Article 5 · Regulation (EU) No 654/2014

Contents

Article 5Commercial policy measures#

1.Without prejudice to any international agreement to which the Union is a party, the commercial policy measures that may be enacted by means of an implementing act pursuant to Article 4(1) shall consist of:

(a)the suspension of tariff concessions and the imposition of new or increased customs duties, including the re-establishment of customs duties at the most favoured nation level or the imposition of customs duties beyond the most favoured nation level, or the introduction of any additional charge on imports or exports of goods;

(b)the introduction or increase of quantitative restrictions on imports or exports of goods, whether made effective through quotas, import or export licences or other measures;

(ba)the suspension of obligations regarding trade in services and the imposition of restrictions on trade in services;

(bb)the suspension of obligations with respect to trade-related aspects of intellectual property rights granted by a Union institution or agency and valid throughout the Union, and the imposition of restrictions on the protection of such intellectual property rights or their commercial exploitation, in relation to right-holders who are nationals of the third country concerned;

(c)the suspension of concessions regarding goods, services or suppliers in the area of public procurement, through:

(i)the exclusion from public procurement of suppliers of goods or services established in and operating from the third country concerned and/or of tenders the total value of which is made up of more than 50 % of goods or services originating in the third country concerned; and/or

(ii)the imposition of a mandatory price penalty on tenders of suppliers of goods or services established in and operating from the third country concerned and/or on that part of the tender consisting of goods or services originating in the third country concerned.

1a.When selecting measures to be adopted pursuant to point (ba) of paragraph 1 of this Article, the Commission shall always consider measures according to the following hierarchy of steps:

(a)measures relating to trade in services requiring an authorisation valid throughout the Union and based on secondary legislation, or, where no such measures are available,

(b)measures relating to other services in areas where extensive Union legislation exists, or, where no such measures are available,

(c)measures which the information-gathering exercise conducted pursuant to Article 9(1a), as provided for in point (a) of Article 5(1b), has demonstrated would not impose a disproportionate burden on the process of administration of relevant national regulations.

1b.Measures adopted pursuant to points (ba) and (bb) of paragraph 1 shall:

(a)be subject to an information-gathering exercise pursuant to Article 9(1a);

(b)be adjusted, if necessary, by means of an implementing act pursuant to Article 4(1) where, after a review conducted pursuant to Article 9(1a), the Commission concludes that the measures are of insufficient effectiveness or impose an unreasonable burden on the process of administration of relevant national regulations. Such review by the Commission shall be first conducted six months after the date of application of the measures and at intervals of 12 months thereafter;

(c)be subject to an evaluation report, six months after their termination and based, inter alia, on stakeholder input, which shall examine their effectiveness and operation, and draw possible conclusions for future measures.

2.Measures adopted pursuant to paragraph 1(c) shall:

(a)include thresholds, according to the characteristics of the goods or services concerned, above which the exclusion and/or mandatory price penalty is to apply, taking into account the provisions of the trade agreement concerned and the level of nullification or impairment;

(b)determine the sectors or the categories of goods or services to which they apply, as well as any applicable exceptions;

(c)determine the contracting authorities or entities or categories of contracting authorities or entities, listed by Member State, whose procurement is covered. To provide the basis for this determination, each Member State shall submit a list of appropriate contracting authorities or entities or categories of contracting authorities or entities. The measures shall ensure that an appropriate level of suspension of concessions or other obligations and a fair distribution among Member States is achieved.

Defined terms · 4

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concessions or other obligations
means tariff concessions or other obligations or benefits in the field of trade in goods or services, or concerning trade-related aspects of intellectual property rights, that the Union has committed itself to applying in its trade with third countries by virtue of international trade agreements to which it is a party;
country
means any State or separate customs territory;
level of nullification or impairment
means the degree to which the benefits accruing to the Union under an international trade agreement are affected.
mandatory price penalty
means an obligation on contracting authorities or entities conducting public procurement procedures to increase, subject to certain exceptions, the price of services and/or goods originating in certain third countries that have been offered in contract award procedures.

Regulation (EU) No 654/2014

Article 5Commercial policy measures#

Defined terms · 4

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Article 5Commercial policy measures#

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