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Association Agreement
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Egyptian Agricultural and Processed Agricultural
Products
Introduction
The EU/Egypt Association Agreement entered into
force on 1 June 2004, after ratification by the
Egyptian People’s Assembly, the European Union
and the European Union Member States. The
Association Agreement reflects the approach of
the Barcelona Process, as it contains provisions
with respect to the three pillars of the
Euro-Mediterranean partnership, namely political
dialogue, trade and economic integration, and
social and cultural co-operation. It is
concluded for an unlimited period and its
overall objective is to establish the
appropriate framework for co-operation and
partnership, within the larger regional context
and building on the significant development
assistance co-operation between Egypt and the
European Union.
The core of the AA is the establishment of a
Free Trade Area between the EU and Egypt, which
implies reciprocal tariff liberalisation for
industrial and agricultural goods.
For industrial goods, Egypt reciprocated the
preferential treatment granted by the EU under
the 1977 Co-operation Agreement, by dismantling
all industrial duties over a transitional period
of up to 15 years from entry into force of the
AA.
For agricultural goods, the EU significantly
improved its concessions for Egyptian
agricultural exports by increasing the tariff
quotas granted for Egypt’s main exports.
Egyptian agricultural products and processed
agricultural products included in Protocol 1 and
Annex II of Protocol 3 of the AA are receiving a
preferential treatment when exported to the EU
(in some cases within the limits of a tariff
quota).
Association Agreement Provisions
The provisions applied to agricultural and
processed agricultural products are included in
Chapter 2 of the AA.
Agricultural products originating in Egypt
listed in Protocol 1 on importation into the EU
shall be subject to the arrangements set out in
that Protocol. Processed agricultural products
originating in Egypt listed in Annex II to
Protocol 3 on importation into the EU shall be
subject to the arrangements set out in that
Protocol
According to Article 13, Egypt and the European
Commission shall progressively establish a
greater liberalisation of their trade in
agricultural, fisheries and processed
agricultural products of interest to both
parties. For this purpose, during the third year
of implementation of the AA, the EU and Egypt
shall examine the situation in order to
determine the measures to be applied by both
parties from the beginning of the fourth year
after the entry into force of the Agreement to
achieve the objectives of the said Article.
1. Agricultural Products
Egyptian agricultural products listed in Annex
to Protocol 1 of the AA are benefiting since the
01.01.2004 from a preferential treatment when
exported to the EU.
For almost all products on the list, the
Association Agreement grants a 100% reduction of
customs duties, in many cases up to certain
tariff quota, in other cases free. Most of the
tariff quota volumes are increased annually by
3% of the volume of the previous year. For the
quantities imported in excess of the quotas, the
common customs duties shall be applied in full
or reduced as indicated in the Annex. Finally,
for some products the tariff quota only applies
during a certain period of the year.
Following the accession of the new 10 Member
States to the European Union, it was agreed by
both parties to increase certain tariff quotas
to reflect the traditional trade flows on
agricultural products between Egypt and the new
Member States. The additional quotas granted to
Egypt were published in Commission Regulation
2256/2004.
2. Processed Agricultural Products
Egyptian processed agricultural products listed
in Annex II to Protocol 3 of the AA are
benefiting since the 01.01.2004 from a
preferential treatment when exported to the EU.
In principle, all products listed are benefiting
from duty-free access to the EU without any
quantitative restrictions. However, products
listed in Tables 2 and 3 of the mentioned Annex
are charged for the agricultural component of
the product (agricultural products actually used
in the manufacture of the processed agricultural
product) with a specific duty per each 100kg of
imported product.
For products listed in Table 3, customs duties
are eliminated within the limit of a tariff
quota.
Tariff Quotas
Tariff quotas are allocated on a first-come
first-served basis not automatically but upon
submission by the importer of a request to
benefit from a tariff quota on the declaration
for entry of the goods into free circulation of
the Community. This is done by inserting
preference code 320 in box 36 of the single
administrative document (SAD) used as
declaration for entry into free circulation of
the goods. Furthermore, the importer has to
indicate the order number of the tariff quota
for which the benefit is asked, in box 39 of the
SAD. See for the codes to be used on the SAD,
Annex 38 of Commission Regulation 2454/1993
laying down provisions for the implementation of
Council Regulation 2913/1992 establishing the
Community Customs Code.
If the importer does not make such request he
will be charged with the common custom duty even
if there is still quota available.
Copies of the above mentioned regulations can be
found in the following internet address:
http://europa.eu.int/comm/taxation_customs/customs/
customs_duties/tariff_aspects/quotas/index_en.htm
Any benefit of a preferential duty rate is
always subject to the submission of the required
proof of origin: movement certificate EUR1 or,
under certain conditions, a declaration given by
the exporter on the invoice (see Article 16 of
Protocol 4 on the definition of the concept of
'originating products' and methods of
administrative cooperation, to the EU-Egypt
association agreement).
The importer has also the possibility of
recovering the excess duties paid on goods for
which he/she did not ask for the preferential
duty. According to Article 236(2) of the
Community Customs Code (Council Regulation
2913/1992) and Articles 878 to 898 of Commission
Regulation 2454/1993, as long as sufficient
balance is available in the tariff quota
concerned and upon fulfilment of the required
conditions on originating products, import
duties shall be repaid upon submission of an
application to the appropriate customs office.
Level of use of the Tariff Quotas
Any person interested in checking the
availability or situation of a tariff quota can
go to the following website address, where
he/she will have to define the country of origin
and the "order number" of the quota. For each
tariff quota, you will get, among others,
information on the start and end date for the
quota, the balance and the products associated
to the quota.
http://europa.eu.int/comm/taxation_customs/dds/en/qotcau.htm
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