3. The Republic of Moldova shall inform the Union when it considers that it has completed the approximation provided for in any of the Chapters referred to in paragraph 1.
Article 408. Repeal of Inconsistent Domestic Law
As part of the approximation, the Republic of Moldova shall withdraw provisions of its domestic law or abolish domestic practices that are inconsistent with Union law or with its domestic law approximated to the Union law in the trade-related areas of Title V (Trade and Trade-related Matters) of this Agreement.
Article 409. Assessment of Approximation In Trade-related Areas
1. The assessment of approximation by the Union referred to in Title V (Trade and Trade-related Matters) of this Agreement shall start after the Republic of Moldova has informed the Union pursuant to Article 407(3) of this Agreement, unless otherwise provided for in Chapters 4 and 8 of Title V (Trade and Trade-related Matters) of this Agreement.
2. The Union shall assess whether the legislation of the Republic of Moldova has been approximated to Union law and whether it is implemented and enforced effectively. The Republic of Moldova shall provide the Union with all necessary information to enable such assessment, in a language to be mutually agreed.
3. The assessment by the Union pursuant to paragraph 2 shall take into account the existence and operation of relevant infrastructure, bodies and procedures in the Republic of Moldova necessary for the effective implementation and enforcement of the legislation of the Republic of Moldova.
4. The assessment by the Union pursuant to paragraph 2 shall take account of the existence of any domestic provisions or practices that are inconsistent with Union law or with the domestic law approximated to the Union law in the trade-related areas of Title V (Trade and Trade-related Matters) of this Agreement.
5. The Union shall inform the Republic of Moldova within 12 months from the start of the assessment referred to in paragraph 1 about the results of its assessment, unless otherwise provided. The Parties shall discuss the assessment in the Association Committee in Trade configuration, as set out in Article 438(4) of this Agreement, or its relevant Sub- Committees, in accordance with Article 452 of this Agreement, unless otherwise provided.
Article 410. Developments Relevant to Approximation
1. The Republic of Moldova shall ensure the effective implementation of the approximated domestic law and under- take any action necessary to reflect the developments in Union law in its domestic law in the trade-related areas of Title V (Trade and Trade-related Matters) of this Agreement.
2. The Republic of Moldova shall refrain from any action that would undermine the objective or the outcome of approximation under Title V (Trade and Trade-related Matters) of this Agreement.
3. The Union shall inform the Republic of Moldova about any final European Commission proposals to adopt or amend Union law relevant to approximation obligations incumbent on the Republic of Moldova under Title V (Trade and Trade-related Matters) of this Agreement.
4. The Republic of Moldova shall inform the Union of legislative proposals and measures, including domestic practices, which may affect the fulfilment of its obligations under Title V (Trade and Trade-related Matters) of this Agreement.
5. Upon request, the Parties shall discuss the impact of any proposals or actions referred to in paragraphs 3 and 4 of this Article on the legislation of the Republic of Moldova or on the compliance with the obligations under Title V (Trade and Trade-related Matters) of this Agreement.
6. If, after an assessment has been made under Article 409 of this Agreement, the Republic of Moldova modifies its domestic law to take account of changes in Chapters 3, 4, 5, 6, 8 and 10 of Title V (Trade and Trade-related Matters) of this Agreement, a new assessment by the Union shall be conducted pursuant to Article 409 of this Agreement. If the Republic of Moldova takes any other action that could have an effect on the implementation and enforcement of the approximated domestic law, a new assessment by the Union may be conducted pursuant to Article 409 of this Agreement.
7. If the circumstances so require, particular benefits, accorded by the Union on the basis of an assessment that the legislation of the Republic of Moldova has been approximated to Union law and implemented and enforced effectively, may be temporarily suspended in accordance with paragraph 8, if the Republic of Moldova does not approximate its domestic law to take account of changes to Title V (Trade and Trade-related Matters) of this Agreement, if the assessment referred to in paragraph 6 shows that the legislation of the Republic of Moldova is no longer approximated to the Union law, or if the Association Council established by Article 434 of this Agreement fails to take a decision to update Title V (Trade and Trade-related Matters) of this Agreement in accordance with developments in Union law.
8. If the Union intends to implement any such suspension, it shall promptly notify the Republic of Moldova. The Republic of Moldova may refer the matter to the Association Committee in Trade configuration, as set out in Article 438(4) of this Agreement, within one month from the notification, providing a statement of reasons in writing. The Association Committee in Trade configuration shall discuss the matter within three months from the referral. If the matter is not referred to the Association Committee in Trade configuration, or if it cannot be resolved by that Committee within three months from the referral, the Union may implement the suspension of benefits. The suspension shall be promptly lifted, if the Association Committee in Trade configuration subsequently resolves the matter.
Article 411. Exchange of Information
The exchange of information in relation to approximation under Title V (Trade and Trade-related Matters) shall take place through the contact points established in Article 358(1) of this Agreement.
Article 412. General Provision
1. The Association Committee in Trade configuration, as set out in Article 438(4) of this Agreement, shall adopt pro- cedures to facilitate the assessment of the approximation and to ensure the effective exchange of information pertaining to approximation, including the form, content and language of the exchanged information.
2. Any reference to a specific Union act in Title V (Trade and Trade-related Matters) of this Agreement covers amend- ments, supplements and replacement measures published in the Official Journal of the European Union before 29 November 2013.
3. The provisions in Chapters 3, 4, 5, 6, 8 and 10 of Title V (Trade and Trade-related Matters) of this Agreement shall prevail over the provisions set out in this Chapter to the extent that there is a conflict.
4. Claims of a violation of the provisions of this Chapter shall not be pursued under Chapter 14 (Dispute Settlement) of Title V (Trade and Trade-related Matters) of this Agreement.
Title VI. FINANCIAL ASSISTANCE, AND ANTI-FRAUD AND CONTROL PROVISIONS
Chapter 1. Financial Assistance
Article 413.
The Republic of Moldova shall benefit from financial assistance through the relevant EU funding mechanisms and instru- ments. The Republic of Moldova may also benefit from loans by the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and other international financial institutions. The financial assistance will contribute to achieving the objectives of this Agreement and will be provided in accordance with this Chapter.
Article 414.
The main principles of financial assistance shall be set out in the relevant Regulations on EU Financial Instruments.
Article 415.
The priority areas of the EU financial assistance agreed by the Parties shall be laid down in annual action programmes based on multi-annual frameworks which reflect agreed policy priorities. The amounts of assistance established in those programmes shall take into account the Republic of Moldova's needs, sector capacities and progress with reforms, parti- cularly in areas covered by this Agreement.
Article 416.
In order to permit optimum use of the resources available, the Parties shall endeavour to ensure that EU assistance is implemented in close cooperation and coordination with other donor countries, donor organisations and international financial institutions, and in line with international principles of aid effectiveness.
Article 417.
The fundamental legal, administrative and technical basis of financial assistance shall be established within the framework of relevant agreements between the Parties.
Article 418.
The Association Council shall be informed of the progress and implementation of financial assistance and its impact upon pursuing the objectives of this Agreement. To that end, the relevant bodies of the Parties shall provide appropriate monitoring and evaluation information on a mutual and permanent basis.
Article 419.
The Parties shall implement assistance in accordance with the principles of sound financial management and cooperate in the protection of the financial interests of the EU and of the Republic of Moldova in accordance with Chapter 2 (Anti-Fraud and Control Provisions) of this Title.
Chapter 2. Anti-fraud and Control Provisions
Article 420. Definitions
For the purposes of this Chapter, the definitions set out in Protocol IV of this Agreement shall apply.
Article 421. Scope
This Chapter shall be applicable to any further agreement or financing instrument to be concluded between the Parties, and any other EU financing instrument to which the Republic of Moldova may be associated, without prejudice to any other additional clauses covering audits, on-the-spot checks, inspections, controls, and anti-fraud measures, including those conducted by the European Anti-Fraud Office (OLAF) and the European Court of Auditors (ECA).
Article 422. Measures to Prevent and Fight Fraud, Corruption and Any other Illegal Activities
The Parties shall take effective measures to prevent and fight fraud, corruption and any other illegal activities, inter alia, by means of mutual administrative assistance and mutual legal assistance in the fields covered by this Agreement.
Article 423. Exchange of Information and Further Cooperation at Operational Level
1. For the purposes of proper implementation of this Chapter, the competent EU authorities and the competent authorities of the Republic of Moldova shall regularly exchange information and, at the request of one of the Parties, conduct consultations.
2. OLAF may agree with its counterparts of the Republic of Moldova on further cooperation in the field of anti-fraud, including operational arrangements with the authorities of the Republic of Moldova.
3. For the transfer and processing of personal data, Article 13 of Title III (Freedom, Security and Justice) of this Agreement shall apply.
Article 424. Prevention of Irregularities, Fraud and Corruption
1. The authorities of the Republic of Moldova shall check regularly that the operations financed with EU funds have been properly implemented. They shall take any appropriate measure to prevent and remedy irregularities and fraud.
2. The authorities of the Republic of Moldova shall take any appropriate measure to prevent and remedy any active or passive corruption practices and exclude conflict of interest at any stage of the procedures related to the implementation of EU funds.
3. The authorities of the Republic of Moldova shall inform the European Commission of any prevention measure taken.
4. The European Commission shall be entitled to obtain evidence in accordance with Article 56 of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the Euro-pean Communities.
5. The European Commission shall also be entitled to obtain evidence that procedures on procurement and grants satisfy the principles of transparency, equal treatment and non-discrimination, prevent any conflict of interest, offer guarantees equivalent to internationally accepted standards and ensure compliance with the provisions of sound financial management.
6. To that end, the competent authorities of the Republic of Moldova shall provide the European Commission with any information related to the implementation of EU funds and shall inform it without delay of any substantial change in their procedures or systems.
Article 425. Investigation and Prosecution
The authorities of the Republic of Moldova shall ensure investigation and prosecution of suspected and actual cases of fraud, corruption or any other irregularity, including conflict of interest, following national or EU controls. Where appropriate, OLAF may assist the competent authorities of the Republic of Moldova in that task.
Article 426. Communication of Fraud, Corruption and Irregularities
1. The authorities of the Republic of Moldova shall transmit to the European Commission without delay any information which has come to their notice on suspected or actual cases of fraud, corruption or any other irregularity, including conflict of interest, in connection with the implementation of EU funds. In case of suspicion of fraud or corruption, OLAF shall also be informed.
2. The authorities of the Republic of Moldova shall also report on all measures taken in connection with facts communicated under this Article. Should there be no suspected or actual cases of fraud, corruption, or any other irregularity to report, the authorities of the Republic of Moldova shall inform the European Commission following the end of each calendar year.
Article 427. Audits
1. The European Commission and the ECA are entitled to examine whether all expenditure related to the implementation of EU funds has been incurred in a lawful and regular manner and whether the financial management has been sound.
2. Audits shall be carried out on the basis both of commitments undertaken and payments made. They shall be based on records and, if necessary, performed on-the-spot on the premises of any entity which manages or takes part in the implementation of EU funds. The audits may be carried out before the closure of the accounts for the financial year in question and for a period of five years from the date of payment of the balance.
3. European Commission inspectors or other persons mandated by the European Commission or the ECA may conduct documentary or on-the-spot checks and audits on the premises of any entity which manages or takes part in the implementation of EU funds and of their subcontractors in the Republic of Moldova.
4. The European Commission or other persons mandated by the European Commission or the ECA shall have appropriate access to sites, works and documents and to all the information required in order to carry out such audits, including in electronic form. That right of access should be communicated to all public institutions of the Republic of Moldova and shall be stated explicitly in the contracts concluded to implement the instruments referred to in this Agreement.
5. The checks and audits referred to in this Article are applicable to all contractors and subcontractors who have received EU funds directly or indirectly. In the performance of their tasks, the ECA and the audit bodies of the Republic of Moldova shall cooperate in a spirit of trust while maintaining their independence.
Article 428. On-the-spot Checks
1. Within the framework of this Agreement, OLAF shall be authorised to carry out on-the-spot checks and inspections in order to protect the EU's financial interests against fraud and other irregularities in accordance with the provisions of Council Regulation (EC, Euratom) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities.
2. On-the-spot checks and inspections shall be prepared and conducted by OLAF in close cooperation with the competent authorities of the Republic of Moldova.
3. The authorities of the Republic of Moldova shall be notified in good time of the object, purpose and legal basis of the checks and inspections, so that they can provide all the requisite help. To that end, the officials of the competent authorities of the Republic of Moldova may participate in the on-the-spot checks and inspections.
4. If the authorities of the Republic of Moldova concerned express their interest, the on-the-spot checks and inspections may be carried out jointly by OLAF and them.
5. Where an economic operator resists an on-the-spot check or inspection, the authorities of the Republic of Moldova shall give OLAF the assistance it needs to allow it to discharge its duty in carrying out an on-the-spot check or inspection.
Article 429. Administrative Measures and Penalties
Administrative measures and penalties may be imposed by the European Commission in accordance with Regulations (EC, Euratom) No 1605/2002 and (EC, Euratom) No 2342/2002 of 23 December 2002 and with Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests.
Article 430. Recovery
1. The authorities of the Republic of Moldova shall take any appropriate measure to recover EU funds unduly paid.
2. Where the authorities of the Republic of Moldova are entrusted with the implementation of EU funds the European Commission is entitled to recover EU funds unduly paid, in particular through financial corrections. The European Commission shall take into account the measures taken by the authorities of the Republic of Moldova to prevent the loss of the EU funds concerned.
3. The European Commission shall consult with the Republic of Moldova on the matter before taking any decision on recovery. Disputes on recovery will be discussed in the Association Council.
4. Where the European Commission implements EU funds directly or indirectly by entrusting budget implementation tasks to third parties, a decision taken by the European Commission within the scope of this Title of this Agreement which imposes a pecuniary obligation on persons other than States, shall be enforceable in the Republic of Moldova in accordance with the following principles:
(a) enforcement shall be governed by the rules of civil procedure in force in the Republic of Moldova. The order for the enforcement of the decision shall be appended to it, without any formality other than verification of the authenticity of the decision, by the national authority which the government of the Republic of Moldova shall designate for that purpose and shall make known to the European Commission and to the Court of Justice of the European Union;
(b) when the formalities referred to in point (a) have been completed on application by the Party concerned, the latter may proceed to enforcement in accordance with the legislation of the Republic of Moldova, by bringing the matter directly before the competent authority;
(c) enforcement may be suspended only by a decision of the Court of Justice of the European Union. However, the courts of the Republic of Moldova concerned shall have jurisdiction over complaints that enforcement is being carried out in an irregular manner.
5. The enforcement order shall be issued, without any further control other than verification of the authenticity of the act, by the authorities designated by the government of the Republic of Moldova. Enforcement shall take place in accordance with the rules of procedure of the Republic of Moldova. The legality of the enforcement decision shall be subject to control by the Court of Justice of the European Union.
6. Judgments given by the Court of Justice of the European Union pursuant to an arbitration clause in a contract within the scope of this Chapter shall be enforceable on the same terms.
Article 431. Confidentiality
Information communicated or acquired in any form under this Chapter shall be covered by professional secrecy and protected in the same way as similar information is protected by the law of the Republic of Moldova and by the corre- sponding provisions applicable to the EU institutions. Such information may not be communicated to persons, other than those in the EU institutions, in the Member States or in the Republic of Moldova, whose functions require them to know it, nor may it be used for purposes other than to ensure effective protection of the Parties' financial interests.
Article 432.
The Republic of Moldova shall carry out approximation of its legislation to the EU acts and international instruments referred to in Annex XXXV to this Agreement according to the provisions of that Annex.
Title VII. INSTITUTIONAL, GENERAL AND FINAL PROVISIONS
Chapter 1. Institutional Framework
Article 433.
Political and policy dialogue, including on issues related to sectoral cooperation between the Parties, may take place at any level. Periodic high-level policy dialogue shall take place within the Association Council established by Article 434 of this Agreement and within the framework of regular meetings between representatives of the Parties at ministerial level by mutual agreement.
Article 434.
1. An Association Council is hereby established. It shall supervise and monitor the application and implementation of this Agreement and periodically review the functioning of this Agreement in the light of its objectives.
2. The Association Council shall meet at ministerial level and at regular intervals, at least once a year, and when circumstances require. The Association Council may meet in any configuration, by mutual agreement.
3. In addition to supervising and monitoring the application and implementation of this Agreement, the Association Council shall examine any major issues arising within the framework of this Agreement, and any other bilateral or inter- national issues of mutual interest.
Article 435.
1. The Association Council shall consist of members of the Council of the European Union and members of the Euro- pean Commission, on the one hand, and of members of the Government of the Republic of Moldova, on the other.
2. The Association Council shall establish its own rules of procedure.
3. The Association Council shall be chaired in turn by a representative of the Union and a representative of the Republic of Moldova.
4. Where appropriate, and by mutual agreement, representatives of other bodies may take part as observers in the work of the Association Council.
Article 436.
1. For the purpose of attaining the objectives of this Agreement, the Association Council shall have the power to take decisions within the scope of this Agreement. Such decisions shall be binding upon the Parties, which shall take appropriate measures, including, if necessary, action of bodies established under this Agreement, to implement the decisions taken. The Association Council may also make recommendations. It shall adopt its decisions and recommendations by agreement between the Parties following completion of the respective internal procedures.
2. In line with the objective of gradual approximation of the legislation of the Republic of Moldova to that of the Union, as laid down in this Agreement, the Association Council will be a forum for exchange of information on the legislation of the EU and of the Republic of Moldova, both under preparation and in force, and on implementation, enforcement and compliance measures.
3. In accordance with paragraph 1 of this Article, the Association Council shall have the power to update or amend the Annexes to this Agreement without prejudice to any specific provisions under Title V (Trade and Trade-related Matters) of this Agreement.
Article 437.
1. An Association Committee is hereby established. It shall assist the Association Council in the performance of its duties.
2. The Association Committee shall be composed of representatives of the Parties, in principle, at senior civil servant level.
3. The Association Committee shall be chaired in turn by a representative of the Union and a representative of the Republic of Moldova.
Article 438.
1. The Association Council shall determine in its rules of procedure the duties and functioning of the Association Committee, whose responsibilities shall include the preparation of meetings of the Association Council. The Association Committee shall meet at least once a year.
2. The Association Council may delegate to the Association Committee any of its powers, including the power to take binding decisions.
3. The Association Committee shall have the power to adopt decisions in the cases provided for in this Agreement and in areas in which the Association Council has delegated powers to it. Those decisions shall be binding upon the Parties, which shall take appropriate measures to implement them. The Association Committee shall adopt its decisions by agreement between the Parties.
4. The Association Committee shall meet in a specific configuration to address all issues related to Title V (Trade and Trade-related Matters) of this Agreement. The Association Committee shall meet in that configuration at least once a year.
Article 439.
1. The Association Committee shall be assisted by sub-committees established under this Agreement.
2. The Association Council may decide to set up any special committee or body in specific areas necessary for the implementation of this Agreement, and shall determine the composition, duties and functioning of such special committees or bodies. In addition, such special committees or bodies may hold discussions on any matter that they consider relevant without prejudice to any of the specific provisions of Title V (Trade and Trade-related Matters) of this Agreement.
3. The Association Committee may also create sub-committees, including to take stock of progress achieved in the regular dialogues referred to in this Agreement.
4. The sub-committees shall have the powers to take decisions in the cases provided for in this Agreement. They shall report on their activities to the Association Committee regularly, as required.
5. The sub-committees established under Title V (Trade and Trade-related Matters) of this Agreement shall inform the Association Committee in Trade configuration, as set out in Article 438(4) of this Agreement, of the date and agenda of their meetings sufficiently in advance of their meetings. They shall report on their activities at each regular meeting of the Association Committee in Trade configuration, as set out in Article 438 (4) of this Agreement.
6. The existence of any of the sub-committees shall not prevent either Party from bringing any matter directly to the Association Committee, including in Trade configuration, as set out in Article 438(4) of this Agreement.
Article 440.
1. A Parliamentary Association Committee is hereby established. It shall consist of Members of the European Parliament, on the one hand, and of Members of the Parliament of the Republic of Moldova, on the other, and shall be a forum for them to meet and exchange views. It shall meet at intervals which it shall itself determine.
2. The Parliamentary Association Committee shall establish its own rules of procedure.
3. The Parliamentary Association Committee shall be chaired in turn by a representative of the European Parliament and a representative of the Parliament of the Republic of Moldova respectively, in accordance with the provisions to be laid down in its rules of procedure.
Article 441.
1. The Parliamentary Association Committee may request relevant information regarding the implementation of this Agreement from the Association Council, which shall then supply the Parliamentary Association Committee with the requested information.
2. The Parliamentary Association Committee shall be informed of the decisions and recommendations of the Associ- ation Council.
3. The Parliamentary Association Committee may make recommendations to the Association Council.
4. The Parliamentary Association Committee may create Parliamentary Association sub-committees.
Article 442.
1. The Parties shall also promote regular meetings of representatives of their civil societies, in order to keep them informed of, and gather their input for, the implementation of this Agreement.
2. A Civil Society Platform is hereby established. It shall consist of representatives of civil society, on the side of the EU, including Members of the European Economic and Social Committee, and representatives of civil society on the side of the Republic of Moldova, and shall be a forum for them to meet and exchange views. It shall meet at intervals which it shall itself determine.
3. The Civil Society Platform shall establish its own rules of procedure.
4. The Civil Society Platform shall be chaired in turn by a representative of the European Economic and Social Committee and representatives of civil society on the side of the Republic of Moldova respectively, in accordance with the provisions to be laid down in its rules of procedure.
Article 443.
1. The Civil Society Platform shall be informed of the decisions and recommendations of the Association Council.
2. The Civil Society Platform may make recommendations to the Association Council.
3. The Association Committee and Parliamentary Association Committee shall organise regular contacts with representatives of the Civil Society Platform in order to obtain their views on the attainment of the objectives of this Agreement.
Chapter 2. General and Final Provisions
Article 444. Access to Courts and Administrative Organs
Within the scope of this Agreement, each Party undertakes to ensure that natural and legal persons of the other Party have access, that is free of discrimination in relation to its own nationals, to its competent courts and administrative organs in order to defend their individual and property rights.
Article 445. Access to Official Documents
The provisions of this Agreement shall be without prejudice to the application of the relevant internal laws and regulations of the Parties regarding public access to official documents.
Article 446. Security Exceptions
Nothing in this Agreement shall prevent a Party from taking any measures: