In recent days, the European Commission has responded to the many questions from Member States on the draft Industrial Accelerator Act (IAA), in particular on Chapter III, concerning the strengthening of the Union’s strategic industrial value chains.
This chapter of the IAA requires contracting authorities and entities to apply the criteria of ‘Union origin’ and/or ‘low carbon emissions’ when purchasing certain products from energy-intensive industries and net-zero technology sectors. These requirements also extend to public support schemes.
The IAA defines ‘Union origin’ by reference to the non-preferential rules of origin laid down in the Union Customs Code. It also specifies how origin applies to the different forms of public intervention.
In a document dated 10 June, it thus seeks to clarify around 10 aspects, notably concerning rules of origin, self-certification and the scope chosen.
“Why are the technologies most essential to economic security not included in the IAA?”, several countries asked. “The impact assessment explains that the initiative focuses on energy-intensive industries, the automotive sector and clean technologies, where the economic case for decarbonisation and industrial resilience is strongest. Consequently, the proposal adopts a selective and gradual approach, rather than seeking to cover a wider range of technologies”.
Other critical technologies will be covered, where appropriate, by forthcoming initiatives, notably the regulation on biotechnology, the Chips Act 2.0 and the regulation on the development of cloud and AI, the Commission replies.
It also clarifies the exclusion of third countries from the scope of application of content equivalence. “These criteria include: (i) third country has failed to provide national treatment related to Union products or entities under the agreements referred to in paragraph 1 in relation to any of the sectors listed in Annex I; (ii) such exclusion is justified to avoid dependencies or any other developments that may threaten the security of supply in the Union of the products in question; and (iii) such exclusion is justified under any other exception under the applicable agreement”.
But the proposal does not define specific sub-criteria for assessing these conditions, nor does it establish a quantitative threshold for determining from what point the problem is sufficiently serious, the Commission also acknowledges.
“This assessment will require a case-by-case analysis based on the applicable legal framework and practices in the third country concerned”, the Commission further explains.
In order to avoid an excessive administrative burden for economic operators taking part in public procurement procedures falling within the scope of the IAA, the verification system will rely on a self-declaration, which may be checked at a later stage, once the contract has been awarded. “The self-declaration principle will be underpinned by supporting documentation and information required under the ESPR and CPR frameworks, notably through the Digital Product Passport for substantiating compliance with low-carbon requirements”.
Link to the document: https://aeur.eu/f/mdn (Original version in French by Solenn Paulic)