prop · GG03221 · 1992-12-31 00:00:00 — This treatment will be granted only upon submission to the customs authorities of the importing of an EUR.l certificate issued by the appropriate customs office in in which the expression "Application Article 24.3" has been inserted and authenticated by the stamp of the said office. 1.Originatingproducts within the meaning of this Protocol shall, on importation into Hungarybenefit from the Agreement also upon submission of an EUR.l certificate issuedby a customs office in the , in or in the Slovak Republicin which the expression "Application Article 25" has been insertedand authenticated by the stamp of the said office. 2.Whenproducts, previously imported into accompanied by evidence of originreferred to in paragraph 1 of Article 8, issued or made out in an ,are re-exported to the , to or to the Slovak Republic,undertake to issue EUR.l certificates with the expression"Application Article 25", provided that the products are re-exportedin the same state or have undergone no working or processing in goingbeyond that referred to in paragraph 5 of Article 5. A Sub-Committee on customs and origin matters shall be setup under the joint Committee in accordance with paragraph 5 of Artide 29 of the Agreement charged with carrying outadministrative co-operation with a view to ensuring a practical, correct anduniform application of this Protocol as well as a continuous information andconsultation process between experts. It shall be composed of experts from the States, Partiesto the Agreement, responsible for questions related to customs and originmatters. For the purpose of implementing sub-paragraph (b) (ii) or(iii) of paragraph 1 of Article 1 any product originating in the territory of aState, Party to this Agreement, shall, on exportation to the territory ofanother State, Party to this Agreement, be treated as a non-originating productduring the period or periods in which the last-mentioned State, Party to thisAgreement, applies the råte ofduty applicable to third countries or any corresponding safeguard measure tosuch products in accordance with this Agreement. Prop.1992/93:221 ProtocolB PROTOCOL B EXPLANATORY NOTES Note 1 - Article 1 The term "State, Party to this Agreement" shallalso cover the territorial waters of this State. operating on the high seas, Including factoryships, on which the fish caught is worked or processed shall be considered aspart of the territory of the State, Party to this Agreement, to which theybelong provided that they satisfy the conditions set out in Explanatory Note 4. i;ote 2 - Artides 1, 2 and 4 The conditions set out in Article 1 relative to the acquisitionof originating status must be fulfilled without interruptionin a State, Party to this Agreement,except as provided for in Article 2. If originating products exported from a State, Party tothis Agreement, to another country are returned, except in so far as providedfor in Article 2, they must be considered as non-originating unless it can bedemonstrated to the satisfaction of the customs authorities that: the goods returned are the sane goods as those exported,and they have not undergone any operations beyond thatnecessary to preserve them in good condition while in that country. Note 3 - Artides 1 and 2 In order to determine whether goods are originatingproducts it shall not be necessary to establish whether the power and fuel,plant and equipnent, and nachines and tools used to obtain such goods originatein third countries or not. Note 4 - sub-paragraph (f) of Article 4 The term "its " shall apply only tovessels: (a) which are registered or recorded in a State, party tothis Agreenent; (b)whichsail under the flag of a State, Party to this Agreement; (c)whichare at least 50 per cent owned by nationals of a State, Party to thisAgreement, or by a company with its head office in such a State, of which themanager or managers, chairman of the board of directors or of the supervisoryboard, and the majority of the nembers of such boards are nationals of a State,Party to this Agreement, and of which, in addition, in the case of partnershipsor limited companies, at least half of the capital belongs to such a State orto public bodies or nationals of such a State; (d) of which the captain and officers are all nationals of a State, Party to this Agreement; (e) of which at least 75 per cent of the crew are nationals of a State, Party to this Agreement. Note 5 - Artides 4 and 5 The unit of qualification for the application ofthe origin rules shall be the particular product which is considered as the basic unit when determining dassification using the Nomendature of the . In the case of sets of products which are dassified by virtue of General 3, the unit of qualification shall be determined in respect of each item in the set; this also applies to the sets of heading Nos 6308, 8206 and 9605. Accordingly, it follows that: when a product composed of a group or assembly of artidesis dassified under the terms of the within a singie heading,the whole constitutes the unit of gualification, when a consignment consists of a number of identicalproducts dassified within the same heading of the , eachproduct nust be taken individually when applying the origin rules. Where, under General 5 of the HamonizedSysten, packing is included with the product for dassification purposes, it shall be included for purposes of determining origin. 16 1992/93. Note 5a - sub-paragraph (h) of Article 4 In the case of used tyres, the term "used artidescollected there , fit only for the recovery of raw materials" does notonly cover used tyres fit only for the recovery of raw materials but also usedtyres fit only for retreading or for use as waste. Note 6 - Paragraph 2 of Article 5 The Introductory Notes to also apply where appropriateto all products nanufactured using non-originating naterials even if they arenot subject to a specific condition contained in the List in but are subject instead to thechange of heading rule set out in paragraph 2 of Article 5. Note 7 - Article 6 "Ex-works price" shall nean the price paid tothe manufacturer in whose undertaking the last working or processing is carriedout, provided the price indudes the value of all the products used inmanufacture. "Customs value" shall be understood as meaningthe customs value as determined in accordance with the Agreement onimplementation of Article VII of the General on Tariffs and Tradedone at on . Note 8 - Paragraph 1 of Article 8 The facility of using, under this Protocol, the invoice asevidence of the originating status of the goods, shall be extended to thedelivery note or any other commercial document which describes the goodsconcemed in sufficient detail to enable them to be identified. In the case of products sent by post which, within themeaning of paragraph 2 of Article 8, are not considered as importations by wayof trade, the dedaration of the originating status can also be made on thecustoms dedaration C2/CP3 or on a sheet of paper annexed to that dedaration. Note 9 - Paragraph 1 of Article 17 and Article 22 Where an EUR.l certificate has been issued under theconditions laid down in paragraph 3 of Article 9 and relätes to goods re-exported in thesame state, the customs authorities of the country of destination must be ableto obtain, by means of administrative co-operation, true copies of the evidenceof origin issued or made out previously relating to those goods. Note 10 - Article 23 "Drawback of customs duty or exemption from customsduty of whatever kind" shall mean any arrangement for refund or remission,partial or complete, of customs duties applicable to products used inmanufacture, provided that the said provision concedes, expressly or in effect,this repayment or non-charging or the non-imposition when goods obtained fromthe said products are exported but not when they are retained for home use. "Products used in manufacture" shall nean anyproducts in respect of which a "drawback of custons duty or exemption fromcustoms duty of whatever kind" is requested as a result of the export oforiginating products for which an EtTR.l certificate, an LT certificate or theinvoices referring to the LT certificate, or an invoice bearing the exporter'sdedaration are issued or made out. 1992/93:221 to Protocol B List of working or processing required to be carried outon non-originating materials in order that the product manufactured can obtain originating status 1.1Thefirst two columns in the List describe the product obtained. The first columngives the heading number, or the Chapter number, used in the Harmonized Systemand the second column gives the description of goods used in that System forthat heading or Chapter. For each entry in the first two columns a rule isspecified in columns 3 and 4. Where, in some cases, the entry in the firstcolumn is preceded by an "ex", this signifies that the rule in column3 or column 4 only applies to the part of that heading or Chapter as describedin column 2. 1.2Whereseveral heading nunbers are grouped together in colunn 1 or a Chapter, numberis given and the description of product in colunn 2 is therefore given ingeneral tems, the adjacent rule in column 3 or column 4 applies to all productswhich, under the , are dassified within headings of the Chapteror within any of the headings grouped together in column 1. 1.3Wherethere are different rules In the List applying to different products within aheading, each indent contains the description of that part of the headingcovered by the adjacent rule in colunn 3 or column 4. 1.4For theproducts of Chapters 84 to 91 indusive, if no origin rule is given in colunn 4,the rule set out in column 3 has to be applied. Thetern "nanufacture" covers any kind of working or processing including"assenbly" or specific operations. However, see paragraph 5 of Note3 below. 2.2 The term "material" covers any"ingredient", "raw material", "component" or "part", etc, used in the manufacture of the product. 2.3 The term "product" refers to the productbeing nanufactured, even if it is intended for låter use in another manufacturing operation. 3.1In thecase of any heading not in the List or any part of a heading that is not in theList, the "change of heading" rule set out in paragraph 2 of Article5 applies. If a "change of heading" condition applies to any entryin the List, then it is contained in the rule in colunn 3. 3.2Theworking or processing required by a rule in colunn 3 or column 4 has to becarried out only in relation to the non-originating naterials used. Therestrictions contained in a rule in column 3 or column 4 likewise apply only tothe non-originating materials used. 3.3Where arule states that "naterials of any heading" nay be used, naterials ofthe same heading as the product nay also be used, subject, however, to anyspecific linitations which nay also be contained in the rule. However, theexpression "manufacture from materials of any heading including othermaterials of heading No..." neans that only naterials dassified within thesame heading as the product of a different description than that of the productas given in column 2 of the List nay be used. 3.4If aproduct, nade frön non-originating naterials whichhas acquired originating status during manufacture by virtue of the change ofheading rule or its own List rule, is used as a material in the process ofmanufacture of another product, then the rule applicable to the product inwhich it is incorporated does not apply to it. Prop.1992/93:221 toProtocol B Prop.1992/93:221 toProtocol B An engine of heading No. 8407, for which the rule statesthat the value of the non-originating naterials which nay be incorporated naynot exceed of the ex-works price, is nade from "other alloy steelroughly shaped by forging" of heading No. If this forging has been forged in the country concemedfrom a non-originating ingöt then the forging has already acquired origin by virtue of the rulefor heading No. ex 7224 in the List. It can then count as originating in thevalue calculation for the engine regardless of whether it was produced in thesame factory or another. The value of the non-originating ingöt is thus not taken into accountwhen adding up the value of the non-originating materials used. Even if the change of heading rule or the rule containedin the List are satisfied, a product does not have origin if the processingcarried out, taken as a whole, is insufficient in the sense of paragraph 5 ofArticle 5. The rule in the List represents the mininun amount ofworking or processing required and the carrying out of nore working orprocessing also confers originating status; conversely, the carrying out ofless working or processing cannot confer origin. Thus if a rule says thatnon-originating naterial at a certain level of nanufacture nay be used, the useof such material at an earlier stage of nanufacture is allowed and the use ofsuch naterial at a låterstage is not. When a rule in tJie List specifies that a product nay bemanufactured frön nore than one material, thisneans that any one or more of the materials nay be used. It does not requirethat all be used. The rule for fabrics says that natural fibres may be used and that chemical materials, among other materials, may also This does not nean that both have to be used, one can use one or the other or If, however, a restriction applies to one* material andother restrictions apply to other materials in the same rule, then therestrictions only apply to the naterials actually used. The rule for sewing nachines specifies that the threadtension nechanism used has to originate and that the zigzag mechanism used alsohas to originate; these two restrictions only apply if the mechanisms concemedare actually incorporated into the sewing . 4.3 When a rule in the List specifies that a product mustbe manufactured from a particular material, the condition obviously does notprevent the use of other materials which, because of their inherent nature,cannot satisfy the rule. The rule for heading No. specifically exdudes the use of cereals or their derivatives does not prevent the use of salts, Chemicals and other additives which are not produced from In the case of an article nade from non-woven materials,if the use of only non-originating yarn is allowed for this class of artide, itis not possible to start from ■ non-woven cloth - even if non-wovenscannot normally be made from yarn. In such cases, the starting material wouldnormally be at the stage before yarn - that Is the fibre Etage. See also paragraph 3 of Note 7 in relation to textiles. Prop.1992/93:221 toProtocol B 4.4 If in a rule in the List two or nore percentages aregiven for the naxinun value of non-originating naterials that can be used, thenthese percentages may not be added together. The maximum value-of all the non-originating naterials usednay never exceed the highest of the percentages given. Furthermore theindividual percentages nust not be exceeded in relation to the particularnaterials they apply to. 5.1The tern"natural fibres" is used in the List to refer to fibres other thanartificial or synthetic fibres and is restricted to the stages before spinningtakes place, including waste and unless otherwisc! specified, the tern"natural fibres" indudes fibres that have been carded, combed orotherwise processed but not spun. 5.2The term"naturzil fibres" indudes horsehair of heading No. 0503, silk ofheadings Nos. 5002 and 5003 as well as the wool fibres, fine or coarse aninalhair of headings Nos. 5101 to 5105, the cotton fibres of headings Nos. 5201 to5203 and the other vegetable fibres of headings Nos. 5301 to 5305. 5.3Theterms "textile pulp", "chemical naterials" and"paper-naking naterials" are used in the List to describe thematerials not dassified within Chapters 50 to 63 which can be used tomanufacture artificial, synthetic or paper fibres or yarns. 5.4The tem"nan-nade staple fibres" is used in the List to refer to synthetic orartificial filanent tow, staple fibres or waste, of headings Nos. 5501 to 5507, 1992/93:221 toProtocol B 6.1In thecase of the products dassified within those headings in the List where areference is nade to this Introductory Note, the conditions set out in column 3of the List shall not be applied to any basic textile naterials used in theirnanufacture which, taken together, represent or less of the total weightof all the basic textile naterials used (but see also paragraph 3 and 4 of Note6 below). 6.2However,this tolerance may only be applied to mixed products which have been made fromtwo or more basic textile materials, irrespective of their share of theproduct. The following are the basic textile materials: silk, wool, coarse animal hair, fine animal hair, horsehair, cotton, paper-making materials and paper, flax, jute and other textile bast fibres, sisal and othertextile fibres of the genus Agave, coconut, abaca, ramie and other vegetable textile fibres,synthetic man-made filaments, artificial man-made filaments, synthetic man-madestaple fibres, artificial man-made staple fibres. A yarn of heading No. 5205 nade from cotton fibres andsynthetic staple fibres is a mixed yarn. Therefore, non-originating materialsthat do not satisfy the origin rule$ nay be used up to a weight of 10 t of theyarn. A woollen fabric of heading No. 5112 nade from woollenyarn and synthetic yarn of staple fibres is a mixed fabric. Therefore, eithernon-originating synthetic yarn or woollen yarn or a combination thereof thatdoes not satisfy the origin rules may be used up to a weight of of thefabric. Prop.1992/93:221 toProtocol B Tufted textile of heading No. 5802 nade frön cotton yarn and cotton fabric isonly a nixed product if the cotton fabric is Itself a nixed fabric being nadefrön two or nore different basictextile naterials or if the cotton yarns used are thenselves nixtures. If the tufted textile concemed had been nade frön cotton yarn and synthetic fabric,then, obviously, two separate basic textile materials would have been used. A carpet with tufts made both from artificial yarns andtufts made from cotton yams and with a jute backing is a mixed product becausethree basic textile naterials are used. Thus, any non-originating materialsthat are used at a låterstage of manufacture than the rule allows, may be used, provided their totalweight taken together does not exceed 10 t of the weight of the textilematerials in the carpet. Thus, the jute backing, the artificial yarns and/orthe cotton yarns could be imported at that stage of manufacture, provided theweight conditions are met. 6.3In thecase of products incorporating "yarn made of polyurethane segmented withflexible segments of polyether whether or not gimped" this tolerance is in respect of this yarn. 6.4In thecase of products incorporating strip consisting of a core of aluminium foil orof a core of plastic film whether or not coated with aluminium powder, of awidth not exceeding 5 nm., sandwiched by neans of an adhesive between two filmsof plastic film, this tolerance is in respect of this strip. Prop.1992/93:221 toProtocol B 7.1 In the case of those textile products, which arenarked in the List by a footnote referring to this Introductory Note, textilenaterials, with the exception of linings and interlinings, which do not satisfythe rule set out in the List in colunn 3 for the made-up product concemed naybe used provided that they are dassified in a heading other than that of theproduct and that their value does not exceed of the ex-works price of theproduct. 7.2Anynon-textile trimmings and accessories or other materials used which containtextiles do not have to satisfy the conditions set out in column 3 even thoughthey fall outside the scope of paragraph 3 of Note 4. 7.3Inaccordance with paragraph 3 of Note 4, any non-originating non-textiletrimmings and accessories or other product, which do not contain any textiles,may, anyway, be used freely where they cannot be made from the materials listedin column 3. If a rule in the List says that for a particular textileitem, such as a blouse, yarn must be used, this does not prevent the use ofmetal items, such as buttons, because they cannot be made from textilematerials. 7.4 Where a percentage rule applies, the value of trimmings and accessories nust be taken into account when calculating the value of the non- originating naterials incorporated. 1992/93:221 toProtocolB Prop.1992/93:221 to Protocol B ' Description of produa Fish, other than live fish Buttermilk, curdled milk and cream, yogurt, kephir andother fermented or acidified milk and cream, flavoured or containing addedfruit, nuts or cocoa Workingor processing carried out on Manufacture in which all the materials of Chapter 3 usedmust already be originating Manufacture in which: -all thematerials of Chapter 4 used must be obtained -any fruitjuice (except those of pineapple, lime or grapefruit) of heading No. 20.09 usedmust already be originating, and -the value ofany materials of Chapter 17 used does not exceed of the ex-works price ofthe product ex 13.02 Mucilages and thickeners derived fromvegetable products, modified Manufacture from non-modified mucilages and thickeners 16.4Preparedor preserved fish; caviar and caviar substitutes prepared from fish eggs 16.5Crustaceans,molluscs and other aquatic invertebrates, prepared or preserved ex 17.02 Chemically pure fructose andmaltose Manufacturein which the value of all the materials used does not exceed of theex-works price of the product Manufacturein which the value of all the materials used does not exceed of theex-works price of the product Manufachire from materials of any heading including othermaterials of heading No. Prop.1992/93:221 toProtocol B Working or processing carried out on 17.04 confectionery (including white chocolate), notcontaining cocoa Chocolate and other food preparations containingcocoa Manufacturein which all the materials used are dassified in a heading other than tht ofthe product, provided the value of any other materials of Chapter 17 used doesnot exceed of the ex-works price of the product Manufachire in which all the materials used are dassifiedin a heading other than that of the product, provided the value of anymaterials of Chapter 17 used does not eKceed of the ex-works price of theproduct Maltextract; food preparations of fiour, meal, starch or malt extract, notcontaining cocoa powder or containing cocoa powder in a proportion by weight ofless than , not elsewhere specified or included; food preparations of goodsof headings Nos. 04.01 to 04.04, not containing cocoa powder or containingcocoa powder in a proportion by weight of less than , not elsewherespecified or included: Manufacture from cereals of Chapter 10 Manufachire in which all the materials used are dassifiedin a heading other than that of the product, provided the value of anymaterials of Chapter 17 used does not exceed of the ex-works price of theproduct Prop.1992/93:221 to Protocol B Pasta, whether or not cooked or stuffed (with meat orother substances) or otherwise prepared, such as spaghetti, macaroni, noodles,lasagne, gnocclti, ravioli, cannelloni - except for those containing more than20% by weight of crustaceans, molluscs or other aquatic invertebrate:;,sausages and the like or meat and meat offal of any kind, including fats of anykind or origin; couscous, whether or not prepared Workingor processing carried out on Manufacture in which all the cereals and derivatives(except durum wheat and its derivatives) used must be obtained 19.03 Tapioca and substitutes therefor prepared from starch,in ihe form of flakes, grains, pearls, siftings or in similar forms Manufacturefrom materials of any heading except potato starch of heading No. 19.04 Prepared foods obtain»! by the swelling or roastingof cereals or cereal products (for example, com flakes); cereals, other tlianmaize (com), in grain form, pre-cooked or otherwise prepared: -Notcontaii\ing cocoa: