The Council of the European Union is set to adopt a position approving additional Explanatory Notes to Articles 19, 22 and 27 of Annex II of the EU-Central America Association Agreement, according to a proposal published on 6 July 2026. The Notes will provide further guidance on invoice declarations, correction of invoice declarations after exportation, and handling of slight discrepancies or obvious formal errors in proof of origin. The decision is scheduled for adoption at the Council meeting on 17 July 2026.
The proposal builds on the EU-Central America Association Council Decision No 2/2020 of 14 December 2020, which introduced Explanatory Notes to Articles 15, 16, 19, 20 and 30 of Annex II. The new Notes extend coverage to additional provisions, aiming to clarify procedures for all parties to the Agreement. The Association Agreement has been provisionally applied since 1 August 2013 with Honduras, Nicaragua and Panama; since 1 October 2013 with Costa Rica and El Salvador; and since 1 December 2013 with Guatemala.
The EU position is based on Article 207(4) TFEU (common commercial policy) in conjunction with Article 218(9) TFEU. The Council Decision will authorise the EU to support the draft decision within the EU-Central America Association Council, with minor changes allowed without further Council approval.
Stakeholder impact The additional Explanatory Notes primarily affect EU exporters and importers trading with Central American countries, as well as customs authorities in both regions. For businesses, the Notes reduce uncertainty in applying rules of origin, particularly regarding invoice declarations and correction procedures, lowering administrative burdens and potential disputes. Customs authorities benefit from clearer guidance, facilitating consistent enforcement. However, the changes are incremental and do not alter substantive origin criteria, limiting the overall impact. The legal basis under common commercial policy ensures the EU acts within its exclusive competence, with no direct implications for national administrations beyond implementation.
Institutional follow-up Following Council adoption on 17 July 2026, the EU will present the position at the next EU-Central America Association Council meeting. The Association Council is expected to adopt the amending Decision, which will then apply to all parties. No further EU legislative steps are required.