prop · GG03212 · 1992-12-31 00:00:00 — He shall undertake to submit at the request of the appropriate authorities, any supplementary evidence they may requirefor the purpose of establishing the correctness i-j 1992/93:212 ProtocolB of the originating status of the goods eligible forpreferential treatment and shall undertake to agree to any inspection of hisaccounts and to any check on the processes of the obtaining of the above goods,carried out by the saidauthorities. Exporters must keep forat least two years the supporting documents referred to in paragraph 1. The provisions ofparagraphs 1 and 2 shall apply mutatis mutandisin the case of the use of the procedures laid down in paragraphs 2 and 3 of Article13 and of the declarations referred to in paragraphs 1 (b) and 1 (c) of Artide 8. Goods sent from an or from Bulgariafor exhibition in a country other than a State Party to this Agreement and sold after the exhibition for importation into or into an benefit on importation from the provisions of this Agreement on condition that the goods meet the requirements of this Protocol entitling them to berecognized as originating in an or in and provided that it is shown to the satisfaction of the Customs authorities that: (a) an exporter hasconsigned these goods from an or from to the country in which the exhibition isheld and has exhibited themthere; (b) the goods have beensold or otherwise disposed of by that exporter to someone in or in an EFTA State; (c) the goods have beenconsigned during the exhibition or immediately thereafter to or to an inthe state in which they weresent for exhibition; (d) thegoods have not, since they were consigned for exhibition, been used for anypurpose other than demonstration at the exhibition. An Ein.l certificatemust be produced to the customs authorities in the normal . The name and addressof theexhibition must be indicated thereon. Where necessary, additional documentaryevidence of the nature of the goods and the conditions under which they havebeen exhibited may berequired. Paragraph 1 shall applyto any trade, industrial, agriculturalor crafts exhibition, fair or similar public o 1992/93:212 ProtocolB show or display which is not organized for privatepurposes in shops or business premises with a view to the sale of foreign goods,and during which the goods remain under customs control. In order to ensure theproper application of this Title, the States Parties to this Agreement shallassist each other through their respective customs administrations, inchecking the authenticity and accuracy of EUR.l certificates, including thoseissued under paragraph 3 of Article 9 and the exporters' declarations made on invoices. The Joint Committeeshall be authorized to take any decisions necessary for the methods of administrative cooperationto be applied in due time in the States Parties to this Agreement. The customs authoritiesof the States Parties to this Agreement shall provide each other, through the EFTASecretariat, with specimen impressions of stamps used in their customs officesfor the issue of EUR.l certificates. Penalties shall beimposed on any person who draws up, or causes to be drawn up, a doctimentwhich contains incorrect particulars for the purpose of obtaining a preferential treatment for goods. The States Parties tothis Agreement shall take all necessary steps to ensure that goods traded under coverof an EUR.l certificate, which in the course of transport use a free zone situated intheir territory, are not substituted by other goods and that they do notundergo handling other than normal operations designed to prevent their deterioration. When productsoriginating in a State Party to this Agreement and imported into a free zoneunder cover of an EUR.l certificate undergo treatment or processing, the customs authoritiesconcemed nust issue a new EUR.l certificate at the exporter's request if the treatnentor processingundergone is in confomity with the provisions of this Protocol. 1992/93:212 ProtocolB Subsequentverifications of EUR.l certificates and of exporters' declarationsnade on invoices shall be carried out at random or whenever the customs authoritiesof the importing State have reasonable doubt as to the authenticity of thedocument or the accuracy of the information regarding the true origin of thegoods in question. For the purposes ofimplementing the provisions of paragraph 1, the customs authorities of the importingState shallreturn the EUR.l certificate and the invoice, if it has been submitted, or theinvoice referring to an LT certificate, or the invoice bearing the exporter's dedaration or a copy ofthose documents, to the customs authorities of the exporting State, giving whereappropriate, the reasons of substance or form for an inquiry. The customs authorities shall forward, in support of therequest for aposteriori verification, anydocuments and information that have beenobtained suggesting that the particularsgiven on the EUR.l certificate or the invoice are inaccurate. If the customs authorities of the importing State decideto suspendthe provisions of the Agreement while awaiting the results of the verification,they shall offer to release the goods to the importer subject to anyprecautionary measuresjudged necessary. The customs authorities of the importing Stateshall be informed of the results of the verification as soon as possible. These results must be such as to make it possible to determine whether thedocuments returned under paragraph 2 apply to the goodsactually exported, and whether these goods can, in fact, qualify for application of the preferential arrangements. Where such disputes cannot be settled between thecustoms authorities of the importing State and those of the exporting State orwhere they raise a question as to the interpretation of this Protocol theyshall be submitted to the Sub-Committee on customs and origin natters referredto inArticle 26. The decisions shall be taken by . For the purpose of the subsequent verification of EUR.lcertificates, the customs authorities of the exporting State must keep theexport documents, or copies of EUR.l certificates used in place thereof, for atleast two years. 1992/93:212 ProtocolB TITLE III Final provisions The States Parties to this Agreement shall each tedte thestepsnecessary to inplenent this Protocol. The Annexes to this Protocol shall fom an integral part thereof. Goods which confom to the provisions of Title I andwhich onthe date of entry into force of the Agreement are either being transported orare being held in a State Party to this Agreenent in temporary storage, in bondedwarehouses or in free zones, nay be accepted as originating products subject tothe submission, within four months from that date, to the customs authoritiesof the importing State of evidence of origin, drawn up retrospectively, and ofany docvaoentsthat provide supporting evidence of the conditions of transport. The States Parties tothis Agreement undertake to introduce measures necessary to ensure that the EUR.lcertificates which their customs authorities are authorized to issue in pursuance ofthis Agreement are issued under the conditions laid down by this Agreement. They also undertake to provide the administrative co-operation necessary forthis purpose, in particular to check on the itinerary of goodstraded under this Agreement and the places in which they have been held. Without prejudice to the provisions of Protocol A, products which are ofthe kind to which the Agreement applies, and which are used in the nanufacture ofproducts for which an EUR.l certificate, an LT certificate or the invoices referring tothe LT certificate, or an invoice bearing the exporteras dedaration are issued orcompleted, can only be the subject of drawback of customs duty or 1992/93:212 ProtocolB benefit from an exemption of customs duty of whateverkind whenproducts originating in a State Party to this Agreement are concemed. In this Article, the term "customs duty"also means charges having an effect ecpiivalent to customs duty. Where, by virtue ofthis Agreement, imports into an are to be treated differently fromimports covered by the EFTA Convention, the treatment provided for by this Agreement shallbe applied to all products which are accompanied by evidence of origin referredto in paragraph1 of Article 8, issued or made out in , or by any such evidenceof origin issued in an and bearing the expression "EFTA-BulgariaTrade". An exporter in an EFTAState or his representative shall enter the expression "EFTA-BulgariaTrade" on the evidence of origin in trade between EFTA States in caseswhere products have obtained their originating status by virtue of this Agreementby use of materials originating in . Notwithstanding theprovisions of paragraph 1, products originating in an which arere-exported from , shall benefit at import into an fromtreatment equal to that which they would have received had they been sentdirectly from one to another. The products must be in the same state orhave 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 , inwhich the expression "Application Article 24.3" has been inserted andauthenticated by the stamp of thesaid office. ARTICLES 25 (ThisProtocol does not contain an Article 25) A Sub-Committee on customs and origin matters shall beset upunder in accordance with paragraph 5 of Article 28 of theAgreement to assist it in carrying out its duties and to ensure a continuousinformation and consultationprocess between experts. 1992/93:212 ProtocolB It shall be composed of experts from the States Partiesto theAgreement responsible for guestions related to origin rules. For the purpose of implementing sub-paragraph (b) (ii)of Article1 any product originating in a State Party to this Agreement shall, onexportation to another State Party to this Agreenent, be treated as anon-originating product during the period or periods In which thelast-mentioned State Party to this Agreement applies the råte of duty applicableto third countries or any corresponding safeguard measure to such products inaccordance with this Agreement. 193 13 1992/93. Note 1 - Article 1 The term "StateParty to this Agreement" shall also cover the territorial waters of this State. operating on thehigh seas, including factory ships, on which the fish caught is worked or processedshall be considered as part of the territory of the State Party to this Agreementto which they belong provided that they satisfy the conditions set out inExplanatory Note 4. Note 2 - Artides 1, 2 and 4 The conditions set outin Article 1 relative to the acquisition of originating status must be fulfilledwithout interruption in a State Party to this Agreement except in so far as provided for in Article 2. If originating productsexported from a State Party to this Agreement to another country are returned, exceptas provided for in Article 2, they must be considered as non-originating unlessit can be demonstrated 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 that necessary topreserve them in good condition whilein that country. Note 3 - Artides 1 and 2 In order to determinewhether goods are originating products it shall not be necessary to establish whetherthe power and fuel, plant and equipment, and nachines and tools used to obtain suchgoods originate in third countries or not. »ote 4 - Sub-paragraph (f) of Article 4 The term "its " shall apply only tovessels: (a) which areregistered or recorded in a State Party to this Agreement; (b)which sail underthe flag of a State Party to this Agreement; (c)which are at least50 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 nanagers,chaiman of the board of directors or of the supervisory board, and the najorityof the menbers of such boards are nationals of a State Party to this Agreementand of which, in addition, in the case of partnerships or linited companies, atleast half of the capital belongs to such a State or to public bodies ornationals of such a State; (d) of which the captain and officers are all nationals of a State Party to this Agreement; (e) ofwhich at least 75 per cent of the crew are nationals of a State Party to thisAgreement. Note 5 - Artides 4 and 5 Theunit of qualification for the application of the 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 gualification 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: whena product composed of a group or assembly of artides is dassified under theterms of the within a singie heading, the whole constitutesthe unit of qualification, whena consignment consists of a number of identical products dassified within thesame heading of the harmonized system, each product nust be taken individuallywhen applying the origin rules. Where,under General 5 of the , packing is included with the product for dassification purposes, it shall be included for purposes of determining origin. Note 5a - Sub-paragraph (h) of Article 4 In the case of usedtyres, the term "used artides collected 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 retreadingor for use as waste. Note - Paragraph 2 of Article 5 The Introductory Notesto also apply where appropriate to all productsmanufactured using non-originating naterials even if they are not subject to aspecific condition contained in the List in but are subject instead tothe change of heading rule set out inparagraph 2 of Article 5. Note 7 - Article 6 "Ex-worksprice" shall nean the price paid to the manufacturer in whose undertakingthe last working or processing is carried out, provided the price indudes thevalueof all the products used in nanufacture. "Customsvalue" shall be understood as meaning the customs value as determined inaccordance with the Agreement on implementation of Article VII of the GeneralAgreement on Tariffs and Trade done at on . Note 8 - Paragraph 1 of Article 8 The facility of using,under this Protocol, the invoice as evidence of the originating status of thegoods, shall be extended to the delivery note or any other commercial documentwhich describes the goods concemed in sufficient detail to enable them to beidentified. In the case of productssent by post which, within the meaning of paragraph 2 of Article 8, are not consideredas importationsby way of 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- Paragraph1 of Article 17 and Article 22 Where an EUR.lcertificate has been issued under the conditions laid down in Article 9 (3) andrelätes to goodsre-exported in the same state, the customs authorities of the country ofdestination must be able to obtain, by means of administrative co-operation,true copies of the evidence of origin issued or made out previously relating tothose goods. Note 10 - Article 23 "Drawback ofcustoms duty or exemption from customs duty of whatever kind" shall meanany arrangement for refund or remission, partial or complete, of customsduties applicable to products used in nanufacture, provided that the saidprovision concedes, expressly or in effect, this repayment or non-charging orthe non-imposition when goods obtained from the said products are exported butnot when they areretained for home use. "Products used innanufacture" shall nean any products in respect of which a "drawback ofcustoms duty or exemption from customs duty of whatever kind" is requestedas aresult of the export of originating products for which an EUR.l certificate,an LT certificate or the invoices referring to the LT certificate, or aninvoice bearing the exporter's dedaration are issued or made out. 1992/93:212 to Protocol B List of working or processing required to be carried outon non-originating naterials in order thatthe product nanufactured can obtain originating status 1.1The first two colunns in the List describe the products obtained. Thefirst column gives the heading number, or the Chapter number, used in the Harmonized Systemand the second column gives the description of goods used in that System for thatheading or Chapter. For each entry in the first two coltunns arule 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 described in column 2. 1.2Where several heading ntuabers are grouped together in column 1 ora Chapter number is given and the description of product in column 2 is thereforegiven in general terms, the adjacent rule in column 3 or column 4 applies toall products which, under the , are dassified withinheadings of the Chapter or within any of the headings grouped together in column 1. 1.3Where there are different rules in the List applying to differentproducts within a heading, each indent contains the description of that part of the heading coveredby the adjacent rule in column3 or column 4. 1.4For the products of Chapters 84 to 91 indusive, if no origin rule isgiven in column 4, the rule set out in colimn 3 has to be applied. 2.1 The term"manufacture" covers any kind of working or processing including"assembly" or specific operations. However, see paragraph 5 of Note 3 below. 1992/93:212 AnnexII to Protocol B 2.2The term "material" covers any "ingredient","raw material", "component" or "part", etc, used in the manufacture of the product. 2.3The term "product" refers to the product being manufactured,even if it is intended for låter use in another manufacturing operation. 3.1In the case of any heading not in the List or any part of a heading thatis not in the List, the "change of heading" rule set out in paragraph2 of Article 5 applies. If a "change of heading" condition appliesto any entry in the List, then it is contained in the rule in column 3. 3.2The working or processing required by a rule in column 3 or column 4has to be carried out only in relation to the non-originating materials used. The restrictionscontained in a rule in column 3 or column 4 likewise apply only to the non-originating materials used. 3.3Where a rule states that "materials of any heading" may beused, materials of the same heading as the product may also be used, subject, however, to any specificlimitations which may also be contained in the rule. However, the expression"manufacture from naterials of any heading including other materials ofheading No..." means that only materials dassified within the same headingas the product of a different description than that of the product as given in column 2 ofthe List may be used. 3.4If a product, nade from non-originating materials which has acquiredoriginating status during manufacture by virtue of the change of heading rule or its own Listrule, is used as a material in the process of manufacture of another product, then the rule applicableto the product in which it is incorporated does not apply to it. An engine of heading No. 8407, for which the rule states that thevalue of the non-originating materials which nay be incorporated nay not exceed40 % of the ex-works price, is nade from "other alloy steel roughly shaped byforging" of heading No. 1992/93:212 AnnexII to Protocol B If this forging has been forged in the country concemed from anon-originating ingöt then the forging has already acquired origin by virtue of therule for 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 the same factory oranother. The value of the non-originating ingöt is thus not takeninto account when adding up the value of the non-originating materials used. 3.5 Even if the changeof heading rule or the rule contained in the List are satisfied, a product does nothave origin if the processing carried out, taken as a whole, is insufficient inthe senseof paragraph 5 of Article 5. 4.1The rule in the List represents the minimum amount of working orprocessing required and the carrying out of nore working or processing alsoconfers originating status; conversely, the carrying out of lessworking or processing cannot confer origin. Thus if a rule says that non-originating material ata certain level of manufacture may be used, the use of such material at an earlier stage ofmanufacture is allowed and the use of such material at a låter stage is not. 4.2When a rule in the List specifies that a product may be nanufactured frommore than one material, this means that any one or nore of the naterials nay be used. It doesnot require that 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 naterial andother restrictions apply to other naterials in the same rule, then the restrictions only apply to thenaterials actually used. The rule for sewing nachines specifies that the thread tension nechanism used has to originate and that the zigzag mechanism used 20O 1992/93:212 AnnexII to Protocol B alsohas to originate; these two restrictions only apply if the nechanisms concemedare actually incorporated into the sewing . 4.3 When a rule in the List specifies that aproduct must be manufactured frön a particular naterial, the condition obviously does not prevent the use of other naterials which, because of their inherent nature, cannot satisfy the rule. Therule for heading No. specificallyexdudes the use of cereals or theirderivatives does not prevent the use ofnineral salts, Chemicals and other additiveswhich are not produced from Inthe case of an article made from non-woven materials, if the use of onlynon-originating yarn is allowed for this class of article, it is not possibleto start from non-woven cloth - even if non-wovens cannot normally be made fromyarn. In such cases, the starting naterial would nomally be at the stagebefore yarn - that is the fibre stage. Seealso paragraph 3 of Note 7 in relation to textiles. 4.4 If in a rule in the List two or norepercentages are given for the naximum value of non- originating materials that can be used, then these percentages may not be added together. The maximum value of all thenon-originating materials used may never exceed the highest of the percentages given. Furthermore the individual percentages must not be exceeded in relation to the particular materials they apply to. 5.1 The term "natural fibres" isused in the List to refer to fibres other than artificial or synthetic fibresand is restricted to the stages before spinning takes place, including wasteand unless otherwise specified, the term "natural 1992/93:212 to Protocol B fibres" indudes fibres that have been carded, combedor otherwise processed but not spun. 5.2The term "natural fibres" Indudes horsehair of heading No. 0503, silkof headings Nos. 5002 and 5003 as well as the wool fibres, fine or coarse 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.