COUNCIL REGULATION (EEC) No 1136/88 of 7 March 1988 on the rules of origin for trade between Spain and Portugal in the period during which the transitional measures are applied
THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to the Act of Accession of Spain and Portugal, and in particular Article 1 of Protocol 3, annexed thereto, Having regard to the proposal from the Commission, Whereas Regulation (EEC) No 846/86 (1), as amended by Regulation (EEC) No 2474/86 (2), lays down the rules of origin for trade between Spain and Portugal during the transitional period;
Whereas the rules of origin contained in Regulation (EEC) No 846/86 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' on 14 June 1983;
Whereas as from 1 January 1988 the harmonized system has replaced the previous nomenclature for the purposes of international trade;
Whereas it is therefore necessary to adapt the rules of origin contained in Regulation (EEC) No 846/86 in so far as they are based on the use of the harmonized system;
Whereas, in the light of experience, the presentation of the rules of origin 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;
Whereas it is therefore advisable to amend the Regulation to the extent rendered necessary by the new presentation of the origin rules;
Whereas it is appropriate for the proper functioning of the origin rules to redraft certain provisions with a view to facilitating the work of users and customs administrations and to repeal Regulation (EEC) No 846/86, HAS ADOPTED THIS REGULATION:
TITLE I Definition of the concept of ´originating products' Article 1 For the purposes of the arrangements established in Article 1 (2) and (3) of Protocol 3 to the Act of Accession, the following products shall be considered as:
1. products originating in Spain:
(a) products wholly obtained in Spain;
(b)products obtained in Spain in the manufacture of which products other than those referred to in (a) are used, provided that the said products have undergone sufficient working or processing within the meaning of Article 3. This condition shall not apply, however, to products which, within the meaning of this Regulation, originate in Portugal;
2.products originating in Portugal:
(a)products wholly obtained in Portugal;
(b)products obtained in Portugal in the manufacture of which products other than those referred to in (a) are used, provided that the said products have undergone sufficient working or processing within the meaning of Article 3. This condition shall not apply, however, to products which, within the meaning of this Protocol, originate in Spain.
The products in Annex II shall be temporarily excluded from the scope of this Regulation.
Nevertheless, the arrangements regarding administrative cooperation and Article 11 shall apply mutatis mutandis to these products.
Article 2 The following shall be considered as wholly obtained either in Spain or in Portugal within the meaning of Article 1 (1) (a) and (2) (a):
(a) mineral products extracted from their soil or from their seabed;
(b)vegetable products harvested there;
(c)live animals born and raised there;
(d)used articles collected there fit only for the recovery of raw materials;
(e)waste and scrap resulting from manufacturing operations conducted there;
(f)goods produced there exclusively from products specified in subparagraphs (a) to (e). Article 3 1. The expressions ´chapters' and ´headings' used in this Regulation shall mean the chapters and the headings (four digit codes) used in the harmonized system.
The expression ´classified' shall refer to the classification of a product or material under a particular heading.
2. For the purpose of implementing Article 1 (1) (b) and (2) (b), non-originating materials shall be 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, 4 and 5 below.
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 products falling within Chapters 84 to 91, as an alternative to satisfying the conditions set out in column 3, the exporter may opt to apply the conditions set out in column 4 of the list in Annex III instead.
5. For the purpose of implementing Article 1 (1) (b) and (2) (b) 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, classifying, matching (including the making up of sets of articles), washing, painting, cutting up;
(c) (i) changes of packing 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 packing operations;
(d)affixing marks, labels or other like distinguishing signs on products or their packaging;
(e)simple mixing of products, whether or not of different kinds, where one or more components of the mixtures do not meet the conditions laid down in this Protocol to enable them to be considered as originating either in the Community or in Portugal;
(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 4 1. By derogation from Article 1, originating status shall also be conferred on products falling within the headings and chapters set out in Annex IV, by working, processing or assembly in which the combined value of the materials originating in the Community as constituted on 31 December 1985, hereinafter referred to as ´the Community of Ten', and non-originating materials incorporated does not exceed the percentage of the value of the finished product fixed for them in the said Annex IV.
Where non-originating materials are incorporated, the value of these materials may never exceed, within the limits set out in the said Anex IV:
- for products falling within Chapters 84 to 92:
the percentage set out for these products in column 4 of the list in Annex III, or in column 3 when no rule is given in column 4,-for products falling within heading Nos 7407, 7408, 7604 and 7605:
40 % of the value of the finished product.
2. Article 1 shall apply mutatis mutandis for determination of the status of products originating in the Community of Ten.
However, when the said originating status is conferred following application of the rules laid down in paragraph 1 of this Article only the percentages and the conditions laid down with regard to non-originating materials incorporated apply.
Article 5 1. The unit of qualification for the application of the rules of origin shall be the particular product which is considered as the basic unit when determining classification using the nomenclature of the harmonized system.
In the case of sets of products which are classified by virtue of General Rule 3 of the harmonized system, the unit of qualification shall be determined in respect of each item in the set;
this also applies to the sets of heading Nos 6308, 8206 and 9605. Accordingly it follows that:
- when a product composed of a group or assembly of articles is classified under the terms of the harmonized system in a single heading, the whole constitutes the unit of qualification,-when a consignment consists of a number of identical products classified under the same heading of the harmonized system, each product must be taken individually when applying the origin rules.
2. Accessories, spare parts and tools dispatched with a piece of equipment machine, apparatus or vehicle which are part of the normal equipment and included in the price thereof, or are not separately invoiced, are regarded as one with the piece of equipment, machine, apparatus or vehicle in question.
3. 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 total value of the set.
4. Where, under General Rule 5 of the harmonized system, packing is included with the product for classification purposes, it shall be included for purposes of determining origin.
5. In order to determine whether goods originate in Spain or in Portugal, it shall not be necessary to establish whether the power and fuel, plant and equipment, and machines and tools used to obtain such goods originate in third countries or not.
Article 6 1. 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, the first subparagraph 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.
TITLE II Administrative cooperation Article 7 Originating products within the meaning of this Regulation may be imported into Spain or Portugal under the preferential arangements provided for in Article 1 of Protocol 3 to the Act of Accession on production of an internal Community transit document COM T2 ES or COM T2 L ES, or COM T2 PT or COM T2 L PT, or other document having the same effect, made out in Spain or Portugal as the case may be, as provided for in Article 17 of Commission Regulation (EEC) No 409/86 (3). Article 8 The exporter or his authorized representative shall submit any supporting evidence indicating that one of the internal Community transit documents referred to in Article 7, endorsed with the words ´Portuguese origin' or ´Spanish origin', as appropriate, in accordance with Article 17 of Regulation (EEC) No 409/86, may correctly be made out in respect of the goods for export to Spain or Portugal as the case may be.
Article 9 1. Regulation (EEC) No 3351/83 (4) shall apply mutatis mutandis to the making out of the internal Community transit documents referred to in Article 7 and to the provision of the evidence of the originating status of products of the Community of Ten.
The supplier must state clearly in his declaration that the products have originated either in the Community of Ten or in Spain or in Portugal.
2. For the purposes of Article 1 (1) (b) last sentence and (2) (b) last sentence, evidence of the originating status of Spanish or Portuguese products may also take the form of one of the internal Community transit documents referred to in Article 7, made out in Spain or Portugal as the case may be.
Article 10 1. In order to ensure the proper application of this Title, Spain and Portugal shall assist each other, through their respective customs administrations, in checking the authenticity and accuracy of the internal Community transit documents COM T2 ES or COM T2 L ES, or COM T2 PT or COM T2 L PT, or documents having the same effect.
For the purpose of subsequent verification the Spanish or Portuguese customs authorities must keep the said internal Community transit documents, or copies of documents having the same effect, for not less than two years.
2. Subsequent verification of the documents shall be carried out in accordance with the relevant provisions of the Community transit system.
TITLE III General provisions Article 11 1. Products used in the manufacture of products of a kind to which this Regulation applies and in respect of which an internal Community transit document COM T2 ES or COM T2 L ES, or COM T2 PT or COM T2 L PT, or other document having the same effect, is made out in Spain or Portugal in accordance with Article 17 of Regulation (EEC) No 409/86, must:
(a) be in free circulation in Spain or Portugal, as the case may be;
or(b)have given rise to the payment in Spain or Portugal of the compensating levy provided for in Article 8 (4) of Commission Regulation (EEC) No 526/86 of 28 February 1986 on transitional measures for trade within the Community in goods obtained in Spain or Portugal, or in another Member State under a system providing for suspension or drawback of customs duties or other import charges - compensating levy (5), as amended by Regulation (EEC) No 3634/87 (6).The exporter may opt for rule (a) or rule (b). 2. However, by way of exception from paragaph 1, products from another Member State covered by a Community internal transit document COM T2 ES or COM T2 L ES, or COM T2 PT or COM T2 L PT, or a document having the same effect, made out in the said Member State, which are used in Spain or Portugal in the manufacture of products of the kind to which this Regulation applies, may be the subject of drawback or other form of exemption from customs duties applicable between the other Member States and Portugal or Spain as the case may be.
Article 12 1. The Committee on Origin set up by Article 12 of Regulation (EEC) No 802/68 (7) may examine all matters relating to the implementation of this Regu- lation which are raised by its chairman either on his own initiative or at the request of a representative of one of the Member States.
2. The provisions required for applying the definition of the concept of ´originating products' shall be adopted in accordance with the procedure laid down in Article 14 (2) and (3) of Regulation (EEC) No 802/68. Article 13 If the application of this Regulation and, in particular, the provisions relating to products contained in Annex IV have given rise to difficulties of the kind referred to in Article 379 of the Act of Accesion, the new Member State concerned may apply for authorization to take protective measures in accordance with the provisions of that Article.
TITLE IV Final provisions Article 14 1. Regulation (EEC) No 846/86 is hereby repealed.
2. References to the Regulation repealed pursuant to paragraph 1 shall be construed as references to this Regulation.
References to the Articles of the said Regulation shall be interpreted in accordance with the table of equivalence in Annex I. Article 15 1. Products which were exported before 1 January 1988 accompanied by one of the internal Community transit documents or other documents having the same effect, referred to in Article 7, shall be considered as originating under the rules in force on 1 January 1988. 2. Internal Community transit documents or other documents having the same effect, issued before 1 January 1988 under the rules in force before that date, shall be accepted according to the rules in force when they were issued.
Article 16 This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities.
It shall apply with effect from 1 January 1988. This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 7 March 1988.