# Council Decision 2013/755/EUShow full title

Council Decision 2013/755/EU of 25 November 2013 on the association of the overseas countries and territories with the European            Union (‘Overseas Association Decision’)         

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U.K.

# Council Decision 2013/755/EU                     

# of 25 November 2013

# on the association of the overseas countries and territories with the European Union

# (‘Overseas Association Decision’)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 203 thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national Parliaments,

Having regard to the opinion of the European Parliament,

Acting in accordance with a special legislative procedure,

Whereas:

(1)This Decision replaces Council Decision 2001/822/EC(1) which applies until 31 December 2013. Pursuant to Article 62 of Decision 2001/822/EC, the Council is to establish the provisions                              to be laid down for the subsequent application of the principles set out in Articles 198 to 202 of the Treaty on the Functioning                              of the European Union (TFEU).

(2)In its conclusions of 22 December 2009 on the EU’s relations with Overseas Countries and Territories (OCTs), the Council invited                              the Commission to submit a legislative proposal to revise the Overseas Association Decision before July 2012. The Council                              endorsed the Commission’s proposal to base the future partnership between the Union and the OCTs on three key pillars: (1)                              enhancing competitiveness, (2) strengthening resilience and reducing vulnerability and (3) promoting cooperation and integration                              between the OCTs and other partners and neighbouring regions.

(3)The Commission held a public consultation between June and October 2008 and proposed a number of orientations for a new Association                              Decision. The results of this consultation were synthesised in a Communication of 6 November 2009 entitled ‘Elements for a                              new partnership between the European Union and the Overseas Countries and Territories (OCTs)’.

(4)The TFEU and its secondary legislation do not automatically apply to the OCTs, with the exception of a number of provisions                              which explicitly provide for the contrary. Although not third countries, the OCTs do not form part of the single market and                              must comply with the obligations imposed on third countries in respect of trade, particularly rules of origin, health and                              plant health standards and safeguard measures.

(5)The special relationship between the Union and the OCTs should move away from a classic development cooperation approach to                              a reciprocal partnership to support the OCTs’ sustainable development. Moreover, the solidarity between the Union and the                              OCTs should be based on their unique relationship and their belonging to the same ‘European family’.

(6)The contribution of civil society to OCTs development can be enhanced by strengthening civil society organisations in all                              spheres of cooperation.

(7)Given the OCTs’ geographical position, cooperation between them and their neighbours, despite the different status vis-à-vis                              Union law of each actor in a given geographical area, should be pursued in the interests of all sides with a particular focus                              on areas of common interest and the promotion of the Union’s values and standards. Moreover, the OCTs could act as regional                              hubs or centres of excellence in their regions.

(8)The Union should support the policies and strategies of an OCTs in an area of mutual interest on the basis of the specific                              need, potential and choice of the OCTs concerned.

(9)The association should aim at ensuring the conservation, restoration and sustainable use of biological diversity and ecosystem                              services as a key element for the achievement of sustainable development.

(10)The OCTs are host to wide terrestrial and marine biodiversity. Climate change could impact on OCTs’ natural environment and                              constitute a threat undermining their sustainable development. Actions in the fields of conservation of biodiversity and ecosystem                              services, disaster risk reduction, sustainable management of natural resources and promotion of sustainable energy would contribute                              to adaptation and mitigation of climate change in the OCTs.

(11)The significant role which OCTs could play in contributing to the Union’s commitments under Multilateral Environmental Agreements                              should be recognised in the relations between the Union and the OCTs.

(12)It is important to support the OCTs in their efforts in becoming less dependent on fossil fuels, with a view to reducing their                              vulnerability to fuels access and price volatility, thus making their economy more resilient and less vulnerable to external                              shocks.

(13)The Union could assist the OCTs to reduce their vulnerability to disasters and support the actions and measures they undertake                              for this purpose.

(14)The effects of the OCTs’ remoteness constitute a barrier to their competitiveness and thus it is important to improve the                              accessibility of the OCTs.

(15)The Union and the OCTs recognise the importance of education and vocational training as a lever for the OCTs’ sustainable                              development.

(16)Further economic and social development of the OCTs should be mutually supportive and aim at strengthening competitiveness                              of the OCTs’ economy, as well as attaining social welfare and inclusion, in particular for vulnerable groups and persons with                              disabilities. To that end, cooperation between the Union and OCTs should include exchange of information and best practice                              in the relevant areas, including skills development and social protection as well as promoting the rights of persons with                              disabilities, bearing in mind the principles of the UN Convention on the Rights of Persons with Disabilities. Moreover, the                              association between the Union and OCTs should contribute to the promotion of decent work, including best practice in social                              dialogue, as well as respect for core labour standards, equal opportunities, non-discrimination and accessibility in the OCTs                              and regions where they are located.

(17)Tourism could constitute an area of cooperation between the Union and the OCTs. The aim of cooperation should be to support                              the efforts of the authorities of the OCTs to derive maximum benefit from local, regional and international tourism and stimulate                              private financial flows from the Union and other sources into the development of tourism in the OCTs. Particular attention                              should be given to the need to integrate tourism into the social, cultural and economic life of the people, as well as respect                              for the environment.

(18)The incidence of communicable diseases in the OCTs, such as *dengue* in the Caribbean and the Pacific and *chikungunya* in the Indian Ocean region, can have a significant negative impact on health and the economy. Beyond decreasing the productivity                              of affected populations, epidemics in OCTs are likely to heavily impact tourism, which is a mainstay of many OCTs’ economies.                              Given the large number of tourists and migrant workers travelling to OCTs, they are vulnerable to importation of infectious                              diseases. Inversely, the large flow of people travelling back from OCTs could be a vector of introduction of communicable                              diseases in Europe. Ensuring a ‘safe tourism’ is therefore a critical factor for the sustainability of those OCTs economies                              that heavily rely on tourism.

(19)The association between the Union and the OCTs should take into account and contribute to the preservation of the cultural                              diversity and identity of OCTs.

(20)The Union recognises the importance of developing a more active partnership with the OCTs as regards good governance and the                              fight against organised crime, trafficking in human beings, terrorism and corruption.

(21)Trade and trade-related cooperation between the Union and the OCTs should contribute to the objective of sustainable economic                              development, social development and environmental protection.

(22)Global changes, reflected in the continuing process of trade liberalisation, broadly implicate the Union, the principal trading                              partner of the OCTs, their ACP neighbours and other economic partners.

(23)The OCTs are fragile island environments requiring adequate protection, including in respect of waste management. In respect                              of radioactive waste, Article 198 of the Euratom Treaty and the related secondary legislation provide for this, except with                              regard to Greenland, to which the Euratom Treaty does not apply. For other waste, it should be specified which Union rules                              are to apply in respect of the OCTs.

(24)This Decision should provide for more flexible rules of origin, including new possibilities of cumulation of origin. Cumulation                              should be possible not only with OCTs and Economic Partnership Agreement (EPA) countries, but under certain conditions, also                              for products originating in countries with which the Union is applying a free trade agreement as well as for products entering                              the Union duty-free and quota-free under the Union’s General System of Preferences(2), also subject to conditions. These conditions are necessary to prevent trade circumvention and ensure the proper functioning                              of the cumulation arrangements.

(25)The procedures for certification of OCTs origin should be updated, in the interests of the operators and administrations concerned                              in the OCTs. Provisions on administrative cooperation between the Union and the OCTs should also be updated accordingly.

(26)Methods of administrative cooperation and the possibility to temporarily withdraw preferential treatment in respect of all                              or of certain products originating in the OCTs in cases of fraud, irregularities or a systematic failure to comply with the                              rules concerning the origin of the products, or a failure to provide administrative cooperation should be established. In                              addition, sufficiently detailed safeguard and surveillance provisions should be laid down. This would allow OCTs and Union                              competent authorities as well as economic operators to rely on clear and transparent rules and procedures. Finally, it is                              a matter of common interest to ensure the proper application of the procedures and arrangements that allow the OCTs to export                              goods to the Union duty-free and quota-free.

(27)Taking into account the aims of integration and the developments of global trade in the area of services and establishment,                              it is necessary to support the development of services markets and investment possibilities by improving the market access                              of OCTs services and investment to the Union market. In this regard the Union should offer to OCTs the best possible treatment                              offered to any other trading partner through comprehensive most favoured nation clauses, while ensuring more flexible possibilities                              for trade relations for OCTs by limiting the treatment offered by OCTs to the Union to what has been offered to other major                              trading economies.

(28)Intellectual property rights are a crucial component for stimulating innovation and are a tool to promote economic and social                              development. They benefit countries by allowing them to protect intellectual creations and assets. Their protection and enforcement                              helps to facilitate trade, growth and foreign investment as well as to combat the health and safety risks of counterfeit products.                              OCTs can benefit from a policy on intellectual property rights, in particular in the context of the preservation of biodiversity                              and the development of technology.

(29)Sanitary and phyto-sanitary measures and technical barriers to trade may have an impact on trade and require cooperation.                              Trade and trade-related cooperation should also address competition policies and intellectual property rights, which affect                              the equitable distribution of the gains of trade.

(30)In order to ensure that OCTs may participate under the best conditions in the Union’s internal market as well as in regional,                              sub-regional and international markets, it is important to develop the capacity of the OCTs in relevant areas. These include                              the development of human resources and skills, the development of small and medium enterprises, the diversification of economic                              sectors and the implementation of an appropriate legal framework in order to achieve a business climate conducive to investment.

(31)Cooperation in the area of financial services between the Union and OCTs should contribute to building a safer, sounder, more                              transparent financial system that is essential to enhance global financial stability and to underpin sustainable growth. Efforts                              in that area should focus on convergence with internationally agreed standards and approximation of OCTs legislation with                              Union *acquis* on financial services. Adequate attention should be paid to strengthening administrative capacity of OCTs authorities, including                              in the area of supervision.

(32)Financial assistance to the OCTs should be allocated on the basis of uniform, transparent and effective criteria, taking into                              account the needs and performances of the OCTs. Such criteria should take into account the size of the population, the level                              of Gross Domestic Product (GDP), the level of previous allocations from the European Development Fund (EDF) and constraints                              due to the geographical isolation of OCTs.

(33)In the interest of efficiency, simplification and recognition of the management capacities of the OCTs authorities, the financial                              resources granted to the OCTs should be managed on the basis of a reciprocal partnership. Moreover, the authorities of the                              OCTs should assume the responsibility for the formulation and implementation of those policies agreed upon between the parties                              as cooperation strategies.

(34)The procedures regarding financial assistance should delegate the main responsibility for the 11th EDF programming and implementing                              cooperation to the OCTs in particular. Cooperation should be conducted predominantly in conformity with OCTs territorial regulations                              and should underpin support for monitoring, evaluating and auditing the operations programmed. The limited administrative                              and human resources of the OCTs should be taken into account in the programming and implementation process. In addition, it                              is necessary to clarify that OCTs are eligible for different sources of funding.

(35)OCTs may participate in European Groupings of Territorial Cooperation (EGTC), pursuant to Regulation (EC) No 1082/2006 of                              the European Parliament and of the Council(3). Regional cooperation for OCTs may therefore consist in their participation in an EGTC, in accordance with the arrangements                              applicable to the Member State to which the OCTs is linked. OCTs members of an EGTC may be eligible for regional financing.

(36)In order to take into account technological developments and changes in customs legislation, the power to adopt acts amending                              the Appendices to Annex VI, in accordance with Article 290 TFEU, should be delegated to the Commission. It is of particular                              importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level.                              The Commission, when preparing and drawing up delegated acts, should ensure a timely and appropriate transmission of relevant                              documents to the Council.

(37)By virtue of this Decision, the Council should be able to produce an innovative response to all the factors mentioned above,                              which is both consistent and tailored to the variety of situations,

HAS ADOPTED THIS DECISION:

# PART ONEU.K.**GENERAL PROVISIONS OF THE ASSOCIATION OF THE OVERSEAS COUNTRIES AND TERRITORIES WITH THE UNION**

## *Chapter 1*U.K.***General provisions***

### Article 1U.K.Purpose

1.This Decision establishes an association of the overseas countries and territories (OCTs) with the Union (the ‘association’),                        which constitutes a partnership, based on Article 198 TFEU, to support the OCTs’ sustainable development as well as to promote                        the values and standards of the Union in the wider world.                  

2.The partners to the association are the Union, the OCTs and the Member States to which they are linked.                  

### Article 2U.K.Territorial application

The association shall apply to the OCTs listed in Annex II to the TFEU.

### Article 3U.K.Objectives, principles and values

1.The association between the Union and the OCTs shall be based on objectives, principles and values shared by the OCTs, the                        Member States to which they are linked and the Union.                  

2.The association shall pursue the overall objectives laid down in Article 199 TFEU, by the enhancement of the OCTs’s competitiveness,                        the strengthening of the OCTs’ resilience, the reduction of their economic and environmental vulnerability and the promotion                        of cooperation between them and other partners.                  

3.In pursuing those objectives, the association shall respect the fundamental principles of liberty, democracy, human rights                        and fundamental freedoms, the rule of law, good governance and sustainable development, all of which are common to the OCTs                        and the Member States to which they are linked.                  

4.There shall be no discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation                        in the areas of cooperation referred to in this Decision.                  

5.The partners recognise each other’s rights to determine their sustainable development policies and priorities, to establish                        their own levels of domestic environmental and labour protection, and to adopt or modify accordingly the relevant laws and                        policies, consistently with commitment to the internationally recognised standards and agreements. In doing so, they shall                        strive to ensure high levels of environmental and labour protection.                  

6.In implementing this Decision, the partners shall be guided by the principles of transparency, subsidiarity and the need for                        efficiency and shall equally address the three pillars of OCTs’ sustainable development: economic development, social development                        and environmental protection.                  

### Article 4U.K.Management of the association

Management of the association shall be conducted by the Commission and the OCTs authorities and, where necessary, by the Member                     State to which the OCTs is linked, in accordance with respective institutional, legal and financial competences.                  

### Article 5U.K.Mutual interests, complementarity and priorities

1.The association is the framework for policy dialogue and cooperation on issues of mutual interest.                  

2.Priority shall be given to cooperation in areas of mutual interest, such as:                  

(a)the economic diversification of OCTs economies, including their further integration in world and regional economies;                  

(b)the promotion of green growth;                  

(c)the sustainable management of natural resources, including the conservation and sustainable use of biodiversity and ecosystem                        services;                  

(d)the adaptation to and mitigation of impacts of climate change;                  

(e)the promotion of disaster risk reduction;                  

(f)the promotion of research, innovation and scientific cooperation activities;                  

(g)the promotion of social, cultural and economic exchanges between the OCTs, their neighbours and other partners.                  

3.Cooperation in the areas of mutual interest aims at the promotion of OCTs self-reliance and of the development of OCTs’ capacities                        to formulate, implement and monitor strategies and policies set out in paragraph 2.                  

### Article 6U.K.Promotion of the association

1.With an aim to strengthen the relations between themselves, the Union and the OCTs endeavour to make the association known                        among their citizens, in particular by promoting the development of the links and cooperation between the authorities, academic                        community, civil society and businesses of OCTs on the one hand and their interlocutors within the Union on the other.                  

2.OCTs shall make efforts to strengthen and promote their relations with the Union as a whole. The Member States shall support                        these efforts.                  

### Article 7U.K.Regional cooperation, regional integration and cooperation with other partners

1.Subject to Article 3 of this Decision, the association aims at supporting the OCTs in their efforts to take part in relevant                        international, regional and/or sub-regional cooperation initiatives as well as regional or sub-regional integration processes,                        in line with their own aspirations and in accordance with objectives and priorities defined by the competent OCTs authorities.                  

2.To this end, the Union and the OCTs may exchange information and best practices or establish any other form of close cooperation                        and coordination with other partners in the context of the OCTs’ participation in regional and international organisations,                        where appropriate by means of international agreements.                  

3.The association aims at supporting cooperation between the OCTs and other partners in the areas of cooperation set out in                        Parts Two and Three of this Decision. In that respect, the objective of the association is to promote the cooperation between                        the OCTs and the outermost regions, referred to in Article 349 TFEU, their neighbouring African, Caribbean and Pacific (ACP)                        and non-ACP States. In order to achieve that objective, the Union shall improve coordination and synergies between cooperation                        programmes supported by different EU financial instruments. The Union shall also endeavour to associate OCTs in its instances                        of dialogue with their neighbouring countries, whether they are ACP or non-ACP States, and with the outermost regions, where                        appropriate.                  

4.The support to OCTs’ participation in relevant regional integration organisations shall focus in particular on:                  

(a)capacity building of relevant regional organisations and institutions of which OCTs are members;                  

(b)regional or sub-regional initiatives such as the implementation of sectoral reform policies relating to the areas of cooperation                        identified in Parts Two and Three of this Decision;                  

(c)the awareness and knowledge of the OCTs on the impacts of regional integration processes in different areas;                  

(d)OCTs participation in the development of regional markets within the context of regional integration organisations;                  

(e)cross-border investment between OCTs and their neighbours.                  

### Article 8U.K.Participation in European Groupings of Territorial Cooperation

In the application of Article 7(1) to (3) of this Decision, the cooperation initiatives or other forms of cooperation shall                     also mean that governmental authorities, regional and sub-regional organisations, local authorities and, where appropriate,                     other public and private bodies or institutions (including public service providers) from an OCTs may participate in a European                     Grouping of Territorial Cooperation (EGTC) subject to the rules and objectives of the cooperation activities of this Decision                     and those of Regulation (EC) No 1082/2006 and in accordance with the arrangements applicable to the Member State to which                     the OCTs is linked.                  

### Article 9U.K.Specific treatment

1.The association shall take into account the diversity of the OCTs in terms of economic development and capacity to fully benefit                        from regional cooperation and regional integration referred to in Article 7.                  

2.A specific treatment shall be established for isolated OCTs.                  

3.In order to enable isolated OCTs to overcome structural and other obstacles to their development, this specific treatment                        shall take account of their specific difficulties, inter alia, when determining the volume of financial assistance and the                        conditions attached thereto.                  

4.The OCTs which shall be considered to be isolated are listed in Annex I.                  

## *Chapter 2*U.K.***Actors of cooperation***

### Article 10U.K.General approach

1.The association shall be based on a broad dialogue and consultations on issues of mutual interest between the OCTs, the Member                        States to which they are linked and the Commission, and, if appropriate, the European Investment Bank (EIB).                  

2.The OCTs shall organise, where appropriate, a dialogue and consultations with authorities and bodies such as:                  

(a)the competent local and other public authorities;                  

(b)the economic and social partners;                  

(c)any other appropriate body representing civil society, environmental partners, non-governmental organisations, and bodies                        responsible for promoting of equality between men and women.                  

### Article 11U.K.Actors of cooperation

1.Actors of cooperation in the OCTs shall include:                  

(a)the OCTs’ governmental authorities;                  

(b)the local authorities within the OCTs;                  

(c)public service providers and civil society organisations, such as social, business, employers’ and trade union associations,                        and local, national or international non-governmental organisations;                  

(d)regional and sub-regional organisations.                  

2.The Member States to which the OCTs are linked shall inform the Commission within three months of the entry into force of                        this Decision of the governmental and local authorities referred to in points (a) and (b) of paragraph 1.                  

### Article 12U.K.Responsibilities of the non-governmental actors

1.Non-governmental actors may play a role in the exchange of information and consultations concerning the cooperation, and in                        particular for the preparation and implementation of cooperation assistance, projects or programmes. They may receive a delegation                        of financial management powers for implementing such projects or programmes for the purpose of supporting local development                        initiatives.                  

2.Non-governmental actors eligible for decentralised management of projects or programmes shall be identified by agreement between                        the OCTs authorities, the Commission and the Member State to which the OCTs is linked, taking into account the subject concerned,                        their expertise and field of activity. The process of identification shall be conducted in each OCTs as part of the broad                        dialogue and consultations referred to in Article 10.                  

3.The association aims at contributing to the efforts of the OCTs to strengthen civil society organisations, concerning in particular                        their creation and development, and the development of the arrangements necessary for opening their involvement in the design,                        implementation and evaluation of development strategies and programmes.                  

## *Chapter 3*U.K.***Institutional framework of the association***

### Article 13U.K.Guiding principles for dialogue

1.The Union, the OCTs and the Member States to which they are linked, shall regularly engage in a comprehensive and political                        dialogue.                  

2.The dialogue shall be conducted in full compliance with the respective institutional, legal and financial powers of the Union,                        of the OCTs and of the Member States to which they are linked. The dialogue shall be conducted in a flexible manner: it may                        be formal or informal, at an appropriate level or format, and conducted within the framework referred to in Article 14.                  

3.The dialogue shall enable the OCTs to take a full part in the implementation of the association.                  

4.The dialogue shall focus, inter alia, on specific political issues of mutual concern or of general significance for the attainment                        of the objectives of the association.                  

### Article 14U.K.Instances of the association

1.The association shall establish the following instances of dialogue:                  

(a)an OCTs-EU forum for dialogue (the ‘OCTs-EU Forum’), shall meet annually to bring together OCTs authorities, representatives                        of the Member States and the Commission. Members of the European Parliament, representatives of the EIB, and representatives                        of the outermost regions shall, where appropriate, be associated with the OCTs-EU Forum;                  

(b)on a regular basis, the Commission, the OCTs and the Member States to which they are linked shall hold trilateral consultations.                        These consultations shall be organised at least four times a year on the initiative of the Commission or at the request of                        the OCTs and of the Member States to which they are linked;                  

(c)in agreement between the OCTs, the Member States to which they are linked and the Commission, working parties, acting in an                        advisory capacity, shall be set up to follow the implementation of the association, in a form appropriate to the issues to                        be addressed. These working parties may be convened at the request of the Commission, of a Member State or of an OCTs. They                        shall provide for technical discussions on matters which are of specific concern to the OCTs and the Member States to which                        they are linked, complementing the work that is being done in the OCTs-EU Forum and/or in the trilateral consultations.                  

2.The Commission shall chair the OCTs-EU Forum, the trilateral consultations and the working parties and shall provide their                        secretariat.                  

# PART TWOU.K.**AREAS OF COOPERATION FOR SUSTAINABLE DEVELOPMENT IN THE FRAMEWORK OF THE ASSOCIATION**

## *Chapter 1*U.K.***Environmental issues, climate change and disaster risk reduction***

### Article 15U.K.General objectives and principles

In the context of the association, cooperation in the field of environment, climate change and disaster risk reduction may                     concern:                  

support to the OCTs efforts to define and implement policies, strategies, action plans and measures;

support to OCTs’ efforts to integrate in regional networks and initiatives;

the promotion of sustainable resource use and resource efficiency, and encouragement to the decoupling of economic growth                              from environmental degradation; and                           

support to OCTs efforts to act as regional hubs and centres of excellence.

### Article 16U.K.Sustainable management and conservation of biodiversity and ecosystem services

In the context of the association, cooperation in the field of sustainable management and conservation of biodiversity and                     ecosystem services may concern:                  

the promotion of the establishment and effective management of marine and terrestrial protected areas and improved management                              of existing protected areas;                           

the encouragement of sustainable management of marine and terrestrial resources, which contribute to protecting species, habitats                              and ecosystem functions outside protected areas, in particular, endangered, vulnerable and rare species;                           

the strengthening of conservation and sustainable use of marine and terrestrial biodiversity and ecosystems by:

addressing the wider ecosystem challenge of climate change by maintaining healthy, resilient ecosystems and fostering green                                       infrastructure and ecosystem- based approaches to climate change adaptation and mitigation which often bring multiple benefits;                                    

strengthening capacities at a local, regional and/or international scale, by promoting exchange of information, knowledge                                       and best practice amongst all stakeholders including public authorities, landowners, private sector, researchers and civil                                       society;                                    

strengthening existing nature conservation programmes and related efforts within and outside conservation areas;

broadening the knowledge base and filling the knowledge gaps, including quantifying the value of ecosystem functions and services;

the encouragement and facilitation of regional cooperation in order to address issues such as invasive alien species or the                              impacts of climate change;                           

the development of mechanisms to lever resources including payments for ecosystem services.

### Article 17U.K.Sustainable forest management

In the context of the association, cooperation in the field of sustainable forest management may concern the promotion of                     the conservation and sustainable management of forests, including their role in the conservation of the environment from erosion                     and desertification control, afforestation and management of timber exports.                  

### Article 18U.K.Integrated coastal zone management

In the context of the association, cooperation in the field of integrated coastal zone management may concern:

the support to the efforts of the OCTs towards an effective sustainable management of marine and coastal zones in defining                              strategic and integrated approaches to marine and coastal zone planning and management;                           

conciliation of economic and social activities such as fisheries and aquaculture, tourism, maritime transports and agriculture                              with the potential of marine and coastal zones in terms of renewable energy, raw materials, whilst taking into account impacts                              of climate change and human activities.                           

### Article 19U.K.Maritime Affairs

In the context of the association, cooperation in the field of maritime affairs may concern:

the strengthening of the dialogue on issues of common interest in that field;

the promotion of marine knowledge and biotechnology, ocean energy, maritime surveillance, coastal zone management and an ecosystem                              based management;                           

the promotion of integrated approaches at international level.

### Article 20U.K.Sustainable management of fish stocks

1.In the context of the association, cooperation in the field of sustainable management of fish stocks shall be based on the                        following principles:                  

(a)commitment to responsible fisheries management and fishing practices;                  

(b)refraining from measures or activities that are inconsistent with the principles of sustainable exploitation of fisheries                        resources;                  

(c)without prejudice to existing or future bilateral fisheries partnership agreements between the Union and the OCTs, the Union                        and the OCTs shall aim to regularly consult each other on the conservation and management of the living marine resources and                        to exchange information on the ongoing state of resources within the context of the relevant instances of the association                        provided for in Article 14.                  

2.Cooperation in the field referred to in paragraph 1 may concern:                  

(a)the active promotion of good governance, best practices and responsible fisheries management in the conservation and sustainable                        management of fish stocks, including fish stocks of common interest and those managed by regional fisheries management organisations;                  

(b)dialogue and cooperation regarding the conservation of fish stocks including measures to fight illegal, unreported and unregulated                        fishing and effectively cooperating with and within regional fisheries management organisations. Dialogue and cooperation                        shall include control and inspection schemes, incentives and obligations for a more effective management of fisheries and                        coastal environments in the long term.                  

### Article 21U.K.Sustainable water management

1.In the context of the association, the Union and the OCTs may cooperate in the area of sustainable water management through                        water policy and institution building, protecting water resources, water supplies in rural and urban areas for domestic, industrial                        or agricultural purposes, storage, distribution and management of water resources and waste water management.                  

2.In the field of water supply and sanitation sector, particular attention shall be given to access in under-served areas to                        drinking water supply and sanitation services and those particularly exposed to natural disasters, which contribute directly                        to human resources development by improving the state of health and increasing productivity.                  

3.Cooperation in these areas shall be guided by the principle that the continuing need to extend the provision of basic services                        in water and sanitation to both urban and rural populations must be addressed in environmentally sustainable ways.                  

### Article 22U.K.Waste management

In the context of the association, cooperation in the field of waste management may concern the promotion of the use of the                     best environmental practice in all operations related to waste management, including the reduction of waste, recycling or                     other processes of recovery, e.g. energy recovery and waste disposal.                  

### Article 23U.K.Energy

In the context of the association, cooperation in the field of sustainable energy may concern:

energy production, distribution and access, in particular, the development, promotion, use and storage of sustainable energy                              from renewable energy sources;                           

energy policies and regulations, in particular the formulation of policies and adoption of regulations guaranteeing affordable                              and sustainable energy tariffs;                           

energy efficiency, in particular the development and introduction of energy efficiency standards and implementation of energy                              efficiency measures in different sectors (industrial, commercial, public and households), as well as accompanying educational                              and awareness activities;                           

transport, in particular the development, promotion and use of more environmental-friendly public and private transport means                              such as hybrid, electric or hydrogen vehicles, carpooling and cycling schemes;                           

town planning and construction, in particular the promotion and introduction of high environment quality standards and high                              energy performance in urban planning and construction; and                           

tourism, in particular the promotion of energy self-sufficient (renewable energy based) and/or green tourism infrastructures.

### Article 24U.K.Climate change

In the context of the association, cooperation in the field of climate change shall aim to support the initiatives of the                     OCTs concerning climate change mitigation and adaptation to the adverse effects of climate change, and may cover:                  

the development of evidence; identification of key risks and territorial, regional and/or international actions, plans, or                              measures in view of adapting to climate change or mitigating its adverse effects;                           

the integration of adaptation to climate change and its mitigation in public policies and strategies;

the elaboration and identification of statistical data and indicators, essential tools for policy making and implementation;                              and                           

the promotion of the participation of the OCTs in regional and international dialogue in order to foster cooperation, including                              exchange of knowledge and experience.                           

### Article 25U.K.Disaster risk reduction

In the context of the association, cooperation in the field of disaster risk reduction may concern:

the development or perfection of systems, including infrastructures, for disaster prevention and preparedness, including prediction                              and early-warning systems, with a view to reducing the consequences of disasters;                           

the development of detailed knowledge of the exposure to the disasters and the current response capacities in the OCTs and                              in the regions where they are located;                           

the strengthening of existing measures of disaster prevention and preparation at local, national and regional levels;

the improvement of response capacities of the actors concerned, to render them more coordinated, effective and efficient;

the improvement of awareness-raising and information to the population regarding the exposure to risks, prevention, preparation                              and the response in the event of disaster, with due attention to the specific needs of persons with disabilities;                           

the strengthening of collaboration between key actors involved in civil protection; and

the promotion of the participation of the OCTs in regional, European and/or international instances in order to allow a more                              regular exchange of information and a closer cooperation among the different partners in the event of disaster.                           

## *Chapter 2*U.K.***Accessibility***

### Article 26U.K.General objectives

1.In the context of the association, cooperation in the field of accessibility shall aim to:                  

(a)ensure greater access of OCTs to global transport networks; and                  

(b)ensure greater access of OCTs to information and communication technologies and services.                  

2.Cooperation in the context referred to in paragraph 1 may encompass:                  

(a)policy and institution building;                  

(b)transport by road, rail, air, sea or inland waterway; and                  

(c)storage facilities in sea- and airports.                  

### Article 27U.K.Maritime transport

1.In the context of the association, cooperation in the field of maritime transport shall aim to the development and promotion                        of cost-effective and efficient maritime transport services in the OCTs and may concern:                  

(a)the promotion of efficient shipments of cargo at economically and commercially viable rates;                  

(b)the facilitation of greater OCTs participation in international shipping services;                  

(c)the encouragement of regional programmes;                  

(d)the support to local private sector involvement in shipping activities; and                  

(e)the development of infrastructure.                  

2.The Union and the OCTs shall promote shipping safety, security of crews and the prevention of pollution.                  

### Article 28U.K.Air transport

In the context of the association, cooperation in the field of air transport may concern:

the reform and modernisation of the OCTs air transport industries;

the promotion of the commercial viability and competitiveness of the OCTs’ air transport industries;

the facilitation of private sector investment and participation; and

the promotion of exchange of knowledge and good business practice.

### Article 29U.K.Air transport safety

In the context of the association, cooperation in the field of air transport safety shall aim to support the OCTs in their                     efforts to comply with the relevant international standards and may cover inter alia:                  

the implementation of air navigation safety systems;

the implementation of airport security and strengthening of the capacity of civil aviation authorities to manage all aspects                              of operational security placed under their control; and                           

the development of infrastructures and human resources.

### Article 30U.K.Information and communication technologies services

In the context of the association, cooperation in the field of information and communication technology (ICT) services shall                     aim to spur, in the OCTs, innovation, economic growth and improvements in daily life for both citizens and businesses, including                     the promotion of accessibility for persons with disabilities. Cooperation shall, in particular, be directed at enhancing OCTs’                     regulatory capacity and may support the expansion of ICT networks and services through the following measures:                  

creation of a predictable regulatory environment that keeps pace with technological developments, stimulates growth and innovation                              and fosters competition and consumer protection;                           

dialogue on the various policy aspects regarding the promotion and monitoring of the information society;

exchange of information on standards and interoperability issues;

promotion of cooperation in the field of ICT research and in the field of ICT-based research infrastructures;

development of services and applications in domains of high societal impact.

## *Chapter 3*U.K.***Research and innovation***

### Article 31U.K.Cooperation in research and innovation

In the context of the association, cooperation in the field of research and innovation may cover science, technology, including                     information and communication technologies, with the aim of contributing to the OCTs’ sustainable development and to promoting                     the OCTs’s role as regional hubs and centres of excellence as well as their industrial competitiveness. In particular, cooperation                     may concern:                  

dialogue, coordination and creation of synergies between OCTs and Union policies and initiatives with regard to science, technology                              and innovation;                           

policy and institutional building within OCTs and concerted actions at local, national or regional level, with a view to developing                              science, technology and innovation activities and their application;                           

cooperation between legal entities from the OCTs, the Union, the Member States and the third countries;

participation of individual OCTs researchers, research bodies and legal entities from OCTs in the framework for cooperation                              related to research and innovation programmes within the Union and the Programme for the Competitiveness of Enterprises and                              small and medium - size enterprises (COSME); and                           

training and international mobility of OCTs researchers and exchange.

## *Chapter 4*U.K.***Youth, education, training, health, employment and social policy***

### Article 32U.K.Youth

1.The Union shall ensure that natural persons from OCTs, as defined in Article 50, can participate in initiatives of the Union                        concerning youth on the same basis as nationals of Member States.                  

2.The association aims at strengthening the ties between young people living in the OCTs and the Union, among others by promoting                        learning mobility of OCTs youth and by fostering mutual understanding between young people.                  

### Article 33U.K.Education and training

1.In the context of the association, cooperation in the field of education and training may cover:                  

(a)the provision of high quality, inclusive education at primary, secondary and higher education level and in the area of vocational                        education and training; and                  

(b)the support to the OCTs in defining and implementing education and vocational training policies.                  

2.The Union shall ensure that natural persons from the OCTs, as defined in Article 50, can participate in education and vocational                        training initiatives of the Union on the same basis as nationals of Member States.                  

3.The Union shall ensure that educational bodies and institutes from OCTs can take part in education related cooperation initiatives                        of the Union on the same basis as the educational and vocational training bodies and institutes of the Member States.                  

### Article 34U.K.Employment and social policy

1.The Union and the OCTs shall maintain dialogue in the area of employment and social policy in order to contribute to the economic                        and social development of the OCTs and the promotion of decent work in the OCTs and regions where they are located. Such a                        dialogue shall also aim at supporting the efforts of the OCTs’ authorities to develop policies and legislation in this area.                  

2.The dialogue shall mainly consist of exchange of information and best practices relating to policies and legislation in the                        area of employment and social policy that are of mutual interest to the Union and the OCTs. In this regard, areas such as                        skills development, social protection, social dialogue, equal opportunities, non-discrimination and accessibility for persons                        with disabilities, health and safety at work and other labour standards shall be taken into consideration.                  

### Article 35U.K.Public health

In the context of the association, cooperation in the field of public health shall aim to strengthen the OCTs’ capacity for                     surveillance, early detection and response to outbreaks of communicable diseases through measures including:                  

actions to strengthen preparedness and response capacity against cross-border health threats such as infectious diseases which                              should be built on existing structures and should target unusual events;                           

capacity building through strengthening public health networks at regional level, facilitating exchange of information among                              experts and promoting adequate training;                           

development of tools and communication platforms as well as e-learning programs adapted to OCTs’ particular needs.

## *Chapter 5*U.K.***Culture***

### Article 36U.K.Cultural exchanges and dialogue

1.In the context of the association, cooperation in the field of cultural exchanges and dialogue may concern:                  

(a)the self-reliant development of the OCTs, this being a process centred on people themselves and rooted in each people’s culture;                  

(b)the support to the policies and measures adopted by the competent authorities of OCTs to enhance their human resources, increase                        their own creative capacities and promote their cultural identities;                  

(c)the participation by the population in the process of development;                  

(d)the development of a common understanding and enhanced exchange of information on cultural and audiovisual matters through                        dialogue.                  

2.Through their cooperation the Union and the OCTs shall seek to stimulate cultural exchanges between each other through:                  

(a)cooperation between the cultural and creative sectors of all partners;                  

(b)promotion of the circulation of cultural and creative works and operators between them;                  

(c)policy cooperation in order to foster policy development, innovation, audience building and new business models.                  

### Article 37U.K.Audiovisual cooperation

1.In the context of the association, cooperation in the audiovisual field aims at promoting each other’s audiovisual productions                        and may cover the following actions:                  

(a)cooperation and exchange between the respective broadcasting industries;                  

(b)encouraging exchange of audiovisual works;                  

(c)exchange of information and views on audiovisual and broadcasting policy and regulatory framework between competent authorities;                  

(d)encouraging visits to and participation in international events held in each other’s territory as well as in third countries.                  

2.Co-produced audiovisual works shall be entitled to benefit from any scheme for the promotion of local or regional cultural                        content set up in the Union, the OCTs and the Member States to which they are linked.                  

### Article 38U.K.Performing arts

In the context of the association, cooperation in the field of performing arts may concern:

the facilitation of increased contacts between practitioners of performing arts in areas such as professional exchanges and                              training including participation in auditions, development of networks and promotion of networking;                           

the encouragement of joint productions between producers of one or several Member States of the Union and one or several OCTs;                              and                           

the encouragement of the development of international theatre technology standards and the use of theatre stage signs, including                              through appropriate standardisation bodies.                           

### Article 39U.K.Protection of cultural heritage and historic monuments

In the context of the association, cooperation in the field of tangible and intangible cultural heritage and historic monuments                     aims at allowing the promotion of exchanges of expertise and best practices through:                  

the facilitation of exchanges of experts;

the collaboration on professional training;

the awareness of the local public; and

the counselling on the protection of the historic monuments and protected spaces and on the legislation and implementation                              of measures related to heritage, in particular its integration into local life.                           

## *Chapter 6*U.K.***Fight against organised crime***

### Article 40U.K.Fight against organised crime, trafficking in human beings, child sexual abuse and sexual exploitation, terrorism and corruption

1.In the context of the association, cooperation in the field of organised crime may include:                  

(a)the development of innovative and effective means of police and judicial cooperation, including cooperation with other stakeholders                        such as civil society, in the prevention of and fight against organised crime, trafficking in human beings, child sexual abuse                        and sexual exploitation, terrorism and corruption; and                  

(b)support in order to increase the efficiency of OCTs’ policies to prevent and fight against organised crime, trafficking in                        human beings, child sexual abuse and sexual exploitation, terrorism and corruption, as well as the production, distribution                        and trafficking of all kinds of narcotic drugs and psychotropic substances, preventing and reducing drug use and drug-related                        harms, taking into account work carried out in these areas by international bodies, through inter alia:                  

training and capacity building in preventing and fighting organised crime, including trafficking in human beings, child sexual                              abuse and sexual exploitation, terrorism and corruption;                           

prevention including training, education and health promotion, treatment and rehabilitation of dependent drug users, including                              projects for the reintegration of dependent drug users into work and social environments;                           

development of effective enforcement measures;

technical, financial and administrative assistance on the development of effective policies and legislation on trafficking                              in human beings, in particular awareness raising campaigns, referral mechanisms and victim protection systems, involving all                              relevant stakeholders and civil society;                           

technical, financial and administrative assistance relating to the prevention, treatment and reduction of harms related to                              drug use;                           

technical assistance to support the development of legislation and of policy against child sexual abuse and sexual exploitation;                              and                           

technical assistance and training to support capacity building and encourage compliance with international anti-corruption                              standards notably those set out in the UN Convention against Corruption.                           

2.In the context of the association, the OCTs shall cooperate with the Union as regards combatting money laundering and the                        financing of terrorism in accordance with Articles 70 and 71.                  

## *Chapter 7*U.K.***Tourism***

### Article 41U.K.Tourism

In the context of the Association, cooperation in the field of tourism may include:

measures aiming at defining, adapting and developing sustainable tourism policies;

measures and operations to develop and support sustainable tourism;

measures aiming at integrating sustainable tourism into the social, cultural and economic life of OCTs citizens.

# PART THREEU.K.**TRADE AND TRADE RELATED COOPERATION**

## TITLE IU.K.**GENERAL PROVISIONS**

### Article 42U.K.General objectives

The general objectives of the trade and trade-related cooperation between the Union and the OCTs are to:

promote the economic and social development of the OCTs by establishing close economic relations between them and the Union                              as a whole;                           

stimulate the OCTs’ effective integration in the regional and world economies and the development of trade in goods and services;

support OCTs in creating a favourable investment climate to support social and economic development of OCTs;

promote the stability, integrity and transparency of the global financial system, and good governance in the tax area;

support the process of diversification of OCTs economies;

support OCTs capacities to formulate and implement policies necessary for the development of their trade in goods and services;

support the OCTs’ export and trading capacities;

support OCTs’ efforts to align or converge their local legislation with Union legislation, where relevant;

provide possibilities for targeted cooperation and dialogue with the Union on trade and trade-related areas.

## TITLE IIU.K.**ARRANGEMENTS FOR TRADE IN GOODS AND SERVICES AND ESTABLISHMENT**

### *Chapter 1*U.K.***Arrangements for trade in goods***

#### Article 43U.K.Free access for originating goods

1.Products originating in the OCTs shall be imported into the Union free of import duty.                  

2.The definition of originating products and the methods of administrative cooperation relating thereto are laid down in Annex                        VI.                  

#### Article 44U.K.Quantitative restrictions and measures having equivalent effect

1.The Union shall not apply to imports of products originating in the OCTs any quantitative restrictions or measures having                        equivalent effect.                  

2.Paragraph 1 shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of                        public morality or public policy, the protection of health and life of humans, animals and plants, the protection of national                        treasures possessing artistic, historic or archaeological value, the conservation of exhaustible natural resources or the                        protection of industrial and commercial property.                  

Prohibitions or restrictions referred to in the first subparagraph shall in no case constitute a means of arbitrary or unjustifiable                     discrimination or a disguised restriction of trade generally.                  

#### Article 45U.K.Measures adopted by the OCTs

1.The authorities of the OCTs may retain or introduce, in respect of imports of products originating in the Union, such customs                        duties or quantitative restrictions as they consider necessary in view of their respective development needs.                  

2.For the fields covered by this chapter, the OCTs shall grant to the Union a treatment no less favourable than the most favourable                        treatment applicable to any major trading economy as defined in paragraph 4.                  

3.Paragraph 2 shall not preclude an OCTs from granting certain other OCTs or other developing countries more favourable treatment                        than that accorded to the Union.                  

4.For the purposes of this Title, a ‘major trading economy’ means any developed country, or any country accounting for a share                        of world merchandise exports above one per cent, or, without prejudice to paragraph 3, any group of countries acting individually,                        collectively or through an economic integration agreement accounting collectively for a share of world merchandise exports                        above 1,5 %. For this calculation the latest available official data by the WTO on leading exporters in world merchandise                        trade (excluding intra-Union trade) shall be used.                  

5.The authorities of the OCTs shall communicate to the Commission by 2 April 2014, the customs tariffs and lists of quantitative                        restrictions which they apply in compliance with this Decision.                  

The authorities of the OCTs shall also communicate to the Commission any subsequent amendments to such measures as and when                     they are adopted.                  

#### Article 46U.K.Non-discrimination

1.The Union shall not discriminate between OCTs and the OCTs shall not discriminate between Member States.                  

2.In compliance with Article 65, the implementation of the specific provisions in this Decision and in particular its Articles                        44(2), 45 and 48, 49, 51 and 59(3) shall not be deemed to constitute a discrimination.                  

#### Article 47U.K.Conditions for movements of waste

1.Movements of waste between the Member States and the OCTs shall be controlled in accordance with international and Union law.                        The Union shall support the establishment and development of effective international cooperation in this area with a view                        to protecting the environment and public health.                  

2.The Union shall prohibit all direct or indirect export of waste to the OCTs, with the exception of exports of non-hazardous                        waste destined for recovery operations while at the same time the OCTs authorities shall prohibit the direct or indirect import                        into their territory of such waste from the Union or any third country, without prejudice to specific international undertakings                        concerning these areas that have been made, or may be made in future, in the competent international fora.                  

3.As regards those OCTs, which, due to their constitutional status, are not Party to the Basel Convention, their relevant authorities                        shall expedite adoption of the necessary internal legislation and administrative regulations to implement the provisions of                        the Basel Convention in those OCTs.                  

4.In addition, the Member States to which OCTs are linked shall promote the adoption by the OCTs of the necessary internal legislation                        and administrative regulations to implement the following acts:                  

(a)Regulation (EC) No 1013/2006 of the European Parliament and of the Council(4), as follows:                  
          -  (a)Article 40 as regards exports of waste to overseas countries or territories; 
          -  Article 46 as regards imports of waste from overseas countries or territories; 

(b)Commission Regulation (EC) No 1418/2007(5); and                  

(c)Directive 2000/59/EC of the European Parliament and of the Council(6) subject to the time limits for transposition laid down in Article 16 thereof.                  

5.One or more OCTs and the Member States to which they are linked may apply their own procedures to export of waste from the                        OCTs to that Member State.                  

6.In this case, the Member State to which the OCTs is linked shall notify to the Commission the applicable legislation by 2                        July 2014, as well as any future relevant national legislation, and any subsequent amendments to such legislation.                  

#### Article 48U.K.Temporary withdrawal of preferences

Where the Commission considers that there are sufficient grounds to question whether this Decision is being correctly implemented,                     the Commission shall enter into consultations with the OCTs and the Member State with which the OCTs has special relations,                     in order to ensure the proper implementation of this Decision. In case the consultations do not lead to a mutually acceptable                     way of implementing this Decision, the Union may temporarily withdraw preferences from the OCTs concerned in accordance with                     Annex VII.                  

#### Article 49U.K.Safeguard and surveillance measures

In order to ensure the proper implementation of this Decision, the Union may take safeguard and surveillance measures set                     out in Annex VIII.                  

### *Chapter 2*U.K.***Arrangements for trade in services and for establishment***

#### Article 50U.K.Definitions

For the purposes of this Chapter:

‘natural person from an OCTs’ means a person ordinarily resident in an OCTs who is a national of a Member State or who enjoys                              a legal status specific to an OCTs. This definition is without prejudice to the rights conferred by citizenship of the Union                              within the meaning of the TFEU;                           

‘legal person of an OCTs’ means a legal person of the OCTs set up in accordance with the laws applicable in a given OCTs,                              and having its registered office, its central administration, or its principal place of business in the territory in this                              OCTs; should the legal person have only its registered office or central administration in the OCTs, it shall not be considered                              as a legal person of the OCTs, unless it engages in an activity which has a real and continuous link with the economy of that                              country or territory;                           

the respective definitions laid down in the economic integration agreements referred to in Article 51(1) shall apply to the                              treatment accorded between the Union and the OCTs.                           

#### Article 51U.K.Most favourable treatment

1.With respect to any measures affecting trade in services and establishment in economic activities:                  

(a)the Union shall accord to natural and legal persons of the OCTs a treatment no less favourable than the most favourable treatment                        applicable to like natural and legal persons of any third country with whom the Union concludes or has concluded an economic                        integration agreement;                  

(b)an OCTs shall accord to the natural and legal persons of the Union a treatment no less favourable than the most favourable                        treatment applicable to like natural and legal persons of any major trading economy with whom it has concluded an economic                        integration agreement after 1 January 2014.                  

2.The obligations provided for in paragraph 1 of this Article shall not apply to treatment granted:                  

(a)in the framework of an internal market requiring the parties thereto to significantly approximate their legislation with a                        view to removing non-discriminatory obstacles to establishment and to trade in services;                  

(b)under measures providing for recognition of qualifications, licences or prudential measures in accordance with Article VII                        of the General Agreement on Trade in Services (GATS) or the GATS Annex on Financial Services. This is without prejudice to                        OCTs specific measures under this Article;                  

(c)under any international agreement or arrangement relating wholly or mainly to taxation;                  

(d)under measures benefiting from the coverage of a most-favoured nation exemption listed in accordance with Article II.2 of                        the GATS.                  

3.The authorities of an OCTs may with a view to promoting or supporting local employment, adopt regulations to aid their natural                        persons and local activities. In this event, the OCTs authorities shall notify the Commission of the regulations they adopt                        so that it may inform the Member States thereof.                  

#### Article 52U.K.Professional qualifications

With regard to the professions of doctor, dentist, midwife, general nurse, pharmacist and veterinary surgeon, the Council                     shall adopt in accordance with Article 203 TFEU the list of professional qualifications specific to the OCTs which are to                     be recognised in the Member States.                  

## TITLE IIIU.K.**TRADE RELATED AREAS**

### *Chapter 1*U.K.***Trade and sustainable development***

#### Article 53U.K.General approach

Trade and trade-related cooperation under the association aims at contributing to sustainable development in its economic,                     social and environmental dimensions. In this context, the domestic environmental or labour laws and regulations of OCTs shall                     not be lowered in order to encourage trade or investment.                  

#### Article 54U.K.Environmental and climate change standards in trade

1.Trade and trade-related cooperation under the association aims at enhancing the mutual supportiveness between trade and environmental                        policies and obligations. Trade and trade-related cooperation under the association shall take into account the principles                        of international environmental governance and multilateral environmental agreements.                  

2.The ultimate objective of the United Nations Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol shall                        be pursued. Cooperation shall be based on the development of the future legally binding international climate change agreement                        involving mitigation commitments by all parties in accordance with the implementation of decisions emanating from the Conferences                        of the Parties of the UNFCCC.                  

3.Measures to implement multilateral environmental agreements shall not be applied in a manner that would constitute a means                        of arbitrary or unjustifiable discrimination between the partners or a disguised restriction of trade.                  

#### Article 55U.K.Labour standards in trade

1.The association aims at promoting trade in such a way that it is conducive to full and productive employment and decent work                        for all.                  

2.The internationally recognised core labour standards, as defined by the relevant International Labour Organisation Conventions,                        shall be respected and implemented in law and practice. Such labour standards include in particular respect for freedom of                        association, right to collective bargaining, abolition of all forms of forced or compulsory labour, elimination of the worst                        forms of child labour, the minimum age for admission to employment and non-discrimination in respect to employment.                  

3.The violation of core labour standards cannot be invoked or otherwise used as a legitimate comparative advantage. Those standards                        shall not be used for protectionist purposes.                  

#### Article 56U.K.Sustainable trade in fisheries products

With a view to promoting the sustainable management of fish stocks, the association may include cooperation regarding the                     combat of illegal, unreported and unregulated fishing and related trade. Cooperation in this field aims at:                  

promoting the implementation of measures to combat illegal, unreported and unregulated fishing and related trade in OCTs;

facilitating cooperation between OCTs and regional fisheries management organisations, in particular with respect to the development                              and effective implementation of control and inspection schemes, incentives and measures for effective long term management                              of fisheries and marine ecosystems.                           

#### Article 57U.K.Sustainable timber trade

In the context of the association, cooperation in the field of timber trade aims at promoting trade in legally harvested timber.                     Such cooperation may include dialogue on regulatory measures as well as exchange of information on market-based or voluntary                     measures such as forest certification or green procurement policies.                  

#### Article 58U.K.Sustainable development in trade

1.In the context of the association, cooperation in the of field sustainable development may be pursued by:                  

(a)facilitating and promoting trade and investment in environmental goods and services including through the elaboration and                        implementation of local legislation, as well as in those goods that contribute to the improvement of social conditions in                        OCTs;                  

(b)facilitating the removal of obstacles to trade or investment regarding goods and services of particular relevance for climate                        change mitigation, such as sustainable renewable energy and energy efficient products and services, including through the                        adoption of policy frameworks conducive to the deployment of best available technologies and through the promotion of standards                        that respond to environmental and economic needs and minimise technical obstacles to trade;                  

(c)promoting trade in goods that contribute to social conditions and environmentally sound practices, including goods that are                        the subject of voluntary sustainability assurance schemes such as fair and ethical trade schemes, eco-labels, and certification                        schemes for natural resource -based products;                  

(d)promoting internationally recognised principles and guidelines in the area of corporate social responsibility, and encourage                        companies operating in the territory of OCTs to implement them;                  

(e)exchanging information and best practices in the area of corporate social responsibility.                  

2.In the design and implementation of measures aimed at protecting the environment or labour conditions that may affect trade                        or investment, the Union and the OCTs shall take account of available scientific and technical information, and relevant international                        standards, guidelines or recommendations, including the precautionary principle.                  

3.The Union and the OCTs shall apply full transparency to develop, introduce and implement any measures aimed at protecting                        the environment and labour conditions affecting trade or investment.                  

### *Chapter 2*U.K.***Other trade-related areas***

#### Article 59U.K.Current payments and capital movements

1.No restrictions shall be imposed on any payments in freely convertible currency on the current account of balance of payments                        between residents of the Union and of the OCTs.                  

2.With regard to transactions on the capital account of balance of payments, the Member States and the OCTs authorities shall                        impose no restrictions on the free movement of capital for direct investments in companies formed in accordance with the laws                        of the host Member State, country or territory and shall ensure that the assets formed by such investment and any profit stemming                        therefrom can be realised and repatriated.                  

3.The Union and the OCTs shall be entitled to take the measures referred to in Articles 64, 65, 66, 75 and 215 TFEU in accordance                        with the conditions laid down therein *mutatis mutandis*.                  

4.The OCTs authorities, the Member State concerned or the Union shall inform one another immediately of any such measures and                        submit a timetable for their elimination as soon as possible.                  

#### Article 60U.K.Competition policies

The elimination of distortions to competition, with due consideration to the different levels of development and economic                     needs of the OCTs, shall involve the implementation of local, national or regional rules and policies including the control                     and, under certain conditions, the prohibition of agreements between undertakings, of decisions by associations of undertakings                     and of concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion                     of competition. Such prohibition also relates to the abuse by one or more undertakings of a dominant position in the territory                     of the Union or of the OCTs.                  

#### Article 61U.K.Protection of intellectual property rights

1.An adequate and effective level of protection of intellectual property rights, including means for enforcing such rights,                        shall be ensured in line with the highest international standards, where appropriate, with a view to reducing distortions                        and impediments to bilateral trade.                  

2.In the context of the association, cooperation in this field may concern the preparation of laws and regulations for the protection                        and enforcement of intellectual property rights, the prevention of the abuse of such rights by right holders and of the infringement                        of such rights by competitors and support for regional intellectual property organisations involved in enforcement and protection,                        including the training of personnel.                  

#### Article 62U.K.Technical barriers to trade

The association may include cooperation in the fields of technical regulation for goods, standardisation, conformity assessment,                     accreditation, market surveillance and quality assurance with a view to removing unnecessary technical barriers to trade between                     the Union and the OCTs and to reduce differences in those areas.                  

#### Article 63U.K.Consumer policy, consumer health protection and trade

In the context of the association, cooperation in the field of consumer policy, consumer health protection and trade may include                     the preparation of laws and regulations in the area of consumer policy and consumer health protection, with a view to avoiding                     unnecessary barriers to trade.                  

#### Article 64U.K.Sanitary and phyto-sanitary measures

In the context of the association, cooperation in the field of sanitary and phyto-sanitary measures aims at:

facilitating trade between the Union and the OCTs as a whole and between OCTs and third countries, whilst safeguarding human,                              animal and plant health or life in accordance with the WTO Agreement on the Application of Sanitary and Phytosanitary Measures                              (the ‘WTO SPS Agreement’);                           

addressing problems arising from sanitary and phyto-sanitary measures;

ensuring transparency as regards sanitary and phyto-sanitary measures applicable to trade between the Union and the OCTs;

promoting the harmonisation of measures with international standards, in accordance with the WTO SPS Agreement;

supporting the effective participation of OCTs in organisations that set international sanitary and phyto-sanitary standards;

promoting consultation and exchanges between OCTs and European institutes and laboratories;

establishing and enhancing OCTs technical capacity to implement and monitor sanitary and phyto-sanitary measures;

promoting technology transfer in the area of sanitary and phyto-sanitary measures.

#### Article 65U.K.Prohibition of protectionist measures

The provisions of Chapters 1 and 2 shall not be used as a means of arbitrary discrimination or a disguised restriction on                     trade.                  

### *Chapter 3*U.K.***Monetary and tax matters***

#### Article 66U.K.Tax carve out

1.Without prejudice to the provisions of Article 67, the most favoured- nation treatment granted in accordance with this Decision                        shall not apply to tax advantages which the Member States or OCTs authorities are providing or may provide in the future on                        the basis of agreements to avoid double taxation or other tax arrangements, or domestic tax legislation in force.                  

2.Nothing in this Decision may be construed so as to prevent the adoption or enforcement of any measure aimed at preventing                        tax fraud or avoidance or evasion of taxes pursuant to the tax provisions of agreements to avoid double taxation or other                        tax arrangements, or domestic tax legislation in force.                  

3.Nothing in this Decision shall be construed so as to prevent the respective competent authorities from distinguishing, in                        the application of the relevant provisions of their tax legislation, between taxpayers who are not in the same situation,                        in particular with regard to their place of residence, or with regard to the place where their capital is invested.                  

#### Article 67U.K.Tax and customs arrangements for Union funded contracts

1.The OCTs shall apply to contracts funded by the Union tax and customs arrangements no less favourable than those applied by                        them to the Member State to which the OCTs is linked or to the states to which the most-favoured nation treatment is granted,                        or to international development organisations with which they have relations, whichever treatment is the most favourable.                  

2.Without prejudice to paragraph 1, the following arrangements shall apply to contracts financed by the Union:                  

(a)the contract shall not be subject in the beneficiary OCTs to stamp or registration duties or to fiscal charges having equivalent                        effect, whether such charges already exist or are to be instituted in the future; however, such contracts shall be registered                        in accordance with the laws in force in the OCTs and a fee corresponding to the service rendered may be charged for it;                  

(b)profits and/or income arising from the performance of contracts shall be taxable according to the internal fiscal arrangements                        of the beneficiary OCTs, provided that the natural persons or legal persons who realise such profit and/or income have a permanent                        place of business in that OCTs, or that the performance of the contract takes longer than six months;                  

(c)enterprises which must import equipment in order to carry out works contracts shall, if they so request, benefit from the                        system of temporary admission as laid down by the legislation of the beneficiary OCTs in respect of that equipment;                  

(d)professional equipment necessary for carrying out tasks defined in a service contract shall be temporarily admitted into the                        beneficiary OCTs free of fiscal, import and customs duties and of other charges having equivalent effect where these duties                        and charges do not constitute remuneration for services rendered;                  

(e)imports under supply contracts shall be admitted into the beneficiary OCTs without customs duties, import duties, taxes or                        fiscal charges having equivalent effect. The contract for supplies originating in the OCTs concerned shall be concluded on                        the basis of the ex-works price of the supplies, to which may be added such internal fiscal charges as may be applicable to                        those supplies in the OCTs;                  

(f)fuels, lubricants and hydrocarbon binders and all materials used in the performance of works contracts shall be deemed to                        have been purchased on the local market and shall be subject to fiscal rules applicable under the legislation in force in                        the beneficiary OCTs;                  

(g)personal and household effects imported for use by natural persons, other than those recruited locally, engaged in carrying                        out tasks defined in a service contract and members of their families, shall be exempt from customs or import duties, taxes                        and other fiscal charges having equivalent effect, within the limits of the legislation in force in the beneficiary OCTs.                  

3.Any contractual matter not covered by paragraphs 1 and 2 shall remain subject to the legislation of the OCTs concerned.                  

### *Chapter 4*U.K.***Trade capacity development***

#### Article 68U.K.General approach

With a view to ensuring that OCTs derive the maximum benefit from the provisions of this Decision and that they may participate                     under the best possible conditions in the Union’s internal market as well as regional, sub-regional and international markets,                     the association aims at contributing to the development of the OCTs’ trade capacities by:                  

increasing the OCTs’ competitiveness, self-reliance and economic resilience, through diversifying the range and increasing                              the value and volume of OCTs trade in goods and services and by strengthening the OCTs’ ability to attract private investments                              in various sectors of economic activity;                           

improving cooperation in trade in goods, services and establishment between the OCTs and neighbouring countries.

#### Article 69U.K.Trade dialogue, cooperation and capacity development

In the context of the association, trade dialogue, cooperation and capacity development initiatives may include:

strengthening the OCTs’ capacities to define and implement policies necessary for the development of trade in goods and services;

encouraging the efforts of OCTs to put into place appropriate legal, regulatory and institutional frameworks as well as the                              necessary administrative procedures;                           

promoting private sector development, in particular SMEs;

facilitating market and product development, including product quality improvement;

contributing to the development of human resources and professional skills relevant to trade in goods and services;

enhancing the capacity of business intermediaries to provide OCTs enterprises services pertinent to their exporting activities,                              such as market intelligence;                           

contributing to the creation of a business climate conducive to investment.

### *Chapter 5*U.K.***Cooperation in the area of financial services and taxation matters***

#### Article 70U.K.Cooperation on international financial services

With a view to promote the stability, integrity and transparency of the global financial system, the association may include                     cooperation on international financial services. Such cooperation may concern:                  

the provision of effective and adequate protection of investors and other consumers of financial services;

the prevention and combat of money laundering and financing of terrorism;

the promotion of cooperation between different actors of the financial system, including regulators and supervisors;

the setup of independent and effective mechanisms for supervision of financial services.

#### Article 71U.K.Regulatory alignment in financial services

The Union and the OCTs shall promote regulatory convergence with recognised international standards on regulation and supervision                     in the area of financial services including: the Basel Committee’s ‘Core Principle for Effective Banking Supervision’, the                     International Association of Insurance Supervisors’ ‘Insurance Core Principles’, the International Organisation of Securities                     Commissions’ ‘Objectives and Principles of Securities Regulation’, the OECD’s ‘Agreement on exchange of information on tax                     matters’, the G20 ‘Statement on Transparency and exchange of information for tax purposes’, the Financial Stability Board’s                     ‘Key Attributes of Effective Resolution Regimes for Financial Institutions’ and the Financial Action Task Force’s ‘International                     Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation — the FATF Recommendations’.                  

Where it is appropriate to do so, or at the request of the OCTs concerned, the Union and the OCTs may make efforts to promote                     greater alignment of OCTs legislation with Union Legislation on financial services.                  

#### Article 72U.K.Cooperation between regulatory and supervisory authorities

The Union and the OCTs shall encourage the cooperation between relevant regulatory and supervisory authorities, including                     information exchange, sharing of expertise on financial markets and other such measures. Special attention shall be given                     to the development of administrative capacity of such authorities, inter alia, through personnel exchange and joint training.                  

#### Article 73U.K.Cooperation in taxation matters

The Union and the OCTs shall promote cooperation in the tax area in order to facilitate the collection of legitimate tax revenues                     and to develop measures for the effective implementation of the principles of good governance in the tax area, including transparency,                     exchange of information and fair tax competition.                  

# PART FOURU.K.**INSTRUMENTS FOR SUSTAINABLE DEVELOPMENT**

## *Chapter 1*U.K.***General provisions***

### Article 74U.K.General objectives

The Union shall contribute to the achievement of the association’s overall objectives through the provision of:

adequate financial resources and appropriate technical assistance aimed at strengthening the OCTs’ capacities to formulate                              and implement strategic and regulatory frameworks;                           

long term financing to promote private sector growth.

### Article 75U.K.Definitions

For the purposes of this Part, the following definitions shall apply:

‘programmable aid’ means the non-repayable aid under the European Development Fund allocated to the OCTs in order to finance                              territorial or regional strategies and priorities set out in programming documents;                           

‘programming’ means the process of organisation, decision-making and allocation of indicative financial resources intended                              to implement, on a multi-annual basis, in an area referred to in Part Two of this Decision, the action to achieve the association’s                              objectives for the sustainable development of the OCTs;                           

‘programming document’ means the document which sets out the OCTs’s strategy, priorities and arrangements and translates the                              objectives and targets of the OCTs for its sustainable development in an effective and efficient way to pursue the objectives                              of the association;                           

‘development plans’ referred to in Article 83 means a coherent set of operations defined and financed exclusively by the OCTs                              in the framework of their own policies and strategies of development, and those agreed upon between an OCTs and the Member                              State to which it is linked;                           

‘territorial allocation’ means the amount allocated to individual OCTs for the programmable aid under the European Development                              Fund in order to finance territorial strategies and priorities set out in programming documents;                           

‘regional allocation’ means the amount allocated for the programmable aid under the European Development Fund in order to                              finance regional cooperation strategies or thematic priorities common to several OCTs and set out in programming documents;                           

‘financing decision’ means the act adopted by the Commission specifying the details of the Union’s financial contribution                              and authorizing to grant financial aid from the European Development Fund.                           

### Article 76U.K.Principles of finance cooperation

1.Union financial assistance shall be based on the principles of partnership, ownership, alignment on territorial systems, complementarity                        and subsidiarity.                  

2.Operations funded within the framework of this Decision can take the form of programmable or non-programmable aid.                  

3.Union financial assistance shall:                  

(a)be implemented with due regard to the OCTs respective geographical, social and cultural characteristics, as well as their                        specific potential;                  

(b)ensure that resource flows are accorded on a predictable and regular basis;                  

(c)be flexible and tailored to the situation in each OCTs; and                  

(d)be conducted in full compliance with the respective institutional, legal and financial powers of each of the partners.                  

4.The authorities of the OCTs concerned shall be responsible for implementing operations without prejudice to the powers of                        the Commission to ensure sound financial management in the use of Union funds.                  

## *Chapter 2*U.K.***Financial resources***

### Article 77U.K.Sources of financing

OCTs shall be eligible for the following sources of funding:

resources allocated for the OCTs under the Internal Agreement between the Member States of the Union establishing the 11th                              European Development Fund (EDF);                           

the Union programmes and instruments provided for in the Union’s general budget; and

funds managed by the EIB under the EIB’s own resources, and the resources allocated to the EDF Investment Facility, in accordance                              with the conditions of the Internal Agreement between the Member States of the Union establishing the 11th EDF(7) (the ‘11th EDF Internal Agreement’).                           

## *Chapter 3*U.K.***Specific provisions for the financial assistance under the 11th EDF***

### Article 78U.K.Subject-matter and scope

Within the framework of the strategy and priorities established by the OCTs concerned at local or regional level, and without                     prejudice to humanitarian and emergency aid, financial support may be given to the following activities helping to achieve                     the objectives set out in this Decision:                  

sector policies and reforms as well as projects that are in coherence with them;

institutional development, capacity building and integration of environmental aspects;

technical cooperation; and

additional support in the event of fluctuations in export earnings from exports of goods and services referred in Article                              82.                           

### Article 79U.K.Humanitarian and emergency aid

1.Humanitarian and emergency aid shall be granted in the OCTs faced with serious economic and social difficulties of an exceptional                        nature resulting from natural or man-made disasters or extraordinary circumstances having comparable effects. Humanitarian                        and emergency aid shall be maintained as long as necessary to deal with the urgent problems which arise in such situations.                  

Humanitarian and emergency aid shall be granted solely on the basis of the needs and interests of disaster victims.

2.The aim of humanitarian and emergency aid shall be to:                  

(a)save human lives, prevent and alleviate suffering and maintain human dignity in crisis and post-crisis situations;                  

(b)contribute to the financing and delivery of humanitarian aid and to the direct access to it of its intended beneficiaries                        by all logistical means available;                  

(c)carry out short-term rehabilitation and reconstruction to enable the victims to benefit from a minimum of socioeconomic integration                        and, as soon as possible, create the conditions for a resumption of development on the basis of long-term objectives;                  

(d)address the needs arising from the displacement of people, such as refugees, displaced persons and returnees, following natural                        or man-made disasters so as to meet, for as long as necessary, all the needs of refugees and displaced persons, regardless                        of where they are located, and facilitate action for their voluntary repatriation and re-integration in their country of origin;                        and                  

(e)assist the OCTs in setting up short term disaster prevention and preparedness mechanisms, including for prediction and early                        warning, with a view to reducing the consequences of disasters.                  

3.The aid provided for by this Article may also be granted to OCTs taking in refugees or returnees to meet acute needs not covered                        by emergency assistance.                  

4.Aid provided for by this Article shall be financed from the general budget of the Union. However, it may exceptionally be                        financed from the allocations laid down in Annex II, in addition to the funding from the budget heading concerned.                  

5.Humanitarian and emergency aid operations shall be undertaken at the request of the OCTs affected, the Commission, the Member                        State to which the OCTs is linked, international organisations or local or international non-governmental organisations. Such                        aid shall be administered and implemented under procedures that facilitate rapid, flexible and effective operations.                  

### Article 80U.K.Capacity development

1.Financial assistance may contribute to, among other things, supporting the OCTs with developing the necessary capacities to                        define, implement and monitor territorial and/or regional strategies and actions in view of achieving the general objectives                        for the areas of cooperation mentioned in Parts Two and Three.                  

2.The Union shall support the efforts of the OCTs in developing reliable statistical data regarding those areas.                  

3.The Union may support OCTs in their efforts to improve comparability of their macroeconomic indicators.                  

### Article 81U.K.Technical assistance

1.On the initiative of the Commission, studies or technical assistance measures may be financed in order to ensure the preparation,                        monitoring, evaluation and supervision necessary for implementing this Decision and for its overall evaluation. Technical                        assistance provided locally shall be implemented in all instances in accordance with the rules applicable to decentralised                        financial management.                  

2.On the initiative of the OCTs, studies or technical assistance measures may be financed in relation to the implementation                        of the activities scheduled in the programming documents. The Commission may decide to finance such action either from the                        programmable aid or from the envelope earmarked for technical cooperation measures.                  

### Article 82U.K.Additional support in the event of fluctuations in export earnings

1.In order to mitigate the adverse effects of any short-term fluctuations in export earnings, in particular in the agricultural,                        fisheries and mining sectors, which might jeopardise the attainment of the development objectives of the OCTs concerned, a                        system of additional support shall be instituted within the financial allocation referred to in Annex II.                  

2.Support in the event of short-term fluctuations in export earnings shall be aimed to safeguard macroeconomic and sectoral                        reforms and policies that are at risk as a result of a drop in revenue and remedy the adverse effects of instability of export                        earnings in particular from agricultural and mining products.                  

The dependence of the OCTs economies on exports, in particular in the agricultural and mining sectors, shall be taken into                     account in the allocation of resources referred to in Annex V. In this context the isolated OCTs referred to in Annex I shall                     receive more favourable treatment in accordance with the criteria set out in Annex V.                  

3.The additional resources shall be provided in accordance with the specific modalities of the support mechanism as set out                        in Annex V.                  

4.The Union shall also provide support for market-based insurance schemes designed for OCTs seeking to protect themselves against                        the risk of fluctuations in export earnings.                  

### Article 83U.K.Programming

1.For the purpose of this Decision, programmable aid shall be based on a programming document.                  

2.The programming document may take into account the territorial development plans or other plans agreed upon between the OCTs                        and the Member States to which they are linked.                  

3.Pursuant to Article 10, the OCTs authorities shall assume the primary responsibility for the formulation of strategies, priorities                        and arrangements through the preparation of programming documents in coordination with the Commission and the Member State                        to which the OCTs is linked.                  

4.The OCTs authorities shall be responsible for:                  

(a)establishing their priorities on which the strategy shall be based; and                  

(b)formulating project and programme proposals submitted to and examined with the Commission.                  

### Article 84U.K.Preparation, appraisal and approval of the Programming Document

1.The competent Territorial or, in the case of regional programmes, Regional Authorising Officer shall prepare a proposal for                        a Programming Document following consultations with the widest possible range of stakeholders and shall draw on lessons learned                        and best practices.                  

2.Each proposal for a Programming Document shall be adapted to the needs and specific circumstances of each OCTs. It shall set                        out the focal sector(s) selected for Union financing, the specific objectives, the expected results, the performance indicators                        by which it shall be assessed and evaluated and the indicative financial allocation. It shall promote local ownership of cooperation                        programmes.                  

3.The proposal for the Programming Document shall be the subject of an exchange of views between the OCTs and Member State concerned                        and the Commission since the early stages of the programming process and with a view to promoting complementarity and consistency                        among their respective cooperation activities.                  

4.The Commission shall appraise the proposal for the Programming Document to determine whether it contains all the elements                        required and is consistent with the aims of this Decision and the relevant Union policies. The Commission shall consult with                        the European Investment Bank on the draft Programming Document.                  

5.The OCTs shall provide all the necessary information, including the results of any feasibility studies, to make the appraisal                        of the draft Programming Document by the Commission as effective as possible.                  

6.The OCTs authorities and the Commission shall be jointly responsible for approving the programming document. The Commission                        shall approve the programming document following the procedure provided for in Article 86.                  

### Article 85U.K.Implementation

1.The Commission shall adopt the financing decision corresponding to a programming document in accordance with the standards                        set out in the Financial Regulation applicable to the 11th EDF and following the procedure provided for in Article 87.                  

2.The Commission shall implement OCTs 11th EDF resources in any of the ways set out in the Financial Regulation applicable to                        the 11th EDF and in accordance with the conditions set out in this Decision and in the measures implementing that Decision.                        To this end, it shall conclude financing agreements with the relevant authorities of the OCTs.                  

3.The OCTs authorities shall be responsible for:                  

(a)preparing, negotiating and concluding contracts;                  

(b)implementing and managing projects and programmes; and                  

(c)maintaining projects and programmes and ensuring their sustainability.                  

4.The relevant authorities of the OCTs and the Commission shall be jointly responsible for:                  

(a)ensuring equality of conditions for participation in invitations to tender and contracts;                  

(b)monitoring and evaluating the effects and results of projects and programmes; and                  

(c)ensuring the proper, prompt and efficient execution of projects and programmes.                  

5.To facilitate the exchanges of views, technical meetings shall be held at least once a year between the Territorial Authorising                        Officers, the Member States concerned and representatives of the Commission involved in the programming, notably through the                        use of modern technologies or, if possible, as an extension of the OCTs-EU Forum dialogue.                  

6.Actions financed under the 11th EDF may be implemented with parallel or joint co-financing subject to provisions of the Financial                        Regulation applicable to the 11th EDF.                  

### Article 86U.K.Territorial and Regional Authorising Officers

1.The Government of each OCTs shall appoint a Territorial Authorising Officer to represent it in all operations financed from                        the resources of the 11th EDF managed by the Commission and the European Investment Bank. The Territorial Authorising Officer                        shall appoint one or more deputy Territorial Authorising Officers to replace him when he is unable to carry out his duties                        and shall inform the Commission of this appointment. Wherever the conditions regarding institutional capacity and sound financial                        management are met, the Territorial Authorising Officer may delegate his functions for implementation of the programmes and                        projects concerned to the body responsible within the competent OCTs authority. The Territorial Authorising Officer shall                        inform *ex-ante* the Commission of any such delegation.                  

When the Commission becomes aware of problems in carrying out procedures relating to management of resources from the 11th                     EDF, it shall, in conjunction with the Territorial Authorising Officer, make all contacts necessary to remedy the situation                     and take any appropriate steps. The Territorial Authorising Officer shall assume financial responsibility only for the executive                     tasks entrusted to him.                  

Where resources from the 11th EDF are managed indirectly and subject to any additional powers that might be granted by the                     Commission, the Territorial Authorising Officer shall:                  

(a)be responsible for the coordination, programming, regular monitoring and reviews of implementation of cooperation, and for                        coordination with donors;                  

(b)in close cooperation with the Commission, be responsible for the preparation, submission and appraisal of programmes and projects.                  

2.Where 11th EDF resources are managed in an indirect way and subject to any additional powers that might be granted by the                        Commission, the relevant Territorial Authorising Officer shall act as the Contracting Authority for programmes implemented                        by means of tenders or calls for proposals, under the *ex-ante* control of the Commission.                  

3.The Territorial Authorising Officer shall, during the execution of operations and subject to the requirement to inform the                        Commission, decide on:                  

(a)technical adjustments and alterations to programmes and projects in matters of detail so long as they do not affect the technical                        solution adopted and remain within the limits of the reserve for adjustments provided for in the financing agreement;                  

(b)changes of site for multiple-unit programmes or projects where justified on technical, economic or social grounds;                  

(c)imposition or remission of penalties for delay;                  

(d)acts discharging guarantors;                  

(e)subcontracting;                  

(f)final acceptance, provided that the Commission has endorsed the provisional acceptance, the corresponding minutes and, where                        appropriate, is present at the final acceptance, in particular where the extent of the reservations recorded at the provisional                        acceptance necessitates major additional work; and hiring of consultants and other technical assistance experts.                  

4.In the case of regional programmes, the authorities of the participating OCTs shall designate a Regional Authorising Officer                        among the actors of cooperation referred to in Article 11. The duties of the Regional Authorising Officer correspond *mutatis mutandis* to those of the Territorial Authorising Officer.                  

### Article 87U.K.EDF-OCTs Committee

1.The Commission shall, where appropriate, be assisted by the Committee created by the 11th EDF Internal Agreement.                  

2.When exercising the powers conferred on it by this Decision, the Committee shall be known as the ‘EDF-OCTs Committee’. The                        procedures of the Committee laid down in the 11th EDF Internal Agreement and the Implementation Regulation applicable to the                        11th EDF shall apply to the EDF-OCTs Committee. Until the entry into force of the latter Regulation, the procedures laid down                        in Council Regulation (EC) No 617/2007(8) shall apply.                  

3.The Committee shall focus its work on the substantive issues of cooperation at OCTs and regional level. In the interests of                        coherence, coordination and complementarity, it shall monitor the implementation of the Programming Documents.                  

4.The Committee shall give its opinion on:                  

(a)draft Programming Documents and any amendments to them; and                  

(b)the financing decisions for implementing this Part of the Decision.                  

### Article 88U.K.Role of Union delegations

1.Where the Union is represented by a Delegation under the authority of a Head of Delegation, the provisions of the Financial                        Regulation applicable to the 11th EDF concerning authorising officers and accounting officers by subdelegation shall apply.                  

2.The Territorial and/or Regional Authorising Officer shall cooperate and work closely with the Head of Delegation, who shall                        be the main contact for the different actors of cooperation in the OCTs concerned.                  

### Article 89U.K.Rules on nationality and origin for public procurement, grants and other award procedures for OCTs

1.General rules on eligibility:                  

(a)Participation in the award of procurement contracts, grants and other award procedures for actions financed under this Decision                        for the benefit of third parties shall be open to all natural persons who are nationals of, and legal persons which are effectively                        established in, an eligible country or territory as defined in paragraph 2, and to International Organisations.                  

(b)In the case of actions jointly co-financed with a partner or other donor or implemented through a Member State in shared management                        or through a Trust Fund established by the Commission, countries which are eligible under the rules of that partner, other                        donor or Member State or determined in the constitutive act of the trust fund, shall also be eligible.                  

In the case of actions implemented through entrusted bodies, which are Member States or their agencies, the European Investment                     Bank or through International Organisations or their agencies, natural and legal persons who are eligible under the rules                     of that entrusted body, as identified in the agreements concluded with the co-financing or implementing body, shall also be                     eligible.                  

(c)In the case of actions financed under this Decision and, in addition, under another Instrument for external action, including                        the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States, of the one part, and                        the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000(9), as last amended in Ouagadougou on 22 June 2010(10), the countries identified under any of these Instruments shall be considered eligible for the purpose of that action.                  

In the case of actions of a global, regional or cross-border nature financed under this Decision, natural and legal persons                     from countries, territories and regions covered by the action may participate in the procedures implementing such actions.                  

(d)All supplies purchased under a procurement contract, or in accordance with a grant agreement, financed under this Decision                        shall originate from an eligible country or territory. However, they may originate from any country or territory when the                        amount of the supplies to be purchased is below the threshold for the use of the competitive negotiated procedure. For the                        purposes of this Article, the term ‘origin’ is defined in Article 23 and 24 of Council Regulation (EEC) No 2913/92(11) and other Union legislation governing non-preferential origin.                  

(e)The rules under this Article do not apply to, and do not create nationality restrictions for, natural persons employed or                        otherwise legally contracted by an eligible contractor or, where applicable, subcontractor.                  

(f)Eligibility as defined in this Article may be restricted with regard to the nationality, localisation or nature of applicants,                        where required by the nature and the objectives of the action and as necessary for its effective implementation.                  

(g)Natural and legal persons who have been awarded contracts shall respect applicable environmental legislation including multilateral                        environmental agreements as well as internationally agreed core labour standards.                  

2.Tenderers, applicants and candidates from the following countries and territories shall be eligible to funding under this                        Decision:                  

(a)Member States, candidate countries and potential candidates as recognised by the Union, and members of the European Economic                        Area;                  

(b)OCTs;                  

(c)developing countries and territories, as included in the OECD-DAC list of ODA Recipients, which are not members of the G-20                        group;                  

(d)countries for which reciprocal access to external assistance is established by the Commission. Reciprocal access may be granted,                        for a limited period of at least one year, whenever a country grants eligibility on equal terms to entities from the Union                        and from OCTs;                  

(e)Member States of the OECD, in the case of contracts implemented in a Least Developed Country;                  

(f)when announced in advance in the documents of the procedure:                  

countries having traditional economic, trade or geographical links with neighbouring beneficiary countries;

all countries, in the case of urgency or of unavailability of products and services in the markets of the eligible countries.

3.Tenderers, applicants and candidates from non-eligible countries or goods from non-eligible origin may be accepted as eligible                        by the Commission in duly substantiated cases where the eligibility rules would make the realisation of a project, a programme                        or an action impossible or exceedingly difficult.                  

4.For actions implemented in shared management, the relevant Member State to which the Commission has delegated implementation                        tasks is entitled, on behalf of the Commission, to authorise participation of tenderers, applicants and candidates from other                        countries and authorise goods from other countries within the meaning of point (f) of paragraph 2, and to accept as eligible,                        tenderers, applicants and candidates from non-eligible countries within the meaning of paragraph 3, or goods from non-eligible                        origin within the meaning of point (d) of paragraph 1.                  

### Article 90U.K.Protecting the Union’s financial interests and financial controls

1.The Commission shall take appropriate measures ensuring that, when actions financed under this Decision are implemented, the                        financial interests of the Union are protected by the application of preventive measures against fraud, corruption and any                        other illegal activities, by effective checks and, if irregularities are detected, by the recovery of the amounts wrongly                        paid and, where appropriate, by effective, proportionate and deterrent penalties.                  

2.The Commission and the Court of Auditors (ECA) shall have the power of audit, on the basis of documents and on-the-spot, over                        all grant beneficiaries, contractors and subcontractors who have received Union funds.                  

The European Anti-fraud Office (OLAF) may carry out on-the-spot checks and inspections on economic operators concerned directly                     or indirectly by such funding in accordance with the procedures laid down in Council Regulation (Euratom, EC) No 2185/96(12) with a view to establishing whether there has been fraud, corruption or any other illegal activity in connection with a grant                     agreement or grant decision or a contract concerning Union funding.                  

Without prejudice to the first and second subparagraphs, agreements with third countries and international organisations,                     and grant agreements and grant decisions and contracts resulting from the implementation of this Decision shall expressly                     empower the Commission, the ECA and OLAF to conduct such audits, on-the-spot checks and inspections, in accordance with the                     relevant EDF Financial Regulation.                  

3.OCTs shall bear primary responsibility for the financial supervision of the Union funds. This shall be carried out, where                        appropriate, in coordination with the Member State to which the OCTs is linked in accordance with the applicable national                        legislation.                  

4.The Commission shall be responsible for:                  

(a)ensuring that management and control systems exist and function properly in the OCTs concerned so as to ensure that the Union                        funds are used correctly and effectively; and                  

(b)in the event of irregularities, sending recommendations or requests for corrective measures to remedy those irregularities                        and rectify any management shortcomings found.                  

5.The Commission, the OCTs and, where appropriate, the Member State to which it is linked, shall cooperate on the basis of administrative                        arrangements at annual or biannual meetings to coordinate programmes, methodologies and the implementation of controls.                  

6.With regard to financial corrections:                  

(a)the OCTs concerned shall be responsible in the first instance for detecting and correcting financial irregularities;                  

(b)however, in the event of shortcomings by the OCTs concerned, the Commission shall take action, if the OCTs fails to remedy                        the situation and attempts at conciliation are unsuccessful, to reduce or withdraw the balance of the overall allocation corresponding                        to the financing decision of the Programming Document.                  

### Article 91U.K.Monitoring, evaluation, review process and reporting

1.Financial cooperation shall be sufficiently flexible to ensure that operations are kept constantly in line with the objectives                        of this Decision and take account of any changes occurring in the economic situation, priorities and objectives of the OCTs                        concerned, in particular by means of an ad hoc review of the Programming Document.                  

2.The review may be launched by the Commission or at the request of the OCTs concerned and following the agreement of the Commission.                  

3.The Commission shall examine the progress made in implementing the financial assistance provided to the OCTs, under the 11th                        EDF, and shall submit to the Council a report every year starting in 2015 on the implementation and results and, as far as                        possible, the main outcomes and impacts of the Union’s financial assistance. The report shall also be sent to the European                        Parliament, the European Economic and Social Committee and the Committee of the Regions.                  

4.The report referred to in paragraph 3 shall contain information relating to the previous year on the measures financed, the                        results of monitoring and evaluation exercises, the involvement of the relevant partners, and the implementation of the 11th                        EDF commitments and payments appropriations. The report shall assess the results of the assistance, using as far as possible,                        specific and measurable indicators. It shall reflect the main lessons learned and the follow-up to the recommendations of                        the evaluations of the previous years.                  

## *Chapter 4*U.K.***Principles of eligibility***

### Article 92U.K.Eligibility for territorial financing

1.The OCTs public authorities shall be eligible for financial support provided for in this Decision.                  

2.Subject to the agreement of the authorities of the OCTs concerned, the following entities or bodies shall also be eligible                        for financial support provided for in this Decision:                  

(a)local, national and/or regional public or semi-public agencies, departments or local authorities of the OCTs and in particular                        their financial institutions and development banks;                  

(b)companies and firms of the OCTs and of regional groups;                  

(c)companies and firms of a Member State, so as to enable them, in addition to their own contribution, to undertake productive                        projects in the territory of an OCTs;                  

(d)OCTs or Union financial intermediaries promoting and financing private investments in the OCTs; and                  

(e)actors of decentralised cooperation and other non-governmental actors from OCTs and from the Union, to enable them to undertake                        economic, cultural, social and educational projects and programmes in the OCTs in the framework of decentralised cooperation,                        as referred to in Article 12.                  

### Article 93U.K.Eligibility for regional financing

1.A regional allocation shall be used for operations benefiting and involving:                  

(a)two or more OCTs regardless of their location;                  

(b)one or more OCTs and one or more outermost regions referred to in Article 349 TFEU;                  

(c)one or more OCTs and one or more neighbouring ACP and/or non-ACP States;                  

(d)one or more OCTs, one or more outermost regions and one or more ACP and/or non-ACP States;                  

(e)two or more regional bodies of which OCTs are members;                  

(f)one or more OCTs and regional bodies of which OCTs, ACP States or one or more of the outermost regions are members;                  

(g)the OCTs and the Union as a whole; or                  

(h)one or more entities, authorities or other bodies from at least one OCTs, being members of an EGTC in accordance with Article                        8, one or more outermost regions and one or more neighbouring ACP and/or non-ACP States.                  

2.The funding to enable participation of the ACP States, outermost regions and other countries shall be additional to funds                        allocated to the OCTs under this Decision.                  

3.The participation of ACP States, outermost regions and other countries to programmes established pursuant to this Decision                        shall be envisaged only to the extent that:                  

(a)the centre of gravity of the projects and programmes funded under the multi-annual financial framework of cooperation remains                        in an OCTs;                  

(b)equivalent provisions exist in the framework of the Union’s financial instruments; and                  

(c)the principle of proportionality is respected.                  

4.Appropriate measures will allow for matching of funding of credits from the EDF and the general budget of the Union to finance                        cooperation projects between the OCTs, the ACP Countries, the outermost regions as well as other countries, in particular                        simplified mechanisms for joint management of such projects.                  

### Article 94U.K.Eligibility for Union programmes

1.Natural persons from an OCTs, as defined in Article 50, and, where applicable, the relevant public and/or private bodies and                        institutions in an OCTs, shall be eligible for participation in and funding from Union programmes, subject to the rules and                        objectives of the programmes and possible arrangements applicable to the Member State to which the OCTs is linked.                  

2.OCTs shall also be eligible for support under programmes of the Union for cooperation with other countries, notably developing                        countries, subject to the rules, objectives and arrangements of those programmes.                  

3.The Commission shall report to the EDF-OCTs Committee on the participation of OCTs to Union programmes, on the basis of information                        contained in the Annual Implementation Report submitted by OCTs and other information available.                  

# PART FIVEU.K.**FINAL PROVISIONS**

## Article 95U.K.Delegation of powers to the Commission

The Commission shall be empowered to adopt delegated acts amending the Appendices of Annex VI for the purpose of taking into                     account technological development and changes in customs legislation, in accordance with the procedure laid down in Article                     96.                  

## Article 96U.K.Exercise of the delegation

1.The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.                  

2.The power to adopt delegated acts referred to in Article 95 shall be conferred on the Commission for a period of 5 years from                        1 January 2014. The Commission shall draw up a report in respect of the delegation of power not later than nine months before                        the end of the five-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless                        the Council opposes such extension not later than three months before the end of each period.                  

3.The delegation of power referred to in Article 95 may be revoked at any time by the Council. A decision to revoke shall put                        an end to the delegation of power specified in that Decision. It shall take effect on the day following the publication of                        the decision in the *Official Journal of the European Union* or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.                  

4.As soon as it adopts a delegated act, the Commission shall notify it to the Council.                  

5.A delegated act adopted pursuant to Article 95 shall enter into force only if no objection has been expressed by the Council                        within a period of 2 months of notification of the act to the Council or if, before the expiry of that period, the Council                        has informed the Commission that it will not object. That period shall be extended by 2 months at the initiative of the Council.                  

## Article 97U.K.Change of status

The Council, acting according to Article 203 TFEU, shall decide on any necessary adjustments to this Decision when:

an OCTs becomes independent;

an OCTs leaves the association;

an OCTs becomes an outermost region;

an outermost region becomes an OCTs.

## Article 98U.K.Repeal

Council Decision 2001/822/EC is hereby repealed.

References to the repealed Decision shall be construed as references to this Decision.

## Article 99U.K.Entry into force

This Decision shall enter into force on 1 January 2014.

Annex VI shall apply as provided for in Article 65 of that Annex.

Done at Brussels, 25 November 2013.

*For the Council*                            

*The President*                            

D. Pavalkis                            

## ANNEX IU.K.**LIST OF THE ISOLATED OCTs**

          -  Falkland Islands 
          -  Saint Helena, Ascension Island, Tristan da Cunha 
          -  St Pierre and Miquelon 

## ANNEX IIU.K.**UNION FINANCIAL ASSISTANCE: 11th EDF**

### Article 1U.K.Allocation between the various instruments

1.For the purposes of this Decision, for the seven-year period from 1 January 2014 to 31 December 2020, the overall amount of                        the Union financial assistance of EUR 364,5 million under the 11th EDF fixed by the Internal Agreement establishing the 11th                        EDF shall be allocated as follows:                  

(a)EUR 351 million in the form of grants for programmable support for long-term development, humanitarian aid, emergency aid,                        refugee aid and additional support in the event of fluctuations in export earnings as well as for support for regional cooperation                        and integration;                  

(b)EUR 5 million to finance interest subsidies and technical assistance in the context of the OCTs Investment Facility referred                        to in Annex IV;                  

(c)EUR 8,5 million to studies or technical assistance measures in accordance with Article 80 of this Decision, and to an overall                        evaluation of the Decision to be made four years before it expires, at the latest.                  

2.The funds of the 11th EDF shall not be committed after 31 December 2020, unless the Council unanimously decides otherwise,                        on a proposal from the Commission.                  

3.Should the funds provided for in paragraph 1 be exhausted before this Decision expires, the Council shall take the appropriate                        measures.                  

### Article 2U.K.Administration of resources

The EIB shall administer the loans made from its own resources referred to in Annex III, as well as the operations financed                     under the OCTs Investment Facility referred to in Annex IV. All other financial resources under this Decision shall be administered                     by the Commission.                  

### Article 3U.K.Allocation between the OCTs

The amount of EUR 351 million mentioned in point (a) of Article 1(1) of this Annex shall be allocated on the basis of the                     needs and performance of the OCTs in accordance with the following criteria:                  

An amount A of EUR 229,5 million shall be allocated to the OCTs other than Greenland in particular to finance the initiatives                              referred to in the programming document. Where appropriate, the programming document shall pay particular attention to actions                              aimed at strengthening governance and the institutional capacities of the beneficiary OCTs and, where relevant, the likely                              timetable of the envisaged actions.                           

The allocation of amount A shall take into account the size of the population, the level of Gross Domestic Product (GDP),                              the level of previous EDF allocations and constraints due to the geographical isolation of OCTs as mentioned in Article 9                              of this Decision. Any allocation shall be such as to allow its effective use. It should be decided in conformity with the                              principle of subsidiarity.                           

EUR 100 million shall be allocated to support regional cooperation and integration in accordance with Article 7 of this Decision,                              in particular regarding the priorities and areas of mutual interests referred to in Article 5 of this Decision and through                              consultation via the instances of the EU-OCTs partnership referred to in Article 14 of this Decision. It shall seek coordination                              with other Union financial instruments, cooperation between the OCTs and the outermost regions referred to in Article 349                              TFEU.                           

A non-allocated reserve B of EUR 21,5 million shall be set aside to:

finance humanitarian and emergency assistance for the OCTs and, if necessary, the additional support in the event of fluctuations                                       in export earnings, in accordance with Annex IV;                                    

make new allocations in accordance with the development of the needs and performance of the OCTs referred to under paragraph                                       1.                                    

Performance shall be evaluated in an objective and transparent way, taking into account, inter alia, the use of the allocated                              resources, the effective implementation of the ongoing operations and the sustainable development measures adopted.                           

The Commission, following a mid-term review, may decide on the allocation of any non-allocated funds mentioned in this Article.                              The procedures for this review and the decision on any new allocation shall be adopted in accordance with Article 87 of this                              Decision.                           

## ANNEX IIIU.K.**UNION FINANCIAL ASSISTANCE: LOANS FROM THE EIB’S OWN RESOURCES**

### Article 1U.K.Amount

An amount of up to EUR 100 million shall be provided by the EIB for financing from its own resources in accordance with its                     own rules and procedures and the conditions provided for by its statutes and this Annex.                  

### Article 2U.K.EIB

1.The EIB shall:                  

(a)contribute, through the resources it manages, to the economic and industrial development of the OCTs on a territorial and                        regional basis and, to this end, finance as a priority productive projects or other investments aimed at promoting the private                        sector in all economic sectors;                  

(b)establish close cooperation links with national and regional development banks and with banking and financial institutions                        of the OCTs and of the Union;                  

(c)in consultation with the OCTs concerned, adapt the arrangements and procedures for implementing development finance cooperation,                        as set out in this Decision, if necessary, to take account of the nature of the projects and to act in accordance with the                        objectives of this Decision, within the framework of the procedures laid down by its statute.                  

2.Financing from the EIB’s own resources shall be granted under the following terms and conditions:                  

(a)the reference rate of interest shall be the rate applied by the EIB for a loan with the same conditions as to currency, repayment                        period and securities on the day of signature of the contract or on the date of disbursement;                  

(b)however:                  

in principle, public sector projects shall be eligible for an interest rate subsidy of 3 %;

for private sector projects which involve restructuring operations in the framework of privatisation or for projects with                              substantial and clearly demonstrable social or environmental benefits, loans may be extended with an interest rate subsidy                              the amount and form of which will be decided with respect to the particular characteristics of the project. However, the interest                              rate subsidy shall not be higher than 3 %.                           

the final interest rate shall, in any case, never be less than 50 % of the reference rate.

(c)the amount of the interest rate subsidy calculated in terms of its value at the times of disbursement of the loan shall be                        charged against the interest subsidy allocation laid down in Article 2(11) of Annex IV, and paid directly to the EIB. Interest                        subsidies may be capitalised or used in the form of grants to support project-related technical assistance, particularly for                        financial institutions in the OCTs.                  

(d)the repayment period of loans made by the EIB from its own resources shall be determined on the basis of the economic and                        financial characteristics of the project, but may not exceed 25 years. These loans shall normally comprise a grace period                        fixed by reference to the construction period of the project.                  

3.For investments financed by the EIB from its own resources in public sector companies, specific project-related guarantees                        or undertakings may be required from the OCTs concerned.                  

### Article 3U.K.Conditions for foreign exchange transfer

1.The OCTs concerned shall, in respect of operations under this Decision and in respect of which they have given their written                        approval:                  

(a)grant exemption from all national or local duties, fiscal charges on interest, commission and amortisation of loans due in                        accordance with the law or laws of the OCTs concerned;                  

(b)place at the disposal of the beneficiaries the currency necessary for the payment of interest, commission and the amortisation                        of loans due in terms of financing contracts granted for the implementation of projects on their territories;                  

(c)make available to the EIB the foreign currency necessary for the transfer of all sums received by it in national currency                        at the exchange rate applicable between the euro or other currencies of transfer and the national currency at the date of                        the transfer. These include all forms of remuneration, such as, inter alia, interest, dividends, commissions and fees, as                        well as the amortisation of loans and the proceeds from the sale of shares due in terms of financing contracts granted for                        the implementation of projects on their territories.                  

2.For the purposes of this Article, ‘OCTs concerned’ shall mean the OCTs benefitting from the operation.                  

## ANNEX IVU.K.**UNION FINANCIAL ASSISTANCE: EIB INVESTMENT FACILITY**

### Article 1U.K.Objective

The OCTs Investment Facility (the Facility) set up by Decision 2001/822/EC with EDF funds to promote commercially viable enterprises                     shall be maintained.                  

The terms and conditions of financing in relation to the operations of the Facility and the loans from own resources of the                     EIB shall be as laid down in the Internal Agreement establishing the 11th EDF and in Annex III and in this Annex.                  

These resources may be channelled to eligible enterprises, either directly or indirectly, through eligible investment funds                     and/or financial intermediaries.                  

### Article 2U.K.Resources of the Facility

1.The resources of the Facility may be used, inter alia, to:                  

(a)provide risk capital in the form of:                  

equity participation in OCTs enterprises, based or not in an OCTs, including financial institutions;

quasi-capital assistance to OCTs enterprises, including financial institutions;

guarantees and other credit enhancements which may be used to cover political and other investment-related risks, both for                              foreign and local investors or lenders;                           

(b)provide ordinary loans.                  

2.Equity participation shall, in general, be for non-controlling minority holdings and shall be remunerated on the basis of                        the performance of the project concerned.                  

3.Quasi-capital assistance may consist of shareholders’ advances, convertible bonds, conditional, subordinated and participating                        loans or any other similar form of assistance. Such assistance may consist in particular of:                  

(a)conditional loans, the servicing and/or the duration of which shall be linked to the fulfilment of certain conditions with                        regard to the performance of the project; in the specific case of conditional loans for pre-investment studies or other project-related                        technical assistance, servicing may be waived if the investment is not carried out;                  

(b)participating loans, the servicing and/or the duration of which shall be linked to the financial return of the project;                  

(c)subordinated loans, which shall be repaid only after other claims have been settled.                  

4.The remuneration of each operation shall be specified when the loan is made.                  

5.Without prejudice to paragraph 4:                  

(a)in the case of conditional or participating loans, the remuneration shall normally comprise a fixed interest rate of not more                        than 3 % and a variable component related to the performance of the project;                  

(b)in the case of subordinated loans, the interest rate shall be market related.                  

6.Guarantees shall be priced so as to reflect the risks insured and the particular characteristics of the operation.                  

7.The interest rate of ordinary loans shall comprise a reference rate applied by the EIB for comparable loans with the same                        terms and conditions as to grace and repayment periods and a mark up determined by the EIB.                  

8.Ordinary loans may be extended on concessional terms and conditions in the following cases:                  

(a)for infrastructure projects in the least developed OCTs, in post-conflict OCTs or in post-natural disaster OCTs that are prerequisites                        for private sector development. In such cases, the interest rate of the loan will be reduced by 3 %;                  

(b)for projects which involve restructuring operations in the framework of privatisation or for projects with substantial and                        clearly demonstrable social or environmental benefits. In such cases, loans may be extended with an interest rate subsidy                        the amount and form of which will be decided with respect to the particular characteristics of the project. However, the interest                        rate subsidy shall not be higher than 3 %.                  

9.The final rate of loans falling under point (a) or (b) of paragraph 8 shall, in any case, never be less than 50 % of the reference                        rate.                  

10.The funds to be provided for these concessional purposes will be made available from the Facility and shall not exceed the                        overall allocation for investment financing by the Facility and by the EIB from its own resources.                  

11.Interest subsidies may be capitalised or may be used in the form of grants to support project-related technical assistance,                        particularly for financial institutions in the OCTs.                  

### Article 3U.K.Operations of the Facility

1.The Facility shall operate in all economic sectors and support investments of private and commercially run public sector entities,                        including revenue generating economic and technological infrastructure critical for the private sector. The Facility shall:                  

(a)be managed as a revolving fund and aim at being financially sustainable. Its operations shall be on market-related terms and                        conditions and shall avoid creating distortions on local markets and displacing private sources of finances;                  

(b)support the OCTs financial sector and have a catalytic effect by encouraging the mobilisation of long-term local resources                        and attracting foreign private investors and lenders to projects in the OCTs;                  

(c)bear part of the risk of the projects it funds, its financial sustainability being ensured through the portfolio as a whole                        and not from individual operations;                  

(d)seek to channel funds through OCTs institutions and programmes that promote the development of small and medium-sized enterprises                        (SMEs).                  

2.The EIB shall be remunerated for the cost incurred in managing the Facility. The remuneration of the EIB shall include a fixed                        component of 0,5 % a year of the initial endowment and a variable component of an amount of up to 1,5 % a year of the portfolio                        of the Facility that is invested in projects in OCTs. The remuneration shall be financed out of the Facility.                  

3.Upon expiry of this Decision, and in the absence of a specific decision by the Council, the cumulative net reflows to the                        Facility shall be carried over to the next OCTs Financial Instrument.                  

### Article 4U.K.Conditions for foreign exchange rate risk

In order to minimise the effects of exchange rate fluctuations, the problems of exchange rate risk shall be dealt with in                     the following way:                  

in the case of equity participation designed to strengthen an enterprise’s own funds, the exchange rate risk shall, as a general                              rule, be borne by the Facility;                           

in the case of risk capital financing for SMEs, the exchange rate risk shall as a general rule be shared, on the one hand,                              by the Union, and on the other hand, by the other parties involved. On average, the foreign exchange rate risk shall be shared                              equally;                           

where feasible and appropriate, particularly in countries characterised by macroeconomic and financial stability, the Facility                              will endeavour to extend loans in local OCTs currencies, thus taking the foreign exchange risk.                           

### Article 5U.K.Financial controls

1.Investment Facility operations shall be subject to the control and discharge procedure laid down in the Statutes of the EIB                        for all of its operations.                  

2.The ECA’s supervision of Investment Facility operations shall be carried out in accordance with the procedures agreed upon                        between the Commission, the EIB and the ECA, and in particular the Tripartite Agreement between the European Commission, the                        European Court of Auditors and the European Investment Bank of 27 October 2003, as amended, supplemented or modified from                        time to time.                  

### Article 6U.K.Privileges and immunities

1.The representatives of the EIB, while they are engaged in activities connected with or in implementation of this Decision,                        shall enjoy in the OCTs the customary privileges, immunities and facilities while carrying out their duties and while travelling                        to or from the place at which they are required to carry out such duties.                  

2.For its official communications and the transmission of all its documents, the EIB shall enjoy in the territory of the OCTs                        the treatment accorded to international organisations.                  

3.Official correspondence and other official communications of the EIB shall not be subject to censorship.                  

## ANNEX VU.K.**UNION FINANCIAL ASSISTANCE: ADDITIONAL SUPPORT IN THE EVENT OF SHORT-TERM FLUCTUATIONS IN EXPORT EARNINGS**

### Article 1U.K.Principles

1.The degree of dependence of an OCTs economy on the export of goods, and in particular from agricultural, fisheries and mining                        products shall be a criterion for determining the allocation of long-term development.                  

2.In order to mitigate the adverse effects of instability of export earnings and safeguard the development programme jeopardised                        by the drop in revenue, additional financial support may be mobilised from the programmable resources for the country’s long-term                        development on the basis of Articles 2 and 3 of this Annex.                  

### Article 2U.K.Eligibility criteria

1.Eligibility for additional resources shall be established by:                  

(a)a 10 %, or 2 % in the case of isolated OCTs as mentioned in Annex I, loss of export earnings from goods compared with the                        arithmetical average of the earnings in the first three years of the first four years preceding the application year; or                  

(b)a 10 %, or 2 % in the case of isolated OCTs as mentioned in Annex I, loss of export earnings from the total of agricultural,                        fisheries or mineral products compared with the arithmetical average of the earnings in the first three years of the first                        four years preceding the application year for countries where the agricultural, fisheries or mineral export revenues represent                        more than 40 % of total export revenues from goods.                  

2.Entitlement to additional support shall be limited to four successive years.                  

3.The additional resources shall be reflected in the public accounts of the country concerned. They shall be utilised in accordance                        with the implementing provisions to be laid down pursuant to Article 85 of this Decision. By agreement of both Parties the                        resources may be used to finance programmes included in the national budget. However a part of the additional resources may                        also be set aside for specific sectors.                  

### Article 3U.K.Advances

The system for allocating additional resources shall provide for advances to cover any delays in obtaining consolidated trade                     statistics and to ensure that the resources in question can be included in the budget of the year following the application                     year. Advances shall be mobilised on the basis of provisional export statistics drawn up by the authorities of the OCTs and                     submitted to the Commission in advance of the official final consolidated statistics. The maximum advance shall be 80 % of                     the estimated amount of additional resources for the application year. The amounts thus mobilised shall be adjusted by common                     agreement between the Commission and the authorities of the OCTs in the light of final consolidated export statistics and                     the final figure of the public deficit.                  

### Article 4U.K.Revision

The provisions in this Annex shall be subject to review at the latest after two years from the entry into force of the implementing                     provisions referred to in Article 85 of this Decision and subsequently at the request of the Commission, a Member State or                     an OCTs.                  

## ANNEX VIU.K.**CONCERNING THE DEFINITION OF THE CONCEPT OF ‘ORIGINATING PRODUCTS’ AND METHODS OF ADMINISTRATIVE COOPERATION**

### TITLE IU.K.**GENERAL PROVISIONS**

#### Article 1U.K.Definitions

For the purposes of this Annex the following definitions shall apply:

‘EPA countries’ means regions or states which are part of the African, Caribbean and Pacific (ACP) Group of States and which                              have concluded agreements establishing, or leading to the establishment of, Economic Partnership Agreements (EPA), when such                              an EPA is either provisionally applied, or enters into force, whichever is the earlier;                           

‘manufacture’ means any kind of working or processing including assembly;

‘material’ means any ingredient, raw material, component or part, etc., used in the manufacture of the product;

‘product’ means the product being manufactured, even if it is intended for later use in another manufacturing operation;

‘goods’ means both materials and products;

‘fungible materials’ means materials that are of the same kind and commercial quality, with the same technical and physical                              characteristics, and which cannot be distinguished from one another once they are incorporated into the finished product;                           

‘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);                           

‘value of materials’ in the list in Appendix II 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 OCTs. Where the value of the originating materials used needs to be established, this point shall be applied *mutatis mutandis*;                           

‘ex-works price’ means the price paid for the product ex-works to the manufacturer in whose undertaking the last working or                              processing is carried out, provided that the price includes the value of all the materials used and all other costs related                              to its production, minus any internal taxes which are, or may be, repaid when the product obtained is exported.                           

Where the actual price paid does not reflect all costs related to the manufacturing of the product which are actually incurred                              in the OCTs, the ex-works price means the sum of all those costs, minus any internal taxes which are, or may be, repaid when                              the product obtained is exported.                           

For the purpose of this definition, where the last working or processing has been subcontracted to a manufacturer, the term                              ‘manufacturer’ referred to in the first subparagraph of this paragraph may refer to the enterprise that has employed the subcontractor.                           

‘maximum content of non-originating materials’ means the maximum content of non-originating materials which is permitted in                              order to consider a manufacture as working or processing sufficient to confer originating status on the product. It may be                              expressed as a percentage of the ex-works price of the product or as a percentage of the net weight of these materials used                              falling under a specified group of chapters, chapter, heading or sub-heading;                           

‘net weight’ means the weight of the goods themselves without packing materials and packing containers of any kind;

‘chapters’, ‘headings’ and ‘sub-headings’ mean the chapters, the headings and sub-headings (four- or six-digit codes) used                              in the nomenclature which makes up the Harmonised Commodity Description and Coding System (Harmonised System) with the changes                              pursuant to the Recommendation of 26 June 2004 of the Customs Cooperation Council;                           

‘classified’ refers to the classification of a product or material under a particular heading or sub-heading of the Harmonised                              System;                           

‘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                                       document, by a single invoice.                                    

‘exporter’ means a person exporting the goods to the Union or to an OCTs who is able to prove the origin of the goods, whether                              or not the person is the manufacturer and whether or not they themselves carry out the export formalities;                           

‘registered exporter’ means an exporter who is registered with the competent authorities of the OCTs concerned or of the Union                              for the purpose of making out statements on origin for the purpose of exporting under this Decision;                           

‘statement on origin’ means a statement made out by the exporter indicating that the products covered by it comply with the                              rules of origin of this Annex, for the purpose of allowing either the person declaring the goods for release for free circulation                              in the Union to claim the benefit of preferential tariff treatment or the economic operator in a OCTs importing materials                              for further processing in the context of cumulation rules to prove the originating status of such goods;                           

‘GSP country’ means a country or territory as defined in Article 2(d) of Regulation (EU) No 978/2012 of the European Parliament                              and of the Council(13).                           

### TITLE IIU.K.**DEFINITION OF THE CONCEPT OF ORIGINATING PRODUCTS**

#### Article 2U.K.General Requirements

1.The following products shall be considered as originating in an OCTs:                  

(a)products wholly obtained in an OCTs within the meaning of Article 3 of this Annex;                  

(b)products obtained in an OCTs incorporating materials which have not been wholly obtained there, provided that such materials                        have undergone sufficient working or processing within the meaning of Article 4 of this Annex.                  

2.Originating products made up of materials wholly obtained or sufficiently worked or processed in two or more OCTs shall be                        considered as products originating in the OCTs where the last working or processing took place.                  

3.For the purpose of implementing paragraph 1, the territories of the OCTs shall be considered as being one territory.                  

#### Article 3U.K.Wholly obtained products

1.The following shall be considered as wholly obtained in an OCTs:                  

(a)mineral products extracted from its soil or from its seabed;                  

(b)plants and vegetable products grown or harvested there;                  

(c)live animals born and raised there;                  

(d)products from live animals raised there;                  

(e)products from slaughtered animals born and raised there;                  

(f)products obtained by hunting or fishing conducted there;                  

(g)products of aquaculture where the fish, crustaceans and molluscs are born there or raised there from eggs, larvae or fry;                  

(h)products of sea fishing and other products taken from the sea outside any territorial sea by its vessels;                  

(i)products made on board its factory ships exclusively from the products referred to in point (h);                  

(j)used articles collected there fit only for the recovery of raw materials;                  

(k)waste and scrap resulting from manufacturing operations conducted there;                  

(l)products extracted from the seabed or below the seabed which is situated outside any territorial sea but where it has exclusive                        exploitation rights;                  

(m)goods produced there exclusively from products specified in points (a) to (l).                  

2.The terms ‘its vessels’ and ‘its factory ships’ in points (h) and (i) of paragraph 1 shall apply only to vessels and factory                        ships which meet each of the following requirements:                  

(a)they are registered in an OCTs or in a Member State;                  

(b)they sail under the flag of an OCTs or of a Member State;                  

(c)they meet one of the following conditions:                  

they are at least 50 % owned by nationals of the OCTs or of Member States; or

they are owned by companies which have their head office and their main place of business in the OCTs or in Member States,                              and which are at least 50 % owned by OCTs, public entities of that country, nationals of that country or of Member States.                           

3.The conditions of paragraph 2 may each be fulfilled in Member States or in different OCTs. In that case, the products shall                        be deemed to have the origin of the OCTs where the vessel or factory ship is registered in accordance with point (a) of paragraph                        2.                  

#### Article 4U.K.Sufficiently worked or processed products

1.Without prejudice to Articles 5 and 6 of this Annex, products which are not wholly obtained in an OCTs within the meaning                        of Article 3 of this Annex shall be considered to originate there, provided that the conditions laid down in the list in Appendix                        II for the goods concerned are fulfilled.                  

2.If a product which has acquired originating status in an OCTs in accordance with paragraph 1 is further processed in that                        OCTs and used as a material in the manufacture of another product, no account shall be taken of the non-originating materials                        which may have been used in its manufacture.                  

3.The determination of whether the requirements of paragraph 1 are met, shall be carried out for each product.                  

However, where the relevant rule is based on compliance with a maximum content of non-originating materials, in order to take                     into account fluctuations in costs and currency rates, the value of the non-originating materials may be calculated on an                     average basis as set out in paragraph 4.                  

4.In the case referred to in the second subparagraph of paragraph 3, an average ex-works price of the product and average value                        of non-originating materials used shall be calculated respectively on the basis of the sum of the ex-works prices charged                        for all sales of the products carried out during the preceding fiscal year and the sum of the value of all the non-originating                        materials used in the manufacture of the products over the preceding fiscal year as defined in the country of export, or,                        where figures for a complete fiscal year are not available, a shorter period which should not be less than three months.                  

5.Exporters having opted for calculations on an average basis shall consistently apply such a method during the year following                        the fiscal year of reference, or, where appropriate, during the year following the shorter period used as a reference. They                        may cease to apply such a method where, during a given fiscal year or a shorter representative period of no less than three                        months, they record that the fluctuations in costs or currency rates which justified the use of such a method have ceased.                  

6.The averages referred to in paragraph 4 shall be used as the ex-works price and the value of non-originating materials respectively,                        for the purpose of establishing compliance with the maximum content of non-originating materials.                  

#### Article 5U.K.Insufficient working or processing operations

1.Without prejudice to paragraph 3, 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 4 of this Annex are satisfied:                  

(a)preserving operations to ensure that the products remain in good condition during transport and storage;                  

(b)breaking-up and assembly of packages;                  

(c)washing, cleaning; removal of dust, oxide, oil, paint or other coverings;                  

(d)ironing or pressing of textiles and textile articles;                  

(e)simple painting and polishing operations;                  

(f)husking and partial or total milling of rice; polishing and glazing of cereals and rice;                  

(g)operations to colour or flavour sugar or form sugar lumps; partial or total milling of crystal sugar;                  

(h)peeling, stoning and shelling, of fruits, nuts and vegetables;                  

(i)sharpening, simple grinding or simple cutting;                  

(j)sifting, screening, sorting, classifying, grading, matching (including the making-up of sets of articles);                  

(k)simple placing in bottles, cans, flasks, bags, cases, boxes, fixing on cards or boards and all other simple packaging operations;                  

(l)affixing or printing marks, labels, logos and other like distinguishing signs on products or their packaging;                  

(m)simple mixing of products, whether or not of different kinds; mixing of sugar with any material;                  

(n)simple addition of water or dilution or dehydration or denaturation of products;                  

(o)simple assembly of parts of articles to constitute a complete article or disassembly of products into parts;                  

(p)a combination of two or more of the operations specified in points (a) to (o);                  

(q)slaughter of animals.                  

2.For the purposes of paragraph 1, operations shall be considered simple when neither special skills nor machines, apparatus                        or tools especially produced or installed for those operations are required for their performance.                  

3.All the operations carried out in an OCTs on a given product shall be taken into account when determining whether the working                        or processing undergone by that product is to be regarded as insufficient within the meaning of paragraph 1.                  

#### Article 6U.K.Tolerances

1.By way of derogation from Article 4 of this Annex and subject to paragraphs 2 and 3 of this Article, non-originating materials                        which, according to the conditions set out in the list in Appendix II are not to be used in the manufacture of a given product                        may nevertheless be used, provided that their total value or net weight assessed for the product does not exceed:                  

(a)15 % of the weight of the product for products falling within Chapter 2 and Chapters 4 to 24, other than processed fishery                        products in Chapter 16;                  

(b)15 % of the ex-works price of the product for other products, except for products falling within Chapters 50 to 63, for which                        the tolerances mentioned in Notes 6 and 7 of Appendix I shall apply.                  

2.Paragraph 1 shall not allow that any of the percentages for the maximum content of non-originating materials as specified                        in the rules laid down in the list in Appendix II are exceeded.                  

3.Paragraphs 1 and 2 shall not apply to products wholly obtained in an OCTs within the meaning of Article 3 of this Annex. However,                        without prejudice to Article 5 and Article 11(2) of this Annex, the tolerance provided for in those paragraphs shall nevertheless                        apply to the sum of all the materials which are used in the manufacture of a product and for which the rule laid down in the                        list in Appendix I for that product requires that such materials be wholly obtained.                  

#### Article 7U.K.Cumulation with the Union

1.Without prejudice to Article 2 of this Annex, materials originating in the Union shall be considered as materials originating                        in an OCTs when incorporated into a product obtained there, provided that they have undergone working or processing which                        goes beyond the operations referred to in Article 5(1).                  

2.Without prejudice to Article 2 of this Annex, working or processing carried out in the Union shall be considered as having                        been carried out in an OCTs, when the materials undergo subsequent working or processing there which goes beyond the operations                        referred to in Article 5(1) of this Annex.                  

3.For the purpose of cumulation provided for in this Article, the origin of the materials shall be established in accordance                        with this Annex.                  

#### Article 8U.K.Cumulation with EPA countries

1.Without prejudice to Article 2 of this Annex, materials originating in the EPA countries shall be considered as materials                        originating in an OCTs when incorporated into a product obtained there, provided that they have undergone working or processing                        which goes beyond the operations referred to in Article 5(1) of this Annex.                  

2.Without prejudice to Article 2 of this Annex, working or processing carried out in the EPA countries shall be considered as                        having been carried out in an OCTs, when the materials undergo subsequent working or processing there which goes beyond the                        operations referred to in Article 5(1) of this Annex.                  

3.For the purpose of paragraph 1 of this Article, the origin of the materials originating in an EPA country shall be determined                        in accordance with the rules of origin applicable to the EPA concerned and relevant provisions on proofs of origin and administrative                        cooperation.                  

The cumulation provided for in this Article shall not apply to the following:

(a)materials originating in the Republic of South Africa which cannot be imported directly in the Union duty-free-quota-free                        in the framework of the EPA between the Union and the Southern African Development Community (SADC);                  

(b)materials listed in Appendix XIII.                  

4.The cumulation provided for in this Article may only be applied provided that:                  

(a)the EPA country supplying the materials and the OCTs manufacturing the final product have undertaken to:                  

comply or ensure compliance with this Annex; and

provide the administrative cooperation necessary to ensure the correct implementation of this Annex both with regard to the                              Union and between themselves;                           

(b)the undertakings referred to in point (a) have been notified to the Commission by the OCTs involved.                  

5.Where EPA countries have already complied with paragraph 4 before the entry into force of this Decision, a new undertaking                        shall not be required.                  

#### Article 9U.K.Cumulation with other countries benefiting from duty-free quota-free access to the market of the Union under the Generalised                        System of Preferences

1.Without prejudice to Article 2 of this Annex, materials originating in countries and territories set out in paragraph 2 of                        this Article shall be considered as materials originating in an OCTs when incorporated into a product obtained there, provided                        they have undergone working or processing which goes beyond the operations referred to in Article 5(1) of this Annex.                  

2.For the purposes of paragraph 1, materials shall originate from a country or territory:                  

(a)benefiting from the ‘Special arrangement for least developed countries’ set out in the Generalised System of Preferences (GSP)(14);                  

(b)benefiting from duty-free quota-free access to the market of the Union at HS 6-digit level under the general arrangement of                        the GSP(15).                  

3.The origin of the materials of the countries or territories concerned shall be determined according to the rules of origin                        laid down pursuant to Article 33 of Regulation (EU) No 978/2012 and in accordance with Articles 32 or 41 of this Annex.                  

4.The cumulation provided for in this paragraph shall not apply to the following:                  

(a)materials which at importation to the Union are subject to antidumping or countervailing duties when originating from the                        country which is subject to these antidumping or countervailing duties;                  

(b)tuna products classified under Harmonised System Chapters 3 and 16, which are covered by Article 7 and 12 of Regulation (EU)                        No 978/2012, and subsequent amending and corresponding legal acts;                  

(c)materials which are covered by Articles 22 and 30 of Regulation (EU) No 978/2012, and subsequent amending and corresponding                        legal acts.                  

5.The cumulation provided for in paragraph 1 of this Article may only be applied provided that:                  

(a)the countries or territories involved in the cumulation have undertaken to comply or ensure compliance with this Annex and                        to provide the administrative cooperation necessary to ensure the correct implementation of this Annex, both with regard to                        the Union and between themselves;                  

(b)the undertaking referred to in point (a) has been notified to the Commission by the OCTs concerned.                  

6.The Commission shall publish in the *Official Journal of the European Union* (C series) the date on which the cumulation provided for in this Article may be applied with those countries or territories                        listed in this Article which have fulfilled the necessary requirements.                  

#### Article 10U.K.Extended cumulation

1.The Commission may grant, at the request of an OCTs, cumulation of origin between an OCTs and a country with which the Union                        has a free trade agreement in accordance with Article XXIV of the General Agreement on Tariffs and Trade (GATT) in force,                        provided that the following conditions are met:                  

(a)the countries or territories involved in the cumulation have undertaken to comply or ensure compliance with this Annex and                        to provide the administrative cooperation necessary to ensure the correct implementation of this Annex, both with regard to                        the Union and between themselves;                  

(b)the undertaking referred to in point (a) has been notified to the Commission by the OCTs concerned.                  

The Commission, taking into account the risk of trade circumvention and specific sensitivities of materials to be used in                     cumulation, may establish additional conditions for granting the cumulation requested.                  

2.The request referred to in the first subparagraph of paragraph 1 of this Article shall be addressed to the Commission in writing.                        It shall indicate the third country or countries concerned, shall contain a list of the materials subject to cumulation and                        shall be supported by evidence that the conditions laid down in points (a) and (b) of paragraph 1 of this Article are met.                  

3.The origin of the materials used and the documentary proof of origin shall be determined in accordance with the rules laid                        down in the relevant free trade agreement. The origin of the products to be exported to the Union shall be determined in accordance                        with the rules of origin laid down in this Annex.                  

4.In order for the obtained product to acquire originating status, it shall not be necessary that the materials originating                        in the third country and used in the OCTs in the manufacture of the product to be exported to the Union have undergone sufficient                        working or processing, provided that the working or processing carried out in the OCTs concerned goes beyond the operations                        described in Article 5(1) of this Annex.                  

5.The Commission shall publish in the *Official Journal of the European Union* (C series) the date on which the extended cumulation takes effect, the Union’s free trade agreement partner involved in that                        cumulation, the applicable conditions and the list of materials in relation to which the cumulation applies.                  

6.The Commission shall adopt a measure granting the cumulation referred to in paragraph 1 of this Article by means of implementing                        acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 64(2) of                        this Annex.                  

#### Article 11U.K.Unit of qualification

1.The unit of qualification for the application of the provisions of this Annex shall be the particular product which is considered                        as the basic unit when determining classification using the Harmonised System.                  

2.When a consignment consists of a number of identical products classified under the same heading of the Harmonised System,                        each individual item shall be taken into account when applying the provisions of this Annex.                  

3.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 12U.K.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 ex-works price thereof, shall be regarded as one with the piece of equipment, machine,                     apparatus or vehicle in question.                  

#### Article 13U.K.Sets

Sets, as defined in General Interpretative Rule 3 of the Harmonised System, shall be regarded as originating when all the                     component products are originating products.                  

When a set is composed of originating and non-originating products, the set as a whole shall however be regarded as originating,                     provided that the value of the non-originating products does not exceed 15 % of the ex-works price of the set.                  

#### Article 14U.K.Neutral elements

In order to determine whether a product is an originating product, no account shall be taken of the origin of the following                     which might be used in its manufacture:                  

energy and fuel;

plant and equipment;

machines and tools;

any other goods which do not enter, and which are not intended to enter, into the final composition of the product.

#### Article 15U.K.Accounting segregation

1.If originating and non-originating fungible materials are used in the working or processing of a product, the customs authorities                        of the Member States may, at the written request of economic operators, authorise the management of materials in the Union                        using the accounting segregation method for the purpose of subsequent export to an OCTs within the framework of bilateral                        cumulation, without keeping the materials on separate stocks.                  

2.The customs authorities of the Member States may make the granting of authorisation referred to in paragraph 1 subject to                        any conditions they deem appropriate.                  

The authorisation shall be granted only if by use of the method referred to in paragraph 3 it can be ensured that, at any                     time, the number of products obtained which could be considered as ‘originating in the Union’ is the same as the number that                     would have been obtained by using a method of physical segregation of the stocks.                  

If authorised, the method shall be applied and the application thereof shall be recorded on the basis of the general accounting                     principles applicable in the Union.                  

3.The beneficiary of the method referred to in paragraph 2 shall make out or, until the application of the registered exporter                        system, apply for proofs of origin for the quantity of products which may be considered as originating in the Union. At the                        request of the customs authorities of the Member States, the beneficiary shall provide a statement of how the quantities have                        been managed.                  

4.The customs authorities of the Member States shall monitor the use made of the authorisation referred to in paragraph 1.                  

They may withdraw the authorisation in the following cases:

(a)the beneficiary makes improper use of the authorisation in any manner whatsoever, or                  

(b)the beneficiary fails to fulfil any of the other conditions laid down in this Annex.                  

#### Article 16U.K.Derogations

1.Upon the Commission’s initiative or in response to a request from a Member State or an OCTs, an OCTs may be granted a temporary                        derogation from the provisions of this Annex in any of the following cases:                  

(a)internal or external factors temporarily deprive it of the ability to comply with the rules for the acquisition of origin                        provided for in Article 2 of this Annex, where it could have done so previously;                  

(b)it requires time to prepare itself to comply with the rules for the acquisition of origin provided for in Article 2;                  

(c)the development of existing industries or the creation of new industries justifies it.                  

2.The request referred to in paragraph 1 shall be addressed to the Commission in writing, by means of the form set out in Appendix                        X. It shall state the reasons for the request and shall contain appropriate supporting documents.                  

3.The examination of requests shall in particular take into account:                  

(a)the level of development or the geographical situation of the OCTs concerned, having particular regard to the economic and                        social impact of the decision to be taken especially in respect of employment;                  

(b)cases where the application of the existing rules of origin would significantly affect the ability of an existing industry                        in the OCTs concerned to continue its exports to the Union, with particular reference to cases where this could lead to cessation                        of its activities;                  

(c)specific cases where it can be clearly demonstrated that significant investment in an industry could be deterred by the rules                        of origin and where a derogation favouring the realisation of the investment programme would enable these rules to be satisfied                        in stages.                  

4.The Commission shall respond positively to all the requests which are duly justified in conformity with this Article and which                        cannot cause serious injury to an established Union industry.                  

5.The Commission shall take steps necessary to ensure that a decision is reached as quickly as possible and shall adopt its                        position 95 working days from the date of receipt of a complete application.                  

6.The temporary derogation shall be limited to the duration of the effects of the internal or external factors giving rise to                        it or to the length of time needed for the OCTs to achieve compliance with the rules or to fulfil the targets which have been                        set by the derogation, taking into account the particular situation of the OCTs concerned and its difficulties.                  

7.When a derogation is granted, it is subject to compliance with any requirements laid down as to information to be provided                        to the Commission concerning the use of the derogation and the management of the quantities for which the derogation was granted.                  

8.The Commission shall adopt a measure granting a temporary derogation referred to in paragraph 1 of this Article by means of                        implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article                        64(2) of this Annex.                  

### TITLE IIIU.K.**TERRITORIAL REQUIREMENTS**

#### Article 17U.K.Principle of territoriality

1.Except as provided for in Articles 7 to 10 of this Annex, the conditions set out in this Annex for acquiring originating status                        shall be fulfilled without interruption in the OCTs.                  

2.If originating products exported from the OCTs to another country are returned, they shall be considered as non-originating                        unless it can be demonstrated to the satisfaction of the competent authorities that:                  

(a)the products returned are the same as those which were exported; and                  

(b)they have not undergone any operations beyond those necessary to preserve them in good condition, while in that country or                        while being exported.                  

#### Article 18U.K.Non-manipulation clause

1.The products declared for release for free circulation in the Union shall be the same products as exported from the OCTs in                        which they are considered to originate. They shall not have been altered, transformed in any way or subjected to operations                        other than operations to preserve them in good condition, prior to being declared for release for free circulation. Storage                        of products or consignments and splitting of consignments may take place when carried out under the responsibility of the                        exporter or of a subsequent holder of the goods and the products remain under customs supervision in the country or countries                        of transit.                  

2.Compliance with paragraph 1 shall be considered as satisfied unless the customs authorities have reason to believe the contrary.                        In such cases, the customs authorities may request the declarant to provide evidence of compliance, which may be given by                        any means, including contractual transport documents such as bills of lading or factual or concrete evidence based on marking                        or numbering of packages or any evidence related to the goods themselves.                  

3.Paragraphs 1 and 2 of this Article shall apply *mutatis mutandis* when cumulation under Articles 7 to 10 of this Annex applies.                  

#### Article 19U.K.Exhibitions

1.Originating products, sent from an OCTs for exhibition in a country other than an OCTs, an EPA country or a Member State,                        and sold after the exhibition for importation in the Union shall benefit on importation from the provisions of the Decision,                        provided it is shown to the satisfaction of the customs authorities that:                  

(a)an exporter has consigned these products from an OCTs 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 Union;                  

(c)the products have been consigned during the exhibition or immediately thereafter in the state in which they were sent for                        exhibition;                  

(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 Title IV of this Annex and submitted to the customs authorities                        of the importing country in accordance with the procedures applicable in that country. 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 IVU.K.**PROOFS OF ORIGIN**

#### *Section 1*U.K.***General Requirements***

##### Article 20U.K.Amounts expressed in euro

1.For the application of Articles 26, 31, 43 and 44 of this Annex in cases where products are invoiced in a currency other than                        euro, amounts in the national currencies of the Member States equivalent to the amounts expressed in euro shall be fixed annually                        by each of the countries concerned.                  

2.A consignment shall benefit from Articles 26, 31, 43 and 44 by reference to the currency in which the invoice is drawn up.                  

3.The amounts to be used in any given national currency shall be the equivalent in that currency of the amounts expressed in                        euro as at the first working day of October of each year. The amounts shall be communicated to the Commission by 15 October                        and shall apply from 1 January the following year. The Commission shall notify all countries concerned of the relevant amounts.                  

4.A Member State may round up or down the amount resulting from the conversion into its national currency of an amount expressed                        in euro. The rounded-off amount may not differ from the amount resulting from the conversion by more than 5 per cent. A Member                        State may retain unchanged its national currency equivalent of an amount expressed in euro if, at the time of the annual adjustment                        provided for in paragraph 3, the conversion of that amount, prior to any rounding-off, results in an increase of less than                        15 per cent in the national currency equivalent. The national currency equivalent may be retained unchanged if the conversion                        would result in a decrease in that equivalent value.                  

5.The amounts expressed in euro and their equivalents in national currencies of some Member States shall be reviewed by the                        Commission on its own initiative or at the request of a Member State or an OCTs. When carrying out this review, the Commission                        shall 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.                  

#### *Section 2*U.K.***Procedures before the application of the registered exporters system***

##### Article 21U.K.Proof of origin

Products originating in the OCTs shall, on importation into the Union benefit from this Decision upon submission of either:

a movement certificate EUR.1, a specimen of which appears in Appendix III; or

in the cases specified in Article 26, a declaration, the text of which appears in Appendix VI, 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 (the ‘origin declaration’).                           

##### Article 22U.K.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 OCTs 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 Appendix III and IV. These forms shall be completed in accordance with this                        Annex. 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 OCTs 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 Annex.                  

4.A movement certificate EUR.1 shall be issued by the customs authorities of the exporting OCTs if the products concerned can                        be considered as products originating in an OCTs, in the Union or in an EPA country and fulfil the other requirements of this                        Annex.                  

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 Annex. 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 23U.K.Movement certificate EUR.1 issued retrospectively

1.Notwithstanding Article 22, a movement certificate EUR.1 may 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;                  

(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;                  

(c)a movement certificate EUR.1 was issued at the time of exportation for a consignment which was subsequently split in a third                        country of storage, in accordance with Article 18 of this Annex, provided that the initial EUR.1 certificate is returned to                        the customs authorities who issued it; or                  

(d)it was not issued at the time of exportation because the final destination of the consignment was not known at the time, and                        the destination was determined during its storage and after possible splitting of the consignment in a third country in accordance                        with Article 18 of this Annex.                  

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 the following phrases in the ‘Remarks’ box (Box 7)                        of the movement certificate EUR.1.                  

‘ISSUED RETROSPECTIVELY’                  

5.The endorsement referred to in paragraph 4 shall be inserted in the ‘Remarks’ box of the movement certificate EUR.1.                  

##### Article 24U.K.Issue of 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 movement certificate EUR.1 shall be endorsed in the ‘Remarks’ box (Box 7) with the following word:                  

‘DUPLICATE’.

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 25U.K.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 Union or in an OCTs, 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 Union or an OCTs. The replacement movement certificate(s) EUR.1 shall be issued by                     the customs office under whose control the products are placed.                  

##### Article 26U.K.Conditions for making out an origin declaration

1.An origin declaration as referred to in Article 21 (b) of this Annex may be made out:                  

(a)by an approved exporter as referred to in Article 27 of this Annex; or                  

(b)by any exporter for any consignment consisting of one or more packages containing originating products the total value of                        which does not exceed EUR 10 000.                  

2.An origin declaration may be made out if the products concerned can be considered as products originating in an OCTs, in an                        EPA country or in the Union and fulfil the other requirements of this Annex.                  

3.The exporter making out an origin declaration shall be prepared to submit at any time, at the request of the customs authorities                        of the exporting country or territory, all appropriate documents proving the originating status of the products concerned                        as well as the fulfilment of the other requirements of this Annex.                  

4.An origin 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 Appendix VI, 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 or territory. If                        the declaration is hand-written, it shall be written in ink in printed characters.                  

5.Origin declarations shall bear the original signature of the exporter in manuscript. However, an approved exporter within                        the meaning of Article 27 of this Annex 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 origin declaration                        which identifies him as if it had been signed in manuscript by him.                  

6.An origin 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 27U.K.Approved exporter

1.The customs authorities of the exporting country may authorise any exporter to make out origin declarations irrespective of                        the value of the products concerned. An exporter seeking such authorisation shall 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 Annex.                  

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 origin                        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 28U.K.Validity of proof of origin

1.A proof of origin shall be valid for 10 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 29U.K.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 Decision.                  

##### Article 30U.K.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 tariff headings 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 31U.K.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 Annex 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 500 EUR in the case of small packages or 1 200 EUR in the                        case of products forming part of travellers’ personal luggage.                  

##### Article 32U.K.Information procedure for cumulation purposes

1.For the purpose of Article 2(2) and Article 7(1) of this Annex, the evidence of originating status within the meaning of this                        Annex of the materials coming from another OCTs or from the Union shall be given by means of a movement certificate EUR.1                        or an origin declaration, or by means of a supplier’s declaration, provided by the exporter in the country from which the                        materials came. A specimen of a supplier’s declaration appears in Appendix VII. In cases where the supplying OCTs has implemented                        the Registered Exporter System but the OCTs of further processing has not, the evidence of originating status may also be                        provided by means of a statement on origin.                  

2.For the purpose of Article 2(2) and Article 7(2) of this Annex, the evidence of working or processing carried out in another                        OCTs or in the Union shall be given by means of a supplier’s declaration, provided by the exporter in the country from which                        the materials came. A specimen of the supplier’s declaration appears in Appendix VIII.                  

3.For the purpose of paragraphs 1 and 2, a separate supplier’s declaration shall be given by the supplier for each consignment                        of materials on the commercial invoice related to that shipment or in an annex to that invoice, or on a delivery note or other                        commercial document related to that shipment which describes the materials concerned in sufficient detail to enable them to                        be identified.                  

The supplier’s declaration may be made out on a pre-printed form.

The suppliers’ declarations shall be signed in manuscript. However, where the invoice and the supplier’s declaration are established                     using electronic data-processing methods, the supplier’s declaration need not be signed in manuscript, provided that the responsible                     officer in the supplying company is identified to the satisfaction of the customs authorities in the country or territory                     where the suppliers’ declarations were established. The said customs authorities may lay down conditions for the implementation                     of this paragraph.                  

The supplier’s declarations are submitted to the competent customs office in the exporting OCTs requested to issue the movement                     certificate EUR.1.                  

4.When Articles 8 and 10 are applied, the evidence of originating status in accordance with the provisions of the relevant free                        trade agreement between the Union and the country concerned shall be given by the proofs of origin established by the relevant                        free trade agreement.                  

5.When Article 9 is applied, the evidence of originating status in accordance with the provisions laid down in Commission Regulation                        (EEC) No 2454/93(16) shall be given by the proofs of origin established by the same Regulation.                  

6.In the cases referred to in paragraphs 1, 2, 4 and 5, Box 7 of movement certificate EUR.1 or the origin declaration or the                        statement on origin shall, where appropriate, contain the indication ‘OCTs cumulation’, ‘EU cumulation’, ‘EPA cumulation’,                        ‘cumulation with GSP country’ or ‘extended cumulation with country x’ or ‘Cumul PTOM’, ‘Cumul UE’, ‘cumul avec pays APE’,                        ‘cumul avec pays SPG’ or ‘cumul étendu avec le pays x’.                  

##### Article 33U.K.Supporting documents

The documents referred to in Article 22(3) and Article 26(3), used for the purpose of proving that products covered by a movement                     certificate EUR.1 or an origin declaration can be considered as products originating in an OCTs or in the Union or in an EPA                     country, and fulfil the other requirements of this Annex, may consist, inter alia, of the following:                  

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;                           

documents proving the originating status of materials used, issued or made out in an OCTs, or in the Union or in an EPA State                              where these documents are used in accordance with domestic law;                           

documents proving the working or processing of materials in the OCTs, in the Union, or in an EPA country, issued or made out                              in an OCTs, in the Union or in an EPA country, where these documents are used in accordance with domestic law;                           

movement certificates EUR.1 or origin declarations proving the originating status of materials used, issued or made out in                              the OCTs, in the Union or in an EPA country and in accordance with this Annex.                           

##### Article 34U.K.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 22(3).                  

2.The exporter making out an origin declaration shall keep for at least three years a copy of this origin declaration as well                        as the documents referred to in Article 26(3).                  

3.The customs authorities of the exporting OCTs issuing a movement certificate EUR.1 shall keep for at least three years the                        application form referred to in Article 22(2).                  

4.The customs authorities of the importing country shall keep for at least three years the movement certificates EUR.1 and the                        origin declarations submitted to them.                  

##### Article 35U.K.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.                  

#### *Section 3*U.K.***Procedures for the registered exporter system***

##### *Sub-section 1*U.K.***Procedures at export in the oct***

###### Article 36U.K.General requirements

Benefits from this Decision shall apply in the following cases:

in cases of goods satisfying the requirements of this Annex exported by a registered exporter referred to in Article 38;

in cases of any consignment of one or more packages containing originating products exported by any exporter, where the total                              value of the originating products consigned does not exceed EUR 10 000.                           

###### Article 37U.K.Record of registered exporters

1.The competent authorities of the OCTs shall establish and keep up to date at all times an electronic record of registered                        exporters located in that country. The record shall be immediately updated where an exporter is withdrawn from the register                        in accordance with Article 41(2) of this Annex.                  

2.The record shall contain the following information:                  

(a)name and full address of the place where the registered exporter is established/resides, including the identifier of the country                        or territory (ISO alpha 2 country code);                  

(b)number of the registered exporter;                  

(c)products intended to be exported under this Decision (indicative list of Harmonised System chapters or headings as considered                        appropriate by the applicant);                  

(d)dates as from and until when the exporter is/was registered;                  

(e)the reason for withdrawal (registered exporter’s request/withdrawal by competent authorities). This data shall only be available                        to competent authorities.                  

3.The competent authorities of the OCTs shall notify the Commission of the national numbering system used for designating registered                        exporters. The number shall begin with an ISO alpha 2 country code.                  

###### Article 38U.K.Request for registration

To be registered, exporters shall lodge an application with the competent authorities of the OCTs referred to in Article 57(1)                     of this Annex, using the form a model of which is set out in Appendix XI. By the completion of the form, exporters give consent                     to the storage of the information provided in the database of the Commission and to the publication of non-confidential data                     on the internet.                  

The application shall be accepted by the competent authorities only if it is complete.

###### Article 39U.K.Withdrawal of the registration

1.Registered exporters who no longer meet the conditions for exporting any goods benefiting from this Decision, or no longer                        intend to export such goods, shall inform the competent authorities in the OCTs who shall immediately remove them from the                        record of registered exporters kept in that OCTs.                  

2.Without prejudice to the system of penalties and sanctions applicable in the OCTs, where registered exporters intentionally                        or negligently draw up, or cause to be drawn up, a statement on origin or any supporting document which contains incorrect                        information which leads to irregularly or fraudulently obtaining the benefit of preferential tariff treatment, the OCTs competent                        authorities shall withdraw the exporter from the record of registered exporters kept by the OCTs concerned.                  

3.Without prejudice to the possible impact of irregularities found on pending verifications, withdrawal from the record of registered                        exporters shall take effect for the future, namely in respect of statements made out after the date of withdrawal.                  

4.Exporters who have been removed from the record of registered exporters by the competent authorities in accordance with paragraph                        2 may only be re-introduced into the record of registered exporters once they have proved to the competent authorities in                        the OCTs that they have remedied the situation which led to their withdrawal.                  

###### Article 40U.K.Supporting documents

1.Exporters, registered or not, shall comply with the following obligations:                  

(a)they shall maintain appropriate commercial accounting records for production and supply of goods qualifying for preferential                        treatment;                  

(b)they shall keep available all evidence relating to the material used in the manufacture;                  

(c)they shall keep all customs documentation relating to the material used in the manufacture;                  

(d)they shall keep for at least three years from the end of the year in which the statement on origin was made out, or more if                        required by national law, records of:                  

the statements on origin they made out; and

their originating and non-originating materials, production and stock accounts.

2.The records referred to in point (d) of paragraph 1 may be electronic but shall allow the materials used in the manufacture                        of the exported products to be traced and their originating status to be confirmed.                  

3.The obligations provided for in paragraphs 1 and 2 shall also apply to suppliers who provide exporters with supplier’s declarations                        certifying the originating status of the goods they supply.                  

###### Article 41U.K.Proof of origin

1.A statement on origin shall be made out by the exporter when the products to which it relates are exported, if the goods concerned                        can be considered as originating in the OCTs.                  

2.By derogation from paragraph 1, a statement on origin may exceptionally be made out after exportation (retrospective statement)                        on condition that it is presented in the Member State of declaration for release for free circulation no longer than two years                        after the export. Where the splitting of a consignment takes place in accordance with Article 18 of this Annex, the statement                        on origin may also be made out retrospectively.                  

3.The statement on origin shall be provided by the exporter to his customer in the Union and shall contain the particulars specified                        in Appendix XII. A statement on origin shall be made out in either English or French.                  

It may be made out on any commercial document allowing to identify the exporter concerned and the goods involved.

4.When cumulation under Articles 2 and 7 of this Annex applies, the exporter of a product, in the manufacture of which materials                        originating in an OCTs or in the Union are used, shall rely on the statement on origin provided by its supplier. In cases                        where the supplier is established in an OCTs that has not yet implemented the Registered Exporter System, the exporter in                        the OCTs of further processing may also rely on a movement certificate EUR.1, an origin declaration or a supplier’s declaration.                  

5.In these cases, the statement on origin made out by the exporter shall, as the case may be, contain the indication ‘EU cumulation’,                        ‘OCTs cumulation’ or ‘Cumul UE’, ‘cumul PTOM’.                  

6.When Articles 8 and 10 of this Annex are applied, the evidence of originating status, in accordance with the provisions of                        the relevant free trade agreement between the Union and the country concerned, shall be satisfied on the basis of the proofs                        of origin established by the relevant free trade agreement.                  

In this case, the statement on origin made out by the exporter shall contain the indication ‘cumulation with EPA country’                     or ‘extended cumulation with country x’ or ‘cumul avec pays APE’ or ‘cumul étendu avec le pays x’.                  

7.When cumulation of Article 9 of this Annex applies, the evidence of originating status established in accordance with the                        provisions laid down in Regulation (EEC) No 2454/93, shall be given by the proofs of origin established by the same Regulation.                  

In this case, the statement on origin made out by the exporter shall contain the indication ‘cumulation with GSP country’                     or ‘cumul avec pays SPG’.                  

###### Article 42U.K.Submission of a proof of origin

1.A statement on origin shall be made out for each consignment.                  

2.A statement on origin shall be valid for 12 months from the date of its making out by the exporter.                  

3.A single statement on origin may cover several consignments if the goods meet the following conditions:                  

(a)they are dismantled or non-assembled products within the meaning of general rule 2(a) of the Harmonised System;                  

(b)they fall within Section XVI or XVII or heading 7308 or 9406 of the Harmonised System; and                  

(c)they are intended to be imported by instalments.                  

##### *Sub-section 2*U.K.***Procedures at release for free circulation in the union***

###### Article 43U.K.Submission of proof of origin

1.The customs declaration for release for free circulation shall make reference to the statement on origin. The statement on                        origin shall be kept at the disposal of the customs authorities, which may request its submission for the verification of                        the declaration. Those authorities may also require a translation of the statement into the official language, or one of the                        official languages, of the Member State concerned.                  

2.Where the application of the benefits from this Decision is requested by the declarant, without a statement on origin being                        in his possession at the time of the acceptance of the customs declaration for release for free circulation, that declaration                        shall be considered as being incomplete within the meaning of Article 253(1) of Regulation (EEC) No 2454/93 and treated accordingly.                  

3.Before declaring goods for release for free circulation, the declarant shall take due care that the goods comply with the                        rules in this Annex by, in particular, checking:                  

(a)in the database referred to in Article 58 of this Annex that the exporter is registered to make statements on origin, except                        where the total value of the originating products consigned does not exceed EUR 10 000; and                  

(b)that the statement on origin is made out in accordance with Appendix XII.                  

###### Article 44U.K.Exemption from proof of origin

1.The following products shall be exempted from the obligation to make out and produce a statement on origin:                  

(a)products sent as small packages from private persons to private persons, the total value of which does not exceed EUR 500;                  

(b)products forming part of travellers’ personal luggage, the total value of which does not exceed EUR 1 200.                  

2.The products referred to in paragraph 1 shall meet the following conditions:                  

(a)they are not imported by way of trade;                  

(b)they have been declared as meeting the conditions for benefiting from this Decision;                  

(c)there is no doubt as to the veracity of the declaration referred to in point (b).                  

3.For the purposes of point (a) of paragraph 2, imports shall not be considered as imports by way of trade if all the following                        conditions are met:                  

(a)the imports are occasional;                  

(b)the imports consist solely of products for the personal use of the recipients or travellers or their families;                  

(c)it is evident from the nature and quantity of the products that no commercial purpose is in view.                  

###### Article 45U.K.Discrepancies and formal errors

1.The discovery of slight discrepancies between the particulars included in a statement on origin and those mentioned in the                        documents submitted to the customs authorities for the purpose of carrying out the formalities for importing the products                        shall not *ipso facto* render the statement on origin null and void if it is duly established that that document does correspond to the products                        concerned.                  

2.Obvious formal errors such as typing errors on a statement on origin shall 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 that document.                  

###### Article 46U.K.Validity of proof of origin

Statements on origin which are submitted to the customs authorities of the importing country after the period of validity                     mentioned in Article 41(2) of this Annex may be accepted for the purpose of applying the tariff preferences, where failure                     to submit these documents by the final date set is due to exceptional circumstances. In other cases of belated presentation,                     the customs authorities of the importing country may accept the statements on origin where the products have been presented                     to customs before the said final date.                  

###### Article 47U.K.Procedure for importation by instalments

1.The procedure referred to in Article 42(3) of this Annex shall apply for a period determined by the customs authorities of                        the Member States.                  

2.The customs authorities of the Member States of importation supervising the successive releases for free circulation shall                        verify that the successive consignments are part of the dismantled or non-assembled products for which the statement on origin                        has been made out.                  

###### Article 48U.K.Replacement of a statement of origin

1.Where products have not yet been released for free circulation, a statement on origin may be replaced by one or more replacement                        statements on origin, made out by the holder of the goods, for the purpose of sending all or some of the products elsewhere                        within the customs territory of the Union. For the purpose of being entitled to make out replacement statements on origin,                        holders of the goods need not be registered exporters themselves.                  

2.Where a statement on origin is replaced, the original statement on origin shall indicate the following:                  

(a)the particulars of the replacement statement(s) on origin;                  

(b)the names and addresses of the consignor;                  

(c)the consignee(s) in the Union.                  

The original statement on origin shall be marked as ‘Replaced’ or ‘Remplacée’, as the case may be.

3.On the replacement statement on origin the following shall be indicated:                  

(a)all particulars of the re-consigned products;                  

(b)the date on which the original statement on origin was made out;                  

(c)all the necessary details to be mentioned, as specified under Appendix XII;                  

(d)the name and address of the consignor of the products in the Union;                  

(e)the name and address of the consignee in the Union;                  

(f)the date and place of the replacement.                  

The person making out the replacement statement on origin may attach a copy of the initial statement on origin to the replacement                     statement on origin.                  

4.Paragraphs 1, 2 and 3 shall apply *mutatis mutandis* to statements replacing statements on origin that are themselves replacement statements on origin.                  

5.Paragraphs 1, 2 and 3 shall apply *mutatis mutandis* to statements replacing statements on origin further to the splitting of a consignment carried out in accordance with Article                        18 of this Annex.                  

###### Article 49U.K.Verification of statements of origin

1.The customs authorities may, where they have doubts with regard to the originating status of the products request the declarant                        to produce, within a reasonable time period which they shall specify, any available evidence for the purpose of verifying                        the accuracy of the indication on origin of the declaration or the compliance with the conditions provided for in Article                        18 of this Annex.                  

2.The customs authorities may suspend the application of the preferential tariff measure for the duration of the verification                        procedure laid down in Article 64 of this Annex where:                  

(a)the information provided by the declarant is not sufficient to confirm the originating status of the products or the compliance                        with the conditions laid down in Article 17(2) or Article 18 of this Annex;                  

(b)the declarant does not reply within the time period allowed for provision of the information referred to in paragraph 1.                  

3.While awaiting either the information requested from the declarant referred to in paragraph 1, or the results of the verification                        procedure referred to in paragraph 2, release of the products shall be offered to the importer subject to any precautionary                        measures deemed necessary.                  

###### Article 50U.K.Denial of preferences

1.The customs authorities of the Member State of importation shall refuse entitlement to the benefits of this Decision, without                        being obliged to request any additional evidence or send a request for verification to the OCTs where:                  

(a)the goods are not the same as those mentioned in the statement on origin;                  

(b)the declarant fails to submit a statement on origin for the products concerned, where such a statement is required;                  

(c)without prejudice to point (b) of Article 36 and to Article 44(1) of this Annex, the statement on origin in possession of                        the declarant has not been made out by an exporter registered in the OCTs;                  

(d)the statement on origin is not made out in accordance with Appendix XII;                  

(e)the conditions of Article 18 of this Annex are not met.                  

2.The customs authorities of the Member State of importation shall refuse entitlement to the benefits of this Decision, following                        a request for verification within the meaning of Article 60 of this Annex addressed to the competent authorities of the OCTs,                        where the customs authorities of the Member State of importation:                  

(a)have received a reply according to which the exporter was not entitled to make out the statement on origin;                  

(b)have received a reply according to which the products concerned are not originating in the OCTs concerned or the conditions                        of Article 17(2) of this Annex were not met;                  

(c)had reasonable doubt as to the validity of the statement on origin or the accuracy of the information provided by the declarant                        regarding the true origin of the products in question when they made the request for verification; and                  

have received no reply within the time period permitted in accordance with Article 60 of this Annex; or

have received a reply not providing adequate answers to the questions raised in the request.

### TITLE VU.K.**ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION**

#### *Section 1*U.K.***General***

##### Article 51U.K.General Principles

1.In order to ensure the proper application of the preferences, OCTs shall:                  

(a)put in place and to maintain the necessary administrative structures and systems required for the implementation and management                        in that country of the rules and procedures laid down in this Annex, including where appropriate the arrangements necessary                        for the application of cumulation;                  

(b)cooperate, through their competent authorities with the Commission and the customs authorities of the Member States.                  

2.The cooperation referred to in point (b) of paragraph 1 shall consist of:                  

(a)providing all necessary support in the event of a request by the Commission for the monitoring by it of the proper implementation                        of this Annex in the country concerned, including verification visits on the spot by the Commission or the customs authorities                        of the Member States;                  

(b)without prejudice to Articles 49, 50, 55 and 56 of this Annex, verifying the originating status of products and the compliance                        with the other conditions laid down in this Annex, including verification visits on the spot, where requested by the Commission                        or the customs authorities of the Member States in the context of origin investigations;                  

(c)where the verification procedure or any other available information appears to indicate that the provisions of this Annex                        are being contravened, the OCTs on its own initiative or at the request of the Commission or the customs authorities of the                        Member States shall carry out appropriate enquiries or arrange for such enquiries to be carried out with due urgency to identify                        and prevent such contraventions. The Commission and the customs authorities of the Member States may participate in the enquiries.                  

3.OCTs shall submit to the Commission, before 1 January 2015, a formal undertaking to comply with the requirements of paragraph                        1.                  

##### Article 52U.K.Publication requirements and compliance

1.The Commission shall publish in the *Official Journal of the European Union* (C Series) the list of OCTs and the date on which they are considered to meet the conditions referred to in Articles 51 and                        54, or in Article 57 of this Annex. The Commission shall update this list when a new OCTs fulfils the same conditions.                  

2.Products originating within the meaning of this Annex in an OCTs shall benefit, on release for free circulation in the Union,                        from the tariff preferences only on condition that they were exported on or after the date specified in the list referred                        to in paragraph 1.                  

3.An OCTs shall be considered to comply with Articles 51 and 54, or Article 57 of this Annex on the date on which it has:                  

(a)made the notification referred to in Article 54(1) or 57(1) of this Annex and, when relevant, Article 54(2) of this Annex                        and,                  

(b)submitted the undertaking referred to in Article 51(3) of this Annex.                  

4.For the implementation of Section 3 of Title IV and Section 3 of Title V of this Annex, OCTs shall submit the information                        referred to in Article 57(1)(b) of this Annex to the Commission at least three months before the actual application in their                        territories of the registered exporter system.                  

##### Article 53U.K.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.                  

#### *Section 2*U.K.***Methods of administrative cooperation before the application of the registered exporter system***

##### Article 54U.K.Communication of stamps and addresses

1.The OCTs shall notify to the Commission the names and addresses of the authorities situated in their territory which are:                  

(a)part of the governmental authorities of the country concerned and empowered to support the Commission and the customs authorities                        of the Member States through the administrative cooperation as provided for in this Title;                  

(b)customs authorities competent to issue movement certificates EUR.1 and carry out the subsequent verification of movement certificates                        EUR.1 and origin declarations;                  

2.OCTs shall send to the Commission specimens of the stamps used.                  

3.The OCTs shall inform the Commission immediately of any changes to the information notified under paragraphs 1 and 2.                  

4.The Commission shall send this information to the customs authorities of the Member States.                  

##### Article 55U.K.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 Annex.                  

2.For the purposes of implementing 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 origin declaration, or a copy of these documents, to the customs authorities                        of the exporting country or territory 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 or territory. 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 deemed 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 an OCTs, in the Union or in an EPA country and fulfil the other requirements of this Annex.                  

6.If in cases of reasonable doubt there is no reply within 10 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 56U.K.Verification of suppliers’ declarations

1.Verification of suppliers’ declaration may be carried out at random or whenever the customs authorities of the importing country                        or territory have reasonable doubts as to the authenticity of the document or the accuracy or completeness of the information                        concerning the true origin of the materials in question.                  

2.The customs authorities to which a supplier’s declaration is submitted may request the customs authorities of the country                        or territory where the declaration was made to issue an information certificate, a specimen of which appears in Appendix IX.                        Alternatively, the customs authorities to which a supplier’s declaration is submitted may request the exporter to produce                        an information certificate issued by the customs authorities of the country or territory where the declaration was made.                  

A copy of the information certificate shall be preserved by the office which has issued it for at least three years.

3.The requesting customs authorities shall be informed of the results of the verification as soon as possible. The results must                        be such as to indicate positively whether the declaration concerning the status of the materials is correct.                  

4.For the purpose of verification, suppliers shall keep for not less than three years a copy of the document containing the                        declaration together with all necessary evidence showing the true status of the materials.                  

5.The customs authorities in the country or territory where the supplier’s declaration is established shall have the right to                        call for any evidence or to carry out any check which they consider appropriate in order to verify the correctness of any                        supplier’s declaration.                  

6.Any movement certificate EUR.1 issued or made out on the basis of an incorrect supplier’s declaration shall be considered                        null and void.                  

#### *Section 3*U.K.***Methods of administrative cooperation applicable for the registered exporter system***

##### Article 57U.K.Communication of stamps and addresses

1.The OCTs shall notify to the Commission the names and addresses of the authorities situated in their territory which are:                  

(a)part of the governmental authorities of the country concerned and empowered to support the Commission and the customs authorities                        of the Member States through the administrative cooperation as provided for in this Title;                  

(b)part of the governmental authorities of the country concerned, or act under the authority of the government, and empowered                        to register exporters and to withdraw them from the record of registered exporters.                  

2.The OCTs shall inform the Commission immediately of any changes to the information notified under paragraphs 1 and 2.                  

3.The Commission shall send this information to the customs authorities of the Member States.                  

##### Article 58U.K.Establishment of a database of registered exporters

1.The Commission shall establish an electronic database of registered exporters on the basis of the information supplied by                        the governmental authorities of OCTs and the customs authorities of Member States.                  

2.Only the Commission shall have an access to the database and the data contained therein. The authorities referred to in paragraph                        1 shall ensure that data communicated to the Commission are kept up to date, and are complete and accurate.                  

3.The data processed in the database referred to in paragraph 1 of this Article shall be disclosed to the public via the internet,                        with the exception of the confidential information contained in boxes 2 and 3 of the application to become a registered exporter                        referred to in Article 28 of this Annex.                  

4.Personal data processed in the database referred to in paragraph 1 shall be transferred or made available to third countries                        or international organisations only in accordance with Article 9 of Regulation (EC) No 45/2001 of the European Parliament                        and of the Council(17).                  

5.This Decision shall in no way affect the level of protection of individuals with regard to the processing of personal data                        under the provisions of Union and national law, and in particular does not alter either the obligations of Member States relating                        to their processing of personal data under Directive 95/46/EC of the European Parliament and of the Council(18) or the obligations of the Union institutions and bodies relating to their processing of personal data under Regulation (EC)                        No 45/2001 when fulfilling their responsibilities.                  

6.Identification and registration data of exporters, constituted by the set of data listed in points 1, 3 (relating to description                        of activities), 4 and 5 of Appendix XI shall be published by the Commission on the internet only if the exporters concerned                        have freely given prior specific and informed written consent.                  

7.Exporters shall be provided with the information laid down in Article 11 of Regulation (EC) No 45/2001.                  

8.The rights of persons with regard to their registration data listed in Appendix XI and processed in national systems shall                        be exercised in accordance with the law of the Member State which stored their personal data implementing Directive 95/46/EC.                  

9.The rights of persons with regard to the processing of personal data in the central database referred to in paragraphs 1 to                        4 shall be exercised in accordance with Regulation (EC) No 45/2001.                  

10.The national supervisory data protection authorities and the European Data Protection Supervisor, each acting within the scope                        of their respective competences, shall cooperate actively and ensure coordinated supervision of the database referred to in                        paragraphs 1 to 4.                  

##### Article 59U.K.Control of origin

1.For the purpose of ensuring compliance with the rules concerning the originating status of products, the competent authorities                        of the OCTs shall carry out:                  

(a)verifications of the originating status of products at the request of the customs authorities of the Member States;                  

(b)regular controls on exporters on their own initiative.                  

Extended cumulation shall only be permitted under Article 10 of this Annex, if a country with which the Union has a free trade                     agreement in force has agreed to provide the OCTs with its support in matters of administrative cooperation in the same way                     as it would provide such support to the customs authorities of the Member States in accordance with the relevant provisions                     of the free trade agreement concerned.                  

2.The controls referred to in point (b) of paragraph 1 shall ensure the continued compliance of exporters with their obligations.                        They shall be carried out at intervals determined on the basis of appropriate risk analysis criteria. For that purpose, the                        competent authorities of the OCTs shall require exporters to provide copies or a list of the statements on origin they have                        made out.                  

3.The competent authorities of the OCTs shall have the right to call for any evidence and to carry out any inspection of the                        exporter’s accounts and, where appropriate, those of producers supplying the exporter, including at the premises, or any other                        check considered appropriate.                  

##### Article 60U.K.Verifications of proof of origin

1.Subsequent verifications of statements on origin shall be carried out at random or whenever the customs authorities of the                        Member States have reasonable doubts as to their authenticity, the originating status of the products concerned or the fulfilment                        of other requirements of this Annex.                  

Where the customs authorities of a Member State request the cooperation of the competent authorities of an OCTs to carry out                     a verification of the validity of statements on origin, the originating status of products, or of both, it shall, where appropriate,                     indicate on its request the reasons why it has reasonable doubts on the validity of the statement on origin or the originating                     status of the products.                  

A copy of the statement on origin and any additional information or documents suggesting that the information given on that                     statement is incorrect may be forwarded in support of the request for verification.                  

The requesting Member State shall set a six-month initial deadline to communicate the results of the verification, starting                     from the date of the verification request.                  

2.If in cases of reasonable doubt there is no reply within the period specified in paragraph 1, or if the reply does not contain                        sufficient information to determine the real origin of the products, a second communication shall be sent to the competent                        authorities. This communication shall set a further deadline of not more than six months.                  

##### Article 61U.K.Other provisions

1.Section III of this Title and Section III of Title VI shall apply *mutatis mutandis* to:                  

(a)exports from the Union to an OCTs for the purpose of bilateral cumulation;                  

(b)exports from one OCTs to another for the purpose of OCTs cumulation as provided for in Article 2(2) of this Annex.                  

2.Union exporters shall be considered by the customs authority of a Member State at their request as registered exporters for                        the purposes of the benefits from this Decision where they fulfil the following conditions:                  

(a)they have an EORI number in accordance with Articles 4k to 4t of Regulation (EEC) No 2454/93;                  

(b)they have the status of ‘approved exporter’ under a preferential arrangement;                  

(c)they provide in their request addressed to the customs authority of the Member State the following data set out in the form                        a model of which appears in Appendix XI:                  

the details set out in boxes 1 and 4;

the undertaking set out in box 5.

### TITLE VIU.K.**CEUTA AND MELILLA**

### Article 62U.K.

1.The provisions of this Annex concerning the issue, use and subsequent verification of proofs of origin shall apply *mutatis mutandis* to products exported from an OCTs to Ceuta and Melilla and to products exported from Ceuta and Melilla to an OCTs for the                        purposes of bilateral cumulation.                  

2.Ceuta and Melilla shall be considered as a single territory.                  

3.The Spanish customs authorities shall be responsible for the application of this Annex in Ceuta and Melilla.                  

### TITLE VIIU.K.**FINAL PROVISIONS**

#### Article 63U.K.Derogation to the registered exporter system

1.By way of derogation from the registered exporter system, the Commission may adopt decisions allowing to apply Articles 21                        to 35 and Articles 54, 55 and 56 of this Annex on exports from one or several OCTs after 1 January 2017.                  

The derogation shall be limited to the duration necessary for the OCTs concerned to be in a position to apply Articles 38                     to 50 and Articles 57 to 61 of this Annex.                  

2.The OCTs wishing to take advantage of the derogation provided for in paragraph 1 shall address a request to the Commission.                        The request shall indicate the time needed until the OCTs concerned is considered to be in a position to apply Articles 38                        to 50 and Articles 57 to 61 of this Annex.                  

3.The Commission shall adopt a measure granting a temporary derogation referred to in paragraph 1 by means of implementing acts.                        Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 64(2).                  

#### Article 64U.K.Committee procedures

1.The Commission shall be assisted by the Customs Code Committee established by Article 247a of Regulation (EEC) No 2913/92.                  

2.Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 of the European Parliament and of the                        Council(19) shall apply.                  

#### Article 65U.K.Application

1.This Annex shall apply from 1 January 2014.                  

2.Point (b) of Article 52(3) of this Annex shall apply from 1 January 2015.                  

3.Point (b) of Article 8(3) of this Annex shall apply until 30 September 2015.                  

4.Articles 21 to 35 and Articles 54, 55 and 56 of this Annex shall apply until 31 December 2016.                  

5.Articles 38 to 50 and Articles 57 to 61 of this Annex shall apply from 1 January 2017.                  

### Appendix I**Introductory notes**

#### Note 1 —General introductionU.K.

This Annex lays down the conditions pursuant to Article 4 of this Annex under which products shall be considered to originate                     in the OCTs concerned. There are four different types of rules, which vary according to the product:                  

through working or processing a maximum content of non-originating materials is not exceeded;

through working or processing the 4-digit Harmonised System heading or 6-digit Harmonised System sub-heading of the manufactured                              products becomes different from the 4-digit Harmonised System heading or 6-digit sub-heading respectively of the materials                              used;                           

a specific working and processing operation is carried out;

working or processing is carried out on certain wholly obtained materials.

##### Note 2 —The structure of the listU.K.

##### 2.1.Columns 1 and 2 describe the product obtained. Column 1 gives the chapter number, 4-digit heading or 6-digit sub-heading number                        used in the Harmonised System, as appropriate. Column 2 gives the description of goods used in that system for that heading                        or chapter. For each entry in columns 1 and 2, subject to Note 2.4, one or more rules (‘qualifying operations’) are set out                        in column 3. These qualifying operations concern only non-originating materials. Where, in some cases, the entry in column                        1 is preceded by ‘ex’, this signifies that the rule in column 3 applies only to the part of that heading as described in column                        2.U.K.

##### 2.2.Where several Harmonised System headings or sub-headings 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 rule in column 3 applies to all                        products which, under the Harmonised System, are classified in headings of the chapter or in any of the headings or sub-headings                        grouped together in column 1.U.K.

##### 2.3.Where there are different rules in the list applying to different products within a heading, each indent contains the description                        of that part of the heading covered by the adjacent rule in column 3.U.K.

##### 2.4.Where two alternative rules are set out in column 3, separated by ‘or’, it is at the choice of the exporter which one to use.U.K.

##### Note 3 —Examples of how to apply the rulesU.K.

##### 3.1.Article 4(2) of this Annex, concerning products having acquired originating status which are used in the manufacture of other                        products, shall apply, regardless of whether this status has been acquired inside the factory where these products are used                        or in another factory in the OCTs or in the Union.U.K.

##### 3.2.Pursuant to Article 5 of this Annex, the working or processing carried out must go beyond the list of operations referred                        to in that Article. If it does not, the goods shall not qualify for the granting of the benefit of preferential tariff treatment,                        even if the conditions set out in the list below are met.U.K.

Subject to the provision referred to in the first subparagraph, the rules in the list represent 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.                  

##### 3.3.Without prejudice to Note 3.2, where a rule uses the expression ‘Manufacture from materials of any heading’, then materials                        of any heading(s) (even materials of the same description and heading as the product) may be used, subject, however, to any                        specific limitations which may also be contained in the rule.U.K.

However, the expression ‘Manufacture from materials of any heading, including other materials of heading ...’ or ‘Manufacture                     from materials of any heading, including other materials of the same heading as the product’ means that materials of any heading(s)                     may be used, except those of the same description as the product as given in column 2 of the list.                  

##### 3.4.When a rule in the list specifies that a product may be manufactured from more than one material, this means that one or more                        materials may be used. It does not require that all be used.U.K.

##### 3.5.Where a rule in the list specifies that a product must be manufactured from a particular material, the rule does not prevent                        the use also of other materials which, because of their inherent nature, cannot satisfy this condition.U.K.

##### Note 4 —General provisions concerning certain agricultural goodsU.K.

##### 4.1.Agricultural goods falling within Chapters 6, 7, 8, 9, 10, 12 and heading 2401 which are grown or harvested in the territory                        of an OCTs shall be treated as originating in the territory of that country, even if grown from seeds, bulbs, rootstock, cuttings,                        grafts, shoots, buds, or other live parts of plants imported from another country.U.K.

##### 4.2.In cases where the content of non-originating sugar in a given product is subject to limitations, the weight of sugars of                        headings 1701 (sucrose) and 1702 (e.g., fructose, glucose, lactose, maltose, isoglucose or invert sugar) used in the manufacture                        of the final product and used in the manufacture of the non-originating products incorporated in the final product is taken                        into account for the calculation of such limitations.U.K.

##### Note 5 —Terminology used in respect of certain textile productsU.K.

##### 5.1.The term ‘natural fibres’ is used in the list to refer to fibres other than artificial or synthetic fibres. It is restricted                        to the stages before spinning takes place, including waste, and, unless otherwise specified, includes fibres which have been                        carded, combed or otherwise processed, but not spun.U.K.

##### 5.2.The term ‘natural fibres’ includes horsehair of heading 0503, silk of headings 5002 and 5003, as well as wool-fibres and fine                        or coarse animal hair of headings 5101 to 5105, cotton fibres of headings 5201 to 5203, and other vegetable fibres of headings                        5301 to 5305.U.K.

##### 5.3.The terms ‘textile pulp’, ‘chemical materials’ and ‘paper-making materials’ are used in the list to describe the materials,                        not classified in Chapters 50 to 63, which can be used to manufacture artificial, synthetic or paper fibres or yarns.U.K.

##### 5.4.The term ‘man-made staple fibres’ is used in the list to refer to synthetic or artificial filament tow, staple fibres or waste,                        of headings 5501 to 5507.U.K.

##### Note 6 —Tolerances applicable to products made of a mixture of textile materialsU.K.

##### 6.1.Where, for a given product in the list, 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 and which, taken together, represent 10 % or less of                        the total weight of all the basic textile materials used. (See also Notes 6.3 and 6.4)U.K.

##### 6.2.However, the tolerance mentioned in Note 6.1 may be applied only to mixed products which have been made from two or more basic                        textile materials.U.K.

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; 
          -  current-conducting 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 poly(phenylene sulphide); 
          -  synthetic man-made staple fibres of poly(vinyl 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 5605 (metallised 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 5605; 
          -  glass fibres; 
          -  metal fibres. 

*Example:*                   

A yarn, of heading 5205, made from cotton fibres of heading 5203 and synthetic staple fibres of heading 5506, is a mixed yarn.                     Therefore, non-originating synthetic staple fibres which do not satisfy the origin rules may be used, provided that their                     total weight does not exceed 10 % of the weight of the yarn.                  

*Example:*                   

A woollen fabric, of heading 5112, made from woollen yarn of heading 5107 and synthetic yarn of staple fibres of heading 5509,                     is a mixed fabric. Therefore, synthetic yarn which does not satisfy the origin rules, or woollen yarn which does not satisfy                     the origin rules, or a combination of the two, may be used, provided that their total weight does not exceed 10 % of the weight                     of the fabric.                  

*Example:*                   

Tufted textile fabric, of heading 5802, made from cotton yarn of heading 5205 and cotton fabric of heading 5210, is only a                     mixed product if the cotton fabric is itself a mixed fabric 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 5205 and synthetic fabric of heading 5407,                     then, obviously, the yarns used are two separate basic textile materials and the tufted textile fabric is, accordingly, a                     mixed product.                  

##### 6.3.In the case of products incorporating ‘yarn made of polyurethane segmented with flexible segments of polyether, whether or                        not gimped’, the tolerance is 20 % in respect of this yarn.U.K.

##### 6.4.In the case of products incorporating ‘strip consisting of a core of aluminium foil or of a core of plastic film whether or                        not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive                        between two layers of plastic film’, the tolerance is 30 % in respect of this strip.U.K.

##### Note 7 —Other tolerances applicable to certain textile productsU.K.

##### 7.1.Where, in the list, reference is made to this Note, textile materials 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 % of the ex-works price of the product.U.K.

##### 7.2.Without prejudice to Note 7.3, 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.U.K.

*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.                  

##### 7.3.Where a percentage rule 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.U.K.

##### Note 8 —Definition of specific processes and simple operations carried out in respect of certain products of Chapter 27U.K.

##### 8.1.For the purposes of headings ex 2707 and 2713, the ‘specific processes’ are the following:U.K.

vacuum-distillation;

redistillation by a very thorough fractionation-process(20);                           

cracking;

reforming;

extraction by means of selective solvents;

the process comprising all of the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride;                              neutralisation with alkaline agents; decolourisation and purification with naturally-active earth, activated earth, activated                              charcoal or bauxite;                           

polymerisation;

alkylation;

isomerisation.

##### 8.2.For the purposes of headings 2710, 2711 and 2712, the ‘specific processes’ are the following:U.K.

vacuum-distillation;

redistillation by a very thorough fractionation-process(20);                           

cracking;

reforming;

extraction by means of selective solvents;

the process comprising all of the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride;                              neutralisation with alkaline agents; decolourisation and purification with naturally-active earth, activated earth, activated                              charcoal or bauxite;                           

polymerisation;

alkylation;

isomerisation;

in respect of heavy oils of heading ex 2710 only, desulphurisation with hydrogen, resulting in a reduction of at least 85 %                              of the sulphur-content of the products processed (ASTM D 1266-59 T method);                           

in respect of products of heading 2710 only, deparaffining by a process other than filtering;

in respect of heavy oils of heading ex 2710 only, treatment with hydrogen, at a pressure of more than 20 bar and a temperature                              of more than 250 °C, with the use of a catalyst, other than to effect desulphurisation, when the hydrogen constitutes an active                              element in a chemical reaction. The further treatment, with hydrogen, of lubricating oils of heading ex 2710 (e.g. hydrofinishing                              or decolourisation), in order, more especially, to improve colour or stability shall not, however, be deemed to be a specific                              process;                           

in respect of fuel oils of heading ex 2710 only, atmospheric distillation, on condition that less than 30 % of these products                              distils, by volume, including losses, at 300 °C, by the ASTM D 86 method;                           

in respect of heavy oils other than gas oils and fuel oils of heading ex 2710 only, treatment by means of a high-frequency                              electrical brush-discharge.                           

in respect of crude products (other than petroleum jelly, ozokerite, lignite wax or peat wax, paraffin wax containing by weight                              less than 0,75 % of oil) of heading ex 2712 only, de-oiling by fractional crystallisation.                           

##### 8.3.For the purposes of headings ex 2707 and 2713, 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,                        or any combination of these operations or like operations, do not confer origin.U.K.

### Appendix II

#### **List of products and working or processing operations which confer originating status**

### Appendix IIIFORM FOR MOVEMENT CERTIFICATE EUR.1

#### 1.Movement certificates EUR.1 shall be made out on the form of which a specimen appears in this Appendix. This form shall be                        printed in one or more of the languages in which this Decision is drawn up. Certificates shall be made out in one of these                        languages and in accordance with the provisions of the domestic law of the exporting State if they are handwritten, they shall                        be completed in ink and in capital letters.U.K.

#### 2.Each certificate shall measure 210 × 297 mm, a tolerance of up to plus 8 mm or minus 5 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.U.K.

#### 3.The exporting States may reserve the right to print the certificates themselves or may have them printed by approved printers.                        In the latter case each certificate must include a reference to such approval. Each certificate 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.U.K.

### Appendix IV**APPLICATION FOR A MOVEMENT CERTIFICATE EUR.1**

### Appendix V

### Appendix VI**ORIGIN DECLARATION**

The origin 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.                  

#### **Spanish version**U.K.

El exportador de los productos incluidos en el presente documento (autorización aduanera no ...(21)) declara que, salvo indicación en sentido contrario, estos productos gozan de un origen preferencial. ...(22).                  

#### **Czech version**U.K.

Vývozce výrobků uvedených v tomto dokumentu (číslo povolení ...(21)) prohlašuje, že kromě zřetelně označených, mají tyto výrobky preferenční původ v ...(22).                  

#### **Danish version**U.K.

Eksportøren af varer, der er omfattet af nærværende dokument, (toldmyndighedernes tilladelse nr. ...(21)), erklærer, at varerne, medmindre andet tydeligt er angivet, har præferenceoprindelse i ...(22).                  

#### **German version**U.K.

Der Ausführer (Ermächtigter Ausführer; Bewilligungs-Nr. ...(21)) der Waren, auf die sich dieses Handelspapier bezieht, erklärt, dass diese Waren, soweit nicht anderes angegeben, präferenzbegünstigte                     ...(22) Ursprungswaren sind.                  

#### **Estonian version**U.K.

Käesoleva dokumendiga hõlmatud toodete eksportija (tolliameti kinnitus nr. ...(21)) deklareerib, et need tooted on ...(22) sooduspäritoluga, välja arvatud juhul kui on selgelt näidatud teisiti.                  

#### **Greek version**U.K.

Ο εξαγωγέας των προϊόντων που καλύπτονται από το παρόν έγγραφο (άδεια τελωνείου υπ’ αριθ. ...(21)) δηλώνει ότι, εκτός εάν δηλώνεται σαφώς άλλως, τα προϊόντα αυτά είναι προτιμησιακής καταγωγής ...(22).                  

#### **English version**U.K.

The exporter of the products covered by this document (customs authorization No ...(21)) declares that, except where otherwise clearly indicated, these products are of ...(22) preferential origin.                  

#### **French version**U.K.

L’exportateur des produits couverts par le présent document (autorisation douanière no ...(21)) déclare que, sauf indication claire du contraire, ces produits ont l’origine préférentielle ...(22).                  

#### **Croatian version**U.K.

Izvoznik proizvoda obuhvaćenih ovom ispravom (carinsko ovlaštenje br. ...(21)) izjavljuje da su, osim ako je drukčije izričito navedeno, ovi proizvodi ...(22) preferencijalnog podrijetla.                  

#### **Italian version**U.K.

L’esportatore delle merci contemplate nel presente documento (autorizzazione doganale n. ...(21)) dichiara che, salvo indicazione contraria, le merci sono di origine preferenziale ...(22).                  

#### **Latvian version**U.K.

Eksportētājs produktiem, kuri ietverti šajā dokumentā (muitas pilnvara Nr. ...(21)), deklarē, ka, iznemot tur, kur ir citādi skaidri noteikts, šiem produktiem ir priekšrocību izcelsme no ...(22).                  

#### **Lithuanian version**U.K.

Šiame dokumente išvardintų produktų eksportuotojas (muitinės liudijimo Nr ...(21)) deklaruoja, kad, jeigu kitaip nenurodyta, tai yra ...(22) preferencinės kilmės produktai.                  

#### **Hungarian version**U.K.

A jelen okmányban szereplő áruk exportőre (vámfelhatalmazási szám: ...(21)) kijelentem, hogy eltérő jelzés hiányában az áruk kedvezményes ...(22) származásúak.                  

#### **Maltese version**U.K.

L-esportatur tal-prodotti koperti b’dan id-dokument (awtorizzazzjoni tad-dwana nru. ...(21)) jiddikjara li, ħlief fejn indikat b’mod ċar li mhux hekk, dawn il-prodotti huma ta’ oriġini preferenzjali ...(22).                  

#### **Dutch version**U.K.

De exporteur van de goederen waarop dit document van toepassing is (douanevergunning nr. ...(21)), verklaart dat, behoudens uitdrukkelijke andersluidende vermelding, deze goederen van preferentiële ... oorsprong zijn(22).                  

#### **Polish version**U.K.

Eksporter produktów objętych tym dokumentem (upoważnienie władz celnych nr ...(21)) deklaruje, że z wyjątkiem gdzie jest to wyraźnie określone, produkty te mają ...(22) preferencyjne pochodzenie.                  

#### **Portuguese version**U.K.

O abaixo assinado, exportador dos produtos cobertos pelo presente documento (autorização aduaneira no. ...(21)), declara que, salvo expressamente indicado em contrário, estes produtos são de origem preferencial ...(22).                  

#### **Slovenian version**U.K.

Izvoznik blaga, zajetega s tem dokumentom (pooblastilo carinskih organov št ...(21)) izjavlja, da, razen če ni drugače jasno navedeno, ima to blago preferencialno ...(22) poreklo.                  

#### **Slovak version**U.K.

Vývozca výrobkov uvedených v tomto dokumente (číslo povolenia ...(21)) vyhlasuje, že okrem zreteľne označených, majú tieto výrobky preferenčný pôvod v ...(22).                  

#### **Finnish version**U.K.

Tässä asiakirjassa mainittujen tuotteiden viejä (tullin lupa n:o ...(21)) ilmoittaa, että nämä tuotteet ovat, ellei toisin ole selvästi merkitty, etuuskohteluun oikeutettuja ... alkuperätuotteita(22).                  

#### **Swedish version**U.K.

Exportören av de varor som omfattas av detta dokument (tullmyndighetens tillstånd nr. ...(21)) försäkrar att dessa varor, om inte annat tydligt markerats, har förmånsberättigande ... ursprung(22).                  

#### **Bulgarian version**U.K.

Износителят на продуктите, обхванати от този документ (митническо разрешение No ...(21)) декларира, че освен кьдето е отбелязано друго, тези продукти са с ... преференциален произход(22).                  

#### **Romanian version**U.K.

Exportatorul produselor ce fac obiectul acestui document (autorizația vamală nr. ...(21)) declară că, exceptând cazul în care în mod expres este indicat altfel, aceste produse sunt de origine preferențială ...(22).                  

...(23)                   

(Place and date)

...(24)                   

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

### Appendix VII

### Appendix VIII

### Appendix IX**Information certificate**

#### 1.The form of the information certificate given in this Annex shall be used and printed in one or more of the official languages                        in which the Agreement is drawn up and in accordance with the provisions of the domestic law of the exporting country or territory.                        Information certificates shall be completed in one of those languages; if they are handwritten, they shall be completed in                        ink in capital letters. They shall bear a serial number, whether or not printed, by which they can be identified.U.K.

#### 2.The information certificate shall measure 210 x 297 mm, a tolerance of up to plus 8 mm or minus 5 mm in the length may be                        allowed. The paper must be white, sized for writing, not containing mechanical pulp and weighing not less than 25 g/m2.U.K.

#### 3.The administrators of the country or territory may reserve the right to print the forms themselves or may have them printed                        by printers approved by them. In the latter case, each form must include a reference to such approval. The forms shall bear                        the name and address of the printer or a mark by which the printer can be identified.U.K.

### Appendix X

### Appendix XI

### Appendix XII**STATEMENT ON ORIGIN**

To be made out on any commercial documents showing the name and full address of the exporter and consignee as well as a description                     of the goods and the date of issue(25)                   

#### **French version**U.K.

L’exportateur (Numéro d’exportateur enregistré – excepté lorsque la valeur des produits originaires contenus dans l’envoi                     est inférieure à EUR 10 000(26)) des produits couverts par le présent document déclare que, sauf indication claire du contraire, ces produits ont l’origine                     préférentielle ...(27) au sens des règles d’origine de la Décision d’association des pays et territoires d’outre-mer et que le critère d’origine                     satisfait est ...(28)                   

#### **English version**U.K.

The exporter (Number of Registered Exporter – unless the value of the consigned originating products does not exceed EUR 10                     000(26)) of the products covered by this document declares that, except where otherwise clearly indicated, these products are of                     ... preferential origin(27) according to rules of origin of the Decision on the association of the overseas countries and territories and that the origin                     criterion met is ...(28)                   

### Appendix XIII

#### **Materials excluded from cumulation provisions referred to in article 8 of this annex until 1 october 2015**

## ANNEX VIIU.K.**TEMPORARY WITHDRAWAL OF PREFERENCES**

### Article 1U.K.Principles concerning the withdrawal of preferences

1.The preferential arrangements provided for under Article 43 of this Decision may be withdrawn temporarily, in respect of all                        or of certain products originating in an OCTs, in cases of:                  

(a)fraud;                  

(b)irregularities or systematic failure to comply with or to ensure compliance with the rules concerning the origin of the products                        and with the procedures related thereto; or                  

(c)failure to provide the administrative cooperation referred to in paragraph 2 of this Article and Title V of Annex VI as required                        for the implementation and policing of the arrangements referred to in Articles 43 to 49 of this Decision.                  

2.The administrative cooperation referred to in paragraph 1 requires, inter alia, that an OCTs:                  

(a)communicates to the Commission and updates the information necessary for the implementation of the rules of origin and the                        policing thereof;                  

(b)assists the Union by carrying out, at the request of the customs authorities of the Member States, subsequent verification                        of the origin of the goods, and communicates its results in time;                  

(c)carries out or arranges for appropriate inquiries to identify and prevent contravention of the rules of origin;                  

(d)assists the Union by allowing the Commission, in coordination and close cooperation with the competent authorities of the                        Member States, to conduct Union inquiries on its territory, in order to verify the authenticity of documents or the accuracy                        of information relevant for granting the benefit of the arrangements referred to in Article 43 of this Decision;                  

(e)complies with or ensure compliance with the rules of origin in respect of cumulation, within the meaning of Articles 7 to                        10 of Annex VI;                  

(f)assists the Union in the verification of conduct where there is the presumption of origin-related fraud. The existence of                        fraud may be presumed where imports of products under the preferential arrangements provided for in this Decision massively                        exceed the usual levels of the beneficiary OCTs’s exports.                  

### Article 2U.K.Withdrawal of preferential arrangements

1.The Commission may temporarily withdraw the preferential arrangements provided for in this Decision, in respect of all or                        of certain products originating in a beneficiary country, where it considers that there is sufficient evidence that a temporary                        withdrawal would be justified for the reasons referred to in paragraphs 1 and 2 of Article 1 of this Annex, provided that                        it has first:                  

(a)consulted the Committee referred to in Article 10 of Annex VIII in accordance with the procedure referred to in Article 3(2)                        of this Annex;                  

(b)called on the Member States to take such precautionary measures as are necessary, in order to safeguard the Union’s financial                        interests and/or secure compliance by the beneficiary country with its obligations; and                  

(c)published a notice in the *Official Journal of the European Union* stating that there are grounds for reasonable doubt about the application of the preferential arrangements and/or compliance                        by the beneficiary country with its obligations, which may call into question its right to continue to enjoy the benefits                        granted by this Decision.                  

The Commission shall inform the OCTs(s) concerned of any decision taken in accordance with this paragraph, before it becomes                     effective. The Commission shall also notify the Committee referred to in Article 10 of Annex VIII.                  

2.The period of temporary withdrawal shall not exceed six months. On conclusion of that period, the Commission shall decide                        either to terminate the temporary withdrawal after informing the Committee referred to in Article 10 of Annex VIII or to extend                        the period of temporary withdrawal in accordance with the procedure referred to in paragraph 1 of this Article.                  

3.Member States shall communicate to the Commission all relevant information that may justify the withdrawal of preferences,                        its extension or its termination.                  

### Article 3U.K.Committee procedure

1.For the purpose of the implementation of Article 2 of this Annex, the Commission shall be assisted by the Committee referred                        to in Article 10 of Annex VIII.                  

2.When reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.                  

## ANNEX VIIIU.K.**SAFEGUARD AND SURVEILLANCE PROCEDURES**

### Article 1U.K.Definitions relative to surveillance and safeguard measures

For the purpose of the Articles 2 to 10 of this Annex relating to surveillance and safeguard measures:

‘like product’ means a product which is identical, namely alike in all respects, to the product under consideration, or, in                              the absence of such a product, another product which, although not alike in all respects, has characteristics closely resembling                              those of the product under consideration;                           

‘interested parties’ means those parties involved in the production, distribution and/or sale of the imports mentioned in                              Article 2(1) of this Annex and of like or directly competing products;                           

‘serious difficulties’ shall exist where Union producers suffer deterioration in their economic and/or financial situation.

### Article 2U.K.Principles of safeguard measures

1.Where a product originating in an OCTs referred to in Article 43 of this Decision is imported in volumes and/or at prices                        which cause, or threaten to cause, serious difficulties to Union producers of like or directly competing products, the necessary                        safeguard measures may be taken in accordance with the provisions below.                  

2.For the purpose of implementing paragraph 1, priority shall be given to such measures as would least disturb the functioning                        of the Association. These measures shall not exceed the limits of what is strictly necessary to remedy the difficulties that                        have arisen. They cannot exceed the withdrawal of the preferential treatment granted by this Decision.                  

3.When safeguard measures are taken or modified, particular attention shall be paid to the interests of the OCTs involved.                  

### Article 3U.K.Initiation of proceedings

1.The Commission shall investigate whether safeguard measures should be taken if there is sufficient prima facie evidence that                        the conditions of Article 2 of this Annex are met.                  

2.An investigation shall be initiated upon request by a Member State, by any legal person or any association not having legal                        personality, acting on behalf of Union producers, or on the Commission’s own initiative if it is apparent to the Commission                        that there is sufficient prima facie evidence, as determined on the basis of factors referred to in Article 2 of this Annex,                        to justify such initiation. The request to initiate an investigation shall contain evidence that the conditions for imposing                        the safeguard measure set out in Article 2 of this Annex are met. The request shall be submitted to the Commission. The Commission                        shall, as far as possible, examine the accuracy and adequacy of the evidence provided in the request to determine whether                        there is sufficient prima facie evidence to justify the initiation of an investigation.                  

3.Where it is apparent that there is sufficient prima facie evidence to justify the initiation of a proceeding, the Commission                        shall publish a notice in the *Official Journal of the European Union*. Initiation shall take place within one month of the request received pursuant to paragraph 2. Should an investigation be                        initiated, the notice shall provide all necessary details about the procedure and deadlines, including the possibility of                        recourse to the Hearing Officer of the Directorate-General for Trade of the European Commission.                  

4.The rules and procedures concerning the conduct of the investigation are laid down in Article 4 of this Annex.                  

5.If the OCTs authorities so require and without prejudice to the deadlines referred to in this Article, a trilateral consultation                        referred to in Article 14 of this Decision shall be organised. The outcome of the trilateral consultation shall be transmitted                        to the consultative committee.                  

### Article 4U.K.Investigations

1.Following the initiation of the proceeding, the Commission shall commence an investigation. The period as set out in paragraph                        3 shall start on the day the decision to initiate the investigation is published in the *Official Journal of the European Union*.                  

2.The Commission may request Member States to supply information and Member States shall take whatever steps are necessary in                        order to give effect to any such request. If that information is of general interest and is not confidential within the meaning                        of Article 9 of this Annex, it shall be added to the non-confidential files as provided for in paragraph 8.                  

3.The investigation shall be concluded within 12 months of its initiation.                  

4.The Commission shall seek all information it considers necessary to make a determination with regard to the conditions set                        out in Article 2 of this Annex, and, where it considers it appropriate, endeavour to verify that information.                  

5.In the investigation the Commission shall evaluate all relevant factors of an objective and quantifiable nature having a bearing                        on the situation of the Union industry, in particular, the market share, changes in the level of sales, production, productivity,                        capacity utilisation, profits and losses, and employment. This list is not exhaustive and other relevant factors may also                        be taken into consideration by the Commission.                  

6.Interested parties who have come forward within the period laid down in the notice published in the *Official Journal of the European Union* and representatives of the OCTs concerned may, upon written request, inspect all information made available to the Commission                        in connection with the investigation other than internal documents prepared by the Union authorities or those of the Member                        States, provided that that information is relevant to the presentation of their case and not confidential within the meaning                        of Article 9 of this Annex and that it is used by the Commission in the investigation. Interested parties who have come forward                        may communicate their views on the information to the Commission. Those views shall be taken into consideration where they                        are backed by sufficient prima facie evidence.                  

7.The Commission shall ensure that all data and statistics which are used for the investigation are available, comprehensible,                        transparent and verifiable.                  

8.The Commission shall hear the interested parties, in particular where they have made a written application within the period                        laid down in the notice published in the *Official Journal of the European Union*, showing that they are actually likely to be affected by the outcome of the investigation and that there are special reasons                        for them to be heard orally. The Commission shall hear such parties on further occasions if there are special reasons for                        them to be heard again.                  

9.When information is not supplied within the time limits set by the Commission, or the investigation is significantly impeded,                        findings may be made on the basis of the facts available. Where the Commission finds that any interested party or third party                        has supplied it with false or misleading information, it shall disregard that information and may make use of the facts available.                  

10.The Commission shall notify the OCTs concerned in writing of the initiation of an investigation.                  

### Article 5U.K.Prior surveillance measures

1.The products originating in the OCTs referred to in Article 43 of this Decision may be subject to special surveillance.                  

2.Prior surveillance measures shall be adopted by the Commission in accordance with the advisory procedure referred to in Article                        10 of this Annex.                  

3.Prior surveillance measures shall have a limited period of validity. Unless otherwise provided, they shall cease to be valid                        at the end of the second six-month period following the first six months after the measures were introduced.                  

4.The Commission and the competent OCTs authorities shall ensure the effectiveness of the surveillance measures by introducing                        the methods of administrative cooperation set out in Annexes VI and VII.                  

### Article 6U.K.Imposition of provisional safeguard measures

1.On duly justified grounds of urgency relating to deterioration of the economic and/or financial situation of Union producers                        which would be difficult to remedy, provisional measures may be imposed. Provisional measures shall not apply for more than                        200 days. Provisional measures shall be adopted by the Commission in accordance with the advisory procedure referred to in                        Article 10 of this Annex. In cases of imperative grounds of urgency, the Commission shall adopt immediately applicable provisional                        safeguard measures in accordance with the procedure referred to in Article 10 of this Annex.                  

2.Should the provisional safeguard measures be repealed because the investigation shows that the conditions set out in Article                        2 are not met, any customs duty collected as a result of those provisional measures shall be refunded automatically.                  

### Article 7U.K.Imposition of definitive measures

1.Where the facts as finally established show that the conditions set out in Article 2 are not met, the Commission shall adopt                        a decision terminating the investigation and proceeding in accordance with the examination procedure referred to in Article                        4. The Commission shall make public, with due regard to the protection of confidential information within the meaning of Article                        9, a report setting forth its findings and reasoned conclusions reached on all pertinent issues of fact and law.                  

2.Where the facts as finally established show that the conditions set out in Article 2 are met, the Commission shall adopt a                        decision imposing definitive safeguard measures in accordance with the examination procedure referred to in Article 4 of this                        Annex. The Commission shall make public, with due regard to the protection of confidential information within the meaning                        of Article 9, a report containing a summary of the material facts and considerations relevant to the determination, and notify                        the OCTs authorities immediately of the decision to take the necessary safeguard measures                  

### Article 8U.K.Duration and review of safeguard measures

1.A safeguard measure shall remain in force only for such period of time as may be necessary to prevent or remedy the serious                        injury and to facilitate adjustment. That period shall not exceed three years, unless it is extended under paragraph 2.                  

2.The initial period of duration of a safeguard measure may exceptionally be extended by up to two years provided it is determined                        that the safeguard measure continues to be necessary to prevent or remedy serious difficulties.                  

3.Any extension pursuant to paragraph 2 shall be preceded by an investigation upon a request by a Member State, by any legal                        person or any association not having legal personality, acting on behalf of the Union industry, or on the Commission’s own                        initiative if there is sufficient prima facie evidence that the safeguard measure continues to be necessary.                  

4.The initiation of an investigation shall be published in accordance with Article 4 and the safeguard measure shall remain                        in force, pending the outcome of the investigation. The investigation and any decision regarding an extension pursuant to                        paragraph 2 of this Article shall be done in accordance with Articles 6 and 7.                  

### Article 9U.K.Confidentiality

1.Information received pursuant to this Decision shall be used only for the purpose for which it was requested. Neither information                        of a confidential nature nor any information provided on a confidential basis received pursuant to this Decision shall be                        disclosed without specific permission from the supplier of such information.                  

2.Each request for confidentiality shall state the reasons why the information is confidential. However, if the supplier of                        the information wishes neither to make it public nor to authorise its disclosure in general terms or in the form of a summary,                        and if it appears that the request for confidentiality is unjustified, the information concerned may be disregarded.                  

3.Information shall, in any case, be considered to be confidential if its disclosure is likely to have a significantly adverse                        effect upon the supplier or the source of such information.                  

4.Paragraphs 1 to 4 shall not preclude reference by the Union authorities to general information and in particular to reasons                        on which decisions taken pursuant to this Decision are based. Those authorities shall, however, take into account the legitimate                        interest of natural and legal persons concerned that their business secrets should not be divulged.                  

### Article 10U.K.Committee procedure

1.The Commission shall be assisted by the Committee established by Article 4(1) of Council Regulation (EC) No 260/2009(29). That Committee shall be a Committee within the meaning of Regulation (EU) No 182/2011.                  

2.Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.                  

3.Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.                  

4.Where reference is made to this paragraph, Article 8 of Regulation (EU) No 182/2011, in conjunction with Article 4 thereof,                        shall apply.                  

1

Council Decision 2001/822/EC of 27 November 2001 on the association of the overseas countries and territories with the European                              Community (‘Overseas Association Decision’) (OJ L 314, 30.11.2001, p. 1).                           

2

Regulation (EU) No 978/2012 of the European Parliament and of the Council of 25 October 2012 applying the scheme of generalised                              tariff preferences and repealing Council Regulation (EC) No 732/2008 (OJ L 303, 31.10.2012, p. 1).                           

3

Regulation (EC) No 1082/2006 of the European Parliament and of the Council of 5 July 2006 on a European grouping of territorial                              cooperation (EGTC) (OJ L 210, 31.7.2006, p. 19).                           

4

Regulation (EC) No 1013/2006 of the European Parliament and of the Council of 14 June 2006 on shipments of waste (OJ L 190, 12.7.2006, p. 1).                           

5

Commission Regulation (EC) No 1418/2007 of 29 November 2007 concerning the export for recovery of certain waste listed in                              Annex III or IIIA to Regulation (EC) No 1013/2006 of the European Parliament and of the Council to certain countries to which                              the OECD Decision on the control of transboundary movements of wastes does not apply (OJ L 316, 4.12.2007, p. 6).                           

6

Directive 2000/59/EC of the European Parliament and of the Council of 27 November 2000 on port reception facilities for ship-generated                              waste and cargo residues (OJ L 332, 28.12.2000, p. 81).                           

7

Internal Agreement between the Representatives of the Governments of the Member States of the European Union, meeting within                              the Council, on the financing of European Union aid under the multiannual financial framework for the period 2014 to 2020,                              in accordance with the ACP-EU Partnership Agreement, and on the allocation of financial assistance for the Overseas Countries                              and Territories to which Part Four of the Treaty on the Functioning of the European Union applies (OJ L 210, 6.8.2013, p. 1).                           

8

Council Regulation (EC) No 617/2007 of 14 May 2007 on the implementation of the 10th European Development Fund under the ACP-EC                              Partnership Agreement (OJ L 152, 13.6.2007, p. 1).                           

9

OJ L 317, 15.12.2000, p. 3.                           

10

OJ L 287, 4.11.2010, p. 3.                           

11

Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code (OJ L 302, 19.10.1992, p. 1).                           

12

Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out                              by the Commission in order to protect the European Communities’ financial interests against fraud and other irregularities                              (OJ L 292, 15.11.1996, p. 2).                           

13

Regulation (EU) No 978/2012 of the European Parliament and of the Council of 25 October 2012 applying a scheme of generalised                              tariff preferences and repealing Council Regulation (EC) No 732/2008 (OJ L 303, 31.10.2012, p. 1).                           

14

Articles 17 and 18 of Regulation (EU) No 978/2012.

15

Point (a) of Article 1(2) of Regulation (EU) No 978/2012. Materials that benefit from duty free treatment by virtue of the                              special incentive arrangement for sustainable development and good governance, provided in point (b) of Article 1(2) of Regulation                              (EU) No 978/2012, but not under the general arrangement provided for in point (a) of Article 1(2) of that Regulation, are                              not covered by this provision.                           

16

Commission Regulation (EEC) No 2454/93 of 2 July 1993 laying down provisions for the implementation of Council Regulation                              (EEC) No 2913/92 establishing the Community Customs Code (OJ L 253, 11.10.1993, p. 1).                           

17

Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals                              with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data                              (OJ L 8, 12.1.2001, p. 1).                           

18

Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with                              regard to the processing of personal data and on the free movement of such data (OJ L 281, 23.11.1995, p. 31).                           

19

Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general                              principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).                           

20

See additional explanatory Note 4(b) to Chapter 27 of the Combined Nomenclature.

21

When the origin declaration is made out by an approved exporter, the authorisation number of the approved exporter must be                              entered in this space. When the origin declaration is not made out by an approved exporter, the words in brackets shall be                              omitted or the space left blank.                           

22

Origin of products to be indicated. When the origin declaration relates in whole or in part, to products originating in Ceuta                              and Melilla, the exporter must clearly indicate them in the document on which the declaration is made out by means of the                              symbol ‘CM’.                           

23

These indications may be omitted if the information is contained on the document itself.

24

In cases where the exporter is not required to sign, the exemption of signature also implies the exemption of the name of                              the signatory.                           

25

Where the statement on origin replaces another statement in accordance with Article 48 of this Annex, this shall be indicated                              and the date of issue of the original statement shall also always be mentioned.                           

26

Where the statement on origin replaces another statement, the subsequent holder of the goods establishing such a statement                              shall indicate his name and full address followed by the mention ‘acting on the basis of the statement on origin made out                              by [name and full address of the exporter in the OCTs], registered under the following number [Number of Registered Exporter                              of the exporter in the OCTs]’.                           

27

Country of origin of products to be indicated. When the statement on origin relates, in whole or in part, to products originating                              in Ceuta and Melilla within the meaning of Article 62 of this Annex, the exporter must clearly indicate them in the document                              on which the statement is made out by means of the symbol ‘CM’.                           

28

Products wholly obtained: enter the letter ‘P’; Products sufficiently worked or processed: enter the letter ‘W’ followed by                              the Harmonised Commodity Description and Coding System (Harmonised System) heading at the four-digit level of the exported                              product (example ‘W’9618); where appropriate, the above mention shall be replaced with one of the following indications: ‘EU                              cumulation’, ‘OCTs cumulation’, ‘cumulation with EPA country’‘extended cumulation with country x’ or ‘Cumul UE’, ‘cumul OCTs’,                              ‘cumul avec pays APE’, ‘cumul étendu avec le pays x’.                           

29

Council Regulation (EC) No 260/2009 of 26 February 2009 on the common rules for imports (OJ L 84, 31.3.2009, p. 1).