Proposal for a COUNCIL AND COMMISSION DECISION Council and Commission Decision on the conclusion of the Protocol to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union

(presented by the Commission)

EXPLANATORY MEMORANDUM

On 29 September 2003 the Council authorised the Commission to open negotiations, on behalf of the Community and its Member States, with the Republic of Croatia in order to conclude a Protocol to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union.

These negotiations started on 26 February 2004, following prior technical consultations with Croatia on the issue. Four negotiating rounds (26 February, 17 March, 5/6 April and 16 April) took place. The Protocol was initialled by the Commission and the Government of the Republic of Croatia on 16 April 2004. The text of the initialled protocol is attached.

The attached proposals are for (1) a Council decision on the signature of the protocol and (2) a Council and Commission decision on the conclusion of the protocol.

The Commission proposes that the Council:

- decides on the signature of the Protocol on behalf of the European Community and its Member States;

- concludes the protocol on behalf of the European Community and its Member States and gives its approval for conclusion by the European Atomic Energy Community. This proposal shall be adopted by the Council together with the decision concluding the Stabilisation and Association Agreement with Croatia.

2004/0119 (AVC)

Proposal for a COUNCIL AND COMMISSION DECISION Council and Commission Decision on the conclusion of the Protocol to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union

THE COUNCIL OF THE EUROPEAN UNION,

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community, and in particular Article 310 in conjunction with the second sentence of Article 300(2), first subparagraph, and the second subparagraph of Article 300(3) thereof,

Having regard to the Treaty establishing the European Atomic Energy Community, and in particular the second paragraph of Article 101 thereof,

Having regard to the Act of Accession annexed to the Treaty of Accession and in particular Article 6(2) thereof,

Having regard to the proposal from the Commission, [1]

[1] OJ C [...] [...], p.[...]

Having regard to the assent of the European Parliament [2],

[2] OJ C [...] [...], p.[...]

Having regard to the Council's approval pursuant to Article 101 of the Treaty establishing the European Atomic Energy Community,

Whereas:

(1) The Protocol to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union, has been signed on behalf of the European Community and the Member States on ... in accordance with Council decision no.....

(2) The Protocol should be concluded.

HAVE DECIDED AS FOLLOWS:

Article 1

The Protocol to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union is hereby approved on behalf of the European Community, the European Atomic Energy Community and the Member States.

The text of the Protocol is annexed to this Decision.

Article 2

The President of the Council shall, on behalf of the European Community and its Member States, deposit the instruments of approval provided for in Article 13 of the Protocol. The President of the Commission shall simultaneously deposit these instruments on behalf of the European Atomic Energy Community.

Done at Brussels,

For the Commission For the Council

The President The President

ANNEX

Protocol

to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia, of the other part, to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union

THE KINGDOM OF BELGIUM,

THE CZECH REPUBLIC,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE REPUBLIC OF ESTONIA,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

IRELAND,

THE ITALIAN REPUBLIC,

THE REPUBLIC OF CYPRUS,

THE REPUBLIC OF LATVIA,

THE REPUBLIC OF LITHUANIA,

THE GRAND DUCHY OF LUXEMBOURG,

THE REPUBLIC OF HUNGARY,

THE REPUBLIC OF MALTA,

THE KINGDOM OF THE NETHERLANDS,

THE REPUBLIC OF AUSTRIA,

THE REPUBLIC OF POLAND,

THE PORTUGUESE REPUBLIC,

THE REPUBLIC OF SLOVENIA,

THE SLOVAK REPUBLIC,

THE REPUBLIC OF FINLAND,

THE KINGDOM OF SWEDEN,

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

hereinafter referred to as the "Member States" represented by the Council of the European Union, and

THE EUROPEAN COMMUNITY, THE EUROPEAN ATOMIC ENERGY COMMUNITY,

hereinafter referred to as "the Communities" represented by the Council of the European Union and the European Commission,

of the one part, and

THE REPUBLIC OF CROATIA,

of the other part,

Having regard to the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic (hereinafter referred to as "the new Member States") to the European Union and thereby to the Community on 1 May 2004,

Whereas:

(1) The Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia, of the other part, (hereinafter referred to as "the SAA") was signed in Luxemburg on 29 October 2001;

(2) The Treaty concerning the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic to the European Union (hereinafter referred to as "the Treaty of Accession") was signed in Athens on 16 April 2003;

(3) Pursuant to Article 6(2) of the Act of Accession annexed to the Treaty of Accession the accession of the new Member States to the SAA shall be agreed by the conclusion of a protocol to the SAA;

(4) Consultations pursuant to Article 36(3) of the SAA have taken place so as to ensure that account is taken of the mutual interests of the Community and Croatia stated in this Agreement;

(5) The amendments to the Interim Agreement on trade and trade-related matters between the European Community, of the one part, and the Republic of Croatia, of the other part, (hereinafter referred to as "the Interim Agreement") adapting the Interim Agreement to take into account the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Hungary, the Republic of Latvia, the Republic of Lithuania, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic to the European Union have to be made also to the SAA,

HAVE AGREED AS FOLLOWS:

Section I

Contracting Parties

Article 1

The Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia, and the Slovak Republic shall be Parties to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Croatia, of the other part, signed in Luxemburg on 29 October 2001 and shall respectively adopt and take note, in the same manner as the other Member States of the Community, of the texts of the Agreement, as well as of the Joint Declarations, and the Unilateral Declarations annexed to the Final Act signed on the same date.

Article 2

To take into account recent institutional developments within the European Union, the Parties agree that following the expiry of the Treaty establishing the European Coal and Steel Community, existing provisions in the Agreement referring to the European Coal and Steel Community shall be deemed to refer to the European Community which has taken over all rights and obligations contracted by the European Coal and Steel Community.

ADJUSTMENTS TO THE TEXT OF THE SAA INCLUDING ITS ANNEXES AND PROTOCOLS

Section II

AGricultural Products

Article 3

Agricultural Products sensu stricto

1. Annex IV(a) and Annex IV(c) to the SAA shall be replaced by the text of Annex I to this Protocol.

2. Annex IV(b) to the SAA shall be replaced by the text of Annex II to this Protocol.

3. Annex IV(d) to the SAA shall be replaced by the text of Annex III to this Protocol.

4. Annex IV(e) to the SAA shall be replaced by the text of Annex IV to this Protocol.

5. Annex IV(f) to the SAA shall be replaced by the text of Annex V to this Protocol.

6. A point (g) shall be added to Article 27(3) of the SAA as follows:

" (g) From 1 May 2004, Croatia shall apply the customs duties for the commodities listed in Annex IV (g)."

7. The text of Annex VI to this Protocol shall be added to the SAA as Annex IV(g).

Article 4

Fisheries products

1. Annex V(a) to the SAA shall be replaced by the text of Annex VII to this Protocol.

2. Annex V(b) to the SAA shall be replaced by the text of Annex VIII to this Protocol.

Article 5

Processed agricultural products

1. Lists 2 and 3 of Annex II to Protocol 3 to the SAA shall be replaced by Lists 2, 3 and 4 of Annex IX to this Protocol.

Article 6

Wine Agreement

Annex I (Agreement between the European Community and the Republic of Croatia on reciprocal preferential trade concessions for certain wines, referred to in Article 27 (4) of the SAA) to the Additional Protocol adjusting the trade aspects of the SAA, to take account of the outcome of the negotiations between the parties on reciprocal preferential concessions for certain wines, the reciprocal recognition, protection and control of wine names and the reciprocal recognition, protection and control of designations for spirits and aromatised drinks, shall be replaced by the text of Annex X to this Protocol.

Section III

Rules of Origin

Article 7

1. Paragraph 4 of Article 18 of Protocol 4 to the SAA shall be replaced by the following:

'4. Movement certificates EUR.1 issued retrospectively must be endorsed with one of the following phrases:

ES "EXPEDIDO A POSTERIORI",

CS "VYSTAVENO DODATEN$",

DA "UDSTEDT EFTERFØLGENDE",

DE "NACHTRÄGLICH AUSGESTELLT",

ET "VÄLJA ANTUD TAGASIULATUVALT",

EL "ÅÊÄÏÈÅÍ ÅÊ ÔÙÍ ÕÓÔÅÑÙÍ",

EN "ISSUED RETROSPECTIVELY",

FR "DÉLIVRÉ A POSTERIORI",

IT "RILASCIATO A POSTERIORI",

LV "IZSNIEGTS RETROSPEKT:VI",

LT "RETROSPEKTYVUSIS IpDAVIMAS",

HU "KIADVA VISSZAMEN`LEGES HATÁLLYAL",

MT "MA6RU0 RETROSPETTIVAMENT",

NL "AFGEGEVEN A POSTERIORI",

PL "WYSTAWIONE RETROSPEKTYWNIE",

PT "EMITIDO A POSTERIORI",

SL "IZDANO NAKNADNO",

SK "VYDANÉ DODATONE",

FI "ANNETTU JÄLKIKÄTEEN",

SV "UTFÄRDAT I EFTERHAND",

HR "NAKNADNO IZDANO".'

2. Paragraph 2 of Article 19 of Protocol 4 to the SAA shall be replaced by the following:

'2. The duplicate issued in this way must be endorsed with one of the following words:

ES "DUPLICADO",

CS "DUPLIKÁT",

DA "DUPLIKAT",

DE "DUPLIKAT",

ET "DUPLIKAAT ",

EL "ÁÍÔÉÃÑÁÖÏ",

EN "DUPLICATE",

FR "DUPLICATA",

IT "DUPLICATO",

LV "DUBLIKTS",

LT "DUBLIKATAS",

HU "MÁSODLAT",

MT "DUPLIKAT",

NL "DUPLICAAT",

PL "DUPLIKAT",

PT "SEGUNDA VIA",

SL "DVOJNIK",

SK "DUPLIKÁT",

FI "KAKSOISKAPPALE",

SV "DUPLIKAT",

HR "DUPLIKAT".'

3. Annex I to Protocol 4 to the SAA shall be replaced by the text of Annex XI to this Protocol.

4. Annex II to Protocol 4 to the SAA shall be replaced by the text of Annex XII to this Protocol.

5. Annex IV to Protocol 4 to the SAA shall be replaced by the text of Annex XIII to this Protocol.

TRANSITIONAL PROVISIONS

Section IV

Article 8

WTO

The Republic of Croatia undertakes that it shall not make any claim, request or referral nor modify or withdraw any concession pursuant to GATT 1994 Articles XXIV.6 and XXVIII in relation to this enlargement of the Community.

Article 9

Proof of origin and administrative cooperation

1. Proofs of origin properly issued by either the Republic of Croatia or a new Member State in the framework of preferential agreements or autonomous arrangements applied between them shall be accepted in the respective countries, provided that:

(a) the acquisition of such origin confers preferential tariff treatment on the basis of the preferential tariff measures contained in the SAA;

(b) the proof of origin and the transport documents were issued no later than the day before the date of accession;

(c) the proof of origin is submitted to the customs authorities within the period of four months from the date of accession.

Where goods were declared for importation in either the Republic of Croatia or a new Member State, prior to the date of accession, under preferential agreements or autonomous arrangements applied between the Republic of Croatia and that new Member State at that time, proof of origin issued retrospectively under those agreements or arrangements may also be accepted provided that it is submitted to the customs authorities within the period of four months from the date of accession.

2. The Republic of Croatia and the new Member States are authorised to retain the authorisations with which the status of "approved exporters" has been granted in the framework of preferential agreements or autonomous arrangements applied between them, provided that:

(a) such a provision is also provided for in the agreement concluded prior to the date of accession between the Republic of Croatia and the Community; and

(b) the approved exporters apply the rules of origin in force under that agreement.

These authorisations shall be replaced, no later than one year after the date of accession, by new authorisations issued under the conditions of the SAA.

3. Requests for subsequent verification of proof of origin issued under the preferential agreements or autonomous arrangements referred to in paragraphs 1 and 2 above shall be accepted by the competent customs authorities of either the Republic of Croatia or the Member States for a period of three years after the issue of the proof of origin concerned and may be made by those authorities for a period of three years after acceptance of the proof of origin submitted to those authorities in support of an import declaration.

Article 10

Goods in transit

1. The provisions of the SAA may be applied to goods exported from either the Republic of Croatia to one of the new Member States or from one of the new Member States to the Republic of Croatia, which comply with the provisions of Protocol 4 to the SAA and that on the date of accession are either en route or in temporary storage, in a customs warehouse or in a free zone in the Republic of Croatia or in that new Member State.

2. Preferential treatment may be granted in such cases, subject to the submission to the customs authorities of the importing country, within four months from the date of accession, of a proof of origin issued retrospectively by the customs authorities of the exporting country.

Article 11

Quotas in 2004

For the year 2004, the volumes of the new tariff quotas and the increases of the volumes of existing tariff quotas shall be calculated as a pro rata of the basic volumes, taking into account the part of the period elapsed before 1 May 2004.

GENERAL AND FINAL PROVISIONS

Section V

Article 12

This Protocol and the annexes thereto shall form an integral part of the SAA.

Article 13

1. This Protocol shall be approved by the Community, by the Council of the European Union on behalf of the Member States, and by the Republic of Croatia in accordance with their own procedures.

2. The instruments of approval shall be deposited with the General Secretariat of the Council of the European Union.

Article 14

1. This Protocol shall enter into force on the same day as the Stabilisation and Association Agreement provided that all the instruments of approval of this Protocol have been deposited before that date.

2. If not all the instruments of approval of this Protocol have been deposited before that date, this Protocol shall enter into force on the first day of the first month following the date of the deposit of the last instrument of approval.

Article 15

This Protocol is drawn up in duplicate in the Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Slovene, Slovak, Spanish, Swedish, and Croatian languages, each of these texts being equally authentic.

Article 16

The text of the SAA, including the Annexes and Protocols forming an integral part thereof, and the Final Act together with the declarations annexed thereto shall be drawn up in Czech, Estonian, Hungarian, Latvian, Lithuanian, Maltese, Polish, Slovak, and Slovenian languages, and these texts shall be authentic in the same way as the original texts. The Stabilisation and Association Council shall approve these texts.

ANNEXES

Annex I

"Annex IV(a) and IV (c)

Croatian Tariff Concessions for Agricultural Products

(Duty -free for unlimited quantities at 1 May 2004)

(referred to in Article 27(3)(a) and 27(3)(c))

>TABLE POSITION>

(1) As defined by the Croatian Customs Tariff - published in NN 184/2003,as amended.

Annex II

"Annexe IV(b)

Croatian Tariff concession for Agricultural products

(Duty-free within quota as from 1 May 2004)

(referred to in Article 27(3)(b)

>TABLE POSITION>

* Quota shall be allocated in the period from 21 February - 14 September

Annex III

"Annex IV(d)

Croatian Tariff concession for Agricultural products

(progressive elimination of MFN duties within tariff quotas)

(referred to in Article 27(3)(d)

Customs duties for the commodities listed in this annex shall be reduced and eliminated in accordance with the following timetable:

-on 1 May 2004 duty applicable shall be 40% of the basic duty;

-on 1 January 2005 each duty shall be reduced to 20% of the basic duty;

-on 1 January 2006 the remaining duties shall be abolished

>TABLE POSITION>

Annex IV

"Annex IV(e)

Croatian Tariff concession for Agricultural products

(Progressive reduction of MFN duties for unlimited quantities)

(referred to in Article 27(3)(e)

Customs duties for the commodities listed in this annex shall be reduced in accordance with the following timetable:

-on 1 May 2004 duty applicable shall be 70% of the basic duty;

-on 1 January 2005 each duty shall be reduced to 60% of the basic duty;

-on 1 January 2006 each duty shall be reduced to 50% of the basic duty.

>TABLE POSITION>

Annex V

"Annex IV(f)

Croatian Tariff concession for Agricultural products

(Progressive reduction of MFN duties within quota)

(referred to in Article 27(3)(f)

Customs duties for the commodities listed in this annex shall be reduced in accordance with the following timetable:

-on 1 May 2004 each duty shall be 70% of the basic duty;

-on 1 January 2005 each duty shall be reduced to 60% of the basic duty;

-on 1 January 2006 each duty shall be reduced to 50% of the basic duty.

>TABLE POSITION>

Annex VI

"Annex IV(g)

Croatian Tariff concession for Agricultural products

(referred to in Article 27(3)(g))

Customs duties for the commodities listed in this annex shall be applied as indicated from 1 May 2004.

>TABLE POSITION>

* In the year 2005 quota for the products 160100 is subject to a 400t increase

Annex VII

"ANNEX V(a)

Products referred to in Article 15(1)

Imports into the European Community of the following products originating in Croatia shall be subject to the concessions set out below.

>TABLE POSITION>

>TABLE POSITION>

>TABLE POSITION>

Over the tariff quotas, the duty rate applicable to all products of HS position 1604 except prepared or preserved sardines and anchovies will be 60 % of MFN in 2004 and 50 % of MFN from 2005 onwards. For sardines and anchovies over the tariff quota the duty rate will be full MFN duty.

Annexe VIII

"ANNEX V(b)

Products referred to in Article 15(2)

Imports into Croatia of the following products originating in the European Community shall be subject to the concessions set out below.

>TABLE POSITION>

>TABLE POSITION>

>TABLE POSITION>

Over the tariff quota, the duty rate applicable to all products of HS position 1604 except prepared or preserved sardines and anchovies will be 60 % of MFN in 2004 and 50 % of MFN from 2005 onwards. For sardines and anchovies over the tariff quota the duty rate will be full MFN duty.

Annex IX

(Products referred to in Article 25 of the SAA)

"List 2: Quotas and duties applicable upon import into Croatia of goods originating in the Community

Note: The products listed in this Table shall benefit from a zero-duty tariff within the tariff quotas set out below. The volume of these quotas will be increased annually in the years 2005 and 2006 as stated in the list. The applicable duty for quantities exceeding these volumes will be reduced in the years 2004, 2005 and 2006 to 70 %, 60% and 50% of the MFN duty rate.

>TABLE POSITION>

>TABLE POSITION>

List 3: Quotas and duties applicable upon import into Croatia of goods originating in the Community

Note: The products listed in this Table shall be subject to concessions set out below. The volume of the tariff quotas will be increased annually in the years 2005 and 2006 as stated in the table. The applicable duty for quantities exceeding these volumes will be reduced in the years 2004, 2005 and 2006 to 65 %, 55% and 40% of the MFN duty rate.

>TABLE POSITION>

List 4: Quotas and duties applicable upon import into Croatia of goods originating in the Community

Note: The products listed in this Table shall benefit from a zero-duty tariff within the annual tariff quotas set out below. For the quantities exceeding the quota, the conditions set out in Annex II, list 1 to Protocol 3 apply.

>TABLE POSITION>

Annex X

"Annex I

Agreement

between the European Community and the Republic of Croatia

on reciprocal preferential trade concessions for certain wines

1. Imports into the Community of the following products originating in the Republic of Croatia shall be subject to the concessions set out below from 1 May 2004:

>TABLE POSITION>

(1) Subject to at least 80% of the eligible quantity having been utilised in the previous year, the yearly increase is applied until the sum of the quota applying to position ex 2204 10 and ex 2204 21 and the quota applying to position ex 2204 29 reaches a maximum of 98 000 hl.

(2) Consultations at the request of one of the Contracting Parties may be held to adapt the quotas by transfering quantities from the quota applying to position ex 2204 29 to the quota applying to positions ex 2204 10 and ex 2204 21.

2. The Community shall grant a preferential zero-duty within tariff quotas as mentioned under point 1, subject to the condition that no export subsidies shall be paid for exports of these quantities by the Republic of Croatia.

3. Imports into the Republic of Croatia of the following products originating in the Community shall be subject to the concessions set out below from 1 May 2004 :

>TABLE POSITION>

(1) Subject to at least 80% of the eligible quantity having been utilised in the previous year, the yearly increase is applied until the quota reaches a maximum of 18 000 hl.

4. The Republic of Croatia shall grant a preferential zero-duty within tariff quotas as mentioned under point 3, subject to the condition that no export subsidies shall be paid for exports of these quantities by the Community.

5. This Agreement shall cover wine

(a) which has been produced from fresh grapes wholly produced and harvested in the territory of the Contracting Party in question, and

(b) (i) originating in the EU, which has been produced in accordance with the rules governing the oenological practices and processes referred to in Title V of Council Regulation (EC) No 1493/1999;

(ii) originating in the Republic of Croatia, which has been produced in accordance with the rules governing the oenological practices and processes in conformity with the Croatian law. These oenological rules referred to shall be in conformity with the Community legislation.

6. Imports of wine under the concessions provided in this Agreement will be subject to the presentation of a certificate issued by a mutually recognised official body appearing on the lists drawn up jointly, to the effect that the wine in question complies with point 5(b).

7. The Contracting Parties shall examine no later than in the first quarter of 2005 the opportunities for granting each other further concessions taking into account the development of wine trade between the Contracting Parties.

8. The Contracting Parties shall ensure that the benefits granted reciprocally are not called into question by other measures.

9. Consultations are to take place at the request of either Contracting Party on any problem relating to the way this Agreement operates.

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

Annex XI

"ANNEX I

Introductory notes to the list in Annex II

Note 1:

The list sets out the conditions required for all products to be considered as sufficiently worked or processed within the meaning of Article 6 of the Protocol.

Note 2:

2.1. The first two columns in the list describe the product obtained. The first column gives the heading number or chapter number used in the Harmonized System and the second column gives the description of goods used in that system for that heading or chapter. For each entry in the first two columns, a rule is specified in column 3 or 4. Where, in some cases, the entry in the first column is preceded by an "ex", this signifies that the rules in column 3 or 4 apply only to the part of that heading as described in column 2.

2.2. Where several heading numbers are grouped together in column 1 or a chapter number is given and the description of products in column 2 is therefore given in general terms, the adjacent rules in column 3 or 4 apply to all products which, under the Harmonized System, are classified in headings of the chapter or in any of the headings grouped together in column 1.

2.3. Where there are different rules in the list applying to different products within a heading, each indent contains the description of that part of the heading covered by the adjacent rules in column 3 or 4.

2.4. Where, for an entry in the first two columns, a rule is specified in both columns 3 and 4, the exporter may opt, as an alternative, to apply either the rule set out in column 3 or that set out in column 4. If no origin rule is given in column 4, the rule set out in column 3 is to be applied.

Note 3:

3.1. The provisions of Article 6 of the Protocol, concerning products having acquired originating status which are used in the manufacture of other products, shall apply, regardless of whether this status has been acquired inside the factory where these products are used or in another factory in the Community or in Croatia.

Example:

An engine of heading 8407, for which the rule states that the value of the non-originating materials which may be incorporated may not exceed 40 % of the ex-works price, is made from "other alloy steel roughly shaped by forging" of heading ex 7224.

If this forging has been forged in the Community from a non-originating ingot, it has already acquired originating status by virtue of the rule for heading ex 7224 in the list. The forging can then count as originating in the value-calculation for the engine, regardless of whether it was produced in the same factory or in another factory in the Community. The value of the non-originating ingot is thus not taken into account when adding up the value of the non-originating materials used.

3.2. The rule in the list represents the minimum amount of working or processing required, and the carrying-out of more working or processing also confers originating status; conversely, the carrying-out of less working or processing cannot confer originating status. Thus, if a rule provides that non-originating material, at a certain level of manufacture, may be used, the use of such material at an earlier stage of manufacture is allowed, and the use of such material at a later stage is not.

3.3. Without prejudice to Note 3.2, where a rule uses the expression "Manufacture from materials of any heading", then materials of any heading(s) (even materials of the same description and heading as the product) may be used, subject, however, to any specific limitations which may also be contained in the rule.

However, the expression "Manufacture from materials of any heading, including other materials of heading ..." or "Manufacture from materials of any heading, including other materials of the same heading as the product" means that materials of any heading(s) may be used, except those of the same description as the product as given in column 2 of the list.

3.4. When a rule in the list specifies that a product may be manufactured from more than one material, this means that one or more materials may be used. It does not require that all be used.

Example:

The rule for fabrics of headings 5208 to 5212 provides that natural fibres may be used and that chemical materials, among other materials, may also be used. This does not mean that both have to be used; it is possible to use one or the other, or both.

3.5. Where a rule in the list specifies that a product must be manufactured from a particular material, the condition obviously does not prevent the use of other materials which, because of their inherent nature, cannot satisfy the rule. (See also Note 6.2 below in relation to textiles).

Example:

The rule for prepared foods of heading 1904, which specifically excludes the use of cereals and their derivatives, does not prevent the use of mineral salts, chemicals and other additives which are not products from cereals.

However, this does not apply to products which, although they cannot be manufactured from the particular materials specified in the list, can be produced from a material of the same nature at an earlier stage of manufacture.

Example:

In the case of an article of apparel of ex Chapter 62 made from non-woven materials, if the use of only non-originating yarn is allowed for this class of article, it is not possible to start from non-woven cloth - even if non-woven cloths cannot normally be made from yarn. In such cases, the starting material would normally be at the stage before yarn - that is, the fibre stage.

3.6. Where, in a rule in the list, two percentages are given for the maximum value of non-originating materials that can be used, then these percentages may not be added together. In other words, the maximum value of all the non-originating materials used may never exceed the higher of the percentages given. Furthermore, the individual percentages must not be exceeded, in relation to the particular materials to which they apply.

Note 4:

4.1. The term "natural fibres" is used in the list to refer to fibres other than artificial or synthetic fibres. It is restricted to the stages before spinning takes place, including waste, and, unless otherwise specified, includes fibres which have been carded, combed or otherwise processed, but not spun.

4.2. The term "natural fibres" includes horsehair of heading 0503, silk of headings 5002 and 5003, as well as wool-fibres and fine or coarse animal hair of headings 5101 to 5105, cotton fibres of headings 5201 to 5203, and other vegetable fibres of headings 5301 to 5305.

4.3. The terms "textile pulp", "chemical materials" and "paper-making materials" are used in the list to describe the materials, not classified in Chapters 50 to 63, which can be used to manufacture artificial, synthetic or paper fibres or yarns.

4.4. The term "man-made staple fibres" is used in the list to refer to synthetic or artificial filament tow, staple fibres or waste, of headings 5501 to 5507.

Note 5:

5.1. Where, for a given product in the list, reference is made to this Note, the conditions set out in column 3 shall not be applied to any basic textile materials used in the manufacture of this product and which, taken together, represent 10 % or less of the total weight of all the basic textile materials used. (See also Notes 5.3 and 5.4 below.)

5.2. However, the tolerance mentioned in Note 5.1 may be applied only to mixed products which have been made from two or more basic textile materials.

The following are the basic textile materials:

-silk,

-wool,

-coarse animal hair,

-fine animal hair,

-horsehair,

-cotton,

-paper-making materials and paper,

-flax,

-true hemp,

-jute and other textile bast fibres,

-sisal and other textile fibres of the genus Agave,

-coconut, abaca , ramie and other vegetable textile fibres,

-synthetic man-made filaments,

-artificial man-made filaments,

-current-conducting filaments,

-synthetic man-made staple fibres of polypropylene,

-synthetic man-made staple fibres of polyester,

-synthetic man-made staple fibres of polyamide,

-synthetic man-made staple fibres of polyacrylonitrile,

-synthetic man-made staple fibres of polyimide,

-synthetic man-made staple fibres of polytetrafluoroethylene,

-synthetic man-made staple fibres of poly(phenylene sulphide),

-synthetic man-made staple fibres of poly(vinyl chloride),

-other synthetic man-made staple fibres,

-artificial man-made staple fibres of viscose,

-other artificial man-made staple fibres,

-yarn made of polyurethane segmented with flexible segments of polyether, whether or not gimped,

-yarn made of polyurethane segmented with flexible segments of polyester, whether or not gimped,

-products of heading 5605 (metallised yarn) incorporating strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film,

-other products of heading 5605.

Example:

A yarn, of heading 5205, made from cotton fibres of heading 5203 and synthetic staple fibres of heading 5506, is a mixed yarn. Therefore, non-originating synthetic staple fibres which do not satisfy the origin-rules (which require manufacture from chemical materials or textile pulp) may be used, provided that their total weight does not exceed 10 % of the weight of the yarn.

Example:

A woollen fabric, of heading 5112, made from woollen yarn of heading 5107 and synthetic yarn of staple fibres of heading 5509, is a mixed fabric. Therefore, synthetic yarn which does not satisfy the origin-rules (which require manufacture from chemical materials or textile pulp), or woollen yarn which does not satisfy the origin-rules (which require manufacture from natural fibres, not carded or combed or otherwise prepared for spinning), or a combination of the two, may be used, provided that their total weight does not exceed 10 % of the weight of the fabric.

Example:

Tufted textile fabric, of heading 5802, made from cotton yarn of heading 5205 and cotton fabric of heading 5210, is a only mixed product if the cotton fabric is itself a mixed fabric made from yarns classified in two separate headings, or if the cotton yarns used are themselves mixtures.

Example:

If the tufted textile fabric concerned had been made from cotton yarn of heading 5205 and synthetic fabric of heading 5407, then, obviously, the yarns used are two separate basic textile materials and the tufted textile fabric is, accordingly, a mixed product.

5.3. In the case of products incorporating "yarn made of polyurethane segmented with flexible segments of polyether, whether or not gimped", this tolerance is 20 % in respect of this yarn.

5.4. In the case of products incorporating "strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film", this tolerance is 30 % in respect of this strip.

Note 6:

6.1. Where, in the list, reference is made to this Note, textile materials (with the exception of linings and interlinings), which do not satisfy the rule set out in the list in column 3 for the made-up product concerned, may be used, provided that they are classified in a heading other than that of the product and that their value does not exceed 8 % of the ex-works price of the product.

6.2. Without prejudice to Note 6.3, materials, which are not classified within Chapters 50 to 63, may be used freely in the manufacture of textile products, whether or not they contain textiles.

Example:

If a rule in the list provides that, for a particular textile item (such as trousers), yarn must be used, this does not prevent the use of metal items, such as buttons, because buttons are not classified within Chapters 50 to 63. For the same reason, it does not prevent the use of slide-fasteners, even though slide-fasteners normally contain textiles.

6.3. Where a percentage-rule applies, the value of materials which are not classified within Chapters 50 to 63 must be taken into account when calculating the value of the non-originating materials incorporated.

Note 7:

7.1. For the purposes of headings ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403, the "specific processes" are the following:

(a) vacuum-distillation;

(b) redistillation by a very thorough fractionation-process;

(c) cracking;

(d) reforming;

(e) extraction by means of selective solvents;

(f) the process comprising all of the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with alkaline agents; decolourisation and purification with naturally-active earth, activated earth, activated charcoal or bauxite;

(g) polymerisation;

(h) alkylation;

(i) isomerisation.

7.2. For the purposes of headings 2710, 2711 and 2712, the "specific processes" are the following:

(a) vacuum-distillation;

(b) redistillation by a very thorough fractionation-process;

(c) cracking;

(d) reforming;

(e) extraction by means of selective solvents;

(f) the process comprising all of the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with alkaline agents; decolourisation and purification with naturally-active earth, activated earth, activated charcoal or bauxite;

(g) polymerisation;

(h) alkylation;

(ij) isomerisation;

(k) in respect of heavy oils of heading ex 2710 only, desulphurisation with hydrogen, resulting in a reduction of at least 85 % of the sulphur-content of the products processed (ASTM D 1266-59 T method);

(l) in respect of products of heading 2710 only, deparaffining by a process other than filtering;

(m) in respect of heavy oils of heading ex 2710 only, treatment with hydrogen, at a pressure of more than 20 bar and a temperature of more than 250 °C, with the use of a catalyst, other than to effect desulphurisation, when the hydrogen constitutes an active element in a chemical reaction. The further treatment, with hydrogen, of lubricating oils of heading ex 2710 (e.g. hydrofinishing or decolourisation), in order, more especially, to improve colour or stability shall not, however, be deemed to be a specific process;

(n) in respect of fuel oils of heading ex 2710 only, atmospheric distillation, on condition that less than 30 % of these products distils, by volume, including losses, at 300 °C, by the ASTM D 86 method;

(o) in respect of heavy oils other than gas oils and fuel oils of heading ex 2710 only, treatment by means of a high-frequency electrical brush-discharge;

(p) in respect of crude products (other than petroleum jelly, ozokerite, lignite wax or peat wax, paraffin wax containing by weight less than 0.75 % of oil) of heading ex 2712 only, de-oiling by fractional crystallisation.

7.3. For the purposes of headings ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403, simple operations, such as cleaning, decanting, desalting, water-separation, filtering, colouring, marking, obtaining a sulphur-content as a result of mixing products with different sulphur-contents, or any combination of these operations or like operations, do not confer origin."

Annex XII

"ANNEX II

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

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

>TABLE POSITION>

>TABLE POSITION>

"

Annex XIII

"ANNEX IV

Text of the invoice declaration

The invoice declaration, the text of which is given below, must be made out in accordance with the footnotes. However, the footnotes do not have to be reproduced.

Spanish version

El exportador de los productos incluidos en el presente documento (autorización aduanera n° ... (1)) declara que, salvo indicación en sentido contrario, estos productos gozan de un origen preferencial ... (2).

Czech version

Vývozce výrobk uvedených v tomto dokumentu (íslo povolení ...(1)) prohlasuje, ze krom+ zieteln+ oznaených, mají tyto výrobky preferenní pvod v ...(2).

Danish version

Eksportøren af varer, der er omfattet af nærværende dokument, (toldmyndighedernes tilladelse nr. ...(1)), erklærer, at varerne, medmindre andet tydeligt er angivet, har præferenceoprindelse i ...(2).

German version

Der Ausführer (Ermächtigter Ausführer; Bewilligungs-Nr. ...(1)) der Waren, auf die sich dieses Handelspapier bezieht, erklärt, dass diese Waren, soweit nicht anderes angegeben, präferenzbegünstigte ...(2) Ursprungswaren sind.

Estonian version

Käesoleva dokumendiga hõlmatud toodete eksportija (tolliameti kinnitus nr. ...(1)) deklareerib, et need tooted on ...(2) sooduspäritoluga, välja arvatud juhul kui on selgelt näidatud teisiti.

Greek version

Ï åîáãùãÝáò ôùí ðñïúüíôùí ðïõ êáëýðôïíôáé áðü ôï ðáñüí Ýããñáöï (Üäåéá ôåëùíåßïõ õð´áñéè. ...(1)) äçëþíåé üôé, åêôüò åÜí äçëþíåôáé óáöþò Üëëùò, ôá ðñïúüíôá áõôÜ åßíáé ðñïôéìçóéáêÞò êáôáãùãÞò ...(2).

English version

The exporter of the products covered by this document (customs authorization No ...(1)) declares that, except where otherwise clearly indicated, these products are of ...(2) preferential origin.

French version

L'exportateur des produits couverts par le présent document (autorisation douanière n° ...(1)) déclare que, sauf indication claire du contraire, ces produits ont l'origine préférentielle ... (2)).

Italian version

L'esportatore delle merci contemplate nel presente documento (autorizzazione doganale n. ...(1)) dichiara che, salvo indicazione contraria, le merci sono di origine preferenziale ...(2)

Latvian version

Eksport

tjs produktiem, kuri ietverti saj dokument (muitas pilnvara Nr. ...(1)), deklar

, ka, iznemot tur, kur ir citdi skaidri noteikts, siem produktiem ir prieksroc;bu izcelsme no ...(2).

Lithuanian version

piame dokumente isvardint preki eksportuotojas (muitinès liudijimo Nr ...(1)) deklaruoja, kad, jeigu kitaip nenurodyta, tai yra ...(2) preferencinès kilmés prekés.

Hungarian version

A jelen okmányban szerepla áruk exportare (vámfelhatalmazási szám: ...(1)) kijelentem, hogy eltéra jelzés hianyában az áruk kedvezményes ...(2) származásúak.

Maltese version

L-esportatur tal-prodotti koperti b'dan id-dokument (awtorizzazzjoni tad-dwana nru. ...(1)) jiddikjara li, 7lief fejn indikat b'mod ar li mhux hekk, dawn il-prodotti huma ta' ori1ini preferenzjali ...(2).

Dutch version

De exporteur van de goederen waarop dit document van toepassing is (douanevergunning nr. ...(1)), verklaart dat, behoudens uitdrukkelijke andersluidende vermelding, deze goederen van preferentiële ... oorsprong zijn (2).

Polish version

Eksporter produktów obj)tych tym dokumentem (upowanienie wRadz celnych nr ...(1)) deklaruje, e z wyjtkiem gdzie jest to wyranie okreklone, produkty te maj ...(2) preferencyjne pochodzenie.

Portuguese version

O abaixo assinado, exportador dos produtos cobertos pelo presente documento (autorização aduaneira n° ...(1)), declara que, salvo expressamente indicado em contrário, estes produtos são de origem preferencial ...(2).

Slovenian version

Izvoznik blaga, zajetega s tem dokumentom (pooblastilo carinskih organov st ...(1)) izjavlja, da, razen e ni drugae jasno navedeno, ima to blago preferencialno ...(2) poreklo.

Slovak version

Vývozca výrobkov uvedených v tomto dokumente (íslo povolenia ...(1)) vyhlasuje, ze okrem zreteNne oznaených, majú tieto výrobky preferenný pôvod v ...(2).

Finnish version

Tässä asiakirjassa mainittujen tuotteiden viejä (tullin lupa n:o ...(1)) ilmoittaa, että nämä tuotteet ovat, ellei toisin ole selvästi merkitty, etuuskohteluun oikeutettuja ... alkuperätuotteita (2).

Swedish version

Exportören av de varor som omfattas av detta dokument (tullmyndighetens tillstånd nr. ...(1)) försäkrar att dessa varor, om inte annat tydligt markerats, har förmånsberättigande ... ursprung (2).

Croatian version

Izvoznik proizvoda obuhvaenih ovom ispravom (carinsko ovlastenje br. ...(1)) izjavljuje da su, osim ako je drukije izriito navedeno, ovi proizvodi ...(2) preferencijalnoga podrijetla.

(1) When the invoice declaration is made out by an approved exporter, the authorization number of the approved exporter must be entered in this space. When the invoice declaration is not made out by an approved exporter, the words in brackets shall be omitted or the space left blank.

(2) Origin of products to be indicated. When the invoice declaration relates, in whole or in part, to products originating in Ceuta and Mellila, the exporter must clearly indicate them in the document on which the declaration is made out by means of the symbol "CM".

......(3)

(3) These indications may be omitted if the information is contained on the document itself

(Place and date)

&&(4)

(4) In cases where the exporter is not required to sign, the exemption of signature also implies the exemption of the name of the signatory.

(Signature of the exporter, in addition the name of the person signing the declaration has to be indicated in clear script)"