PROTOCOL 3 concerning the definition of the concept of "originating products" and methods of administrative cooperation

TITLE I Definition of the concept of "originating products"

Article 1

For the purpose of implementing the Agreement, the following products, on condition that they were transported directly within the meaning of Article 5, shall be considered as:

1. Products originating in Yugoslavia:

(a) products wholly obtained there;

(b) products manufactured in Yugoslavia incorporating materials other than those of (a) above, providing such materials have undergone sufficient working or processing there within the meaning of Article 3 (1).

However this condition shall not apply to materials originating in the Community under the terms of paragraph 2 below when they undergo further working or processing in Yugoslavia providing this processing exceeds the insufficient working or processing listed in Article 3 (3);

2. Products originating in the Community:

(a) products wholly obtained there;

(b) products manufactured in the Community incorporating materials other than those of (a) above, providing such materials have undergone sufficient working or processing there within the meaning of Article 3 (1).

However this condition shall not apply to materials originating in Yugoslavia under the terms of paragraph 1 above when they undergo further working or processing in the Community;

3. The products set out in List C of Annex IV shall be temporarily excluded from the scope of this Protocol. Nevertheless, the arrangements regarding administrative cooperation shall apply mutatis mutandis to these products.

Article 2

The following shall be considered as "wholly obtained" either in Yugoslavia or in the Community, within the meaning of Article 1 (1) (a) and (2) (a):

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

(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 by their vessels;

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

(h) used articles collected there fit only for the recovery of raw materials;

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

(j) goods produced there exclusively from products specified in subparagraphs (a) to (i).

Article 3

1. For the purpose of implementing the provisions of Article 1 (1) (b) and (2) (b), the following shall be considered as sufficient working or processing:

(a) working or processing as a result of which the goods obtained receive a classification under a heading other than that covering each of the products worked or processed, except, however, working or processing specified in List A in Annex II, where the special provisions of that list apply;

(b) working or processing specified in List B in Annex III.

"Sections", "Chapters" and "headings" shall mean the Sections, Chapters and headings in the Customs Cooperation Council nomenclature for the classification of goods in customs tariffs.

2. When, for a given product obtained, a percentage rule limits Lists A and B the value of the materials and parts which can be used, the total value of these materials and parts, whether or not they have changed heading in the course of the working, processing or assembly within the limits and under the conditions laid down in each of those two lists, may not exceed, in relation to the value of the product obtained, the value corresponding either to the common rate, if the rates are identical in both lists, or to the higher of the two if they are different.

3. For the purpose of implementing Article 1 (1) (b) and (2) (b), the following shall always be considered as insufficient working or processing to confer the status of originating product, whether or not there is a change of heading:

(a) operations to ensure the preservation of merchandise in good condition during transport and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations);

(b) simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making up of sets of articles), washing, painting, cutting up;

(c)

(i) changes of packaging and breaking up and assembly of consignments;

(ii) simple placing in bottles, flasks, bags, cases, boxes, fixing on cards or boards, etc., and all other simple packaging operations;

(d) affixing marks, labels or other like distinguishing signs on products or their packaging;

(e) simple mixing of products, whether or not of different kinds, where one or more components of the mixture do not meet the conditions laid down in this Protocol to enable them to be considered as originating;

(f) simple assembly of parts of articles to constitute a complete article;

(g) a combination of two or more operations specified in subparagraphs (a) to (f);

(h) slaughter of animals.

Article 4

Where the Lists A and B referred to in Article 3 provide that goods obtained in Yugoslavia or in the Community shall be considered as originating therein only if the value of the products worked or processed does not exceed a given percentage of the value of the goods obtained, the values to be taken into consideration for such a percentage shall be:

- on the one hand,

as regards products whose importation can be proved : their customs value at the time of importation,

as regards products of undetermined origin : the earliest ascertainable price paid for such products in the territory of the Contracting Party where manufacture takes place,

- on the other hand,

the ex-works price of the goods obtained, less internal taxes refunded or refundable on exportation.

Article 5

1. For the purpose of implementing Article 1, originating products whose transport is effected without entering into territory other than that of the Contracting Parties are considered as transported directly from Yugoslavia to the Community or from the Community to Yugoslavia. However, goods originating in Yugoslavia or in the Community and constituting one single consignment which is not split up may be transported through territory other than that of the Contracting Parties with, should the occasion arise, transhipment or temporary warehousing in such territory, provided that the crossing of the latter territory is justified for geographical reasons and that the goods have remained under the surveillance of the customs authorities in the country of transit or warehousing, that they have not entered into commerce of such countries nor been delivered for home use there and have not undergone operations other than unloading, reloading or any operation designed to maintain them in good condition.

2. Evidence that the conditions referred to in paragraph 1 have been fulfilled shall be supplied to the responsible customs authorities in the Community or in Yugoslavia by the production of:

(a) a through bill of lading issued in the exporting country covering the passage through the country of transit ; or

(b) a certificate issued by the customs authorities of the country of transit:

- giving an exact description of the goods,

- stating the dates of unloading and reloading of the goods or of their embarkation, identifying the ships used,

- certifying the conditions under which the goods remained in the transit country;

(c) or failing these, any substantiating documents.

TITLE II Arrangements for administrative cooperation

Article 6

1. Evidence of originating status, within the meaning of this Protocol, of products is given by a movement certificate EUR. 1 of which a specimen is given in Annex V to this Protocol.

However, the evidence of originating status, within the meaning of this Protocol, of products which form the subject of postal consignments (including parcels), provided that they consist only of originating products and that the value does not exceed 1 420 European units of account per consignment, may be given by a form EUR. 2, of which a specimen is given in Annex VI to this Protocol.

Up to and including 30 April 1981 the European unit of account to be used in any given national currency of a Member State of the Community shall be equivalent in that national currency of the European unit of account as at 30 June 1978. For each successive period of two years it shall be the equivalent in that national currency of the European unit of account as at the first working day in October in the year immediately preceding that two-year period.

Revised amounts replacing the amounts expressed in EUA mentioned above and in Article 17 (2), may be introduced by the Community at the beginning of any successive two-year period if necessary and shall be notified by the Community to the Customs Cooperation Committee not later than one month before they shall come into force. These amounts shall be, in any event, such as to ensure that the value of the limits as expressed in the currency of any Member State shall not decline.

If the goods are invoiced in the currency of another Community Member State the importing State shall recognize the amount notified by the Member State concerned.

2. Without prejudice to Article 3 (3), where, at the request of the person declaring the goods at the customs, a dismantled or non-assembled article falling within Chapter 84 or 85 of the Customs Cooperation Council Nomenclature is imported by instalments on the conditions laid down by the competent authorities, it shall be considered to be a single article and a movement certificate may be submitted for the whole article upon importation of the first instalment.

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

4. Sets in the sense of General Rule 3 of the Customs Cooperation Council Nomenclature shall be regarded as originating when all component articles are originating products. Nevertheless, when a set is composed of originating and non-originating articles, the set as a whole shall be regarded as originating provided that the value of the non-originating articles does not exceed 15 % of the total value of the set.

Article 7

1. A movement certificate EUR. 1 shall be issued by the customs authorities of the exporting State when the goods to which it relates are exported. It shall be made available to the exporter as soon as actual exportation has been effected or ensured.

2. In exceptional circumstances a movement certificate EUR. 1 may also be issued after exportation of the goods to which it relates if it was not issued at the time of exportation because of errors or involuntary omissions or special circumstances. In this case, the certificate shall bear a special reference to the conditions in which it was issued.

3. A movement certificate EUR. 1 shall be issued only on application having been made in writing by the exporter. Such application shall be made on a form, of which a specimen is given in Annex V to this Protocol, which shall be completed in accordance with this Protocol.

4. A movement certificate EUR. 1 may be issued only where it can serve as the documentary evidence required for the purpose of implementing the Agreement.

5. Applications for movement certificates must be preserved for at least two years by the customs authorities of the exporting country.

Article 8

1. The movement certificate EUR. 1 shall be issued by the customs authorities of the exporting State, if the goods can be considered "originating products" within the meaning of this Protocol.

2. For the purpose of verifying whether the conditions stated in paragraph 1 have been met, the customs authorities shall have the right to call for any documentary evidence or to carry out any check which they consider appropriate.

3. It shall be the responsibility of the customs authorities of the exporting State to ensure that the forms referred to in Article 9 are duly completed. In particular, they shall check whether the space reserved for the description of the goods has been completed in such a manner as to exclude all possibility of fraudulent additions. To this end, the description of the goods must be indicated without leaving any blank lines. Where the space is not completely filled a horizontal line must be drawn below the last line of the description, the empty space being crossed through.

4. The date of issue of the movement certificate must be indicated in the part of the certificate reserved for the customs authorities.

Article 9

Movement certificates EUR. 1 shall be made out on the form of which a specimen is given in Annex V to this Protocol. This form shall be printed in one or more of the languages in which the Agreement is drawn up. Certificates shall be made out in one of these languages and in accordance with the provisions of the domestic law of the exporting State ; if they are handwritten, they shall be completed in ink and in capital letters.

Each certificate shall measure 210 × 297 mm, a tolerance of up to plus 8 mm or minus 5 mm in the length may be allowed. The paper used must be white writing paper, sized, not containing mechanical pulp and weighing not less than 25 g/m<SUP>2</SUP>. It shall have a printed green guilloche pattern background making any falsification by mechanical or chemical means apparent to the eye.

The exporting States may reserve the right to print the certificates themselves or may have them printed by approved printers. In the latter case, each certificate must include a reference to such approval. Each certificate must bear the name and address of the printer or a mark by which the printer can be identified. It shall also bear a serial number, either printed or not, by which it can be identified.

Article 10

1. Under the responsibility of the exporter, he or his authorized representative shall request the issue of a movement certificate EUR. 1.

2. The exporter or his representative shall submit with his request any appropriate supporting document proving that the goods to be exported are such as to qualifiy for the issue of a movement certificate EUR. 1.

Article 11

A movement certificate EUR. 1 must be submitted, within five months of the date of issue by the customs authorities of the exporting State, to the customs authorities of the importing State where the goods are entered.

Article 12

Movement certificates EUR. 1 shall be submitted to customs authorities in the importing State, in accordance with the procedures laid down by that State. The said authorities may require a translation of a certificate. They may also require the import declaration to be accompanied by a statement from the importer to the effect that the goods meet the conditions required for the implementation of the Agreement.

Article 13

1. A movement certificate EUR. 1 which is submitted to the customs authorities of the importing State after the final date for presentation specified in Article 11 may be accepted for the purpose of applying preferential treatment, where the failure to submit the certificate by the final date set is due to reasons of force majeure or exceptional circumstances.

2. In other cases of belated presentation, the customs authorities of the importing State may accept the certificates where the goods have been submitted to them before the said final date.

Article 14

The discovery of slight discrepancies between the statements made in the movement certificate EUR. 1 and those made in the documents submitted to the customs office for the purpose of carrying out the formalities for importing the goods shall not ipso facto render the certificate null and void if it is duly established that the certificate does correspond to the goods submitted.

Article 15

It shall always be possible to replace one or more movement certificates EUR. 1 by one or more other movement certificates EUR. 1 provided that this is done at the customs office where the goods are located.

Article 16

Form EUR. 2, a specimen of which is given in Annex VI to this Protocol shall be completed by the exporter or, under his responsibility, by his authorized representative. It shall be made out in one of the languages in which the Agreement is drawn up and in accordance with the provisions of the domestic law of the exporting State. If it is handwritten it must be completed in ink and in capital letters. If the goods contained in the consignment have already been subject to verification in the exporting country by reference to the definition of the concept of "originating products" the exporter may refer to this check in the "remarks" box of form EUR. 2.

Form EUR. 2 shall be 210 × 148 mm. A tolerance of up to plus 8 mm or minus 5 mm in the length may be allowed. The paper used must be white writing paper, sized, not containing mechanical pulp and weighing not less than 64 g/m<SUP>2</SUP>.

The exporting States may reserve the right to print the forms themselves or may have them printed by printers they have approved. In the latter case each form must include a reference to such approval. In addition, the form must bear the distinctive sign attributed to the approved printer and a serial number, either printed or not, by which it can be identified.

A form EUR. 2 shall be completed for each postal consignment.

These provisions do not exempt exporters from complying with any other formalities required by customs or postal regulations.

Article 17

1. Goods sent as small packages to private persons or forming part of travellers' personal luggage shall be admitted as originating products without requiring the production of a movement certificate EUR. 1 or the completion of a form EUR. 2, provided that such goods are not imported by way of trade and have been declared as meeting the conditions required for the application of these provisions, and where there is no doubt as to the veracity of such declaration.

2. Importations which are occasional and consist solely of goods for the personal use of the recipients or travellers or their families shall not be considered as importations by way of trade if it is evident from the nature and quantity of the goods that no commercial purpose is in view. Furthermore, the total value of these goods must not exceed 90 EUA in the case of small packages or 285 EUA in the case of the contents of travellers' personal luggage.

Article 18

1. Goods sent from the Community or from Yugoslavia for exhibition in another country and sold after the exhibition for importation into Yugoslavia or into the Community shall benefit on importation from the provisions of the Agreement on condition that the goods meet the requirements of this Protocol entitling them to be recognized as originating in the Community or in Yugoslavia and provided that it is shown to the satisfaction of the customs authorities that:

(a) an exporter has consigned these goods from the territory of the Community or from Yugoslavia to the country in which the exhibition is held and has exhibited them there;

(b) the goods have been sold or otherwise disposed of by that exporter to someone in Yugoslavia or in the Community;

(c) the goods have been consigned during the exhibition or immediately thereafter to Yugoslavia or to the Community in the state in which they were sent for exhibition;

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

2. A movement certificate EUR. 1 must be produced to the customs authorities in the normal manner. The name and address of the exhibition must be indicated thereon. Where necessary, additional documentary evidence of the nature of the goods and the conditions under which they 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 organized for private purposes in shops or business premises with a view to the sale of foreign goods, and during which the goods remain under customs control.

Article 19

1. When a certificate is issued within the meaning of Article 7 (2) after the goods to which it relates have actually been exported, the exporter must in the application referred to in Article 7 (3):

- indicate the place and date of exportation of the goods to which the certificate relates,

- certify that no movement certificate EUR. 1 was issued at the time of exportation of the goods in question, and state the reasons.

2. The customs authorities may issue a movement certificate EUR. 1 retrospectively only after verifying that the information supplied in the exporter's application agrees with that in the corresponding file.

Certificates issued retrospectively must be endorsed with one of the following phrases : "NACHTRÄGLICH AUSGESTELLT", "DÉLIVRÉ A POSTERIORI", "RILASCIATO A POSTERIORI", "AFGEGEVEN A POSTERIORI", "ISSUED RETROSPECTIVELY", "UDSTEDT EFTERFØLGENDE", "IZDATO NAKNADNO".

Article 20

In the event of the theft, loss or destruction of a movement certificate EUR. 1, the exporter may apply to the customs authorities which issued it for a duplicate made out on the basis of the export documents in their possession. The duplicate issued in this way must be endorsed with one of the following words : "DUPLIKAT", "DUPLICATA", "DUPLICATO", "DUPLICAAT", "DUPLICATE".

Article 21

Yugoslavia and the Community shall take all necessary steps to ensure that goods trade under cover of a movement certificate EUR. 1, and which in the course of transport use a free zone situated in their territory, are not replaced by other goods and that they do not undergo handling other than normal operations designed to prevent their deterioration.

Article 22

In order to ensure the proper application of this Title, Yugoslavia and the Community shall assist each other, through their respective customs administrations, in checking the authenticity of movement certificates EUR. 1 and the accuracy of the information concerning the actual origin of the products concerned and the declarations by exporters on forms EUR. 2.

Article 23

Penalties shall be imposed on any person who, in order to enable goods to be accepted as eligible for preferential treatment, draws up or causes to be drawn up, either a document which contains incorrect particulars for the purpose of obtaining a movement certificate EUR. 1 or a form EUR. 2 containing incorrect particulars.

Article 24

1. Subsequent verifications of movement certificates EUR. 1 and of forms EUR. 2 shall be carried out at random or whenever the customs authorities of the importing State have reasonable doubt as to the authenticity of the document or the accuracy of the information regarding the true origin of the goods in question.

2. For the purpose of implementing paragraph 1, the customs authorities of the importing State shall return the movement certificate EUR. 1 or the form EUR. 2, or a photocopy of such certificate or form, to the customs authorities of the exporting State, giving, where appropriate, the reasons of form or substance for an inquiry. The invoice, if it has been submitted, or a copy thereof shall be attached to the form EUR. 2 and the customs authorities shall forward any information that has been obtained suggesting that the particulars given on the said certificates or the said form are inaccurate.

If the customs authorities of the importing State decide to suspend execution of the Agreement while awaiting the results of the verification, they shall offer to release the goods to the importer subject to any precautionary measures judged necessary.

3. The customs authorities of the importing State shall be informed of the results of the verification as quickly as possible. These results must be such as to make it possible to determine whether the disputed movement certificate EUR. 1 or form EUR. 2 applies to the goods actually exported, and whether these goods can, in fact, qualify for the application of the preferential arrangements.

When such disputes cannot be settled between the customs authorities of the importing State and those of the exporting State, or when they raise a question as to the interpretation of this Protocol, they shall be submitted to the Customs Cooperation Committee.

In all cases the settlement of disputes between the importer and the customs authorities of the importing State shall be under the legislation of the said State.

Article 25

The Cooperation Council may decide to amend the provisions of this Protocol.

Article 26

1. A Customs Cooperation Committee shall be set up, charged with carrying out administrative cooperation with a view to the correct and uniform application of this Protocol and with carrying out any other task in the customs field which may be entrusted to it.

2. The Committee shall be composed, on the one hand, of experts of the Member States and of officials of the departments of the Commission of the European Communities who are responsible for customs questions and, on the other hand, of experts nominated by Yugoslavia.

Article 27

The Community and Yugoslavia shall take any measures necessary to enable movement certificates EUR. 1 as well as forms EUR. 2 to be submitted, in accordance with Articles 11 and 12 of this Protocol, from the day on which the Agreement enters into force.

Article 28

The Community and Yugoslavia shall each take the steps necessary to implement this Protocol.

Article 29

The Contracting Parties agree to take the necessary steps to avoid deflection of trade when this Protocol is applied. The Cooperation Council shall examine, at the request of either Party, and decide, within a reasonable period, on the adoption of appropriate measures in the context of this Protocol.

Article 30

The Annexes to this Protocol shall form an integral part thereof.

Article 31

The provisions of the Agreement may be applied to goods which comply with the provisions of Tide I and which on the date of entry into force of the Agreement are either in transit or are in the Community or in Yugoslavia in temporary storage in bonded warehouses or in free zones, subject to the submission to the customs authorities of the importing State, within four months of that date, of a certificate EUR. 1 endorsed retrospectively by the competent authorities of the exporting State together with the documents showing that the goods have been transported directly.

Article 32

The endorsements referred to in Articles 19 and 20 shall be inserted in the "remarks" box of the certificate.

ANNEX I EXPLANATORY NOTES

Note 1 - Re Articles 1 and 2

The terms "the Community" or "Yugoslavia" shall also cover the territorial waters of the Member States of the Community or of Yugoslavia respectively.

Vessels operating on the high seas, including factory ships, on which fish caught is worked or processed, shall be considered as part of the territory of the State to which they belong provided that they satisfy the conditions set out in Explanatory Note 5.

Note 2 - Re Article 1

In order to determine whether goods originate in the Community or in Yugoslavia it shall not be necessary to establish whether the power and fuel, plant and equipment, and machines and tools used to obtain such goods originate in third countries or not.

Note 3 - Re Articles 3 (1) and (2) and 4

The percentage rule constitutes, where the product obtained appears in List A, a criterion additional to that of change of heading for any non-originating product used.

Note 4 - Re Article 1

Packing shall be considered as forming a whole with the goods contained therein. This provision, however, shall not apply to packing which is not of the normal type for the article packed and which has intrinsic utilization value and is of a durable nature, apart from its function as packing.

Note 5 - Re Article 2 (f)

The terms "their vessels" shall apply only to vessels:

- which are registered or recorded in a Member State or in Yugoslavia,

- which sail under the flag of a Member State or of Yugoslavia,

- which, as concerns the Member States, are owned to an extent of at least 50 % by nationals of the Member States or by a company with its head office in a Member State, of which the manager, managers, chairman of the board of directors or of the supervisory board, and the majority of the members of such board, are nationals of the Member States and of which, in addition in the case of partnerships or limited companies, at least 50 % of the capital belongs to the Member States or to public bodies or nationals of the Member States,

- which, as concerns Yugoslavia, are owned to an extent of at least 51 % by nationals of Yugoslavia or by organizations of associated labour the head offices of which are situated in Yugoslavia and the manager, managers and members of whose administrative body are nationals of Yugoslavia and of which, in addition, where investment of capital by foreigners in Yugoslav organizations of associated labour is concerned, at least 51 % of the capital is owned by nationals of Yugoslavia or by Yugoslav organizations of associated labour,

- of which the captain and officers are all nationals of the Member States or of Yugoslavia,

- of which at least 75 % of the crew are nationals of the Member States or of Yugoslavia.

Note 6 - Re Article 4

"Ex-works price" shall mean the price paid to the manufacturer in whose undertaking the last working or processing is carried out, provided the price includes the value of all the products used in manufacture.

"Customs value" shall be understood as meaning the customs value laid down in the Convention concerning the valuation of goods for customs purposes, signed in Brussels on 15 December 1950.

ANNEX II LIST A List of working or processing operations which result in a change of tariff heading without conferring the status of originating products on the products undergoing such operations, or conferring this status only subject to certain conditions

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ANNEX III LIST B List of working or processing operations which do not result in a change of tariff heading, but which do confer the status of originating products on the products undergoing such operations

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ANNEX IV LIST C List of products excluded from the scope of this Protocol

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ANNEX V

MOVEMENT CERTIFICATE

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APPLICATION FOR A MOVEMENT CERTIFICATE

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ANNEX VI

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FINAL ACT

The plenipotentiaries of:

His Majesty the King of the Belgians,

Her Majesty the Queen of Denmark,

The President of the Federal Republic of Germany,

The President of the French Republic,

The President of Ireland,

The President of the Italian Republic,

His Royal Highness the Grand Duke of Luxembourg,

Her Majesty the Queen of the Netherlands,

Her Majesty the Queen of the United Kingdom of Great Britain and Northern Ireland,

and of the Council of the European Communities,

of the one part, and

of the President of the Socialist Federal Republic of Yugoslavia,

of the other part,

meeting at Belgrade on the second day of April one thousand nine hundred and eighty for the purpose of signing the Cooperation Agreement between the European Economic Community and the Socialist Federal Republic of Yugoslavia,

have, on signing these Agreements,

- adopted the following joint declarations by the Contracting Parties:

1. Joint declaration on Protocol 1 and Articles 21, 22 and 23

2. Joint declaration on the Community arrangements applicable to imports of young male bovine animals intended for fattening, originating in and coming from Yugoslavia

3. Joint declaration concerning the zone established by the Agreements signed at Osimo

4. Joint declaration on Article 42 of the Agreement

5. Joint declaration on Protocol 3

6. Declaration of intent by the Contracting Parties

7. Joint declaration concerning cooperation and contacts between the European Parliament and the representatives of the Assembly of the SFRY

8. Joint declaration on the presentation of the Agreement to GATT by the Community

9. Declaration on the interpretation of the term "Contracting Parties" as used in the Agreement

- taken note of the following declarations:

1. Declaration by Yugoslavia on Article 24

2. Declaration by Yugoslavia concerning certain agricultural products

3. Declaration by the Community on the Community arrangement applicable to imports of young male bovine animals intended for fattening, originating in and coming from Yugoslavia

4. Declaration by the Community on the regional application of certain provisions of the Agreement

5. Declaration by the Community on the European unit of account referred to in Article 2 of Protocol 2

6. Declaration by the Community on Article 29 of Protocol 3

7. Declaration by the Community on the generalized tariff preferences system

8. Declaration by the representative of the Federal Republic of Germany on the application of the Agreement to Berlin

and taken note of the following:

- exchange of letters on the working and processing of certain textile articles,

- exchange of letters on Yugoslav labour employed in the Community.

The declarations and exchanges of letters listed above are annexed to this Final Act.

The plenipotentiaries have agreed that the declarations and exchanges of letters shall be subjected, in the same manner as the Cooperation Agreement, to any procedures that may be necessary to ensure their validity.

Udfærdiget i Beograd, den anden april nitten hundrede og firs.

Geschehen zu Belgrad am zweiten April neunzehnhundertachtzig.

Done at Belgrade on the second day of April in the year one thousand nine hundred and eighty.

Fait à Belgrade, le deux avril mil neuf cent quatre-vingt.

Fatto a Belgrado, addì due aprile millenovecentottanta.

Gedaan te Belgrado, de tweede april negentienhonderd tachtig.

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Joint declaration on Protocol 1 and Articles 21, 22 and 23

The Community and Yugoslavia agree that, should the date of entry into force of the Agreement not coincide with the beginning of the calendar year, the ceilings referred to in Protocol 1 and the Community tariff quotas referred to in Articles 21, 22 and 23 will be applied pro rata temporis.

Joint declaration on the Community arrangements applicable to imports of young male bovine animals intended for fattening, originating in and coming from Yugoslavia

The Community and Yugoslavia agree that the suspension at 30 % of the total levy shall apply to a maximum number of head of young male bovine animals intended for fattening to be fixed annually by the Council of the European Communities in accordance with Council Regulation (EEC) No 805/68 of 27 June 1968.

The Community and Yugoslavia agree in drawing up the estimate to follow the cooperation procedure set out below:

1. Commission staff will collect information supplied by the Community Member States on their respective needs as regards animals for fattening.

On the basis of this information and their own forecasts, they will make an overall estimate of Community needs.

2. This estimate will be communicated to the competent Yugoslav authorities.

3. This will be followed as soon as possible by meetings between the competent Yugoslav authorities and Commission staff. The objectives of these meetings will be as follows:

- to have an exchange of views on the whole situation of the beef market in the Community and the forecasts for production and consumption;

- to enable both sides to analyze the data serving to estimate Community needs in respect of live animals for fattening;

- to have an exchange of information on Yugoslav's export opportunities.

4. Following these meetings, the Commission will produce a draft estimate for transmission to the Council taking into account all the elements to emerge during the discussions which can be quantified on as realistic a basis as possible.

The draft estimate given to the Council will be accompanied by a document reflecting the substance of the views expressed by the participants about Community needs and their export opportunities as regards the products in question.

5. The estimate should be drawn up in such a way as to ensure regular supplies for the Community market and permit an increase in imports in proportion to the increase in Community needs, taking into account the foreseeable expansion of the market.

In the light of these considerations, it is expected that the annual level of imports of animals for fattening under the estimate will show a tendency to rise over a period of several years as Community needs increase.

Joint declaration concerning the zone established by the Agreements signed at Osimo

Recognizing the importance of the development of the free zone established by the Agreements signed at Osimo on 10 November 1975, the Contracting Parties reaffirm their intention to devote the greatest possible attention to the application of the provisions of the Agreement which relate to the development of the said zone.

To that end, they consider it indispensable that, in addition to the particular need to develop cooperation schemes designed to encourage investment in the free zone, trade incentives should be introduced to the full extent compatible with the Agreement.

Accordingly, they are agreed that products manufactured in the zone shall be accorded the most favourable and stable import arrangements possible. For this reason they consider it necessary to exempt such products from any measures they may adopt under Article 20 or 29 or Protocol 1. Given the objectives to be attained, if tariff ceilings are introduced, the Cooperation Council will have to accord special treatment to products which have obtained originating status in the zone, and hence set such ceilings at a level which ensures that the products in question actually benefit under the special arrangements adopted, without compromising the aim of avoiding market disruption.

In addition, in connection with the application of Article 20 or 29 of the Agreement, the Contracting Parties shall endeavour to determine conditions which will encourage the marketing of products manufactured in the zone.

Joint declaration on Article 42 of the Agreement

The Contracting Parties agree that the Cooperation Council should lay down as soon as possible whatever procedures may be necessary to establish the conditions under which the products referred to in Article 42 obtain originating status in the zone created by the Agreements signed at Osimo, taking into account inter alia the development of the said zone.

Joint declaration on Protocol 3

With regard to Yugoslavia, the term "customs authorities" used in Protocol 3 shall also cover public authorities in Yugoslavia which are entitled to issue, endorse and verify movement certificates EUR. 1 and, where appropriate, verify forms EUR. 2.

Declaration of intent by the Contracting Parties

1. Both parties stipulate that the application of the Agreement entails their undertaking to encourage, wherever possible and in line with the level of development of their respective economies, favourable consideration of their mutual trade, economic and financial interests.

2. They have agreed to lay before the Cooperation Council each year for review the measures taken by both sides pursuant to paragraph 1 and provisions relating to the special arrangements embodied in the Agreement.

Joint declaration concerning cooperation and contacts between the European Parliament and the representatives of the Assembly of the SFRY

The Contracting Parties have agreed to contribute to the continuation of the cooperation and contacts established between the European Parliament and the representatives of the Assembly of the SFRY.

Joint declaration on the representation of the Agreement to GATT by the Community

The Contracting Parties to the Agreement will consult when the provisions of the Agreement that relate to trade are presented and examined under GATT.

Declaration on the interpretation of the term "Contracting Parties" as used in the Agreement

The European Economic Community and its Member States on the one hand, and the Socialist Federal Republic of Yugoslavia on the other agree to interpret in the Agreement to the effect that the expression "Contracting Parties" appearing therein means on the one hand the Community and the Member States, or either the Member States or the Community alone, and on the other the Socialist Federal Republic of Yugoslavia. The meaning to be attributed to this expression in each case is to be deduced from the relevant provisions of the Agreement and from the corresponding provisions of the Treaty establishing the Community.

Declaration by Yugoslavia on Article 24

Yugoslavia undertakes to ensure that the level of its exports of products defined in Annex C to the Agreement shall in no case exceed the volume indicated in Article 24 (2) (e), in the market situation referred to therein.

Declaration by Yugoslavia concerning certain agricultural products

Bearing in mind the importance of its agricultural exports to the Community market and the unsatisfactory trend of those exports, Yugoslavia has emphasized its interest in fresh and preserved fruit and vegetables, preserved pigmeat, sheepmeat, wine and tobacco. It will lay this matter before the Cooperation Council in order to seek appropriate solutions in conformity with the aims of the Agreement.

Declaration by the Community on the Community arrangement applicable to imports of young male bovine animals intended for fattening, originating in and coming from Yugoslavia

The Community undertakes, for the duration of the Agreement and in respect of a quantity to be determined in accordance with the procedure agreed in the relevant joint declaration, to limit to 30 % of the total levy the amount of the levy applicable to imports of young male bovine animals intended for fattening, of a live weight per head of 300 kg or less, falling within subheading 01.02 A II ex b), originating in and coming from Yugoslavia.

Declaration by the Community on the regional application of certain provisions of the Agreement

The Community declares that the application of any measures it may take under Articles 35 and 36 of the Agreement, in accordance with the procedure and arrangements set out in Articles 37 and 38, and under Article 40 may be limited to one of its regions by virtue of Community rules.

Declaration by the Community on the European unit of account referred to in Article 2 of Protocol 2

The unit of account used to express the amounts specified in Article 2 of Protocol 2 is defined as the sum of the following amounts in the currencies of the Member States of the Community:

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The value of the European unit of account in any given currency is equal to the equivalent in that currency of the sum of the amounts of currency referred to in the first paragraph. It is calculated by the Commission using daily market exchange rates.

The daily values of the European unit of account in the various national currencies are made available every day and are published periodically in the Official Journal of the European Communities.

Declaration by the Community on Article 29 of Protocol 3

In the interests of avoiding, wherever possible, distortions between the arrangements it applies to its trading partners, and with reference to Article 29 of Protocol 3, the Community reserves the right during the lifetime of the Agreement to submit for examination by the Cooperation Council the possibility of introducing measures to exclude, in respect of worked products, the refund of customs duties or the grant of exemption from customs duties in any form whatsoever.

Declaration by the Community on the generalized tariff preferences system

1. The Community declares that the Agreement shall not affect the inclusion of Yugoslavia in the list of beneficiary countries under the Community's scheme of generalized tariff preferences.

2. Paragraph 1 will apply in accordance with the relevant provisions of the Agreement.

Declaration by the representative of the Federal Republic of Germany on the application of the Agreement to Berlin

The Agreement shall also apply to Land Berlin provided that no statement to the contrary by the Government of the Federal Republic of Germany is addressed to the other Contracting Parties within three months of the entry into force of the Agreement.

EXCHANGE OF LETTERS on the working and processing of certain textile articles

Sir,

I have the honour to draw your attention to the following:

The Community reserves the right to adopt provisions relating to working and processing operations on textile products where such operations may be carried out only subject to authorization ; such provisions will replace those currently in force in certain Member States of the Community.

At that time the Community will endeavour to maintain the trade flows established with Yugoslavia hitherto.

I should be grateful if you would acknowledge receipt of this letter.

Please accept, Sir, the assurance of my highest consideration.

Head of the Delegation of the European Economic Community

Sir,

In your letter of today's date you informed me as follows:

"I have the honour to draw your attention to the following:

The Community reserves the right to adopt provisions relating to working and processing operations on textile products where such operations may be carried out only subject to authorization ; such provisions will replace those currently in force in certain Member States of the Community.

At that time the Community will endeavour to maintain the trade flows established with Yugoslavia hitherto.

I should be grateful if you would acknowledge receipt of this letter."

I have the honour to acknowledge receipt of your letter.

Please accept, Sir, the assurance of my highest consideration.

Head of the Delegation of the Socialist Federal Republic of Yugoslavia

EXCHANGE OF LETTERS on Yugoslav labour employed in the Community

Sir,

I have the honour to inform you on behalf of the Member States of the Community that the latter are ready to hold exchanges of views, in the context of talks to be arranged for that purpose, on Yugoslav labour employed in the Community.

The purpose of these exchanges of views would be to examine the possibilities of making progress towards the attainment of equality of treatment for Community and non-Community workers and the members of their families in respect of living and working conditions, having regard to the Community provisions in force.

Such exchanges of views, which would not be concerned with matters covered by the Agreement, would deal in particular with social and cultural questions, inter alia such action as might be taken jointly with the Socialist Federal Republic of Yugoslavia to promote the teaching of the language and culture of the country of origin and safeguard the maintenance of links with that culture.

I should be grateful if you would acknowledge receipt of this letter and indicate at the same time that Yugoslavia intends to take part in such action, chiefly in respect of the necessary human, financial and material resources.

Please accept, Sir, the assurance of my highest consideration.

Head of the Delegation of the European Economic Community

Sir,

In your letter of today's date, you informed me as follows:

"I have the honour to inform you on behalf of the Member States of the Community that the latter are ready to hold exchanges of views in the context of talks to be arranged for that purpose, on Yugoslav labour employed in the Community.

The purpose of these exchanges of views would be to examine the possibilities of making progress towards the attainment of equality of treatment for Community and non-Community workers and the members of their families in respect of living and working conditions, having regard to the Community provisions in force.

Such exchanges of views, which would not be concerned with matters covered by the Agreement, would deal in particular with social and cultural questions, inter alia such action as might be taken jointly with the Socialist Federal Republic of Yugoslavia to promote the teaching of the language and culture of the country of origin and safeguard the maintenance of links with that culture.

I should be grateful if you would acknowledge receipt of this letter and indicate at the same time that Yugoslavia intends to take part in such action, chiefly in respect of the necessary human, financial and material resources."

I have the honour to acknowledge receipt of your letter, and to indicate at the same time that Yugoslavia intends to take part in such action, chiefly in respect of the necessary human, financial and material resources.

Please accept, Sir, the assurance of my highest consideration.

Head of the Delegation of the Socialist Federal Republic of Yugoslavia