Decision No 5/2002 of the European Union-Mexico Joint Council

of 24 December 2002

relating to Annex III to Decision No 2/2000 of the European Union-Mexico Joint Council of 23 March 2000, concerning the definition of the concept of "originating products" and methods of administrative cooperation

(2003/98/EC)

THE JOINT COUNCIL,

Having regard to the Economic Partnership, Political Coordination and Cooperation Agreement between the European Community and its Member States, of the one part, and the United Mexican States, of the other part, signed in Brussels on 8 December 1997 (hereinafter referred to as "the Agreement"), and in particular Articles 5 and 47 thereof,

Whereas:

(1) Annex III to Decision No 2/2000 of the EU-Mexico Joint Council of 23 March 2000, concerning the definition of the concept of "originating products" and methods of administrative cooperation sets out the rules of origin for the products originating in the territory of the Parties to the Agreement.

(2) To ensure the correct and harmonious operation of these rules, it is necessary to adapt Annex III in order to include the amendments to the Harmonised Commodity Description and Coding System ("Harmonised System") which took effect on 1 January 2002.

(3) The sole purpose of the adaptation contained in this Decision is to establish consistency between the Appendices and Joint Declaration VI, on the one hand, and the Parties' tariff laws and regulations, on the other hand, and cannot therefore be considered to constitute a substantial change to Decision No 2/2000.

(4) To ensure a smooth transition between the existing rules and the new rules as defined by this Decision, it appears desirable to set up a mechanism that, upon request of one of the Parties, would enable under certain conditions the Joint Committee to restore, where appropriate, the rules previously applicable,

HAS DECIDED AS FOLLOWS:

Article 1

1. For the purposes of benefiting from the special rules of origin applied within the limits of the quotas provided for in Appendix II and in Notes 9 and 12.1 of Appendix II(a) of Annex III to Decision No 2/2000, either box No 7 (Remarks) of the movement certificate EUR. 1 or the invoice declaration must include the phrase contained in Annex I to this Decision for the relevant tariff heading, in any of the languages listed in Article 59 of the Agreement.

2. The European Commission and the Secretaría de Economía shall regularly inform each other as to the quantities of products drawn from these quotas for rules of origin.

Article 2

1. Note 7.4 to Appendix I, Appendix II and Note 4 to Appendix II(a) of Annex III to Decision No 2/2000, as well as Joint Declaration VI, shall be replaced by the text contained in Annex II to this Decision.

2. In accordance with the new editorial standard of the Harmonised System, the expression "heading No" or "heading Nos" shall read "heading" or "headings" respectively in the English version of Annex III to Decision 2/2000.

Article 3

Where, following the amendments made to the Harmonised System, the changes to the rules of origin as introduced by this Decision alter the substance of any rule existing previously, and where it appears that such alteration results in a situation prejudicial to the interest of the sectors concerned, then, if one of the Parties so requests in the period up to three years after the date on which this Decision enters into force, the Joint Committee shall examine as a matter of urgency the need to restore the substance of the rule concerned as it was before this Decision. At all events, the Joint Committee shall decide to restore, or not to restore, the substance of the rule concerned within a period of six months of the request being made to it by either of the Parties to the Agreement.

Article 4

This Decision shall enter into force on the day of its adoption.

Done at Brussels, 24 December 2002.

For the Joint Council

The President

P. S. MØLLER

ANNEX I

(Phrase referred to in Article 1)

Section A

For tariff headings 5208 to 5212, 5407, 5408, 5512 to 5516, 5801, 5806 and 5811 at importation into Mexico:

English version

"Meets the specific rule of origin as set out in appendix II"

Spanish version

"Cumple la norma de origen específica con arreglo a lo establecido en el apéndice II"

Danish version

"Opfylder den specifikke oprindelsesregel i tillæg II"

German version

"Spezifische Ursprungsregel der Anlage II erfüllt"

Greek version

"Ανταποκρίνεται στον ειδικό κανόνα καταγωγής που καθορίζεται στο προσάρτημα ΙΙ"

French version

"Satisfait la règle d'origine particulière prévue à l'Appendice II"

Italian version

"Conforme alla norma di origine specifica di cui all'appendice II"

Dutch version

"Voldoet aan de specifieke oorsprongsregel van aanhangsel II"

Portuguese version

"Em conformidade com a regra de origem específica de acordo com o previsto no Apêndice II"

Finnish version

"Täyttävät lisäyksessä II annetun erityisen alkuperäsäännön"

Swedish version

"Uppfyller kraven i den särskilda ursprungsregeln i tillägg II"

Section B

For tariff headings 6402, 6403 and 6404 at importation into Mexico:

English version

"Meets the specific rule of origin as set out in Appendix II(a), note 9"

Spanish version

"Cumple la norma de origen específica con arreglo a lo establecido en el apéndice II (a), nota 9"

Danish version

"Opfylder den specifikke oprindelsesregel i tillæg II(a), note 9"

German version

"Spezifische Ursprungsregel der Anlage II(a), Bemerkung 9, erfüllt"

Greek version

"Ανταποκρίνεται στον ειδικό κανόνα καταγωγής που καθορίζεται στο προσάρτημα II(α), σημείωση 9"

French version

"Satisfait la règle d'origine particulière prévue à l'Appendice II(a), note 9"

Italian version

"Conforme alla norma di origine specifica di cui all'appendice II(a), nota 9"

Dutch version

"Voldoet aan de specifieke oorsprongsregel van aanhangsel II A, aantekening 9"

Portuguese version

"Em conformidade com a regra de origem específica de acordo com o previsto na nota 9 do Apêndice II-A"

Finnish version

"Täyttävät lisäyksessä II a olevassa 9 huomautuksessa annetun erityisen alkuperäsäännön"

Swedish version

"Uppfyller kraven i den särskilda ursprungsregeln i tillägg II A, anmärkning 9"

Section C

For tariff headings ex 8701 (road tractors for semi-trailers), 8702 and 8704 at importation into the Community

English version

"Meets the specific rule of origin as set out in Appendix II(a), note 12.1"

Spanish version

"Cumple la norma de origen específica con arreglo a lo establecido en el apéndice II (a), nota 12.1"

Danish version

"Opfylder den specifikke oprindelsesregel i tillæg II(a), note 12.1"

German version

"Spezifische Ursprungsregel der Anlage II(a), Bemerkung 12.1, erfüllt"

Greek version

"Ανταποκρίνεται στον ειδικό κανόνα καταγωγής που καθορίζεται στο προσάρτημα II(α), σημείωση 12.1"

French version

"Satisfait la règle d'origine particulière prévue à l'appendice II(a), note 12.1"

Italian version

"Conforme alla norma di origine specifica di cui all'appendice II(a), nota 12.1"

Dutch version

"Voldoet aan de specifieke oorsprongsregel van aanhangsel II A, aantekening 12.1"

Portuguese version

"Em conformidade com a regra de origem específica de acordo com o previsto na nota 12.1 do Apêndice II-A"

Finnish version

"Täyttävät lisäyksessä II a olevassa 12.1 huomautuksessa annetun erityisen alkuperäsäännön"

Swedish version

"Uppfyller kraven i den särskilda ursprungsregeln i tillägg II A, anmärkning 12.1"

ANNEX II

(Referred to in Article 2)

Appendix I

INTRODUCTORY NOTES TO THE LIST IN APPENDICES II AND II(a)

Note 7:

(...)

7.4. Redistillation by a very thorough fractionation process means distillation (other than topping) by a continuous or batch process employed in industrial installations using distillates of subheadings 2710 11 to 2710 99, 2711 11, 2711 12 to 2711 19, 2711 21 and 2711 29 (other than propane of a purity of 99 % or more) to obtain:

1. isolated high-purity hydrocarbons (90 % or more in the case of olefins and 95 % or more in the case of other hydrocarbons), mixtures of isomers having the same organic composition being regarded as isolated hydrocarbons.

Only those processes by means of which at least three different products are obtained are admissible, but this restriction does not apply in any instance where the process consists in the separation of isomers. Insofar as this concerns xylenes, ethylbenzene is included with xylene isomers;

2. Products of subheadings 2707 10 to 2707 30, 2707 50 and 2710 11 to 2710 99:

(a) with no overlapping of the final boiling point of one fraction and the initial boiling point of the succeeding fraction and a difference of not more than 60 °C between the temperatures at which 5 % and 90 % by the volume (including losses) distil by the ASTM D 86-67 method (re-approved 1972);

(b) with an overlapping of the final boiling point of one fraction and the initial boiling point of the succeeding fraction and a difference of not more than 30 °C between the temperatures at which 5 % and 90 % by volume (including losses) distil by the ASTM D 86-67 method (re-approved 1972).

Appendix II

LIST OF WORKING OR PROCESSING REQUIRED TO BE CARRIED OUT ON NON-ORIGINATING MATERIALS FOR THE PRODUCT MANUFACTURED TO OBTAIN ORIGINATING STATUS

The products mentioned in the list may not all be covered by the Decision. It is therefore necessary to consult the other parts of the Decision

>TABLE>

Appendix II(a)

LIST OF WORKING OR PROCESSING REQUIRED TO BE CARRIED OUT ON NON-ORIGINATING MATERIALS FOR THE PRODUCT MANUFACTURED TO OBTAIN ORIGINATING STATUS

The products mentioned in the list may not all be covered by the Decision. It is therefore necessary to consult the other parts of the Decision

Note 4:

Until 31 December 2002, the following rule shall apply for the products described below instead of the rule set out in Appendix II:

>TABLE>

Joint Declaration VI

Regarding Note 4 of Appendix II(a) to Annex III for headings 4104 and 4107

1. The Joint Committee shall extend beyond 31 December 2002 the rule established in Note 4 of Appendix II(a), if the multilateral/WTO negotiations continue beyond that date until these negotiations have finished. At that time, in the light of the results of these negotiations, the Joint Committee shall determine the rule of origin to be applied.

2. Within the context of the multilateral negotiations, both Parties shall seek to establish disciplines for the elimination of export taxes or restrictions that operate to increase the exports of, or the protection afforded to, domestic industries, such as leather.