 |
 Negotiations
 |
 |
 |
 |
|
|
26/30 Chapters are now closed
|
|
 |
 |
 |
 |
CHAPTER 1 FREE MOVEMENT OF GOODS
|
|
|
|
LEVEL OF NEGOTIATIONS
Negotiations on Chapter Free Movement of Goods were opened in May 2001 and provisionally closed in June 2002.
Commitment has been undertaken to adopt most of the legislation before the date of EU membership and no transition periods or exceptions have been requested. By the date of accession 80% of EC existing standards should be implemented. The most general date for full harmonization stated in the negotiation position is by the end of 2005.
|
|
|
|
|
|
|
|
|
|
|
HARMONIZATION PROCESS
The legislation subject to harmonization under Chapter Free Movement of Goods covers huge in volume, mainly technical legislation, covering a number of sectors and risk groups of goods, such as: foodstuffs, pharmaceuticals, cosmetics, chemicals, motor vehicles, construction products, machinery, toys, textile goods, footwear, etc. In non-harmonized sectors the Bulgarian authorities have to guarantee integration on the principle of mutual recognition in each and every statute for the goods.
As of the end of 2002, the process of our legislation harmonization in the field of Free Movement of Goods was almost finished. The basic laws have been adopted, creating conditions for adoption of European requirements towards the goods, tradable on the Common European Market:
- Foodstuffs Act;
- Act on the Technical Requirements to Goods;
- Weights and Measurements Act;
- Act on Humanitarian Medicine Pharmaceuticals and Pharmacies;
- National Standardization Act.
A number of amendments and supplements to the Public Procurement Act have been adopted, which is advancement in respect of acquis communautaire implementation in this area. In 2000 Regulation on the establishment of a Public Procurement Register was adopted. The Register has proven itself as an often-used tool and will contribute to transparency.
The adopted in 1999 Framework Act on the Technical Requirements to Goods introduced the principle of the «new» and «global» approach in legislation and established the legal base for the implementation of the “New Approach” Sector Directives.
The work on the adoption of the specific sectorial legislation is advancing. The basic secondary legislation, introducing the “New Approach” Directives and the “old” Sectorial Approach ones has been adopted. In the areas covered by the “New Approach” 12 Directives have been transposed: for gas appliances, construction products, machinery, recreational craft, toys, lifts, electromagnetic compatibility, simple pressure vessels, explosives for civil use, low-voltage equipment, equipment and protection systems, used in potentially explosive environment, personal protection devices.
As for the areas covered by the "Old Approach Directives", progress has been made in relation to motor vehicles, foodstuffs, chemicals and pharmaceuticals and cosmetics, glass, textile goods and footwear.
In respect of foodstuffs safety ordinances have been adopted pertaining to labeling, additions, packing materials, hygiene, radiation and contamination. Bulgaria has adopted acquis communautaire in respect of hygiene requirements to non-plastic materials to be in contact with foodstuffs. For further harmonization with acquis forthcoming is to eliminate the system of foodstuffs approval before their launching on the market. The administration assigned with the control over foodstuffs safety should be restructured to comply with Community requirements.
Since January 1, 2000 preliminary control on industrial goods has been eliminated, including border control on import, which provides free access and equal treatment on the basis of voluntary standardization regime.
Adoption of European standards is making good progress.
|
|
|
|
|
|
|
|
|
|
|
ADMINISTRATIVE INFRASTRUCTURE
The key institutions, taking part in the negotiations and in the transposing of the acquis communautaire are the Ministry of Economy, the Ministry of Agriculture and Forestry, the Ministry of Health (in respect of foodstuffs safety), the Bulgarian Institute for Standardization, the State Agency for Metrology and Technical Surveillance.
The infrastructure of the institutions, responsible for supervising the observance of the requirements or the legislation implementation, is also being developed. The activities on the technical regulation, standardization, accreditation, certification and market surveillance have been separated. The competent institutions in this area are, as follows:
- Bulgarian Institute for Standardization;
- Executive Agency “Certification and Testing” to the Ministry of Economy;
- State Agency for Metrology and Technical Surveillance;
- Executive Agency “Bulgarian Accreditation Service” to the Ministry of Economy;
- National Metrology Institute;
- National Veterinary Service;
- a network of independent laboratories, certification bodies and control services for market surveillance;
- Association Committee, where these reports and information are being discussed;
- and others.
The Bulgarian Institute for Standardization is appointed as National Contact Point, responsible for announcing national technical regulations and standards, as well as for conformity assessment before the European Commission.
The Customs Agency supports and cooperates with market surveillance bodies.
A Public Procurement Directorate has been established at the Council of Ministers, to control legislation in the field of public procurement implementation. Commitment has been undertaken to transform the Directorate into a Public Procurement Agency.
Some of these institutions are comparatively new or recently restructured which asks for their technical strengthening and relevant training of their employees. Coordination too between these institutions should be strengthened in respect of their tasks implementation – full metrological, veterinary, hygienic and epidemiological control of tradable goods produced or imported in the country. Consumer protection organizations and associations also take part in the control.
|
|
|
|
|
|
|
|
|
|
|
RECOMMENDATIONS OF THE EUROPEAN COMMISSION
Efforts and further work need to be done in the following areas:
- strengthening the administrative capacity to ensure efficient market surveillance, modernization of laboratories and training of inspectors; improvement of the coordination between the competent institutions;
- establishment of proper infrastructure for customs control and market surveillance;
- development of a national system of conformity assessment;
- elimination of indirect trade barriers, including introduction of mutual recognition clauses;
- establishment of a Public Procurement Agency.
The big share of exports to EU – 55.6 % in 2002 is indicative of the fact that the production of a considerable part of the Bulgarian enterprises is in conformity with Common European Market requirements. The increased degree of harmonization with the acquis communautaire is an important factor for attraction of investment in Bulgarian enterprises.
|
|
|
|
|
CHAPTER 2 FREE MOVEMENT OF PERSONS
|
|
|
|
|
|
LEVEL OF NEGOTIATIONS
Negotiations on Chapter 2 Free Movement of People were provisionally closed in July 2002. The country has made satisfactory progress in respect of bringing its legislation in line with the acquis communautaire in this field. Bulgaria has undertaken commitment as of the date of accession to have fully transposed Community law in the field of free movement of people and to have built the necessary administrative capacity for its efficient implementation. Bulgaria has not requested any transition period in this area.
Bulgaria has accepted the proposed by EU transition period in respect of free movement of workers from Bulgaria to EU: limitations shall be applied in respect of free movement of workers from Bulgaria to EU for a period of minimum two years as from the date of accession, which limitations may remain into force for a maximum of seven years.
As of the moment Bulgaria has partially brought its legislation in line with the acquis communautaire, but further work is required to achieve full consistency and to further build the necessary administrative capacity.
The Chapter covers the following areas:
- mutual recognition of diplomas and professional qualifications;
- free movement of workers;
- coordination of social insurance schemes;
- right of residence;
- civil rights.
In the area of mutual recognition of diplomas and professional qualifications progress has been achieved with the amendments to the Public Education Act, Higher Education Act and the Act on Enhancing Professional Qualification. These laws are focused on promoting freedom to provide services on behalf of the regulated professions. Standards for 18 professions have been developed and a list of professions and subjects for professional education and training has been prepared. A number of bylaws in respect of medical and paramedical activities have been adopted. With the adoption of the Act on the Chambers of Architects and the Chambers of Investment Design Engineers Bulgaria has made progress in harmonization with the provisions for recognition of qualifications and freedom to provide services in this area.
In relation to civil rights progress has been achieved mainly with the amendments to the Civil Rights Act and Foreigners in the Republic of Bulgaria Act. Amendments to the Constitution should be made in order to achieve full consistency with the acquis communautaire in this field. The further harmonization in respect of students’ rights under the Higher Education Act means that now foreigners can apply for higher schools provided they have diplomas allowing them access to higher schools in the country where the relevant diplomas have been issued.
In respect of free movement of workers the new Act on Employment Promotion, January 2002, makes possible the elimination of the work permit regime for EU citizens on accession. By an Ordinance of April 2002 the members of foreign workers families got access to the labor markets, now not being necessary to wait for 24 months. Bulgaria has introduced new residence permit rules for self-employed workers. A bilateral agreement with Spain entered into force, covering health insurance, pensions, unemployment benefits and family allowances. Bulgaria has a bilateral agreement with Germany for workers in hotels and catering since September 1999 and an agreement with the Czech Republic since December 1999.
In the field of coordination of the social insurance schemes Bulgaria has adopted secondary legislation. The efforts for further building and strengthening the necessary administrative structures continue. The preparatory work for facilitating the country’s participation in the European Employment Service continues.
|
|
|
|
|
|
|
|
|
|
|
RECOMMENDATIONS OF THE EUROPEAN COMMISSION
Bulgaria has partially harmonized its legislation with the Community law, but further efforts are necessary for speeding the process up and strengthening the administrative capacity in all sectors. Further work is required:
- in the area of qualifications recognition: the provisions in respect of lawyers, pharmacists and veterinary doctors should be brought in line with EC legislation;
- in respect of professional qualifications acquired before accession, measures should be introduced to guarantee that all Bulgarian individuals with professional qualification as of the date of accession meet the requirements under the acquis;
- curricula and training should be brought in line with sectorial Directives;
- to guarantee differentiation between academic and professional recognition in mutual recognition legislation and to provide for simplified permission procedures for provision of services;
- on accession the whole Bulgarian legislation should be brought in line with Community rules, with regard to nationality, residence and language requirements in particular;
- as of the moment of accession Bulgaria should guarantee that it is in position to meet the financial and administrative obligations ensuing from the rules for social insurance coordination.
|
|
|
|
|
CHAPTER 3 FREEDOM TO PROVIDE SERVICES
|
|
|
|
|
|
LEVEL OF NEGOTIATIONS
Chapter Freedom to Provide Services was opened for negotiations in January 2001 and provisionally closed in November 2001. By its final closing as of the date of accession, 01.01.2007, the following commitments have to be met in compliance with Republic of Bulgaria Negotiation Position:
- to harmonize national legislation with European Community law in the field of freedom to provide services and its efficient implementation;
- to amend the acts regulating the regulated professions (lawyers, physicians, stomatologists, pharmacists, veterinary doctors, architects, etc.), so that individuals who have the right to exercise these professions in EU Member-States to be able to exercise these professions in Bulgaria too;
- to amend the acts regulating financial services (banking, insurance, securities) with the purpose of their harmonization with the acquis communautaire; the changes should provide greater protection of the interests of individuals and legal entities, users of those services;
- to amend the Act on Bank Deposit Guaranty – by 01.01.2007 the minimum level of coverage of individuals’ deposits must reach BGN 39,200. At the moment it is BGN 15,000.
Bulgaria as a whole has made considerable progress in bringing its legislation in line with the acquis communautaire in this area.
|
|
|
|
|
|
|
|
|
|
|
HARMONIZATION PROCESS
The liberalization of the services market presumes guaranteeing the right of establishment and freedom to provide services.
The legislation should regulate the implementation of the following fundamental principles, pertaining to the freedom to provide services:
- the principle of non-discrimination and equal treatment of resident and non-resident individuals and legal entities;
- the principle of one license in the sphere of financial services;
- stable prices;
- free competition;
- stable public finances.
The services considered in this Chapter include: financial services (banking, insurance and securities), protection of personal data, self-employed traders regime, information society. These are extremely divers in their nature activities, which fact predetermines the ambiguous evaluation in respect of the extent of harmonization. As of the moment progress has been made in certain areas although part of the existing legislation is subject to up-dating and consequent amendments.
In the area of the right of establishment and freedom to provide services progress has been made in the process of harmonization with the adoption of the Consumer Protection Act and trade rules, in force since 1999. The Act should be up-dated because it presumes establishment of residents in Bulgaria which impedes free trade. Amendments have been made to the Foreigners in the Republic of Bulgaria Act, which eliminate the discrimination permit requirements imposed on self-employed EU citizen, January 2001.
In the area of financial services provision Bulgaria has made good progress in the process of harmonization.
New ordinances have been adopted in respect of banking: the procedures for issuing banking licenses, February 2000; the ordinance on supervision and control of big exposures, November 1999; the consolidated control rules, June 2000; the BNB ordinance on payments, July 2000; the ordinance on capital adequacy of banks; the amendments and supplements to the Act on Bank Deposit Guaranty, December 2001; the Bank Insolvency Act, September 2002.
Legal framework in relation to the annual reports on insurance contracts, insurance agents and brokers has been introduced in the insurance sector. A revision of motor vehicles rules has been made and also amendments and supplements to the ordinance on obligatory insurance. There is certain harmonization of the legislations in respect of third party liability insurance with regard to the use of motor vehicles.
In the area of investment services and securities market the Public Offering of Securities Act was adopted, January 2000, and the secondary legislation in respect of its implementation. The Directive on enterprises for collective investment in transferable securities is only partially transposed.
In the area of personal data protection an Act on Personal Data Protection was adopted, December 2001. Council of Europe Convention 108 on protection of individuals in respect of automatic data processing has been ratified.
As to information society the Council of Ministers adopted in October 1999 a Strategy for Information Society Development. An Act on Electronic Documents and Signature was adopted, April 2001, introducing the EC Directive in respect of Community framework on electronic signature. In January 2002 ordinances were adopted in compliance with the Act on Electronic Documents and Signature requirements.
|
|
|
|
|
|
|
|
|
|
|
ADMINISTRATIVE INFRASTRUCTURE
Surveillance institutions are, as follows:
- BNB is exercising bank supervision in an efficient and competent way, but some of its powers should be enlarged;
- Financial sector Supervision Consultative Council;
- Bulgarian National Securities Commission, as capital market regulator;
- National Insurance Council;
- State Insurance Supervision Agency, January 2002, whereby insurance supervision was separated from gambling supervision;
- State Telecommunications Commission;
- Green Cards Motor Insurance Bureau.
|
|
|
|
|
|
|
|
|
|
|
RECOMMENDATIONS OF THE EUROPEAN COMMISSION
Further efforts and work are necessary in the following areas:
- in the areas of right to establishment and freedom to provide services, further efforts are necessary to determine measures to ensure full non-discrimination;
- in the area of financial services – despite the progress made, sustainable efforts are required in the course of several years before the Bulgarian financial system would be able to withstand the impact of integration in the internal market;
- in the insurance sector – establishment of a strong regulatory body; adoption of EU Directives on insurance accounts and motor insurance in the period 2003-2005; strengthening the capacity of the State Insurance Supervision Agency;
- in the securities trading sector further harmonization of the legislation is required;
- as to pension funds it is necessary to strengthen the capacity both in respect of the supervisory body, the State Insurance Supervision Agency, and in respect of the pension funds corporate management;
- bringing the Act on Personal Data Protection in line with the acquis communautaire in this field; measures for establishing the administrative capacity for the law implementation and enforcement;
The Commission is of the opinion that Bulgaria is achieving continuous progress in most areas, both in respect of legislation and of the administrative and regulatory infrastructure, necessary for financial services sector supervision. It has achieved acceptable level of harmonization and needs further strengthening of the administrative capacity for implementation and compliance.
|
|
|
|
|
CHAPTER 4 FREE MOVEMENT OF CAPITAL
|
|
|
|
|
|
LEVEL OF NEGOTIATIONS
The negotiations on Chapter 4 Free Movement of Capital began in November 2000 and were provisionally closed in July 2001 after reaching all agreements.
Bulgaria has undertaken the commitment by the date of membership to eliminate all restrictions before the free movement of capital with the exception of the agreed transition periods, to bring its legislation in the field of payment systems and money laundering in line with the acquis communautaire and to ensure the necessary administrative capacity for its implementation.
In the course of negotiations two transition periods have been agreed in respect of land acquisition by foreigners:
- seven years as from the date of accession for acquisition of ownership on agricultural land and forests in the country;
- five years as from the date of accession for acquisition of land for second residence.
Self-leased farmers that wish to reside in the country are excluded from the transition period scope.
Bulgaria has undertaken the commitment by the date of accession to change Art. 22 of the Constitution, to eliminate the general prohibition for purchase of land by foreigners and by the date of membership to give the opportunity:
- to EU farmers to buy land in Bulgaria for the purpose of their activities;
- to EU companies and citizens, willing to reside in the country, to buy land in Bulgaria for the purpose of their business activities or their profession’s needs.
|
|
|
|
|
|
|
|
|
|
|
HARMONIZATION PROCESS
The Chapter covers three basic areas:
- free movement of capital;
- payment and settlement systems;
- measures against money laundering.
Free movement of capital includes: direct investment, acquisition of ownership over realties, transactions with securities, transactions with current and deposit accounts in financial institutions, physical import and export of financial assets, financial loans and credits, etc.
According to European legislation any restrictions to movement of capital and payments between states are prohibited.
European legislation in the field of payment systems and securities settlement systems aims to unify the technical standards and to establish uniform rules both for internal and for cross-border transfers and payments which will facilitate and encourage free movement of capital.
The movement of capital full liberalization creates conditions for using the financial system for laundering of money, obtained through criminal actions. This requires common coordinated measures and actions to be undertaken to prevent the use of financial systems for money laundering, without in any way affecting free movement of capital or the freedom to provide services, which underlie the internal market liberalization.
Bulgaria has achieved considerable harmonization of its legislation with the acquis communautaire in this field.
In the area of capital flows liberalization two laws were adopted in 2000:
- Foreign Exchange Act;
- Public Offering of Securities Act.
The Foreign Exchange Act adopts the general principle that all transactions between residents and non-residents can be conducted freely, provided not otherwise stipulated in the law. Only a limited number of transactions should be registered with the Bulgarian National Bank before being conducted. The import of national and foreign currency in cash by residents and non-residents is free, while the export of amounts exceeding BGN 20,000 or their equivalent in foreign currency requires authorisation by the Bank.
The Public Offering of Securities Act, which determines all the rules to be followed by the market players, applies equally to residents and non-residents. This Act exclusively allows the offering of foreign securities on the Bulgarian capital market.
Amendments to the BNB ordinance on payments in July 2000 and November 2001 introduced up-to-date payment infrastructure.
In respect of money laundering Bulgaria is party to the Convention of 1990 and adopted Measures against Money Laundering Act in 1996, but considerable amount of work needs yet to be done in order to achieve efficiency of the system in practice.
The amendments and supplements to the Measures against Money Laundering Act, in force from January 2002, reflect the reorganization of the Bureau of Financial Intelligence into an agency.
|
|
|
|
|
|
|
|
|
|
|
ADMINISTRATIVE INFRASTRUCTURE
The Bulgarian National Bank and the Ministry of Finance are the bodies responsible for the implementation of the provisions of the Foreign Exchange Act.
The Bureau of Financial Intelligence, which since 1998 has been responsible for the implementation of the money laundering legislation, has been restructured into an agency, an independent administrative structure reporting to the Ministry of Finance.
Procedures are being set for cooperation between the Bureau of Financial Intelligence Agency, the General Tax Directorate, the Insurance Supervision Agency and the Gambling Supervision Agency.
The coordination and cooperation between the specialized institutions, the Bureau of Financial Intelligence Agency and the Police Service responsible for detecting corruption and heavy economic crimes, is improving.
|
|
|
|
|
|
|
|
|
|
|
RECOMMENDATIONS OF THE EUROPEAN COMMISSION
The following issues require additional attention:
- strengthening and improvement of the already built administrative capacity for implementation of the adopted legislation;
- final elimination of the restrictions in respect of acquisition of realties by foreigners (non-residents);
- completion of the adoption of the legislation pertaining to cross-border credit transfers, settlement and securities settlement transaction systems and the instruments for electronic payment in compliance with EU law;
- adoption of amendments and supplements to the Foreign Exchange Act to replace the verification procedure with a declaration procedure in respect of export of capital;
- establishment of a system for out-of-court redress, which to deal with the settlement of complaints between banks and their clients.
|
|
|
|
|
CHAPTER 5 COMPANY LAW
|
|
|
|
|
|
LEVEL OF NEGOTIATIONS
The negotiations on Chapter 5 Company Law began in November 2000 and were provisionally closed in June 2001, after reaching all agreements.
The Chapter covers the following basic areas:
- company law;
- Rome and Brussels Conventions;
- accounting;
- protection of intellectual property;
- protection of industrial property.
Bulgarian legislation in the area of company law, the Rome and Brussels Conventions, accounting law, intellectual and industrial property rights is broadly in compliance with the acquis communautaire.
The existing regulation in the area of Bulgarian company law is contained mainly in the Commercial Code, adopted in 1991. In October 2000 amendments and supplements to the Commercial Code were adopted with the view of it being brought in line with the requirements of part of the key EU Directives: the First Directive on disclosure of information, the Second Directive on capital, the Eleventh Directive on disclosure requirements in respect of branches of foreign companies, and the Twelfth Directive on single-member private limited liability companies. With the purpose of full implementation of aquis communautaire provisions, new amendments to the Commercial Code have been prepared, their adoption by the National Assembly is pending. These amendments implement the legal regulation on company transformations, at the same time improving the existing regulation in respect of corporate management and insolvency procedures.
As from the date of accession of the country to EU, the provisions of two specific Regulations will begin to be implemented – Regulation 2137/85/EEC on the European Economic Interest Grouping and Regulation 2157/2001/EEC on the Statute for a European Company.
The Rome Convention on law applicable to contractual obligations of 1980 covers provisions, aiming to create for the parties to the Convention uniform legal regulation of law applicable to contractual obligations containing international element. As only EU Member-States can be party to it, it was necessary to adopt its principles and provisions in the Bulgarian legislation through its harmonization. That was done with the adopted in February 2003 amendments to the Obligations and Contracts Act, drafting a new part Three – “Law applicable to contracts with international element”. The amendments to the Obligations and Contracts Act grant to contracting parties to contracts with international element equal conditions for contracting and protection of their rights with those in EU Member-States.
The implementation as from the date of accession of the country to EU of Regulation 44/2001 that has replaced the Brussels Convention on jurisdiction and the enforcement of judgments in civil and commercial matters, will lead to speedy and efficient enforcement of judgments rendered in civil and commercial matters within the Community. For the purpose, however, it is necessary to adopt certain changes in Bulgarian procedure legislation before accession, in order to create conditions for the implementation of the Regulation.
With the adoption of the new Accounting Act, in force since January 2000, the Fourth and Seventh Directives requirements in respect of accounting have been implemented in Bulgarian legislation. The Independent Financial Audit Act, in force since January 2002, implements the Eighth EC Directive requirements. Thus conditions are being created for alignment of the national legislation and practice in the field of accounting and audit with European legislation and international practice. The implementation of the International Accounting Standards and the International Audit Standards is also adopted, whereby Bulgaria is brought in line with the leading world practices.
The legal regulation in the field of intellectual property is basically contained in the Act on Copyright and Related Rights, adopted in 1993. The Act is fully harmonized with the provisions of the existing EU Directives and creates an overall contemporary legal framework that acknowledges, guarantees and protects wide range of rights and objects of copyright protection. The Act on Copyright and Related Rights was amended in December 2000 to protect the rights of films and strengthen border control measures against goods infringing copyright. Our country has become a party to all important international conventions and treaties in the field of intellectual property, whereby the protection of copyright holders’ interests is further guaranteed. The National Assembly ratified the WIPO Copyright Treaty and Performance and Phonograms Treaty in January 2001.
Bulgarian legislation provides three ways of copyright and related rights protection: civil, administrative and penal (regulated in the Penal Code).
Legislation in the field of industrial property (patents, trademarks, geographical indications, industrial design, etc.) is broadly brought in compliance with the existing EU legislation requirements. The level of protection granted and the scope of industrial property owners’ rights, and the procedures on granting and exercising of rights are regulated in compliance with the legislation in EU Member-States. New amendments to the existing Bulgarian legislation are being prepared to ensure the direct implementation of Community Regulations as from the date of accession.
In January /July/ 2002 the National Assembly adopted an Act on the Ratification of the European Patent Convention and the Act, revising the European Patent Convention, whereby Bulgaria’s membership in the European Patent Convention was renewed. Thus Bulgarian and foreign inventors are given the opportunity to acquire protection of their inventions on the territory of one or more of the parties to the Convention through a simplified procedure, guaranteeing high degree of security of the patents issued.
A regulation on border control measures for industrial property rights protection was adopted in November 2000.
Bulgaria has accepted the EC proposal in respect of including in the Accession Agreement a specific mechanism for the introduction of supplementary protection certificates for pharmaceuticals and plant protection products, operating at the moment within the European Union.
Another specific agreement that will find place in the Accession Agreement pertains to Community brands stretching on the territory of our country.
|
|
|
|
|
|
|
|
|
|
|
ADMINISTRATIVE INFRASTRUCTURE
Policy responsibility for company law rests with the Ministry of Justice, and the courts are responsible for enforcement. There is an electronic commercial register, which is open to public inspection. The courts have established comparatively uniform practice in this field.
The Ministry of Finance has policy responsibility for accounting law and takes advice from the Institute of Certified Public Accountants, which is responsible for accounting standards. The Institute is competent also for licensing of and quality control over auditors and auditing enterprises.
The Patent Office is the principal authority responsible for protecting industrial property. It processes and registers marks, inventions, utility models and industrial designs applications.
Policy on, coordination and enforcement of intellectual property rights is the responsibility of the Ministry of Culture, which maintains a national copyright database, with support from the Ministry of Interior, the Customs Agency and the courts. The Ministry of Culture issues penal ordinances relating to violations of copyright law, the courts examine intellectual property cases. The Ministry of Interior destroys pirate compact discs and software.
|
|
|
|
|
|
|
|
|
|
|
RECOMMENDATIONS OF THE EUROPEAN COMMISSION
Further efforts and work are necessary in the following areas:
- in respect of company law several of EC Directives in this field are already implemented in Bulgarian legislation; attention should be paid to the need for further alignment with the Third and Sixth Directives on acquisitions, mergers and divisions of companies;
- the capacity of, and co-ordination between, the various bodies responsible for applying the law in the area of intellectual and industrial property rights protection should be strengthened, so that it is enforced in an accurate, timely and transparent way;
- Bulgaria has not introduced sui generis protection of database legislation;
- the action plan, in respect of the implementation of the Regulation, replacing the Brussels Convention on jurisdiction and the enforcement of judgments in civil and commercial matters, should be carried out;
- the legislative work on the implementation of the Rome Convention on law applicable to contractual obligations should be completed.
As a whole Bulgaria is meeting its commitments, undertaken in the negotiations for accession in this field.
|
|
|
|
|
CHAPTER 6 COMPETITION POLICY
|
|
|
|
|
|
LEVEL OF NEGOTIATIONS
Negotiations on Chapter 6 were opened in March 2001 and still continue.
In 2001 and 2002 Bulgaria submitted Additional information to the initial negotiation position, wherein it gave comprehensive reply to the questions of the Member-State. In the field of competition policy Bulgaria has undertaken the following commitments:
- to fully harmonize its legislation in the field of competition;
- to provide the necessary administrative capacity of the bodies in the field of anti-trust and state aid control;
- to implement compliant with the European law-enforcement in the field of anti-trust and state aid control.
Protection of market principles and free competition underlie the development of the Common Market and the prosperity of Community Member-States. Competition policy concentrates on four basic areas:
- prohibition of agreements between undertakings, limiting competition and abuses of dominant position on the market;
- control on mergers and consolidation of undertakings with the purpose of establishing dominant position on the market;
- control over granting of state aid;
- liberalization of monopolistic branches of the economy.
The Act on the Protection of Competition, 1998, contains the basic anti-trust rules of EC and establishes extensive legal framework for protection of competition.
In respect to the enforcement legislation Bulgaria introduced in 2001 block exemptions of certain categories of vertical agreements in compliance with the new EC acquis. Further alignment is needed notably in the areas of the new acquis on horizontal co-operation agreements.
In the field of state aid in June 2002 a State Aid Act entered into force, which provides good procedural framework for state aid control. The Council of Ministers adopted rules for the enforcement of the Act, aiming at the implementation of the acquis communautaire.
|
|
|
|
|
|
|
|
|
|
|
ADMINISTRATIVE INFRASTRUCTURE
The Commission for Protection of Competition is the body responsible for competition protection policy implementation and control. The Commission is a fully independent institution and has extensive powers for competition rules enforcement. The Commission investigates and considers great number of cases and makes decisions therefor. One of the results of the Commission’s activity is the raised public awareness of competition protection policy.
The Commission reorganized its internal structure in 2000, introducing new Organizational Rules and Procedures and increasing the number of its employees.
Ex-ante state aid control is of the competence of the Commission – permission or ban of projects for aid after mandatory notification. The Commission has to make an assessment of all existing schemes for state aid granting, bringing the inconsistent with EU legislation ones in compliance.
Ex-post monitoring and control on state aid is conducted also by the Ministry of Finance, which maintains a list and presents reports. There is cooperation and interaction between the two organizations.
|
|
|
|
|
|
|
|
|
|
|
RECOMMENDATIONS OF THE EUROPEAN COMMISSION
Bulgaria should focus its further efforts on the following areas:
- the Commission for Protection of Competition should develop a more deterrent sanctioning policy, and should give priority to cases concerning the most serious distortions of competition;
- to improve the implementation of state aid rules and to create reliable reputation on state aid legislation enforcement;
- to work to make business circles and judiciary representatives aware of the competition protection rules.
|
|
|
|
|
CHAPTER 7 AGRICULTURE
|
|
|
|
|
|
LEVEL OF NEGOTIATIONS
Negotiations on Chapter 7 Agriculture were opened in March 2002 and still continue.
Bulgaria has made sustainable progress in terms of approximation of legislation and institutional building in this area. Limited though is the progress in legislation enforcement. The partial accreditation of SAPARD can be considered a major success.
The Program of the Government of 2001 for development of the sector determines the main priorities of agriculture and forestry: efficient land and forest resources management and the further development of market structures; improving the competitiveness of the farming and processing sectors, creating an environment favoring export-oriented agriculture; preparation for implementation of EC internal market requirements and the introduction of the common agricultural policy; sustainable rural development, improvement of the standard of life of those employed in agriculture and forestry and in the rural regions.
In the area of land reform, following the adoption of the Cadastre and Property Register Act of April 2000, the Bulgarian Government adopted a program for the establishment of a cadastre and property register. The agricultural cadastre should be ready by 2004. The program for establishment of a property register covers 2001-2015.
Ownership over arable land has been restored. At the end of 2001 91% of forestland and forests were restituted. Cadastre plans for more than 90% of the territory of the country have been made in relation to the restoration of ownership over land and forests.
In May 2000, the negotiations on further liberalization of trade with EU in the agriculture sector were closed with the signing of “a double zero agreement”, in force from 1 July 2000. As a result of the agreement the trade between Bulgaria and EC increased considerably. The most important product groups in Bulgaria’s exports to EC are wines and spirits, meat and oleaginous crops. Meat, fruit and nuts, cotton and essential oils are amongst the main exports of EC to Bulgaria.
EU legislation in the field of agriculture can be divided provisionally in the following groups of issues:
- horizontal issues, including some general conditions, pertaining to all products;
- the Common Agricultural Policy;
- rural development and forestry;
- internal market legislation - veterinary and phytosanitary issues, including food safety.
Horizontal issues include:
- Funding and support of agricultural producers through the European Agricultural Guidance and Guarantee Fund (EAGGF) – payments on the implementation of the Common Agricultural Policy measures are made through a Paying and Intervention Agency;
- Integrated Administration and Control System (IACS). The System is a requisite condition for the implementation of the Common Agricultural Policy and its objective is efficient monitoring and control over EU direct payments;
- trade mechanisms;
- quality policy;
- organic farming;
- state aid.
Following the approval of the Bulgarian National Agricultural and Rural Development Plan by the Commission in October 2000, and the decision to allocate Bulgaria ? 53 million for the year 2000, the Commission decided on the conferral of management of aid to the Bulgarian authorities for three types of measures:
- investments in agricultural holdings;
- improvement in the processing and marketing of agricultural and fisheries products;
- development and diversification of economic activities and alternative income.
Bulgaria has adopted a resolution to establish a Paying and Intervention Agency to the State Agricultural Fund, which will meet EC requirements by the end of 2005. The Agency will unite and manage EC funds - EAGGF and national funds for support of agricultural producers.
National registers are being created on the basis of which an Integrated Administration and Control System will be developed, animal identification and registration system and agricultural land identification system in particular.
Bulgaria has adopted normative documents on control over ecological production, and also subsequent legislation in respect of ecological products preparation, marketing, labeling, inspection and import. A Commission on Ecoagriculture has been established for control bodies’ approval. Its rules of procedure were adopted in February 2002.
Since April 2002 the work on Bulgaria’s participation in the Farm Accountancy Data Network has started. The typology of the agricultural farms has been developed and operational know-how has been provided.
The Common Agricultural Policy requires the implementation of the Common Market Organizations mechanisms in the different agricultural sectors. Their role is to provide support for the markets through suitable mechanisms in accordance with the specificity of different products. Common Market Organizations are financed from EAGGF. Before accession the measures the country undertakes for implementation of the Common Agricultural Policy mechanisms will be financed by the state budget.
Studies have been completed for the alignment and implementation of Common Market Organizations in respect of sectors: viticulture and wine production, meat and fisheries production. Similar studies have been carried out in the sectors: cereals, fruit and vegetables and milk and diary products. Studies cover legal, institutional and economic aspects and include proposals on how to introduce Common Market Organizations in Bulgaria.
Progress has been made in respect of alignment of agro-statistics and statistical reporting procedures of main yields and land use in compliance with EU requirements.
Rural development and forestry aim at strengthening and reorganization of agricultural and forestry structures, conversion of agricultural production and development of supplementary activities for farmers, support the creation of high standard of life of farmers, environment preservation. This policy includes measures on: investments in agricultural holdings; young farmers promotion; training; early retirement; support of rural regions with ecological problems; agroecology; improvement, processing and marketing of agricultural products; forestry; local development initiatives /LEADER/.
Rural development is among the key priorities of the Government in the area of agriculture. In the process of development is a National Program on Agriculture and Environment, wherein different institutions take part.
The practical experience with the SAPARD Program contributes to the building of administrative capacity and prepares the implementation of the legislation and measures for rural development of the community. A Code of Good Agricultural Practices has been prepared that determines the minimum obligations for farmers to be eligible for SAPARD measures for practices and activities development that preserve environment.
The forestry structural reform is completed. In 2002 the Minister of Agriculture and the Minister of Interior signed a Memorandum, setting the most urgent measures against forest fires.
EU legislation in the field of internal market has the aim to protect the health of people, animals and environment in the production, movement and sale of agricultural products within the EU market. The legislation comprises veterinary and phytosanitary measures. The adoption of these measures is a key priority for Bulgaria because of the geographical location of the country that will be the external veterinary and phytosanitary border of the enlarged EU.
In the veterinary sector the Act on Veterinary Activities, 1999 and the regulations pertaining to the minimum requirements for animal welfare, control on African Swine Fever, veterinary sanitary measures for prevention and veterinary requirements and control on animal and fishery products wholesale market, as well as veterinary sanitary and hygienic requirements towards factory vessels for the processing of fish and fishery products have been adopted.
In September 2000 the Animal-Breeding Act, laying down the basis for continuous development of stock-breeding, efficient animal breeding and preservation and maintenance of the national geno-bank, and serving also as a legal framework for implementation of EU standards regarding acknowledgement of stock-breeding associations, which create or keep stock records of pure-bred breeding animals, was enforced.
Progress has been made in animal identification and registration. Identification of bovine animals has been completed. In April 2002 the work on ear-tagging ovine and caprine animals (goats and sheep) began. A computerised system for animal identification and registration of animal breeding establishments is being developed, as well as a computerised network connecting veterinary bodies/ANIMO/.
The National Veterinary Service (NVS) has developed surveillance and monitoring programs for control of animal diseases. The Animal Disease Notification System (ADNS) is in operation since the end of 2001. Decrees on prevention and control of a number of diseases have been adopted.
Bulgaria has started the implementation of an integrated system for border veterinary control and the construction of a border inspection post at Kapitan Andreevo, on the border with Turkey.
A number of regulations on border inspections, on monitoring and control measures with regard to residual substances in live animals and products of animal origin, and on placing of meat on the market have been adopted.
In 2000 the National Veterinary Service carried out a study on all meat processing enterprises, to determine their consistence with current legislation and to set deadlines for meeting the requirements.
The National Veterinary Service has also undertaken measures for improving epidemiological control of exotic diseases by preparing annual prevention programs that envisage monitoring programs for certain exotic diseases on the border with Turkey, diagnostic tests for certain diseases and mandatory vaccination.
In 2001 Bulgaria began epidemiological monitoring for bovine spongiform encephalopathy. Laboratories for diagnosing and quick tests have been adapted and equipped.
In March 2002, a Regulation on collecting and processing of animal waste and by-products was adopted.
The Nutrition Act, adopted in September 1999, aims at preserving and improving animal productivity, and ensuring the use of quality feedingstuffs and imposing the legal framework for other standards implementation in Bulgarian legislation. This Act sets the conditions for production, circulation, import, export and use of feed materials and control on products intended for animal nutrition.
As regards the phytosanitary sector, a Law on Seeds and Planting Material was adopted in October 2000 aiming to create a legislative framework for the introduction of the seeds and planting material acquis and for the testing and inscription of varieties into the official plant variety list.
With regard to the preservation of plant species diversity, a Decree on the official varieties list was adopted in March 2001. A number of provisions pertaining to the control on plant diseases were also adopted in the field of plant protection. At the end of March 2002 amendments and supplements to the Law on Seeds and Planting Material were adopted with the aim of alignment with EC Directives.
In November 2001 the amendments to the Plant Protection Act introduced the general legal framework for use of plant protection products and established the legal basis for adoption of rules containing detailed provisions. These amendments in particular introduced a licensing regime for testing, import and trade and control system for the use, storage and movement of these products.
Bulgaria has implemented in its legislation the Directives on the control on potato diseases and has made good progress in the adoption of laws and bylaws on phytosanitary control. Schemes guaranteeing the quality of phytosanitary control are being developed and inspectors have been trained for border inspections.
As regards food safety Bulgaria adopted a Food Safety Strategy in June 2001. A number of bylaws were also adopted. The control carried out by the NVS and its regional offices include laboratory analysis of food safety. However, further upgrading of food processing establishments is needed.
|
|
|
|
|
|
|
|
|
|
|
ADMINISTRATIVE INFRASTRUCTURE
The Ministry of Agriculture and Forestry develops the government policy in respect of agriculture and forestry. The Ministry is responsible also for the legislation harmonization and implementation process and for the negotiations with the European Community on Chapter 7. A number of services and executive agencies are established at the Ministry, responsible for the control on the legislation implementation. Trade chambers, producers associations and other non-governmental private organizations in the different sectors revive and activate their work.
A National Consultative Service on Agriculture has been established to the Ministry with headquarters in Sofia and 28 regional representative offices. The Service renders support, expertise and consultations to farmers and ensures close connection between research, agricultural policy tasks and agricultural activities.
The National Veterinary Service monitors for the observation of the Veterinary Activities Act and the bylaws requirements and standards adopted. A Department for animal identification and registration has been established at the National Veterinary Service. An Animal Disease Notification System (ADNS) is also in operation.
The NVS adopted its statute in February 2001 which determines its staffing and organization. It has 3,090 personnel, including 1,515 veterinarians. The NVS has a general directorate and subordinate structures for animal health, public health control of animal products, border veterinary control and animal breeding and laboratory control. Its public health control units carry out inspections and control through regional inspectorates, with the support of laboratories within the Regional Veterinary Services. These cover public health controls on raw materials and products of animal origin in production, slaughter and processing establishments, as well as on final products placed on the market.
A common policy for inspections at the border posts and plan for modernization of the border post at Kapitan Andreevo have been approved. There is strict control on illegal import of animal products at the border posts. Detailed surveillance programs on some diseases have been implemented within a 10-kilometer zone on the border with Turkey. Bulgaria has also adopted measures on general requirements for veterinary checks on import and transit of live animals. There are currently 35 functioning veterinary border inspection posts, with 263 employees, including 149 veterinarians. Staff training on registration, control and trade is still required. Bulgaria has indicated that 10 locations will become long-term border inspection posts with third countries.
A General Directorate on Feed Control has been established, which will exercise control over products and substances intended for animal nutrition. A register of producers and traders is maintained. In addition, regulations were adopted on feed additives, circulation of feed materials and control on products intended for animal nutrition.
In the cereal sector the control on the implementation of the legislation is exercised by a National Cereal Service. A Food Control Directorate has been established to the National Cereal Service, which includes seven regional offices and laboratories, three of which have been accredited.
An Executive Vine and Wine Agency and National Vine and Wine Chamber have been established. The role of the Agency is to ensure that laws related to wine production and viticulture are being observed.
Concerning fruit and vegetables, in April 2001 Bulgaria created an administrative structure to carry out conformity checks and quality control of fresh fruit and vegetables and to participate in the process of harmonization with EC legislation. In July 2001, a decree on the conditions and procedures for recognition of producer organizations in fruits and vegetables as well as tobacco was adopted.
The National Service for Plant Protection, Quarantine and Agrochemistry covers administrative needs in line with acquis requirements in the area of plant health.
A Varieties Testing, Seed Inspection and Control Executive Agency has been established. The Agency coordinates a Directorate on Varieties Control (testing of new plant varieties and entering them in the National Varieties List) and Seed on the Field Inspection and Control Directorate (seed certification and trade rules introduction).
The structures responsible for agro-statistics preparation report to the Ministry of Agriculture and Forestry and they should be supported.
The institutions responsible for the Forestry Act implementation are in place: National Forestry Council and Bulgarian Forestry Chamber. The National Forestry Council exercises state forestry management. The Bulgarian Forestry Chamber renders practical assistance and trains owners of forests in forest management.
Training is required for the industry to set up its own control systems and compliance with EC regulations.
|
|
|
|
|
|
|
|
|
|
|
RECOMMENDATIONS OF THE EUROPEAN COMMISSION
Further efforts are required in respect of:
- ensuring the functioning of a transparent land market;
- further adjustment of the agricultural policy to conform to the Common Agricultural Policy requirements;
- development of administrative capacity required for management and implementation of the acquis communautaire;
- enforcement of animal veterinary/hygiene and epidemiological control standards;
- upgrading of food processing establishments.
|
|
|
|
|
CHAPTER 8 FISHERIES
|
|
|
|
|
|
LEVEL OF NEGOTIATIONS
Chapter 8 Fisheries was opened for negotiations in March 2001 and provisionally closed in May 2001.
In its position on Chapter 8 Bulgaria has declared that it accepts EU legislation in the field of fisheries and will implement it after accession, while requesting the following:
- to avail of the opportunities and measures of the Financial Instrument for Fisheries Guidance (FIFG) for granting structural aid for renovation of the fishing fleet after accession (without increasing its fishing capacity), for modernization of port facilities, aquaculture development, fish and fish products processing and marketing, socio-economic measures;
- to preserve its right to apply more restrictive fishing technical measures in respect of bottom trawling and dragging within the 12-mile territorial zone in Black Sea;
- measures to be included in EU legislation and to be implemented for preservation of turbot and sturgeon species in the Black Sea and the Danube River.
Bulgaria's task in the pre-accession period is to harmonize the legislation regulating fisheries and to build up administrative capacity and readiness for implementation of the Common Fisheries Policy as from the moment of the country's accession.
|
|
|
|
|
|
|
|
|
|
|
HARMONIZATION PROCESS
The European Union Common Fisheries Policy (CFP) is provisionally divided into the following:
- resource management, inspection and control;
- common market policy;
- structural actions;
- international fisheries relations.
Resource management, inspection and control covers the following activities and systems: fixing and management of total allowable catches by types and categories (weight/size) of fish, fishing quotas and effort, licenses, implementation of technical measures; inspections and control of fishing activities in national waters as well as fishing activities exercised by national fishing vessels outside European Community waters; development and maintenance of equipment to ensure control, such as surveillance vessels, aircraft, land vehicles; efficient application of the satellite surveillance system for the fishing vessels concerned; database allowing cross-checking of catch data with other sources and that can connect with that of the European Commission.
Common market policy regulates the control on the implementation by the Member States of common marketing standards for fisheries products and aquacultures, as well as withdrawal of quantities from the market; collection and transmission of market and reference price information; recognition conditions for producers' organizations in fisheries and aquacultures; intervention procedures and mechanisms in the sector.
Structural actions - (including fleet registration): implementation and management of the structural policy for fisheries and aquaculture, in particular structural programs co-financed by the Financial Instrument for Fisheries Guidance (FIFG), and the multi-annual guidance programs (MAGPs); measurement of fishing vessels; establishment of a fishing vessel register from which data are regularly communicated to the Community registers.
International fisheries relations - EU has the exclusive competence to represent Member States under agreements with non-member countries and international conventions in relation to use and enjoyment of fisheries resources and rights. Th | |
