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Article 365

1 . From 1 March 1986 , the Portuguese Republic shall apply the generalized preference system for products other than those listed in Annex II to the EEC Treaty . However , as regards the products listed in Annex XXXI , the Portuguese Republic shall progressively align itself by 31 December 1992 on the rates of the generalized preference system starting from the basic duties referred to in Article 189 ( 2 ) . The timetable of these alignments shall be the same as that referred to in Article 197 .

2 . ( a ) As far as the products listed in Annex II to the Treaty are concerned , the preferential rates provided for or calculated shall be applied progressively to the duties actually levied by the Portuguese Republic with regard to third countries , following the general procedures referred to under ( b ) or the special procedures referred to in Articles 289 and 295 .

( b ) The Portuguese Republic shall apply , as from 1 March 1986 , a duty which reduces the variation between the rate of the basic duty and the rate of the preferential duty in accordance with the following timetable :

- on 1 March 1986 , the variation shall be reduced to 90,9 % of the original variation ,

- on 1 January 1987 , the variation shall be reduced to 81,8 % of the original variation ,

- on 1 January 1988 , the variation shall be reduced to 72,7 % of the original variation ,

- on 1 January 1989 , the variation shall be reduced to 63,6 % of the original variation ,

- on 1 January 1990 , the variation shall be reduced to 54,5 % of the original variation ,

- on 1 January 1991 , the variation shall be reduced to 45,4 % of the original variation ,

- on 1 January 1992 , the variation shall be reduced to 36,3 % of the original variation ,

- on 1 January 1993 , the variation shall be reduced to 27,2 % of the original variation ,

- on 1 January 1994 , the variation shall be reduced to 18,1 % of the original variation ,

- on 1 January 1995 , the variation shall be reduced to 9,0 % of the original variation .

The Portuguese Republic shall apply the preferential rates in full as from 1 January 1996 .

( c ) By way of derogation from point ( b ) , for fisheries products falling within heading Nos 03.01 , 03.02 , 03.03 , 16.04 and 16.05 and subheadings 05.15 A and 23.01 B of the Common Customs Tariff , the Portuguese Republic shall apply , as from 1 March 1986 , a duty reducing the variation between the rate of the basic duty and the rate of the preferential duty according to the following system :

- on 1 March 1986 , the variation shall be reduced to 87,5 % of the original variation ,

- on 1 January 1987 , the variation shall be reduced to 75,0 % of the original variation ,

- on 1 January 1988 , the variation shall be reduced to 62,5 % of the original variation ,

- on 1 January 1989 , the variation shall be reduced to 50,0 % of the original variation ,

- on 1 January 1990 , the variation shall be reduced to 37,5 % of the original variation ,

- on 1 January 1991 , the variation shall be reduced to 25,0 % of the original variation ,

- on 1 January 1992 , the variation shall be reduced to 12,5 % of the original variation .

The Portuguese Republic shall apply the preferential rates in full as from 1 January 1993 .