Decision No 1/2003 of the EC-Cyprus Association Council

of 24 June 2003

derogating from the provisions concerning the definition of the concept of "originating products" laid down in the Agreement establishing an Association between the European Economic Community and the Republic of Cyprus

(2003/594/EC)

THE EC-CYPRUS ASSOCIATION COUNCIL,

Having regard to the Agreement establishing an Association between the European Economic Community and the Republic of Cyprus(1), signed in Brussels on 19 December 1972, hereinafter referred to as "the Agreement",

Having regard to the Protocol concerning the definition of the concept of "originating products" and methods of administrative cooperation annexed to the Additional Protocol to the Agreement(2), and in particular Article 25 thereof,

Whereas:

(1) It was agreed, in the joint Declaration by the Contracting Parties concerning the rules of origin, attached to the Final Act of the Protocol laying down the conditions and procedures for the implementation of the second stage of the Agreement establishing an Association between the European Economic Community and the Republic of Cyprus and adapting certain provisions of the Agreement(3), which was signed in Luxembourg on 19 October 1987 and entered into force on 1 January 1988, that the Community and the EC-Cyprus Association Council would, once the said Protocol had entered into force, take a decision on additional Cypriot requests for derogations from the rules of origin applicable to products under heading Nos 6102 and 6103 of the Common Customs Tariff, introduced as from 1 January 1988 for heading Nos 6204, 6205 and 6206 of the Combined Nomenclature (CN).

(2) A derogation from the relevant provisions concerning the definition of the concept of "originating products" for the goods in question was granted to Cyprus from 1989 until 2003.

(3) On 11 February 2003, Cyprus submitted a request for a prolongation of the derogation, but for only one textile product, i.e. men's and boys' shirts of man-made fibres (CN code 6205 30 00 ).

(4) The need for a derogation remains. It is consequently desirable to grant the derogation for a period of two years or until Cyprus' accession to the Community if it takes place before the date of expiry of this Decision,

HAS DECIDED AS FOLLOWS:

Article 1

By way of derogation from Article 3(1) of the Protocol concerning the definition of the concept of "originating products" and methods of administrative cooperation, products listed in Annex I to this Decision and manufactured in Cyprus shall, within the limits of the quantity indicated and under the conditions set out below, be considered as originating products for the purposes of the Agreement.

Article 2

For the purposes of Article 1, products listed in Annex I shall be considered as originating in Cyprus provided that, as a result of working or processing carried out in Cyprus, the products obtained are classified under a tariff heading other than that covering each of the materials worked or processed.

Notwithstanding the first paragraph, the manufacture of garments from parts of garments falling within CN code 6217 90 00 shall not be considered as sufficient working or processing, unless the parts have been obtained in the Community from fabric cut to size and are covered by a supplier's declaration made out on an invoice or other accompanying document, of which a specimen is given in Annex III.

Article 3

Materials not originating in Cyprus or in the Community and used for the manufacture of the products referred to in Article 1 shall not be eligible for any form of drawback, exemption from customs duties or charges having equivalent effect to customs duties, with the exception of any amounts exceeding the corresponding duties of the Common Customs Tariff.

Article 4

The quantity referred to in Annex I shall be managed by the Commission, which shall take all administrative actions it deems advisable for their efficient management.

Where an importer presents, in a Member State, a declaration of entry for free circulation, including an application for the benefit of this Decision, the Member State shall, if the declaration has been accepted by the customs authorities, notify the Commission of its wish to draw the amount corresponding to its requirements.

Applications to draw, showing the date of acceptance of declarations, shall be transmitted to the Commission without delay.

Withdrawals shall be granted by the Commission in order of date of acceptance of declarations of entry for free circulation by the Member States' customs authorities, provided that the available balance permits.

If a Member State fails to use a withdrawal it shall return it, as soon as possible, to the appropriate quota.

If requests exceed the available balance of a given quota, quantities shall be allocated on a pro rata basis. The Commission shall inform the Member States of withdrawal on the quotas.

Each Member State shall ensure that importers have continuous and equal access to the amounts available as long as the balance permits.

Article 5

The customs authorities of Cyprus shall take the necessary steps to carry out quantitative checks on exports of the product referred to in Article 1. To that end, all the certificates they issue pursuant to this Decision shall bear a reference to it. The competent authorities of Cyprus shall forward to the Commission every three months a statement of the quantities in respect of which movement certificates EUR.1 have been issued pursuant to this Decision and the serial numbers of those certificates. They shall also send the Commission monthly statements of Cypriot imports and exports of fabrics listed in Annex II.

Article 6

Movement certificates EUR 1 issued pursuant to this Decision shall be endorsed:

"DEROGATION - DECISION No 1/2003

DEDUCTION OF COMMUNITY QUOTA"

in the box marked "remarks", in one of the languages in which the Agreement is drawn up.

Article 7

Cyprus and the Member States of the European Community shall take the measures necessary on their part to implement this Decision.

This Decision shall enter into force on the day on which it is adopted.

This Decision shall apply for a period of two years starting on the day of its adoption, or until Cyprus' accession to the Community if it takes place before the date of expiry of this Decision.

Done at Brussels, 24 June 2003.

For the Association Council

The President

G. Iacovou

(1) OJ L 133, 21.5.1973, p. 2.

(2) OJ L 339, 28.12.1977, p. 2.

(3) OJ L 393, 31.12.1987, p. 2.

ANNEX I

LIST REFERRED TO IN ARTICLE 1

(product benefiting from the derogation)

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ANNEX II

LIST REFERRED TO IN ARTICLE 5

(products subject to statistical notification)

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ANNEX III

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