the agent of the EEC without delay .
                                                      (
 ---pagebreak---  In this event a new date for the commencement of delivery and ( if applicable )
 a new schedule could be agreed between the agents of the EEC and of the
 recipient country . The costs arising from this delay shall in all cases
 except force majeure be borne by the recipient country .
 Should the new date provided for in paragraph 2 be more than 30 clear days
 after the date for loading provided for in Article 7 » paragraph 1 , the ZZC
may dispose of the goods v/ithout prejudice to its commitment under Article 1
 of this Agreement .
                                                4
                                  Article  9
 If the quantity made available for loading on a vessel cannot be put on
board in its entirety , the recipient country shall inform the EEC as soon
as possible and no later than fifteen clear days after loading has been
completed whether it intends to accept or to renounce the balance .
In the former case the provisions of Article 8 , paragraphs 2 and 3i shall
apply to the balance , if delivery has not yet taken place .
In the latter case the EEC may consider that it has discharged its commitment
to the recipient country under Article 1 of this Agreement and shall bear
the costs resulting from such renunciation .
In any event after the expiry of an interval of fifteen clear days and in
the absence of any notice on the part of the recipient country , the renun
ciation shall be deemed to have taken place .
                                                             \
                                                             \         •»
                                  Article  10 .
Upon delivery of the goods , the recipient country shall hand to the
agent of the EEC a certificate of acceptance stating the port of shipment ,
date of acceptance , the nature and quantity of the goods accepted and
including any comments on the quality of the goods , and send a copy thereof •
to the Commission of the European Communities *                      •
                                                     ï


               EUROPEAN COMMISSION
            Brussels, 27.7.2016
            COM(2016) 519 final
            Recommendation for a
            COUNCIL IMPLEMENTING DECISIONimposing a fine on Portugal for failure to take effective action to address an excessive deficit

               Recommendation for a

               COUNCIL IMPLEMENTING DECISION

               imposing a fine on Portugal for failure to take effective action to address an excessive deficit

               THE COUNCIL OF THE EUROPEAN UNION,

               Having regard to the Treaty on the Functioning of the European Union,

               Having regard to Regulation (EU) No 1173/2011 of the European Parliament and of the Council of 16 November 2011 on the effective enforcement of budgetary surveillance in the euro area, and in particular Article 6 thereof,

               Whereas,

               (1)The Council, by decision adopted on 12 July 2016, established that no effective action has been taken by Portugal to correct the excessive deficit in response to the Council recommendation of 21 June 2013 under Article 126(7) of the Treaty
                  1
               .

               (2)Following the Council's decision under Article 126(8) of the Treaty that Portugal has not taken effective action to correct the excessive deficit, the Commission should recommend the Council to impose a fine.

               (3)The fine to be imposed on Portugal should in principle amount to 0.2% of its GDP in the preceding year but its amount may be reduced or cancelled on grounds of exceptional economic circumstances or following a reasoned request by the Member State concerned.

               (4)The GDP of Portugal in 2015 was EUR 179.37 billion. 0.2% of that GDP corresponds to EUR 358 738 200.

               (5)In accordance with Article 2(3) of Regulation (EU) No 1173/2011, ‘exceptional economic circumstances’ means circumstances where an excess of a government deficit over the reference value is considered exceptional within the meaning of the second indent of point (a) of Article 126(2) TFEU, as specified in Regulation (EC) No 1467/97. According to the latter Regulation, such an excess is exceptional when it results (i) from an unusual event outside the control of the Member State concerned and with a major impact on the financial position of general government or (ii) from a severe economic downturn, meaning a negative annual GDP volume growth rate or an accumulated loss of output during a protracted period of very low annual GDP volume growth relative to its potential.

               (6)An evaluation of the application of the above-mentioned conditions to Portugal yields the following conclusions:

               Even though Portugal's annual GDP growth has contracted more rapidly than expected in 2011 and 2012, the economy has been on a mild recovery path since spring 2013. Unemployment also grew considerably until 2013 but returned to a downward path in 2014, as the Portuguese economy eventually began to recover. GDP has been growing largely above the growth of potential output since 2014 and this situation is expected to continue in 2016. According to the Commission 2016 spring forecast, GDP is projected to continue growing at 1.5% during 2016, further increasing to 1.7% in 2017. Consequently, there has not been a severe economic downturn over the period covered by the 21 June 2013 Council Recommendation (i.e. 2013-2015).

               Moreover, no unusual event outside the control of the government, with a major impact on public finances over 2013-2015, took place.

               (7)Therefore, exceptional economic circumstances that would warrant a reduction of the amount of the fine do not exist.

               (8)On 18 July 2016, Portugal submitted a reasoned request to the Commission to recommend that the Council set the amount of the fine to zero. In support of its request, Portugal gave the following reasons:

               (9)Portugal recalls the substantial fiscal consolidation effort and the structural reforms implemented during the recent economic adjustment programme. It also reaffirms the strong commitment to correct the excessive deficit in 2016, including the commitment to adopt measures when necessary to correct budgetary deviations, and to implement a fiscal adjustment in 2017 in line with the fiscal country specific recommendation adopted by the Council on 12 July 2016. Portugal considers that the application of sanctions would be detrimental to the achievement of the budgetary targets correcting the excessive deficit this year. It also points to economic policy commitments in particular as regards the stabilisation of the financial system and the measures presented in the 2016 National Reform Programme. Finally, Portugal considers any sanction inappropriate in the current European and international environment, in particular in view of the high uncertainties arising from the outcome of the referendum in the United Kingdom on the membership of the European Union.

               (10)An assessment of the abovementioned arguments leads to the considerations below.

               (11)While Portugal did not take effective action to address the excessive deficit in compliance with the Council's recommendation of 21 June 2013, the overall fiscal adjustment from 2010 to 2014 was indeed very sizeable. The reduction of the headline deficit net of one-offs by more than 5% of GDP was driven by the improvement of the structural balance by more than 6%. The fiscal adjustment has been accompanied by a comprehensive set of structural reforms under the adjustment programme that has been successfully completed on June 2014, setting the ground for a sounder economic recovery. Nonetheless, this momentum stalled after the conclusion of the economic programme as highlighted in the Council decision of 12 July 2016. Important challenges remain, as the still high private and public debt levels are a burden for the economy, and the still high unemployment hampers economic adjustment.

               (12)The commitment by the Portuguese authorities to correct the excessive deficit in 2016 and respect the fiscal country-specific recommendation in 2017 is an important sign of the intention of the Government to comply with the Stability and Growth Pact. For 2016, the government reiterates its commitment assumed in the Eurogroup of 11 February
                  2
                to adopt, when necessary, fiscal measures to correct any potential budget execution deviations. In particular, it commits to maintaining the freezing of certain appropriations amounting to 0.2% of GDP as highlighted in the Stability Programme. The annex attached to the reasoned request provides additional information on the way these appropriations can be used, making more credible the commitment not to spend them as long as the freeze is needed. First, it indicates that the appropriations have been earmarked for public institutions whose funding has already increased vis-à-vis 2015; hence they may eventually not request more funding. Second, to access these appropriations, any public service must present spending authorizations that require the explicit approval of the Minister of Finance. Finally, these appropriations are also on top of already budgeted appropriations and of reserves that are also subject to approval.

               (13)As regards the durable correction of the excessive deficit and, in particular, the budget for 2017, the reasoned request refers mainly to the forthcoming Draft Budgetary Plan to be submitted in October and commits to compliance with the fiscal country-specific recommendation, which requires a structural adjustment of at least 0.6% of GDP. This is an improvement compared to the structural adjustment of only 0.35% of GDP laid out in the Stability Programme for 2017 while the specific adjustment measures are still to be defined.

               (14)As regards the alleged detrimental effect of sanctions to the correction of the excessive deficit in 2016, the fine is limited by Article 6(1)Regulation (EU) No 1173/2011 to 0.2% of GDP, an amount small enough to be compatible with the correction of the excessive deficit. Moreover, any potential fine would not impact the variation of the structural balance.

               (15)The commitment to proceed with structural reforms in key economic policy areas and with measures to stabilise the banking system is welcome as indeed they are also part of the relevant country-specific recommendations addressed to Portugal. With respect to other structural reforms planned for 2016 and onwards, like those intended to improve the business environment or address the undercapitalisation of firms, the measures indicated do not depart substantially from what was already presented in the 2016 National Reform Programme. While in principle these reforms are sound, they are subject to implementation risks. Finally, the annex refers explicitly to the need to define a programme to reduce non-performing loans.

               (16)Regarding the appropriateness of the decision in the current European and international environment, the Council is fully aware of increased uncertainties in the current context, in particular in view of the outcome of the referendum in the United Kingdom on the membership of the European Union.

               (17)In view of Portugal's reasoned request and having regard of the previous points, notably the fiscal adjustment undergone during the economic adjustment programme which was accompanied by a comprehensive set of structural reforms; the commitments (i) to adopt, when necessary, fiscal measures to correct any potential budget execution deviations in 2016, (ii) for an additional structural adjustment of 0.25% of GDP in 2017 compared with the adjustment of 0.35% of GDP laid out in the April 2016 Stability Programme, and (iii) for structural reforms in key areas in view of existing challenges including measures to stabilise the banking system, the reasons put forward by Portugal are considered to warrant a cancellation of the fine of 0.2% of GDP.

               HAS ADOPTED THIS DECISION:

               Article 1

               The fine of 0.2% of GDP to be imposed on Portugal for failure to take effective action in response to the Council recommendation of 21 June 2013 is cancelled.

               Article 2

               This decision is addressed to the Portuguese Republic.

               Done at Brussels,

                  For the Council

                  The President

                     (1)

                         See Council's decision 427/1

                     (2)

                        See

                        Eurogroup Statement 47/16


RECOMMENDATION FOR A COUNCIL DECISION CONCERNING THE CONCLUSION OF A PROTOCOL TO THE COOPERATION AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE KINGDOM OF MOROCCO CONSEQUENT ON THE ACCESSION OF THE KINGDOM OF SPAIN AND THE PORTUGUESE REPUBLIC TO THE COMMUNITY


title: RECOMMANDATION FOR A COUNCIL DECISION on the conclusion of an agreement between the European Economic Community and the Republic of Bolivia for the supply of soft wheat as food aid (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (74) 1708
Vol. 1974/0272
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---    COMMISSION OF THE EUROPEAN COMMUNITIES
                                                         COM(74)1708 final
                                                         Brussels , 21 October 1974
                               RECOMMANDATION FOR A
                                 COUNCIL DECISION
             on the conclusion of an agreement between the European
             Economic Community and the Republic of Bolivia for the
                        supply of soft wheat as food aid
                   ( submitted to the Council by the Commission)
C0M ( 74) 1708 final
 ---pagebreak---  THE COUNCIL OF THE EUROPEAN COMMUNITIES,
 Having regard to the Treaty establishing the Suropean Eoonomic Community ,
 and in particular Articles 113 » 114 and 228 , thereof ;
 Having regard to the Recommendation from the Commission j
 Whereas the European Economic Community has deposited a Declaration for
 provisional application of the 1971 Food Aid Convention ; whereas that
 Convention has been applicable since 1 July 1971 ?
Whereas the     Republic of Bolivia    on 19 February 1974
has requested food aid ;
Whereas in view of the cereal supply situation in Bolivia that country
 should be accorded , by way of gift , 5»000 tonnes of soft wheat under the
Community Food Aid Programme for 1973/74 J
DECIDES :
                               Article  1
On behalf of the European Economic Community an Agreement , the text whereof
is annexed hereto , shall be conoluded between the European Economic Community
and the . Republic of Bolivia for supply of soft wheat as food aid .
                               Article  2
The President of the Council is hereby authorized to designate those who
are to sign the Agreement and to confer on them the requisite powers to
bind the Community .
                                                                      Ψ
Done at Brussels ,                19
                                                    For the Council
                                                     The President
 ---pagebreak---               AGREERENT
BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
AND THE  REPUBLIC OF BOLIVIA        ON
THE SUPPLY OF FOOD AID IN THE FORM OF
 SOFT WHEAT .
 ---pagebreak---  THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
                                           of the one part ,
 THE GOVERNMENT OF THE REPUBLIC OF BOLIVIA
                                           of the other part ,
HAVE DECIDED to conclude this Agreement and to this end have
designate   as their plenipotentiaries :
THE COUNCIL OF THE EUROPEAN COMMUNITIES :
THE GOVERNEMENT OF THE  REPUBLIC OF BOLIVIA :
WHO HAVE AGREED AS FOLLOWS :
 ---pagebreak---                             ARTICLE I
The European Economic Community shall supply by way of gift to the
Republio of Bolivia (hereafter referred to as "the recipient country ") a
 quantity of 5*000 . tonnes of soft wheat     under the Community 's food aid
programme in cereals for 1973/74 *
       /                                                         •
                            ARTICLE II
Deliveries will be made in bulk FOB in accordance with the details laid
down in the Annex which forms an integral part of the present Agreement .
                            ARTICLE III
The recipient country undertakes to make all necessary arrangements for the
transport and insurance of the products from point of delivery to places
of destination .
It undertakes to  exercise the greatest care to ensure that the tendering
arrangements for  sea transport do not prejudice the free play of fair ,
competition . Any problems aritiing in this connection shall be the subject
of consultations  under Article VIII of the present Agreement .
                            ARTICLE IV
The recipient country undertakes to use the product received as aid for
purposes of consumption and to apply ,- for the sale of the product on its
market , the prices normally charged on that market for products of '
comparable quality . The proceeds from this sale shall be paid into a
special account with the Central Bank and allocated to the financing of
one or more development projects under arrangements which have been
agreed in advance between the recipient country, and the European Economio
Community .                                               •
 ---pagebreak---                                ARTICLE  V
 The Contracting Parties undertake to implement this Agreement in such a way
 as to avoid any prejudice to the normal structure of national production
 and international trade . To this end they shall take any measures required
 to ensure that supplies as aid are in addition to and do not replace business
 transactions which might reasonably be expected in the absence of such supplie
 In particular , the recipient country undertakes to import commercially from
whatever source between 1 January and 31 December 197^ a minimum Quantity o
  130.000 tonnes          0 f soft wheat or its equivalent in flour of soft wheat .
                               ARTICLE  VI
The recipient country shall take all steps required to prevent :
( i ) the re-export of the product received as aid and also of any product,*
         and by-products resulting therefrom ;
( ii ) the export , commercially or otherwise , within a period of six months
         commencing from the final delivery , either of any product procured
         locally of the same nature as that received as aid , or of any products
         and by-products resulting therefrom .               '
                               ARTICLE  VII
The recipient country undertakes to inform the European Economic Community
of how this Agreement is implemented . To this end it shall provide the
Commission of the European Communities with the following details :
    ( i ) Immediately after the unloading of each cargo : ports and dates of
          arrival of vessel } nature , quantity and any observations as to the
          quality of the products unloaded j date on which unloading was
          completed ; costs of sea transport and of insurance relating thereto }
  ( ii ) Every three months until the quantities received as aid have been
          fully used : quantities sold ; manner of sale ; actual selling prices ;
          normal selling costs on the recipient country 's market ; costs of
          insurance ( and of transport if applicable ) from the port of unloading
          to the places of destination ;
 ---pagebreak---  ( iii ) On 15 January every year until the special account has "been fully
         expended :
         a) Summary of the account ( incomings and outgoings ) to 31 December
             of the previous year }
         b ) Stage of progress of the project or projects , indicating the
             total resources expended to that stage .
                               ARTICLE  VIII
The Contracting Parties shall at the request of either consult each other
on any questions concerning the implementation of this Agreement .
                               ARTICLE  IX
This Agreement is drawn up in duplicate in the Danish , Dutch , English ,
French , German , Italian and Spanish languages , each of these texts having
equal force .
 ---pagebreak---                         General provisions
                            Article   1
 Delivery shall be effected and risks shall pass form the European Economic
 Community , hereinafter referred to as the EEC , to the recipient country at
 the moment at which the goods are put down at the point of exportation
 named by the Commission of the European Communities at the berth specified
 by the recipient country or its agent referred to in Article 3 s-nd under the
terms specified in the following articles . Without prejudice to Articles 8 and
 9 the EEC shall bear all costs up to delivery and the recipient country those
beyond delivery .
                           Article   2
On delivery a tolerance of 5 % less than the quantity of the product to be
supplied in accordance with article I of the Agreement shall be admissible .
                           Article  3
The EEC shall appoint an agent to implement the provisions of the present
Annex – or for each consignment – whose name and address it shall make
known to the recipient country immediately following his appointment .
The recipient country shall appoint an agent in the port or ports of ship
ment , whose name and address it shall make known to the EEC with all
despatch and if possible before the appointment of agent of the EEC .
                           Article  4
Before implementing the procedures for appointing the agent of the EEC
referred to in Article 3 » the Commission of the European Communities and
the recipient country shall jointly establish the period during which
delivery must begin .
              Obligations of the European Economic Community
                           Article  5
Should the EEC not be in a position to carry out delivery on the date and
( if applicable ) on the schedule as provided in Article 7 » all costs
arising for the recipient country - for example demurrage void freight
and dead freight - shall be borne by the EEC .
 ---pagebreak---  The charges and tho arrangements relating to demurrage laid down in the
 contract "between the recipient country and the carrier must have been
 agreed in advance by the recipient country and the agent of the EEC .
The other costs referred to in the first paragraph shall only "be refunded
"by the EEC if they have been paid by the recipient country with the approval
of the EEC .
                                Article  6
 Should it prove impossible for the EEC to supply all or part of the goods
on the date and within the tirae-liraits provided for in Article 7 and- without
prejudice to the provisions of Article 5 » &' new date and a new time-limit
shall be agreed between the agents of the EEC and of the recipient country
for the delivery of all the goods or of tho undelivered part thereof .
                    Obligations of the recipient country
                                Article  7
After contacting tho EEC , the recipient country uhall procure one or more
vessels to transport all the quantities provided for in Article 1 of the
Agreement , of dimensions corresponding to the normal capacity of the port of
shipment ; these vessels must be ready for loading on a date falling within
                                                         I
the period referred to in Article 4 *
The agent of the recipient country shall inform the EEC of this date
immedately on learning it , and also that for commencement of delivery ,
if possible twenty days in advance and in any case ten days before the date
for commencement of delivery .
He shall establish with the agent of the EEC the schedule to which delivery
                                                                         r
shall take place .
                                Article  8
Should the recipient country be unable to begin loading on the date provided
for in Article 7 » paragraph 1 , the agent of the recipient country shall
inform the agent of the EEC without delay .
 ---pagebreak---  In this event a new date for the commencement of delivery and ( if applicable )
 a new schedule could "be agreed "between the agents of the EEC and of the
 recipient country . The costs arising from this delay shall in all cases
 except force majeure be borne by the recipient country .
 Should the new date provided for in paragraph 2 be more than 30 clear days
 after the date for loading provided for in Article 7 » paragraph 1 , the EEC
may dispose of the goods without prejudice to its commitment under Article 1
of this Agreement .
                                   Article  9
If the quantity made available for loading on a vessel cannot be put on
board in its entirety , the recipient country shall inform the EEC as soon
as possible and no later than fifteen clear days after loading has been
completed whether it intends to accept or to renounce the balance .
In the former case the provisions of Article b , paragraphs 2 and 3 , shall
apply to the balance , i-f delivery has not yet taken place .
In the latter case the EEC may consider that it has discharged its commitment
to the recipient country under Article 1 of this Agreement and shall bear
the costs resulting from such renunciation .
In any event after the expiry of an interval of fifteen clear days and in
the absence of any notice on the part of the recipient country , the renun
ciation shall be deemed to have taken place .
                                   Article  10
Upon delivery of the goods , the recipient country shall hand to the
agent of the EEC a certificate of acceptance stating the port of shipment ,
                                                                                !
date of acceptance , the nature and quantity of the goods accepted and            \
including any comments on the quality of the goods , and send a copy thereof
to the Commission of the European Communities .                                  ;