# EUR-Lex - 52001PC0184(02) - EN

Important legal notice

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# 52001PC0184(02)

**Proposal for a Council and Commission Decision on the conclusion of a Euro-Mediterranean Association Agreement between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part /* COM/2001/0184 final – AVC 2001/0092 */ **

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Official Journal 304 E , 30/10/2001 P. 0002 - 0171 *

Proposal for a COUNCIL AND COMMISSION DECISION on the conclusion of a Euro-Mediterranean Association Agreement between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. The attached proposals constitute the legal instruments for the signature and conclusion of a Euro-Mediterranean Association Agreement between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part:

(i) Proposal for a Council Decision for the signature of the Agreement;

(ii) Proposal for a Council and Commission Decision for the conclusion of the Agreement.

2. Egypt's relations with the European Community are presently covered by the Co-operation Agreement signed in Brussels on 18 January 1977, as modified by subsequent protocols The EU-Egypt Co-operation Council agreed to a series of exploratory talks for a new Agreement and these began in 1994. The Council adopted its negotiating directives in December 1994 and the Commission formally launched the negotiations in January 1995. Progress was extremely slow with no less than ten revision draft texts produced during the four and a half years of negotiations.

3. Following considerable pressure from the EC and the Presidency on the Egyptian side to make progress, a final package was agreed by both negotiators following two intensive negotiating rounds in June 1999. This package was endorsed by the GAC of 21st June 1999. The EC at that point considered the negotiations to be closed and expressed itself ready to initial the final draft.

4. The Egyptian side also considered negotiations to be closed but delayed initialling for 18 months because of problems in finding a consensus in cabinet. During this period there was a ministerial visit to Brussels to present a formal request for clarification on a range of issues and such clarifications were duly given. The Egyptian side finally expressed themselves ready to proceed on 22nd January 2001 and the final draft was initialled by both sides in Brussels on 26th January 2001.

5. The proposed Association Agreement between the EU and Egypt will open a new era in bilateral relations and will consolidate the Euro-Mediterranean partnership launched by the 1995 Barcelona Declaration. It will contribute to peace and security in the region and will stimulate trade and economic relations between Egypt the EU and between Egypt and its Mediterranean partners.

6. The new EU/Egypt Association Agreement will be one of a series of broadly similar agreements between the EU and the countries of the region. Inspired by the 1995 Barcelona Declaration it forms the basis of a new Euro-Mediterranean Partnership covering security, economic, and social relations.

7. The Association Agreement focuses on the following main elements:

-A political, economic, social, and cultural dialogue with Egypt;

-provisions for enhanced regional co-operation, including the creation of a regional Euro-Mediterranean free trade area;

-the establishment of a free-trade area between the European Community and Egypt with improved concessions on agricultural products and the elimination of tariffs on industrial products within 12-15 years after the entry into force of the Agreement;

-provisions on the movement of persons, on the rights of establishment and supply of services; and on payments, competition and the movement of capital;

-provisions for economic and financial co-operation in a wide range of fields;

-provision for the establishment of an Association Council to supervise the implementation of the agreement, and of an Association Committee.

-The Association Council shall take measures to promote co-operation between the European Parliament and the Egyptian People's Assembly.

8. Having initialled the texts of the proposed agreement, the Commission requests the Council to formally approve the results of the negotiations and to engage the procedures required for the signature of this agreement. The Commission also presents its proposal for a decision to allow the Council and the Commission to proceed to the conclusion of the Agreement once it has been signed.

9. The procedures for the signature and the conclusion of the Agreement are different for the European Communities: (European Community, and European Coal and Steel Community):

a) as regards signature, the first indent, first sentence of Article 300 (2) of the EC Treaty provides for a separate Council Decision concerning the signing of the Agreement on behalf of the European Community; a similar act is not required under the ECSC Treaty

b) as regards conclusion of the Agreement:

-The Council concludes the Agreement on behalf of the European Community, after having received the assent of the European Parliament, by virtue of Article 310 of the Treaty;

-The Commission concludes the Agreement on behalf of the European Coal and Steel Community, by virtue of Article 95 of the ECSC Treaty, with the unanimous assent of the Council and following consultation of the Consultative Committee.

10. In line with the above the Commission requests the Council to:

(i) decide on the signature of the Agreement on behalf of the European Community

(ii) conclude the Agreement on behalf of the EC and give its assent and approval for conclusion by the ECSC.

The Agreement will only enter into force following ratification by all Member States.

2001/0092(AVC)

Proposal for a COUNCIL AND COMMISSION DECISION on the conclusion of a Euro-Mediterranean Association Agreement between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part

THE COUNCIL OF THE EUROPEAN UNION, THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community, and in particular Article 310 in conjunction with the second phrase of Article 300(2) and the second sub-paragraph of paragraph 3;

Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Article 95 thereof;

Having regard to the proposal from the Commission;

Having regard to the assent of the European Parliament [1];

[1] OJ C ...

After consultation of the Consultative Committee and with the assent of the Council pursuant to Article 95 of the Treaty establishing the European Coal and Steel Community;

Whereas the Euro-Mediterranean Association Agreement between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part, signed on behalf of the European Community, in [Brussels/Luxembourg] on ........2001, should be approved.

HAVE DECIDED AS FOLLOWS:

Article 1

The Euro-Mediterranean Association Agreement between the European Communities and their Member States, of the one part, and the Arab Republic of Egypt, of the other part, together with the Annexes and Protocols and exchange of letters annexed thereto, and the joint declarations and declarations by the European Community attached to the Final Act, are hereby approved on behalf of the European Community, and the European Coal and Steel Community.

The texts referred to in the first paragraph are attached to this Decision.

Article 2

1. The position to be taken by the Community within the Association Council - and within the Association Committee when the latter is empowered to act by the Association Council - shall be determined by the Council on the basis of a proposal by the Commission or, where appropriate, by the Commission, each in accordance with the corresponding provisions of the Treaties.

2. In accordance with Article 75 of the Association Agreement the President of the Council shall preside over the Association Council. A representative of the President of the Council shall preside over the Association Committee, in accordance with article 78.

3. The decision to publish the decisions of the Association Council and the Association Committee in the Official Journal of the European Communities shall be taken on a case-by-case basis by the Council and the Commission respectively.

Article 3

The President of the Council, on behalf of the European Community, is hereby authorised to designate the persons empowered to give the notification provided for in Article 92 of the Agreement. The President of the Commission is hereby authorised to designate the persons empowered to give the said notification on behalf of the European Coal and Steel Community.

Done at Brussels,

For the Council For the Commission

The President The President

ANNEX

EURO-MEDITERRANEAN AGREEMENT

ESTABLISHING AN ASSOCIATION

BETWEEN THE EUROPEAN COMMUNITIES

AND THEIR MEMBER STATES OF THE ONE PART,

AND THE ARAB REPUBLIC OF EGYPT OF THE OTHER PART

THE KINGDOM OF BELGIUM,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

IRELAND,

THE ITALIAN REPUBLIC,

THE GRAND DUCHY OF LUXEMBOURG,

THE KINGDOM OF THE NETHERLANDS,

THE AUSTRIAN REPUBLIC

THE PORTUGUESE REPUBLIC,

THE FINNISH REPUBLIC

THE KINGDOM OF SWEDEN

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

Contracting Parties to the Treaty establishing the EUROPEAN COMMUNITY and the Treaty establishing the EUROPEAN COAL AND STEEL COMMUNITY,

hereinafter referred to as the "Member States", and

the EUROPEAN COMMUNITY,

the EUROPEAN COAL AND STEEL COMMUNITY,

hereinafter referred to as "the Community",

of the one part,

and THE ARAB REPUBLIC OF EGYPT, hereinafter referred to as "Egypt",

of the other part,

CONSIDERING the importance of the existing traditional links between the Community, its Member States and Egypt, and the common values that they share,

CONSIDERING that the Community, its Member States and Egypt wish to strengthen those links and to establish lasting relations based on partnership and reciprocity;

CONSIDERING the importance which the Parties attach to the principles of the United Nations Charter, particularly the observance of human rights, democratic principles and political and economic freedoms which form the very basis of the Association,

DESIROUS of establishing and developing regular political dialogue on bilateral and international issues of mutual interest,

CONSIDERING the difference in economic and social development existing between Egypt and the Community and the need to strengthen the process of economic and social development in Egypt;

DESIROUS of enhancing their economic relations and, in particular, the development of trade, investment and technological co-operation, supported by a regular dialogue, on economic, scientific, technological, cultural, audio-visual and social matters with a view of improving mutual knowledge and understanding,

CONSIDERING the commitment of the Community and Egypt to free trade, and in particular to compliance with the rights and obligations arising out of the provisions of the General Agreement on Tariffs and Trade of 1994 and of the other multilateral agreements annexed to the agreement establishing the World Trade Organisation.

CONSCIOUS of the need to associate their efforts to strengthen political stability and economic development in the region through the encouragement of regional co-operation,

CONVINCED that the Association Agreement will create a new climate for their relations,

have agreed as follows:

Article 1

1. An Association is hereby established between the Community and its Member States of the one part and Egypt of the other part.

2. The aims of this Agreement are:

-to provide an appropriate framework for the political dialogue, allowing the development of close political relations between the Parties;

-to establish the conditions for the progressive liberalisation of trade in goods, services and capital;

-to foster the development of balanced economic and social relations between the Parties through dialogue and co-operation;

-to contribute to the economic and social development of Egypt;

-to encourage regional co-operation with a view to the consolidation of peaceful coexistence and economic and political stability;

-to promote co-operation in other areas which are of mutual interest.

Article 2

Relations between the Parties, as well as all the provisions of the Agreement itself, shall be based on respect of democratic principles and fundamental human rights as set out in the Universal Declaration on Human Rights, which guides their internal and international policy and constitutes an essential element of this Agreement .

TITLE I

POLITICAL DIALOGUE

Article 3

1. A regular political dialogue shall be established between the Parties. It shall strengthen their relations, contribute to the development of a lasting partnership and increase mutual understanding and solidarity.

2. The political dialogue and co-operation will aim, in particular, to:

-develop better mutual understanding and an increasing convergence of positions on international issues, and in particular on those issues likely to have substantial effects on one or the other party;

-enable each party to consider the position and interests of the other;

-enhance regional security and stability;

-promote common initiatives.

Article 4

The political dialogue shall cover all subjects of common interest, and, in particular peace, security, democracy and regional development.

Article 5

1. The political dialogue shall take place at regular intervals and whenever necessary, in particular:

(a) at ministerial level, mainly in the framework of the Association Council;

(b) at senior official level of Egypt of the one part, and of the Presidency of the Council and of the Commission of the other;

(c) by taking full advantage of all diplomatic channels including regular briefings by officials, consultations on the occasion of international meetings and contacts between diplomatic representatives in third countries;

(d) by any other means which would make a useful contribution to consolidating, developing and stepping up this dialogue.

2. There shall be a political dialogue between the European Parliament and the Egyptian People's Assembly.

TITLE II

FREE MOVEMENT OF GOODS

BASIC PRINCIPLES

Article 6

The Community and Egypt shall gradually establish a free trade area over a transitional period not exceeding twelve years from the entry into force of the present Agreement, according to the modalities set out in this Title and in conformity with the provisions of the General Agreement on Tariffs and Trade of 1994 and of the other multilateral agreements on trade in goods annexed to the agreement establishing the World Trade Organisation (WTO), hereinafter referred to as the GATT.

CHAPTER 1

INDUSTRIAL PRODUCTS

Article 7

The provisions of this Chapter shall apply to products originating in the Community and Egypt falling within Chapters 25 to 97 of the Combined Nomenclature and of the Egyptian Customs tariff with the exception of the products listed in Annex 1.

Article 8

Imports into the Community of products originating in Egypt shall be allowed free of customs duties and of any other charge having equivalent effect[ and free of quantitative restrictions and of any other restriction having equivalent effect].

Article 9

1. Customs duties and charges having equivalent effect applicable on import into Egypt of products originating in the Community listed in Annex 2 shall be gradually abolished in accordance with the following schedule:

-on the date of entry into force of this Agreement each duty and charge shall be reduced to 75% of the basic duty;

-one year after the date of entry into force of this Agreement each duty and charge shall be reduced to 50% of the basic duty;

-two years after the date of entry into force of this Agreement each duty and charge shall be reduced to 25% of the basic duty;

-three years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished.

2. Customs duties and charges having equivalent effect applicable on import into Egypt of the products originating in the Community listed in Annex 3 shall be gradually abolished in accordance with the following schedule:

-three years after the date of entry into force of this Agreement each duty and charge shall be reduced to 90 % of the basic duty;

-four years after the date of entry into force of this Agreement each duty and charge shall be reduced to 75% of the basic duty;

-five years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60% of the basic duty;

-six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 45% of the basic duty;

-seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 30% of the basic duty;

-eight years after the date of entry into force of this Agreement each duty and charge shall be reduced to 15% of the basic duty;

-nine years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished.

3. Customs duties and charges having equivalent effect applicable on import into Egypt of the products originating in the Community listed in Annex 4 shall be gradually abolished in accordance with the following schedule:

-five years after the date of entry into force of this Agreement each duty and charge shall be reduced to 95 % of the basic duty.

-six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 90% of the basic duty;

-seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 75% of the basic duty;

-height years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60% of the basic duty;

-nine years after the date of entry into force of this Agreement each duty and charge shall be reduced to 45% of the basic duty;

-ten years after the date of entry into force of this Agreement each duty and charge shall be reduced to 30% of the basic duty;

-eleven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 15% of the basic duty;

-twelve years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished.

4. Customs duties and charges having equivalent effect applicable on import into Egypt of the products originating in the Community listed in Annex 5 shall be gradually abolished in accordance with the following schedule:

-six years after the date of entry into force of this Agreement each duty and charge shall be reduced to 90% of the basic duty;

-seven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 80% of the basic duty;

-eight years after the date of entry into force of this Agreement each duty and charge shall be reduced to 70% of the basic duty;

-nine years after the date of entry into force of this Agreement each duty and charge shall be reduced to 60% of the basic duty;

-ten years after the date of entry into force of this Agreement each duty and charge shall be reduced to 50% of the basic duty;

-eleven years after the date of entry into force of this Agreement each duty and charge shall be reduced to 40% of the basic duty;

-twelve years after the date of entry into force of this Agreement each duty and charge shall be reduced to 30% of the basic duty;

-thirteen years after the date of entry into force of this Agreement each duty and charge shall be reduced to 20% of the basic duty;

-fourthteen years after the date of entry into force of this Agreement each duty and charge shall be reduced to 10% of the basic duty;

-fifteen years after the date of entry into force of this Agreement any remaining duty and charge shall be abolished.

5 Customs duties and charges having equivalent effect applicable to imports into Egypt of products originating in the Community , other than those in Annexes 2, 3, 4 and 5 shall be abolished in accordance with the relevant schedule on the basis of a decision of the Association Committee.

6. In the event of serious difficulties for a given product, the relevant timetables in accordance with paragraphs (1), (2), (3) and (4) may be reviewed by the Association Committee by common accord on the understanding that the schedule for which the review has been requested may not be extended in respect of the product concerned beyond the maximum transitional period. If the Association Committee has not taken a decision within thirty days of its application to review the timetable, Egypt may suspend the timetable provisionally for a period that may not exceed one year.

7. For each product concerned, the basic duty to be gradually reduced as provided in paragraphs (1), (2), (3), and (4) shall be the rates referred to in Article 18. Article 10

The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature.

Article 11

1. By way of derogation from the provisions of Article 9, Egypt may take exceptional measures of limited duration to increase or re-introduce customs duties.

2. Such measures may only apply to new and infant industries or to sectors undergoing restructuring or experiencing serious difficulties, particularly where those difficulties entail severe social problems.

3. Customs duties on import into Egypt of products originating in the Community that are introduced by such exceptional measures may not exceed 25% ad valorem, and must retain a preferential margin for products originating in the Community. The total value of imports of the products subjected to such measures may not exceed 20% of total imports of industrial products from the Community during the last year for which statistics are available.

4. Such measures shall be applied for no longer than five years, except where a longer duration is authorized by the Association Committee. They shall cease to apply at the latest on expiry of the maximum transitional period.

5. Such measures may not be introduced for a given product if more than three years have elapsed since the abolition of all duties, quantitative restrictions and charges and measures having equivalent effect on the product concerned.

6. Egypt shall inform the Association Committee of any exceptional measures it intends to adopt and, at the Community's request, consultations shall be held on the measures and sectors concerned before they are implemented. When adopting such measures, Egypt shall provide the Committee with a schedule for the abolition of the customs duties introduced pursuant to this Article. Such schedule shall provide for the phasing out of the duties concerned by equal annual instalments, starting no later than the end of the second year following their introduction. The Association Committee may decide on a different schedule.

7. By way of derogation from the provisions of paragraph 4, the Association Committee may exceptionally, in order to take into account the difficulties involved in setting up new industries, endorse the measures already taken by Egypt pursuant to paragraph 1 for a maximum period of four years beyond the 12 years transitional period.

CHAPTER 2

AGRICULTURAL, FISHERIES AND PROCESSED AGRICULTURAL PRODUCTS

Article 12

The provisions of this Chapter shall apply to products originating in the Community and Egypt falling within Chapters 1 to 24 of the Combined Nomenclature and of the Egyptian Customs tariff and to the products listed in Annex 1.

Article 13

The Community and Egypt shall progressively establish a greater liberalisation of their trade in agricultural, fisheries and processed agricultural products of interest to both parties.

Article 14

1. Agricultural products originating in Egypt listed in Protocol No. 1 on importation into the Community shall be subject to the arrangements set out in that Protocol.

2. Agricultural products originating in the Community listed in Protocol No. 2 on importation into Egypt shall be subject to the arrangements set out in that Protocol.

3. Trade for processed agricultural products falling under this chapter shall be subject to the arrangements set out in Protocol 3.

Article 15

1. During the third year of implementation of the agreement the Community and Egypt shall examine the situation in order to determine the measures to be applied by the Community and Egypt from the beginning of the fourth year after the entry into force of the agreement, in accordance with the objective set out in Article 13.

2. Without prejudice to the provisions of paragraph 1 and taking account of the volume of trade in agricultural, fisheries and processed agricultural products between them and of their particular sensitivity, the Community and Egypt shall examine in the Association Council, product by product and on an orderly and reciprocal basis, the possibility of granting each other further concessions.

Article 16

1. In the event of specific rules being introduced as a result of the implementation of its agricultural policy or of any alteration of the current rules or in the event of any alteration or extension of the provisions relating to the implementation of its agricultural policy, the Party concerned may amend the arrangements resulting from the Agreement in respect of the products concerned.

2. In such cases the Party concerned shall inform the Association Committee. At the request of the other Party, the Association Committee shall meet to take due account of the interests of the other Party.

3. If the Community or Egypt, in applying paragraph 1, modifies the arrangements made by this Agreement for agricultural products, they shall accord imports originating in the other Party an advantage comparable to that provided for in this Agreement.

4. The application of this Article should be the subject of consultations in the Association Council.

CHAPTER 3

COMMON PROVISIONS

Article 17

1. No new quantitative restrictions on imports or any other restriction having equivalent effect shall be introduced in trade between the Community and Egypt.

2. Quantitative restrictions on imports and any other restriction having equivalent effect in trade between the Community and Egypt shall be abolished from the entry into force of this Agreement.

3. The Community and Egypt shall not apply to exports between themselves either customs duties or charges having equivalent effect, or quantitative restrictions or measures having equivalent effect.

Article 18

1. The applicable rates for imports between the Parties shall be the WTO bound rate or lower applied rate enforced as of 1 January 1999. If, after 1 January 1999, a tariff reduction is applied on a erga omnes basis, the reduced rate shall apply.

2. No new customs duties on imports or exports, or charges having equivalent effect, shall be introduced, nor shall those already applied be increased, in trade between the Community and Egypt, unless this agreement provides otherwise.

3. The Parties shall communicate to each other their respective applied rates on 1 January 1999.

Article 19

1. Products originating in Egypt shall not, on importation into the Community, be accorded a treatment more favourable than that which the Member States apply among themselves.

2. Application of the provisions of this Agreement shall be without prejudice to the special provisions for the application of the Community law to the Canary Islands.

Article 20

1. The Parties shall refrain from any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products of one Party and like products originating in the territory of the other Party.

2. Products exported to the territory of one of the Parties may not benefit from repayment of indirect internal taxation in excess of the amount of indirect taxation imposed on them either directly or indirectly.

Article 21

1. The Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade, except insofar as they alter the trade arrangements provided for in the Agreement.

2. Consultation between the Parties shall take place within the Association Council concerning agreements establishing customs unions or free trade areas and, where requested, on other major issues related to their respective trade policy with third countries. In particular, in the event of a third country acceding to the Union, such consultation shall take place so as to ensure that account can be taken of the mutual interests of the Parties.

Article 22

If one of the Parties finds that dumping is taking place in trade with the other Party within the meaning of the provisions of Article VI of the GATT 1994, it may take appropriate measures against this practice in accordance with the WTO Agreement on the Implementation of Art. VI of the GATT 1994 and related internal legislation.

Article 23

Without prejudice to Article 34, the WTO Agreement on Subsidies and Countervailing Measures shall be applicable between the Parties.

Until the necessary rules referred to in Article 34 paragraph 2 are adopted, if either Party finds that subsidy is taking place in trade with the other party within the meanings of Articles VI and XVI of the GATT 1994, it may invoke appropriate measures against this practice in accordance with the WTO Agreement Agreement on Subsidies and Countervailing Measures and related internal legislation.

Article 24

1. The provisions of the Article XIX GATT 1994 and the WTO Agreement on Safeguards are applicable between the Parties.

2. Before applying safeguard measures pursuant to the provisions of the Article XIX GATT 1994 and the WTO Agreement on Safeguards, the Party intending to apply such measures shall supply the Association Committee with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties.

In order to find such a solution the Parties shall immediately hold consultations within the Association Committee. If, as a result of the consultations, the Parties do not reach an agreement within thirty days of the initiation of the consultations on a solution to avoid the application of the safeguard measures, the Party intending to apply safeguard measures may apply the provisions of the Article XIX GATT 1994 and the WTO Agreement on Safeguards.

3. In the selection of safeguard measures pursuant this article, the Parties shall give priority to those, which cause least disturbance to the achievement of the objectives of this agreement.

4. Safeguard measures shall be notified immediately to the Association Committee and shall be the subject of periodic consultations within the Committee, particularly with a view to their abolition as soon as circumstances permit.

Article 25

1. Where compliance with the provisions of Article 17 paragraph 3 leads to:

(i) re-export towards a third country against which the exporting party maintains, for the product concerned, quantitative export restrictions, export duties, or measures having equivalent effect, or

(ii) a serious shortage, or threat thereof, of a product essential to the exporting party;

and where the situations referred to above give rise, or are likely to give rise to major difficulties for the exporting party, that party may take appropriate measures, according to the procedures laid down in paragraph 2.

2. The difficulties arising from the situations referred to in paragraph 1 shall be submitted for examination to the Association Committee. The Committee may take any decision needed to put an end to the difficulties. If it has not taken such a decision within thirty days of the matter being referred to it, the exporting party may apply appropriate measures on the exportation of the product concerned. The measures shall be non-discriminatory and be eliminated when conditions no longer justify their maintenance.

Article 26

Nothing in this Agreement shall preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security, of the protection of health and life of humans, animals or plants, of the protection of national treasures possessing artistic, historic or archaeological value, of the protection of intellectual property or of regulations concerning gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.

Article 27

The concept of "originating products" for the application of the provisions of the present Title and the methods of administrative co-operation relating to them are set out in Protocol No. 4.

Article 28

The Combined Nomenclature of goods shall be applied to the classification of goods for imports into the Community. The Egyptian customs tariff shall be applied to the classification of goods for imports into Egypt.

TITLE III

RIGHT OF ESTABLISHMENT AND SUPPLY OF SERVICES

Article 29

1. The Parties reaffirm their respective commitments under the terms of the General Agreement on Trade in Services (GATS) annexed to the Agreement establishing the WTO, and in particular the commitment to accord each other most-favoured-nation treatment in trade in service sectors covered by these commitments.

2. In accordance with the GATS, this treatment shall not apply to:

a) advantages accorded by either Party under the provisions of an agreement as defined in Article V of the GATS or under measures adopted on the basis of such an agreement;

b) other advantages accorded pursuant to the list of most-favoured-nation exemptions annexed by either Party to the GATS.

Article 30

1. The Parties will consider extending the scope of the Agreement to include the right of establishment of companies of one Party in the territory of another Party and the liberalization of the supply of services by companies of one Party to service consumers in another Party.

2. The Association Council shall make the necessary recommendations for the implementation of the objective set out in paragraph 1.

When formulating these recommendations, the Association Council shall take into account the experience gained by the implementation of the MFN treatment granted to each other by the Parties in accordance with their respective obligations under the GATS , and in particular Article V thereof.

3. The objective set out in the first paragraph of this Article shall be subject to a first examination by the Association Council at the latest five years after the entry into force of this Agreement.

TITLE IV

CAPITAL MOVEMENTS AND OTHER ECONOMIC MATTERS

CHAPTER 1

PAYMENTS AND CAPITAL MOVEMENTS

Article 31

Subject to the provisions of Article 33, the Parties undertake to authorise, in fully convertible currency, any payments to the current account.

Article 32

1. The Community and Egypt will ensure, from the entry into force of the Agreement, the free circulation of capital for direct investments made in companies formed in accordance with the laws of the host country, and the liquidation or repatriation of these investments and of any profit stemming therefrom.

2. The Parties will hold consultations with a view to facilitating the movement of capital between the Community and Egypt and achieve its complete liberalisation as soon as conditions are met.

Article 33

Where one or several Member States of the Community or Egypt face or risk facing serious difficulties concerning balance of payments, the Community or Egypt respectively may, in conformity with the conditions laid down within the framework of the GATT and Articles VIII and XIV of the Statutes of the International Monetary Fund, take restrictive measures with regard to current payments if such measures are strictly necessary. The Community or Egypt, as appropriate, shall inform the other Party immediately thereof and shall provide as soon as possible a timetable for the removal of such measures.

CHAPTER 2

COMPETITION AND OTHER ECONOMIC MATTERS

Article 34

1. The following are incompatible with the proper functioning of the Agreement, in so far as they may affect trade between the Community and Egypt:

(i) all agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;

(ii) abuse by one or more undertakings of a dominant position in the territories of the Community or Egypt as a whole or in a substantial part thereof;

(iii) any public aid which distorts or threatens to distort competition by favoring certain undertakings or the production of certain goods.

2. The Association Council shall, within five years of the entry into force of the Agreement, adopt by decision the necessary rules for the implementation of paragraph 1.

Until these rules are adopted, the provisions of Article 23 shall be applied as regards the implementation of paragraph 1(iii).

3. Each Party shall ensure transparency in the area of public aid, inter alia by reporting annually to the other Party on the total amount and the distribution of the aid given and by providing, upon request, information on aid schemes. Upon request by one Party, the other Party shall provide information on particular individual cases of public aid.

4. With regard to agricultural products referred to in Title II, Chapter 2, paragraph 1(iii) does not apply. The WTO Agreement on Agriculture and the relevant provisions on WTO Agreement on Subsidies and Countervailing Duties shall apply with regard these products.

5. If the Community or Egypt considers that a particular practice is incompatible with the terms of the first paragraph of this Article, and:

-is not adequately dealt with under the implementing rules referred to in paragraph 2, or

-in the absence of such rules, and if such practice causes or threatens to cause serious prejudice to the interest of the other Party or material injury to its domestic industry, including its services industry,

-it may take appropriate measures after consultation within the Association Committee or after thirty working days following referral for such consultation.

With reference to practices incompatible with paragraph 1(iii) of the present Article, such appropriate measures, when the WTO rules are applicable to them, may only be adopted in accordance with the procedures and under the conditions laid down by the WTO or by any other relevant instrument negotiated under its auspices and applicable to the Parties.

6. Notwithstanding any provisions to the contrary adopted in conformity with paragraph 2, the Parties shall exchange information taking into account the limitations imposed by the requirements of professional and business secrecy.

Article 35

The Member States and Egypt shall progressively adjust, without prejudice to their commitments to the GATT, any State monopolies of a commercial character, so as to ensure that, by the end of the fifth year following the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States and Egypt. The Association Committee will be informed about the measures adopted to implement this objective.

Article 36

With regard to public enterprises and enterprises to which special or exclusive rights have been granted, the Association Council shall ensure that as from the fifth year following the date of entry into force of this Agreement there is neither enacted nor maintained any measure distorting trade between the Community and Egypt contrary to the Parties' interests. This provision should not obstruct the performance in law or in fact of the particular tasks assigned to these enterprises.

Article 37

1. Pursuant to the provisions of this article and of Annex 6, the Parties shall grant and ensure adequate and effective protection of intellectual property rights in accordance with the prevailing international standards, including effective means of enforcing such rights.

2. The implementation of this Article and of Annex 6 shall be regularly reviewed by the Parties. If problems in the area of intellectual property affecting trading conditions were to occur, urgent consultations shall be undertaken, at the request of either Party, with a view to reaching mutually satisfactory solutions.

Article 38

The Parties agree on the objective of a progressive liberalisation of public procurement. The Association Council will hold consultations on the implementation of this objective.

TITLE V

ECONOMIC COOPERATION

Article 39

Objectives

1. The Parties undertake to intensify economic cooperation in their mutual interest.

2. The aim of economic cooperation shall be to:

-encourage the implementation of the overall objectives of the Agreement;

-promote balanced economic relations between the Parties;

-support Egypt's own efforts to achieve sustainable economic and social development.

Article 40

Scope

1. Co-operation shall focus primarily on sectors suffering from internal difficulties or affected by the overall process of liberalisation of the Egyptian economy, and in particular by the liberalisation of trade between Egypt and the Community.

2. Similarly, cooperation shall focus on areas likely to bring the economies of the Community and Egypt closer together, particularly those which will generate growth and employment.

3. Co-operation shall encourage the implementation of measures designed to develop intra-regional co-operation.

4. Conservation of the environment and ecological balance shall be taken into account in the implementation of the various sectors of economic co-operation to which it is relevant.

5. The Parties may agree to extend the economic co-operation to other sectors not covered by the provisions of this Title.

Article 41

Methods and Modalities

Economic co-operation shall be implemented in particular by:

a) a regular economic dialogue between the Parties, which covers all areas of macro-economic policy;

b) regular exchange of information and ideas in every sector of co-operation including meetings of officials and experts;

c) transfer of advice, expertise and training;

d) implementation of joint actions such as seminars and workshops;

e) technical, administrative and regulatory assistance.

Article 42

Education and Training

The Parties shall cooperate with the objective of identifying and employing the most effective means to improve significantly education and vocational training, in particular with regard to public and private enterprises, trade-related services, public administrations and authorities, technical agencies, standardisation and certification bodies and other relevant organisations. In this context, the access of women to higher education and training will receive special attention.

Co-operation shall also encourage the establishment of links between specialized bodies in the Community and in Egypt and shall promote the exchange of information and experience and the pooling of technical resources.

Article 43

Scientific and Technological Co-operation

Co-operation shall have the objective of:

a) encouraging the establishment of durable links between the scientific communities of the Parties, notably through:

-the access of Egypt to Community R&D programmes, in conformity with existing provisions concerning the participation of third countries;

-the participation of Egypt in networks of decentralized co-operation;

-the promotion of synergy between training and research;

b) strengthening research capacity in Egypt;

c) stimulating technological innovation, transfer of new technologies, and dissemination of know-how.

Article 44

Environment

1. Co-operation shall aim at preventing deterioration of the environment, controlling pollution and ensuring the rational use of natural resources, with a view to ensuring sustainable development.

2. Co-operation shall focus, in particular, on:

-desertification;

-quality of Mediterranean water and the control and prevention of marine pollution;

-water resource management;

-energy management;

-waste management;

-salinisation;

-environmental management of sensitive coastal areas;

-the impact of industrial development and the safety of industrial plant in particular;

-the impact of agriculture on soil and water quality;

-environmental education and awareness.

Article 45

Industrial Co-operation

Co-operation shall promote and encourage in particular:

-the debate regarding industrial policy and competitiveness in an open economy;

-industrial co-operation between economic operators in the Community and in Egypt, including access for Egypt to the Community's networks for the rapprochement of businesses and to networks created in the context of decentralized co-operation;

-modernisation and restructuring of Egyptian industry;

-the establishment of an environment favourable to the development of private enterprise, in order to stimulate the growth and the diversification of industrial production;

-technology transfer, innovation and R&D;

-the enhancement of human resources;

-access to the capital market for the financing of productive investments.

Article 46

Investments and promotion of investments

Co-operation shall aim at increasing the flow of capital, expertise and technology to Egypt through, inter alia:

-appropriate means of identifying investment opportunities and information channels on investment regulations;

-providing information on European investment regimes (technical assistance, direct financial support, fiscal incentives, investment insurance etc.) related to outward investments and enhancing the possibility for Egypt to benefit from them.

-a legal environment conducive to investment between the two parties, where appropriate through the conclusion by the Member States and Egypt of investment protection agreements, and agreements to prevent double taxation.;

-examining the creation of joint ventures, especially for SMEs and, when appropriate, the conclusion of agreements between the Member States and Egypt.

-establishing mechanisms for encouraging and promoting investments

Co-operation may extend to the planning and implementation of projects demonstrating the effective acquisition and use of basic technologies, the use of standards, the development of human resources and the creation of jobs locally.

Article 47

Standardization and Conformity assessment

The Parties shall aim to reduce differences in standardization and conformity assessment. Co-operation in this field shall focus in particular on:

a) rules in the field of standardization, metrology, quality standards, and recognition of conformity, in particular as regards sanitary and phytosanitary standards for agricultural products and foodstuffs;

b) upgrading the level of Egyptian conformity assessment bodies, with a view to the establishment, in due time, of mutual recognition agreements in the area of conformity assessment;

c) developing structures for the protection of intellectual, industrial and commercial property, for standardization and for setting quality standards.

Article 48

Approximation of laws

The Parties shall use their best endeavours to approximate their respective laws in order to facilitate the implementation of this Agreement.

Article 49

Financial services

The Parties shall cooperate with a view to the rapprochement of their standards and rules, in particular:

a) to encourage the strengthening and restructuring of the financial sector in Egypt;

b) to improve accounting and supervisory and regulatory systems of banking, insurance and other parts of the financial sector in Egypt.

Article 50

Agriculture and Fisheries

Cooperation shall be aimed at:

a) the modernisation and restructuring of agriculture and fisheries, including: the modernisation of infrastructures and of equipment; the development of packaging, storage and marketing techniques; the improvement of private distribution channels;

b) the diversification of production and of external outlets, inter alia through the encouragement of joint ventures in the agri-business sector;

c) The promotion of cooperation in veterinary and phytosanitary matters and in growing techniques, with the objective of facilitating trade between the Parties. In this regard, the Parties shall exchange information.

Article 51

Transport

Cooperation shall be aimed at:

-the restructuring and modernisation of road, port and airport infrastructures linked to the main trans-European lines of communication of common interest;

-the establishment and enforcement of operating standards comparable to those prevailing in the Community;

-the upgrading of technical equipment for road/rail transport, container traffic and transhipment;

-the improvement of management of airports, railways and air traffic control, including cooperation between the relevant national bodies;

-the improvement of navigation aids.

Article 52

Information society and telecommunications

The Parties recognise that information and communication technologies constitute a key element of modern society, vital to economic and social development and a cornerstone of the emerging information society.

The co-operation activities between the Parties in this field shall aim at :

-a dialogue on issues related to the different aspects of the information society, including telecommunications policies;

-the exchanges of information and eventual technical assistance with regulatory matters, standardisation, conformity testing and certification in relation to information technologies and telecommunications;

-the diffusion of new information and communications technologies and the refinement of new applications in these fields;

-the implementation of joint projects for research, technical development or industrial applications in information technologies, communications, telematics and information society;

-the participation of Egyptian organisations in pilot projects and European programmes within the established frameworks;

-interconnection between networks and the interoperability of telematic services in the Community and Egypt.

Article 53

Energy

The priority areas of co-operation shall be:

-the promotion of renewable energies;

-the promotion of energy-saving and energy efficiency;

-applied research into data bank networks in the economic and social sectors, linking Community and Egyptian operators in particular;

-support for the modernization and development of energy networks and for their linking to European Community networks.

Article 54

Tourism

Priorities for cooperation shall be:

-promoting investments in tourism;

-improving the knowledge of the tourist industry and ensuring greater consistency of policies affecting tourism;

-promoting a good seasonal spread of tourism;

-promoting cooperation between regions and cities of neighbouring countries;

-highlighting the importance of the cultural heritage for tourism;

-ensuring that the interaction between tourism and the environment is suitably maintained;

-making tourism more competitive through support for increased professionalism.

Article 55

Customs

1. The Parties shall develop customs cooperation to ensure that the provisions on trade are observed. Cooperation will focus in particular on:

a) the simplification of controls and procedures concerning the customs clearance of goods;

b) the introduction of the single administrative document and a system to link up the Community's and Egypt's transit arrangements.

2. Without prejudice to other forms of cooperation envisaged in this agreement, notably for the fight against drugs and money laundering, the Parties' administrations will provide mutual assistance in accordance with the provisions of Protocol No. 5.

Article 56

Co-operation on statistics

The main objective of co-operation in this field shall be to harmonise methodology in order to create a reliable basis for handling statistics in all the fields that are covered by this agreement and lend themselves to the establishment of statistics.

Article 57

Money laundering

1. The Parties shall cooperate with a view in particular to preventing the use of their financial systems to launder the proceeds arising from criminal activities in general and drug trafficking in particular.

2. Cooperation in this field shall include, in particular, technical and administrative assistance aimed at establishing effective standards relating to the fight against money laundering in line with international standards.

Article 58

Fight against drugs

1. The Parties shall cooperate with a view in particular to:

-improving the effectiveness of policies and measures to counter the supply of, and illicit trafficking in, narcotic drugs and psycho-tropic substances and the reduction of the abuse of these products;

-encouraging a joint approach to reducing demand.

2. The Parties shall determine together, in accordance with their respective legislation, the strategies and cooperation methods appropriate for attaining these objectives. Their operations, other than joint operations, shall form the subject of consultations and close co-ordination.

The relevant governmental and non-governmental sector bodies, in accordance with their own powers, working with the competent bodies of Egypt, the Community and its Member States, may take part in these operations.

3. Cooperation shall take the form of exchanges of information and, where appropriate, joint activities on:

-establishment or extension of social and health institutions and information centres for the treatment and rehabilitation of drug addicts;

-implementation of projects in the areas of prevention, training and epidemiological research;

-establishment of effective standards relating to the prevention of the diversion of precursors and other essential substances used for the illicit production of narcotic drugs and psychotropic substances, in line with international standards.

Article 59

Fight against terrorism

In accordance with international conventions and with their respective national legislations, the Parties shall co-operate in this field and focus in particular on:

-exchange of information on means and methods used to counter terrorism;

-exchange of experiences in respect of terrorism prevention;

-joint research and studies in the area of terrorism prevention.

Article 60

Regional Cooperation

Such cooperation shall focus on:

-development of economic infrastructures;

-scientific and technological research;

-intra-regional trade;

-customs matters.

-cultural matters;

-environmental issues.

Article 61

Consumer Protection

Cooperation in this field should be geared to making consumer protection schemes in the European Community and Egypt compatible and should, as far as possible, involve:

-increasing the compatibility of consumer legislation in order to avoid barriers to trade;

-establishment and development of systems of mutual information on dangerous food and industrial products and interconnecting them (rapid alert systems);

-exchanges of information and experts;

-organising training schemes and supplying technical assistance.

TITLE VI

CHAPTER 1

DIALOGUE AND COOPERATION ON SOCIAL MATTER

Article 62

The Parties reaffirm the importance they attach to the fair treatment of their workers legally residing and employed in the territory of the other Party. The Member States and Egypt, at the request of any of them, agree to initiate talks on reciprocal bilateral Agreements related to the working conditions and social security rights of Egyptian and Member States workers legally resident and employed in their respective territory.

Article 63

1. The Parties shall conduct regular dialogue on social matters which are of interest to them.

2. This dialogue shall be used to find ways to achieve progress in the field of movement of workers and equal treatment and social integration of Egyptian and Community nationals legally residing in the territories of their host countries.

3. The dialogue shall notably cover all issues related to:

(a) migrant communities' living and working conditions;

(b) migration;

(c) illegal migration;

(d) actions to encourage equal treatment between Egyptian and Community nationals, mutual knowledge of cultures and civilizations, the furthering of tolerance and the removal of discrimination.

Article 64

Dialogue on social matters shall be conducted in accordance with the same procedures as those provided for in Title I of this agreement.

Article 65

With a view to consolidating cooperation between the Parties in the social field, projects and programmes shall be carried out in any area of interest to them.

Priority will be given to:

a) reducing migratory pressures, notably by improving living conditions, creating jobs, and income generating activities and developing training in areas from which emigrants come;

b) promoting the role of women in economic and social development;

c) bolstering and developing Egyptian family planning and mother and child protection programmes;

d) improving the social protection system;

e) improving the health care system;

f) improving living conditions in poor areas;

g) implementing and financing exchange and leisure programmes for mixed groups of Egyptian and European young people residing in the Member States, with a view to promoting mutual knowledge of their respective cultures and fostering tolerance.

Article 66

Cooperation schemes may be carried out in cooperation with the Member States and the relevant international organisations.

Article 67

A working group shall be set up by the Association Council by the end of the first year following the entry into force of this Agreement. It shall be responsible for the continuous and regular evaluation of the implementation of chapters 1 to 3.

CHAPTER 2

COOPERATION FOR THE PREVENTION AND CONTROL OF ILLEGAL IMMIGRATION and other consular issues

Article 68

The Parties agree to co-operate in order to prevent and control illegal immigration. To this end:

-each of the Member States agrees to readmit any of its nationals illegally present on the territory of Egypt, upon request by the latter and without further formalities once such persons have been positively identified as such;

-Egypt agrees to readmit any of its nationals illegally present on the territory of a Member State, upon request by the latter and without further formalities once such persons have been positively identified as such;

The Member States and Egypt will also provide their nationals with appropriate identity documents for such purposes.

In respect of the Member States of the European Union, the obligations in this Article apply only in respect of those persons who are to be considered their nationals for Community purposes.

In respect of Egypt, the obligation in this Article applies only in respect of those persons who are considered nationals of Egypt in accordance to the Egyptian legal system and all the relevant laws concerning citizenship.

Article 69

After the entry into force of the Agreement, the Parties, at the request of any of them, shall negotiate and conclude bilateral agreements with each other, regulating specific obligations for the readmission of their nationals. These Agreements shall also cover, if deemed necessary by any of the Parties, arrangements for the readmission of third country nationals. Such agreements will lay down the details about the categories of persons covered by these arrangements as well as the modalities of their readmission.

Adequate financial and technical assistance to implement these Agreements will be provided to Egypt.

Article 70

The Association Council shall examine what other joint efforts can be made to prevent and control illegal immigration as well as deal with other consular issues.

CHAPTER 3

CO-OPERATION IN CULTURAL MATTERS, AUDIO-VISUAL MEDIA AND INFORMATION

Article 71

1. The Parties agree to promote cultural co-operation in fields of mutual interest and in a spirit of respect for each other's cultures. They shall establish a sustainable cultural dialogue. This co-operation shall promote in particular :

-Conservation and restoration of historic and cultural heritage (monuments, sites, artefacts, rare books and manuscripts, etc.);

-exchange of art exhibitions, troupes of performing arts, artists, men of letters, intellectuals, cultural events;

-translations;

-training of persons working in the cultural field.

2. Co-operation in the field of audio-visual media shall seek to encourage co-operation in such areas as coproduction and training. The Parties shall seek ways to encourage Egyptian participation in Community initiatives in this sector.

3. The Parties agree that existing cultural programmes of the Community and of one or more of the Member States and further activities of interest to both sides, can be extended to Egypt.

4. The Parties shall, in addition, work to promote cultural co-operation of a commercial nature, particularly through joint projects (production, investment and marketing), training and exchange of information.

5. The Parties shall, in identifying co-operation projects, programmes and joint activities, give special attention to young people, self-expression, heritage conservation issues, the dissemination of culture, and communication skills using written and audio-visual media.

6. Co-operation shall be implemented in particular through :

-a regular dialogue between the Parties;

-regular exchange of information and ideas in every sector of co-operation including meetings of officials and experts;

-transfer of advice, expertise and training;

-implementation of joint actions such as seminars and workshops;

-technical administrative and regulatory assistance;

-the dissemination of information on co-operation initiatives.

TITLE VII

FINANCIAL COOPERATION

Article 72

In order to achieve the objectives of this agreement, a financial cooperation package shall be made available to Egypt in accordance with the appropriate procedures and the financial resources required.

Financial cooperation shall focus on:

-promoting reforms designed to modernize the economy;

-upgrading economic infrastructure;

-promoting private investment and job-creating activities;

-responding to the economic repercussions for Egypt of the gradual introduction of a free trade area, notably by upgrading and restructuring industry and enhancing Egypt's export capacity;

-accompanying measures for policies implemented in the social sector;

-promoting Egypt's capacity and capabilities in the field of the protection of intellectual property rights.

-where appropriate, supplementary measures for the implementation of bilateral agreements to prevent and control illegal immigration;

-accompanying measures for the establishment and implementation of competition legislation.

Article 73

In order to ensure that a coordinated approach is adopted to any exceptional macro-economic and financial problems that might arise as a result of the implementation of this agreement, the parties shall use the regular economic dialogue provided for in Title V to give particular attention to monitoring trade and financial trends in relations between the Community and Egypt.

TITLE VIII

INSTITUTIONAL, GENERAL AND FINAL PROVISIONS

Article 74

An Association Council is hereby established which shall meet at ministerial level once a year and when circumstances require, at the initiative of its President and in accordance with the conditions laid down in its rules of procedure.

It shall examine any major issues arising within the framework of this Agreement and any other bilateral or international issues of mutual interest.

Article 75

1. The Association Council shall consist of the members of the Council of the European Union and of the Commission of the European Communities, on the one hand, and members of the Government of Egypt, on the other.

2. Members of the Association Council may arrange to be represented in accordance with the provisions laid down in its rules of procedure.

3. The Association Council shall establish its rules of procedure.

4. The Association Council shall be presided in turn by a member of the Council of the European Union and a member of the Government of Egypt, in accordance with the provisions laid down in its rules of procedure.

Article 76

The Association Council shall, for the purpose of attaining the objectives of the Agreement, have the power to take decisions in the cases provided for therein.

The decisions taken shall be binding on the Parties which shall take the measures necessary to implement the decisions taken. The Association Council may also make appropriate recommendations.

It shall draw up its decisions and recommendations by agreement between the two Parties.

Article 77

1. Subject to the powers of the Council, an Association Committee is hereby established which shall be responsible for the implementation of the Agreement.

2. The Association Council may delegate to the Association Committee, in full or in part, any of its powers.

Article 78

1. The Association Committee, which shall meet at official level, shall consist of representatives of members of the Council of the European Union and of the Commission of the European Communities, on the one hand, and of representatives of the Government of Egypt, on the other.

2. The Association Committee shall establish its rules of procedure.

3. The Association Committee shall be presided in turn by a representative of the Presidency of the Council of the European Union and by a representative of the Government of Egypt.

Article 79

1. The Association Committee shall have the power to take decisions for the management of the Agreement as well as in the areas in which the Association Council has delegated its powers to it

2. It shall draw up its decisions by agreement between the two Parties. These decisions shall be binding on the Parties which shall take the measures necessary to implement the decisions taken.

Article 80

The Association Council may decide to set up any working group or body necessary for the implementation of the Agreement. It shall define the terms of reference of any such working group or body that shall be subordinate to it.

Article 81

The Association Council shall take all appropriate measures to facilitate cooperation and contacts between the European Parliament and the Egyptian People's Assembly.

Article 82

1. Each of the Parties may refer to the Association Council any dispute relating to the application or interpretation of this Agreement.

2. The Association Council may settle the dispute by means of a decision.

3. Each Party shall be bound to take the measures involved in carrying out the decision referred to in paragraph 2.

4. In the event of it not being possible to settle the dispute in accordance with paragraph 2 of this Article, either Party may notify the other of the appointment of an arbitrator; the other Party must then appoint a second arbitrator within two months. For the application of this procedure, the Community and the Member States shall be deemed to be one party to the dispute.

The Association Council shall appoint a third arbitrator.

The arbitrators' decisions shall be taken by majority vote.

Each party to the dispute must take the steps required to implement the decision of the arbitrators.

Article 83

Nothing in the Agreement shall prevent a Party from taking any measures:

(a) which it considers necessary to prevent the disclosure of information contrary to its essential security interests;

(b) which relate to the production of, or trade in, arms, munitions or war materials or to research, development or production indispensable for defence purposes, provided that such measures do not impair the conditions of competition in respect of products not intended for specifically military purposes;

(c) which it considers essential to its own security in the event of serious internal disturbances affecting the maintenance of law and order, in time of war or serious international tension constituting threat of war or in order to carry out obligations it has accepted for the purpose of maintaining peace and international security.

Article 84

In the fields covered by this Agreement and without prejudice to any special provisions contained therein:

-the arrangements applied by Egypt in respect of the Community shall not give rise to any discrimination between the Member States, their nationals or their companies or firms;

-the arrangements applied by the Community in respect of Egypt shall not give rise to discrimination between Egyptian nationals or its companies or firms.

Article 85

As regards direct taxation, nothing in the Agreement shall have the effect of:

-extending the fiscal advantages granted by either Party in any international agreement or arrangement by which it is bound;

-preventing the adoption or application by either Party of any measure aimed at preventing the avoidance or evasion of taxes;

-opposing the right of either Party to apply the relevant provisions of its tax legislation to taxpayers who are not in identical situation, in particular as regards their place of residence.

Article 86

1. The Parties shall take any general or specific measures required to fulfil their obligations under the Agreement. They shall see to it that the objectives set out in the Agreement are attained.

2. If either Party considers that the other Party has failed to fulfil an obligation under the Agreement, it may take appropriate measures. Before so doing, except in cases of a material breach of the Agreement by the other Party, it shall supply the Association Council with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties.

A material breach of the Agreement shall consist of the repudiation of the Agreement not sanctioned by the general rules of international law or a grave violation of an essential element of the Agreement, creating an environment not conducive for consultations or where a delay would be detrimental to the objectives of the Agreement.

3. In the selection of the appropriate measures referred to in paragraph 2, priority must be given to those which least disturb the functioning of the Agreement. The Parties also agree that these measures shall be taken in accordance with international law and shall be proportional to the violation.

The measures shall be notified immediately to the Association Council and shall be the subject of consultations within the Association Council if the other Party so requests. If one Party takes a measure as a result of a material breach of the Agreement referred to in paragraph 2, the other Party may invoke the dispute settlement procedure.

Article 87

Protocols 1 to 5 and Annexes 1 to 6 shall form an integral part of this Agreement.

Article 88

For the purpose of this Agreement the term "Parties" shall mean Egypt on the one hand and the Community, or the Member States, or the Community and the Member States, in accordance with their respective powers, on the other hand.

Article 89

The Agreement is concluded for an unlimited period.

Each of the Parties may denounce the Agreement by notifying the other Party. The Agreement shall cease to apply six months after the date of such notification.

Article 90

This Agreement shall apply, on the one hand, to the territories in which the Treaties establishing the European Community, and the European Coal and Steel Community are applied and under the conditions laid down in those Treaties and, on the other hand, to the territory of Egypt.

Article 91

This Agreement, drawn up in duplicate in the Arabic, Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, and Swedish languages, each of these texts being equally authentic.

Article 92

1. This Agreement will be approved by the Parties in accordance with their own procedures.

This Agreement shall enter into force on the first day of the second month following the date on which the Parties notify each other that the procedures referred to in the first paragraph have been completed.

2. Upon its entry into force this Agreement shall replace the Agreement between the European Economic Community and Egypt, and the Agreement between the European Coal and Steel Community and Egypt, signed in Brussels on 18 January 1977.

JOINT DECLARATIONS

Joint Declaration on Article 3 paragraph 2

It is understood that the political dialogue and cooperation will also cover issues relating to the fight against terrorism.

Joint Declaration on Article 14

Both Parties agree to negotiate with a view to granting each other concessions in the trade of fish and fishery products on the basis of reciprocity and mutual interest, with the objective of reaching agreement on the details no later than one year after the signature of this Agreement.Joint Declaration on Article 18

In case of serious difficulties arising in relation to the level of imports under the agreement the provisions providing for consultation between the Parties may be used, urgently where necessary.

Joint Declaration on Article 34

The Parties recognize that Egypt is currently in the process of drafting its own competition law. This will provide the necessary conditions for agreeing on the implementation rules referred to in paragraph 2 of article 34. While drafting its law, Egypt will take into account the competition rules developed within the European Union.

Until the implementation rules referred to in Article 34 paragraph 2 are adopted, if serious problems arise, the Parties may raise the matter for consideration in the Association Council.

Joint Declaration on Art. 37 and Annex 6

For the purpose of this Agreement, intellectual property includes in particular copyright, including the copyright in computer programmes, and neighbouring rights, patents, industrial designs, geographical indications, including appellations of origin, trademarks and service marks, topographies of integrated circuits, as well as the protection against unfair competition as referred to in Article 10 bis of the Paris Convention for the Protection of Industrial Property (Stockholm Act, 1967) and protection of undisclosed information on "know-how".

Joint Declaration on Article 39

The Parties agree that, in the event of a serious disequilibrium in their overall balance of trade, which threatens trade relations, either Party may call for consultations within the Association Committee in order to promote, in line with Article 39, balanced economic relations and to consider ways to sustainably improve the situation with a view to reduce the imbalances.

Joint Declaration on Title VI Chapter 1

The Parties agree to endeavour to facilitate the issuing of visas to bona fide persons active in the implementation of this Agreement, including inter-alia business persons, investors, academics, trainees, government officials; first degree family members of persons legally resident in the territory of the other party shall also be considered.

Joint Declaration on the protection of data

The Parties agree that the protection of data will be guaranteed in all areas where the exchange of personal data is envisaged.

DECLARATIONS BY THE EUROPEAN COMMUNITY

Declaration by the European Community on Article 11

When consultations are requested as provided for in the last paragraph of Article 11, the Community will be ready to hold consultations within 30 days of the exceptional measures being notified to the Association Committee by Egypt.

The purpose of such consultations will be to ensure that the measures concerned are in accordance with the provisions of Article 11, and the Community will not oppose the adoption of the measures if these conditions are met.

Declaration by the European Community on Article 19

The special provisions applied by the Community to the Canary Islands, referred to in Article 19 paragraph 2 are those provided for by Council Regulation (EEC) N° 1911/91 of 26 June 1991.

Declaration by the European Community on Article 21

Th Community is prepared to hold meetings at official level, at Egypt's request, to provide information on any modifications which may have been introduced in its trade relations with third countries.

Declaration by the European Community on Article 34

The Community declares that, until the adoption by the Association Council of the implementing rules on fair competition referred to in Art. 34 paragraph 2, in the context of the interpretation of Article 34 paragraph 1, it will assess any practice contrary to that Article on the basis of the criteria resulting from the rules contained in Articles 81, 82 and 87 of the Treaty establishing the European Community, and, for products covered by the Treaty establishing the European Coal and Steel Community, by those contained in Articles 65 and 66 of that Treaty and the Community rules on State aids, including secondary legislation.

The Community declares that, as regards the agricultural products referred to in Title II Chapter 3, the Community will assess any practice contrary to paragraph 1(i) of Article 34 according to the criteria established by the Community on the basis of Articles 36 and 37 of the Treaty establishing the European Community and in particular those established in Council Regulation No. 26/62 as amended, and any practice contrary to paragraph 1(iii) of Article 34 according to the criteria established by the European Community on the basis of Articles 36 and 87 of the Treaty establishing the European Community.

>TABLE POSITION>

LIST OF ANNEXES AND PROTOCOLS [AND EXCHANGE OF LETTERS]

Annex 1: List of Products falling under Chapters 25-97 of the Harmonised System referred to in articles 7 and 12.

Annex 2: Lists of industrial products originating in the Community on which are applicable, on importation into Egypt, the schedules for tariff dismantling referred to in Article 9 paragraph 1.

Annex 3: Lists of industrial products originating in the Community on which are applicable, on importation into Egypt, the schedules for tariff dismantling referred to in Article 9 paragraph 2.

Annex 4: Lists of industrial products originating in the Community on which are applicable, on importation into Egypt, the schedules for tariff dismantling referred to in Article 9 paragraph 3.

Annex 5: List of industrial products originating in the Community referred to in Article 9 paragraph 4.

Annex 6: Intellectual Property Rights.

Protocol 1: Arrangements applicable to imports into the Community of agricultural products originating in Egypt [referred to in Article 14 paragraph 1].

Protocol 2: Arrangements applicable to imports into Egypt of agricultural products originating in the Community [referred to in Article 14 paragraph 2].

Protocol 3: Arrangements applicable to processed agricultural products [referred to in Article 14 paragraph 3].

Protocol 4: Definition of 'originating products' and methods of administrative co-operation.

Protocol 5: Mutual assistance between administrative authorities on customs matters.

Exchange of letters between the European Community and Egypt concerning imports into the Community of fresh cut flowers and flowers and flower buds falling within subheading 0603 10 of the Common Customs Tariff.

ANNEX I

List of agricultural and processed agricultural products falling under HS chapters 25-97 of the HS REFERRED to in ARTICLES 7 AND 12

HS Code 2905.43 (mannitol)

HS Code 2905.44 (sorbitol)

HS Code 2905.45 (glycerol)

HS Heading 33.01 (essential oils)

HS Code 3302.10 (odoriferous substances)

HS Headings 35.01 to 35.05 (albuminoidal substances, modifies starches, glues)

HS Code 3809.10 (finishing agents)

HS Heading 38.23 (industrial fatty acids, acid from oil refining,

industrial fatty alcohols).

HS Code 3824.60 (sorbitol n.e.p.)

HS Headings 41.01 to 41.03 (hides and skins)

HS Heading 43.01 (raw furskins)

HS Headings 50.01 to 50.03 (raw silk and silk waste)

HS Headings 51.01 to 51.03 (wool and animal hair)

HS Headings 52.01 to 52.03 (raw cotton, waste and cotton carded or combed)

HS Heading 53.01 (raw flax)

HS Heading 53.02 (raw hemp)

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ANNEX 6

referred to in Article 37

Intellectual Property

1. By the end of the fourth year after the entry into force of the Agreement, Egypt shall accede the following multilateral conventions on intellectual property rights:

- the Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations (Rome, 1961);

- Budapest Treaty on the International Recognition of the Deposit of Micro-organisms for the Purposes of Patent Procedure (1977, amended 1980);

- the Patent Co-operation Treaty (Washington 1970, amended in 1979 and modified in 1984);

- the International Convention for Protection of New Varieties of Plants (UPOV) (Geneva Act 1991);

- Nice Agreement concerning the international Classification of Goods and Services for the Purpose of the Registration of Marks (Geneva Act 1977and amended in 1979);

- Protocol relating to the Madrid Agreement concerning the international registration of Marks (Madrid 1989).

2. The Parties confirm the importance they attach to the obligations arising from the following multilateral conventions.

- * the World Trade Organisation agreement on Trade Related Aspects of Intellectual Property Rights (Marrakech, April 15, 1994), taking into consideration the transitional period provided for developing countries in Article 65 of that agreement;

- * the Paris Convention for the protection of industrial property (Stockholm Act 1967 amended in 1979);

- * Berne Convention for the protection of literary and artistic works (Paris Act 1971);

- * Madrid Agreement concerning the International Registration of Marks (Stockholm Act 1967 amended in 1979).

3. The Association Council may decide that paragraph 1 shall apply to other multilateral conventions in this field.

PROTOCOL 1

Concerning the arrangements applicable to imports into the Community of agricultural products originating in Egypt [referred to in Article 14, paragraph 1]

The products listed in the Annex, originating in Egypt, shall be admitted for importation into the Community, according to the conditions contained hereafter and in the Annex.

a) Customs duties shall be either eliminated or reduced as indicated in column "A",

b) For certain products, for which the Common Customs Tariff provides for the application of an ad valorem duty and a specific duty, the rates of reduction, indicated in columns "A" and "C", shall apply only to the ad valorem duty.

For certain products, customs duties shall be eliminated within the limit of the tariff quotas listed in column "B". For the quantities imported in excess of the quotas, the common customs duties shall, according to the product concerned, be applied in full or reduced, as indicated in column "C".

For the first year of application, the volumes of tariff quotas shall be calculated as a pro rata of the basic volumes, taking into account the part of the period elapsed before the date of entry into force of this agreement.

For the products for which the specific provisions in column "D" refer to this paragraph, the tariff quota volumes listed in column "B" shall be increased annually by 3% of the volume of the previous year; the first increase taking place one year after the entry into force of this agreement.

From 1 December to 31 May, for sweet oranges, fresh, falling within CN codes ex 0805 10 10, ex 0805 10 30 and ex 0805 10 50, within the limit of the tariff quota of 34.000 tonnes applicable for the concession on the ad valorem customs duties, the agreed entry price between the European Community and Egypt, from which the specific duty provided in the Community's list of concessions to the WTO is reduced to zero, is:

- 266 EUR/tonne, from 1 December 1999 to 31 May 2000,

- 264 EUR/tonne, for every period thereafter, from 1 December to 31 May.

If the entry price for a consignment is 2, 4, 6 or 8 % lower than the agreed entry price, the specific customs duty shall be equal respectively to 2, 4, 6 or 8 % of this agreed entry price. If the entry price of a consignment is less than 92 % of the agreed entry price, the specific customs duty bound within the WTO shall apply.

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PROTOCOL 2

Concerning the arrangements applicable to imports into Egypt of agricultural products originating in the Community [referred to in Article 14, paragraph 2]

1. The products listed in the Annex originating in the Community shall be admitted for importation into Egypt according to the conditions contained hereafter and in the Annex.

2. Import duties on imports shall be either eliminated or reduced to the level indicated in column « A ».

3. For certain products, the duties shall be eliminated or reduced within the limit of a tariff quota listed in column « B ».

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PROTOCOL 3

on trade between Egypt and the Community in processed agricultural products [referred to in Article 14, paragraph 3]

Article 1

1. Customs duties and charges having equivalent effect applicable on import into Egypt of processed agricultural products originating in the Community, listed in Annex I shall be gradually reduced in accordance with the following schedule:

- as regards the products listed in Table 1, duties shall be abolished two years after the entry into force of the Agreement;

- as regards the products listed in Table 2, duties shall be subject to the following reductions:

two years after entry into force of the agreement: -5% of the basic duties;

three years after the entry into force of the Agreement: -10% of the basic duties;

four years after the entry into force of the agreement: -15% of the basic duties;

- as regards the products listed in Table 3, duties shall be reduced as be subject to the following reductions:

two years after entry into force of the agreement: -5% of the basic duties;

three years after the entry into force of the Agreement: -15% of the basic duties;

four years after the entry into force of the agreement: -25% of the basic duties;

2. Imports into the Community of processed agricultural products originating in Egypt, listed in Annex II, shall be subject to the duties mentioned therein, whether limited by quota or not.

3. The reductions of customs duties mentioned in Annexes I and II shall apply to the basic duties referred to in Article 18.

4. The Association Council may decide on:

extensions of the list of processed agricultural products under this Protocol;

amendments of the duties mentioned in Annexes I and II;

increases or abolition of tariff quotas.

Article 2

1. Customs duties applied pursuant Article 1 may be reduced by decision of the Association Committee:

when in trade between the Community and Egypt the duties applied to the basic products are reduced, or

in response to reductions resulting from mutual concessions relating to processed agricultural products.

2. As regards the duties applied by the Community, the reductions provided for under the first indent will be calculated on the part of the duty designated as the agricultural component which shall correspond to the agricultural products actually used in the manufacture of the processed agricultural products in question and deduced from the duties applied to these basic agricultural products.

Article 3

The Community and Egypt shall inform each other of the administrative arrangements adopted for the products covered by this Protocol.

These arrangements should ensure equal treatment for all interested parties and should be as simple and flexible as possible.

PROTOCOL 3 _ Annex I

Table 1

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PROTOCOL 3 _ Annex II

Table 1

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PROTOCOL 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 (amended)

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 Euro

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 Protocol

- Article 39 Implementation of the Protocol

- Article 40 Goods in transit or storage

ANNEXES

ANNEX I: Introductory notes to the list in Annex II

ANNEX II: List of working or processing required to be carried out on non-originating materials in order that the products manufactured can obtain originating status.

ANNEX II(a) List of working or processing required to be carried out on non-originating materials in order that the products manufactured referred in Article 6(2) can obtain originating status.

ANNEX III : List of products originating in Turkey to which the provisions of Article 4 do not apply, listed in the order of HS Chapters and Headings

ANNEX IV: Movement certificate EUR.1 and application for a movement certificate EUR.1

ANNEX V: Invoice declaration

ANNEX VI: Joint declarations

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 determined 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 Egypt in whose undertaking the last working or processing is carried 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 Egypt;

(h) "value of originating materials" means the value of such materials as defined in subparagraph (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 were obtained;

(j) "chapters" and "headings" mean the chapters and the headings (four-digit codes) used in the nomenclature which makes up the Harmonised Commodity Description and Coding System, referred to in this Protocol as "the Harmonised System" or "HS";

(k) "classified" refers to the classification of a product or material under a particular heading;

(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 this 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;

2. For the purpose of implementing this Agreement, the following products shall be considered as originating in Egypt:

(a) products wholly obtained in Egypt within the meaning of Article 5 of this Protocol;

(b) products obtained in Egypt incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in Egypt within the meaning of Article 6 of this Protocol.

Article 3 Bilateral cumulation of origin

1. Materials originating in the Community shall be considered as materials originating in Egypt 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 Egypt shall be considered as materials originating in the Community 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.

Article 4 Diagonal cumulation of origin

1. Subject to the provisions of paragraphs 2 and 3, materials originating in Algeria, Cyprus, Israel, Jordan, Lebanon, Malta, Morocco, Syria, Tunisia, Turkey *or the West bank and the Gaza Strip, within the meaning of the Agreements between the Community and Egypt and these countries shall be considered as originating in the Community or Egypt when incorporated into a product obtained there. It shall not be necessary that such materials have undergone 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 Egypt when the value added there exceeds the value of the materials used originating in any one of the other countries referred 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 Egypt.

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 Egypt shall provide each other, through the European Commission with details of agreements and their corresponding rules of origin which have been concluded with the other countries referred to in paragraph 1.

4. Once the requirements laid down in paragraph 3 have been fulfilled, and a date for the entry into force of these provisions has been agreed, each party shall fulfil its own notification and information obligations.

Article 5 Wholly obtained products

1. The following shall be considered as wholly obtained in the Community or Egypt:

(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 Egypt by their vessels;

(g) products made aboard their factory ships exclusively from products referred to in subparagraph (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 subparagraphs (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 Egypt;

(b) which sail under the flag of an EC Member State or of Egypt;

(c) which are owned to an extent of at least 50 per cent by nationals of EC Member States or of Egypt, 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 Egypt and of which, in addition, in the case of partnerships or limited companies, at least half the capital belongs to those States or to public bodies or nationals of the said States;

(d) of which the master and officers are nationals of EC Member States or of Egypt; and

(e) of which at least 75 per cent of the crew are nationals of EC Member States or of Egypt.

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 manufacturing and apply only in relation to such materials. Accordingly, it follows that if a product, which has acquired originating status by fulfilling the conditions 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, the products which are not wholly obtained and listed in Annex II(a) are considered to be sufficiently worked or processed when the conditions set out in the list in Annex II(a) are fulfilled.

The provision of this paragraph shall apply for three years following the entry into force of the Agreement.

3. Notwithstanding paragraph 1 and 2, non-originating materials 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:

(a) their total value does not exceed 10 per cent of the ex-works price of the product;

(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 Harmonised System.

4. Paragraphs 1, 2 and 3 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 of Article 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 Egypt;

(f) simple assembly of parts to constitute a complete product;

(g) a combination of two or more operations specified in subparagraphs (a) to (f);

(h) slaughter of animals.

2. All the operations carried out in either the Community or Egypt 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.

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 Harmonised System.

Accordingly, it follows that:

(a) when a product composed of a group or assembly of articles is classified under the terms of the Harmonised 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 Harmonised System, each product must be taken individually when applying the provisions of this Protocol.

2. Where, under General Rule 5 of the Harmonised 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 Harmonised 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;

(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 Egypt, except as provided for in Article 4.

2. If originating goods exported from the Community or Egypt 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 Egypt 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 Egypt.

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; and

(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 Egypt shall benefit on importation from the provisions of the Agreement provided it is shown to the satisfaction of the customs authorities that:

(a) an exporter has consigned these products from the Community or Egypt 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 Egypt;

(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 organised 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. Non-originating materials used in the manufacture of products originating in the Community, in Egypt 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 Egypt to drawback of, or exemption from, customs duties of whatever kind.

2. The prohibition in 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 Egypt to materials used in the manufacture, 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 also 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. The provisions of this article shall not apply for six years following the entry into force of the Agreement.

7. After the entry into force of the provisions of this Article and notwithstanding paragraph 1, Egypt 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 products, 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 Harmonised System, or such lower rate as in force in Egypt;

(b) a 10 per cent rate of customs charge shall be retained in respect of products falling within Chapters 50 to 63 of the Harmonised System, or such lower rate as in force in Egypt.

Before the end of the transitional period referred to in Article 6 of the Agreement, the provisions of this paragraph will be reviewed.

TITLE V

PROOF OF ORIGIN

Article 16 General requirements

1. Products originating in the Community shall, on importation into Egypt and products originating in Egypt shall, on importation into the Community benefit from this Agreement upon submission of either:

(a) a movement certificate EUR.1, a specimen of which appears in Annex IV; or

(b) in the cases specified in Article 21(1), a declaration, the text of which appears in Annex V, given by the exporter on an invoice, a delivery note or any other commercial 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 products 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 authorised representative.

2. For this purpose, the exporter or his authorised representative shall fill out both the movement certificate EUR.1 and the application form, specimens of which appear in Annex IV. 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 hand-written, 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 crossed through.

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 appropriate 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 Egypt if the products concerned can be considered as products originating in the Community, Egypt 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 space reserved 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.

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 technical reasons.

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", "DELIVRE A POSTERIORI",

"RILASCIATO A POSTERIORI", "AFGEGEVEN A POSTERIORI",

"ISSUED RETROSPECTIVELY", "UDSTEDT EFTERFØLGENDE",

"ÅÊÄÏÈÅÍ ÅÊ ÔÙÍ ÕÓÔÅÑÙÍ", "EXPEDIDO A POSTERIORI",

"EMITIDO A POSTERIORI", "ANNETTU JÄLKIKÄTEEN",

"UTFÄRDAT I EFTERHAND", "Arabic version".

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", "ÁÍÔÉÃÑÁÖÏ", "DUPLICADO", "SEGUNDA VIA", "KAKSOISKAPPALE", "Arabic version".

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.

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 Egypt, 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 Egypt. 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 Euro 6 000.

2. An invoice declaration may be made out if the products concerned can be considered as products originating in the Community, Egypt 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 the exporter by typing, stamping or printing on the invoice, the delivery note or another commercial document, the declaration, the text of which appears in Annex V, using one of the linguistic versions set out in that Annex and in accordance with the provisions of the domestic law of the exporting country. If the declaration is hand-written, 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 authorise any exporter who makes frequent shipments of products under this Agreement to make out invoice declarations irrespective of the value of the products concerned. An exporter seeking such authorisation 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 authorisation number which shall appear on the invoice declaration.

4. The customs authorities shall monitor the use of the authorisation by the approved exporter.

5. The customs authorities may withdraw the authorisation 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 authorisation.

Article 23 Validity of proof of origin

1. A proof of origin shall be valid for four months from the date of issue in the exporting country, and must be submitted within the said period to the customs authorities of the importing country.

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 to exceptional circumstances.

3. In other cases of belated presentation, 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 a statement 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 Harmonised System falling within Sections XVI and XVII or heading Nos. 7308 and 9406 of the Harmonised System are imported by instalments, a single proof of origin for such products shall be submitted to the customs authorities upon importation of the first instalment.

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 of 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 CN22/CN23 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 Euro 500 in the case of small packages or Euro 1 200 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, Egypt 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 out 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 Egypt where these documents are used in accordance with domestic law;

(c) documents proving the working or processing of materials in the Community or Egypt, issued or made out in the Community or Egypt, 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 Egypt 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).

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 the formalities 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 of the statements made in this document.

Article 30 Amounts expressed in Euro

1. Amounts in the national currency of the exporting country equivalent to the amounts expressed in Euro 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 EC Member State or another country referred to in Article 4, the importing country shall recognise 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 Euro as at the first working day in October 1999.

4. The amounts expressed in Euro and their equivalents in the national currencies of EC Member States and Egypt shall be reviewed by the Association Committee at the request of the Community or Egypt. When carrying out this review, the Association Committee shall ensure that there will be no decrease in the amounts to be used in national currency and shall furthermore 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 Euro.

TITLE VI

ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

Article 31 Mutual assistance

1. The customs authorities of the EC Member States and of Egypt shall provide each other, through the European Commission, with specimen impressions of stamps used in their 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 Egypt shall assist each other, through the competent customs administrations, in checking the 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 of 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 or 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 verification 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, Egypt 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.

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 Egypt 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 in their 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 Egypt are imported into a free zone under cover of a proof 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 Egypt, 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 customs territory of the Community under Protocol 2 of the Act of Accession of the Kingdom of Spain and the Portuguese Republic to the European Communities. Egypt 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.

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 Egypt 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 Egypt:

(a) products wholly obtained in Egypt;

(b) products obtained in Egypt, 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 Ceuta and Melilla 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. Ceuta and Melilla shall be considered as a single territory.

3. The exporter or his authorised representative shall enter "Egypt" 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.

TITLE VIII

FINAL PROVISIONS

Article 38 Amendments to the Protocol

The Association Council may decide to amend the provisions of this Protocol.

Article 39 Implementation of the Protocol

The Community and Egypt shall each take the steps necessary to implement this Protocol.

Article 40 Goods in transit or storage

The provisions of the Agreement may be applied to goods which comply with the provisions of this Protocol and which on the date of entry into force of the Agreement are either in transit or are in the Community or in Egypt or, in temporary storage in bonded warehouses or in free zones, subject to the submission to the customs authorities of the importing State, within four months of that date, of a certificate EUR.1 issued retrospectively by the competent authorities of the exporting State together with the documents showing that the goods have been transported directly.

_

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:

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 Harmonised 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 first 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. 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 Harmonised System, are classified in headings of the chapter or in any of the headings grouped together in column 1.

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.

4. Where, for an entry in the first 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:

5. 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 Egypt.

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 Community from a non-originating ingot, it has already acquired originating status by virtue of the rule 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.

6. 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 a later stage is not.

7. 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 different description than that of the product as given in column 2 of the list may be used.

8. 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.

Example:

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 mean that both have to be used; it is possible to use one or the other or both.

9. 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 to textiles).

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.

10. 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.

Note 4:

11. 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 but not spun.

12. 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.

13. 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.

14. The term "man-made staple fibres" is used in the list to refer to synthetic or artificial filament tow, staple fibres or waste, of heading Nos. 5501 to 5507.

Note 5:

15. 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 textile 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).

16. 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,

- flax,

- true hemp,

- 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 chloride,

- 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 5605 (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 of 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 fibres that 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 mixed fabric 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 the carpet. Thus, both the jute backing and/or the artificial yarns could be imported at that stage of manufacture, provided the weight conditions are met.

17. 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.

18. 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 two layers of plastic film", this tolerance is 30 per cent in respect of this strip.

Note 6:

19. 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 the rule 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.

20. 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.

21. 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:

22. 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 process ( [2];

[2] 1) See Additional Explanatory Note 4(b) to Chapter 27 of the Combined Nomenclature.

(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.

23. 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 process (1)

(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;

(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 25O°C 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 within heading No ex 2710 only, atmospheric distillation, on condition that less than 30 per cent of these products distils, by volume, including losses, at 300°C 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.

24. For the purposes of heading Nos. ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403, 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 contents, any combination of these operations or like operations do not confer origin.

ANNEX II

LIST OF WORKING OR PROCESSING REQUIRED TO BE CARRIED OUT ON NON-ORIGINATING MATERIALS IN ORDER THAT THE PRODUCT MANUFACTURED CAN OBTAIN ORIGINATING STATUS

The products mentioned in the list may not all be covered by the agreement. It is therefore necessary to consult the other parts of the agreement

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Annex IIa

List of working or processing required to be carried out on non-originating materials in order that the products manufactured referred to in Article 6(2) can obtain originating status.

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Annex III

List of products originating in Turkey to which the provisions of Article 4 do not apply, listed in the order of HS Chapters and Headings

Chapter 1

Chapter 2

Chapter 3

0401 to 0402

ex 0403 - Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa

0404 to 0410

0504

0511

Chapter 6

0701 to 0709

ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen

ex 0711 - Vegetables, except sweet corn of heading 0711 90 30, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption

0712 to 0714

Chapter 8

ex Chapter 9 - Coffee, tea, and spices, excluding maté of heading 0903

Chapter 10

Chapter 11

Chapter 12

ex 1302 - Pectin

1501 to1514

ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified

ex 1516 - Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as 'opal-wax'

ex 1517 and

ex 1518 - Margarines, imitation lard and other prepared edible fats

ex 1522 - Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras

Chapter 16

1701

ex 1702 - Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 1702 30 59, 1702 50 00 and 1702 90 10

1703

1801 and 1802

ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans, molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds

ex 2001 - Cucumbers and gherkins, onions, mango chutney, fruit of the genus Capsicum other than sweet peppers or pimentos, mushrooms and olives, prepared or preserved by vinegar or acetic acid

2002 and 2003

ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading 2006, excluding potatoes in the form of flour or meal and flakes of sweet corn

ex 2005 - Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006, excluding potato and sweet corn products

2006 and 2007

ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants

2009

ex 2106 - Flavoured and coloured sugars, syrups and molasses

2204

2206

ex 2207 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher obtained from agricultural produce listed here

ex 2208 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol obtained from agricultural produce listed here.

2209

Chapter 23

2401

4501

5301 and 5302 "

ANNEX IV

Movement certificate EUR.1 and application for a movement certificate EUR.1

Printing instructions

1. Each form shall measure 210 x 297 mm; a tolerance of up to minus 5 mm or plus 8 mm in the length may be allowed. The paper used must be white, sized for writing, not containing mechanical pulp and weighing not less than 25 g/m2. It shall have a printed green guilloche pattern background making any falsification by mechanical or chemical means apparent to the eye.

2. The competent authorities of the Member States of the Community and of Egypt may reserve the right to print the forms themselves or may have them printed by approved printers. In the latter case, each form must include a reference to such approval. Each form must bear the name and address of the printer or a mark by which the printer can be identified. It shall also bear a serial number, either printed or not, by which it can be identified.

MOVEMENT CERTIFICATE

>TABLE POSITION>

13. Request for verification, to :

// 14. RESULT OF VERIFICATION

// Verification carried out shows that this certificate (1)

( was issued by the Customs Office indicated and

that the information contained therein is accurate

( does not meet the requirements as to authenticity

and accuracy (see remarks appended).

Verification of the authenticity and accuracy of this certificate is requested.

Place................................................., date.................................

Stamp

.......................................................

(Signature)

//

Place............................................, date...............................

Stamp

.......................................................

(Signature)

_____________

(1) Insert X in the appropriate box.

NOTES

1. Certificate must not contain erasures or words written over one another. Any alterations must be made by deleting the incorrect particulars and adding any necessary corrections. Any such alteration must be initialled by the person who completed the certificate and endorsed by the Customs authorities of the issuing country or territory.

2. No spaces must be left between the items entered on the certificate and each item must be precede by an item number. A horizontal line must be drawn immediately below the last item. Any unused space must be struck through in such a manner as to make any later additions impossible.

3. Goods must be described in accordance with commercial practice and with sufficient detail to enable them to be identified.

APPLICATION FOR A MOVEMENT CERTIFICATE EUR.1

>TABLE POSITION>

(1) If goods are not packed, indicate number of articles or state « in bulk » as appropriate

DECLARATION BY THE EXPORTEUR

I, the undersigned, exporter of the goods described overleaf,

DÉCLARE that the goods meet the conditions required for the issue of the attached certificate;

SPECIFY as follows the circumstances which have enable these goods to meet the above conditions:

SUBMIT the following supporting documents ( [3]):

[3] For example : import documents, movement certificates, invoices, manufacturer's declarations, etc., referring to the products used in manufacture or to the goods re-exported in the same state.

UNDERTAKE to submit, at the request of the appropriate authorities, any supporting evidence which these authorities may require for the purpose of issuing the attached certificate, and undertake, if required, to agree to any inspection of my accounts and to any check on the processes of manufacture of the above goods, carried out by the said authorities;

REQUEST the issue of the attached certificate for these goods.

Place , date

.

(Signature)

ANNEX V

Invoice declaration

The invoice declaration, the text of which is given below, must be made out in accordance with the footnotes. However, the footnotes do not have to be reproduced.

English version

The exporter of the products covered by this document (customs authorisation No... [4]) declares that, except where otherwise clearly indicated, these products are of ... preferential origin [5]

[4] When the invoice declaration is made out by an approved exporter within the meaning of Article 22 of the Protocol, the authorisation number of the approved exporter must be entered in this space. When the invoice declaration is not made out by an approved exporter, the words in brackets shall be omitted or the space left blank.

[5] Origin of products to be indicated. When the invoice declaration relates in whole or in part, to products originating in Ceuta and Melilla within the meaning of Article 37 of the Protocol, the exporter must clearly indicate them in the document on which the declaration is made out by means of the symbol "CM".

Spanish version

El exportador de los productos incluidos en el presente documento (autorización aduanera n° ...(1))declara que, salvo indicación en sentido contrario, estos productos gozan de un origen preferencial ...(2)

Danish version

Eksportøren af varer, der er omfattet af nærværende dokument, (toldmyndighedernes tilladelse nr. ... (1)) erklærer, at varerne, medmindre andet tydeligt er angivet, har præferenceoprindelse i ... (2)

German version

Der Ausführer (Ermächtigter Ausführer; Bewilligungs-Nr. ... (1)), der Waren, auf die sich dieses Handelspapier bezieht, erklärt, dass diese Waren, soweit nicht anders angegeben, präferenzbegünstigte ... Ursprungswaren sind(2)

Greek version

Ï åîáãùãÝáò ôùí ðñïúüíôùí ðïõ êáëýðôïíôáé áðü ôï ðáñüí Ýããñáöï (Üäåéá ôåëùíåßïõ õð ́áñéè. .... [6])äçëþíåé üôé, åêôüò åÜí äçëþíåôáé óáöþò Üëëùò, ôá ðñïúüíôá áõôÜ åßíáé ðñïôéìçóéáêÞò êáôáãùãÞò .... [7] .

[6] When the invoice declaration is made out by an approved exporter within the meaning of Article 22 of the Protocol, the authorisation number of the approved exporter must be entered in this space. When the invoice declaration is not made out by an approved exporter, the words in brackets shall be omitted or the space left blank.

[7] Origin of products to be indicated. When the invoice declaration relates in whole or in part, to products originating in Ceuta and Melilla within the meaning of Article 37 of the Protocol, the exporter must clearly indicate them in the document on which the declaration is made out by means of the symbol "CM".

French version

L'exportateur des produits couverts par le présent document (autorisation douanière n° ... (1)) déclare que, sauf indication claire du contraire, ces produits ont l'origine préférentielle ... (2)

Italian version

L'esportatore delle merci contemplate nel presente documento (autorizzazione doganale n. ... (1) dichiara che, salvo indicazione contraria, le merci sono di origine preferenziale ... (2)

Dutch version

De exporteur van de goederen waarop dit document van toepassing is (douanevergunning nr. ... (1) , verklaart dat, behoudens uitdrukkelijke andersluidende vermelding, deze goederen van preferentiële ... oorsprong zijn (2)

Portuguese version

O abaixo assinado, exportador dos produtos cobertos pelo presente documento (autorização aduaneira n° ... (1) declara que, salvo expressamente indicado em contrário, estes produtos são de origem preferencial ... (2)

Finnish version

Tässä asiakirjassa mainittujen tuotteiden viejä (tullin lupan:o ... (1) ilmoittaa, että nämä tuotteet ovat, ellei toisin ole selvästi merkitty, etuuskohteluun oikeutettuja ... alkuperätuotteita (2)

Swedish version

Exportören av de varor som omfattas av detta dokument (tullmyndighetens tillstånd nr. ... [8]) försäkrar att dessa varor, om inte annat tydligt markerats, har förmånsberättigande ... ursprung [9]

[8] When the invoice declaration is made out by an approved exporter within the meaning of Article 22 of the Protocol, the authorisation number of the approved exporter must be entered in this space. When the invoice declaration is not made out by an approved exporter, the words in brackets shall be omitted or the space left blank.

[9] Origin of products to be indicated. When the invoice declaration relates in whole or in part, to products originating in Ceuta and Melilla within the meaning of Article 37 of the Protocol, the exporter must clearly indicate them in the document on which the declaration is made out by means of the symbol "CM".

Arabic version

........

................................ (3 [10] (Place and date)

[10] (3) These indications may be omitted if the information is contained on the document itself.

................................ (4 [11]

[11] 4) See Article 21(5) of the Protocol. In cases where the exporter is not required to sign, the exemption of signature also implies the exemption of the name of the signatory.

(Signature of the exporter; in addition the name of the person signing the declaration has to be indicated in clear script)

ANNEX VI

JOINT DECLARATION

ON THE TRANSITIONAL PERIOD CONCERNING THE ISSUING OR MAKING OUT OF DOCUMENTS RELATING TO THE PROOF OF ORIGIN

1. During twelve months following the entry into force of the agreement, the competent customs authorities of the Community and of Egypt shall accept as valid proof of origin within the meaning of Protocol 4, movement certificates EUR.1 and EUR.2 forms, issued within the context of the Co-operation Agreement signed on 18 January 1977;

2. Requests for subsequent verification of documents referred to above shall be accepted by the competent customs authorities of the Community and of Egypt for a period of two years after 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 Andorra falling within Chapters 25 to 97 of the Harmonised System shall be accepted by Egypt 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 Egypt 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 ON CUMULATION OF ORIGIN

The Community and Egypt recognise the important role of cumulation of origin in encouraging the smooth development towards a free trade area between all Mediterranean partners participating in the Barcelona process.

The Community agrees to negotiate and conclude agreements with Mediterranean Partner states, especially Mashrek/Maghreb States at the request of the latter, to apply the rule of cumulation of origin once the concerned partners agree to apply identical rules of origin.

The Parties furthermore declare that differences in the types of cumulation already in force in the participating countries should not constitute a barrier to achieving this goal. For that purpose they will immediately after the signature of the agreement start to examine the possibilities of cumulation with the said countries during the transitional period, especially in sectors where the concerned Mediterranean countries apply identical rules of origin.

The Community will provide assistance to the concerned partners in order to achieve cumulation of rules of origin.

JOINT DECLARATION ON PROCESSING REQUIREMENTS CONTAINED IN ANNEX II

Both parties agree with the processing requirement contained in Annex II and II(a) of the Protocol n°4.

Nevertheless the Community will examine a limited number of requests of derogation presented by Egypt, duly motivated, provided these are not of a nature to compromise achievements on the introduction of cumulation between the Euro-Mediterranean parties.

PROTOCOL 5

ON MUTUAL ADMINISTRATIVE ASSISTANCE

IN CUSTOMS MATTERS

ARTICLE 1

Definitions

For the purposes of this Protocol:

a) "customs legislation" shall mean any legal or regulatory provisions applicable in the territories of the Parties governing the import, export, and transit of goods and their placing under any other customs regime or procedure, including measures of prohibition, restriction and control;

b) "applicant authority" shall mean a competent administrative authority which has been designated by one of the Parties for this purpose and which makes a request for assistance on the basis of this Protocol;

c) "requested authority" shall mean a competent administrative authority which has been designated by one of the Parties for this purpose and which receives a request for assistance on the basis of this Protocol;

d) "personal data" shall mean all information relating to an identified or identifiable individual.

e) "operation in breach of customs legislation" shall mean any violation or attempted violation of customs legislation.

ARTICLE 2

Scope

1. The Parties shall assist each other, in the areas within their competence, in the manner and under the conditions laid down in this Protocol, to ensure the correct application of the customs legislation, in particular by preventing, investigating and combating operations in breach of that legislation.

2. Assistance in customs matters, as provided for in this Protocol, shall apply to any administrative authority of the Parties which is competent for the application of this Protocol. It shall not prejudice the rules governing mutual assistance in criminal matters. Nor shall it cover information obtained under powers exercised at the request of a judicial authority, except where communication of such information is authorised by that authority.

3. Assistance to recover duties, taxes or fines is not covered by this protocol.

ARTICLE 3

Assistance on request

1. At the request of the applicant authority, the requested authority shall provide it with all relevant information which may enable it to ensure that customs legislation is correctly applied, including information regarding activities noted or planned which are or could be operations in breach of customs legislation.

2. At the request of the applicant authority, the requested authority shall inform it:

a) whether goods exported from the territory of one of the Parties have been properly imported into the territory of another Party, specifying, where appropriate, the customs procedure applied to the goods;

b) whether goods imported into the territory of one of the Parties have been properly exported from the territory of the other Party, specifying, where appropriate, the customs procedure applied to the goods.

3. At the request of the applicant authority, the requested authority shall, within the framework of its legal or regulatory provisions, take the necessary steps to ensure special surveillance of:

(a) natural or legal persons in respect of whom there are reasonable grounds for believing that they are or have been involved in operations in breach of customs legislation;

(b) places where stocks of goods have been or may be assembled in such a way that there are reasonable grounds for believing that these goods are intended to be used in operations in breach of customs legislation.

(c) goods that are or may be transported in such a way that there are reasonable grounds for believing that they are intended to be used in operations in breach of customs legislation.

(d) means of transport that are or may be used in such a way that there are reasonable grounds for believing that they are intended to be used in operations in breach of customs legislation.

ARTICLE 4

Spontaneous assistance

The Parties shall assist each other, at their own initiative and in accordance with their legal or regulatory provisions, if they consider that to be necessary for the correct application of customs legislation, particularly by providing information obtained pertaining to:

- activities which are or appear to be operations in breach of customs legislation and which may be of interest to another Party;

- new means or methods employed in carrying out operations in breach of customs legislation;

- goods known to be subject to operations in breach of customs legislation;

- natural or legal persons in respect of whom there are reasonable grounds for believing that they are or have been involved in operations in breach of customs legislation;

- means of transport in respect of which there are reasonable grounds for believing that they have been, are, or may be used in operations in breach of customs legislation.

ARTICLE 5

Delivery, Notification

At the request of the applicant authority, the requested authority shall, in accordance with legal or regulatory provisions applicable to the latter, take all necessary measures in order:

- to deliver any documents or

- to notify any decisions,

emanating from the applicant authority and falling within the scope of this Protocol, to an addressee residing or established in the territory of the requested authority.

Requests for delivery of documents or notification of decisions shall be made in writing in an official language of the requested authority or in a language acceptable to that authority.

ARTICLE 6

Form and substance of requests for assistance

1. Requests pursuant to this Protocol shall be made in writing. They shall be accompanied by the documents necessary to enable compliance with the request. When required because of the urgency of the situation, oral requests may be accepted, but must be confirmed in writing immediately.

2. Requests pursuant to paragraph 1 shall include the following information:

(a) the applicant authority;

(b) the measure requested;

(c) the object of and the reason for the request;

(d) the legal or regulatory provisions and other legal elements involved;

(e) indications as exact and comprehensive as possible on the natural or legal persons who are the target of the investigations;

(f) a summary of the relevant facts and of the enquiries already carried out.

3. Requests shall be submitted in an official language of the requested authority or in a language acceptable to that authority. This requirement shall not apply to any documents that accompany the request under paragraph 1.

4. If a request does not meet the formal requirements set out above, its correction or completion may be requested; in the meantime precautionary measures may be ordered.

ARTICLE 7

Execution of requests

1. In order to comply with a request for assistance, the requested authority shall proceed, within the limits of its competence and available resources, as though it were acting on its own account or at the request of other authorities of that same Party, by supplying information already possessed, by carrying out appropriate enquiries or by arranging for them to be carried out. This provision shall also apply to any other authority to which the request has been addressed by the requested authority when the latter cannot act on its own.

2. Requests for assistance shall be executed in accordance with the legal or regulatory provisions of the requested Party.

3. Duly authorised officials of one of the Parties may, with the agreement of the other Party involved and subject to the conditions laid down by the latter, be present to obtain in the offices of the requested authority or any other concerned authority in accordance with paragraph 1, information relating to activities that are or may be operations in breach of customs legislation which the applicant authority needs for the purposes of this Protocol.

4. Duly authorised officials of one of the Parties may, with the agreement of the other Party involved and subject to the conditions laid down by the latter, be present at enquiries carried out in the latter's territory.

ARTICLE 8

Form in which information is to be communicated

1. The requested authority shall communicate results of enquiries to the applicant authority in writing together with relevant documents, certified copies or other items.

2. This information may be in computerised form.

3. Original files and documents shall be transmitted only upon request in cases where certified copies would be insufficient. These originals shall be returned at the earliest opportunity.

ARTICLE 9

Exceptions to the obligation to provide assistance

1. Assistance may be refused or may be subject to the satisfaction of certain conditions or requirements, in cases where a Party is of the opinion that assistance under this Protocol would:

(a) be likely to prejudice the sovereignty of Egypt or that of a Member State which has been requested to provide assistance under this Protocol; or

(b) be likely to prejudice public policy, security or other essential interests, in particular in the cases referred to under Article 10(2); or

(c) violate an industrial, commercial or professional secret.

2. Assistance may be postponed by the requested authority on the ground that it will interfere with an ongoing investigation, prosecution or proceeding. In such a case, the requested authority shall consult with the applicant authority to determine if assistance can be given subject to such terms or conditions as the requested authority may require.

3. Where the applicant authority seeks assistance which it would itself be unable to provide if so requested, it shall draw attention to that fact in its request. It shall then be for the requested authority to decide how to respond to such a request.

4. For the cases referred to in paragraphs 1 and 2, the decision of the requested authority and the reasons therefor must be communicated to the applicant authority without delay.

ARTICLE 10

Information exchange and confidentiality

1. Any information communicated in whatsoever form pursuant to this Protocol shall be of a confidential or restricted nature, depending on the rules applicable in each of the Parties. It shall be covered by the obligation of official secrecy and shall enjoy the protection extended to similar information under the relevant laws of the Party that received it and the corresponding provisions applying to the Community authorities.

2. Personal data may be exchanged only where the Party which may receive it undertakes to protect such data in at least an equivalent way to the one applicable to that particular case in the Party that may supply it.

To this end, the Parties communicate each other information on their applicable rules, including, where appropriate, legal provisions in force in the Member States of the Community.

3. The use, in judicial or administrative proceedings instituted in respect of operations in breach of customs legislation, of information obtained under this Protocol, is considered to be for the purposes of this Protocol. Therefore, the Parties may, in their records of evidence, reports and testimonies and in proceedings and charges brought before the courts, use as evidence information obtained and documents consulted in accordance with the provisions of this Protocol. The competent authority which supplied that information or gave access to those documents shall be notified of such use.

4. Information obtained shall be used solely for the purposes of this Protocol. Where one of the Parties wishes to use such information for other purposes, it shall obtain the prior written consent of the authority which provided the information. Such use shall then be subject to any restrictions laid down by that authority.

ARTICLE 11

Experts and witnesses

An official of a requested authority may be authorised to appear, within the limitations of the authorisation granted, as an expert or witness in judicial or administrative proceedings regarding the matters covered by this Protocol, and produce such objects, documents or certified copies thereof, as may be needed for the proceedings. The request for appearance must indicate specifically before which judicial or administrative authority the official will have to appear, on what matters and by virtue of what title or qualification the official will be questioned.

ARTICLE 12

Assistance expenses

The Parties shall waive all claims on each other for the reimbursement of expenses incurred pursuant to this Protocol, except, as appropriate, for expenses to experts and witnesses, and those to interpreters and translators who are not public service employees.

ARTICLE 13

Implementation

1. The implementation of this Protocol shall be entrusted on the one hand to the customs authorities of Egypt and on the other hand to the competent services of the Commission of the European Communities and the customs authorities of the Member States as appropriate. They shall decide on all practical measures and arrangements necessary for its application, taking into consideration the rules in force in particular in the field of data protection. They may recommend to the competent bodies amendments which they consider should be made to this Protocol.

2. The Parties shall consult each other and subsequently keep each other informed of the detailed rules of implementation which are adopted in accordance with the provisions of this Protocol.

ARTICLE 14

Other agreements

1. Taking into account the respective competencies of the European Community and the Member States, the provisions of this Protocol shall:

- not affect the obligations of the Parties under any other international agreement or convention;

- be deemed complementary with agreements on mutual assistance which have been or may be concluded between individual Member States and Egypt; and

- not affect the Community provisions governing the communication between the competent services of the Commission of the European Communities and the customs authorities of the Member States of any information obtained under this Protocol which could be of interest to the Community.

2. Notwithstanding the provisions of paragraph 1, the provisions of this Protocol shall take precedence over the provisions of any bilateral agreement on mutual assistance which has been or may be concluded between individual Member States and Egypt insofar as the provisions of the latter are incompatible with those of this Protocol.

3. In respect of questions relating to the applicability of this Protocol, the Parties shall consult each other to resolve the matter in the framework of the Association Committee.

Exchange of letters between the European Community ('the Community') and Egypt concerning imports into the Community of fresh cut flowers and flowers and flower buds falling within subheading 06.03.10 of the Common Customs Tariff

A. Letter from the Community

Sir,

The following was agreed between the Community and Egypt:

Protocol 1 of the Euro-Mediterranean Agreement provides for the elimination of customs duties on imports into the Community of cut flowers and flower buds, fresh, falling within subheading 0603 10 of the Common Customs Tariff and originating in Egypt, subject to a limit of 3.000 tonnes.

Egypt undertakes to abide by the conditions laid down below for imports into the Community of roses and carnations which qualify for the elimination of this tariff:

-The price level of imports into the Community must be at least equal to 85% of the Community price level for the same products over the same periods,

-The Egyptian price level shall be determined by recording the prices of the imported products, on representative Community import markets,

-The Community price level shall be based on the producer prices recorded on representative markets of the main producer Member States,

-Price levels will be recorded on a fortnightly basis and weighted by the respective quantities. This provision is valid for Community prices and for Egyptian prices,

-For both Community producer prices and the import prices of Egyptian products, a distinction shall be made between large-flowered and small-flowered roses and between unifloral and multifloral carnations,

-If the Egyptian price level for any one type of product is below 85% of the Community price level, the tariff preference shall be suspended. The Community shall reinstate the tariff preference when an Egyptian price level equal to 85% or more of the Community price level is recorded.

I should be obliged if you would confirm that your Government is in agreement with the contents of this letter.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the Council of the European Community

B. Letter from Egypt

I have the honour to acknowledge receipt of your letter of today's date which reads as follows:

The following was agreed between the Community and Egypt:

Protocol 1 of the Euro-Mediterranean Agreement provides for the elimination of customs duties on imports into the Community of cut flowers and flower buds, fresh, falling within subheading 0603 10 of the Common Customs Tariff and originating in Egypt, subject to a limit of 3.000 tonnes.

Egypt undertakes to abide by the conditions laid down below for imports into the Community of roses and carnations which qualify for the elimination of this tariff:

-The price level of imports into the Community must be at least equal to 85% of the Community price level for the same products over the same periods,

-The Egyptian price level shall be determined by recording the prices of the imported products on representative Community import markets,

-The Community price level shall be based on the producer prices recorded on representative markets of the main producer Member states,

-Price levels will be recorded on a fortnightly basis and weighted by the respective quantities. This provision is valid for Community prices and for Egyptian prices,

-For both Community producer prices and the import prices of Egyptian products, a distinction shall be made between large-flowered and small-flowered roses and between unifloral and multifloral carnations,

-If the Egyptian price level for any one type of product is below 85% of the Community price level, the tariff preference shall be suspended. The Community shall reinstate the tariff preference when an Egyptian price level equal to 85% or more of the Community price level is recorded.

I have the honour to confirm that my Government is in agreement with the contents of your letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of the Arab Republic of Egypt