WORLD TRADE
ORGANIZATIONWT/REG/GEN/N/1*
16 November 1998
(98-4521)
Committee on Regional Trade Agreements Original:  English/
French/
Spanish
SYSTEM OF EUROPEAN CUMULATION OF ORIGIN1
Joint Communication to the WTO on the System of European Cumulation of Origin by the
Delegations of the European Communities, Bulgaria, the Czech Republic, Hungary, Iceland,
Liechtenstein, Norway, Poland, Romania, the Slovak Republic, Slovenia and Switzerland
This communication, dated 1 July 1998, addressed to the Committee on Rules of Origin by
the Delegation of the European Communities, also on behalf of the Delegations of Bulgaria, theCzech Republic, Hungary, Iceland, Liechtenstein, Norway, Poland, Romania, the Slovak Republic,
Slovenia and Switzerland, has been received with the request that it be circulated to Members of
the Committee on Regional Trade Agreements.
_______________
1. Since the beginning of 1997 new rules of origin based on the concept of pan-European
cumulation have been applied in a number of Free Trade Agreements within Europe.  Through these
new provisions on cumulation of origin, separate fr ee trade zones established under a number of Free
Trade Agreements have been merged into a Euro pe-wide network.  A list of the Agreements in
question is attached as Annex 1.  Attached as Annex 2 is a sample model of the new cumulation rules
which are all based on a similar structure and substantive provisions.  The new rules of origin will beduly notified to the Committee on Rules of Origin by the individual WTO Members concerned.
2. The framework of existing Free Trade Agreements or Association Agreements in Europe
remains unchanged.  Only the Origin Protocols in each and every trade agreement have been replaced
by the pan-European cumulation provisions.  The im plementation of this new origin network has two
major consequences.  Firstly, semi-finished products originating in any country of the system andwhich are further processed or assembled in any other partner country may always be considered as
originating products.  Secondly, originating products can be traded between any of the countries
                                                     
* Due to technical reasons, this document replaces the multi-symbol document issued on 20 August
with the following symbols:  WT/REG1/N/1, WT/REG2/N/1, WT/REG12/N/1, WT/REG13/N/1,WT/REG15/N/1, WT/REG16/N/1;  WT/REG7/N/2, WT/REG8/N/2, WT/REG9/N/2, WT/REG20/N/2,WT/REG28/N/2, WT/REG29/N/2, WT/REG30/N/2, WT/REG32/N/2, WT/REG33/N/2, WT/REG34/N/2,WT/REG35/N/2, WT/REG37/N/2, WT/REG41/N/2, WT/REG42/N/2, WT/REG45/N/2, WT/REG46/N/2,
WT/REG47/N/2, WT/REG48/N/2, WT/REG62/N/2, WT/REG18/N/3 and WT/REG11/N/4.
1 This is of relevance for the examination of the following agreements:  the Free-Trade
Agreements (FTAs) between the European Communities (E C) and Bulgaria, Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia;  the FTAs between EFTA and Bulgaria,
Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovenia;  the Central European Free Tradearea (CEFTA);  the FTAs between the Czech Republic an d Bulgaria, Estonia, Latvia and Lithuania;  the FTAs
between the Slovak Republic and Bulgaria, Latvia and Lithuania;  and the FTAs between Slovenia and Bulgaria,
Estonia, Latvia and Lithuania.WT/REG/GEN/N/1
Page 2
involved in the system.  Before the introducti on of European cumulation, trading of originating
products was seriously limited.
3. The advantages of the new system of cumulation of origin for producers and traders, both in
and outside the pan-European cumulation area, are significant.  Customs procedures are simplified by
the fact that once a product has been given “European origin” there is no need for the origin to beverified again.  For firms established in Europe , including foreign-owned firms, this means more
freedom in using input material or deciding in wh ich country to invest their production facilities.
With regard to third country materials, the new rules are generally more flexible due to the fact that
they provide for a general tolerance rule as well as alternative processing rules allowing more input of
third country materials.
4. The parties involved are conscious of the importance of this system of cumulation to third
parties and are willing to give further information on the matter both in the WTO Committee on Rules
of Origin and, in the context of the examination of individual agreements under GATT Article XXIV,
in the Committee on Regional Trade Agreements.WT/REG/GEN/N/1
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ANNEX I
Regional Agreements concerned by the European Cumulation of Origin
EC - EEA countries (Iceland, Norway, Liechtenstein) (EEA)
EC - Iceland (FTA)EC - Norway (FTA)
EC - Switzerland (FTA)
EC - Czech Republic (FTA)
EC - Slovak Republic (FTA)
EC - Slovenia (FTA)
EC - Hungary (FTA)
EC - Poland (FTA)EC - Bulgaria (FTA)
EC - Romania (FTA)
EC - Estonia (FTA)
EC - Latvia (FTA)
EC - Lithuania (FTA)Iceland, Liechtenstein, Norway, Switze rland (Stockholm Convention - EFTA)
EFTA States
2 - Czech Republic (FTA)
EFTA States - Slovak Republic (FTA)
EFTA States - Slovenia (FTA)
EFTA States - Hungary (FTA)EFTA States - Poland (FTA)
EFTA States - Bulgaria (FTA)
EFTA States - Romania (FTA)
EFTA States - Estonia (FTA)
EFTA States - Latvia (FTA)EFTA States - Lithuania (FTA)
Czech Republic, Hungary, Poland, Romania, Slovak Republic, Slovenia (CEFTA)
Czech Republic - Bulgaria (FTA)
Slovak Republic - Bulgaria (FTA)
Slovenia - Bulgaria (FTA)
Czech Republic - Estonia (FTA)
Czech Republic - Lithuania (FTA)Czech Republic - Latvia (FTA)
Slovak Republic - Estonia (FTA)
Slovak Republic - Lithuania (FTA)
Slovak Republic - Latvia (FTA)
Slovenia - Lithuania (FTA)Slovenia - Latvia (FTA)
Slovenia - Estonia (FTA)
                                                     
2 Iceland, Liechtenstein, Norway, Switzerland.WT/REG/GEN/N/1
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ANNEX II
Council Decision No.3/96 of the Association Council, Association between the
European Communities and their Member States, of the one part,
and the Czech Republic, of the other part
of 29 November 1996
amending Protocol 4 to the Europe Agreement establishing an association
between the European Communities and their Member States, of the one part,
and the Czech Republic, of the other part
(96/751/Euratom, ECSC, EC)
The Association Council,
Having regard  to the Europe Agreement establishing an association between the European
Communities and their Member States, of the one part, and the Czech Republic, of the other part3
signed in Brussels on 4 October 1993, and in particular Article 33 of Protocol 4 thereof,
Whereas  an extended system of cumulation is desirable making possible the use of materials
originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic,Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area, Iceland,
Norway or Switzerland, in order to facilitate trade and improve the effectiveness of the Agreement,
modifications to the definition of the concept of originating products are required;
Whereas , in order for the Agreement to apply to goods originating in Andorra or San Marino,
it is necessary to provide for such a possibility by way of a Joint Declaration on Protocol 4;
Whereas  for the purposes of implementing the extended system of cumulation and in order to
avoid circumvention of customs duties, it is nece ssary to introduce new provisions into Protocol 4
concerning the prohibition of drawback of, or exemption from, customs duties;
Whereas  in order to further facilitate trade and to simplify administrative burdens, it is
necessary to amend the processing requirements laid down in the Protocol for non-originating
materials to obtain originating status and the provisions concerning proof of origin;
Whereas , certain processing requirements for non-originating materials to obtain originating
status need to be amended to take account of the evolution of process techniques;  whereas, in thelight of experience, the presentation of the list of processing rules could be improved by extending it
to cover all headings of the Harmonized System (HS);  whereas, technical modifications of these
processing rules are required to take account of modifications to the HS which take effect from
1 January 1996;
Whereas, it is therefore appropriate for the proper functioning of the Agreement to
incorporate in a single text all the provisions in question with a view to facilitating the work of users
and customs administrations,
Has decided as follows:
                                                     
3 OJ No. L 360, 31.12.1994, p.2WT/REG/GEN/N/1
Page 5
Article 1
Protocol 4 shall be replaced by the text attached hereto, together with the relevant
Joint Declarations.
Article 2
That Decision shall enter into force on 1 January 1997.
Done at Brussels, 12 December 1996.
For the Association Council
The President
J. ZIELENIECWT/REG/GEN/N/1
Page 6
PROTOCOL NO. 4
concerning the definition of the concept of 'originating products'
and methods of administrative cooperation
Table of Contents
TITLE I General Provisions
Article 1 Definitions
TITLE II Definition of the Concept of 'Originating Products'
Article 2 General Requirements
Article 3 Bilateral Cumulation of Origin
Article 4 Diagonal Cumulation of Origin
Article 5 Wholly Obtained Products
Article 6 Sufficiently Worked or Processed Products
Article 7 Insufficient Working or Processing Operations
Article 8 Unit of Qualification
Article 9 Accessories, Spare Parts and Tools
Article 10 Sets
Article 11 Neutral Elements
TITLE III Territorial Requirements
Article 12 Principle of Territoriality
Article 13 Direct Transport
Article 14 Exhibitions
TITLE IV Drawback or Exemption
Article 15 Prohibition of Drawback of, or Exemption from, Customs Duties
TITLE V Proof of Origin
Article 16 General Requirements
Article 17 Procedure for the Issue of a Movement Certificate EUR.1
Article 18 Movement Certificates EUR.1 Issued Retrospectively
Article 19 Issue of a Duplicate Movement Certificate EUR.1
Article 20 Issue of Movement Certificates EUR.1 on the basis of a Proof of
Origin issued or made out previously
Article 21 Conditions for making out an Invoice Declaration
Article 22 Approved Exporter
Article 23 Validity of Proof of Origin
Article 24 Submission of Proof of Origin
Article 25 Importation by Instalments
Article 26 Exemptions from Proof of Origin
Article 27 Supporting Documents
Article 28 Preservation of Proof of Origin and Supporting Documents
Article 29 Discrepancies and Formal Errors
Article 30 Amounts expressed in ECUWT/REG/GEN/N/1
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TITLE VI Arrangements for Administrative Cooperation
Article 31 Mutual Assistance
Article 32 Verification of Proofs of Origin
Article 33 Dispute Settlement
Article 34 Penalties
Article 35 Free Zones
TITLE VII Ceuta and Melilla
Article 36 Application of the Protocol
Article 37 Special Conditions
TITLE VIII Final Provisions
Article 38 Amendments to the ProtocolWT/REG/GEN/N/1
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TITLE I
General Provisions
Article 1
Definitions
For the purposes of this Protocol:
(a) 'manufacture' means any kind of working or processing including assembly or specific
operations;
(b) 'material' means any ingredient, raw material, component or part, etc., used in the
manufacture of the product;
(c) 'product' means the product being manufactured, even if it is intended for later use in another
manufacturing operation;
(d) 'goods' means both materials and products;(e) 'customs value' means the value as determin ed in accordance with the 1994 Agreement on
Implementation of Article VII of the General Agreement on Tariffs and Trade
(WTO Agreement on Customs Valuation);
(f) 'ex-works price' means the price paid for the product ex-works to the manufacturer in the
Community or the Czech Republic in whose undertaking the last working or processing iscarried out, provided the price includes the value of all the materials used, minus any internal
taxes which are, or may be, repaid when the product obtained is exported;
(g) 'value of materials' means the customs value at the time of importation of the non-originating
materials used, or, if this is not known and cannot be ascertained, the first ascertainable price
paid for the materials in the Community or the Czech Republic;
(h) 'value of originating materials' means the value of such materials as defined in
sub-paragraph (g) applied mutatis mutandis ;
(i) 'added value' shall be taken to be the ex-works price minus the customs value of each of the
products incorporated which did not originate in the country in which those products wereobtained;
(j) 'chapters' and 'headings' mean the chapters and the headings (four-digit codes) used in the
nomenclature which makes up the Harmonized Co mmodity Description and Coding System,
referred to in this Protocol as 'the Harmonized System' or 'HS';
(k) 'classified' refers to the classification of a product or material under a particular heading;WT/REG/GEN/N/1
Page 9
(l) 'consignment' means products which are either sent simultaneously from one exporter to one
consignee or covered by a single transport document covering their shipment from the
exporter to the consignee or, in the absence of such a document, by a single invoice;
(m) 'territories' includes territorial waters.
TITLE II
Definition of the Concept of 'Originating Products'
Article 2
General Requirements
1. For the purpose of implementing the Agreement, the following products shall be considered
as originating in the Community:
(a) products wholly obtained in the Community  within the meaning of Article 5 of this
Protocol;
(b) products obtained in the Community incorporating materials which have not been
wholly obtained there, provided that such materials have undergone sufficient
working or processing in the Community within the meaning of Article 6 of this
Protocol;
(c) goods originating in the European Economic Area (EEA) within the meaning of
Protocol No. 4 to the Agreemen t on the European Economic Area.
2. For the purpose of implementing this Agreemen t, the following products shall be considered
as originating in the Czech Republic:
(a) products wholly obtained in the Czech Republic within the meaning of Article 5 of
this Protocol;
(b) products obtained in the Czech Republic incorporating materials which have not been
wholly obtained there, provided that such materials have undergone sufficient
working or processing in the Czech Republic within the meaning of Article 6 of thisProtocol.
Article 3
Bilateral Cumulation of Origin
1. Materials originating in the Community shall be  considered as materials originating in the
Czech Republic when incorporated into a product obtained there.  It shall not be necessary that such
materials have undergone sufficient working or processing, provided they have undergone working or
processing going beyond that referred to in Article 7(1) of this Protocol.
2. Materials originating in the Czech Republic shall be considered as materials originating in the
Community when incorporated into a product obtain ed there.  It shall not be necessary that suchWT/REG/GEN/N/1
Page 10
materials have undergone sufficient working or processing, provided they have undergone working or
processing going beyond that referred to in Article 7(1) of this Protocol.
Article 4
Diagonal Cumulation of Origin
1. Subject to the provisions of paragraphs 2 and 3, materials originating in Poland, Hungary, the
Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, Iceland, Norway or
Switzerland within the meaning of the Agreements  between the Community and the Czech Republic
and these countries shall be considered as origin ating in the Community or the Czech Republic when
incorporated into a product obtained there.  It shall not be necessary that such materials haveundergone sufficient working or processing.
2. Products which have acquired originating status by virtue of paragraph 1 shall only continue
to be considered as products originating in the Community or the Czech Republic when the value
added there exceeds the value of the materials used originating in any one of the other countriesreferred to in paragraph 1.  If this is not so, the products concerned shall be considered as originating
in the country referred to in paragraph 1 which accounts for the highest value of originating materials
used.  In the allocation of origin, no account shall be taken of materials originating in the other
countries referred to in paragraph 1 which have undergone sufficient working or processing in the
Community or the Czech Republic.
3. The cumulation provided for in this Article may only be applied where the materials used
have acquired the status of originating products by an application of rules of origin identical to the
rules in this Protocol.  The Community and the Czech Republic shall provide each other, through the
European Commission with details of agreements and their corresponding rules of origin which havebeen concluded with the other countries referred to in paragraph 1.
4. The European Commission shall publish in the Official Journal of the European
Communities (C Series) the date on which the countries referred to in paragraph 1 have met the
obligations laid down in paragraph 3.
Article 5
Wholly Obtained Products
1. The following shall be considered as wholly obtained in the Community or the
Czech Republic:
(a) mineral products extracted from their soil or from their seabed;(b) vegetable products harvested there;
(c) live animals born and raised there;
(d) products from live animals raised there;(e) products obtained by hunting or fishing conducted there;(f) products of sea fishing and other products taken from the sea outside the territorial
waters of the Community or the Czech Republic by their vessels;WT/REG/GEN/N/1
Page 11
(g) products made aboard their factory ships exclusively from products referred to in
sub-paragraph (f);
(h) used articles collected there fit only for the recovery of raw materials, including used
tyres fit only for retreading or for use as waste;
(i) waste and scrap resulting from manufacturing operations conducted there;(j) products extracted from marine soil or subsoil outside their territorial waters provided
that they have sole rights to work that soil or subsoil;
(k) goods produced there exclusively from the products specified in sub-paragraph (a)
to (j).
2. The terms 'their vessels' and 'their factory ships' in paragraph 1(f) and (g) shall apply only to
vessels and factory ships:
(a) which are registered or recorded in an EC Member State or in the Czech Republic;
(b) which sail under the flag of an EC Member State or of the Czech Republic;(c) which are owned to an extent of at least 50 per cent by nationals of EC Member
States or of the Czech Republic, or by a company with its head office in one of these
States, of which the manager or managers, Chairman of the Board of Directors or the
Supervisory Board, and the majority of the members of such boards are nationals of
EC Member States or of the Czech Republic and of which, in addition, in the case of
partnerships or limited companies, at least half the capital belongs to those States orto public bodies or nationals of the said States;
(d) of which the master and officers are nationals of EC Member States or of the
Czech Republic;  and
(e) of which at least 75 per cent of the crew ar e nationals of EC Member States or of the
Czech Republic.
Article 6
Sufficiently Worked or Processed Products
1. For the purposes of Article 2, products which are not wholly obtained are considered to be
sufficiently worked or processed when the conditions set out in the list in Annex II are fulfilled.
The conditions referred to above indicate, for all products covered by this Agreement, the
working or processing which must be carried out on non-originating materials used in manufacturingand apply only in relation to such materials.  Acco rdingly, it follows that if a product, which has
acquired originating status by fulfilling the conditi ons set out in the list is used in the manufacture of
another product, the conditions applicable to the product in which it is incorporated do not apply to it,
and no account shall be taken of the non-originating materials which may have been used in its
manufacture.
2. Notwithstanding paragraph 1, non-originating ma terials which, according to the conditions set
out in the list, should not be used in the manufacture of a product may nevertheless be used, provided
that:WT/REG/GEN/N/1
Page 12
(a) their total value does not exceed 10 per cent of the ex-works price of the products;
(b) any of the percentages given in the list for the maximum value of non-originating
materials are not exceeded through the application of this paragraph.
This paragraph shall not apply to products falling within Chapters 50 to 63 of the Harmonized
System.
3. Paragraphs 1 and 2 shall apply except as provided in Article 7.
Article 7
Insufficient Working or Processing Operations
1. Without prejudice to paragraph 2, the following operations shall be considered as insufficient
working or processing to confer the status of originating products, whether or not the requirements ofArticle 6 are satisfied:
(a) operations to ensure the preservation of products in good condition during transport
and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur
dioxide or other aqueous solutions, removal of damaged parts, and like operations);
(b) simple operations consisting of removal of dust, sifting or screening, sorting,
classifying, matching (including the making-up of sets of articles), washing, painting,
cutting up;
(c) (i) changes of packaging and breaking up and assembly of packages;
(ii) simple placing in bottles, flasks, bags, cases, boxes, fixing on cards or
boards, etc., and all other simple packaging operations;
(d) affixing marks, labels and other like distinguishing signs on products or their
packaging;
(e) simple mixing of products, whether or not of different kinds, where one or more
components of the mixtures do not meet the conditions laid down in this Protocol to
enable them to be considered as originating in the Community or the Czech Republic;
(f) simple assembly of parts to constitute a complete product;(g) a combination of two or more operations specified in sub-paragraphs (a) to (f);(h) slaughter of animals.
2. All the operations carried out in either the Community or the Czech Republic on a given
product shall be considered together when determining whether the working or processing undergone
by that product is to be regarded as insufficient within the meaning of paragraph 1.WT/REG/GEN/N/1
Page 13
Article 8
Unit of Qualification
1. The unit of qualification for the application of the provisions of this Protocol shall be the
particular product which is considered as the basic unit when determining classification using the
nomenclature of the Harmonized System.
Accordingly, it follows that:(a) when a product composed of a group or assembly of articles is classified under the
terms of the Harmonized System in a single heading, the whole constitutes the unit of
qualification;
(b) when a consignment consists of a number of identical products classified under the
same heading of the Harmonized System, each product must be taken individuallywhen applying the provisions of this Protocol.
2. Where, under General Rule 5 of the Harmonized System, packaging is included with the
product for classification purposes, it shall be included for the purposes of determining origin.
Article 9
Accessories, Spare Parts and Tools
Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus
or vehicle, which are part of the normal equipment and included in the price thereof or which are not
separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus or
vehicle in question.
Article 10
Sets
Sets, as defined in General Rule 3 of the Harmonized System, shall be regarded as originating
when all component products are originating.  Nevertheless, when a set is composed of originating
and non-originating products, the set as a whole shall be regarded as originating, provided that the
value of the non-originating products does not exceed  15 per cent of the ex-works price of the set.
Article 11
Neutral Elements
In order to determine whether a product originates, it shall not be necessary to determine the
origin of the following which might be used in its manufacture:
(a) energy and fuel;
(b) plant and equipment;
(c) machines and tools;WT/REG/GEN/N/1
Page 14
(d) goods which do not enter and which are not intended to enter into the final
composition of the product.
TITLE III
Territorial Requirements
Article 12
Principle of territoriality
1. The conditions set out in Title II relative to the acquisition of originating status must be
fulfilled without interruption in the Community or the Czech Republic, except as provided for in
Article 2(1)(c) and Article 4.
2. If originating goods exported from the Community or the Czech Republic to another country
are returned, except insofar as provided for in Article 4 they must be considered as non-originating,
unless it can be demonstrated to the satisfaction of the customs authorities that:
(a) the goods returned are the same goods as those exported;  and
(b) they have not undergone any operation beyond that necessary to preserve them in
good condition while in that country or while being exported.
Article 13
Direct Transport
1. The preferential treatment provided for under the Agreement applies only to products,
satisfying the requirements of this Protocol, which are transported directly between the Community
and the Czech Republic or through the territories of the other countries referred to in Article 4.
However, products constituting one single consignment may be transported through other territories
with, should the occasion arise, trans-shipment or temporary warehousing in such territories, provided
that they remain under the surveillance of the customs authorities in the country of transit or
warehousing and do not undergo operations other than unloading, reloading or any operation designed
to preserve them in good condition.
Originating products may be transported by pipeline across territory other than that of the
Community or the Czech Republic.
2. Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied to the
customs authorities of the importing country by the production of:
(a) a single transport document covering the passage from the exporting country through
the country of transit;  or
(b) a certificate issued by the customs authorities of the country of transit:
(i) giving an exact description of the products;
(ii) stating the dates of unloading and reloading of the products and, where
applicable, the names of the ships, or the other means of transport used;  andWT/REG/GEN/N/1
Page 15
(iii) certifying the conditions under which the products remained in the transit
country;  or
(c) failing these, any substantiating documents.
Article 14
Exhibitions
1. Originating products, sent for exhibition in a country other than those referred to in Article 4
and sold after the exhibition for importation in the Community or the Czech Republic shall benefit on
importation from the provisions of the Agreement pr ovided it is shown to the satisfaction of the
customs authorities that:
(a) an exporter has consigned these products from the Community or the Czech Republic
to the country in which the exhibition is held and has exhibited them there;
(b) the products have been sold or otherwise disposed of by that exporter to a person in
the Community or the Czech Republic;
(c) the products have been consigned during the exhibition or immediately thereafter in
the state in which they were sent for exhibition;  and
(d) the products have not, since they were consigned for exhibition, been used for any
purpose other than demonstration at the exhibition.
2. A proof of origin must be issued or made out in accordance with the provisions of Title V and
submitted to the customs authorities of the importing  country in the normal manner.  The name and
address of the exhibition must be indicated thereon.  Where necessary, additional documentary
evidence of the conditions under which they have been exhibited may be required.
3. Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar
public show or display which is not organized for private purposes in shops or business premises with
a view to the sale of foreign products, and during which the products remain under customs control.
TITLE IV
Drawback or Exemption
Article 15
Prohibition of Drawback of, or Exemption from, Customs Duties
1. (a) Non-originating materials used in the manufacture of products originating in the
Community, in the Czech Republic or in one of the other countries referred to in
Article 4 for which a proof of origin is issued or made out in accordance with the
provisions of Title V shall not be subject in the Community or the Czech Republic to
drawback of, or exemption from, customs duties of whatever kind.
(b) Products falling within Chapter 3 an d heading Nos. 1604 and 1605 of the
Harmonized System and originating in th e Community within the meaning of thisWT/REG/GEN/N/1
Page 16
Protocol as provided for in Article 2(1)(c), for which a proof of origin is issued or
made out in accordance with the provisions of Title V shall not be subject in the
Community to drawback of, or exemption from, customs duties of whatever kind.
2. The prohibition is paragraph 1 shall apply to any arrangement for refund, remission or
non-payment, partial or complete, of customs duties or charges having an equivalent effect, applicable
in the Community or the Czech Republic to materials used in the manufacture and to products
covered by paragraph 1(b) above, where such refund, remission or non-payment applies, expressly or
in effect, when products obtained from the said materials are exported and not when they are retained
for home use there.
3. The exporter of products covered by a proof of origin shall be prepared to submit at any time,
upon request from the customs authorities, all appropriate documents proving that no drawback has
been obtained in respect of the non-originating materials used in the manufacture of the products
concerned and that all customs duties or charges having equivalent effect applicable to such materials
have actually been paid.
4. The provisions of paragraphs 1 to 3 shall al so apply in respect of packaging within the
meaning of Article 8(2), accessories, spare parts and tools within the meaning of Article 9 and
products in a set within the meaning of Article 10 when such items are non-originating.
5. The provisions of paragraphs 1 to 4 shall apply only in respect of materials which are of the
kind to which the Agreement applies.  Furthermore, they shall not preclude the application of an
export refund system for agricultural products, applicable upon export in accordance with the
provisions of the Agreement.
6. Notwithstanding paragraph 1, the Czech Republic may apply arrangements for drawback of,
or exemption from, customs duties or charges having  an equivalent effect, applicable to materials
used in the manufacture of originating prod ucts, subject to the following provisions:
(a) a 5 per cent rate of customs charge shall be retained in respect of products falling
within Chapters 25 to 49 and 64 to 97 of the Harmonized System, or such lower rate
as is in force in the Czech Republic;
(b) a 10 per cent rate of customs charge shall be retained in respect of products falling
within Chapters 50 to 63 of the Harmonized System, or such lower rate as is in force
in the Czech Republic.
The provisions of this paragraph shall apply until 31 December 1998 and may be reviewed by
common accord.
TITLE V
Proof of Origin
Article 16
General Requirements
1. Products originating in the Community shall, on importation into the Czech Republic and
products originating in the Czech Republic shall, on importation into the Community benefit from this
Agreement upon submission of either:WT/REG/GEN/N/1
Page 17
(a) a movement certificate EUR.1, a specimen of which appears in Annex III;  or
(b) in the cases specified in Article 21(1), a declaration, the text of which appears in
Annex IV, given by the exporter on an invoice, a delivery note or any othercommercial document which describes the products concerned in sufficient detail to
enable them to be identified (hereinafter referred to as the 'invoice declaration').
2. Notwithstanding paragraph 1, originating produc ts within the meaning of this Protocol shall,
in the cases specified in Article 26, benefit from this Agreement without it being necessary to submit
any of the documents referred to above.
Article 17
Procedure for the Issue of a Movement Certificate EUR.1
1. A movement certificate EUR.1 shall be issued by the customs authorities of the exporting
country on application having been made in writing by the exporter or, under the exporter's
responsibility, by his authorized representative.
2. For this purpose, the exporter or his authorized representative shall fill out both the movement
certificate EUR.1 and the application form, specimen s of which appear in Annex III.  These forms
shall be completed in one of the languages in which this Agreement is drawn up and in accordance
with the provisions of the domestic law of the exporting country.  If they are handwritten, they shall
be completed in ink in printed characters.  The description of the products must be given in the box
reserved for this purpose without leaving any blank lines.  Where the box is not completely filled, a
horizontal line must be drawn below the last line of the description, the empty space being crossedthrough.
3. The exporter applying for the issue of a movement certificate EUR.1 shall be prepared to
submit at any time, at the request of the customs authorities of the exporting country where the
movement certificate EUR.1 is issued, all appropriat e documents proving the originating status of the
products concerned as well as the fulfilment of the other requirements of this Protocol.
4. A movement certificate EUR.1 shall be issued by the customs authorities of an EC Member
State or the Czech Republic if the products concerned can be considered as products originating in the
Community, the Czech Republic or in one of the other countries referred to in Article 4 and fulfil the
other requirements of this Protocol.
5. The issuing customs authorities shall take any steps necessary to verify the originating status
of the products and the fulfilment of the other requirements of this Protocol.  For this purpose, they
shall have the right to call for any evidence and to carry out any inspection of the exporter's accounts
or any other check considered appropriate. The issuing customs authorities shall also ensure that the
forms referred to in paragraph 2 are duly completed.  In particular, they shall check whether the spacereserved for the description of the products has been completed in such a manner as to exclude all
possibility of fraudulent additions.
6. The date of issue of the movement certificate EUR.1 shall be indicated in Box 11 of the
certificate.
7. A movement certificate EUR.1 shall be issued by the customs authorities and made available
to the exporter as soon as actual exportation has been effected or ensured.WT/REG/GEN/N/1
Page 18
Article 18
Movement Certificates EUR.1 Issued Retrospectively
1. Notwithstanding Article 17(7), a movement certificate EUR.1 may exceptionally be issued
after exportation of the products to which it relates if:
(a) it was not issued at the time of exportation because of errors or involuntary omissions
or special circumstances;  or
(b) it is demonstrated to the satisfaction of the customs authorities that a movement
certificate EUR.1 was issued but was not accepted at importation for technicalreasons.
2. For the implementation of paragraph 1, the exporter must indicate in his application the place
and date of exportation of the products to which the movement certificate EUR.1 relates, and state the
reasons for his request.
3. The customs authorities may issue a movement certificate EUR.1 retrospectively only after
verifying that the information supplied in the exporter's application agrees with that in the
corresponding file.
4. Movement certificates EUR.1 issued retrospectively must be endorsed with one of the
following phrases:
'NACHTRÄGLICH AUSGESTELLT', 'DÉLIVRÉ A POSTERIORI', 'RILASCIATO A
POSTERIORI', 'AFGEGEVEN A POSTERIORI', 'ISSUED RETROSPECTIVELY','UDSTEDT EFTERFØLGENDE', 'EK ∆OΘEN EK T ΩN', 'EXPEDIDO A POSTERIORI',
'EMITDO A POSTERIORI', 'ANNETTU JÄLKIKÄTEEN', 'UTFÄRDAT I EFTERHAND',
'VYSTAVENO DODATE ČNĔ'.
5. The endorsement referred to in paragraph 4 shall be inserted in the 'Remarks' box of the
movement certificate EUR.1.
Article 19
Issue of a Duplicate Movement Certificate EUR.1
1. In the event of theft, loss or destruction of a movement certificate EUR.1, the exporter may
apply to the customs authorities which issued it for a duplicate made out on the basis of the export
documents in their possession.
2. The duplicate issued in this way must be endorsed with one of the following words:
'DUPLIKAT', 'DUPLICATA', 'DUPLICATO', 'DUPLICAAT', 'DUPLICATE',
'ANTIΓPAФO', 'DUPLICADO', 'SEGUNDA VIA', 'KAKASOISKAPPALE', 'DUPLIKÁT'.
3. The endorsement referred to in paragraph 2 shall be inserted in the 'Remarks' box of the
duplicate movement certificate EUR.1.
4. The duplicate, which must bear the date of issue of the original movement certificate EUR.1,
shall take effect as from that date.WT/REG/GEN/N/1
Page 19
Article 20
Issue of Movement Certificates EUR.1 on the basis of a Proof of Origin
issued or made out previously
When originating products are placed under the control of a customs office in the Community
or the Czech Republic, it shall be possible to replace the original proof of origin by one or more
movement certificates EUR.1 for the purpose of sending all or some of these products elsewhere
within the Community or the Czech Republic.  The replacement movement certificate(s) EUR.1 shall
be issued by the customs office under whose control the products are placed.
Article 21
Conditions for making out an Invoice Declaration
1. An invoice declaration as referred to in Article 16(1)(b) may be made out:
(a) by an approved exporter within the meaning of Article 22, or
(b) by any exporter for any consignment consisting of one or more packages containing
originating products whose total value does not exceed ECU 6,000.
2. An invoice declaration may be made out if the products concerned can be considered as
products originating in the Community, the Czech Republic or in one of the other countries referred to
in Article 4 and fulfil the other requirements of this Protocol.
3. The exporter making out an invoice declaration shall be prepared to submit at any time, at the
request of the customs authorities of the exporting country, all appropriate documents proving the
originating status of the products concerned as well as the fulfilment of the other requirements of this
Protocol.
4. An invoice declaration shall be made out by th e exporter by typing, stamping or printing on
the invoice, the delivery note or another commerci al document, the declaration, the text of which
appears in Annex IV, using one of the linguistic versions set out in that Annex and in accordance withthe provisions of the domestic law of the exporting country.  If the declaration is handwritten, it shall
be written in ink in printed characters.
5. Invoice declarations shall bear the original signature of the exporter in manuscript.  However,
an approved exporter within the meaning of Article 22 shall not be required to sign such declarations
provided that he gives the customs authorities of the exporting country a written undertaking that he
accepts full responsibility for any invoice declaration which identifies him as if it had been signed in
manuscript by him.
6. An invoice declaration may be made out by the exporter when the products to which it relates
are exported, or after exportation on condition that it is presented in the importing country no longer
than two years after the importation of the products to which it relates.
Article 22
Approved Exporter
1. The customs authorities of the exporting country may authorize any exporter who makes
frequent shipments of products under this Agreement to make out invoice declarations irrespective ofWT/REG/GEN/N/1
Page 20
the value of the products concerned.  An exporter seeking such authorization must offer to the
satisfaction of the customs authorities all guarantees necessary to verify the originating status of the
products as well as the fulfilment of the other requirements of this Protocol.
2. The customs authorities may grant the status of approved exporter subject to any conditions
which they consider appropriate.
3. The customs authorities shall grant to the approved exporter a customs authorization number
which shall appear on the invoice declaration.
4. The customs authorities shall monitor the use of the authorization by the approved exporter.
5. The customs authorities may withdraw the authorization at any time.  They shall do so where
the approved exporter no longer offers the guarantees referred to in paragraph 1, does not fulfil the
conditions referred to in paragraph 2 or otherwise makes an incorrect use of the authorization.
Article 23
Validity of Proof of Origin
1. A proof of origin shall be valid for four m onths from the date of issue in the exporting
country, and must be submitted within the said period to the customs authorities of the importingcountry.
2. Proofs of origin which are submitted to the customs authorities of the importing country after
the final date for presentation specified in paragraph 1 may be accepted for the purpose of applying
preferential treatment, where the failure to submit these documents by the final date set is due toexceptional circumstances.
3. In other cases of belated presentations, the customs authorities of the importing country may
accept the proofs of origin where the products have been submitted before the said final date.
Article 24
Submission of Proof of Origin
Proofs of origin shall be submitted to the customs authorities of the importing country in
accordance with the procedures applicable in that country.  The said authorities may require a
translation of a proof of origin and may also require the import declaration to be accompanied by astatement from the importer to the effect that the products meet the conditions required for the
implementation of the Agreement.
Article 25
Importation by Instalments
Where, at the request of the importer and on the conditions laid down by the customs
authorities of the importing country, dismantled or non-assembled products within the meaning of
General Rule 2(a) of the Harmonized System falling within Sections XVI and XVII or headingnos. 7308 and 9406 of the Harmonized System are impor ted by instalments, a single proof of origin
for such products shall be submitted to the customs authorities upon importation of the first
instalment.WT/REG/GEN/N/1
Page 21
Article 26
Exemptions from Proof of Origin
1. Products sent as small packages from private persons to private persons or forming part of
travellers' personal luggage shall be admitted as originating products without requiring the submission
of a proof origin, provided that such products are not imported by way of trade and have been
declared as meeting the requirements of this Protocol and where there is no doubt as to the veracity of
such a declaration.  In the case of products sent by post, this declaration can be made on the customs
declaration C2/CP3 or on a sheet of paper annexed to that document.
2. Imports which are occasional and consist solely of products for the personal use of the
recipients or travellers or their families shall not be considered as imports by way of trade if it is
evident from the nature and quantity of the products that no commercial purpose is in view.
3. Furthermore, the total value of these products shall not exceed ECU500 in the case of small
packages or ECU1,200 in the case of products forming part of travellers' personal luggage.
Article 27
Supporting Documents
The documents referred to in Articles 17(3) and 21(3) used for the purpose of proving that
products covered by a movement certificate EUR.1 or an invoice declaration can be considered as
products originating in the Community, the Czech Republic or in one of the other countries referred to
in Article 4 and fulfil the other requirements of this Protocol may consist inter alia  of the following:
(a) direct evidence of the processes carried ou t by the exporter or supplier to obtain the
goods concerned, contained for example in his accounts or internal bookkeeping;
(b) documents proving the originating status of materials used, issued or made out in the
Community or the Czech Republic where these documents are used in accordance
with domestic law;
(c) documents proving the working or processing of materials in the Community or the
Czech Republic, issued or made out in the Community or the Czech Republic, where
these documents are used in accordance with domestic law;
(d) movement certificates EUR.1 or invoice declarations proving the originating status of
materials used, issued or made out in the Community or the Czech Republic in
accordance with this Protocol, or in one of the other countries referred to in Article 4,
in accordance with rules of origin which are identical to the rules in this Protocol.
Article 28
Preservation of Proof of Origin and Supporting Documents
1. The exporter applying for the issue of a movement certificate EUR.1 shall keep for at least
three years the documents referred to in Article 17(3).
2. The exporter making out an invoice declaration shall keep for at least three years a copy of
this invoice declaration as well as the documents referred to in Article 21(3).WT/REG/GEN/N/1
Page 22
3. The customs authorities of the exporting country issuing a movement certificate EUR.1 shall
keep for at least three years the application form referred to in Article 17(2).
4. The customs authorities of the importing country shall keep for at least three years the
movement certificates EUR.1 and the invoice declarations submitted to them.
Article 29
Discrepancies and Formal Errors
1. The discovery of slight discrepancies between the statements made in the proof of origin and
those made in the documents submitted to the customs office for the purpose of carrying out theformalities for importing the products shall not ipso facto  render the proof of origin null and void if it
is duly established that this document does correspond to the products submitted.
2. Obvious formal errors such as typing errors on a proof of origin should not cause this
document to be rejected if these errors are not such as to create doubts concerning the correctness ofthe statements made in this document.
Article 30
Amounts expressed in ECU
1. Amounts in the national currency of the exporting country equivalent to the amounts
expressed in ECU shall be fixed by the exporting country and communicated to the importing
countries through the European Commission.
2. When the amounts exceed the corresponding amounts fixed by the importing country, the
latter shall accept them if the products are invoiced in the currency of the exporting country.  When
the products are invoiced in the currency of another EC Member States or another country referred to
in Article 4, the importing country shall recognize the amount notified by the country concerned.
3. The amounts to be used in any given national currency shall be the equivalent in that national
currency of the amounts expressed in ECU as at the first working day in October 1996.
4. The amounts expressed in ECU and their equivalents in the national currencies of the
Member States and the Czech Republic shall be reviewed by the Association Committee at the request
of the Community or the Czech Republic.  When carrying out this review, the Association Committee
shall ensure that there will be no decrease in the amounts to be used in any national currency and shallfurthermore consider the desirability of preserving the effects of the limits concerned in real terms.
For this purpose, it may decide to modify the amounts expressed in EUC.
TITLE VI
Arrangements for Administrative Cooperation
Article 31
Mutual Assurance
1. The customs authorities of the EC Member States and of the Czech Republic shall provide
each other, through the European Commission, with specimen impressions of stamps used in theirWT/REG/GEN/N/1
Page 23
customs offices for the issue of movement certificates EUR.1 and with the addresses of the customs
authorities responsible for verifying those certificates and invoice declarations.
2. In order to ensure the proper application of this Protocol, the Community and the
Czech Republic shall assist each other, through the competent customs administrations, in checkingthe authenticity of the movement certificates EUR.1 or the invoice declarations and the correctness of
the information given in these documents.
Article 32
Verification of Proofs and Origin
1. Subsequent verifications of proofs of origin shall be carried out at random or whenever the
customs  authorities of the importing country have reasonable doubts as to the authenticity of such
documents, the originating status of the products concerned or the fulfilment of the other requirements
of this Protocol.
2. For the purposes of implementing the provisions of paragraph 1, the customs authorities of
the importing country shall return the movement certificate EUR.1 and the invoice, if it has been
submitted, the invoice declaration, or a copy of these documents, to the customs authorities of the
exporting country giving, where appropriate, the reasons for the enquiry.  Any documents and
information obtained suggesting that  the information given on the proof of origin is incorrect shall be
forwarded in support of the request for verification.
3. The verification shall be carried out by the customs authorities of the exporting country.  For
this purpose, they shall have the right to call for any evidence and to carry out any inspection of the
exporter's accounts or any other check considered appropriate.
4. If the customs authorities of the importing country decide to suspend the granting of
preferential treatment to the products concerned while awaiting the results of the verification, release
of the products shall be offered to the importer subject to any precautionary measures judged
necessary.
5. The customs authorities requesting the verifica tion shall be informed of the results of this
verification as soon as possible.  These results must indicate clearly whether the documents are
authentic and whether the products concerned can be considered as products originating in the
Community, the Czech Republic or one of the other countries referred to in Article 4 and fulfil the
other requirements of this Protocol.
6. If in cases of reasonable doubt there is no reply within ten months of the date of the
verification request or if the reply does not contain sufficient information to determine the authenticity
of the document in question or the real origin of the products, the requesting customs authorities shall,
except in exceptional circumstances, refuse entitlement to the preferences.
Article 33
Dispute Settlement
Where disputes arise in relation to the verification procedures of Article 32 which cannot be
settled between the customs authorities requesting a verification and the customs authorities
responsible for carrying out this verification or where they raise a question as to the interpretation of
this Protocol, they shall be submitted to the Association Committee.WT/REG/GEN/N/1
Page 24
In all cases the settlement of disputes between the importer and the customs authorities of the
importing country shall be under the legislation of the said country.
Article 34
Penalties
Penalties shall be imposed on any person who draws up, or causes to be drawn up, a
document which contains incorrect information for the purpose of obtaining a preferential treatment
for products.
Article 35
Free Zones
1. The Community and the Czech Republic shall take all necessary steps to ensure that products
traded under cover of a proof of origin which in the course of transport use a free zone situated intheir territory, are not substituted by other goods and do not undergo handling other than normal
operations designed to prevent their deterioration.
2. By means of an exemption to the provisions contained in paragraph 1, when products
originating in the Community or the Czech Republic are imported into a free zone under cover of aproof of origin and undergo treatment or processing, the authorities concerned shall issue a new
EUR.1 certificate at the exporter's request, if the treatment or processing undergone is in conformity
with the provisions of this Protocol.
TITLE VII
Ceuta and Melilla
Article 36
Application of the Protocol
1. The term 'Community' used in Article 2 does not cover Ceuta and Melilla.2. Products originating in the Czech Republic, when imported into Ceuta or Melilla, shall enjoy
in all respects the same customs regime as that which is applied to products originating in the customsterritory of the Community under Protocol 2 of the Act of Accession of the Kingdom of Spain and the
Portuguese Republic to the European Communities.  The Czech Republic shall grant to imports of
products covered by the Agreement and originating in Ceuta and Melilla the same customs regime as
that which is granted to products imported from and originating in the Community.
3. For the purpose of the application of paragraph 2 concerning products originating in Ceuta
and Melilla, this Protocol shall apply mutatis mutandis  subject to the special conditions set out in
Article 37.WT/REG/GEN/N/1
Page 25
Article 37
Special Conditions
1. Providing they have been transported directly in accordance with the provisions of Article 13,
the following shall be considered as:
(1) products originating in Ceuta and Melilla:
(a) products wholly obtained in Ceuta and Melilla;(b) products obtained in Ceuta and Melilla in the manufacture of which products other
than those referred to in (a) are used, provided that:
(i) the said products have undergone sufficient working or processing within the
meaning of Article 6 of this Protocol;  or that
(ii) those products are originating in the Czech Republic or the Community
within the meaning of this Protocol, provided that they have been submitted
to working or processing which goes beyond the insufficient working or
processing referred to in Article 7(1);
(2) products originating in the Czech Republic:
(a) products wholly obtained in the Czech Republic;(b) products obtained in the Czech Republic, in the manufacture of which products other
than those referred to in (a) are used, provided that:
(i) the said products have undergone sufficient working or processing within the
meaning of Article 6of this Protocol;  or that
(ii) those products are originating in Ceuta and Melilla or the Community within
the meaning of this Protocol, provided that they have been submitted toworking or processing which goes beyond the insufficient working or
processing referred to in Article 7(1).
2. Ceuta and Melilla shall be considered as a single territory.
3. The exporter or his authorized representative shall enter 'the Czech Republic' and 'Ceuta and
Melilla' in Box 2 of movement certificates EUR.1 or on invoice declarations.  In addition, in the case
of products originating in Ceuta and Melilla, this shall be indicated in Box 4 of movement certificates
EUR.1 or on invoice declarations.
4. The Spanish customs authorities shall be responsible for the application of this Protocol in
Ceuta and Melilla.WT/REG/GEN/N/1
Page 26
TITLE VIII
Final Provisions
Article 38
Amendments to the Protocol
The Association Council may decide to amend the provisions of this Protocol.WT/REG/GEN/N/1
Page 27
ANNEX I
Introductory Notes to the List in Annex II
Note 1
The list sets out the conditions required for all products to be considered as sufficiently
worked or processed within the meaning of Article 6 of the Protocol.
Note 2
2.1 The first two columns in the list describe the product obtained.  The first column gives the
heading number or chapter number used in the Harmonized System 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 or 4.  Where, in some cases, the entry
in the fist column is preceded by an 'ex', this signifies that the rules in columns 3 or 4 apply
only to the part of that heading as described in column 2.
2.2. Where several heading numbers are grouped together in column 1 or a chapter number is
given and the description of products in column 2 is therefore given in general terms, the
adjacent rules in columns 3 or 4 apply to all products which, under the Harmonized System,
are classified in headings of the chapter or in any of the headings grouped together incolumn 1.
2.3 Where there are different rules in the list applying to different products within a heading, each
indent contains the description of that part of the heading covered by the adjacent rules in
columns 3 or 4.
2.4 Where, for an entry in the fist two columns, a rule is specified in both columns 3 and 4, the
exporter may opt, as an alternative, to apply either the rule set out in column 3 or that set out
in column 4.  If no origin rule is given in column 4, the rule set out in column 3 has to be
applied.
Note 3
3.1 The provisions of Article 6 of the Protocol concerning products having acquired originating
status which are used in the manufacture of other products apply regardless of whether this
status has been acquired inside the factory where these products are used or in another factory
in the Community or in the Czech Republic.
Example :
An engine of heading No. 8407, for which the rule  states that the value of the non-originating
materials which may be incorporated may not exceed 40 per cent of the ex-works price, is
made from 'other alloy steel roughly shaped  by forging' of heading No. ex 7224.
If this forging has been forged in the Comm unity from a non-originating ingot, it has already
acquired originating status by virtue of the ru le for heading No. ex 7224 in the list.  The
forging can then count as originating in the value calculation for the engine regardless of
whether it was produced in the same factory or in another factory in the Community.  The
value of the non-originating ingot is thus not taken into account when adding up the value of
the non-originating materials used.WT/REG/GEN/N/1
Page 28
3.2 The rule in the list represents the minimum amount of working or processing required and the
carrying out of more working or processing also confers originating status;  conversely, the
carrying out of less working or processing cannot confer originating status.  Thus if a rule
provides that non-originating material at a certain level of manufacture may be used, the use
of such material at an earlier stage of manufacture is allowed and the use of such material at alater stage is not.
3.3 Without prejudice to Note 3.2 where a rule states that 'materials of any heading' may be used,
materials of the same heading as the product may also be used, subject, however, to any
specific limitations which may also be contained in the rule.  However, the expression
'manufacture from materials of any heading, including other materials of heading No. …'
means that only materials classified in the same heading as the product of a differentdescription than that of the product as given in column 2 of the list may be used.
3.4 When a rule in the list specifies that a product may be manufactured from more than one
material, this means that any one or more materials may be used.  It does not require that all
be used.
Examples :
The rule for fabrics of heading Nos. 5208 to 5212 provides that natural fibres may be used
and that chemical materials, among other materials, may also be used.  This does not meanthat both have to be used;  it is possible to use one or the other or both.
3.5 Where a rule in the list specifies that a product must be manufactured from a particular
material, the condition obviously does not prevent the use of other materials which, because
of their inherent nature, cannot satisfy the rule.  (See also Note 6.2 below in relation totextiles.)
Example :
The rule for prepared foods of heading No. 1904 which specifically excludes the use of
cereals and their derivatives does not prevent the use of mineral salts, chemicals and other
additives which are not products from cereals.
However, this does not apply to products which, although they cannot be manufactured from
the particular materials specified in the list, can be produced from a material of the same
nature at an earlier stage of manufacture.
Example :
In the case of an article of apparel of ex Chapter 62 made from non-woven materials, if the
use of only non-originating yarn is allowed for this class of article, it is not possible to start
from non-woven cloth – even if non-woven cloths  cannot normally be made from yarn.  In
such cases, the starting material would normally be at the stage before yarn – that is the fibre
stage.
3.6 Where, in a rule in the list, two percentages are given for the maximum value of
non-originating materials that can be used, then these percentages may not be added together.In other words, the maximum value of all the non-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.WT/REG/GEN/N/1
Page 29
Note 4
4.1 The term 'natural fibres' is used in the list to refer to fibres other than artificial or synthetic
fibres.  It is restricted to the stages before spinning takes place, including waste, and, unless
otherwise specified, includes fibres that have been carded, combed or otherwise processed butnot spun.
4.2 The term 'natural fibres' includes horsehair of heading No. 0503, silk of heading Nos. 5002
and 5003 as well as the wool fibres, fine or coarse animal hair of heading Nos. 5101 to 5105,
the cotton fibres of heading Nos. 5201 to 5203 and the other vegetable fibres of heading
Nos. 5301 to 5305.
4.3 The terms 'textile pulp', 'chemical materials' and 'paper-making materials' are used in the list
to describe the materials not classified in Chapters 50 to 63, which can be used to
manufacture artificial, synthetic or paper fibres or yarns.
4.4 The term 'man-made staple fibres' is used in the list to refer synthetic or artificial filament
tow, staple fibres or waste, of heading Nos. 5501 to 5507.
Note 5
5.1 Where for a given product in the list a reference is made to this note, the conditions set out in
column 3 shall not be applied to any basic text ile materials, used in the manufacture of this
product, which, taken together, represent 10 per cent or less of the total weight of all the basic
textile materials used.  (See also Notes 5.3 and 5.4 below.)
5.2 However, the tolerance mentioned in Note 5.1  may only be applied to mixed products which
have been made from two or more basic textile materials.
The following are the basic textile materials:- silk
- wool
- coarse animal hair- fine animal hair
- horsehair
- cotton
- paper-making materials and paper
-f l a x-t r u e  h e m p
- jute and other textile bast fibres
- sisal and other textile fibres of the genus Agave
- coconut, abaca, ramie and other vegetable textile fibres
- synthetic man-made filaments- artificial man-made filaments
- synthetic man-made staple fibres of polypropylene
- synthetic man-made staple fibres of polyester
- synthetic man-made staple fibres of polyamide
- synthetic man-made staple fibres of polyacrylonitrile- synthetic man-made staple fibres of polyimide
- synthetic man-made staple fibres of polytetrafluoroethylene
- synthetic man-made staple fibres of polyphenylene sulphide
- synthetic man-made staple fibres of polyvinyl chlorideWT/REG/GEN/N/1
Page 30
- other synthetic man-made staple fibres
- artificial man-made staple fibres of viscose
- other artificial man-made staple fibres
- yarn made of polyurethane segmented with flexible segments of polyether whether or
not gimped
- yarn made of polyurethane segmented with flexible segments of polyester whether or
not gimped
- products of heading No. 5603 (metallized yarn) incorporating strip consisting of a
core of aluminium foil or of a core of plastic film whether or not coated with
aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a
transparent or coloured adhesive between two layers or plastic film
- other products of heading No. 5605.
Example :
A yarn of heading No. 5205 made from cotton fibres of heading No. 5203 and synthetic staple
fibres of heading No. 5506 is a mixed yarn.  Therefore, non-originating synthetic staple fibresthat do not satisfy the origin rules (which require manufacture from chemical materials or
textile pulp) may be used up to a weight of 10 per cent of the yarn.
Example :
A woollen fabric of heading No. 5112 made from woollen yarn of heading No. 5107 and
synthetic yarn of staple fibres of heading No.5509 is a mixed fabric.  Therefore synthetic yarn
which does not satisfy the origin rules (which require manufacture from chemical materials or
textile pulp) or woollen yarn that does not satisfy the origin rules (which require manufacture
from natural fibres, not carded or combed or otherwise prepared for spinning) or a
combination of the two may be used provided their total weight does not exceed 10 per cent
of the weight of the fabric.
Example :
Tufted textile fabric of heading No. 5802 made from cotton yarn of heading No. 5205 and
cotton fabric of heading No. 5210 is only a mixed product if the cotton fabric is itself a mixedfabric being made from yarns classified in two separate headings or if the cotton yarns used
are themselves mixtures.
Example :
If the tufted textile fabric concerned had been made from cotton yarn of heading No. 5205
and synthetic fabric of heading No. 5407, then, obviously, the yarns used are two separate
basic textile materials and the tufted textile fabric is accordingly a mixed product.
Example :
A carpet with tufts made from both artificial yarns and cotton yarns and with a jute backing is
a mixed product because three basic textile materials are used.  Thus, any non-originating
materials that are at a later stage of manufacture than the rule allows may be used, provided
their total weight does not exceed 10 per cent of the weight of the textile materials of thecarpet.  Thus, both the jute backing and/or the artificial yarns could be imported at that stage
of manufacture, provided the weight conditions are met.WT/REG/GEN/N/1
Page 31
5.3 In the case of products incorporating 'yarn made of polyurethane segmented with flexible
segments of polyether whether or not gimped' this tolerance is 20 per cent in respect of this
yarn.
5.4 In the case of products incorporating 'strip consisting of a core of aluminium foil or of a core
of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm,sandwiched by means of an adhesive between tw o layers of plastic film', this tolerance is
30 per cent in respect of this strip.
Note 6
6.1 In the case of those textile products which are marked in the list by a footnote referring to this
note, textile materials, with the exception of linings and interlinings, which do not satisfy therule set out in the list in column 3 for the made-up product concerned may be used provided
that they are classified in a heading other than that of the product and that their value does not
exceed 8 per cent of the ex-works price of the product.
6.2 Without prejudice to Note 6.3, materials which are not classified within Chapters 50 to 63
may be used freely in the manufacture of textile products, whether or not they contain textiles.
Example :
If a rule in the list provides that for a particular textile item, such as trousers, yarn must be
used, this does not prevent the use of metal items, such as buttons, because buttons are not
classified within Chapters 50 to 63.  For the same reason, it does not prevent the use of
slide-fasteners even though slide-fasteners normally contain textiles.
6.3 Where a percentage rules applies, the value of materials which are not classified within
Chapters 50 to 63 must be taken into account when calculating the value of the
non-originating materials incorporated.
Note 7
7.1 For the purposes of heading Nos. ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403, the
'specific processes' are the following:
(a) vacuum distillation;
(b) redistillation by a very thorough fractionation process4;
(c) cracking;
(d) reforming;(e) extraction by means of selective solvents;
(f) the process comprising all the following operations:  processing with concentrated
sulphuric acid, oleum or sulphuric anhydride;  neutralization with alkaline agents;
decolorization and purification with naturally active earth, activated earth, activated
charcoal or bauxite;
(g) polymerization;
(h) alkylation;
(i) isomerization.
                                                     
4 See Additional Explanatory Note 4(b) to Chapter 27 of the Combined Nomenclature.WT/REG/GEN/N/1
Page 32
7.2 For the purposes of heading Nos. 2710, 2711 and 2712, the 'specific processes' are the
following:
(a) vacuum distillation;
(b) redistillation by a very thorough fractionation process5
(c) cracking;
(d) reforming;
(e) extraction by means of selective solvents;
(f) the process comprising all the following operations:  processing with concentrated
sulphuric acid, oleum or sulphuric anhydride;  neutralization with alkaline agents;
decolorization and purification with naturally active earth, activated earth, activatedcharcoal or bauxite;
(g) polymerization;
(h) alkylation;
(ij) isomerization;
(k) in respect of heavy oils falling within heading No. ex 2710 only, desulphurization
with hydrogen resulting in a reduction of at least 85 per cent of the sulphur content of
the products processed (ASTM D 1266-59 T method);
(l) in respect of products falling within heading No. 2710 only, deparaffining by a
process other than filtering;
(m) in respect of heavy oils falling within heading No. ex 2710 only, treatment with
hydrogen at a pressure of more than 20 bar and a temperature of more than 250
oC
with the use of a catalyst, other than to effect desulphurization, when the hydrogen
constitutes an active element in a chemical reaction.  The further treatment with
hydrogen of lubricating oils of heading No. ex 2710 (e.g. hydrofinishing or
decolorization) in order, more especially, to improve colour or stability shall not,however, be deemed to be a specific process;
(n) in respect of fuel oils falling with in heading No. ex 2710 only, atmospheric
distillation, on condition that less than 30 per cent of these products distil, by volume,
including losses, at 300
oC by the ASTM D 86 method;
(o) in respect of heavy oils other than gas oils and fuel oils falling within heading
No. ex 2710 only, treatment by means of a high-frequency electrical brush-discharge.
7.3 For the purpose of heading Nos. ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3 403,
simple operations such as cleaning, decanting, desalting, water separation, filtering,
colouring, marking, obtaining a sulphur content as a result of mixing products with different
sulphur content, any combination of these operations or like operations do not confer origin.
                                                     
5 See Additional Explanatory Note 4(b) to Chapter 27 of the Combined Nomenclature.WT/REG/GEN/N/1
Page 33
JOINT DECLARATION
on the Transitional Period concerning the issuing or making out of Documents
relating to the Proof of Origin
1. Until 31 December 1997, the competent customs authorities of the Community and of the
Czech Republic shall accept as valid proof of origin within the meaning of Protocol 4:
(i) long-term movement certificates EUR.1, issued within the context of this Agreement,
endorsed with the stamp of the competent customs office of the exporting State;
(ii) movement certificates EUR.1, endorsed beforehand with the stamp of the competent
customs office of the exporting State;
(iii) movement certificates EUR.1, issued within  the context of this Agreement, endorsed
by an approved exporter with a special stamp which has been approved by the
customs authorities of the exporting State;
(iv) EUR.2 forms, issued within the context of this Agreement.
2. Requests for subsequent verification of documents referred to above shall be accepted by the
competent customs authorities of the Community and of the Czech Republic for a period of two yearsafter the issuing and making out of the proof of origin concerned.  These verifications shall be carried
out in accordance with Title VI of Protocol 4 to this Agreement.
JOINT DECLARATION
concerning the Principality of Andorra
1. Products originating in the Principality of Ando rra falling within Chapters 25 to 97 of the
Harmonized System shall be accepted by the Czech Republic as originating in the Community within
the meaning of this Agreement.
2. Protocol 4 shall apply mutatis mutandis  for the purpose of defining the originating status of
the above-mentioned products.
JOINT DECLARATION
concerning the Republic of San Marino
1. Products originating in the Republic of San Marino shall be accepted by the Czech Republic
as originating in the Community with in the meaning of this Agreement.
2. Protocol 4 shall apply mutatis mutandis  for the purpose of defining the originating status of
the above-mentioned products.
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