Commission Decision (EU) 2023/1810 of 19 September 2023 on a request for extended cumulation between Cambodia and Vietnam, in accordance with Article 56(1) of Delegated Regulation (EU) 2015/2446, as regards the rules of origin used for the purposes of the scheme of generalized tariff preferences pursuant to Delegated Regulation (EU) 2015/2446 for certain materials or parts used in the production of bicycles

Commission Decision (EU) 2023/1810 of 19 September 2023 on a request for extended cumulation between Cambodia and Vietnam, in accordance with Article 56(1) of Delegated Regulation (EU) 2015/2446, as regards the rules of origin used for the purposes of the scheme of generalized tariff preferences pursuant to Delegated Regulation (EU) 2015/2446 for certain materials or parts used in the production of bicycles 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 OJ L 269, 10.10.2013, p. 1. , 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 OJ L 343, 29.12.2015, p. 1. , 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 Regulation (EU) No 978/2012 of the European Parliament and of the Council of 25 October 2012 applying a scheme of generalised tariff preferences and repealing Council Regulation (EC) No 732/2008 (OJ L 303, 31.10.2012, p. 1). . 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 Commission Delegated Regulation (EU) 2020/550 of 12 February 2020 amending Annexes II and IV to Regulation (EU) No 978/2012 of the European Parliament and of the Council as regards the temporary withdrawal of the arrangements referred to in Article 1(2) of Regulation (EU) No 978/2012 in respect of certain products originating in the Kingdom of Cambodia (OJ L 127, 22.4.2020, p. 1). . (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 Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council laying down the Union Customs Code (OJ L 343, 29.12.2015, p. 558). . (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

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 CodeDescription of goods320890

Other 320990

Other 381400

Organic composite solvents and thinners, not elsewhere specified or included; prepared paint or varnish removers. 392350

Stoppers, lids, caps and other closures 392390

Other 401150

Of a kind used on bicycles 401290

Other 401320

Of a kind used on bicycles 401699

• - Other 481910

Cartons, boxes and cases, of corrugated paper or paperboard 481920

Folding cartons, boxes and cases, of non-corrugated paper or paperboard 482110

Printed 482390

Other 490890

Other 491199

• - Other 730300Tubes, pipes and hollow profiles, of cast iron.730490

Other 730799

• - Other 731511

Roller chain 731822

• - Other washers 731824

Cotters and cotter-pins 732690

Other 741533

• - Screws; bolts and nuts 760120

Aluminium alloys 760692

• - Of aluminium alloys 760810

Of aluminium, not alloyed 760820

Of aluminium alloys 761610

Nails, tacks, staples (other than those of heading 8305), screws, bolts, nuts, screw hooks, rivets, cotters, cotter-pins, washers and similar articles; 830250

Hat-racks, hat-pegs, brackets and similar fixtures 831130

Coated rods and cored wire, of base metal, for soldering, brazing or welding by flame 850760

Lithium-ion 852872

• - Other, colour 853710

For a voltage not exceeding 1000 V 871410

Of motorcycles (including mopeds) 871491

• - Frames and forks, and parts thereof 871492

Wheel rims and spokes 871493

• - Hubs, other than coaster braking hubs and hub brakes, and free-wheel sprocket-wheels 871494

Brakes, including coaster braking hubs and hub brakes, and parts thereof 871495

• - Saddles 871496

Pedals and crank-gear, and parts thereof 871499

• - Other

Annex

ANNEX II Finished bicycles produced in Cambodia under extended cumulation with Vietnam HS2022 CodeDescription of goods871160

With electric motor for propulsion 871200Bicycles and other cycles (including delivery tricycles), not motorised.