COUNCIL REGULATION (EEC) No 2229/89 of 18 July 1989 on the application of Decision No 1/89 of the EEC-Malta Association Council amending, as a result of the introduction of the harmonized system, Protocol No 2 concerning the definition of the concept of 'originating products' and methods of administrative cooperation
THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Article 113 thereof, Having regard to the proposal from the Commission, Whereas the Agreement establishing an Association between the European Economic Community and Malta (1) was signed on 5 December 1970;
Whereas, by virtue of Article 25 of the Protocol concerning the definition of the concept of 'originating products' and methods of administrative cooperation, which forms an integral part of the abovementioned Agreement, the EEC-Malta Association Council has adopted Decision No 1/89 amending the said Protocol;
Whereas it is necessary to apply this Decision in the Community, HAS ADOPTED THIS REGULATION:
Article 1
Decision No 1/89 of the EEC-Malta Association Council shall apply in the Community.
The text of the Decision is attached to this Regulation.
Article 2
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Communities.
It shall apply from 1 January 1990. This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 18 July 1989. For the Council The President R. DUMAS (1) OJ No L 61, 14. 3. 1971, p. 2. DECISION No 1/89 OF THE EEC-MALTA ASSOCIATION COUNCIL of 20 March 1989 amending, as a consequence of the introduction of the harmonized system, Protocol No 2 concerning the definition of the concept of 'originating products' and methods of administrative cooperation
THE ASSOCIATION COUNCIL, Having regard to the Agreement creating an Association between the European Economic Community and Malta, signed on 5 December 1970, Having regard to Protocol No 2 concerning the definition of the concept of 'originating products' and methods of administrative cooperation, and in particular Article 25 thereof, Whereas the origin rules contained in Protocol No 2 are based on the use of the Customs Cooperation Council Nomenclature;
whereas the Customs Cooperation Council approved the International Convention on the Harmonized Commodity Description and Coding System (hereinafter referred to as the 'harmonized system') on 14 June 1983;
whereas as from 1 January 1988 the harmonized system was introduced for the purposes of international trade;
whereas it is therefore necessary to adapt the rules of origin contained in Protocol No 2 so that they are based on the use of the harmonized system;
Whereas, in the light of experience, the presentation of the origin rules could be improved by grouping all the exceptions to the basic change of heading rule into one list and by providing detailed guidance on how it should be interpreted, HAS DECIDED AS FOLLOWS:
Article 1
In Article 1 of Protocol No 2, the words 'in List C in Annex IV' are replaced by 'in Annex II'. Article 2
Article 3 of Protocol No 2 is replaced by the following:
'Article 3 1. The expressions "Chapters" and "headings" used in this Protocol shall mean the chapters and the headings (four digit codes) used in the nomenclature which makes up the "harmonized commodity description and coding system" (hereinafter referred to as the "harmonized system" or "HS").The expression "classified" shall refer to the classification of a product or material under a particular heading.
2. For the purposes of Article 1, non-originating materials are considered to be sufficiently worked or processed when the product obtained is classified in a heading which is different from those in which all the non-originating materials used in its manufacture are classified, subject to the provisions of paragraphs 3 and 4. 3. For a product mentioned in columns 1 and 2 of the List in Annex III, the conditions set out in column 3 for the product concerned must be fulfilled instead of the rule in paragraph 2. 4. For the purpose of implementing Article 1, the following shall always be considered as insufficient working or processing to confer the status of originating product, whether or not there is a change of heading:
(a) operations to ensure the preservation of merchandise in good condition during transport and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations);
(b)simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making up of sets of articles), washing, painting, cutting up;
(c)i(i) changes of packaging and breaking up and assembly of consignments;
(ii)simple placing in bottles, flasks, bags, cases, boxes, fixing on cards or boards, etc.
, and all other simple packaging operations;
(d)affixing marks, labels or other like distinguish- ing signs on products or their packaging;
(e)simple mixing of products, whether or not of different kinds, where one or more components of the mixture do not meet the conditions laid down in this Protocol to enable them to be considered as originating;
(f)simple assembly of parts of articles to constitute a complete article;
(g)a combination of two or more operations specified in subparagraphs (a) to (f);
(h)slaughter of animals.
' Article 3
Article 4 of Protocol No 2 is replaced by the following:
'Article 41. The term "value" in the List in Annex III shall mean the customs value at the time of the import 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 territory concerned.
Where the value of the originating materials used needs to be established, this paragraph shall be applied mutatis mutandis.
2. The term "ex-works price" in the List in Annex III shall mean the ex-works price of the product obtained minus any internal taxes which are, or may be, repaid when the product obtained is exported.
' Article 4
Article 6 of Protocol No 2 is hereby amended as follows:
1. In paragraph 2, the expression 'Article 3 (3)' is replaced by 'Article 3 (4)', and the words 'Brussels nomenclature' by 'harmonized system'. 2.The following paragraph is added:
'4. Sets within the meaning of General Rule 3 of the harmonized system shall be regarded as originating when all component articles are originating products.
Nevertheless, when a set is composed of originating and non-originating articles, the set as a whole shall be regarded as originating provided that the value of the non-originating articles does not exceed 15 % of the ex-works price of the set.
' Article 5
1. Annexes I, II and III to this Decision replace Annexes I, II, III and IV to Protocol No 2. 2. Annexes V and VI are renumbered IV and V. Article 6
1. Products which were exported before 1 January 1990, accompanied by a Movement Certificate EUR 1 or Form EUR 2, shall be considered as originating under the rules in force on 1 January 1990. 2. Movement Certificates EUR 1 or Forms EUR 2 issued or made out before 1 January 1990 under the rules in force before that date shall be accepted up to and including 31 May 1990 according to the rules in force when they were issued.
3. Articles 19 and 20 of Protocol No 2 shall apply in the case of goods exported before 1 January 1990 and retrospective or duplicate Movement Certificates may be issued under the rules in force before that date.
Article 7
This Decision shall apply from 1 January 1990. Done at Brussels, 20 March 1989.