1. 1 M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 29 – Customs union Bilateral screening: Chapter 29 PRESENTATION OF MONTENEGRO Brussels, 20-21 June 2013

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

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

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

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

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

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

8. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Non preferential origin Procedure for issuing certificates of domestic origin of goods (Articles 22-29 of the Implementing Provisions to the Customs Law) issued by the Chamber of Commerce of Montenegro only if the requirements are met

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

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

11. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin -Generalized System of Preferences (GSP)- Possibility of using GSP rules of origin is prescribed by the Article 28 of the Customs Law : 1.Paragraph 2- ME provides for the right of use of GSP; 2.Paragraph 3- ME is the beneficiary country ME GSP rules of origin are prescribed by the Articles 36-67 of the Implementing Provisions to the Customs Law

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

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

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

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

16. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union Preferential origin -Free Trade Agreements- Multilateral: CEFTA 2006- in the application as of 27 July 2007 - general characteristics

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

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

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

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

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

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

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

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

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

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

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

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

29. CUSTOMS UNION Chapter 29: M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 29: Customs union THANK YOU FOR YOUR ATTENTION! Stojanka Milošević Customs Administration of Montenegro Head of Department of value, origin of goods and laboratory tel. +382 20 442 018, e-mail: stojanka.milosevic@carina.gov.mestojanka.milosevic@carina.gov.me Ana Vulić Customs Administration of Montenegro Advisor in Department of value, origin of goods and laboratory tel. +382 20 442 018, e-mail: ana.vulic@carina.gov.meana.vulic@carina.gov.me