1997A1222 — EN — 01.09.2008 — 001.001

This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents

Amended by:





Corrected by:









▼B

AGREEMENT

between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part







THE EUROPEAN COMMUNITY, of the one part, and THE GOVERNMENT OF DENMARK AND THE HOME GOVERNMENT OF THE FAROE ISLANDS, of the other part, RECALLING the status of the Faeroes as a self-governing integral part of one of the Member States of the Community; RECALLING the resolution of the Council of 4 February 1974 on the problems of the Faeroes; CONSIDERING the vital importance for the Faeroes of fisheries, which constitute their essential economic activity, fish and fishery products being their main export articles; CONSIDERING the importance of the fisheries relationship laid down in the Agreement on fisheries between the Contracting Parties, who confirm that the trade aspects of this Agreement should not affect the functioning of the Fisheries Agreement and that, consequently, the volume of the mutual fisheries possibilities under that Agreement should continue to be maintained at a satisfactory level; DESIRING to consolidate and to extend the economic relations existing between the Community and the Faeroes and to ensure, with due regard for fair conditions of competition, the harmonious development of their commerce for the purpose of contributing to the work of constructing Europe; RESOLVED progressively to eliminate the obstacles to substantially all their trade, in accordance with the provisions of the General Agreement on Tariffs and Trade (GATT) 1994 concerning the establishment of free trade areas; DECLARING their readiness to examine, in the light of any relevant factor, and in particular of developments in the Community, the possibility of developing and deepening their relations where it would appear to be useful in the interests of their economies to extend them to fields not covered by this Agreement; CONSIDERING that, to this end, an Agreement between the European Economic Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part (hereafter referred to as the ‘initial Agreement’) was signed on 2 December 1991; CONSIDERING that an Agreement in the form of an Exchange of Letters between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part, amending Tables I and II of the Annex to Protocol 1 of the initial Agreement (hereafter referred to as the ‘Agreement in the form of an Exchange of Letters’) was signed on 8 March 1995; CONSIDERING that, pursuant to the accession of the Republic of Austria, the Republic of Finland and the Kingdom of Sweden to the European Union on 1 January 1995, the arrangements applicable to trade in fish and fishery products between the Faeroes and the Community should be adjusted in order to maintain trade flows between the Faeroes, on the one hand, and the new Member States, on the other; CONSIDERING that, as a result of the adoption by the Community of a common definition of origin for petroleum products, it is necessary to make adjustments to the provisions affecting these products; CONSIDERING that, in order to take account of certain developments in trade between the Community and the Member States of EFTA, it is necessary to make adjustments to the provisions concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation; CONSIDERING that, in order to take account of the specific production of fish feed on the Faeroes, it is necessary to make adjustments to the provisions applicable to imports of certain agricultural products; CONSIDERING that, in order to help ensure its correct functioning, a Protocol on mutual administrative assistance in customs matters should be incorporated into this Agreement; CONSIDERING that, in order to conform with certain modifications to the nomenclature of the customs tariffs of the Contracting Parties affecting products referred to in the initial Agreement, it is necessary to update the tariff nomenclature of these products; CONSIDERING that, in order to provide for more flexibility, it is appropriate to empower the Joint Committee to decide on amendments to the provisions of the Protocols to this Agreement; CONSIDERING that, for the sake of clarity, the initial Agreement and the Agreement in the form of an Exchange of Letters should be replaced by a composite new text in the form of this Agreement; TAKING INTO ACCOUNT that the bilateral trade Agreements between Finland and Sweden and the Faeroes cease to be in force on the entry into force of this Agreement; HAVE DECIDED, in pursuit of these objectives and considering that no provisions of this Agreement may be interpreted as exempting the Contracting Parties from the obligations which are incumbent on them under other international agreements, TO CONCLUDE THIS AGREEMENT:







Article 1

The aim of this Agreement is:

(a) to promote through the expansion of reciprocal trade the harmonious development of economic relations between the Community and the Faeroes and thus to foster in the Community and in the Faeroes the advance of economic activity, the improvement of living and employment conditions, and increased productivity and financial stability,

(b) to provide fair conditions of competition for trade between the Contracting Parties,

(c) to contribute in this way, by the removal of barriers to trade, to the harmonious development and expansion of world trade.

Article 2

This Agreement shall apply to products originating in the Community or the Faeroes:

(i) which fall within Chapters 25 to 97 of the Harmonized System, other than those listed in Annex II to the Treaty establishing the European Community, and other than those listed in Annex I to this Agreement;

(ii) which are specified in Protocols 1, 2 and 4 to this Agreement, with due regard to the arrangements provided for in those Protocols.

Article 3

No new customs duty on imports shall be introduced in trade between the Community and the Faeroes.

Article 4

1. The Community shall abolish customs duties on imports from the Faeroes.

2. The Faeroes shall abolish customs duties on imports from the Community: to this end Annex II sets out the provisions contained in the customs and fiscal legislation of the Faeroes.

Article 5

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

The Faeroes may replace an import duty of a fiscal nature or the fiscal element of an import duty by an internal tax.

Article 6

No new charge having an effect equivalent to a customs duty shall be introduced in trade between the Community and the Faeroes.

Charges having an effect equivalent to customs duties on imports in trade between the Community and the Faeroes shall be abolished.

Article 7

No customs duty on exports or charge having equivalent effect shall be introduced in trade between the Community and the Faeroes.

Customs duties on exports and charges having equivalent effect shall be abolished.

Article 8

Protocol 1 lays down the tariff treatment and arrangements applicable to certain fish and fishery products released for free circulation in the Community or imported into the Faeroes.

Article 9

Protocol 2 lays down the tariff treatment and arrangements applicable to certain products obtained by processing agricultural products.

Article 10

1. In the event of specific rules being established as a result of the implementation of its agricultural policy or of any alteration of the current rules, the Contracting Party in question may adapt the arrangements resulting from this Agreement in respect of the products which are the subject of those rules or alterations.

2. In such cases the Contracting Party in question shall take due account of the interests of the other Contracting Party. To this end the Contracting Parties may consult each other within the Joint Committee established by Article 31.

Article 11

Protocol 3 lays down the definition of the concept of ‘originating products’ and methods of administrative cooperation.

Article 12

A Contracting Party which is considering the reduction of the effective level of its duties or charges having equivalent effect applicable to third countries benefiting from most-favoured-nation treatment, or which is considering the suspension of their application, shall, as far as may be practicable, notify the Joint Committee not less than 30 days before such reduction or suspension comes into effect. It shall take note of any representations by the other Contracting Party regarding any distortions which might result therefrom.

Article 13

1. No new quantitative restriction on imports or measures having equivalent effect shall be introduced in trade between the Community and the Faeroes.

2. The Contracting Parties shall abolish quantitative restrictions on imports and any measures having an effect equivalent to quantitative restrictions on imports.

Article 14

1. The Community reserves the right to modify the arrangements applicable to the petroleum products falling within headings Nos 2710, 2711, ex 2712 (excluding ozokerite, lignite wax and peat wax) and 2713 of the combined nomenclature on adoption of decisions under the common commercial policy for petroleum products or on establishment of a common energy policy.

In this event, the Community shall take due account of the interests of the Faeroes; to this end it shall inform the Joint Committee, which shall meet under the conditions set out in Article 33 (2).

2. The Faeroes reserves the right to take similar action should it be faced with like situations.

3. Subject to paragraphs 1 and 2, this Agreement shall not prejudice the non-tariff rules applied to imports of petroleum products.

Article 15

1. The Contracting Parties declare their readiness to foster, so far as their agricultural policies allow, the harmonious development of trade in agricultural products to which this Agreement does not apply.

2. The Contracting Parties shall apply their rules in veterinary, health and plant health matters in a non-discriminatory fashion and shall not introduce any new measures that have the effect of unduly obstructing trade.

3. The Contracting Parties shall examine, under the conditions set out in Article 35, any difficulties that might arise in their trade in agricultural products and shall endeavour to seek appropriate solutions.

Article 16

The Home Government of the Faroe Islands shall take the necessary control measures to ensure the correct application of the reference price fixed or to be fixed by the Community, referred to in Article 2 of Protocol 1.

The Contracting Parties shall ensure the correct application of the definition of the concept of ‘originating products’ and methods of administrative cooperation, laid down in Protocol 3.

Article 17

Protocol 4 lays down the special provisions applicable to imports of certain agricultural products other than those listed in Protocol 1.

Article 18

Protocol 5 lays down the provisions on mutual assistance between administrative authorities in customs matters.

Article 19

The Contracting Parties reaffirm their commitment to grant each other the most-favoured-nation treatment in accordance with the GATT 1994.

This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade, except in so far as they alter the trade arrangements provided for in this Agreement, in particular the provisions concerning rules of origin.

Article 20

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

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

Article 21

Payments relating to trade in goods and the transfer of such payments to the Member State of the Community in which the creditor is resident or to the Faeroes shall be free from any restrictions.

Article 22

This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, law and order or public security, the protection of life and health of humans, animals or plants, the protection of national treasures of artistic, historic or archaeological value, the protection of industrial and commercial property, or rules relating to gold or silver.

Such prohibitions or restrictions must not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Contracting Parties.

Article 23

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

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

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

(c) which it considers essential to its own security in time of war or serious international tension.

Article 24

1. The Contracting Parties shall refrain from any measure likely to jeopardize the fulfilment of the objectives of this Agreement.

2. They shall take any general or specific measures required to fulfil their obligations under this Agreement.

If either Contracting Party considers that the other Contracting Party has failed to fulfil an obligation under this Agreement, it may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 29.

Article 25

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

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

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

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

2. Should a Contracting Party consider that a given practice is incompatible with this Article, it may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 29.

Article 26

Where an increase in imports of a given product is or is likely to be seriously detrimental to any production activity carried on in the territory of one of the Contracting Parties and where this increase is due to:

(i) the partial or total reduction in the importing Contracting Party, as provided for in this Agreement, of customs duties and charges having equivalent effect levied on the product in question; and

(ii) the fact that the duties or charges having equivalent effect levied by the exporting Contracting Party on imports of raw materials or intermediate products used in the manufacture of the product in question are significantly lower than the corresponding duties or charges levied by the importing Contracting Party:

the Contracting Party concerned may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 29.

Article 27

If one of the Contracting Parties finds that dumping is taking place in trade with the other Contracting Party, it may take appropriate measures against this practice in accordance with the Agreement on Implementation of Article VI of the GATT 1994, under the conditions and in accordance with the procedures laid down in Article 29.

Article 28

If serious disturbances arise in any sector of the economy or if difficulties arise which could bring about serious deterioration in the economic situation of a region, the Contracting Party concerned may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 29.

Article 29

1. In the event of a Contracting Party subjecting imports of products liable to give rise to the difficulties referred to in Articles 26 and 28 to an administrative procedure, the purpose of which is to provide rapid information on the trend of trade flows, it shall inform the other Contracting Party.

2. In the cases specified in Articles 24 to 28, before taking the measures provided for therein or, in cases to which paragraph 3 (d) of this Article applies, as soon as possible, the Contracting Party in question shall supply the Joint Committee with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Contracting Parties.

In the selection of measures, priority must be given to those which least disturb the functioning of this Agreement.

The safeguard measures shall be notified immediately to the Joint Committee and shall be the subject of periodical consultations within the Committee, particularly with a view to their abolition as soon as circumstances permit.

3. For the implementation of paragraph 2, the following provisions shall apply:

(a) as regards Article 25, either Contracting Party may refer the matter to the Joint Committee if it considers that a given practice is incompatible with the proper functioning of this Agreement within the meaning of Article 25 (1). The Contracting Parties shall provide the Joint Committee with all relevant information and shall give it the assistance it requires in order to examine the case and, where appropriate, to eliminate the practice objected to. If the Contracting Party in question fails to put an end to the practice objected to within the period fixed by the Joint Committee, or in the absence of agreement in the Joint Committee within three months of the matter being referred to it, the Contracting Party concerned may adopt any safeguard measures it considers necessary to deal with the serious difficulties resulting from the practices in question; in particular it may withdraw tariff concessions;

(b) as regards Article 26, the difficulties arising from the situation referred to in that Article shall be referred for examination to the Joint Committee, which may take any decision needed to put an end to such difficulties. If the Joint Committee or the exporting Contracting Party has not taken a decision putting an end to the difficulties within 30 days of the matter being referred, the importing Contracting Party is authorized to levy a compensatory charge on the product imported. The compensatory charge shall be calculated according to the incidence on the value of the goods in question of the tariff disparities in respect of the raw materials or intermediate products incorporated therein;

(c) as regards Article 27, consultation in the Joint Committee shall take place before the Contracting Party concerned takes the appropriate measures;

(d) where exceptional circumstances requiring immediate action make prior examination impossible, the Contracting Party concerned may, in the situations specified in Articles 26, 27 and 28 and also in the case of export aids having a direct and immediate incidence on trade, apply forthwith the precautionary measures strictly necessary to remedy the situation.

Article 30

Where one or more Member States of the Community or the Faeroes is in difficulties or is seriously threatened with difficulties as regards its balance of payments, the Contracting Party concerned may take the necessary safeguard measures. It shall inform the other Contracting Party forthwith.

Article 31

1. A Joint Committee is hereby established which shall be responsible for the administration of this Agreement and shall ensure its proper implementation. For this purpose, it shall make recommendations and take decisions in the cases provided for in this Agreement. These decisions shall be put into effect by the Contracting Parties in accordance with their own rules.

2. For the purpose of the proper implementation of this Agreement the Contracting Parties shall exchange information and, at the request of either Party, shall hold consultations within the Joint Committee.

3. The Joint Committee shall adopt its own rules of procedure.

Article 32

1. The Joint Committee shall consist of representatives of the Contracting Parties.

2. The Joint Committee shall act by mutual agreement.

Article 33

1. Each Contracting Party shall preside in turn over the Joint Committee, in accordance with the arrangements to be laid down in its rules of procedure.

2. The Chairman shall convene meetings of the Joint Committee at least once a year in order to review the general functioning of this Agreement.

The Joint Committee shall, in addition, meet whenever special circumstances so require, at the request of either Contracting Party, in accordance with the conditions to be laid down in its rules of procedure.

3. The Joint Committee may decide to set up any working party that can assist it in carrying out its duties.

Article 34

1. The Joint Committee may amend the provisions of the Protocols to this Agreement.

2. In the event of modifications of the nomenclature of the customs tariffs of the Contracting Parties affecting products referred to in this Agreement, the Joint Committee may adapt the tariff nomenclature of these products to conform with such modifications.

Article 35

1. Where a Contracting Party considers that it would be useful in the common interest of both Contracting Parties to develop the relations established by this Agreement by extending them to fields not covered thereby, it shall submit a reasoned request to the other Contracting Party.

The Contracting Parties may instruct the Joint Committee to examine this request and, where appropriate, to make recommendations to them, particularly with a view to opening negotiations.

2. The agreements resulting from the negotiations referred to in paragraph 1 will be subject to ratification or approval by the Contracting Parties in accordance with their own procedures.

Article 36

At the request of the Faeroes, the Community will consider

— improving the access possibilities for specific products,

— extending its tariff concessions for Faeroese fishery products to include new fish species caught by Faeroese fishing vessels based and operating in the North Atlantic, or to include fishery products pertaining thereto not currently produced by the Faeroese fishing industry. These new fish species or fishery products could be imported free of duty into the Community, subject to the necessary quantitative limitations should the new fish species or fishery products be of a sensitive nature in the Community.

Article 37

The Annexes and Protocols to this Agreement shall form an integral part thereof.

Article 38

Either Contracting Party may denounce this Agreement by notifying the other Contracting Party. This Agreement shall cease to be in force 12 months after the date of such notification.

Article 39

This Agreement shall apply, on the one hand, to the territories to which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of the Faeroes.

Article 40

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

2. It will be approved by the Contracting Parties in accordance with their own procedures.

3. It shall enter into force on 1 January 1997, provided that the Contracting Parties have notified each other before that date that the procedures necessary to this end have been completed. After this date, this Agreement shall enter into force on the first day of the third month following such notification.

4. The provisions of the following Agreements shall cease to be in force on the entry into force of this Agreement:

— the Agreement between the European Economic Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part, signed on 2 December 1991,

— the Agreement in the form of an exchange of letters between the European Community, of the one part, and the Government of Denmark and the Home Government of the Faroe Islands, of the other part, amending Tables I and II of the Annex to Protocol 1 of the abovementioned Agreement, signed on 8 March 1995,

— the bilateral trade agreements between Finland and Sweden and the Faeroes.

Hecho en Bruselas, el seis de diciembre de mil novecientos noventa y seis.

Udfærdiget i Bruxelles den sjette december nitten hundrede og seks og halvfems.

Geschehen zu Brüssel am sechsten Dezember neunzehnhundertsechsundneunzig.

Έγινε στις Βρυξέλλες, στις έξι Δεκεμβρίου χίλια εννιακόσια ενενήντα έξι.

Done at Brussels on the sixth day of December in the year one thousand nine hundred and ninety-six.

Fait à Bruxelles, le six décembre mil neuf cent quatre-vingt-seize.

Fatto a Bruxelles, addì sei dicembre millenovecentonovantasei.

Gedaan te Brussel, de zesde december negentienhonderd zesennegentig.

Feito em Bruxelas, em seis de Dezembro de mil novecentos e noventa a seis.

Tehty Brysselissä kuudentena päivänä joulukuuta vuonna tuhatyhdeksänsataayhdeksänkymmentäkuusi.

Som skedde i Bryssel den sjätte december nittonhundranittiosex.

Gjørdur í Brússel, sætta desembur nítjanhundrað og nýtiseks.

Por la Comunidad Europea

For Det Europæiske Fællesskab

Für die Europäische Gemeinschaft

Για την Ευρωπαϊκή Κοινότητα

For the European Community

Pour la Communauté européenne

Per la Comunità europea

Voor de Europese Gemeenschap

Pela Comunidade Europeia

Euroopan yhteisön puolesta

På Europeiska gemenskapens vägnar

Fyri Europeiska Felagsskapin

Por el Gobierno de Dinamarca y el Gobierno local de las Islas Feroe

For Danmarks regering og Færøernes landsstyre

Für die Regierung von Dänemark und die Landesregierung der Färöer

Για την κυβέρνηση της Δανίας και την τοπική κυβέρνηση των Νήσων Φερόε

For the Government of Denmark and the Home Government of the Faroe Islands

Pour le gouvernement du Danemark et le gouvernement local des îles Féroé

Per il governo della Danimarca e per il governo locale delle isole Færøer

Voor de Regering van Denemarken en de Landsregering van de Faeröer

Pelo Governo da Dinamarca e pelo Governo Regional das Ilhas Faroé

Tanskan hallituksen ja Färsaarten paikallishallituksen puolesta

På Danmarks regerings och Färöarnas landsstyres vägnar

Fyri ríkisstjórn Danmarkar og Føroya landsstýri

ANNEX I

List of products referred to in Article 2 (i) of this Agreement







CN Code Description 3502 Albumins (including concentrates of two or more whey proteins, containing by weight more than 80 % whey proteins, calculated on the dry matter), albuminates and other albumin derivatives: — Egg albumin: 3502 11 — — Dried: 3502 11 90 — — — Other 3502 19 — — Other: 3502 19 90 — — — Other 3502 20 — Milk albumin, including concentrates of two or more whey proteins: — — Other: 3502 20 91 — — — Dried (for example, in sheets, scales, flakes, powder) 3502 20 99 — — — Other

ANNEX II

For the purposes of Article 4 (2) to this Agreement, the customs and fiscal legislation of the Færoes contains the following provisions:

(a) a customs tariff based on the Harmonized System and respecting the GATT obligations of Denmark;

(b) a duty-free treatment for goods of Community origin, with the exceptions set out in Protocols 2 and 4;

(c) a system of indirect taxation based on the following elements: — a value-added tax (VAT, based on the same principles as those which apply in the Community, including non-discrimination of imported goods; and — a system of excise duties, levied equally on domestic production and imported goods.

▼M3

PROTOCOL 1

concerning the tariff treatment and arrangements applicable to certain fish and fishery products released for free circulation in the Community or imported into the Faroes













Article 1

As regards the products listed in the Annex to this Protocol and originating in the Faroes:

1. no new customs duties shall be introduced in trade between the Community and the Faroes;

2. the preferential customs duties and other conditions to be applied on import into the Community shall be as indicated in the Annex.

Article 2

Any reference price fixed, or to be fixed, by the Community shall not apply to the products covered by this Protocol.

Article 3

1. Where a price decrease in imports of a given fishery product from one Contracting Party is, or is likely to be, seriously detrimental to the production activity concerned in the other Contracting Party, the Contracting Party concerned ay take appropriate measures.

2. In the selection of measures, priority must be given to those which least disturb the functioning of this Agreement.

3. Before taking appropriate measures, the Contracting Party in question shall supply the Joint Committee with all relevant information required for a through examination of the situation with a view to seeking a solution acceptable to the Contracting parties.

4. Except in cases of urgency, as described in paragraph 5, the Contracting Party concerned may not take measures until one month has elapsed after the date of notification, unless the Joint Committee procedure is concluded before expiry of the stated time limit.

5. Where circumstances require urgent action, the Contracting Party concerned may apply the measures strictly necessary to remedy the situation at the earliest three days after having informed the other Contracting Party.

6. Any safeguard measures shall be notified immediately to the Joint Committee and shall be the subject of periodical consultations within the Committee, particularly with a view to their abolition as soon as circumstances permit.

Article 4

The Faroes shall abolish tariffs and duties on imports of fish and fishery products originating in the Community.

ANNEX

The preferential customs duties and other conditions to be applied on import into the Community of products originating in and coming from the Faroes shall be as indicated below







TABLE 1 CN code Description Rate of duty Tariff quota (TQ) (1) (2) (3) (4) 0301 Live fish: ex 0301 91 90 – – – Trout of the species Oncorhynchus mykiss 0 TQ No 1 0301 92 00 – – Eels (Anguilla spp.) 0 ex 0301 99 11 – – – – Atlantic salmon (Salmo salar) 0 0302 Fish, fresh or chilled, excluding fish fillets and other fish meat of heading No 0304 : ex 0302 11 90 – – – Trout of the species Oncorhynchus mykiss 0 TQ No 1 ex 0302 12 00 – – Atlantic salmon (Salmo salar) 0 0302 19 00 – – Other 0 0302 21 10 – – – Lesser or Greenland halibut (Reinhardtius hippoglossoides) 0 0302 21 30 – – – Atlantic (Hippoglossus hippoglossus) 0 0302 22 00 – – Palice (Pleuronectes platessa) 0 0302 23 00 – – Sole (Solea spp.) 0 0302 29 10 – – – Megrim (Lepidorhombus spp.) 0 0302 29 90 – – – Other 0 0302 40 – Herrings (Clupea harengus, Clupea pallasii), excluding livers and roes: 0302 40 05 – – From 1 January to 14 February 0 0302 40 98 – – From 16 June to 31 December 0 0302 50 10 – – Cod of the species Gadus morhua 0 0302 62 00 – – – – Haddock (Melanogrammus aeglefinus) 0 0302 63 00 – – Coalfish (Pollachius virens) 0 ex 0302 64 05 – – – Mackerel of the species Scomber scombrus, from 1 January to 14 February 0 ex 0302 64 98 – – – Mackerel of the species Scomber scombrus, from 16 June to 31 December 0 0302 65 – – Dogfish and other sharks: 0302 65 20 – – – Dogfish of the species Squalus acanthias 0 0302 65 50 – – – Dogfish of the species Scyliorhimus spp. 0 0302 65 90 – – – Other 0 0302 66 00 – – Eels (Anguilla spp.) 0 – – – – Redfish (Sebastes spp.): 0302 69 31 – – – – – Of the species Sebastes marinus 0 ex 0302 69 33 – – – – – Of the species Sebastes mentella 0 0302 69 41 – – – – Whitings (Merlangus merlangus) 0 0302 69 45 – – – – Ling (Molva spp.) 0 ex 0302 69 68 – – – – Hake of the species Merluccius merluccius 0 0302 69 81 – – – – Monkfish (Lophius spp.) 0 0302 69 85 – – – – Blue whiting (Micromesistius poutassou or Gadus poutassou) 0 0302 69 99 – – – – Other 0 0302 70 00 – Livers and roes 0 0303 Fish, frozen excluding fish fillets and other fish meat of heading No 0304 : ex 0303 21 90 – – – Trout of the species Oncorbynchus mykiss 0 TQ No 1 ex 0303 22 00 – – Atlantic salmon (Salmo salar) 0 0303 29 00 – – Other 0 0303 31 10 – – – Lesser or Greenland halibut (Reinhardtius hippoglossoides) 0 0303 31 30 – – – Atlantic halibut (Hippoglossus hippoglossus) 0 0303 32 00 – – Plaice (Pleuronectes platessa) 0 0303 33 00 – – Sole (Solea spp.) 0 0303 39 10 – – – Flounder (Platichthys flesus) 0 0303 39 30 – – – Fish of the genus Rhombosolea 0 0303 39 80 – – – Other 0 0303 50 – Herrings (Clupea harengues, Clupea pollasi), excluding livers and roes: 0 0303 50 05 – – From 1 January to 14 February 0 0303 50 98 – – From 16 June to 31 December 0 0303 60 11 – – Cod of the species Gadus morhua 0 ▼M7 0303 72 00 Haddock (Melanogrammus aeglefinus) 0 ▼M3 0303 73 00 – – Coalfish (Pollachius virens) 0 ex 0303 74 10 – – – Mackerel of the species Scomber scombrus, from 1 January to 14 February 0 ex 0303 74 20 – – – Mackerel of the species Scombere scombrus, from 16 June to 31 December 0303 75 – – Dogfish and other sharks: 0303 75 20 – – – Of the species Squalus acanthias 0 0303 75 50 – – – Of the species Scyliorhinus spp. 0 0303 75 90 – – – Other 0303 79 – – Other: – – – Redfish (Sebastes spp.): 0303 79 35 – – – – – Redfish of the species Sebastes marinus 0 ex 0303 79 37 – – – – – Redfish of the species Sebastes mentella 0 0303 79 45 – – – – Whiting (Merlangus merlangus) 0 0303 79 51 – – – – Ling (Molva spp.) 0 0303 79 81 – – – – Monkfish (Lophius spp.) 0 0303 79 83 – – – – Blue whiting (Micromesistius poutassou or Gadus poutassou) 0 0303 79 96 – – – – Other 0 0303 80 – Livers and roes 0 0303 80 90 – – Other 0 0304 Fish fillets and other fish meat (whether or not minced), fresh, chilled or frozen: 0304 10 – Fresh or chilled: – – Fillets: – – – Of freshwater fish: ex 0304 10 11 – – – – Of trout of the species Oncorhynchus mykiss 0 TQ No 1 ex 0304 10 13 – – – – Of Atlantic salmon (Salmo salar) 0 – – – Other ex 0304 10 31 – – – – Of cod of the species Gadus morhua 0 0304 10 33 – – – – Of coalfish (Pollachius virens) 0 0304 10 35 – – – – Of redfish (Sebastes spp.) 0 0304 10 38 – – – – Other – – Other fish meat (whether or not minced): 0304 10 91 – – – Of freshwater fish 0 – – – Other: – – – – Flaps of herring: 0304 10 94 – – – – – From 1 January to 14 February 0 0304 10 96 – – – – – From 16 June to 31 December 0 0304 10 98 – – – – Other 0 0304 20 – Frozen fillets: – – Of freshwater fish: ex 0304 20 11 – – – Of trout of the species Oncorhynchus mykiss 0 TQ No 1 ex 0304 20 13 – – – Of Atlantic salmon (Salmon salar) 0 – – Of cod (Gadus morhua, Gadus macroephalus, Gadus Ogac) and of fish of the species Boreogadus saida: ex 0304 20 29 – – – Of cod of the species Gadus morhua 0 0304 20 31 – – Of coalfish (Pollachius virens) 0 0304 20 33 – – Of haddock (Melanogrammus aeglefinus) 0 – – Of redfish (Sebastes spp.) 0304 20 35 – – – Of the species Sebastes marinus 0 ex 0304 20 37 – – – Of the species Sebastes mentella 0 0304 20 41 – – Of Whiting (Merlangus merlangus) 0 0304 20 43 – – Of ling (Molva spp.) 0 ex 0304 20 53 – – – Of mackerel of the species Scomber scombrus 0 0304 20 71 – – Of plaice (Pleuronectes platessa) 0 0304 20 75 – – Of herring (Clupea harengus, Clupea pallasii) 0 0304 20 96 – – Other – – – Of blue whiting (Micromesistius poutassou or Gadus poutassou) – – – Other than of blue whiting (Micromesistius poutassou or Gadus poutassou) 0 0304 90 – Other: 0304 90 05 – – Surimi 0 – – Other: ex 0304 90 10 – – – Of freshwater fish: – – – – Of trout of the species Oncorhynchus mykiss 0 TQ No 1 – – – – Of Atlantic salmon (Salmo salar) 0 – – – Other: – – – – Of herring (Clupea harengus, Clupea pallasii): 0304 90 20 – – – – – From 1 January to 14 February 0 0304 90 27 – – – – – From 16 June to 31 December 0 0304 90 38 – – – – – Of cod of the species Gadus morhua 0 0304 90 41 – – – – Of coalfish (Pollachius virens) 0 0304 90 45 – – – – Of haddock (Melanogrammus aeglefinus) 0 0304 90 57 – – – – Of monkfish (Lophius spp.) 0 0304 90 59 – – – – Of blue whiting (Micromesistius poutassou or Gadus poutassou) 0 0304 90 97 – – – – Other 0 0305 Fish, dried, salted or in brine; smoked fish, whether or not cooked before or during the smoking process; flours, meals and pellets of fish, fit for human consumption: 0305 10 00 – Flours, meals and pellets of fish, fit for human consumption 0 0305 20 00 – Livers and roes, dried, smoked, salted or in brine 0 0305 30 – Fish fillets, dried, salted or in brine, but not smoked: ex 0305 30 19 – – – Of cod of the species Gadus morhua 0 ex 0305 30 30 – – Of Atlantic salmon (Salmo salar), salted or in brine 0 0305 30 50 – – Of lesser or Greenland halibut (Reinhardtius hippoglossoides), salted or in brine 0 0305 30 90 – – Other 0 ex 0305 41 00 – Smoked fish, including fillets: ex 0305 42 00 – – Atlantic salmon (Salmo salar) 0 0305 42 00 – – Herrings (Clupea harengus, Clupea pallasii) 0 0305 49 10 – – – Lesser or Greenland halibut (Reinhardtius hippoglossoides) 0 0305 49 20 – – – Atlantic halibut (Hippoglossus hippoglossus) 0 ex 0305 49 30 – – – Mackerel of the species Scomber scombrus) 0 ex 0305 49 45 – – – Trout of the species Onocorhynchus mykiss 0 0305 49 50 – – – Eels (Anguilla spp.) 0 0305 49 80 – – – Other 0 – Dried fish, whether or not salted but not smoked: ex 0305 51 10 – – – Cod of the species Gadus morhua, dried, unsalted 0 ex 0305 51 90 – – – Cod of the spcies Gadus morhua, dried, salted 0 ▼M9 0305 59 – – Other: 0305 59 80 – – – Other: ex 0305 59 80 – – – – Coalfish (Pollachius virens) 0 TQ No 5 ▼M3 ex 0305 59 90 – – – Other: – – – – Of ling (Molva molva) 0 – – – – Of blue ling (Molva dipterygia dipterygia) 0 – – – – Of tusk (Brosme brosme) 0 – Fish, salted but not dried or smoked and fish in brine: 0305 61 00 – – Herrings (Clupea harengus, Clupea pallasii) 0 ex 0305 62 00 – – Cod of the species Gadus morhua 0 0305 69 – – Other: 0305 69 90 – – – Other 0 0306 Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; crustaceans, in shell, cooked by steaming or by boiling in water, whether or not chilled, frozen, dried, salted or in brine; flours, meals and pellets or crustaceans, fit for human consumption: – Frozen: 0306 13 – – Shrimps and prawns: 0306 13 10 – – – Of the family Pandalidae 0 0306 13 40 – – – Deepwater rose shrimps (Parapenaeus longirostris) 0 0306 13 50 – – – Shrimps of the genus Penaeus 0 0306 13 80 – – – Other 0 ▼M9 0306 14 – – Crabs: 0306 14 90 – – – Other: ex 0306 14 90 – – – – Crabs of the species Geryon affinis 0 TQ No 6 ▼M3 0306 19 30 – – – Norway lobsters (Nephrops norvegicus) 0 – Not frozen: 0306 29 30 – – – Norway lobsters (Nephrops norvegicus) 0 0307 Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; aquatic invertebrates other than crustaceans and molluscs, live, fresh, chilled, frozen, dried, salted or in brine; flours, meals and pellets of aquatic invertebrates other than crustaceans, fit for human consumption: – Scallops, including queen scallops, of the genera Pecten, Chlamys or Placopecten: 0307 21 00 – – Live, fresh or chilled 0 0307 29 – – Other: 0307 29 10 – – – Common scallop (Pecten maximus), frozen 0 0307 29 90 – – – Other 0 ▼M9 – Other, including flours, meals and pellets of aquatic invertebrates other than crustaceans, fit for human consumption: 0307 91 00 – – Live, fresh or chilled: ex 0307 91 00 – – – Common whelk (Buccinum undatum) 0 TQ No 7 0307 99 – – Other: – – – Frozen: 0307 99 18 – – – – Other: ex 0307 99 18 – – – – – Common whelk (Buccinum undatum) 0 TQ No 7 ▼M3 1604 Prepared or preserved fish; caviar and caviar substitutes prepared from fish eggs: – Fish, whole or in pieces, but not minced: ex 1604 11 00 – – Atlantic salmon (Salmo salar) 0 TQ No 2 1604 12 – – Herrings: – – – Other: 1604 12 91 – – – – In airtight containers 0 1604 12 99 – – – – Other 0 1604 19 – – Other: ex 1604 19 10 – – – Trout of the species Oncorhynchus mykiss 0 TQ No 2 1604 19 91 – – – – Fillets, raw, merely coated with batter or breadcrumbs, whether or not prefried in oil, deep frozen 0 – – – – Other: 1604 19 92 – – – – – Cod (Gadus morhua, Gadus ogac, Gadus macrocephalus) 0 TQ No 3 1604 19 93 – – – – – Coalfish (Pollachius virens) 0 TQ No 3 1604 19 94 – – – – – Hake (Merluccius spp., Urophycis spp.) 0 TQ No 3 1604 19 95 – – – – – Alaksa pollack (Theragra chalcogramma) and pollack (Pollachius pollachius) 0 TQ No 3 1604 19 98 – – – – – Other 0 TQ No 3 1604 20 – Other prepared or preserved fish: 1604 20 05 – – Preparations of surimi 0 TQ No 3 – – Other: ex 1604 20 10 – – – Of Atlantic salmon (Salmo salar) 0 TQ No 2 ex 1604 20 30 – – – Of Trout of the species Oncorhynchus mykiss 0 TQ No 2 1604 20 90 – – – Of other fish: – – – – Other than of herring 0 TQ No 3 1605 Crustaceans, molluscs and other aquatic invertebrates, prepared or preserved: 1605 20 – Shrimps and prawns: 1605 20 10 – – In airtight containers 0 TQ No 4 – – Other: 1605 20 91 – – – In immediate packings of a net content not exceeding 2 kg 0 TQ No 4 1605 20 99 – – – Other 0 TQ No 4 ex 1605 40 00 – Norway lobsters (Nephrops norvegicus) 0 TQ No 4 ▼M9 1605 90 – Other – – Molluscs: 1605 90 30 – – – Other: ex 1605 90 30 – – – – Common whelk (Buccinum undatum) 0 TQ No 7 ▼M3 2301 Flours, meals and pellets, of meat or meat offal, of fish or of crustaceans, molluscs or other aquatic invertebrates, unfit for human consumption; greaves: 2301 20 00 – Flours, meals and pellets, of fish or of crustaceans, molluscs or other aquatic invertebrates 0







TABLE II CN code Description Rate of duty Tariff quota (TQ) (1) (2) (3) (4) 0301 Live fish: TQ No 1 ►C1 (1) ◄ 700 ex 0301 91 90 – – – Trout of the species Oncorhynchus mykiss 0 0302 Fish, fresh or chilled, excluding fish fillets and other fish meat of heading No 0304 : ex 0302 11 90 – – – Trout of the species Oncorhynchus mykiss 0 0303 Fish, frozen, excluding fish fillets and other fish meat of heading No 0304 : ex 0303 21 90 – – – Trout of the species Oncorhynchus mykiss 0 0304 Fish fillets and other fish meat (whether or not minced), fresh, chilled or frozen: 0304 10 – Fresh or chilled: – – Fillets: ex 0304 10 11 – – – – Of trout of the species Oncorhynchus mykiss 0 0304 20 – Frozen fillets: ex 0304 20 11 – – – Of trout of the species Oncorhynchus mykiss 0 0304 90 – Other: ex 0304 90 10 – – – Of trout of the species Oncorhynchus mykiss 0 ▼M9 0305 Fish, dried, salted or in brine, smoked fish, whether or not cooked before or during the smoking process; flours, meals and pellets of fish, fit for human consumption: – Dried fish, whether or not salted but not smoked: 0305 59 – – Other: 0305 59 80 – – – Other: ex 0305 59 80 – – – – Coalfish (Pollachius virens) 0 TQ No 5 (3) 750 0306 Crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; crustaceans, in shell, cooked by steaming or by boiling in water, whether or not chilled, frozen, dried, salted or in brine; flours, meals and pellets of crustaceans, fit for human consumption: – Frozen: 0306 14 – – Crabs: 0306 14 90 – – – Other: ex 0306 14 90 – – – – Crabs of the species Geryon affinis 0 TQ No 6 (3) 750 0307 Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; aquatic invertebrates other than crustaceans and molluscs, live, fresh, chilled, frozen, dried, salted or in brine; flours, meals and pellets of aquatic invertebrates other than crustaceans, fit for human consumption: – Other, including flours, meals and pellets of aquatic invertebrates other than crustaceans, fit for human consumption: 0307 91 00 – – Live, fresh or chilled: ex 0307 91 00 – – – Common whelk (Buccinum undatum) 0 TQ No 7 (3) 1 200 0307 99 – – Other: – – – Frozen: 0307 99 18 – – – – Other: ex 0307 99 18 – – – – – Common whelk (Buccinum undatum) 0 TQ No 7 (3) 1 200 ▼M3 1604 Prepared or preserved fish; caviar and caviar substitutes prepared from fish eggs: TQ No 2 400 – Fish, whole or in pieces, but not minced: ex 1604 11 00 – – Atlantic salmon (Salmo salar) 0 1604 19 – – Other: ex 1604 19 10 – – – Trout of the species Oncorhynchus mykiss 0 1604 20 – Other prepared or preserved fish: – – Other: ex 1604 20 10 – – – Of Atlantic salmon (Salmo salar) 0 ex 1604 20 30 – – – Of trout of the species Oncorhynchus mykiss 0 1604 Prepared or preserved fish; caviar and caviar substitutes prepared from fish eggs: TQ No 3 1 200 – Fish, whole or in pieces, but not minced: 1604 19 92 – – – – – Cod (Gadus morhua, Gadus ogac, Gadus macrocephalus) 0 1604 19 93 – – – – – Coalfish (Pollachius virens) 0 1604 19 94 – – – – – Hake (Merluccius spp., Urophycis spp.) 0 1604 19 95 – – – – – Alaska pollack (Theragra chalcogramma) and pollack (Pollachius pollachius) 0 1604 19 98 – – – – – Other 0 1604 20 – Other prepared or preserved fish: 1604 20 05 – – Preparations of surimi 0 – – Other ex 1604 20 90 – – – Of other fish: – – – – Other than of herring 0 ▼M7 1605 Crustaceans, molluscs and other aquatic invertebrates, prepared or preserved: TQ No 4 (2) 4 000 1605 20 - Shrimps and prawns: 1605 20 10 - - In airtight containers 0 - - Other: 1605 20 91 - - - In immediate packing of a net content not exceeding 2 kg 0 1605 20 99 – – – Other 0 ex 1605 40 00 - Norway lobsters (Nephrops norvegicus) 0 ▼M9 1605 90 – Other – – Molluscs: 1605 90 30 – – – Other: ex 1605 90 30 – – – – Common whelk (Buccinum undatum) 0 TQ No 7 (3) 1 200 (1) Figures refer to the commercial presentation ‘whole and gutted’. For imports falling within HS code 0304 , a coefficient of 2 shall be applied for quantities drawn from this tariff quota. (2) In 2007 the annual volume shall be 4 000 tonnes. From 1 January 2008 onwards the yearly volume shall be increased by 1 000 tonnes to a maximum level of 6 000 tonnes provided that at least 80 % of the total amount of the previous quota has been used by 31 December of that year. (3) For the year 2008, the volumes of the tariff quotas should be calculated pro rata to the basic volumes in proportion to the part of that year which elapsed before the tariff quotas apply.

▼B

PROTOCOL 2

concerning the tariff treatment and arrangements applicable to certain products obtained by processing agricultural products







Article 1

In order to take account of differences in the cost of the agricultural products incorporated in the goods specified in the table annexed to this Protocol, this Agreement does not preclude:

(i) the levying, on import, of an agricultural component or fixed amount, or the application of internal price compensation measures;

(ii) the application of measures adopted on export.

Article 2

The Community shall apply the customs duties on imports originating in the Faeroes as indicated in the table annexed to this Protocol.

Article 3

The Faeroes shall abolish tariffs and duties on imports of processed agricultural products originating in the Community, with the exceptions mentioned in Protocol 4, Article 2.

Should the Faeroes introduce such measures for processed agricultural products as mentioned in Article 1 of this Protocol, the Community shall be duly notified.







Table EUROPEAN COMMUNITY CN Code Description Rate of duty (1) 0403 Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa: 0403 10 — Yogurt: 0403 10 51 to 0403 10 99 — — Flavoured or containing added fruit, nuts or cocoa EA 0403 90 — Other: 0403 90 71 to 0403 90 99 — — — Flavoured or containing added fruit, nuts or cocoa EA 0710 Vegetables (uncooked or cooked by steaming or boiling in water), frozen: 0710 40 — Sweetcorn EA 0711 Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption: 0711 90 — Other vegetables; mixtures of vegetables: — — Vegetables: 0711 90 30 — — — Sweetcorn EA 1702 Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel: 1702 50 — Chemically pure fructose Free 1702 90 — Other, including invert sugar: 1702 90 10 — — Chemically pure maltose Free 1704 Sugar confectionery (including white chocolate), not containing cocoa: 1704 10 — Chewing gum, whether or not sugar-coated EA maximum 1704 90 — Other: 1704 90 10 — — Liquorice extract containing more than 10 % by weight of sucrose but not containing other added substances Free 1704 90 10 — — White chocolate EA maximum + AD S/Z 1704 90 51 to 1704 90 99 — — Other EA maximum + AD S/Z 1806 Chocolate and other food preparations containing cocoa: 1806 10 — Cocoa powder, containing added sugar or other sweetening matter EA 1806 20 — Other preparations in blocks or slabs weighing more than 2 kg or in liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg: 1806 20 10 — — Containing 31 % or more by weight of cocoa butter or containing a combined weight of 31 % or more of cocoa butter and milk fat EA maximum + AD S/Z 1806 20 30 — — Containing a combined weight of 25 % or more, but less than 31 % of cocoa butter and milk fat EA maximum + AD S/Z — — Other: 1806 20 50 — — — Containing 18 % or more by weight of cocoa butter EA maximum + AD S/Z 1806 20 70 — — — Chocolate milk crumb EA 1806 20 95 — — — Other EA maximum + AD S/Z — Other, in blocks, slabs or bars: 1806 31 00 — — Filled: EA maximum + AD S/Z 1806 32 — — Not filled EA maximum + AD S/Z 1806 90 — Other: 1806 90 11 to 1806 90 39 — — Chocolate and chocolate products EA maximum + AD S/Z 1806 90 50 — — Sugar confectionery and substitutes therefor made from sugar substitution products, containing cocoa EA maximum + AD S/Z 1806 90 60 — — Spreads containing cocoa EA maximum + AD S/Z 1806 90 70 — — Preparations containing cocoa for making beverages EA maximum + AD S/Z 1806 90 90 — — Other EA maximum + AD S/Z 1901 Malt extract; food preparations of flour, meal, starch or malt extract, not containing cocoa or containing less than 40 % by weight of cocoa on a totally defatted basis, not elsewhere specified or included; food preparations of goods of heading Nos 0401 to 0404, not containing cocoa powder or containing less than 5 % by weight of cocoa on a totally defatted basis, not elsewhere specified or included EA 1902 Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or not prepared: — Uncooked pasta, not stuffed or otherwise prepared: 1902 11 — — Containing eggs EA 1902 19 — — Other EA 1902 20 — Stuffed pasta, whether or not cooked or otherwise prepared: 1902 20 91 to 1902 20 99 — — Other EA 1902 30 — Other pasta EA 1902 40 — Couscous EA 1903 Tapioca and substitutes therefor prepared from starch, in the form of flakes, grains, pearls, siftings or in similar forms EA 1904 Prepared foods obtained by the swelling or roasting of cereals or cereals products (for example, corn flakes); cereals, other than maize (corn), in grain form or in the form of flakes or other worked grains (except flour and meal), pre-cooked, or otherwise prepared, not elsewhere specified or included EA 1905 Bread, pastry, cakes, biscuits and other baker's wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products: 1905 10 — Crispbread EA maximum 24 % + AD F/M 1905 20 — Gingerbread and the like EA 1905 30 — Sweet biscuits; waffles and wafers EA maximum 35 % + AD S/Z 1905 40 — Rusks, toasted bread and similar toasted products EA 1905 90 — Other: 1905 90 10 — — Matzos EA maximum 20 % + AD F/M 1905 90 20 — — Communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products EA 1905 90 — — Other: 1905 90 30 — — — Bread, not containing added honey, eggs, cheese or fruit, and containing by weight in the dry matter state not more than 5 % of sugar and not more than 5 % of fat EA 1905 90 40 — — — Waffles and wafers with a water content exceeding 10 % by weight EA maximum + AD F/M 1905 90 45 — — — Biscuits EA maximum + AD F/M 1905 90 55 — — — Extruded or expanded products, savoury or salted EA maximum + AD F/M — — — Other: 1905 90 60 — — — — With added sweetening matter EA maximum + AD S/Z 1905 90 90 — — — — Other EA maximum + AD F/M 2001 Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid: 2001 90 — Other 2001 90 30 — — Sweetcorn (Zea mays var. saccharata) EA 2004 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products from heading No 2006: 2004 10 — Potatoes: — — Other: 2004 10 91 — — — In the form of flour, meal or flakes EA 2004 90 — Other vegetables and mixtures of vegetables: 2004 90 10 — — Sweet corn (Zea mays var. saccharata) EA 2005 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products from heading No 2006: 2005 20 — Potatoes: 2005 20 10 — — In the form of flour, meal or flakes EA 2005 80 — Sweetcorn (Zea mays var. saccharata) EA 2008 Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included: — Other, including mixtures other than those of subheading No 2008 19 : 2008 99 — — Other: — — — Not containing added spirit: — — — — Not containing added sugar: 2008 99 85 — — — — — Maize (corn), other than sweetcorn (Zea mays var. saccharata) EA 2101 Extracts, essences and concentrates, of coffee, tea or maté and preparations with a basis of these products or with a basis of coffee, tea or maté; roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof: — Extracts, essences and concentrates, of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee: 2101 12 — — Preparations with a basis of these extracts, essences or concentrates of coffee: 2101 12 98 — — — Other EA 2101 20 — Extracts, essences and concentrates, of tea or maté, and preparations with a basis of these extracts, essences or concentrates or with a basis of tea or maté: — — Preparations: 2101 20 98 — — — Other EA 2101 30 — Roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof: — — Roasted chicory and other roasted coffee substitutes: 2101 30 19 — — — Other EA — — Extracts, essences and concentrates of roasted chicory and other roasted coffee substitutes: 2101 30 99 — — — Other EA 2102 Yeasts (active or inactive); other single-cell micro-organisms, dead (but not including vaccines of heading No 3002); prepared baking powders: 2102 10 — Active yeasts: 2102 10 31 to 2102 10 39 — — Baker's yeast EA 2102 20 — Inactive yeasts; other single-cell micro-organisms, dead: 2102 20 11 to 2102 20 19 — — Inactive yeasts Free 2103 Sauces and preparations therefor; mixed condiments and mixed seasonings; mustard flour and meal and prepared mustard: 2103 10 — Soya sauce Free 2103 20 — Tomato ketchup and other tomato sauces Free 2103 90 — Other Free 2104 Soups and broths and preparations therefor; homogenized composite food preparations: 2104 10 — Soups and broths and preparations therefor Free 2105 Ice cream and other edible ice, whether or not containing cocoa EA maximum + AD S/Z 2106 Food preparations not elsewhere specified or included: 2106 10 — Protein concentrates and textured protein substances: 2106 10 80 — — Other EA 2106 90 — Other 2106 90 10 — — Cheese fondues EA maximum ECU 25/100 kg/net — — Other: ex 2106 90 92 — — — Containing no milkfats, sucrose, isoglucose, glucose or starch or containing less than 1,5 % milkfat, 5 % sucrose or isoglucose, 5 % glucose or starch: — — — — Hydrolysates of proteins; autolysates of yeast Free 2106 90 98 — — — Other EA 2202 Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other non-alcoholic beverages, not including fruit or vegetable juices of heading No 2009: 2202 10 — Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured Free 2202 90 — Other: ex 2202 90 10 — — Not containing products of heading Nos 0401 to 0404 or fat obtained from products of heading Nos 0401 to 0404: — — — Containing sugar (sucrose or invert sugar) Free 2202 90 91 to 2202 90 99 — — Other EA 2203 Beer made from malt Free 2205 Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances Free 2208 Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol; spirits, liqueurs and other spirituous beverages; compound alcoholic preparations of a kind used for the manufacture of beverages: 2208 90 — Other: — — Other spirits and other spirituous beverages, in containers holding: — — — 2 1 or less: ex 2208 90 69 — — — — Other spirituous beverages: — — — — — Containing eggs or egg yolks and/or sugar (sucrose or invert sugar) ECU 1/% vol/hl +ECU 6/hl — — — More than 2 1: ex 2208 90 78 — — — — Other spirituous beverages: — — — — — Containing eggs or egg yolks and/or sugar (sucrose or invert sugar) ECU 1/% vol/hl 2905 Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives: — Other polyhydric alcohols: 2905 43 — — Mannitol EA 2905 44 — — D-glucitol (sorbitol) EA 2915 Saturated acyclic monocarboxylic acids and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives: — Formic acid, its salts and esters: ex 2915 13 — — Esters of formic acid: — — — Esters of mannitol and esters of sorbitol Free — Esters of acetic acid: 2915 39 — — Other: ex 2915 39 90 — — — Other: — — — Esters of mannitol and esters of sorbitol Free ex 2915 90 — Other: — — Esters of mannitol and esters of sorbitol 2916 Unsaturated acyclic monocarboxylic acids, cyclic monocarboxylic acids, their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives: — Unsaturated acyclic monocarboxylic acids, their anhydrides, halides, peroxides, peroxyacids and their derivatives: 2916 19 — — Other: ex 2916 19 80 — — — Other — — — — Esters of mannitol and esters of sorbitol Free 2917 Polycarboxylic acids, their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives: — Acyclic polycarboxylic acids, their anhydrides, halides, peroxides, peroxyacids and their derivatives: 2917 19 — — Other: ex 2917 19 90 — — — Other — — — — Itaconic acid, its salts and esters Free 2918 Carboxylic acids with additional oxygen function and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives: — Carboxylic acids with alcohol function but without other oxygen function, their anhydrides, halides, peroxides, peroxyacids and their derivatives: 2918 11 — — Lactic acid, its salts and esters Free 2918 14 — — Citric acid Free 2918 15 — — Salts and esters of citric acid Free 2918 19 — —Other: ex 2918 19 80 — — — Other: — — — — Glyceric acid, glycolic acid, saccharic acid, isosaccharic acid, heptasaccharic acid, their salts and esters Free 2932 Heterocyclic compounds with oxygen hetero-atom(s) only: — Compounds containing an unfused furan ring (whether or not hydrogenated) in the structure: ex 2932 19 — — Other: — — — Anhydrous mannitol and sorbitol compounds, excluding maltol and isomaltol Free 2932 99 — Other: ex 2932 99 70 — — Other cyclic acetals and internal hemiacetals, whether or not with other oxygen functions, and their halogenated, sulphonated, nitrated or nitrosated derivatives: — — — α-Methylglucoside Free ex 2932 99 90 — — Other: — — — Anhydrous mannitol and sorbitol compounds, excluding maltol and isomaltol Free 2940 Sugars, chemically pure, other than sucrose, lactose, maltose, glucose and fructose; sugar ethers and sugar esters, and their salts, other than products of heading Nos 2937, 2938 or 2939: 2940 00 90 — Other Free 2941 Antibiotics: 2941 10 — Penicillins and their derivatives with a penecillanic acid structure; salts thereof Free 3001 Glands and other organs for organo-therapeutic uses, dried, whether or not powdered; extracts of glands or other organs or of their secretions for organo-therapeutic uses; heparin and its salts; other human or animal substances prepared for therapeutic or prophylatic uses, not elsewhere specified or included: 3001 90 — Other: — — Other: 3001 90 91 — — — Heparin and its salts Free 3501 Casein, caseinates and other casein derivatives; casein glues: 3501 10 — Casein: 3501 10 10 — — For the manufacture of regenerated textile fibres (2) Free 3501 10 50 — — For industrial uses other than the manufacture of foodstuffs or fodder (2) Free 3501 10 90 — —Other Free 3501 90 — Other Free 3505 Dextrins and other modified starches (for example, pregelatinized or esterified starches); glues based on starches, or on dextrines or other modified starches: 3505 10 — Dextrins and other modified starches: 3505 10 10 — — Dextrins EA — — Other modified starches: 3505 10 50 — — — Starches, esterified or etherified Free 3505 10 90 — — — Other EA 3505 20 — Glues EA maximum 3506 Prepared glues and other prepared adhesives, not elsewhere specified or included; products suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of 1 kg: ex 3506 10 00 — Products suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of 1 kg: — — With a basis of sodium silicate emulsion or of resin emulsions Free — Other: ex 3506 99 00 — — Other: — — — With a basis of sodium silicate emulsion or of resin emulsion Free 3809 Finishing agents, dye carriers to accelerate the dyeing or fixing of dyestuffs and other products and preparations (for example, dressings and mordants), of a kind used in the textile, paper, leather or like industries, not elsewhere specified or included: 3809 10 — With a basis of amylaceous substances EA maximum — Other: ex 3809 91 — — Of a kind used in the textile or like industries: — — — Containing starch or products derived from starch Free ex 3809 92 — — Of a kind used in the paper or like industries: — — — Containing starch or products derived from starch Free ex 3809 93 — — Of a kind used in the leather or like industries: — — — Containing starch or products derived from starch Free 3823 Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols: — Industrial monocarboxylic fatty acids; acid oils from refining: 3823 13 — — Tall oil fatty acids Free 3824 Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included; residual products of the chemical or allied industries, not elsewhere specified or included: ex 3824 10 — Prepared binders for foundry moulds or cores: — — Based on synthetic resins Free 3824 60 — Sorbitol other than that of subheading No 2905 44 EA 3824 90 — Other: ex 3824 90 25 — — Pyrolignites (for example, of calcium); crude calcium tartrate; crude calcium citrate: — — — Crude calcium citrate Free — — Other: ex 3824 90 95 — — — Other: — — — — Products of sorbitol cracking Free 3911 Petroleum resins, coumarone-indene resins, polyterpenes, polysulphides, polysulphones and other products specified in note 3 to this chapter, not elsewhere specified or included, in primary forms: ex 3911 10 — Petroleum resins, coumarone, indene or coumarone-indene resins and polyterpenes: — — Adhesives with a basis of resin emulsions Free 3911 90 — Other: — — Condensation or rearrangement polymerization products whether or not chemically modified: ex 3911 90 19 — — — Adhesives with a basis of resin emulsions Free — — Other: ex 3911 90 99 — — — Adhesives with a basis of resin emulsions Free 3913 Natural polymers (for example, alginic acid) and modified natural polymers (for example, hardened proteins, chemical derivatives of natural rubber), not elsewhere specified or included, in primary forms: 3913 90 — Other: ex 3913 90 90 — — Other: — — — Dextran Free — — — Other, excluding hardened proteins Free (1) The amounts of the agricultural components (EA), which may be subject to a maximum duty, are set out in the Common Customs Tariff in the form of a specific amount or of a reference to Annex I of the Common Customs Tariff (Regulation (EEC) No 2658/87 of 23 July 1987 as amended). (2) Entry under this subheading is subject to conditions laid down in the relevant Community provisions.

▼M6

PROTOCOL 3

concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation

TABLE OF CONTENTS TITLE I GENERAL PROVISIONS Article 1 Definitions TITLE II DEFINITION OF THE CONCEPT OF ‘ORIGINATING PRODUCTS’ Article 2 General requirements Article 3 Cumulation in the Community Article 4 Cumulation in the Faroe Islands Article 5 Wholly obtained products Article 6 Sufficiently worked or processed products Article 7 Insufficient working or processing Article 8 Unit of qualification Article 9 Accessories, spare parts and tools Article 10 Sets Article 11 Neutral elements TITLE III TERRITORIAL REQUIREMENTS Article 12 Principle of territoriality Article 13 Direct transport Article 14 Exhibitions TITLE IV DRAWBACK OR EXEMPTION Article 15 Prohibition of drawback of, or exemption from, customs duties TITLE V PROOF OF ORIGIN Article 16 General requirements Article 17 Procedure for the issue of a movement certificate EUR.1 or EUR-MED Article 18 Movement certificates EUR.1 or EUR-MED issued retrospectively Article 19 Issue of a duplicate movement certificate EUR.1 or EUR-MED Article 20 Issue of movement certificates EUR.1 or EUR-MED on the basis of a proof of origin issued or made out previously Article 21 Accounting segregation Article 22 Conditions for making out an invoice declaration or an invoice declaration EUR-MED Article 23 Approved exporter Article 24 Validity of proof of origin Article 25 Submission of proof of origin Article 26 Importation by instalments Article 27 Exemptions from proof of origin Article 28 Supporting documents Article 29 Preservation of proof of origin and supporting documents Article 30 Discrepancies and formal errors Article 31 Amounts expressed in euro TITLE VI ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION Article 32 Mutual assistance Article 33 Verification of proofs of origin Article 34 Dispute settlement Article 35 Penalties Article 36 Free zones TITLE VII CEUTA AND MELILLA Article 37 Application of the Protocol Article 38 Special conditions TITLE VIII FINAL PROVISIONS Article 39 Amendments to the Protocol Article 40 Transitional provisions for goods in transit or storage Article 41 Suspension of the cumulation of origin List of Annexes Annex I: Introductory notes to the list in Annex II Annex II: List of working or processing required to be carried out on non-originating materials in order for the product manufactured to obtain originating status Annex IIIa: Specimens of movement certificate EUR.1 and application for a movement certificate EUR.1 Annex IIIb: Specimens of movement certificate EUR-MED and application for a movement certificate EUR-MED Annex IVa: Text of the invoice declaration Annex IVb: Text of the invoice declaration EUR-MED Joint Declarations Joint Declaration concerning the review and the revision of the management of Protocol 3 to the Agreement by the Faroe Islands Joint Declaration concerning the amendment of the Protocol in the framework of the system of diagonal cumulation resulting from Articles 3 and 4 of the Protocol on Origin

TITLE I

GENERAL PROVISIONS

Article 1

Definitions

For the purposes of this Protocol:

(a) ‘manufacture’ means any kind of working or processing including assembly or specific operations;

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

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

(d) ‘goods’ means both materials and products;

(e) ‘customs value’ means the value as determined in accordance with the 1994 Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade (WTO Agreement on customs valuation);

(f) ‘ex-works price’ means the price paid for the product ex works to the manufacturer in the Community or in the Faroe Islands in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used, minus any internal taxes which are, or may be, repaid when the product obtained is exported;

(g) ‘value of materials’ means the customs value at the time of importation of the non-originating materials used, or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in the Community or in the Faroe Islands;

(h) ‘value of originating materials’ means the value of such materials as defined in (g) applied mutatis mutandis;

(i) ‘value added’ shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 with which cumulation is applicable or, where the customs value is not known or cannot be ascertained, the first ascertainable price paid for the materials in the Community or in the Faroe Islands;

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

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

(l) ‘consignment’ means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice;

(m) ‘territories’ includes territorial waters.







TITLE II

DEFINITION OF THE CONCEPT OF ‘ORIGINATING PRODUCTS’

Article 2

General requirements

1. For the purpose of implementing the Agreement, the following products shall be considered as originating in the Community:

(a) products wholly obtained in the Community within the meaning of Article 5;

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

(c) goods originating in the European Economic Area (EEA) within the meaning of Protocol 4 to the Agreement on the European Economic Area.

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

(a) products wholly obtained in the Faroe Islands within the meaning of Article 5;

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

3. The provisions of paragraph 1(c) shall apply only provided a free trade agreement is applicable between, on the one hand, the Faroe Islands and, on the other hand, the EEA EFTA States (Iceland, Norway and Liechtenstein).

Article 3

Cumulation in the Community

1. Without prejudice to the provisions of Article 2(1), products shall be considered as originating in the Community if they are obtained there, incorporating materials originating in Bulgaria, Switzerland (including Liechtenstein) ( 1 ), Iceland, Norway, Romania, Turkey or in the Community, provided that the working or processing carried out in the Community goes beyond the operations referred to in Article 7. It shall not be necessary for such materials to have undergone sufficient working or processing.

2. Without prejudice to the provisions of Article 2(1), products shall be considered as originating in the Community if they are obtained there, incorporating materials originating in the Faroe Islands or in any country which is a participant in the Euro-Mediterranean partnership, based on the Barcelona Declaration adopted at the Euro-Mediterranean Conference held on 27 and 28 November 1995, other than Turkey ( 2 ), provided that the working or processing carried out in the Community goes beyond the operations referred to in Article 7. It shall not be necessary for such materials to have undergone sufficient working or processing.

3. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraphs 1 and 2. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Community.

4. Products, originating in one of the countries referred to in paragraphs 1 and 2, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries.

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

(a) a preferential trade agreement in accordance with Article XXIV of the General Agreement on Tariffs and Trade (GATT) is applicable between the countries involved in the acquisition of the originating status and the country of destination;

(b) materials and products have acquired originating status by the application of rules of origin identical to those given in this Protocol; and

(c) notices indicating the fulfilment of the necessary requirements to apply cumulation have been published in the Official Journal of the European Union (C series) and in the Faroe Islands according to its own procedures.

The cumulation provided for in this Article shall apply from the date indicated in the notice published in the Official Journal of the European Union (C series).

The Community shall provide the Faroe Islands, through the Commission of the European Communities, with details of the Agreements, including their dates of entry into force, and their corresponding rules of origin, which are applied with the other countries referred to in paragraphs 1 and 2.

Article 4

Cumulation in the Faroe Islands

1. Without prejudice to the provisions of Article 2(2), products shall be considered as originating in the Faroe Islands if they are obtained there, incorporating materials originating in Bulgaria, Switzerland (including Liechtenstein) (2) , Iceland, Norway, Romania, Turkey or in the Community, provided that the working or processing carried out in the Faroe Islands goes beyond the operations referred to in Article 7. It shall not be necessary for such materials to have undergone sufficient working or processing.

2. Without prejudice to the provisions of Article 2(2), products shall be considered as originating in the Faroe Islands if they are obtained there, incorporating materials originating in the Faroe Islands or in any country which is a participant in the Euro-Mediterranean partnership, based on the Barcelona Declaration adopted at the Euro-Mediterranean Conference held on 27 and 28 November 1995, other than Turkey (2) , provided that the working or processing carried out in the Faroe Islands goes beyond the operations referred to in Article 7. It shall not be necessary for such materials to have undergone sufficient working or processing.

3. Where the working or processing carried out in the Faroe Islands does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Faroe Islands only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraphs 1 and 2. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Faroe Islands.

4. Products originating in one of the countries referred to in paragraphs 1 and 2 which do not undergo any working or processing in the Faroe Islands shall retain their origin if exported into one of these countries.

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

(a) a preferential trade agreement in accordance with Article XXIV of the General Agreement on Tariffs and Trade (GATT) is applicable between the countries involved in the acquisition of the originating status and the country of destination;

(b) materials and products have acquired originating status by the application of rules of origin identical to those given in this Protocol; and

(c) notices indicating the fulfilment of the necessary requirements to apply cumulation have been published in the Official Journal of the European Union (C series) and in the Faroe Islands according to its own procedures.

The cumulation provided for in this Article shall apply from the date indicated in the notice published in the Official Journal of the European Union (C series).

The Faroe Islands shall provide the Community, through the Commission of the European Communities with details of the Agreements, including their dates of entry into force, and their corresponding rules of origin, which are applied with the other countries referred to in paragraphs 1 and 2.

Article 5

Wholly obtained products

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

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

(b) vegetable products harvested there;

(c) live animals born and raised there;

(d) products from live animals raised there;

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

(f) products of sea fishing and other products taken from the sea outside the territorial waters of the Community or of the Faroe Islands by their vessels;

(g) products made aboard their factory ships exclusively from products referred to in (f);

(h) used articles collected there fit only for the recovery of raw materials, including used tyres fit only for retreading or for use as waste;

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

(j) products extracted from marine soil or subsoil outside their territorial waters provided that they have sole rights to work that soil or subsoil;

(k) goods produced there exclusively from the products specified in (a) to (j).

2. The terms ‘their vessels’ and ‘their factory ships’ in paragraph 1(f) and (g) shall apply only to vessels and factory ships:

(a) which are registered or recorded in a Member State of the Community or in the Faroe Islands;

(b) which sail under the flag of a Member State of the Community or of the Faroe Islands;

(c) which are owned to an extent of at least 50 % by nationals of a Member State of the Community or of the Faroe Islands, or by a company with its head office in one of these States, of which the manager or managers, Chairman of the Board of Directors or the Supervisory Board, and the majority of the members of such boards are nationals of a Member State of the Community or of the Faroe Islands and of which, in addition, in the case of partnerships or limited companies, at least half the capital belongs to those States or to public bodies or nationals of the said States;

(d) of which the master and officers are nationals of a Member State of the Community or of the Faroe Islands; and

(e) of which at least 75 % of the crew are nationals of a Member State of the Community or of the Faroe Islands.

Article 6

Sufficiently worked or processed products

1. For the purposes of Article 2, products which are not wholly obtained shall be considered to be sufficiently worked or processed when the conditions set out in the list in Annex II are fulfilled.

The conditions referred to above indicate, for all products covered by the Agreement, the working or processing which must be carried out on non-originating materials used in manufacturing and apply only in relation to such materials. It follows that if a product which has acquired originating status by fulfilling the conditions set out in the list is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture.

2. Notwithstanding paragraph 1, non-originating materials which, according to the conditions set out in the list in Annex II, shall not be used in the manufacture of a product may nevertheless be used, provided that:

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

(b) any of the percentages given in the list for the maximum value of non-originating materials are not exceeded by virtue of this paragraph.

This paragraph shall not apply to products falling within Chapters 50 to 63 of the Harmonised System.

3. Paragraphs 1 and 2 shall apply subject to the provisions of Article 7.

Article 7

Insufficient working or processing

1. Without prejudice to paragraph 2, the following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 6 are satisfied:

(a) 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;

(e) simple painting and polishing operations;

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

(g) operations to colour sugar or form sugar lumps;

(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;

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

(o) a combination of two or more operations specified in (a) to (n);

(p) slaughter of animals.

2. All operations carried out either in the Community or in the Faroe Islands on a given product shall be considered together when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of paragraph 1.

Article 8

Unit of qualification

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

It follows that:

(a) when a product composed of a group or assembly of articles is classified under the terms of the Harmonised System in a single heading, the whole constitutes the unit of qualification;

(b) when a consignment consists of a number of identical products classified under the same heading of the Harmonised System, each product must be taken individually when applying the provisions of this Protocol.

2. Where, under General Rule 5 of the Harmonised System, packaging is included with the product for classification purposes, it shall be included for the purposes of determining origin.

Article 9

Accessories, spare parts and tools

Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle, which are part of the normal equipment and included in the price thereof or which are not separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question.

Article 10

Sets

Sets, as defined in General Rule 3 of the Harmonised System, shall be regarded as originating when all component products are originating. Nevertheless, when a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating, provided that the value of the non-originating products does not exceed 15 % of the ex-works price of the set.

Article 11

Neutral elements

In order to determine whether a product is an originating product, it shall not be necessary to determine the origin of the following which might be used in its manufacture:

(a) energy and fuel;

(b) plant and equipment;

(c) machines and tools;

(d) goods which neither enter into the final composition of the product nor are intended to do so.







TITLE III

TERRITORIAL REQUIREMENTS

Article 12

Principle of territoriality

1. Except as provided for in Article 2(1)(c), Articles 3 and 4 and paragraph 3 of this Article, the conditions for acquiring originating status set out in Title II must be fulfilled without interruption in the Community or in the Faroe Islands.

2. Except as provided for in Articles 3 and 4, where originating goods exported from the Community or from the Faroe Islands to another country return, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that:

(a) the returning goods are the same as those exported; and

(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

3. The acquisition of originating status in accordance with the conditions set out in Title II shall not be affected by working or processing done outside the Community or the Faroe Islands on materials exported from the Community or from the Faroe Islands and subsequently re-imported there, provided:

(a) the said materials are wholly obtained in the Community or in the Faroe Islands or have undergone working or processing beyond the operations referred to in Article 7 prior to being exported; and

(b) it can be demonstrated to the satisfaction of the customs authorities that: (i) the re-imported goods have been obtained by working or processing the exported materials; and (ii) the total added value acquired outside the Community or the Faroe Islands by applying the provisions of this Article does not exceed 10 % of the ex-works price of the end product for which originating status is claimed.

4. For the purposes of paragraph 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside the Community or the Faroe Islands. However, where, in the list in Annex II, a rule setting a maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end product, the total value of the non-originating materials incorporated in the territory of the party concerned, taken together with the total added value acquired outside the Community or the Faroe Islands by applying the provisions of this Article, shall not exceed the stated percentage.

5. For the purposes of applying the provisions of paragraphs 3 and 4, ‘total added value’ shall be taken to mean all costs arising outside the Community or the Faroe Islands, including the value of the materials incorporated there.

6. The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the conditions set out in the list in Annex II or which can be considered sufficiently worked or processed only if the general tolerance fixed in Article 6(2) is applied.

7. The provisions of paragraphs 3 and 4 shall not apply to products of Chapters 50 to 63 of the Harmonised System.

8. Any working or processing of the kind covered by this Article and done outside the Community or the Faroe Islands shall be done under the outward processing arrangements, or similar arrangements.

Article 13

Direct transport

1. The preferential treatment provided for under the Agreement applies only to products, satisfying the requirements of this Protocol, which are transported directly between the Community and the Faroe Islands or through the territories of the other countries referred to in Articles 3 and 4 with which cumulation is applicable. However, products constituting one single consignment may be transported through other territories with, should the occasion arise, trans-shipment or temporary warehousing in such territories, provided that they remain under the surveillance of the customs authorities in the country of transit or warehousing and do not undergo operations other than unloading, reloading or any operation designed to preserve them in good condition.

Originating products may be transported by pipeline across territory other than that of the Community or the Faroe Islands.

2. Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied to the customs authorities of the importing country by the production of:

(a) a single transport document covering the passage from the exporting country through the country of transit; or

(b) a certificate issued by the customs authorities of the country of transit: (i) giving an exact description of the products; (ii) stating the dates of unloading and reloading of the products and, where applicable, the names of the ships, or the other means of transport used; and (iii) certifying the conditions under which the products remained in the transit country; or

(c) failing these, any substantiating documents.

Article 14

Exhibitions

1. Originating products, sent for exhibition in a country other than those referred to in Articles 3 and 4 with which cumulation is applicable and sold after the exhibition for importation in the Community or in the Faroe Islands shall benefit on importation from the provisions of the Agreement provided it is shown to the satisfaction of the customs authorities that:

(a) an exporter has consigned these products from the Community or from the Faroe Islands to the country in which the exhibition is held and has exhibited them there;

(b) the products have been sold or otherwise disposed of by that exporter to a person in the Community or in the Faroe Islands;

(c) the products have been consigned during the exhibition or immediately thereafter in the state in which they were sent for exhibition; and

(d) the products have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition.

2. A proof of origin shall be issued or made out in accordance with the provisions of Title V and submitted to the customs authorities of the importing country in the normal manner. The name and address of the exhibition shall be indicated thereon. Where necessary, additional documentary evidence of the conditions under which the products have been exhibited may be required.

3. Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organised for private purposes in shops or business premises with a view to the sale of foreign products, and during which the products remain under customs control.







TITLE IV

DRAWBACK OR EXEMPTION

Article 15

Prohibition of drawback of, or exemption from, customs duties

1.

(a) Non-originating materials used in the manufacture of products originating in the Community, in the Faroe Islands or in one of the other countries referred to in Articles 3 and 4 for which a proof of origin is issued or made out in accordance with the provisions of Title V shall not be subject in the Community or in the Faroe Islands to drawback of, or exemption from, customs duties of whatever kind.

(b) Products falling within Chapter 3 and headings 1604 and 1605 of the Harmonised System and originating in the Community as provided for in Article 2(1)(c), for which a proof of origin is issued or made out in accordance with the provisions of Title V shall not be subject in the Community to drawback of, or exemption from, customs duties of whatever kind.

2. The prohibition in paragraph 1 shall apply to any arrangement for refund, remission or non-payment, partial or complete, of customs duties or charges having an equivalent effect, applicable in the Community or in the Faroe Islands to materials used in the manufacture and to products covered by paragraph 1(b), where such refund, remission or non-payment applies, expressly or in effect, when products obtained from the said materials are exported and not when they are retained for home use there.

3. The exporter of products covered by a proof of origin shall be prepared to submit at any time, upon request from the customs authorities, all appropriate documents proving that no drawback has been obtained in respect of the non-originating materials used in the manufacture of the products concerned and that all customs duties or charges having equivalent effect applicable to such materials have actually been paid.

4. The provisions of paragraphs 1 to 3 shall also apply in respect of packaging within the meaning of Article 8(2), accessories, spare parts and tools within the meaning of Article 9 and products in a set within the meaning of Article 10 when such items are non-originating.

5. The provisions of paragraphs 1 to 4 shall apply only in respect of materials which are of the kind to which the Agreement applies. Furthermore, they shall not preclude the application of an export refund system for agricultural products, applicable upon export in accordance with the provisions of the Agreement.







TITLE V

PROOF OF ORIGIN

Article 16

General requirements

1. Products originating in the Community shall, on importation into the Faroe Islands, and products originating in the Faroe Islands shall, on importation into the Community, benefit from the provisions of the Agreement upon submission of one of the following proofs of origin:

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

(b) a movement certificate EUR-MED, a specimen of which appears in Annex IIIb;

(c) in the cases specified in Article 22(1), a declaration, subsequently referred to as the ‘invoice declaration’ or the ‘invoice declaration EUR-MED’, 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 texts of the invoice declarations appear in Annexes IVa and b.

2. Notwithstanding paragraph 1, originating products within the meaning of this Protocol shall, in the cases specified in Article 27, benefit from the provisions of the Agreement without it being necessary to submit any of the proofs of origin referred to in paragraph 1.

Article 17

Procedure for the issue of a movement certificate EUR.1 or EUR-MED

1. A movement certificate EUR.1 or EUR-MED shall be issued by the customs authorities of the exporting country on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorised representative.

2. For this purpose, the exporter or his authorised representative shall fill in both the movement certificate EUR.1 or EUR-MED and the application form, specimens of which appear in the Annexes IIIa and b. These forms shall be completed in one of the languages in which the Agreement is drawn up and in accordance with the provisions of the national law of the exporting country. If the forms are handwritten, they shall be completed in ink in printed characters. The description of the products shall be given in the box reserved for this purpose without leaving any blank lines. Where the box is not completely filled, a horizontal line shall 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 or EUR-MED shall be prepared to submit at any time, at the request of the customs authorities of the exporting country where the movement certificate EUR.1 or EUR-MED is issued, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Protocol.

4. Without prejudice to paragraph 5, a movement certificate EUR.1 shall be issued by the customs authorities of a Member State of the Community or of the Faroe Islands in the following cases:

— if the products concerned can be considered as products originating in the Community or in the Faroe Islands without application of cumulation with materials originating in one of the other countries referred to in Articles 3 and 4, and fulfil the other requirements of this Protocol;

— if the products concerned can be considered as products originating in one of the countries referred to in Articles 3 and 4 with which cumulation is applicable, without application of cumulation with materials originating in one of the countries referred to in Articles 3 and 4 and fulfil the other requirements of this Protocol, provided a certificate EUR-MED or an invoice declaration EUR-MED has been issued in the country of origin.

5. A movement certificate EUR-MED shall be issued by the customs authorities of a Member State of the Community or of the Faroe Islands, if the products concerned can be considered as products originating in the Community, in the Faroe Islands or in one of the other countries referred to in Articles 3 and 4 with which cumulation is applicable, fulfil the requirements of this Protocol and:

— cumulation was applied with materials originating in one of the countries referred to in Articles 3 and 4, or

— the products may be used as materials in the context of cumulation for the manufacture of products for export to one of the countries referred to in Articles 3 and 4, or

— the products may be re-exported from the country of destina