The European Commission has published a proposal for a Council Decision on the position to be taken by the European Union within the EU-Central America Association Council, aiming to adopt additional Explanatory Notes to Articles 19, 22 and 27 of Annex II of the Association Agreement. The proposal, dated 3 July 2026 and bearing reference COM(2026)338, was prepared by the Commission's Directorate-General for Taxation and Customs Union (TAXUD). The new notes would amend Decision No 2/2020 of the Association Council of 14 December 2020, which already introduced Explanatory Notes to Articles 15, 16, 19, 20 and 30 of the same Annex.
The proposed Explanatory Notes provide guidance on three specific aspects of the rules of origin under the agreement: the invoice declaration, the correction of an invoice declaration after exportation, and the treatment of slight discrepancies or obvious formal errors in the proof of origin that do not affect its validity. These clarifications aim to facilitate trade by reducing administrative burdens and uncertainties for exporters and customs authorities.
The EU-Central America 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 Association Council, which oversees the implementation of the Agreement, is the body that will adopt the decision incorporating the new Explanatory Notes.
The legal basis for the EU position is Article 207(4) of the Treaty on the Functioning of the European Union (common commercial policy) in conjunction with Article 218(9) TFEU, which governs the adoption of positions in bodies set up by international agreements. The Commission's proposal notes that the EU position is based on the draft decision contained in the Annex to the proposal, and that minor changes may be agreed without requiring a further Council decision. Once adopted by the Association Council, the act will be binding under international law pursuant to Article 6 of the Agreement and will be published in the Official Journal of the European Union.
The proposal now awaits consideration by the Council of the European Union, which must adopt a formal decision authorising the EU position. The European Parliament is not directly involved in this procedure, as the decision concerns the implementation of an existing agreement under Article 218(9) TFEU. Stakeholders affected include EU exporters to Central America, customs authorities in EU member states and Central American countries, and businesses relying on preferential tariff treatment under the agreement. The new notes are expected to reduce disputes over origin documentation and streamline customs procedures, benefiting trade flows. However, the changes are technical in nature and do not alter the substantive rules of origin or tariff preferences.