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Clarification by the Managing Authority (MA) regarding the request of derogation to the rule of origin

23.01.12 | News

In accordance to the often submitted requests of derogation to the rule of origin, the Managing Authority found that the Project partners meet difficulties with the implementation of the procedure. In order to achieve clarity MA presents the following guidelines and additional information:

The rule of origin is a general rule, which applies to all Beneficiaries. Paragraph 6 of Article 19 of the IPA Regulation 1085/2006 states that the Commission may, in duly substantiated exceptional cases, authorizes the purchase of supplies and materials of different origin. It states also that derogations may be justified on the basis of the unavailability of products and services in the markets of the countries concerned, for reasons of extreme urgency, or if the eligibility rules would make the realization of a project, a Programme or an action impossible or exceedingly difficult. In IPA CBC Programmes, where implementation tasks are delegated to Member states, the Programmes' Managing Authorities grant derogations to the rule of origin. Derogations to the rule of origin can be allowed only if at least one of the specific conditions according to Paragraph 6 of Article 19 of the IPA Regulation 1085/2006 is met.

In relation to the above, the MA considers that the procedure for derogation could be executed only in case of supply of specific professional equipment and the above listed conditions are respected. In case of request for derogation for supply of daily used equipment as office, IT equipment, etc. it should be treated as exclusive, on the base of which the derogation will be requested (for example server, with specific characteristics, produced by limited number of suppliers and planned to be used for a specific project activity. It is important to note, that these suppliers should not possess a certificate for statement of origin.
It is also to be taken into account, that the lack of equipment for daily use, such as printer, PC, fax, telephone, GPS device etc., would not be of a substantial hindrance or a threat to the implementation of the project, and this should not be a reason for submission of a request for derogation to the rule of origin.

Prior to the submission of a request for derogation to the rule of origin, the Beneficiaries should perform a large-scale inquiry of suppliers. As "supplier" is considered a trader-producer or official representative of the producer, or middleman of the relevant equipment. As "large-scale inquiry" is considered an analysis, which is not focused only on local/regional suppliers. As a result of the inquiry, The Beneficiaries should submit the correspondence, containing official answers from at least three suppliers, one of which, operating at national level, together with the request for derogation. The formal inquiry and the lack of the relevant answer do not fulfill the above mentioned conditions for submission of the request for derogation to the rule of origin.

The excessive price should not be considered a reason for derogation, having in mind that the Beneficiaries were able to foreseen the budget at the stage of submission of the project proposals and at the stage of contracting. This means that the Beneficiaries should be familiar with the rules of PRAG, regarding the supply of equipment and related to budget planning.

These guidelines were developed for all Beneficiaries and/or partners to obtain specific clarification related to the preparation and submission of request for derogation to the rule of origin for supply of equipment.