2.8.1997 EN Official Journal of the European Union L 209/1 COUNCIL REGULATION (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 103 (5) thereof, Having regard to the proposal from the Commission (1), Acting in accordance with the procedure referred to in Article 189c of the Treaty (2), (1) Whereas the Stability and Growth Pact is based on the objective of sound government finances as a means of strengthening the conditions for price stability and for strong sustainable growth conducive to employment creation; (2) Whereas the Stability and Growth Pact consists of this Regulation which aims to strengthen the surveillance of budgetary positions and the surveillance and coordination of economic policies, of Council Regulation (EC) No 1467/97 (3) which aims to speed up and to clarify the implementation of the excessive deficit procedure and of the Resolution of the European Council of 17 June 1997 on the Stability and Growth Pact (4), in which, in accordance with Article D of the Treaty on European Union, firm political guidelines are issued in order to implement the Stability and Growth Pact in a strict and timely manner and in particular to adhere to the medium term objective of budgetary positions of close to balance or in surplus, to which all Member States are committed, and to take the corrective budgetary action they deem necessary to meet the objectives of their stability and convergence programmes, whenever they have information indicating actual or expected significant divergence from the medium-term budgetary objective; (3) Whereas in stage three of Economic and Monetary Union (EMU) the Member States are, according to Article 104c of the Treaty, under a clear Treaty obligation to avoid excessive general government deficits; whereas under Article 5 of Protocol (No 11) on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland to the Treaty, Article 104c(1) does not apply to the United Kingdom unless it moves to the third stage; whereas the obligation under Article 109e(4) to endeavour to avoid excessive deficits will continue to apply to the United Kingdom; (4) Whereas adherence to the medium-term objective of budgetary positions close to balance or in surplus will allow Member States to deal with normal cyclical fluctuations while keeping the government deficit within the 3 % of GDP reference value; (5) Whereas it is appropriate to complement the multilateral surveillance procedure of Article 103 (3) and (4) with an early warning system, under which the Council will alert a Member State at an early stage to the need to take the necessary budgetary corrective action in order to prevent a government deficit becoming excessive; (6) Whereas the multilateral surveillance procedure of Article 103 (3) and (4) should furthermore continue to monitor the full range of economic developments in each of the Member States and in the Community as well as the consistency of economic policies with the broad economic guidelines referred to in Article 103 (2); whereas for the monitoring of these developments, the presentation of information in the form of stability and convergence programmes is appropriate; (7) Whereas there is a need to build upon the useful experience gained during the first two stages of economic and monetary union with convergence programmes; (8) Whereas the Member States adopting the single currency, hereafter referred to as ‘participating Member States’, will, in accordance with Article 109j, have achieved a high degree of sustainable convergence and in particular a sustainable government financial position; whereas the maintenance of sound budgetary positions in these Member States will be necessary to support price stability and to strengthen the conditions for the sustained growth of output and employment; whereas it is necessary that participating Member States submit medium-term programmes, hereafter referred to as ‘stability programmes’; whereas it is necessary to define the principal contents of such programmes; (9) Whereas the Member States not adopting the single currency, hereafter referred to as ‘non-participating Member States’, will need to pursue policies aimed at a high degree of sustainable convergence; whereas it is necessary that these Member States submit medium-term programmes, hereafter referred to as ‘convergence programmes’; whereas it is necessary to define the principal contents of such convergence programmes; (10) Whereas in its Resolution of 16 June 1997 on the establishment of an exchange-rate mechanism in the third stage of Economic and Monetary Union, the European Council issued firm political guidelines in accordance with which an exchange-rate mechanism is established in the third stage of EMU, hereafter referred to as ‘ERM2’; whereas the currencies of non-participating Member States joining ERM2 will have a central rate vis-à-vis the euro, thereby providing a reference point for judging the adequacy of their policies; whereas the ERM2 will also help to protect them and the Member States adopting the euro from unwarranted pressures in the foreign-exchange markets; whereas, so as to enable appropriate surveillance in the Council, non-participating Member States not joining ERM2 will nevertheless present policies in their convergence programmes oriented to stability thus avoiding real exchange rate misalignments and excessive nominal exchange rate fluctuations; (11) Whereas lasting convergence of economic fundamentals is a prerequisite for sustainable exchange rate stability; (12) Whereas it is necessary to lay down a timetable for the submission of stability programmes and convergence programmes and their updates; (13) Whereas in the interest of transparency and informed public debate it is necessary that Member States make public their stability programmes and their convergence programmes; (14) Whereas the Council, when examining and monitoring the stability programmes and the convergence programmes and in particular their medium-term budgetary objective or the targeted adjustment path towards this objective, should take into account the relevant cyclical and structural characteristics of the economy of each Member State; (15) Whereas in this context particular attention should be given to significant divergences of budgetary positions from the budgetary objectives of being close to balance or in surplus; whereas it is appropriate for the Council to give an early warning in order to prevent a government deficit in a Member State becoming excessive; whereas in the event of persistent budgetary slippage it will be appropriate for the Council to reinforce its recommendation and make it public; whereas for non-participating Member States the Council may make recommendations on action to be taken to give effect to their convergence programmes; (16) Whereas both convergence and stability programmes lead to the fulfilment of the conditions of economic convergence referred to in Article 104c, HAS ADOPTED THIS REGULATION: SECTION 1 PURPOSE AND DEFINITIONS Article 1 This Regulation sets out the rules covering the content, the submission, the examination and the monitoring of stability programmes and convergence programmes as part of multilateral surveillance by the Council so as to prevent, at an early stage, the occurrence of excessive general government deficits and to promote the surveillance and coordination of economic policies. Article 2 For the purpose of this Regulation ‘participating Member States’ shall mean those Member States which adopt the single currency in accordance with the Treaty and ‘non-participating Member States’ shall mean those which have not adopted the single currency. SECTION 2 STABILITY PROGRAMMES Article 3 1. Each participating Member State shall submit to the Council and Commission information necessary for the purpose of multilateral surveillance at regular intervals under Article 103 of the Treaty in the form of a stability programme, which provides an essential basis for price stability and for strong sustainable growth conducive to employment creation. A stability programme shall present the following information: (a) the medium-term objective for the budgetary position of close to balance or in surplus and the adjustment path towards this objective for the general government surplus/deficit and the expected path of the general government debt ratio; (b) the main assumptions about expected economic developments and important economic variables which are relevant to the realization of the stability programme such as government investment expenditure, real gross domestic product (GDP) growth, employment and inflation; (c) a description of budgetary and other economic policy measures being taken and/or proposed to achieve the objectives of the programme, and, in the case of the main budgetary measures, an assessment of their quantitative effects on the budget; (d) an analysis of how changes in the main economic assumptions would affect the budgetary and debt position. 3. The information about paths for the general government surplus/deficit ratio and debt ratio and the main economic assumptions referred to in paragraph 2 (a) and (b) shall be on an annual basis and shall cover, as well as the current and preceding year, at least the following three years. Article 4 1. Stability programmes shall be submitted before 1 March 1999. Thereafter, updated programmes shall be submitted annually. A Member State adopting the single currency at a later stage shall submit a stability programme within six months of the Council Decision on its participation in the single currency. 2. Member States shall make public their stability programmes and updated programmes. Article 5 1. Based on assessments by the Commission and the Committee set up by Article 109c of the Treaty, the Council shall, within the framework of multilateral surveillance under Article 103, examine whether the medium-term budget objective in the stability programme provides for a safety margin to ensure the avoidance of an excessive deficit, whether the economic assumptions on which the programme is based are realistic and whether the measures being taken and/or proposed are sufficient to achieve the targeted adjustment path towards the medium-term budgetary objective. The Council shall furthermore examine whether the contents of the stability programme facilitate the closer coordination of economic policies and whether the economic policies of the Member State concerned are consistent with the broad economic policy guidelines. 2. The Council shall carry out the examination of the stability programme referred to in paragraph 1 within at most two months of the submission of the programme. The Council, on a recommendation from the Commission and after consulting the Committee set up by Article 109c, shall deliver an opinion on the programme. Where the Council, in accordance with Article 103, considers that the objectives and contents of a programme should be strengthened, the Council shall, in its opinion, invite the Member State concerned to adjust its programme. 3. Updated stability programmes shall be examined by the Committee set up by Article 109c on the basis of assessments by the Commission; if necessary, updated programmes may also be examined by the Council in accordance with the procedure set out in paragraphs 1 and 2 of this Article. Article 6 1. As part of multilateral surveillance in accordance with Article 103 (3), the Council shall monitor the implementation of stability programmes, on the basis of information provided by participating Member States and of assessments by the Commission and the Committee set up by Article 109c, in particular with a view to identifying actual or expected significant divergence of the budgetary position from the medium-term budgetary objective, or the adjustment path towards it, as set in the programme for the government surplus/deficit. 2. In the event that the Council identifies significant divergence of the budgetary position from the medium-term budgetary objective, or the adjustment path towards it, it shall, with a view to giving early warning in order to prevent the occurrence of an excessive deficit, address, in accordance with Article 103 (4), a recommendation to the Member State concerned to take the necessary adjustment measures. 3. In the event that the Council in its subsequent monitoring judges that the divergence of the budgetary position from the medium-term budgetary objective, or the adjustment path towards it, is persisting or worsening, the Council shall, in accordance with Article 103 (4), make a recommendation to the Member State concerned to take prompt corrective measures and may, as provides in that Article, make its recommendation public. SECTION 3 CONVERGENCE PROGRAMMES Article 7 1. Each non-participating Member State shall submit to the Council and the Commission information necessary for the purpose of multilateral surveillance of regular intervals under Article 103 in the form of a convergence programme, which provides an essential basis for price stability and for strong sustainable growth conducive to employment creation. 2. A convergence programme shall present the following information in particular on variables related to convergence: (a) the medium-term objective for the budgetary position of close to balance or in surplus and the adjustment path towards this objective for the general government surplus/deficit; the expected path for the general government debt ratio; the medium-term monetary policy objectives; the relationship of those objectives to price and exchange rate stability; (b) the main assumptions about expected economic developments and important economic variables which are relevant to the realization of the convergence programme, such as government investment expenditure, real GDP growth, employment and inflation; (c) a description of budgetary and other economic policy measures being taken and/or proposed to achieve the objectives of the programme, and, in the case of the main budgetary measures, an assessment of their quantitative effects on the budget; (d) an analysis of how changes in the main economic assumptions would affect the budgetary and debt position. 3. The information about paths for the general government surplus/deficit ratio, debt ratio and the main economic assumptions referred to in paragraph 2 (a) and (b) shall be on an annual basis and shall cover, as well as the current and preceding year, at least the following three years. Article 8 1. Convergence programmes shall be submitted before 1 March 1999. Thereafter, updated programmes shall be submitted annually. 2. Member States shall make public their convergence programmes and updated programmes. Article 9 1. Based on assessments by the Commission and the Committee set up by Article 109c of the Treaty, the Council shall, within the framework of multilateral surveillance under Article 103, examine whether the medium-term budget objective in the convergence programme provides for a safety margin to ensure the avoidance of an excessive deficit, whether the economic assumptions on which the programme is based are realistic and whether the measures being taken and/or proposed are sufficient to achieve the targeted adjustment path towards the medium-term objective and to achieve sustained convergence. The Council shall furthermore examine whether the contents of the convergence programme facilitate the closer coordination of economic policies and whether the economic policies of the Member State concerned are consistent with the broad economic policy guidelines. 2. The Council shall carry out the examination of the convergence programme referred to in paragraph 1 within at most two months of the submission of the programme. The Council, on a recommendation from the Commission and after consulting the Committee set up by Article 109c, shall deliver an opinion on the programme. Where the Council, in accordance with Article 103, considers that the objectives and contents of a programme should be strengthened, the Council shall, in its opinion, invite the Member State concerned to adjust its programme. 3. Updated convergence programmes shall be examined by the Committee set up by Article 109c on the basis of assessments by the Commission; if necessary, updated programmes may also be examined by the Council in accordance with the procedure set out in paragraphs 1 and 2 of this Article. Article 10 1. As part of multilateral surveillance in accordance with Article 103 (3), the Council shall monitor the implementation of convergence programmes on the basis of information provided by non-participating Member States in accordance with Article 7 (2) (a) of this Regulation and of assessments by the Commission and the Committee set up by Article 109c of the Treaty, in particular with a view to identifying actual or expected significant divergence of the budgetary position from the medium-term budgetary objective, or the adjustment path towards it, as set in the programme for the government surplus/deficit. In addition, the Council shall monitor the economic policies of non-participating Member States in the light of convergence programme objectives with a view to ensure that their policies are geared to stability and thus to avoid real exchange rate misalignments and excessive nominal exchange rate fluctuations. 2. In the event that the Council identifies significant divergence of the budgetary position from the medium-term budgetary objective, or the adjustment path towards it, it shall, with a view to given early warning in order to prevent the occurrence of an excessive deficit, address in accordance with Article 103 (4), a recommendation to the Member State concerned to take the necessary adjustment measures. 3. In the event that the Council in its subsequent monitoring judges that the divergence of the budgetary position from the medium-term budgetary objective, or the adjustment path towards it, is persisting or worsening, the Council shall, in accordance with Article 103 (4), make a recommendation to the Member State concerned to take prompt corrective measures and may, as provided in that Article, make its recommendation public. SECTION 4 COMMON PROVISIONS Article 11 As part of the multilateral surveillance described in this Regulation, the Council shall carry out the overall assessment described in Article 103 (3). Article 12 In accordance with the second subparagraph of Article 103 (4) the President of the Council and the Commission shall include in their report to the European Parliament the results of the multilateral surveillance carried out under this Regulation. Article 13 This Regulation shall enter into force on 1 July 1998. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, 7 July 1997. For the Council The President J.-C. JUNCKER (1) OJ No C 368, 6. 12. 1996, p. 9. (2) Opinion of the European Parliament of 28 November 1996 (OJ No C 380, 16. 12. 1996, p. 28), Council Common Position of 14 April 1997 (OJ No C 146, 30. 5. 1997, p. 26) and Decision of the European Parliament of 29 May 1997 (OJ No C 182, 16. 6. 1997). (3) See p. 6 of this Official Journal (4) OJ No C 236, 2. 8. 1997, p. 1.

Summary: Surveillance of budgetary policies Surveillance of budgetary policies SUMMARY OF: Regulation (EC) No 1466/97 — strengthening the surveillance of budgetary positions and the surveillance and coordination of economic policies WHAT IS THE AIM OF THE REGULATION? It introduces the preventive arm of the stability and growth pact. These are preventive measures designed to ensure the budgetary discipline necessary for the smooth operation of the European Union (EU). It concerns not only those EU countries that have adopted the single currency but also those not yet participating. KEY POINTS This regulation aims to monitor and coordinate EU countries’ budgetary policies, as a preventive measure to ensure budgetary discipline within the EU. To do this, it provides for a European Semester at the start of each year to assist EU countries in putting in place healthy budgetary policies. EU countries submit to the European Commission stability programmes (for countries in the euro area) and convergence programmes(for countries outside the euro area) in which they adopt medium-term budgetary objectives. These programmes are assessed by the Commission and are the subject of specific Council recommendations for each country. European Semester for economic policy coordination The European Semester is a 6-month period during which EU countries’ budgetary policies are examined. At the start of the Semester, the Council identifies the key economic challenges for the EU and provides EU countries with strategic policy guidelines to be followed. Subsequently, and on the basis of these guidelines, EU countries must draw up: their stability or convergence programmes under this regulation; their national reform programmes, in line with broad guidelines for economic policy and guidelines for employment policies. At the end of the European Semester and following an assessment of the programmes, the Council sends recommendations to each EU country. Based on the Commission’s assessment, the Council gives its opinion before EU countries draw up their final budgets for the following year. Medium-term budgetary objectives Each EU country has a medium-term deficit objective for its budgetary position, defined in structural terms. The objectives differ between EU countries: they are stricter where the level of debt and estimated costs of an ageing population are higher. For the EU countries that have adopted the euro and for those participating in the exchange rate mechanism (ERM II), the objective is set between -1 % of GDP and a balance or surplus. The objectives may be revised when a major structural reform is undertaken or every 3 years, when forecasts are published enabling the estimated costs of ageing populations to be updated. Multilateral surveillance: stability and convergence programmes The stability and convergence programmes serve as a basis for multilateral surveillance by the Council of the EU. This surveillance, provided for in Article 121 of the Treaty on the Functioning of the EU should prevent, at an early stage, excessive public deficits and promote the coordination of economic policies. Each EU country must present the Council of the EU and the Commission with a stability programme (for countries in the euro area) or a convergence programme (for countries outside the euro area). Stability or convergence programmes must include the following information: the medium-term budgetary objective and the planned adjustments to achieve the objective; government balance as a percentage of GDP, the likely trend for the government debt ratio, the planned growth for government spending and the growth of government revenue, given unchanged policy, as well as quantified discretionary revenue measures; information on estimated costs of ageing populations, and other possible costs (such as public guarantees) with a potentially large impact on government accounts; information on the consistency of the programmes with the broad economic policy guidelines and the national reform programmes; the main assumptions underlying the economic outlook, which are likely to influence the realisation of the stability and convergence programmes (growth, employment, inflation and other important variables); an assessment and a detailed analysis of the budgetary measures and other economic policy measures — taken or planned — relevant to achieving the programme’s aims; an analysis of how changes in the main economic assumptions would affect the budgetary and debt positions; where applicable, the reasons for any deviation from the planned adjustments needed to achieve the medium-term budgetary objective. In addition, convergence programmes have to state the relationship between these objectives and price and exchange rate stability, as well as the medium-term objectives of monetary policy. Examination of the stability and convergence programmes On the basis of assessments by the Commission and the Economic and Financial Committee, the Council examines the medium-term budgetary objectives presented by countries in their programmes. It checks in particular: whether the objective is based on realistic economic assumptions; whether the measures taken or planned are sufficient to achieve the objective; whether an assessment of the planned adjustments shows that the country concerned is seeking to improve its (cyclically adjusted) budgetary balance year-on-year; whether annual growth in government spending by the country concerned is not too high, i.e. does not exceed a benchmark rate in the medium term. When making its assessments, the Council must take account of the implementation of major structural reforms, especially pension reforms. The Council is to examine the programme within 3 months of its submission. On a recommendation from the Commission and after consulting the Economic and Financial Committee, the Council delivers an opinion on the programme. Where it considers that the objectives and content of a programme should be strengthened, the Council can ask the country concerned to adjust it. Avoiding an excessive deficit: the early warning mechanism As part of multilateral surveillance, the Council monitors the implementation of stability and convergence programmes on the basis of information provided by the EU countries and assessments carried out by the Commission and the Economic and Financial Committee. So, if the Commission identifies a significant divergencefrom the medium-term budgetary objective or from the planned adjustments that should lead to achieving that objective, it will give recommendationsto the country concerned to prevent an excessive deficit (early warning mechanism, Article 121(4) of the Treaty on the Functioning of the EU). Furthermore, recommendations adopted in the Council may be made public. European Commission guidance In 2015, a Commission communication clarified how it intends to apply the stability and growth pact rules to strengthen the link between structural reforms, investment and fiscal responsibility so as to stimulate job creation and growth in the EU. This guidance had 3 main objectives: to encourage effective implementation of structural reforms; to promote investment, particularly in the context of the new European Fund for Strategic Investments, which is a central element of the investment plan for Europe proposed by the Commission; to better reflect the economic situation of each of the EU countries. FROM WHEN DOES THE REGULATION APPLY? It has applied since 1 July 1998. BACKGROUND Under the rules of the stability and growth pact, EU countries must apply healthy budgetary policies in order to avoid excessive government deficits which might endanger the economic and financial stability of the EU. In 2011, the stability and growth pact was the subject of extensive reforms. The new measures adopted are an important step in guaranteeing budgetary discipline, promoting the stability of the EU economy and preventing another crisis. The stability and growth pact now includes six legislative acts (known as ‘the 6-Pack’) which entered into force on 13 December 2011 and two further acts (‘the 2-Pack’) which entered into force on 30 May 2013: Regulation (EU) No 1173/2011 on the effective enforcement of budgetary surveillance in the euro area; Regulation (EU) No 1174/2011 on enforcement measures to correct excessive macroeconomic imbalances in the euro area; Regulation (EU) No 1175/2011 amending this regulation on surveillance procedures for budgetary positions; Regulation (EU) No 1176/2011 on the prevention and correction of macroeconomic imbalances; Regulation (EU) No 1177/2011 amending the procedure on excessive deficits; Directive 2011/85/EU on requirements for budgetary frameworks of the Member States; Regulation (EU) No 472/2013 on surveillance of the economies and budgets of euro area countries with, or threatened with, serious difficulties with respect to their financial stability; Regulation (EU) No 473/2013 on common rules for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of countries in the euro area For further information, see: ‘Stability and Growth Pact’ (European Commission). MAIN DOCUMENT Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (OJ L 209, 2.8.1997, pp. 1–5) Successive amendments to Regulation (EC) No 1466/97 have been incorporated in to the original document. This consolidated version is of documentary value only. RELATED DOCUMENTS Regulation (EU) No 1173/2011 of the European Parliament and of the Council of 16 November 2011 on the effective enforcement of budgetary surveillance in the euro area (OJ L 306, 23.11.2011, pp. 1–7) Regulation (EU) No 1174/2011 of the European Parliament and of the Council of 16 November 2011 on enforcement measures to correct excessive macroeconomic imbalances in the euro area (OJ L 306, 23.11.2011, pp. 8–11) Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (OJ L 306, 23.11.2011, pp. 25–32) Council Regulation (EU) No 1177/2011 of 8 November 2011 amending Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure (OJ L 306, 23.11.2011, pp. 33–40) Council Directive 2011/85/EU of 8 November 2011 on requirements for budgetary frameworks of the Member States (OJ L 306, 23.11.2011, pp. 41–47) Regulation (EU) No 472/2013 of the European Parliament and of the Council of 21 May 2013 on the strengthening of economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability (OJ L 140, 27.5.2013, pp. 1–10) Regulation (EU) No 473/2013 of the European Parliament and of the Council of 21 May 2013 on common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of the Member States in the euro area (OJ L 140, 27.5.2013, pp. 11–23) Communication from the Commission to the European Parliament, the Council, the European Central Bank, the Economic and Social Committee, the Committee of the Regions and the European Investment Bank — Making the best use of the flexibility within the existing rules of the Stability and Growth Pact (COM(2015) 12 final, 13.1.2015) last update 18.04.2017


13.5.1997 EN Official Journal of the European Communities L 121/14 AGREEMENT between the European Community and the Republic of Korea on cooperation and mutual administrative assistance in customs matters The EUROPEAN COMMUNITY and the REPUBLIC OF KOREA, (hereinafter referred to as the ‘Contracting Parties’), CONSIDERING the importance of the commercial links between the European Community and the Republic of Korea and desirous of contributing, to the benefit of both Contracting Parties, to the harmonious development of those links; TAKING into account the development of customs cooperation between the Contracting Parties, concerning customs procedures; CONSIDERING that operations in breach of customs legislation are prejudicial to the economic, fiscal and commercial interests of both Contracting Parties, and recognizing the importance of ensuring the accurate assessment of customs duties and other taxes; CONVINCED that action against such operations can be made more effective by cooperation between their customs authorities; HAVING regard to obligations imposed under international conventions already accepted by the Contracting Parties; and having regard also to the recommendation of the Customs Cooperation Council on mutual administrative assistance of December 5, 1953, HAVE AGREED AS FOLLOWS: TITLE I GENERAL PROVISIONS Article 1 Definitions For the purposes of this Agreement: (a) ‘customs legislation’ shall mean provisions adopted by the European Community or the Republic of Korea governing the importation, exportation, transit of goods and any other customs procedure, including measures of prohibition, restriction and control; (b) ‘customs authority’ shall mean, in the European Community, the competent services of the Commission of the European Communities and the customs authorities of the Member States of the European Community, and, in the Republic of Korea, the Korea Customs Service; (c) ‘applicant customs authority’ shall mean a competent customs authority of a Contracting Party which makes a request for assistance in customs matters; (d) ‘requested customs authority’ shall mean a competent customs authority of a Contracting Party which receives a request for assistance in customs matters; (e) ‘personal data’ shall mean all information relating to an identified or identifiable individual; (f) ‘operation in breach of customs legislation’ shall mean any violation of the customs legislation as well as any attempted violation of such legislation. Article 2 Obligations imposed under international conventions The provisions of this Agreement shall not prejudice the obligations imposed under international conventions accepted by the Contracting Parties to this Agreement. TITLE II CUSTOMS COOPERATION Article 3 Scope of the customs cooperation 1. The Contracting Parties through their customs authorities shall, in accordance with the provisions of this Agreement: (a) endeavour to cooperate, within the limit of available resources, in the research, development and testing of new customs procedures, in the training and exchange of personnel and in other matters that may require their joint efforts; and (b) strive for simplification, harmonization and computerization in customs procedures, taking into account the work done in this connection by international organizations. 2. The customs cooperation will include: (a) exchange of professional, scientific and technical data relating to customs legislation; (b) exchange of information on actions undertaken with third countries in relation to technical assistance, with the aim of improving these actions. TITLE III MUTUAL ASSISTANCE Article 4 Scope of the assistance 1. The Contracting Parties through their customs authorities shall, in accordance with the provisions of this Agreement: (a) assist each other in order to ensure that customs legislation is properly implemented, in particular, by the prevention, detection and investigation of operations in breach of this legislation; (b) assist each other by providing information, upon request, to be used in administering and enforcing the customs legislation. 2. Assistance in customs matters, as provided for in this Agreement, shall not prejudice the rules governing mutual assistance in criminal matters. Nor shall it cover information obtained under powers exercised at the request of the judicial authority, unless this authority so agrees. 3. The assistance will also include: (a) exchange of information and experience in the use of the interdiction and detection equipment; (b) enforcement techniques that might be useful in suppressing breaches of customs legislation and, in particular, any technical aids found to be helpful in combating such breaches; and (c) observations and findings resulting from the application of new enforcement techniques. Article 5 Assistance on request 1. At the request of the applicant customs authority, the requested customs authority shall furnish it with all relevant information to enable it to ensure that customs legislation is correctly applied, including information regarding operations noted or planned which are or might be in breach of such legislation. 2. At the request of the applicant customs authority, the requested customs authority shall inform it whether goods exported from the territory of one of the Contracting Parties have been properly imported into the territory of the other Contracting Party, specifying, where appropriate, the customs procedure applied to the goods. 3. At the request of the applicant customs authority, the requested customs authority shall take the necessary steps to ensure that a surveillance is kept on: (a) natural or legal persons who it may reasonably be believed are or have been in breach of customs legislation; (b) places where goods are stored in a way that gives grounds for suspecting that they are intended to supply operations in breach of customs legislation; (c) movements of goods notified as possibly constituting operations in breach of customs legislation; and (d) means of transport which it may reasonably be believed have been, are or may be, used to commit operations in breach of customs legislation. Article 6 Spontaneous assistance The Contracting Parties shall provide each other, in accordance with their laws, rules and other legal instruments, with assistance if they consider that to be necessary for the correct application of customs legislation, particularly when they obtain information pertaining to: (a) operations which have been, are or appear to be, in breach of such legislation and which may be of interest to the other Contracting Party; (b) new means or methods used in committing such operations; and (c) goods known to be the subject of operations in breach of customs legislation. Article 7 Delivery/notification At the request of the applicant customs authority, the requested customs authority shall in accordance with its legislation take all necessary measures in order: — to deliver all documents, — to notify all decisions, falling within the scope of this Agreement to an addressee, residing or established in its territory. In such a case, the provisions of Article 8 (3) shall be applied. Article 8 Form and substance of requests for assistance 1. Requests pursuant to this Agreement shall be made in writing. Documents necessary for the execution of such requests shall accompany the request. When required because of the urgency of the situation, oral requests may be accepted, but must be confirmed in writing immediately. 2. Requests pursuant to paragraph 1 shall include the following information: (a) the applicant customs authority making the request; (b) the measure requested; (c) the object of and the reason for the request; (d) the laws, rules and other legal elements involved; (e) indications as exact and comprehensive as possible on the natural or legal persons being the target of the investigations; and (f) a summary of the relevant facts and the enquiries already carried out, except in cases provided for in Article 7. 3. Requests shall be submitted in an official language of the requested customs authority or in a language acceptable to such authority. 4. If a request does not meet the formal requirements, its correction or completion may be demanded; the ordering of precautionary measures may, however, take place. Article 9 Execution of requests 1. In order to comply with a request for assistance, the requested customs authority, in cooperation with other administrative departments when the former cannot act on its own, shall proceed, within the limits of its competence and available resources, by supplying information already possessed, by carrying out appropriate enquiries or by arranging for them to be carried out. 2. Requests for assistance shall be executed in accordance with the laws, rules and other legal instruments of the requested Contracting Party. 3. Duly authorized officials of a Contracting Party may, with the agreement of the other Contracting Party involved and within the conditions laid down by the latter, obtain from the offices of the requested customs authority or other authority for which the requested customs authority is responsible, information relating to the operations in breach of customs legislation which the applicant customs authority needs for the purposes of this Agreement. 4. Officials of a Contracting Party may, with the agreement of the other Contracting Party and within the conditions laid down by the latter, be present at enquiries carried out in the latter's territory. Article 10 Form of information to be communicated 1. The requested customs authority shall communicate results of enquiries to the applicant customs authority in the form of documents, certified copies of documents, reports or in the other appropriate forms for the execution of the request. 2. The documents provided for in paragraph 1 may be replaced by computerized information produced in any form for the same purpose. Article 11 Exceptions to assistance 1. The Contracting Parties may refuse, in whole or in part, to give assistance as provided for in this Agreement, where to do so would: (a) be likely to prejudice the sovereignty of a Member State of the European Community or of the Republic of Korea when asked to provide assistance pursuant to this Agreement; or (b) be likely to prejudice public policy, security or other essential interests, in particular in the cases referred to pursuant to Article 12 (2); or (c) involve currency or tax regulations other than customs legislation; or (d) violate an industrial, commercial or professional secret. 2. Where the applicant customs authority asks for assistance which it would itself be unable to provide if so asked by the customs authority of the other Contracting Party, it shall draw attention to that fact in its request. It shall then be left to the requested customs authority to decide how to respond to such a request. 3. Before refusing to provide assistance, the requested customs authority shall consider whether assistance may be provided subject to such conditions or requirements as it deems necessary. If the applicant customs authority accepts assistance subject to these conditions or requirements, it shall comply with them. 4. If a request for assistance cannot be complied with, the applicant customs authority shall be notified without delay and shall be informed of the reasons for the refusal to provide assistance. Article 12 Exchange of information and confidentiality 1. Any information communicated in whatsoever form pursuant to this Agreement shall be of a confidential or restricted nature, depending on the rules applicable in each of the Contracting Parties. It shall be covered by the obligation of official secrecy and shall enjoy the protection extended to like information under the relevant laws of the Contracting Party which received it and the corresponding provisions applying to the Community institutions. 2. Personal data may be exchanged only where the receiving Contracting Party undertakes to protect such data in a way which is at least equivalent to the one applicable to that particular case in the supplying Contracting Party. 3. Information obtained shall be used solely for the purposes of this Agreement. Where one of the Contracting Parties requests the use of such information for other purposes, it shall ask for the prior written consent of the customs authority which supplied the information. Such use shall then be subject to any restrictions laid down by that authority. 4. Paragraph 3 shall not impede the use of information in any judicial or administrative proceedings subsequently instituted for failure to comply with customs legislation. The competent authority which supplied that information shall be notified of such use. 5. The Contracting Parties may, in their records of evidence, reports and testimonies and in proceedings and charges brought before the courts, use as evidence information obtained and documents consulted in accordance with the provisions of this Agreement. Article 13 Experts and witnesses An official of a requested customs authority may be authorized to appear, within the limitations of the authorization granted, as an expert or witness in judicial or administrative proceedings regarding the matters covered by this Agreement in the jurisdiction of the other Contracting Party, and produce such objects, documents or authenticated copies thereof, as may be needed for the proceedings. The request for an appearance must indicate specifically on what matters and by virtue of what title or qualification the official will be questioned. Article 14 Expenses The Contracting Parties shall waive all claims on each other for the reimbursement of expenses incurred pursuant to this Agreement, except, as appropriate, for expenses to experts and witnesses and to interpreters and translators who are not public service employees. TITLE IV FINAL PROVISIONS Article 15 Joint Customs Cooperation Committee 1. A Joint Customs Cooperation Committee shall be established, consisting of representatives of the European Community and of the Republic of Korea. It shall meet alternately in Brussels and Seoul, as mutually agreed and on a date and with an agenda fixed by mutual agreement. 2. The Joint Customs Cooperation Committee shall see to the proper functioning of the Agreement and shall examine all issues arising from its application. In fulfilling this role, its main functions will be to: (a) review the progress of the customs cooperation in accordance with this Agreement and identify new areas and specific sectors for further customs cooperation; (b) exchange views on any points of common interest regarding customs cooperation, including future measures and the resources for them; and (c) in general terms, recommend solutions aimed at helping to attain the objectives of this Agreement. 3. The Joint Customs Cooperation Committee shall adopt its internal rules of procedure. Article 16 Implementation 1. The management of this Agreement shall be entrusted to the competent services of the Commission of the European Communities and, where appropriate, the customs authorities of the Member States of the European Community on the one hand and to the Korea Customs Service of the Republic of Korea on the other. They shall decide on all practical measures and arrangements necessary for its application, taking into consideration rules in the field of data protection. 2. The Contracting Parties shall consult each other and subsequently keep each other informed of the detailed rules of implementation which are adopted in accordance with the provisions of this Agreement. Article 17 Revision or amendment The Contracting Parties may, at any time, revise or amend this Agreement by mutual consent. Article 18 Territorial application This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of the Republic of Korea. Article 19 Entry into force and duration 1. This Agreement shall enter into force on the first day of the month following the date on which the Contracting Parties have notified each other of the completion of the procedures necessary for this purpose. 2. This Agreement shall be concluded for a period of five years. It shall be tacitly renewed on a yearly basis unless one of the Contracting Parties denounces it in writing six months before the date of expiry. Article 20 Authentic texts This Agreement shall be drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Korean languages, each text being equally authentic. In witness whereof, the undersigned plenipotentiaries have signed this Agreement. Done in duplicate at Brussels on the tenth day of April in the year one thousand nine hundred and ninety-seven. For the European Community For the Republic of Korea

Summary: Agreement with the Republic of Korea Agreement with the Republic of Korea SUMMARY OF: Agreement between the European Community and the Republic of Korea on cooperation and mutual administrative assistance in customs matters Decision 97/291/EC on the conclusion of the Agreement between the European Community and the Republic of Korea on cooperation and mutual administrative assistance in customs matters WHAT IS THE AIM OF THE AGREEMENT AND OF THE DECISION? Under the agreement, the parties agree to assist each other in order to ensure that customs legislation* is properly implemented. The decision concludes the agreement with South Korea on behalf of the European Community (now the EU). KEY POINTS The agreement provides for cooperation in areas ranging from the research, development and testing of new customs procedures to the simplification, harmonisation and computerisation of those procedures. The parties also assist each other in preventing and investigating breaches of customs legislation. Customs cooperation The parties agree to cooperate in: the research, development and testing of new customs procedures; the training and exchange of staff; the simplification, harmonisation and computerisation of customs procedures; the exchange of professional, scientific and technical data relating to customs legislation; the exchange of information on actions undertaken with other countries in relation to technical assistance. Mutual administrative assistance The agreement provides for 2 types of assistance: spontaneous assistance: the parties may provide each other with assistance on their own initiative if they consider that to be necessary for the correct application of customs legislation; assistance on request: the requested authority* must provide the applicant authority* with all relevant information to enable it to ensure that customs legislation is correctly applied. The information may concern breaches of customs legislation and irregular export and import procedures between the two parties. Special surveillance may be requested in all suspect cases. Such surveillance may be applied to any natural or legal person, any place, movement of goods or means of transport which is or may be linked or used to commit breaches of customs legislation. Formal aspects and exceptions to assistance Requests for assistance must be: made in writing, except in urgent cases where oral requests may be made, confirmed in writing afterwards; accompanied by all the information needed for their execution, including: the applicant authority, the measure requested, the object of and the reason for the request, the legislation involved and the natural or legal persons who are the target of the investigation. The requested authority: supplies information it already possesses and carries out appropriate enquiries; may refuse to provide assistance if to do so would be likely to prejudice the sovereignty, public policy, security or other essential interests of one of the parties. The request to provide assistance may also be refused where it would: violate an industrial, commercial or professional secret; or involve currency or tax regulations other than customs legislation. The agreement: contains confidentiality clauses in relation to the information supplied. A high level of protection is given to personal data; allows for the establishment of a Joint Customs Cooperation Committee which ensures the proper functioning of the agreement and examines all issues arising from its application. DATE OF ENTRY INTO FORCE The agreement entered into force on 1 May 1997. The clauses in the agreement concerning mutual administrative assistance were superseded by the Protocol on Mutual Administrative Assistance in Customs Matters of the Free Trade Agreement between the European Union and the Republic of Korea. BACKGROUND For more information, see: Korea (European Commission) The Republic of Korea and the EU (European External Action Service). KEY TERMS Customs legislation: includes any legal rules adopted by the EU or Korea governing the import, export and transit of goods and their placing under any other customs procedure, including measures of prohibition, restriction and control. Requested authority: the competent customs authority which receives a request for assistance. Applicant authority: the competent customs authority which makes a request for assistance. MAIN DOCUMENTS Agreement between the European Community and the Republic of Korea on cooperation and mutual administrative assistance in customs matters (OJ L 121, 13.5.1997, pp. 14-18) Council Decision 97/291/EC of 26 April 1997 concerning the conclusion of the Agreement between the European Community and the Republic of Korea on cooperation and mutual administrative assistance in customs matters (OJ L 121, 13.5.1997, p. 13) Corrigendum to Council Decision 97/291/EC of 26 April 1997 concerning the conclusion of the Agreement between the European Community and the Republic of Korea on cooperation and mutual administrative assistance in customs matters (OJ L 126, 17.5.1997, p. 30) RELATED DOCUMENTS Protocol on mutual administrative assistance in customs matters (OJ L 127, 14.5.2011, pp. 1415-1417) Council Decision (EU) 2015/2169 of 1 October 2015 on the conclusion of the Free Trade Agreement between the European Union and its Member States, of the one part, and the Republic of Korea, of the other part (OJ L 307, 25.11.2015, pp. 2-4) Information relating to the entry into force of the Agreement between the European Community and the Republic of Korea on cooperation and mutual administrative assistance in customs matters (OJ L 121, 13.5.1997, p. 19) last update 22.01.2019


EUR-Lex - 31997R2027 - EN Avis juridique important | 31997R2027 Council Regulation (EC) No 2027/97 of 9 October 1997 on air carrier liability in the event of accidents Official Journal L 285 , 17/10/1997 P. 0001 - 0003 COUNCIL REGULATION (EC) No 2027/97 of 9 October 1997 on air carrier liability in the event of accidentsTHE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Article 84 (2) thereof,Having regard to the proposal from the Commission (1),Having regard to the opinion of the Economic and Social Committee (2),Acting in accordance with the procedure laid down in Article 189 (c) of the Treaty (3),(1) Whereas, in the framework of the common transport policy, it is necessary to improve the level of protection of passangers involved in air accidents;(2) Whereas the rules on liability in the event of accidents are governed by the Convention for the Unification of Certain Rules Relating to International Carriage by Air, signed at Warsaw on 12 October 1929, or that Convention as amended at The Hague on 28 September 1955 and the Convention done at Guadalajara on 18 September 1961, whichever may be applicable each being hereinafter referred to, as applicable, as the 'Warsaw Convention`; whereas the Warsaw Convention is applied worldwide for the benefit of both passengers and air carriers;(3) Whereas the limit set on liability by the Warsaw Convention is too low by today's economic and social standards and often leads to lengthy legal actions which damage the image of air transport; whereas as a result Member States have variously increased the liability limit, thereby leading to different terms and conditions of carriage in the internal aviation market;(4) Whereas in addition the Warsaw Convention applies only to international transport; whereas, in the internal aviation market, the distinction between national and international transport has been eliminated; whereas it is therefore appropriate to have the same level and nature of liability in both national and international transport;(5) Whereas a full review and revision of the Warsaw Convention is long overdue and would represent, in the long term, a more uniform and applicable response, at an international level, to the issue of air carrier liability in the event of accidents; whereas efforts to increase the limits of liability imposed in the Warsaw Convention should continue through negotiation at multilateral level;(6) Whereas, in compliance with the principle of subsidiarity, action at Community level is desirable in order to achieve harmonization in the field of air carrier liability and could serve as a guideline for improved passenger protection on a global scale;(7) Whereas it is appropriate to remove all monetary limits of liability within the meaning of Article 22 (1) of the Warsaw Convention or any other legal or contractual limits, in accordance with present trends at international level;(8) Whereas, in order to avoid situations where victims of accidents are not compensated, Community air carriers should not, with respect of any claim arising out of the death, wounding or other bodily injury of a passenger under Article 17 of the Warsaw Convention, avail themselves of any defence under Article 20 (1) of the Warsaw Convention up to a certain limit;(9) Whereas Community air carriers may be exonerated from their liability in cases of contributory negligence of the passenger concerned;(10) Whereas it is necessary to clarify the obligations of this Regulation in the light of Article 7 of Council Regulation (EEC) No 2407/92 of 23 July 1992 on licensing of air carriers (4); whereas, in this regard, Community air carriers should be insured up to a certain limit laid down in this Regulation;(11) Whereas Community air carriers should always be entitled to claim against third parties;(12) Whereas prompt advance payments can considerably assist the injured passengers or natural persons entitled to compensation in meeting the immediate costs following an air accident;(13) Whereas the rules on the nature and limitation of liability in the event of death, wounding or any other bodily injury suffered by a passenger form part of the terms and conditions of carriage in the air transport contract between carrier and passenger; whereas, in order to reduce the risk of distorting competition, third-country carriers should adequately inform passengers of their conditions of carriage;(14) Whereas it is appropriate and necessary that the monetary limits expressed in this Regulation be reviewed in order to take into account economic developments and developments in international fora;(15) Whereas the International Civil Aviation Organization (ICAO) is at present engaged in a review of the Warsaw Convention; whereas, pending the outcome of such review, actions on an interim basis by the Community will enhance the protection of passengers; whereas the Council should review this Regulation as soon as possible after the review by ICAO,HAS ADOPTED THIS REGULATION:Article 1 This Regulation lays down the obligations of Community air carriers in relation to liability in the event of accidents to passengers for damage sustained in the event of death or wounding of a passenger or any other bodily injury suffered by a passenger, if the accident which caused the damage so sustained took place on board an aircraft or in the course of any of the operations of embarking or disembarking.This Regulation also clarifies some insurance requirements for Community air carriers.In addition, this Regulation sets down some requirements on information to be provided by air carriers established outside the Community which operate to, from or within the Community.Article 2 1. For the purpose of this Regulation:(a) 'air carrier` shall mean an air transport undertaking with a valid operating licence;(b) 'Community air carrier` shall mean an air carrier with a valid operating licence granted by a Member State in accordance with the provisions of Regulation (EEC) No 2407/92;(c) 'person entitled to compensation` shall mean a passenger or any person entitled to claim in respect of that passenger, in accordance with applicable law;(d) 'ecu` shall mean the unit of account in drawing up the general budget of the European Communities in accordance with Articles 207 and 209 of the Treaty;(e) 'SDR` shall mean a Special Drawing Right as defined by the International Monetary Fund;(f) 'Warsaw Convention` shall mean the Convention for the Unification of Certain Rules Relating to International Carriage by Air, signed at Warsaw on 12 October 1929, or the Warsaw Convention as amended at The Hague on 28 September 1955 and the Convention supplementary to the Warsaw Convention done at Guadalajara on 18 September 1961 - whichever is applicable to the passenger contract of carriage, together with all international instruments which supplement, and are associated with, it and are in force.2. Concepts contained in this Regulation which are not defined in paragraph 1 shall be equivalent to those used in the Warsaw Convention.Article 3 1. (a) The liability of a Community air carrier for damages sustained in the event of death, wounding or any other bodily injury by a passenger in the event of an accident shall not be subject to any financial limit, be it defined by law, convention or contract.(b) The obligation of insurance set out in Article 7 of Regulation (EEC) No 2407/92 shall be understood as requiring that a Community air carrier shall be insured up to the limit of the liability required under paragraph 2 and thereafter up to a reasonable level.2. For any damages up to the sum of the equivalent in ecus of 100 000 SDR, the Community air carrier shall not exclude or limit his liability by proving that he and his agents have taken all necessary measures to avoid the damage or that it was impossible for him or them to take such measures.3. Notwithstanding the provisions of paragraph 2, if the Community air carrier proves that the damage was caused by, or contributed to by, the negligence of the injured or deceased passenger, the carrier may be exonerated wholly or partly from its liability in accordance with applicable law.Article 4 In the event of death, wounding or any other bodily injury suffered by a passenger in the event of an accident, nothing in this Regulation shall(a) imply that a Community air carrier is the sole party liable to pay damages; or(b) restrict any rights of a Community air carrier to seek contribution or indemnity from any other party in accordance with applicable law.Article 5 1. The Community air carrier shall without delay, and in any event not later than fifteen days after the identity of the natural person entitled to compensation has been established, make such advance payments as may be required to meet immediate economic needs on a basis proportional to the hardship suffered.2. Without prejudice to paragraph 1, an advance payment shall not be less than the equivalent in ecus of 15 000 SDR per passanger in the event of death.3. An advance payment shall not constitute recognition of liability and may be offset against any subsequent sums paid on the basis of Community air carrier liability, but is not returnable, except in the cases prescribed in Article 3 (3) or in circumstances where it is subsequently proved that the person who received the advance payment caused, or contributed to, the damage by negligence or was not the person entitled to compensation.Article 6 1. The provisions contained in Articles 3 and 5 shall be included in the Community air carrier's conditions of carriage.2. Adequate information on the provisions contained in Articles 3 and 5 shall, on request, be available to passengers at the Community air carrier's agencies, travel agencies and check-in counters and at points of sale. The ticket document or an equivalent shall contain a summary of the requirements in plain and intelligible language.3. Air carriers established outside the Community operating to, from or within the Community and not applying the provisions referred to in Articles 3 and 5 shall expressly and clearly inform the passengers thereof, at the time of purchase of the ticket at the carrier's agencies, travel agencies or check-in counters located in the territory of a Member State. Air carriers shall provide the passengers with a form setting out their conditions. The fact that only a liability limit is indicated on the ticket document or an equivalent shall not constitute sufficient information.Article 7 No later than two years after the entry into force of this Regulation, the Commission shall draw up a report on the application of the Regulation which, inter alia, takes into account economic developments and developments in international fora. Such report may be accompanied by proposals for a revision of this Regulation.Article 8 This Regulation shall enter into force one year after the date of its publication in the Official Journal of the European Communities.This Regulation shall be binding in its entirety and directly applicable in all Member States.Done at Luxembourg, 9 October 1997.For the CouncilThe PresidentM. DELVAUX-STEHRES(1) OJ C 104, 10. 4. 1996, p. 18 and OJ No C 29, 30. 1. 1997, p. 10.(2) OJ C 212, 22. 7. 1996, p. 38.(3) Opinion of the European Parliament of 17 September 1996 (OJ No C 320, 28. 10. 1996, p. 30), Council Common Position of 24 February 1997 (OJ No C 123, 21. 4. 1997, p. 89) and Decision of the European Parliament of 29 May 1997 (OJ C 182, 16. 6. 1997).(4) OJ L 240, 24. 8. 1992, p. 1.

Summary: Air carrier passenger and baggage liability Air carrier passenger and baggage liability SUMMARY OF: Regulation (EC) No 2027/97 on air carrier liability WHAT IS THE AIM OF THE REGULATION? The regulation implements the 1999 Montreal Convention as it relates to liability and compensation issues for passengers travelling by air and their baggage (see summary). Note: The original regulation (before it was amended by Regulation (EC) No 889/2002) concerned European Union (EU) air carrier liabilities for death or injury to passengers as a result of accidents. The 2002 amending regulation brought the original regulation into line with the new international rules in the Montreal Convention, to additionally include baggage and delay liability issues. KEY POINTS Air carrier liability for passengers and their baggage The regulation summarises the liability rules applied by EU air carriers under EU legislation and the Montreal Convention, and EU Member States’ national legislation. Compensation is expressed as the approximate value in local currency of special drawing rights (SDRs)*. Insurance and passenger notification EU air carriers must: be insured up to a sufficient level that is adequate for all persons entitled to compensation to receive the full amount to which they are entitled under the regulation; ensure that a summary of the main provisions governing liability for passengers and their baggage is available to passengers at all points of sale, including by telephone and via the internet; use a notice based on the annex to the regulation. EU air carriers must also provide each passenger with a written indication of the carrier's liability limit for the flight in respect of: death or injury; destruction, loss of or damage to baggage; and damage caused by delay. The above limits are those established by this regulation unless the air carrier voluntarily applies higher limits. For carriage by non-EU air carriers, these requirements apply only to flights to, from or within the EU. Compensation in the case of death or injury There are no financial limits to the liability for passenger injury or death. For damages up to 100,000 SDRs, the air carrier cannot contest claims for compensation. Above that amount, the air carrier can defend itself against a claim by proving it was not negligent or otherwise at fault. Advance payments If a passenger is killed or injured, the air carrier must make an advance payment, to cover immediate needs, within 15 days of the person being identified, under the following conditions. In the event of death, this advance payment must not be less than 16,000 SDRs. An advance payment does not constitute recognition of liability and can be offset against any subsequent sums paid for air carrier liability. It is not returnable unless the carrier proves that the damage was caused or contributed to by the negligence or omission of the person claiming compensation, or where the person who received the advance payment was not entitled to it. Passenger delays If a passenger is delayed, the air carrier is liable for damage unless it took all possible reasonable steps to avoid the damage. Liability is limited to 4,150 SDRs. Baggage delays If baggage is delayed, the air carrier is liable for damage unless it took all possible reasonable measures to avoid it. Liability is limited to 1,000 SDRs. Destruction, loss or damage to baggage The air carrier is liable for the destruction of, loss of or damage to baggage, liability is up to 1,000 SDRs. For checked baggage, it is liable even if it is not at fault, unless the baggage was defective. For unchecked baggage, the carrier is liable only if it is at fault. Higher limits for baggage Passengers can benefit from a higher liability limit by making a special declaration at the latest at check-in and by paying a supplementary fee. The fee must reflect the additional costs above those for baggage valued within the liability limit. The tariff must be made available on request. Complaints on baggage If checked baggage is damaged, delayed, lost or destroyed, the passenger must write and complain to the air carrier as soon as possible, within 7 days for damage and 21 days for delay following receipt. Any court action must be brought within 2 years from the date of arrival of the aircraft, or from the date on which the aircraft was due to arrive. FROM WHEN DOES THE REGULATION APPLY? It has applied since 17 October 1998. BACKGROUND For further information, see: Aviation safety policy in Europe (European Commission). KEY TERMS Special drawing rights. A potential claim on the freely usable currencies of international monetary fund members. SDRs can be exchanged for those currencies (as defined by the international monetary fund). MAIN DOCUMENT Council Regulation (EC) No 2027/97 of 9 October 1997 on air carrier liability in the event of accidents (OJ L 285, 17.10.1997, pp. 1–3). Successive amendments to Regulation (EC) No 2027/97 have been incorporated in the original text. This consolidated version is of documentary value only. RELATED DOCUMENTS Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EC) No 261/2004 establishing common rules on compensation and assistance to passengers in the event of denied boarding and of cancellation or long delay of flights and Regulation (EC) No 2027/97 on air carrier liability in respect of the carriage of passengers and their baggage by air (COM(2013) 130 final, 13.3.2013). Convention for the Unification of Certain Rules for International Carriage by Air (the Montreal Convention) (OJ L 194, 18.7.2001, pp. 39–49). Council Decision 2001/539/EC of 5 April 2001 on the conclusion by the European Community of the Convention for the Unification of Certain Rules for International Carriage by Air (the Montreal Convention) (OJ L 194, 18.7.2001, p. 38). last update 17.01.2022


EUR-Lex - 31998Y1229(01) - EN Avis juridique important | 31998Y1229(01) Council Resolution of 21 December 1998 on the prevention of organised crime with reference to the establishment of a comprehensive strategy for combating it Official Journal C 408 , 29/12/1998 P. 0001 - 0004 COUNCIL RESOLUTION of 21 December 1998 on the prevention of organised crime with reference to the establishment of a comprehensive strategy for combating it (98/C 408/01)THE COUNCIL OF THE EUROPEAN UNION,Having regard to the action plan to combat organised crime of 28 April 1997 (the action plan) (1),Conscious of the advances made in implementing the action plan, in particular recommendations 6 to 12 thereof,Having regard to the European Parliament's resolution of 20 November 1997 on the action plan (2), which calls for closer consideration of the prevention aspect,Considering the importance of a greater awareness of the dangers of organised crime to democracy and the rule of law, for freedom, human rights and self-determination, values which are the raison d'être of any fight against organised crime,Conscious of the fact that this resolution is not intended to replace the specific prevention measures provided for in the action plan but to supplement and back up those efforts,Having regard to the results of the seminar on police and urban criminality (Zaragoza, February 1996), the European Union Conference on Crime Prevention (Stockholm, May 1996), the seminar on European Union measures to combat the drug problem (Dublin, November 1996), the conclusions of the European Union Conference on Crime Prevention (Noordwijk, May 1997) and the seminar 'Partnerships in reducing crime` (London, June 1998),Having regard to the conclusions of the Conference on achieving a corruption free commercial environment, the EU's contribution (Brussels, April 1998),Having regard to the work of other international organisations and forums, in particular the Council of Europe recommendations R(81)12 on economic crime and R(87)19 on the organisation of crime prevention, resolution R(97)24 on 20 guiding principles for the fight against corruption, the work under the United Nations programme on crime prevention and criminal justice, as well as the results of the United Nations General Assembly on Drugs (New York, June 1998), and in particular the declaration on demand reduction guidelines,Having due regard for, and emphasising, the Commission's responsibilities for enabling the promotion of important aspects of prevention,(1) CONSIDERS that the combating of international organised crime backed up by effective, sustainable law enforcement also requires a wide range of preventive measures, developed with due regard to fundamental human rights;(2) EMPHASISES the important role that effective and coordinated national criminal intelligence units, and Europol, as laid down especially in Articles 2 and 3 of the Convention on the establishment of a European Police Office (Europol Convention) (3) also play in preventing organised crime;(3) CONFIRMS that in preventing and combating organised crime individual States and the international community play a key role; none the less, the prevention of organised crime is not the task of law enforcement agencies and judicial authorities alone but requires an effort on the part of civil society as a whole, taking joint responsibility for community life;(4) UNDERLINES in this context the important role played by institutions and groups of persons that contribute to shaping the cultural environment and individual responsibility in a community at national, regional and local level (e.g. schools and NGOs), by carrying out substantial preventive work, both in devising policy and implementing concrete measures;(5) RECOGNISES that an effective policy in the field of prevention of organised crime will also benefit from efficient social security, education and training systems which are as comprehensive as possible, coupled with measures to combat unemployment and poverty as well as creative and humane urban planning and urban design geared to prevention;(6) ENDORSES efforts to assist the social integration of marginalised groups in order to reduce possible dangers that vulnerable members of those groups may devote themselves to crime;(7) STRESSES the particular importance of measures to assist the social reintegration of offenders, diversion measures and enforcement of sentences for purposes of preventing repetition of offences;(8) ENCOURAGES Member States, while stressing the importance of action by public authorities, to examine whether any tasks relating to the prevention of organised crime could not, in conformity with the basic principles of their legal system and internal policies, be carried out by non-public bodies at national, regional and local level which could assist in compiling information, defining programmes, implementing measures and in educational work in the field of prevention;(9) CONSIDERS that every possibility must be investigated, and all the necessary steps taken, to counteract the development and spread of illegal markets which provide room for manoeuvre and operational scope for organised crime;(10) ENCOURAGES Member States to continue and step up their endeavours and coordination efforts regarding all aspects of drug prevention in line with international drug control instruments, in order to reduce demand for illegal drugs, which account for a significant part of the operations of organised crime;(11) ENCOURAGES Member States to look into the development and spreading of technical equipment, such as special safety devices, to prevent crimes which tend to be committed by criminal organisations, and also to consider the possible implications, as for instance a switch to other forms of crime;(12) EMPHASISES also that professions which might be confronted with organised crime (especially those mentioned in recommendation 12 of the action plan), and their interest groupings, have responsibilities in the area of prevention of organised crime, with particular reference to the drafting of codes of conduct and other measures to counteract corruption and infiltration by organised crime;(13) EMPHASISES that transparency and controls in connection with the award of public contracts make a significant contribution to the prevention of corruption and organised crime and, therefore, calls on Member States to implement the relevant directrives and support their objectives with appropriate and concrete measures relating to law enforcement and judicial aspects;(14) EMPHASISES that, in particular in the context of fighting corruption and its links with organised crime, openness and transparency in public affairs, including lawful and transparent funding of political parties and organisations, play an important preventive role;(15) RECALLS the importance in the drafting of legal instruments, and in reviewing existing laws, to take into account crime prevention aspects, in order to ensure that the rules do not invite or facilitate fraud or other abuse, and to consult in the legislative process, where appropriate, with authorities having experience in the field of prevention of organised crime;(16) IS CONVINCED that adequate information and education about the causes, nature, dangers and consequences of the advance of organised crime is particularly relevant to prevention and that the mass media play an important role in the process of information;(17) RECOGNISES that several Member States, basing themselves on comprehensive multidisciplinary analyses of a specific situation, have developed national programmes to combat organised crime as it has manifested itself in their territory and have also adapted those programmes to changing circumstances; therefore, Member States are encouraged to keep each other fully informed of those programmes, to draw on these examples and experiences, and to develop, where appropriate and in accordance with their legal systems and traditions, such national programmes to combat organised crime;(18) RECOGNISES that, when analysing problems and defining programmes as well as implementing prevention measures, several Member States, in accordance with their national law, provide for the possibility that law enforcement agencies and judicial authorities, the social groups concerned, tradesmen and civil administration bodies (at both local and regional level) confer on a regular basis (examples of this are the 'crime prevention boards` which exist in a number of Member States, and the Netherlands 'trilateral commissions`); therefore, Member States are encouraged to set up comparable structures at national, regional and local level, where appropriate and in accordance with their legal systems and traditions, to discuss and study questions of prevention, in particular the prevention of organised crime, and to draw up proposals to promote prevention;(19) ENCOURAGES Member States furthermore to coordinate prevention between local, regional and national levels as well as between various authorities and departments having a specific role in preventing organised crime;(20) NOTES in this context, the intention of the Commission to build on work already undertaken on an interface inventory of Community instruments which contribute to the prevention of crime and to enhance internal coordination and exchange of information in this respect;(21) CALLS ON Member States to increase their knowledge of how to prevent organised crime, for example through adequately funded multidisciplinary research programmes which are as comprehensive as possible and which should include research on the evaluation of specific preventive measures;(22) ENCOURAGES Member States and relevant institutions to use appropriate Community programmes, particularly the Joint Action of 19 March 1998 establishing a programme of exchanges, training and cooperation for persons responsible for action to combat organised crime (Falcone programme) (4), also for activities relating to the prevention of organised crime;(23) CONSIDERS it necessary to evaluate ongoing prevention activities, examining in particular to what extent the experience gained can be applied generally;(24) INVITES Member States to draw up, at the request of the Presidency of the Council, a summary of their experiences, at local, regional and national level, with measures which have helped to prevent organised crime, and to make it available to the other Member States;(25) INVITES Member States therefore to inform one another about any findings on the prevention of organised crime, whether obtained through new scientific work or practical experience and evaluation, and to consider ways of facilitating, and, if appropriate, institutionalising such an exchange of information, possibly also bilaterally or between regions and municipalities;(26) CALLS ON Member States to designate, where they have not already done so, national contact and focal points for the exchange of information, relating to all aspects of prevention of organised crime, between States and to notify those points to the General Secretariat of the Council taking into account the agreement of the Council on 28 May 1998 relating to arrangements providing for an improved exchange of information and best practice in the field of crime prevention;(27) CONSIDERS it desirable to include also non-member countries, particularly applicant countries and neighbouring countries, in such an exchange of information and that a strategy for the prevention of organised crime could also be envisaged in the context of aid for, and cooperation with, non-member countries;(28) CONSIDERS it desirable that the Member States and the Community exchange information on issues related to the prevention of organised crime with other itnernational organisations;(29) CONSIDERS it necessary that future prevention activities should include concrete projects which provide practical know-how to the bodies concerned in each case (local authorities, regions, Member States, Council, Commission) in order to create a basis for drawing up codes of good practice for preventing organised crime in specific areas, that should be constantly updated and submitted to the other Member States for checking against their own initiatives;(30) CONSIDERS it desirable that Member States and the Commission agree as far as possible on common definitions, standards and methods of prevention in order to enable any findings to be exchanged and used;(31) INVITES the Commission to examine how it can help, in the context of and within the scope of its responsibilities, to increase knowledge on how to prevent organised crime;(32) REQUESTS the Commission to keep fully up-to-date its interface inventory of Community instruments which contribute to the prevention of organised crime and to continue analysing and evaluating other existing Community instruments to consider to what extent they help to prevent organised crime;(33) INVITES the Member States, Europol and the Commission, each within their respective competencies, to study the matter and related questions. Thereafter, the Commission and Europol are invited to cooperate in the preparation of a comprehensive report by the end of 2000, which in particular:- makes proposals on how prevention measures could be promoted in future work at European level, and in particular on how they could be reflected in the legislative process,- analyses what measures for the prevention of organised crime, by which bodies and at what level, seem appropriate with a view to optimum effectiveness,- analyses proposals for the encouragement of the evaluation of measures for the prevention of organised crime,- analyses to what extent prevention measures can be taken at European level (particularly in the light of the Treaty of Amsterdam),- makes proposals for drawing up and keeping up to date a repertory of good practice in the area of organised crime prevention,- analyses to what extent ideas and measures for the prevention of organised crime could be taken into account in the process of enlargement and relations with third States;(34) CALLS ON both the Member States and the Commission to report to the Council before the end of 2000 also on other measures taken to prevent organised crime;(35) RESOLVES then to review and evaluate the implementation of this resolution in the light of these reports and to decide on further measures on the prevention of organised crime.(1) OJ C 251, 15.8.1997, p. 1.(2) OJ C 371, 8.12.1997, p. 183.(3) OJ C 316, 27.11.1995, p. 2.(4) OJ L 99, 31.3.1998, p. 8.

Summary: Comprehensive strategy for combating organised crime Comprehensive strategy for combating organised crime The European Union proposes international crime prevention measures, encouraging Member States to continue implementation of prevention programmes. ACT Council Resolution of 21 December 1998 on the prevention of organised crime with reference to the establishment of a comprehensive strategy for combating it [Official Journal C 408 of 29.12.1998]. SUMMARY Following the action plan to combat organised crime adopted by the Council on 28 April 1997 and having regard to the results of the seminars on combating crime held in a number of European cities (Saragossa in February 1996, Stockholm in May 1996, Noordwijk in May 1997 and London in June 1998), the Council considers that prevention is just as important as enforcement in providing an effective response to crime. At international level the Council of Europe and the United Nations have adopted recommendations and programmes aimed primarily at developing a comprehensive strategy to combat crime. Responsibility for the prevention of crime lies not only with the judicial authorities and the police but also with civil society as a whole (schools, non-governmental organisations, social structures, etc.). Measures to combat unemployment and social exclusion and to ensure appropriate education and training could also bring benefits for high-risk groups. The Council calls on the Member States to: continue to implement prevention programmes and training measures; develop measures to combat drug use; adopt measures (codes of conduct, for example) for professions which are vulnerable to corruption; guarantee transparency in awarding public contracts and in public affairs in general (financing of political parties and other organisations); raise awareness of the causes, dangers and consequences of the increase in crime; create regional or local structures to study questions related to crime; inform the other Member States of any new information arising from practical experiences or scientific work. The Council also raises the possibility of institutionalising this exchange through the creation of national contact points; define common methods of prevention, in liaison with the Commission and Europol. The Commission and Europol have formulated a joint report containing proposals for crime prevention. Among other things, the report has decided what measures could be adopted at Community level and what influence prevention measures might have on the enlargement process and relations with non-member countries. References Act Entry into force - Date of expiry Deadline for transposition in the Member States Official Journal Council Resolution of 21 December 1998 - - OJ C 408, 29.12.1998 RELATED ACTS Council Decision of 28 May setting up a European Crime Prevention Network.[Official Journal L 153 of 08.06.2001] Communication from the Commission to the Council and the European Parliament: The prevention of crime in the European Union - Reflection on common guidelines and proposals for Community financial support [COM(2000) 786 final - Not published in the Official Journal]. The prevention and control of organised crime: a strategy for the beginning of the new millennium [Official Journal C 124 of 03.05.2000] Last updated: 06.11.2006