prop · GG03165 · 1992-12-31 00:00:00 — They also undertaketo provide the administrative co-operation necessary for this purpose, inparticular to check on the itinerary of goods traded under this Agreement andthe places in which they have been held. 1.Withoutprejudice to the provisions of Protocol A, products whieh are of the kind towhich the Agreement applies, and which are used in the manufacture of productsfor whieh an EUR.l certificate, an LT certificate or the invoices referring tothe LT certificate, or an invoice bearing the exporter's declaration are issuedor completed, can only be the subject of drawback of customs duty or benefitfrom an exemption of customs duty of whatever kind when products originating ina State Party to this Agreement or in , are concerned. 2.In thisArticle, the term "customs duty" also means charges having an effectequivalent to customs duty. Where, by virtue of this Agreement, imports into anEFTA State are to be treated differently from imports covered by the EFTAConvention, the treatment provided for by this Agreement shall be applied toall products whieh are accompanied by evidence of origin referred to inparagraph 1 of Article 8, issued or made out in , or by any suchevidence of origin issued in an and bearing the expression"Trade". 1992/93:165 Protocol B 2.An exporter inan or his representative shall enter the expression"Trade" on the evidence of origin in trade between theEFTA States in cases where products have obtained their originating status byvirtue of this Agreement by use of materials originating in or in . 3.Notwithstandingthe provisions of paragraph 1, products originating in an which arere-exported from , shall benefit at import into an fromtreatment equal to that whieh they would have received, had they been sentdirectly from one to another. The products must be in the samestate or have undergone no working or processing in going beyond thatreferred to in paragraph 5 of Article 5. This treatment will be granted onlyupon submission to the customs authorities of the importing of anEUR.l certificate issued by the appropriate customs office in , in whichthe expression "Application Article 24.3" has been inserted andauthenticated by the stamp of the said Office. 1.Originatingproducts within the meaning of this Protocol shall, on importation into Romaniabenefit from the Agreement also upon submission of an EUR.l certificate issuedby a customs office in in which the expression "ApplicationArtiele 25" has been inserted and authenticated by the stamp of the saidoffice. 2.When products,previously imported into accompanied by evidence of origin referred toin paragraph 1 of Article 8, issued or made out in an , arere-exported to , undertake to issue EUR.l certifieateswith the expression "Application Artiele 25", provided that theproducts are re-exported in the same state or have undergone no working orprocessing in going beyond that referred to in paragraph 5 of Article5. A Sub-Committee on customs and origin matters shall be setup under in accordance with paragraph 5 of Article 28 ofthe Agreement charged with carrying out administrative co-operation with a viewto ensuring a practical, correct and uniform application of this Protocol 1992/93:165 ProtocolB as well as a eontinuous information and consultationprocess between experts. It shall be composed of experts from the States Parties tothe Agreement responsible for questions related to customs and origin natters. 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 of anotherState Party to this Agreement, be treated as a non-originating product duringthe period or periods in which the last-mentioned State Party to this Agreementapplies the rate of duty applicable to third countries or any correspondingsafeguard measure to such products in accordance with this Agreement. PROTOCOL B EXPLANATORY NOTES Note 1 - Artide i The tem "State Party to this Agreement" shallalso cover the territorial waters of this State. operating on the high seas, including factoryships, on which the fish eaught is worked or processed shall be considered aspart of the territory of the State Party to this Agreement to which they belongprovided that they satisfy the conditions set out in Explanatory Note 4. Note 2 - Articles 1, 2 and 4 The conditions set out in Artiele 1 relative to theacquisition of originating status must be fulfilled without interruption in aState 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 same 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 - Articles 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 eguipment, 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 Agreement; (b)which sailunder the flag of a State Party to this Agreement; (c)which are atleast 50 per cent owned by nationals of a State Party to this Agreement or by acompany with its head office in such a State, of which the manager or managers,chairman of the board of directors or of the supervisory board, and themajority of the members of such boards are nationals of a State Party to thisAgreement and of which, in addition, in the case of partnerships or limitedcompanies, at least half of the capital belongs to such a State or to publicbodies 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 classifieation using the Nomenclature of the . In the case of sets of products whieh are classified 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 classified under the terms of the within a single heading,the whole constitutes the unit of qualification, when a consignment consists of a number of identicalproducts classified within the same heading of the , eachproduct must be taken individually when applying the origin rules. Where, under General 5 of the HarmonizedSystem, packing is included with the product for classifieation purposes, it shall be included for purposes of determining origin. Note 5a - Sub-paragraph (h) of Article 4 In the case of used tyres, the term "used articlescolleeted there, fit only for the recovery of raw materials" does not onlycover used tyres fit only for the recovery of raw naterials but also used tyresfit only for retreading or for use as waste. iote 6 - Paragraph 2 of Article 5 The Introduetory Notes to also apply where appropriateto all products manufactured using non-originating materials even if they arenot subject to a specific condition contained in the List in but are subject instead to thechange of beading rule set out in paragraph 2 of Artiele 5. tJote 7 - Artiele 6 "Ex-works price" shall mean the price paid tothe manufacturer in whose undertaking the last working or processing is carriedout, provided the price includes 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 goodsconcerned 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 declaration of the originating status can also be made on thecustoms declaration C2/CP3 or on a sheet of paper annexed to that declaration. Note 9 - Paragraph 1 of Artiele 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 custons 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 - Artiele 23 "Drawback of customs duty or exemption from customsduty of whatever kind" shall mean any arrangement for refund or remlssion,partial or complete, of customs duties applicable to products used innanufacture, provided that the said provision concedes, expressly or in effect,this repayment or non-eharging 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 mean anyproducts in respect of which a "drawback of customs duty or exemption fromcustoms duty of whatever kind" is requested as a result of the export oforiginating products for which an EUR.l certificate, an LT certificate or theinvoices referring to the LT certificate, or an invoice bearing the exporter'sdeclaration are issued or made out. Prop.1992/93:165 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 1.1 The first two columns in the List describe the product obtained. The first column gives the heading number, or the Chapter number, used in the and the second column gives the description of goods used in that System for that heading or Chapter. For each entry in the first two columns a rule is specified 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 numbers are grouped together in column 1 or a Chapter number isgiven and the description of product in column 2 is therefore given in generalterms, the adjacent rule in column 3 or column 4 applies to all products whieh,under the , are classified within headings of the Chapter orwithin 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 column 3 or column 4. 1.4For theproducts of Chapters 84 to 91 inclusive, if no origin rule is given in column4, the rule set out in column 3 has to be applied. 2.1 The term "manufacture" covers any kind ofworking or processing ineluding "assembly" or specific operations. However, see paragraph 5 of Note 3 below. 1992/93:165 to Protocol B 2.2The term"material" covers any "ingredient", "rawmaterial", "component" or "part", etc, used in themanufacture of the product. 2.3The tem"product" refers to the product being manufactured, even if it isintended for later use in another manufacturing operation. 3.1In the case ofany heading not in the List or any part of a heading that is not in the List,the "change of heading" rule set out in paragraph 2 of Article 5applies. If a "change of heading" condition applies to any entry inthe List, then it is contained in the rule in column 3. 3.2The working orprocessing required by a rule in column 3 or column 4 has to be carried out onlyin relation to the non-originating materials used. The restrictions containedin a rule in column 3 or column 4 likewise apply only to the non-originatingmaterials used. 3.3Where a rulestates that "materials of any heading" may be used, materials of thesame heading as the product may also be used, subject, however, to any specificlimitations whieh may also be contained in the rule. However, the expression"manufacture from materials of any heading including other materials ofheading No..." means that only materials classified within the sameheading as the product of a different description than tliat of the product asgiven in column 2 of the List may be used. 3.4If a product,made from non-originating materials which has acquired originating status duringmanufacture by virtue of the change of heading rule or its own List rule, isused as a material in the process of manufacture of another product, then therule applicable to the product in which it is incorporated does not apply toit. Prop.1992/93:165 to Protocol B An engine of heading No. 8407, for which the rule statesthat the value of the non-originating materials which may be incorporated maynot 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 concernedfrom a non-originating ingot then the forging has already acquired origin byvirtue of the rule for heading No. ex 7224 in the list. It can then count as originatingin the value ealculation for the engine regardless of whether it was producedin the same factory or another. The value of the non-originating ingot is thusnot taken into account when adding up the value of the non-originatingmaterials used. 3.5 Even if the change of heading rule or the rulecontained in the List are satisfied, a product does not have origin if theprocessing carried out, taken as a whole, is insufficient in the sense ofparagraph 5 of Article 5. 4.1The rulein the List represents the minimum amount of working or processing required andthe carrying out or more working or processing also confers originating status;conversely, the carrying out of less working or processing cannot conferorigin. Thus if a rule says that non-originating material at a certain levelof manufacture may be used, the use of such material at an earlier stage ofmanufacture is allowed and the use of such material at later stage is not. 4.2When arule in the List speeifies that a product may be manufactured from nore thanone naterial, this neans that any one or nore of the materials may be used. Itdoes not require that all be used. Prop.1992/93:165 to Protocol B The rule for fabrics says that natural fibres may be used and that chemical materials, among other naterials, may also This does not mean 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 materials actually used. The rule for sewing speeifies that the threadtension mechanism used has to originate and that the zigzag mechanism used alsohas to originate; these two restrictions only apply if the mechanisms concernedare actually incorporated into the sewing . 4.3 When a rule in the List speeifies that a productraust be manufactured from a particular material, the condition obviously doesnot prevent the use of other materials which, because of their inherent nature,cannot satisfy the rule. The rule for heading No. specifically excludes 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 artide nade from non-woven materials, ifthe use of only non-originating yarn is allowed for this class of artide, it isnot possible to start from non-woven cloth - even if non-wovens cannot normallybe made from yarn. In such cases, the starting naterial would normally be atthe stage before yarn - that is the fibre stage. See also paragraph 3 of Note 7 in relation to textiles. 1992/93:165 to Protocol B 4.4 If in a rule in the List two or more pereentages aregiven for the maximum value of non-originating materials that can be used, thenthese pereentages may not be added together. The maximum value of all the non-originating naterials usedmay never exceed the highest of the pereentages given. Furthermore theindividual pereentages nust not be exceeded in relation to the particularmaterials they apply to. 5.1The term"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 otherwise specified, the term"natural fibres" includes fibres that have been carded, eombed orotherwise processed but not spun. 5.2The term"natural fibres" includes horsehair of heading No. 0503, silk ofheadings Nos. 5002 and 5003 as well as the wool fibres, fine or eoarse animalhair 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-making materials" are used in the List to describe thematerials not classified within Chapters 50 to 63 which can be used tomanufacture artificial, synthetic or paper fibres or yarns. 5.4The term"man-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. 1992/93:165 toProtocol B 6.1In thecase of the products dassified within those headings in the List where areference is made to this Introduetory 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 materials 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: wool, - eoarse animal hair, fine animal hair, paper-making materials and paper, jute and other textile bast fibres, sisal and other textile fibres of the genus coconut, abaea, ramie and other vegetable synthetic man-made filaments, artificial man-made filaments, synthetic man-made staple fibres, artificial man-made staple fibres. A yarn of heading No. 5205 made from cotton fibres andsynthetic staple fibres is a mixed yarn. Therefore, non-originating materialsthat do not satisfy the origin rules may be used up to a weight of of theyarn. A woollen fabrie of heading No. 5112 made from woollenyarn and synthetic yarn of staple fibres is a mixed fabrie. 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 thefabrie Tufted textile of heading No. 5802 made from cotton yarnand cotton fabrie is only a mixed product if the cotton fabrie is itself amixed fabrie being made from two or more different basic textile materials orif the cotton yarns used are themselves mixtures. If the tufted textile concerned had been made from cottonyarn and synthetic fabrie, then, obviously, two separate basic textilematerials would have been used. A carpet with tufts made both from artificial yarns andtufts made from cotton yarns and with a jute backing is a mixed product becausethree basic textile materials are used. Thus, any non-originating materialsthat are used at a later stage of manufacture than the rule allows, may beused, provided their total weight taken together does not exceed of theweight of the textile naterials in the carpet. Thus, the jute backing, theartificial yarns and/or the cotton yarns could be imported at that stage ofmanufacture, provided the weight 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 ., sandwiched by means of an adhesive between two filmsof plastic film, this tolerance is in respect of this strip. 1992/93:165 toProtocol B Prop.1992/93:165 toProtocol B Workingor processing carried out on confectionery (including white chocolate), not containing Chocolate and other food preparations containingcocoa Manufacturein which all the materials used are classified in a heading other than that ofthe product, provided the value of any other materials of Chapter 17 used doesnot exceed of the ex-works price of the product Manufacture in which all the materials used are classifiedin 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 Maltextract; food preparations of flour, 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 Manufacturein which all the materials used are classified in a heading other than that ofthe product, provided the value of any materials of Chapter 17 used does notexceed of the ex-works price of the product Prop.1992/93:165 to Protocol B (1) ex 19.02 Pasta, whether or not cooked or stuffed (with meat orother substances) or otherwise prepared, such as spaghetti, macaroni, noodles,lasagne, gnocchi, ravioli, cannelloni - except for those containing more than20% by weight of crustaceans, molluscs or other aquatic invertebrates, sausagesand the like or meat and meat offal of any kind, including fats of any kind ororigin; couscous, whether or not prepared Working or processing carried out on non-originating materials that confers 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 fromstarch, in the 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 obtained by the swelling or roastingof cereals or cereal products (for example, com flakes); cereals, other thanmaize (com), in grain form, pre-cooked or otherwise prepared: - Not containing cocoa: Cereals, other than maize (com), in grain form, pre-cooked or otherwise prepared Manufacture from materials of any heading. However, grainsand cobs of sweet com, prepared or preserved, of headings Nos. 20.01, 20.04 and20.05 and uncooked, boiled or steamed sweet com, frozen, of heading No. 07.10,may not be used Manufacture in which: Prop.1992/93:165 toProtocol B Bread, pastry, cakes, biscuits and other bakers' wares,whether or not containing cocoa; communion wafers, empty cachets of a kindsuitable for pharmaceutical use, sealing wafers, rice paper and similarproducts Working or processing carried out on non-originating nuuerials that confers -all the cerealsand their derivatives (except maize of the species "indurata" anddurum wheat and their derivatives) used must be obtained, and