Address https://gelex.eu/eli/EU/decision/2023/1810@2023-09-19/en

Contents

1. Preamble
2. 1. Article 1
   2. Article 2
   3. Article 3
   4. Article 4
   5. Article 5
3. ANNEX
4. ANNEX I Materials or parts used in the production of bicycles, originating in Vietnam in accordance with the rules established by Protocol 1 of the EU-Vietnam FTA, which are to be cumulated in the manufacture of bicycles in Cambodia under extended cumulation
5. -
6. - -
7. ANNEX II Finished bicycles produced in Cambodia under extended cumulation with Vietnam
8. -

THE EUROPEAN COMMISSION,

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

Having regard to Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code, and in particular Article 64(3) thereof,

Having regard to Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code, and in particular Article 56 thereof,

Whereas:

(1) Article 56(1) of Delegated Regulation (EU) 2015/2446 provides that beneficiary countries of the European Union’s generalised scheme of preferences (GSP) may request extended cumulation with a country with which the Union has a free-trade agreement (FTA) in accordance with Article XXIV of the General Agreement on Tariffs and Trade (GATT) in force.

(2) Articles 56(1) and 56(2) of Delegated Regulation (EU) 2015/2446 set the conditions under which beneficiary countries of the GSP may be allowed to use, under extended cumulation, materials from a country with which the Union has a free-trade agreement in accordance with Article XXIV GATT in force. In particular, Article 56(1) provides that such cumulation may only be applied after the countries involved in extended cumulation have undertaken to comply or ensure compliance with the GSP rules of origin, the rules of origin laid down in the EU-Vietnam FTA and all other provisions concerning the implementation of the rules of origin, and to provide the administrative cooperation necessary to ensure the correct implementation of these rules both with regard to the Union and also between themselves.

(3) The Commission is to take a decision on such a request in accordance with its internal procedures.

(4) By letter dated 2 December 2022, Cambodia submitted a request for extended cumulation with Vietnam pursuant to Article 56(1) of Delegated Regulation (EU) 2015/2446. The request concerns certain materials or parts used in the production of bicycles originating in Vietnam to be used as originating materials in Cambodia in order to produce and export to the European Union under the GSP preferential rates bicycles under Harmonised System (HS) headings 87.11, 87.12 and 95.03.

(5) In support of its request, Cambodia recalled that, since Vietnam has been removed from the list of beneficiary countries of the GSP general arrangement as from 1 January 2023, the Vietnamese materials or parts used in the production of bicycles are considered non-originating, and as a result, the Cambodian bicycle producers are not able to benefit from the GSP duty-free access for Cambodian bicycles into the Union. At the same time, in order to diversify its economy and to continue to provide employment and livelihood for thousands of people, the Cambodian bicycle industry needs to continue to have access to certain materials or parts used in the production of bicycles originating in Vietnam under extended cumulation as provided by Article 56(1) of Delegated Regulation (EU) 2015/2446.

(6) The request is accompanied by a Joint Undertaking between Cambodia and Vietnam on administrative cooperation in the framework of Article 56(1)(a) of Delegated Regulation (EU) 2015/2446, for ensuring on one hand compliance with the relevant rules of origin under the EU-Vietnam FTA for Vietnamese originating materials to be used in the manufacture of bicycles in Cambodia and the rules of origin under the GSP with regard to the products exported by Cambodia to the Union, and on the other hand to provide the administrative cooperation both with regard to the Union and between themselves.

(7) The Joint Undertaking mentioned above contains in annexes a list of the materials or parts used in the production of bicycles of Vietnamese origin concerned by the extended cumulation, under HS chapters 32, 38, 39, 40, 48, 49, 73, 74, 76, 83, 85 and 87, as well as the list of addresses and contact details of the Cambodian and Vietnamese government authorities responsible for issuing and verifying the proof of origin.

(8) The Commission examined the request from Cambodia, including the Joint Undertaking between Cambodia and Vietnam on administrative cooperation and its annexes, and concluded that the conditions related to the granting of the extended cumulation for the materials or parts used in the production of bicycles originating in Vietnam to be used as originating materials in Cambodia for manufacturing and exporting bicycles to the Union under GSP are fulfilled. Currently Cambodia is a GSP beneficiary country in the sense of Article 2(d) of Regulation (EU) No 978/2012 of the European Parliament and of the Council. Also, bicycles do not appear in the list of products in respect of which the tariff preferences granted to Cambodia under the general arrangement referred to in point 1(a) of Article 1(2) of the GSP regulation have been temporarily withdrawn by Commission Delegated Regulation (EU) 2020/550.

(9) In light of the above, the possibility for Cambodia to apply extended cumulation to certain materials or parts used in the production of bicycles under HS chapters 32, 38, 39, 40, 48, 49, 73, 74, 76, 83, 85 and 87 of Vietnamese origin, for manufacturing bicycles under HS headings 87.11, 87.12 should be granted. Nevertheless, due to the fact that the requested products covered by heading 95.03 are already duty free, heading 95.03 shall not be included in the present Decision.

(10) The statements on origin made out in relation to products manufactured using cumulation should contain a specific mention to identify when cumulation is applied in line with Annex 22-07 of Commission Implementing Regulation (EU) 2015/2447.

(11) The cumulation granted by this Decision should apply until the date set in Article 43(3) of Regulation (EU) No 978/2012.

(12) The European Commission will monitor the evolution of the imports resulting from the cumulation in accordance with this Decision,

HAS ADOPTED THIS DECISION:

Article 1

Cambodia is hereby entitled to use, in accordance with Article 56(1) of Delegated Regulation (EU) 2015/2446, materials or parts used in the production of bicycles listed in Annex I, originating in Vietnam in accordance with Annex II to Protocol 1 of the EU-Vietnam FTA, under extended cumulation of origin, in order to produce and export to the Union under the GSP preferential customs duties the bicycles listed in Annex II, provided that Cambodia remains at the time of exportation of the product to the Union, a GSP beneficiary country in the sense of Article 2(d) of Regulation (EU) No 978/2012, and the preferential arrangements referred to in Article 1(2) of the same Regulation for bicycles listed in Annex II are not withdrawn temporarily in accordance with Article 19 of Regulation (EU) No 978/2012, and that the rules of origin laid down in Subsection 2 of Section 2 of Chapter 1 of Title II of Delegated Regulation (EU) 2015/2446 apply.

Article 2

Statements on origin made out by exporters in Cambodia with regard to products referred to in Article 1 shall include the mention extended cumulation with Vietnam in the placeholder number (6d) for the origin criterion in Annex 22-07 of Implementing Regulation (EU) 2015/2447.

Article 3

The competent authorities of Cambodia shall forward to the Commission, by the end of the month following each calendar quarter, a quarterly report on the application of the cumulation referred to in Article 1. Such report shall provide the list of statements on origin made out during the last period for the products referred to in Article 1, the exporters concerned identified by their REX number, the quantities and HS heading of materials or parts used in the production of bicycles used originating in Vietnam, and the quantities of bicycles exported to the Union.

Article 4

The products produced under cumulation referred to in Article 1 shall benefit from the general arrangement referred to in point 1(a) of Article 1(2) of Regulation (EU) No 978/2012 when imported into the Union until the date set in Article 43(3) of that Regulation.

Article 5

This Decision shall enter into force on the day of its publication in the Official Journal of the European Union.

Done at Brussels, 19 September 2023. For the Commission The President Ursula von der Leyen

ANNEX

(1) Other (2) Other (3) Organic composite solvents and thinners, not elsewhere specified or included; prepared paint or varnish removers. (4) Stoppers, lids, caps and other closures (5) Other (6) Of a kind used on bicycles (7) Other (8) Of a kind used on bicycles (9) Other (10) Cartons, boxes and cases, of corrugated paper or paperboard (11) Folding cartons, boxes and cases, of non-corrugated paper or paperboard (12) Printed (13) Other (14) Other (15) Other (16) Other (17) Other (18) Roller chain (19) Other washers (20) Cotters and cotter-pins (21) Other (22) Screws; bolts and nuts (23) Aluminium alloys (24) Of aluminium alloys (25) Of aluminium, not alloyed (26) Of aluminium alloys (27) Nails, tacks, staples (other than those of heading 8305), screws, bolts, nuts, screw hooks, rivets, cotters, cotter-pins, washers and similar articles; (28) Hat-racks, hat-pegs, brackets and similar fixtures (29) Coated rods and cored wire, of base metal, for soldering, brazing or welding by flame (30) Lithium-ion (31) Other, colour (32) For a voltage not exceeding 1000 V (33) Of motorcycles (including mopeds) (34) Frames and forks, and parts thereof (35) Wheel rims and spokes (36) Hubs, other than coaster braking hubs and hub brakes, and free-wheel sprocket-wheels (37) Brakes, including coaster braking hubs and hub brakes, and parts thereof (38) Saddles (39) Pedals and crank-gear, and parts thereof (40) Other Anx. i. HS2022 Code Description of goods 320890 320990 381400 392350 392390 401150 401290 401320 401699 481910 481920 482110 482390 490890 491199 730300 Tubes, pipes and hollow profiles, of cast iron. 730490 730799 731511 731822 731824 732690 741533 760120 760692 760810 760820 761610 830250 831130 850760 852872 853710 871410 871491 871492 871493 871494 871495 871496 871499

ANNEX I Materials or parts used in the production of bicycles, originating in Vietnam in accordance with the rules established by Protocol 1 of the EU-Vietnam FTA, which are to be cumulated in the manufacture of bicycles in Cambodia under extended cumulation

HS2022 Code Description of goods 320890 320990 381400 392350 392390 401150 401290 401320 401699 481910 481920 482110 482390 490890 491199 730300 Tubes, pipes and hollow profiles, of cast iron. 730490 730799 731511 731822 731824 732690 741533 760120 760692 760810 760820 761610 830250 831130 850760 852872 853710 871410 871491 871492 871493 871494 871495 871496 871499 (1) Other (2) Other (3) Organic composite solvents and thinners, not elsewhere specified or included; prepared paint or varnish removers. (4) Stoppers, lids, caps and other closures (5) Other (6) Of a kind used on bicycles (7) Other (8) Of a kind used on bicycles (9) Other (10) Cartons, boxes and cases, of corrugated paper or paperboard (11) Folding cartons, boxes and cases, of non-corrugated paper or paperboard (12) Printed (13) Other (14) Other (15) Other (16) Other (17) Other (18) Roller chain (19) Other washers (20) Cotters and cotter-pins (21) Other (22) Screws; bolts and nuts (23) Aluminium alloys (24) Of aluminium alloys (25) Of aluminium, not alloyed (26) Of aluminium alloys (27) Nails, tacks, staples (other than those of heading 8305), screws, bolts, nuts, screw hooks, rivets, cotters, cotter-pins, washers and similar articles; (28) Hat-racks, hat-pegs, brackets and similar fixtures (29) Coated rods and cored wire, of base metal, for soldering, brazing or welding by flame (30) Lithium-ion (31) Other, colour (32) For a voltage not exceeding 1000 V (33) Of motorcycles (including mopeds) (34) Frames and forks, and parts thereof (35) Wheel rims and spokes (36) Hubs, other than coaster braking hubs and hub brakes, and free-wheel sprocket-wheels (37) Brakes, including coaster braking hubs and hub brakes, and parts thereof (38) Saddles (39) Pedals and crank-gear, and parts thereof (40) Other

-

Other

Other

Organic composite solvents and thinners, not elsewhere specified or included; prepared paint or varnish removers.

Stoppers, lids, caps and other closures

Other

Of a kind used on bicycles

Other

Of a kind used on bicycles

- -

Other

-

Cartons, boxes and cases, of corrugated paper or paperboard

Folding cartons, boxes and cases, of non-corrugated paper or paperboard

Printed

Other

Other

- -

Other

-

Other

- -

Other

Roller chain

Other washers

Cotters and cotter-pins

-

Other

- -

Screws; bolts and nuts

-

Aluminium alloys

- -

Of aluminium alloys

-

Of aluminium, not alloyed

Of aluminium alloys

Nails, tacks, staples (other than those of heading 8305), screws, bolts, nuts, screw hooks, rivets, cotters, cotter-pins, washers and similar articles;

Hat-racks, hat-pegs, brackets and similar fixtures

Coated rods and cored wire, of base metal, for soldering, brazing or welding by flame

Lithium-ion

- -

Other, colour

-

For a voltage not exceeding 1000 V

Of motorcycles (including mopeds)

- -

Frames and forks, and parts thereof

Wheel rims and spokes

Hubs, other than coaster braking hubs and hub brakes, and free-wheel sprocket-wheels

Brakes, including coaster braking hubs and hub brakes, and parts thereof

Saddles

Pedals and crank-gear, and parts thereof

Other

(1) With electric motor for propulsion Anx. ii. HS2022 Code Description of goods 871160 871200 Bicycles and other cycles (including delivery tricycles), not motorised.

ANNEX II Finished bicycles produced in Cambodia under extended cumulation with Vietnam

HS2022 Code Description of goods 871160 871200 Bicycles and other cycles (including delivery tricycles), not motorised. (1) With electric motor for propulsion

-

With electric motor for propulsion

Versions

1. 2023-09-19