COMMISSION OF THE EUROPEAN COMMUNITIES 
,.w 
'• 
-.". i Brussels, 17.07.1998 
COM(1998) 389 final 
98/ 0254 
98/0255 
98/ 0256 
98/ 0257 
98/ 0258 
98/ 0259 
98/ 0260 
98/0261 
98/0262 
98/ 0263 (ACC) 
(ACQ 
(ACC) 
(ACC) 
(ACC) 
(ACC) 
(ACC) 
(ACC) 
(ACC) 
(ACC) 
Proposals for 
COUNCIL DECISIONS 
on a Community position on an amendment to Protocol 4 on the definition of the concept of "originating 
products" and methods of administrative cooperation set out in the Europe Agreement between the European 
Communities and Bulgaria, the Czech Republic, Poland, Hungary, the Slovak Republic and Romania 
Proposals for 
COUNCIL DECISIONS 
on a Community position on an amendment to Protocol 3 on the definition of the concept of "originating 
products" and methods of administrative cooperation set out in the Europe Agreement between the European 
Communities and the Republic of Estonia, the Republic of Latvia and the Republic of Lithuania 
Proposal for a 
COUNCIL DECISION 
on a Community position on an amendment to Protocol 4 on the definition of the concept of "originating 
products" and methods of administrative cooperation set out in the Interim Agreement on trade and trade-
related matters between the European Communities and the Republic of Slovenia 
Draft 
DECISION N° .../ OF THE EC-SWITZERLAND JOINT COMMITTEE 
amending Protocol 3 to the Agreement between the European Economic Community and the Swiss 
Confederation concerning the definition of the concept of "originating products" and methods of administrative 
cooperation 
Draft 
DECISION N° .../ OF THE EC-NORWAY JOINT COMMITTEE 
amending Protocol 3 to the Agreement between the European Economic Community and the Kingdom of 
Norway concerning the definition of the concept of "originating products" and methods of administrative 
cooperation 
Draft 
DECISION N° .../ OF THE EC-ICELAND JOINT COMMITTEE 
amending Protocol 3 to the Agreement between the European Economic Community and the Republic of 
Iceland concerning the definition of the concept of "originating products" and methods of administrative 
cooperation 
Draft 
DECISION N° .../ OF THE EEA JOINT COMMITTEE No .. 
amending Protocol 4 to the EEA Agreement on rules of origin 
Drafts common position of the Community -
m.-f (presented by the Commission) 

EXPLANATORY MEMORANDUM 
1. GENERAL 
1.1 The rules of origin are essential to the correct functioning of the free trade 
agreements between the Community and its trading partners. 
1.2 The European Council meeting in Essen in December 1994 drew attention to the 
fact that variations in the origin rules included in the different agreements signed 
by the Community constituted a barrier to trade. Therefore it initiated a 
programme aimed at applying identical origin rules and thereby putting trade 
between the Community, the CEECs, the Baltic States, the EFTA and the EEA 
countries on the same footing. It also decided that other countries in a situation 
similar to those mentioned above could be similarly integrated into the system 
when the time came,. 
1.3 Between 1 January and 1 July 1997 the text of the protocols on the rules of origin 
annexed to the agreements the Community has concluded with the countries 
mentioned at 1.2 above and with Slovenia was replaced by a standard text which 
also provides that all those countries can apply arrangements for cumulation of 
working and processing in trade with each other. This created a vast zone in 
which "originating products" could move around and obtain preferential tariff 
treatment. 
1.4 The origin rules are not immutable. They must be adaptable to the political and 
economic requirements of the free trade area in which they apply. Some changes 
have, therefore, already been deemed necessary to the rules which entered into 
force in 1997. 
2. AMENDMENTS TO THE RULES OF ORIGIN IN THE EU-CEECS, EU-
BALTIC STATES, EU-EFTA, EU-SLOVENIA AND EEA AGREEMENTS 
2.1 The EC/Turkey Association Council meeting of 29 April 1997 granted Turkey's 
request be integrated into the above system of standardised rules of origin. 
However, for the present, that integration will only apply to industrial goods, i.e. 
products not covered by Annex II to the Treaty. The attached texts have been 
completed as a consequence. 
A 
2.2 Amongst other things, the standard origin rules provide, that imtil, 3^ .December 
1998 flat rates may be used where drawback is prohibited or exemptions from 
customs duty are granted. Recently Bulgaria and Hungary asked for this option to 
be prolonged for a further two years. This will not give rise to any economic 
difficulties for the Community. It is there§?re proposed to grant that request 
which only concerns the agreements with the CEECs, the Baltic States and 
Slovenia. 
2.3 Since the entry into force of the standard protocol on rules of origin some Articles 
have given rise to difficulties of interpretation or application. Such is the case of 
Articles 3 and 4 for which new wording is proposed. That amendment has no 
impact on determining whether or not a given product has originating status, but 
only concerns the matter of how to determine which country should be taken as 
the country of origin. That amendment has no impact on preferential treatment 
for most sectors In those cases where preferential treatment is distinguished 
according to the country of origin the economic consequences for the Community 
are negligible compared with the total number of transactions. That amendment 
represents an administrative simplification important both to administrations and 
economic operators. 
2.4 As a preliminary response to the Community's undertaking on trade with the 
successor republics to the former Yugoslavia it is proposed that the principle of 
territoriality provided for in Article 12 of the EEA Agreement be extended to the 
CEECs, the Baltic States and Slovenia. 
2.5 A few technical amendments to Annexes I and II to the protocols are also 
proposed. Those amendments concern products whose raw materials are in short 
supply in the trade zone. 
3. CONCLUSION 
The purpose of the annexed 14 proposals is to improve the functioning of the 
common system of origin rules. They should be taken as a single package. If the 
current arrangements allowing cumulation of working and processing are to 
remain in force, it is essential that they enter into force at the same time, i.e. on 1 
January 1999. 
3 
The Commission therefore calls on the Council to draw up a common position for 
presentation to the committees provided for in each of the agreements. 
M 
Proposal for a 98/0254 (ACQ 
COUNCIL DECISION 
on a Community position on an amendment to Protocol 4 
on the definition of the concept of "originating products" 
and methods of administrative cooperation set out in 
the Europe Agreement between the 
European Communities and Bulgaria 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 thereof, 
Having regard to Article 2(1) of the Council and Commission Decision of 19 December 
1994 on the conclusion of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and Bulgaria, of the 
other part, 
Having regard to the Commission proposal, 
Whereas Article 38 of Protocol 4 to the said Europe Agreement provides that the 
Association Council may amend the provisions of the Protocol, 
HAS DECIDED: 
The position to be adopted by the Community within the Association Council created by 
virtue of Article 105 of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and Bulgaria, of the 
other part, on an amendment to Protocol 4 on the definition of the concept of "originating 
products" and methods of administrative cooperation set out in the Agreement shall be 
based on the draft Association Council decision annexed to this Decision. 
Done at Brussels, 
For the Council 
The President 
b 
EUROPE AGREEMENT 
establishing an association between the European Communities and their Member 
States, of the one part, and 
the Republic of Bulgaria, of the other part 
DRAFT 
Decision No .../.. of the Association Council 
of... 
amending Protocol 4 on the definition of the concept of "originating products" and 
methods of administrative cooperation 
THE ASSOCIATION COUNCIL, 
Having regard to the Europe Agreement establishing an association between the European 
Communities and their Member States, of the one part, and Bulgaria, of the other part, 
signed in Brussels on 8 march 1993 and in particular Article 38 of Protocol 4 thereof, 
Whereas the definition of the term "originating products" needs to be amended to ensure 
the proper operation of the extended system of cumulation which permits the use of 
materials originating in the European Community, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the 
European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and 
Switzerland; 
Whereas it would seem advisable to maintain in operation until 31 December 2000 the 
system of flat rate charges provided for in Article 15 in connection with the prohibition of 
drawback and exemption from customs duty; 
Whereas, in view of the particular arrangement on industrial products obtaining between 
the Community and Turkey, it would also be appropriate to extend the cumulation system 
to such products originating in Turkey; 
Whereas to facilitate trade and simplify administrative tasks it would be desirable to 
amend the wording of Articles 3, 4 and 12; 
Whereas, to take account of changes in processing techniques and shortages of certain 
raw materials, some corrections must be made to the list of working and processing 
requirements which non-originating materials have to fulfil to qualify for originating 
status, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Protocol 4 on the definition of the concept of "originating products" and methods of 
administrative cooperation is hereby amended as follows: 
G 
1. Article l(i) shall be replaced by: 
"(i) 'added value' shall be taken to be the ex-works price minus the customs 
value of each of the materials incorporated which originate in the other 
countries referred to in Articles 3 and 4 or, where the customs value is not 
known or cannot be ascertained, the first price verifiably paid for the 
products in the Community or Bulgaria." 
2. Articles 3 and 4 shall be replaced by: 
Article 3 
Cumulation in the European Community 
1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be 
considered as originating in the Community if such products are obtained there, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between the 
Community and each of these countries, provided that the working or processing carried 
out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall 
not be necessary that such materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in the Community does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in the Community only where the value added there is greater than the value of the 
materials used originating in any one of the other countries referred to in paragraph 1. If 
this is not so, the product obtained shall be considered as originating in the country which 
accounts for the highest value of originating materials used in the manufacture in the 
Community. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the Community, retain their origin if exported into 
one of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Community shall provide Bulgaria, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
i The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
) 
Article 4 
Cumulation in Bulgaria 
1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be 
considered as originating in Bulgaria if such products are obtained there, incorporating 
materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, 
Switzerland (including Liechtenstein)1 or Turkey2 in accordance with the provisions of 
the Protocol on rules of origin annexed to the Agreements between Bulgaria and each of 
these countries, provided that the working or processing carried out in Bulgaria goes 
beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such 
materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in Bulgaria does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in Bulgaria only where the value added there is greater than the value of the materials 
used originating in any one of the other countries referred to in paragraph 1. If this is not 
so, the product obtained shall be considered as originating in the country which accounts 
for the highest value of originating materials used in the manufacture in Bulgaria. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in Bulgaria, retain their origin if exported into one of 
these countries. 
4. The cumulation provided for in this Article may only be. applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
Bulgaria shall provide the Community, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
3. Article 12 shall be replaced by the following: 
"1. Except as provided for in Article 2(1 )(c), Articles 3 and 4 and paragraph 3 of 
this Article, the conditions for acquiring originating status set out in Title II 
must continue to be fulfilled at all times in the Community or Bulgaria. 
2. Except as provided for in Articles 3 and 4, where originating goods exported 
from the Community or Bulgaria to another country return, they must be 
i The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
7 
considered as non-originating, unless it can be demonstrated to -tbe.satisfaction 
of the customs authorities that: 
(a) the returning goods are the same as those that were exported; and 
(b) they have not undergone any operation beyond that necessary to preserve 
them in good condition while in that country or while being exported. 
3. The acquisition of originating status in accordance with the conditions set out 
in Title II shall not be affected by working or processing done outside the 
Community or Bulgaria on materials exported from the Community or 
Bulgaria and subsequently reimported there, provided: 
(a) the said materials are wholly obtained in the Community or Bulgaria or 
have undergone working or processing beyond the insufficient operations 
listed in Article 7 prior to being exported; and 
(b) it can be demonstrated to the satisfaction of the customs authorities that: 
i) the reimported goods have been obtained by working or processing 
the exported materials; and 
ii) the total added value acquired outside the Community or Bulgaria 
by applying the provisions of this Article does not exceed 10% of 
the ex-works price of the end product for which originating status is 
claimed. 
4. For the purposes of paragraph 3, the conditions for acquiring originating 
status set out in Title II shall not apply to working or processing done outside 
the Community or Bulgaria. But where, in the list in Annex II, a rule setting a 
maximum value for all the non-originating materials incorporated is applied in 
determining the originating status of the end product, the total value of the 
non-originating materials incorporated in the territory of the party concerned, 
taken together with the total added value acquired outside the Community or 
Bulgaria by applying the provisions of this Article, shall not exceed the stated 
percentage. 
5. For the purposes of applying the provisions of paragraphs 3 and 4, "total 
added value" shall be taken to mean all costs arising outside the Community 
or Bulgaria, including the value of the materials incorporated there. 
6. The provisions of paragraphs 3 and 4 shall not apply to products which do not 
fulfil the conditions set out in the list in Annex II or which can be considered 
sufficiently worked or processed only if the general values fixed in Article 6(2) 
are applied. 
7. The provisions of paragraphs 3 and 4 shall not apply to products coming 
under Chapters 50 to 63 of the Harmonised System. 
8. Any working or processing of the kind covered by the provisions of this 
Article and done outside the Community or Bulgaria shall be done under the 
outward processing arrangements, or similar arrangements." 
1 
4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase "referred<t€t.in-Article 4" 
shall be replaced by "referred to in Articles 3 and 4". 
5. In the last paragraph of Article 15(6) the date "31 December 1998" shall be 
replaced by "31 December 2000". 
6. In Article 26 the reference "C2/CP3" shall be replaced by "CN22/CN23". 
7. In Annex I, Note 5.2, "current conducting filaments" shall be added between 
"artificial man-made filaments" and "synthetic man-made staple fibres of 
polypropylene". 
8. In Annex I, Note 5.2 the fifth example ("A carpet with tufts ... are met") shall be 
deleted. 
9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule 
shall be inserted: 
HS 
Heading 
No 
(1) 
2207 Description of product 
(2) 
Undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
80% vol or higher; 
etiiyl alcohol and other 
spirits, denatured, of any 
strength. Working or processing of non-originating materials that 
confers originating status 
(3) or (4) 
Manufacture: 
- using materials not classified 
in headings 2207 or 2208 
/Ù 
10. In Annex II, the rule for Chapter 57 shall be replaced by: 
Chapter 
57 Carpets and other textile 
floor coverings: 
- Of needleloom felt 
Of other felt 
Other Manufacture from ( 1 ) : 
- natural fibres 
or 
- chemical materials or textile pulp 
However: 
- polypropylene filament of 
heading 5402, 
- polypropylene fibres of heading 
5503 or 5506, 
- polypropylene filament tow of 
heading 5501, of which the 
denomination in all cases of a 
single filament or fibre is less 
than 9 decitex, may be used 
provided their value does not 
exceed 40% of the ex-works 
price of the product 
- jute fabric may be used as 
backing 
Manufacture from(l): 
- natural fibres not carded or 
combed or otherwise processed 
for spinning, 
or 
- chemical materials or textile pulp 
Manufacture from(l): 
- coir or jute yarn(a), 
- synthetic or artificial filament yarn 
- natural fibres, or 
- man-made staple fibres not 
carded or combed or otherwise 
processed for spinning 
But jute fabric may be used as 
backing 
(a) The use of jute yarn is authorised from 1.7.2000. 
// 
11. In Annex II, the rule for HS heading 7006 shall be replaced by: 
7006 Glass of headings 7003, 
7004 or 7005, bent, 
edgeworked, engraved, 
drilled, enamelled or 
otherwise worked, but 
not framed or fitted with 
other materials : 
- glass plate substrate 
coated with dielectric 
thin film, semi­
conductor grade, in 
accordance with 
SEMII standards1 
- other Manufacture from materials 
(substrates) of heading 7006 
Manufacture from materials 
of heading 7001 
12. In Annex II, the rule for HS heading 7601 shall be replaced by: 
7601 Unwrought aluminium Manufacture in which: 
- all the materials used are 
classified within a heading 
other than that of the 
product; and 
- the value of all the 
materials used does not 
exceed 50 % of the ex-
works price of the product 
or 
Manufacture by thermal or 
electrolytic treatment from 
unalloyed aluminium or 
waste and scrap of 
aluminium 
13. The following is added after Annex IV: 
"Annex V 
List of products originating in Turkey 
to which the provisions of Articles 3 and 4 do not apply, 
listed in the order of HS Chapters and Headings 
Chapter 1 
SEMII- Semiconductor Equipment and Materials Institute Incorporated. 
JJL 
Chapter 2 
Chapter 3 
0401 to 0402 
ex 0403 - Buttermilk, curdled milk and cream, yoghurt, képhir and other fermented 
or acidified milk and cream, whether or not concentrated or containing 
added sugar or other sweetening matter or flavoured or containing added 
fruit or cocoa 
0404 to 0410 
0504 
0511 
Chapter 6 
0701 to 0709 
ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen 
ex 0711- Vegetables, except sweet corn of heading 0711 90 30, provisionally 
preserved (for example, by sulphur dioxide gas, in brine, in sulphur water 
or in other preservative solutions), but unsuitable in that state for 
immediate consumption 
0712 to 0714 
Chapter 8 
ex Chapter 9 - Coffee, tea, and spices, excluding maté of heading 0903 
Chapter 10 
Chapter 11 
Chapter 12 
ex 1302- Pectin 
1501tol514 
ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) 
and their fractions, whether or not refined, but not chemically modified 
ex 1516- Animal or vegetable fats and oils and their fractions, partly or wholly 
hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not 
refined, but not further prepared, excluding hydrogenated castor oil known 
as 'opal-wax' 
ex 1517 and 
ex 1518 - Margarines, imitation lard and other prepared edible fats 
ex 1522- Residues resulting from the treatment of fatty substances or animal or 
vegetable waxes, excluding degras 
Chapter 16 
1701 
ex 1702- Other sugars, including chemically pure lactose, maltose, glucose and 
fructose, in solid form; sugar syrups not containing added flavouring or 
colouring matter; artificial honey, whether or not mixed with natural 
honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 
1702 30 59, 1702 50 00 and 1702 90 10 
n 
1703 
1801 and 1802 
ex 1902- Pasta, stuffed, containing more than 20% by weight offish, crustaceans, 
molluscs or other aquatic invertebrates, sausages and the like or meat and 
meat offal of any kind, including fats of all kinds 
ex 2001- Cucumbers and gherkins, onions, mango chutney, fruit of the genus 
Capsicum other than sweet peppers or pimentos, mushrooms and olives, 
prepared or preserved by vinegar or acetic acid 
2002 and 2003 
ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, frozen, other than products of heading 2006, excluding potatoes in 
the form of flour or meal and flakes of sweet corn 
ex 2005 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, not frozen, other than products of heading 2006, excluding potato 
and sweet corn products 
2006 and 2007 
ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or 
preserved, whether or not containing added sugar or other sweetening 
matter or spirit, not elsewhere specified or included, excluding peanut 
butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of 
plants containing 5% or more by weight of starch, vine leaves, hop shoots 
and other similar edible parts of plants 
2009 
ex 2106 - Flavoured and coloured sugars, syrups and molasses 
2204 
2206 
ex 2207 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol 
or higher obtained from agricultural produce listed here 
ex 2208 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80% vol obtained from agricultural produce listed here. 
2209 
Chapter 23 
2401 
4501 
5301 and 5302 
h 
Article 2 
That Decision shall enter into force on 1 January 1999. 
Done at 
For the Association Council 
The President 
IS 
FINANCIAL STATEMENT 
1. Budget heading: Chapter 12, Article 120 
2. Legal basis: Article 113 of the Treaty 
3. Titles of the agreements in question: 
Proposal for an amendment to the definition of the concept of "originating 
products" and the methods of administrative cooperation set out in Protocol 4 to 
the different Europe Agreements between the EC and the CEECs, the Baltic 
States and Slovenia and the Agreement on the European Economic Area, and in 
Protocol 3 to the free trade agreements between the EEC and the EFTA countries 
4. Purpose: 
To allow Central and Eastern European countries to continue applying flat rates 
where drawback is prohibited or exemption from customs duties is granted. 
To extend the system to industrial products originating in Turkey and simplify or 
correct certain rules, particularly those on determining which country is to be 
considered the originating country. 
5. Financial implications: 
As, for the purposes of industrial products, Turkey is already in a customs union 
with the Community and these products are therefore already zero rated when 
imported into the Community, and as the purpose of the amendments is essentially 
to facilitate trade or simplify administrative tasks, this proposal would not seem to 
have any major financial implications. 
/& 
Proposal for a 
98/ 0255 (ACC) 
COUNCIL DECISION 
on a Community position on an amendment to Protocol 4 
on the definition of the concept of "originating products" 
and methods of administrative cooperation set out in 
the Europe Agreement between the 
European Communities and the Czech Republic 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 thereof, 
Having regard to Article 2(1) of the Council and Commission Decision of 19 December 
1994 on the conclusion of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and Czech Republic, of 
the other part, 
Having regard to the Commission proposal, 
Whereas Article 38 of Protocol 4 to the said Europe Agreement provides that the 
Association Council may amend the provisions of the Protocol, 
HAS DECIDED: 
The position to be adopted by the Community within the Association Council created by 
virtue of Article 104 of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and the Czech Republic, 
of the other part, on an amendment to Protocol 4 on the definition of the concept of 
"originating products" and methods of administrative cooperation set out in the 
Agreement shall be based on the draft Association Council decision annexed to this 
Decision. 
Done at Brussels, 
For the Council 
The President 
n-
EUROPE AGREEMENT 
establishing an association between the European Communities and their Member 
States, of the one part, and 
the Czech Republic, of the other part 
DRAFT 
Decision No /.. of the Association Council 
of... 
amending Protocol 4 on the definition of the concept of "originating products" and 
methods of administrative cooperation 
THE ASSOCIATION COUNCIL, 
Having regard to the Europe Agreement establishing an association between the European 
Communities and their Member States, of the one part, and the Czech Republic, of the 
other part, signed in Brussels on 4 October 1993 and in particular Article 38 of Protocol 4 
thereof, 
Whereas the definition of the term "originating products" needs to be amended to ensure 
the proper operation of the extended system of cumulation which permits the use of 
materials originating in the European Community, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the 
European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and 
Switzerland; 
Whereas it would seem advisable to maintain in operation until 31 December 2000 the 
system of flat rate charges provided for in Article 15 in connection with the prohibition of 
drawback and exemption from customs duty; 
Whereas, in view of the particular arrangement on industrial products obtaining between 
the Community and Turkey, it would also be appropriate to extend the cumulation system 
to such products originating in Turkey; 
Whereas to facilitate trade and simplify administrative tasks it would be desirable to 
amend the wording of Articles 3, 4 and 12; 
Whereas, to take account of changes in processing techniques and shortages of certain 
raw materials, some corrections must be made to the list of working and processing 
requirements which non-originating materials have to fulfil to qualify for originating 
status, 
HAS DECIDED AS FOLLOWS : 
Article 1 
Protocol 4 on the definition of the concept of "originating products" and methods of 
administrative cooperation is hereby amended as follows: 
19 
1. Article l(i) shall be replaced by: 
"(i) 'added value' shall be taken to be the ex-works price minus the customs 
value of each of the materials incorporated which originate in the other 
countries referred to in Articles 3 and 4 or, where the customs value is not 
known or cannot be ascertained, the first price verifiably paid for the 
products in the Community or the Cz,^ph Republic." 
2. Articles 3 and 4 shall be replaced by: 
Article 3 
Cumulation in the European Community 
1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be 
considered as originating in the Community if such products are obtained there, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between the 
Community and each of these countries, provided that the working or processing carried 
out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall 
not be necessary that such materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in the Community does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in the Community only where the value added there is greater than the value of the 
materials used originating in any one of the other countries referred to in paragraph 1. If 
this is not so, the product obtained shall be considered as originating in the country which 
accounts for the highest value of originating materials used in the manufacture in the 
Community. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the Community, retain their origin if exported into 
one of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Community shall provide the Czech Republic, through the European Commission 
with details of the Agreements and their corresponding rules of origin, which are applied 
with the other countries referred to in paragraph 1. The European Commission shall 
publish in the Official Journal of the European Communities (C Series) the date on which 
the cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
K 
Article 4 
Cumulation in the Czech Republic 
1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be 
considered as originating in the Czech Republic if such products are obtained there, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between the 
Czech Republic and each of these countries, provided that the working or processing 
carried out in the Czech Republic goes beyond that referred to in Article 7 of this 
Protocol. It shall not be necessary that such materials have undergone sufficient working 
or processing. 
2. Where the working or processing carried out in the Czech Republic does not go beyond 
the operations referred to in Article 7, the product obtained shall be considered as 
originating in the Czech Republic only where the value added there is greater than the 
value of the materials used originating in any one of the other countries referred to in 
paragraph 1. If this is not so, the product obtained shall be considered as originating in the 
country which accounts for the highest value of originating materials used in the 
manufacture in the Czech Republic. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the Czech Republic, retain their origin if exported 
into one of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Czech Republic shall provide the Community, through the European Commission 
with details of the Agreements and their corresponding rules of origin, which are applied 
with the other countries referred to in paragraph 1. The European Commission shall 
publish in the Official Journal of the European Communities (C Series) the date on which 
the cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
3. Article 12 shall be replaced by the following: 
"1. Except as provided for in Article 2(1 )(c), Articles 3 and 4 and paragraph 3 of 
this Article, the conditions for acquiring originating status set out in Title II 
must continue to be fulfilled at all times in the Community or the Czech 
Republic. 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
o&> 
2. Except as provided for in Articles 3 and 4, where originating goods exported 
from the Community or the Czech Republic to another country return, they 
must be considered as non-originating, unless it can be demonstrated to the 
satisfaction of the customs authorities that: 
(a) the returning goods are the same as those that were exported; and 
(b) they have not undergone any operatron beyond that necessary to preserve 
them in good condition while in that country or while being exported. 
3. The acquisition of originating status in accordance with the conditions set out 
in Title II shall not be affected by working or processing done outside the 
Community or the Czech Republic on materials exported from the Community 
or the Czech Republic and subsequently reimported there, provided: 
(a) the said materials are wholly obtained in the Community or the Czech 
Republic or have undergone working or processing beyond the insufficient 
operations listed in Article 7 prior to being exported; and 
(b) it can be demonstrated to the satisfaction of the customs authorities that: 
i) the reimported goods have been obtained by working or processing 
the exported materials; and 
ii) the total added value acquired outside the Community or the Czech 
Republic by applying the provisions of this Article does not exceed 
10% of the ex-works price of the end product for which originating 
status is claimed. 
4. For the purposes of paragraph 3, the conditions for acquiring originating 
status set out in Title II shall not apply to working or processing done outside 
the Community or the Czech Republic. But where, in the list in Annex II, a 
rule setting a maximum value for all the non-originating materials 
incorporated is applied in determining the originating status of the end 
product, the total value of the non-originating materials incorporated in the 
territory of the party concerned, taken together with the total added value 
acquired outside the Community or Bulgaria by applying the provisions of this 
Article, shall not exceed the stated percentage. 
5. For the purposes of applying the provisions of paragraphs *3 and 4, "total 
added value" shall be taken to mean all costs arising outside the Community 
or the Czech Republic, including the value of the materials incorporated there. 
6. The provisions of paragraphs 3 and 4 shall not apply to products which do not 
fulfil the conditions set out in the list in Annex II or which can be considered 
sufficiently worked or processed only if the general values fixed in Article 6(2) 
are applied. 
7. The provisions of paragraphs 3 and 4 shall not apply to products coming 
under Chapters 50 to 63 of the Harmonised System. 
8. Any working or processing of the kind covered by the provisions of this 
Article and done outside the Community or the Czech Republic shall be done 
under the outward processing arrangements, or similar arrangements." 
*.( 
4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase "referred* to4n-Article 4" 
shall be replaced by "referred to in Articles 3 and 4". 
5. In the last paragraph of Article 15(6) the date "31 December 1998" shall be 
replaced by "31 December 2000". 
6. In Article 26 the reference "C2/CP3" shall be replaced by "CN22/CN23". 
7. In Annex I, Note 5.2, "current conducting filaments" shall be added between 
"artificial man-made filaments" and "synthetic man-made staple fibres of 
polypropylene". 
8. In Annex I, Note 5.2 the fifth example ("A carpet with tufts ... are met.") shall be 
deleted. 
9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule 
shall be inserted: 
HS 
Heading 
No 
(1) 
2207 Description of product 
(2) 
Undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
80% vol or higher; 
ethyl alcohol and other 
spirits, denatured, of any 
strength. Working or processing of non-originating materials that 
confers originating status 
(3) or (4) 
Manufacture: 
- using materials not classified 
in headings 2207 or 2208 
fy 
10. In Annex II, the rule for Chapter 57 shall be replaced by: 
Chapter 
57 Carpets and other textile 
floor coverings: 
- Of needleloom felt 
Of other felt 
OUier Manufacture from (1): 
- natural fibres 
or 
- chemical materials or texUle pulp 
However: 
- polypropylene filament of 
heading 5402, 
- polypropylene fibres of heading 
5503 or 5506, 
- polypropylene filament tow of 
heading 5501, of which the 
denomination in all cases of a 
single filament or fibre is less 
than 9 decitex, may be used 
provided their value does not 
exceed 40% of the ex-works 
price of die product 
- jute fabric may be used as 
backing 
Manufacture from( 1 ) : 
- natural fibres not carded or 
combed or otherwise processed 
for spinning, 
or 
- chemical materials or textile pulp 
Manufacture from(l): 
-coir or jute yarn(a), 
- synthetic or artificial filament yam 
- natural fibres, or 
- man-made staple fibres not 
carded or combed or otherwise 
processed for spinning 
But jute fabric may be used as 
backing 
(a) The use of jute yam is authorised from 1.7.2000. 
31 
11. In Annex II, the rule for HS heading 7006 shall be replaced by: 
7006 Glass of headings 7003, 
7004 or 7005, bent, 
edgeworked, engraved, 
drilled, enamelled or 
otherwise worked, but 
not framed or fitted with 
other materials: 
- glass plate substrate 
coated with dielectric 
thin film, semi­
conductor grade, in 
accordance with 
SEMII standards1 
- other Manufacture from materials 
(substrates) of heading 7006 
Manufacture from materials 
of heading 7001 
12. In Annex II, the rule for HS heading 7601 shall be replaced by: 
7601 Unwrought aluminium Manufacture in which: 
- all the materials used are 
classified within a heading 
other than that of the 
product; and 
- the value of all the 
materials used does not 
exceed 50 % of the ex-
works price of the product 
or 
Manufacture by thermal or 
electrolytic treatment from 
unalloyed aluminium or 
waste and scrap of 
aluminium 
13. The following is added after Annex IV: 
"Annex V 
List of products originating in Turkey 
to which the provisions of Articles 3 and 4 do not apply, 
listed in the order of HS Chapters and Headings 
Chapter 1 
SEMII- Semiconductor Equipment and Materials Institute Incorporated. 
o&f 
Chapter 2 
Chapter 3 
0401 to 0402 
ex 0403 - Buttermilk, curdled milk and cream, yoghurt, képhir and other fermented 
or acidified milk and cream, whether or not concentrated or containing 
added sugar or other sweetening matter or flavoured or containing added 
fruit or cocoa 
0404 to 0410 
0504 
0511 
Chapter 6 
0701 to 0709 
ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen 
ex 0711- Vegetables, except sweet corn of heading 0711 90 30, provisionally 
preserved (for example, by sulphur dioxide gas, in brine, in sulphur water 
or in other preservative solutions), but unsuitable in that state for 
immediate consumption 
0712 to 0714 
Chapter 8 
ex Chapter 9 - Coffee, tea, and spices, excluding maté of heading 0903 
Chapter 10 
Chapter 11 
Chapter 12 
ex 1302 - Pectin 
1501tol514 
ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) 
and their fractions, whether or not refined, but not chemically modified 
ex 1516- Animal or vegetable fats and oils and their fractions, partly or wholly 
hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not 
refined, but not further prepared, excluding hydrogenated castor oil known 
as 'opal-wax' 
ex 1517 and 
ex 1518 - Margarines, imitation lard and other prepared edible fats 
ex 1522- Residues resulting from the treatment of fatty substances or animal or 
vegetable waxes, excluding degras 
Chapter 16 
1701 
ex 1702- Other sugars, including chemically pure lactose, maltose, glucose and 
fructose, in solid form; sugar syrups not containing added flavouring or 
colouring matter; artificial honey, whether or not mixed with natural 
honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 
1702 30 59, 1702 50 00 and 1702 90 10 
o?< 
1703 
1801 and 1802 
ex 1902- Pasta, stuffed, containing more than 20% by weight offish, crustaceans, 
molluscs or other aquatic invertebrates, sausages and the like or meat and 
meat offal of any kind, including fats of all kinds 
ex 2001- Cucumbers and gherkins, onions, mango chutney, fruit of the genus 
Capsicum other than sweet peppers or pimentos, mushrooms and olives, 
prepared or preserved by vinegar or acetic acid 
2002 and 2003 
ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, frozen, other than products of heading 2006, excluding potatoes in 
the form of flour or meal and flakes of sweet corn 
ex 2005 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, not frozen, other than products of heading 2006, excluding potato 
and sweet corn products 
2006 and 2007 
ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or 
preserved, whether or not containing added sugar or other sweetening 
matter or spirit, not elsewhere specified or included, excluding peanut 
butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of 
plants containing 5% or more by weight of starch, vine leaves, hop shoots 
and other similar edible parts of plants 
2009 
ex 2106 - Flavoured and coloured sugars, syrups and molasses 
2204 
2206 
ex 2207 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol 
or higher obtained from agricultural produce listed here 
ex 2208 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80% vol obtained from agricultural produce listed here. 
2209 
Chapter 23 
2401 
4501 
5301 and 5302 
da 
Article 2 
That Decision shall enter into force on 1 January 1999. 
Done at 
For the Association Council 
The President 
^ 
FINANCIAL STATEMENT 
1. Budget heading: Chapter 12, Article 120 
2. Legal basis: Article 113 of the Treaty 
3. Titles of the agreements in question: 
Proposal for an amendment to the definition of the concept of "originating 
products" and the methods of administrative cooperation set out in Protocol 4 to 
the different Europe Agreements between the EC and the CEECs, the Baltic 
States and Slovenia and the Agreement on the European Economic Area, and in 
Protocol 3 to the free trade agreements between the EEC and the EFTA countries 
4. Purpose: 
To allow Central and Eastern European countries to continue applying flat rates 
where drawback is prohibited or exemption from customs duties is granted. 
To extend the system to industrial products originating in Turkey and simplify or 
correct certain rules, particularly those on determining which country is to be 
considered the originating country. 
5. Financial implications: 
As, for the purposes of industrial products, Turkey is already in a customs union 
with the Community and these products are therefore already zero rated when 
imported into the Community, and as the purpose of the amendments is essentially 
to facilitate trade or simplify administrative tasks, this proposal would not seem to 
have any major financial implications. 
M 
Proposai for a 98/0256 (ACQ 
COUNCIL DECISION 
on a Community position on an amendment to Protocol 4 
on the definition of the concept of "originating products'9 
and methods of administrative cooperation set out in 
the Europe Agreement between the 
European Communities and Poland 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 thereof, 
Having regard to Article 2(1) of the Council and Commission Decision of 13 December 
1993 on the conclusion of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and the Republic of 
Poland, of the other part, 
Having regard to the Commission proposal, 
Whereas Article 38 of Protocol 4 to the said Europe Agreement provides that the 
Association Council may amend the provisions of the Protocol, 
HAS DECIDED: 
The position to be adopted by the Community within the Association Council created by 
virtue of Article 102 of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and the Republic of 
Poland, of the other part, on an amendment to Protocol 4 on the definition of the concept 
of "originating products" and methods of administrative cooperation set out in the 
Agreement shall be based on the draft Association Council decision annexed to this 
Decision. 
Done at Brussels, 
For the Council 
The President 
£<7 
EUROPE AGREEMENT 
establishing an association between the European Communities and their Member 
States, of the one part, and 
the Republic of Poland, of the other part 
DRAFT 
Decision No .../.. of the Association Council 
of... 
amending Protocol 4 on the definition of the concept of "originating products" and 
methods of administrative cooperation 
THE ASSOCIATION COUNCIL, 
Having regard to the Europe Agreement establishing an association between the European 
Communities and their Member States, of the one part, and the Republic of Poland, of the 
other part, signed in Brussels on 16 December 1991 and in particular Article 38 of 
Protocol 4 thereof, 
Whereas the definition of the term "originating products" needs to be amended to ensure 
the proper operation of the extended system of cumulation which permits the use of 
materials originating in the European Community, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the 
European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and 
Switzerland; 
Whereas it would seem advisable to maintain in operation until 31 December 2000 the 
system of flat rate charges provided for in Article 15 in connection with the prohibition of 
drawback and exemption from customs duty; 
Whereas, in view of the particular arrangement on industrial products obtaining between 
the Community and Turkey, it would also be appropriate to extend the cumulation system 
to such products originating in Turkey; 
Whereas to facilitate trade and simplify administrative tasks it would be desirable to 
amend the wording of Articles 3, 4 and 12; 
Whereas, to take account of changes in processing techniques and shortages of certain 
raw materials, some corrections must be made to the list of working and processing 
requirements which non-originating materials have to fulfil to qualify for originating 
status, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Protocol 4 on the definition of the concept of "originating products" and methods of 
administrative cooperation is hereby amended as follows: 
So 
1. Article l(i) shall be replaced by: 
"(i) * added value' shall be taken to be the ex-works price minus the customs 
value of each of the materials incorporated which originate in the other 
countries referred to in Articles 3 and 4 or, where the customs value is not 
known or cannot be ascertained, the first price verifiably paid for the 
products in the Community or Poland." 
2. Articles 3 and 4 shall be replaced by: 
Article 3 
Cumulation in the European Community 
1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be 
considered as originating in the Community if such products are obtained there, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between the 
Community and each of these countries, provided that the working or processing carried 
out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall 
not be necessary that such materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in the Community does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in the Community only where the value added there is greater than the value of the 
materials used originating in any one of the other countries referred to in paragraph 1. If 
this is not so, the product obtained shall be considered as originating in the country which 
accounts for the highest value of originating materials used in the manufacture in the 
Community. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the Community, retain their origin if exported into 
one of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Community shall provide Poland, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
3/ 
Article 4 
Cumulation in Poland 
1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be 
considered as originating in Bulgaria if such products are obtained there, incorporating 
materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, 
Switzerland (including Liechtenstein)1 or Turkey2 in accordance with the provisions of 
the Protocol on rules of origin annexed to the Agreements between Poland and each of 
these countries, provided that the working or processing carried out in Poland goes 
beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such 
materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in Poland does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in Poland only where the value added there is greater than the value of the materials used 
originating in any one of the other countries referred to in paragraph 1. If this is not so, 
the product obtained shall be considered as originating in the country which accounts for 
the highest value of originating materials used in the manufacture in Poland. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in Poland, retain their origin if exported into one of 
these countries. 
4. The cumulation provided for in this Article may only be. applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
Poland shall provide the Community, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
3. Article 12 shall be replaced by the following: 
"1. Except as provided for in Article 2(1 )(c), Articles 3 and 4 and paragraph 3 of 
this Article, the conditions for acquiring originating status set out in Title II 
must continue to be fulfilled at all times in the Community or Poland. 
2. Except as provided for in Articles 3 and 4, where originating goods exported 
from the Community or Poland to another country return, they must be 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
3C 
considered as non-originating, unless it can be demonstrated to the. satisfaction 
of the customs authorities that: 
(a) the returning goods are the same as those that were exported; and 
(b) they have not undergone any operation beyond that necessary to preserve 
them in good condition while in that country or while being exported. 
3. The acquisition of originating status in accordance with the conditions set out 
in Title II shall not be affected by working or processing done outside the 
Community or Poland on materials exported from the Community or Poland 
and subsequently reimported there, provided: 
(a) the said materials are wholly obtained in the Community or Poland or have 
undergone working or processing beyond the insufficient operations listed 
in Article 7 prior to being exported; and 
(b) it can be demonstrated to the satisfaction of the customs authorities that: 
i) the reimported goods have been obtained by working or processing 
the exported materials; and 
ii) the total added value acquired outside the Community or Poland by 
applying the provisions of this Article does not exceed 10% of the 
ex-works price of the end product for which originating status is 
claimed. 
4. For the purposes of paragraph 3, the conditions for acquiring originating 
status set out in Title II shall not apply to working or processing done outside 
the Community or Poland. But where, in the list in Annex II, a rule setting a 
maximum value for all the non-originating materials incorporated is applied in 
determining the originating status of the end product, the total value of the 
non-originating materials incorporated in the territory of the party concerned, 
taken together with the total added value acquired outside the Community or 
Poland by applying the provisions of this Article, shall not exceed the stated 
percentage. 
5. For the purposes of applying the provisions of paragraphs 3 and 4, "total 
added value" shall be taken to mean all costs arising outside the Community 
or Poland, including the value of the materials incorporated there. 
6. The provisions of paragraphs 3 and 4 shall not apply to products which do not 
fulfil the conditions set out in the list in Annex II or which can be considered 
sufficiently worked or processed only if the general values fixed in Article 6(2) 
are applied. 
7. The provisions of paragraphs 3 and 4 shall not apply to products coming 
under Chapters 50 to 63 of the Harmonised System. 
8. Any working or processing of the kind covered by the provisions of this 
Article and done outside the Community or Poland shall be done under the 
outward processing arrangements, or similar arrangements." 
33 
4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase "referred 4Q .in* Article 4" 
shall be replaced by "referred to in Articles 3 and 4". v * 
5. In the last paragraph of Article 15(6) the date "31 December 1998" shall be 
replaced by "31 December 2000". 
6. In Article 26 the reference "C2/CP3" shall be replaced by "CN22/CN23". 
7. In Annex I, Note 5.2, "current conducting filaments" shall be added between 
"artificial man-made filaments" and "synthetic man-made staple fibres of 
polypropylene". 
8. In Annex I, Note 5.2 the fifth example ("A carpet with tufts ... are met.") shall be 
deleted. 
9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule 
shall be inserted: 
HS 
Heading 
No 
(1) 
2207 Description of product 
(2) 
Undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
80% vol or higher; 
ethyl alcohol and other 
spirits, denatured, of any 
strength. Working or processing of non-originating materials that 
confers originating status 
(3) ' or (4) 
Manufacture: 
- using materials not classified 
in headings 2207 or 2208 
J^r 
10. In Annex II, the rule for Chapter 57 shall be replaced by: 
Chapter 
57 Carpets and other textile 
floor coverings: 
- Of needleloom felt 
Of other felt 
OUier Manufacture from (1): 
- natural fibres 
or 
- chemical materials or textile pulp 
However: 
- polypropylene filament of 
heading 5402, 
- polypropylene fibres of heading 
5503 or 5506, 
- polypropylene filament tow of 
heading 5501, of which the 
denomination in all cases of a 
single filament or fibre is less 
than 9 decitex, may be used 
provided their value does not 
exceed 40% of the ex-works 
price of the product 
- jute fabric may be used as 
backing 
Manufacture from(l): 
- natural fibres not carded or 
combed or otherwise processed 
for spinning, 
or 
- chemical materials or textile pulp 
Manufacture from(l): 
- coir or jute yarn(a), 
- syndietic or artificial filament yam 
- natural fibres, or 
- man-made staple fibres not 
carded or combed or otherwise 
processed for spinning 
But jute fabric may be used as 
backing 
*a' The use of jute yam is authorised from 1.7.2000. 
-T> 
11. In Annex II, the rule for HS heading 7006 shall be replaced by: 
7006 Glass of headings 7003, 
7004 or 7005, bent, 
edgeworked, engraved, 
drilled, enamelled or 
otherwise worked, but 
not framed or fitted with 
other materials : 
- glass plate substrate 
coated with dielectric 
thin film, semi­
conductor grade,in 
accordance with 
SEMII standards1 
- other Manufacture from materials 
(substrates) of heading 7006 
Manufacture from materials 
of heading 7001 
12. In Annex II, the rule for HS heading 7601 shall be replaced by: 
7601 Unwrought aluminium Manufacture in which: 
- all the materials used are 
classified within a heading 
other than that of the 
product; and 
- the value of all the 
materials used does not 
exceed 50 % of the ex-
works price of the product 
or 
Manufacture by thermal or 
electrolytic treatment from 
unalloyed aluminium or 
waste and scrap of 
aluminium 
13. The following is added after Annex IV: 
"Annex V 
List of products originating in Turkey 
to which the provisions of Articles 3 and 4 do not apply, 
listed in the order of HS Chapters and Headings 
Chapter 1 
SEMIl- Semiconductor Equipment and Materials Institute Incorporated. 
3C 
Chapter 2 
Chapter 3 
0401 to 0402 
ex 0403 - Buttermilk, curdled milk and cream, yoghurt, képhir and other fermented 
or acidified milk and cream, whether or not concentrated or containing 
added sugar or other sweetening matter or flavoured or containing added 
fruit or cocoa 
0404 to 0410 
0504 
0511 
Chapter 6 
0701 to 0709 
ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen 
ex 0711- Vegetables, except sweet corn of heading 0711 90 30, provisionally 
preserved (for example, by sulphur dioxide gas, in brine, in sulphur water 
or in other preservative solutions), but unsuitable in that state for 
immediate consumption 
0712 to 0714 
Chapter 8 
ex Chapter 9 - Coffee, tea, and spices, excluding maté of heading 0903 
Chapter 10 
Chapter 11 
Chapter 12 
ex 1302 - Pectin 
1501tpl514 
ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) 
and their fractions, whether or not refined, but not chemically modified 
ex 1516- Animal or vegetable fats and oils and their fractions, partly or wholly 
hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not 
refined, but not further prepared, excluding hydrogenated castor oil known 
as 'opal-wax' 
ex 1517 and 
ex 1518 - Margarines, imitation lard and other prepared edible fats 
ex 1522- Residues resulting from the treatment of fatty substances or animal or 
vegetable waxes, excluding degras 
Chapter 16 
1701 
ex 1702- Other sugars, including chemically pure lactose, maltose, glucose and 
fructose, in solid form; sugar syrups not containing added flavouring or 
colouring matter; artificial honey, whether or not mixed with natural 
honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 
1702 30 59, 1702 50 00 and 1702 90 10 
3?-
1703 
1801 and 1802 
ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans, 
molluscs or other aquatic invertebrates, sausages and the like or meat and 
meat offal of any kind, including fats of all kinds 
ex 2001- Cucumbers and gherkins, onions, mango chutney, fruit of the genus 
Capsicum other than sweet peppers or pimentos, mushrooms and olives, 
prepared or preserved by vinegar or acetic acid 
2002 and 2003 
ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, frozen, other than products of heading 2006, excluding potatoes in 
the form of flour or meal and flakes of sweet corn 
ex 2005 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, not frozen, other than products of heading 2006, excluding potato 
and sweet corn products 
2006 and 2007 
ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or 
preserved, whether or not containing added sugar or other sweetening 
matter or spirit, not elsewhere specified or included, excluding peanut 
butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of 
plants containing 5% or more by weight of starch, vine leaves, hop shoots 
and other similar edible parts of plants 
2009 
ex 2106 - Flavoured and coloured sugars, syrups and molasses 
2204 
2206 
ex 2207 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol 
or higher obtained from agricultural produce listed here 
ex 2208 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80% vol obtained from agricultural produce listed here. 
2209 
Chapter 23 
2401 
4501 
5301 and 5302 
3? 
Article 2 
That Decision shall enter into force on 1 January 1999. 
Done at 
For the Association Council 
The President 
31 
FINANCIAL STATEMENT 
1- Budget heading: Chapter 12, Article 120 
2. Legal basis: Article 113 of the Treaty 
3. Titles of the agreements in question: 
Proposal for an amendment to the definition of the concept of "originating 
products" and the methods of administrative cooperation set out in Protocol 4 to 
the different Europe Agreements between the EC and the CEECs, the Baltic 
States and Slovenia and the Agreement on the European Economic Area, and in 
Protocol 3 to the free trade agreements between the EEC and the EFTA countries 
4. Purpose: 
To allow Central and Eastern European countries to continue applying flat rates 
where drawback is prohibited or exemption from customs duties is granted. 
To extend the system to industrial products originating in Turkey and simplify or 
correct certain rules, particularly those on determining which country is to be 
considered the originating country. 
5. Financial implications: 
As, for the purposes of industrial products, Turkey is already in a customs union 
with the Community and these products are therefore already zero rated when 
imported into the Community, and as the purpose of the amendments is essentially 
to facilitate trade or simplify administrative tasks, this proposal would not seem to 
have any major financial implications. 
Hà 
Proposal for a 98/0257 (ACC) 
COUNCIL DECISION 
on a Community position on an amendment to Protocol 3 
on the definition of the concept of "originating products" 
and methods of administrative cooperation set out in 
the Europe Agreement between the 
European Communities and the Republic of Estonia 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 thereof, 
Having regard to Article 2(1) of the Council and Commission Decision of 19 December 
1997 on the conclusion of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and Estonia, of the 
other part, 
Having regard to the Commission proposal, 
Whereas Article 38 of Protocol 3 to the said Europe Agreement provides that the 
Association Council may amend the provisions of the Protocol, 
HAS DECIDED: 
The position to be adopted by the Community within the Association Council created by 
virtue of Article 109 of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and the Republic of 
Estonia, of the other part, on an amendment to Protocol 3 on the definition of the concept 
of "originating products" and methods of administrative cooperation set out in the 
Agreement shall be based on the draft Association Council decision annexed to this 
Decision. 
Done at Brussels, 
For the Council 
The President 
<* 
EUROPE AGREEMENT 
establishing an association between the European Communities and their Member 
States, of the one part, and 
the Republic of Estonia, of the other part 
DRAFT 
Decision No .../.. of the Association Council 
of... 
amending Protocol 3 on the definition of the concept of "originating products" and 
methods of administrative cooperation 
THE ASSOCIATION COUNCIL, 
Having regard to the Europe Agreement establishing an association between the European 
Communities and their Member States, of the one part, and the Republic of Estonia, of 
the other part, signed in Brussels on 12 June 1995 and in particular Article 38 of Protocol 
4 thereof, 
Whereas the definition of the term "originating products" needs to be amended to ensure 
the proper operation of the extended system of cumulation which permits the use of 
materials originating in the European Community, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the 
European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and 
Switzerland; 
Whereas it would seem advisable to maintain in operation until 31 December 2000 the 
system of flat rate charges provided for in Article 15 in connection with the prohibition of 
drawback and exemption from customs duty; 
Whereas, in view of the particular arrangement on industrial products obtaining between 
the Community and Turkey, it would also be appropriate to extend the cumulation system 
to such products originating in Turkey; 
Whereas to facilitate trade and simplify administrative tasks it would be desirable to 
amend the wording of Articles 3, 4 and 12; 
Whereas, to take account of changes in processing techniques and shortages of certain 
raw materials, some corrections must be made to the list of working and processing 
requirements which non-originating materials have to fulfil to qualify for originating 
status, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Protocol 3 on the definition of the concept of "originating products" and methods of 
administrative cooperation is hereby amended as follows: 
<a 
1. Article l(i) shall be replaced by: 
"(i) 'added value' shall be taken to be the ex-works price minus the customs 
value of each of the materials incorporated which originate in the other 
countries referred to in Articles 3 and 4 or, where the customs value is not 
known or cannot be ascertained, the first price verifiably paid for the 
products in the Community or Estonia." 
2. Articles 3 and 4 shall be replaced by: 
Article 3 
Cumulation in the European Community 
1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be 
considered as originating in the Community if such products are obtained there, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between the 
Community and each of these countries, provided that the working or processing carried 
out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall 
not be necessary that such materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in the Community does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in the Community only where the value added there is greater than the value of the 
materials used originating in any one of the other countries referred to in paragraph 1. If 
this is not so, the product obtained shall be considered as originating in the country which 
accounts for the highest value of originating materials used in the manufacture in the 
Community. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the Community, retain their origin if exported into 
one of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Community shall provide Estonia, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
(43 
Article 4 
Cumulation in Estonia 
1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be 
considered as originating in Estonia if such products are obtained there, incorporating 
materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, 
Switzerland (including Liechtenstein)1 or Turkey2 in accordance with the provisions of 
the Protocol on rules of origin annexed to the Agreements between Estonia and each of 
these countries, provided that the working or processing carried out in Estonia goes 
beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such 
materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in Estonia does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in Estonia only where the value added there is greater than the value of the materials used 
originating in any one of the other countries referred to in paragraph 1. If this is not so, 
the product obtained shall be considered as originating in the country which accounts for 
the highest value of originating materials used in the manufacture in Estonia. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in Estonia, retain their origin if exported into one of 
these countries. 
4. The cumulation provided for in this Article may only be. applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
Estonia shall provide the Community, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
3. Article 12 shall be replaced by the following: 
"1. Except as provided for in Article 2(1 )(c), Articles 3 and 4 and paragraph 3 of 
this Article, the conditions for acquiring originating status set out in Title II 
must continue to be fulfilled at all times in the Community or Estonia. 
2. Except as provided for in Articles 3 and 4, where originating goods exported 
from the Community or Estonia to another country return, they must be 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
Hi 
considered as non-originating, unless it can be demonstrated ta the -satisfaction 
of the customs authorities that: 
(a) the returning goods are the same as those that were exported; and 
(b) they have not undergone any operation beyond that necessary to preserve 
them in good condition while in that country or while being exported. 
3. The acquisition of originating status in accordance with the conditions set out 
in Title II shall not be affected by working or processing done outside the 
Community or Estonia on materials exported from the Community or Estonia 
and subsequently reimported there, provided: 
(a) the said materials are wholly obtained in the Community or Estonia or have 
undergone working or processing beyond the insufficient operations listed 
in Article 7 prior to being exported; and 
(b) it can be demonstrated to the satisfaction of the customs authorities that: 
i) the reimported goods have been obtained by working or processing 
the exported materials; and 
ii) the total added value acquired outside the Community or Estonia by 
applying the provisions of this Article does not exceed 10% of the 
ex-works price of the end product for which originating status is 
claimed. 
4. For the purposes of paragraph 3, the conditions for acquiring originating 
status set out in Title II shall not apply to working or processing done outside 
the Community or Estonia. But where, in the list in Annex II, a rule setting a 
maximum value for all the non-originating materials incorporated is applied in 
determining the originating status of the end product, the total value of the 
non-originating materials incorporated in the territory of the party concerned, 
taken together with the total added value acquired outside the Community or 
Estonia by applying the provisions of this Article, shall not exceed the stated 
percentage. 
5. For the purposes of applying the provisions of paragraphs 3 and 4, "total 
added value" shall be taken to mean all costs arising outside the Community 
or Estonia, including the value of the materials incorporated there. 
6. The provisions of paragraphs 3 and 4 shall not apply to products which do not 
fulfil the conditions set out in the list in Annex II or which can be considered 
sufficiently worked or processed only if the general values fixed in Article 6(2) 
are applied. 
7. The provisions of paragraphs 3 and 4 shall not apply to products coming 
under Chapters 50 to 63 of the Harmonised System. 
8. Any working or processing of the kind covered by the provisions of this 
Article and done outside the Community or Estonia shall be done under the 
outward processing arrangements, or similar arrangements." 
ff 
4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase "referred to in Article 4" 
shall be replaced by "referred to in Articles 3 and 4". 
5. In the last paragraph of Article 15(6) the date "31 December 1998" shall be 
replaced by "31 December 2000". 
6. In Article 26 the reference "C2/CP3" shall be replaced by "CN22/CN23". 
7. In Annex I, Note 5.2, "current conducting filaments" shall be added between 
"artificial man-made filaments" and "synthetic man-made staple fibres of 
polypropylene". 
8. In Annex I, Note 5.2 the fifth example ("A carpet with tufts ... are met.") shall be 
deleted. 
9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule 
shall be inserted: 
HS 
Heading 
No 
(1) 
2207 Description of product 
(2) 
Undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
80% vol or higher; 
ethyl alcohol and other 
spirits, denatured, of any 
strength. Working or processing of non-originating materials that 
confers originating status 
(3) or (4) 
Manufacture: 
- using materials not classified 
in headings 2207 or 2208 
H(, 
10. In Annex II, the rule for Chapter 57 shall be replaced by: 
Chapter 
57 Carpets and other textile 
floor coverings: 
- Of needleloom felt 
-Of other felt 
-Other Manufacture from (1): 
- natural fibres 
or 
- chemical materials or textile pulp 
However: 
- polypropylene filament of 
heading 5402, 
- polypropylene fibres of heading 
5503 or 5506, 
- polypropylene filament tow of 
heading 5501, of which the 
denomination in all cases of a 
single filament or fibre is less 
than 9 decitex, may be used 
provided their value does not 
exceed 40% of the ex-works 
price of the product 
- jute fabric may be used as 
backing 
Manufacture from(l): 
- natural fibres not carded or 
combed or otherwise processed 
for spinning, 
or 
- chemical materials or textile pulp 
Manufacture from(l): 
- coir or jute yarn(a), 
- syndietic or artificial filament yarn 
- natural fibres, or 
- man-made staple fibres not 
carded or combed or otherwise 
processed for spinning 
But jute fabric may be used as 
backing 
(a) The use of jute yam is authorised from 1.7.2000. 
^ 
11. In Annex II, the rule for HS heading 7006 shall be replaced by: 
7006 Glass of headings 7003, 
7004 or 7005, bent, 
edgeworked, engraved, 
drilled, enamelled or 
otherwise worked, but 
not framed or fitted with 
other materials : 
- glass plate substrate 
coated with dielectric 
thin film, semi­
conductor grade, in 
accordance with 
SEMII standards1 
- other Manufacture from materials 
(substrates) of heading 7006 
Manufacture from materials 
of heading 7001 
12. In Annex II, the rule for HS heading 7601 shall be replaced by: 
7601 Unwrought aluminium Manufacture in which: 
- all the materials used are 
classified within a heading 
other than that of the 
product; and 
- the value of all the 
materials used does not 
exceed 50 % of the ex-
works price of the product 
or 
Manufacture by thermal or 
electrolytic treatment from 
unalloyed aluminium or 
waste and scrap of 
aluminium 
13. The following is added after Annex IV: 
"Annex V 
List of products originating in Turkey 
to which the provisions of Articles 3 and 4 do not apply, 
listed in the order of HS Chapters and Headings 
Chapter 1 
SEMI I- Semiconductor Equipment and Materials Institute Incorporated. 
^ 
Chapter 2 
Chapter 3 
0401 to 0402 
ex 0403 -
0404 to 0410 
0504 
0511 
Chapter 6 
0701 to 0709 
ex 0710 -
ex 0711-
0712 to 0714 
Chapter 8 
ex Chapter 9 -
Chapter 10 
Chapter 11 
Chapter 12 
ex 1302-
1501to!514 
ex 1515-
exl516-Buttermilk, curdled milk and cream, yoghurt, képhir and other fermented 
or acidified milk and cream, whether or not concentrated or containing 
added sugar or other sweetening matter or flavoured or containing added 
fruit or cocoa 
ex 1517 and 
ex 1518-
ex 1522-
Chapter 16 
1701 
ex 1702-Vegetables (uncooked or cooked by steaming or boiling in water), frozen 
Vegetables, except sweet corn of heading 0711 90 30, provisionally 
preserved (for example, by sulphur dioxide gas, in brine, in sulphur water 
or in other preservative solutions), but unsuitable in that state for 
immediate consumption 
Coffee, tea, and spices, excluding maté of heading 0903 
Pectin 
Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) 
and their fractions, whether or not refined, but not chemically modified 
Animal or vegetable fats and oils and their fractions, partly or wholly 
hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not 
refined, but not further prepared, excluding hydrogenated castor oil known 
as 'opal-wax' 
Margarines, imitation lard and other prepared edible fats 
Residues resulting from the treatment of fatty substances or animal or 
vegetable waxes, excluding degras 
Other sugars, including chemically pure lactose, maltose, glucose and 
fructose, in solid form; sugar syrups not containing added flavouring or 
colouring matter; artificial honey, whether or not mixed with natural 
honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 
1702 30 59, 1702 50 00 and 1702 90 10 
HI 
1703 
1801 and 1802 
ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans, 
molluscs or other aquatic invertebrates, sausages and the like or meat and 
meat offal of any kind, including fats of all kinds 
ex 2001 - Cucumbers and gherkins, onions, mango chutney, fruit of the genus 
Capsicum other than sweet peppers or pimentos, mushrooms and olives, 
prepared or preserved by vinegar or acetic acid 
2002 and 2003 
ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, frozen, other than products of heading 2006, excluding potatoes in 
the form of flour or meal and flakes of sweet corn 
ex 2005 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, not frozen, other than products of heading 2006, excluding potato 
and sweet corn products 
2006 and 2007 
ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or 
preserved, whether or not containing added sugar or other sweetening 
matter or spirit, not elsewhere specified or included, excluding peanut 
butter, palm hearts, maize, yarns, sweet potatoes and similar edible parts of 
plants containing 5% or more by weight of starch, vine leaves, hop shoots 
and other similar edible parts of plants 
2009 
ex 2106 - Flavoured and coloured sugars, syrups and molasses 
2204 
2206 
ex 2207 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol 
or higher obtained from agricultural produce listed here 
ex 2208 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80% vol obtained from agricultural produce listed here. 
2209 
Chapter 23 
2401 
4501 
5301 and 5302 
9> 
Article 2 
That Decision shall enter into force on 1 January 1999. 
Done at 
For the Association Council 
The President 
57 
FINANCIAL STATEMENT 
1. Budget heading: Chapter 12, Article 120 
2. Legal basis: Article 113 of the Treaty 
3. Titles of the agreements in question: 
Proposal for an amendment to the definition of the concept of "originating 
products" and the methods of administrative cooperation set out in Protocol 4 to 
the different Europe Agreements between the EC and the CEECs, the Baltic 
States and Slovenia and the Agreement on the European Economic Area, and in 
Protocol 3 to the free trade agreements between the EEC and the EFTA countries 
4. Purpose: 
To allow Central and Eastern European countries to continue applying flat rates 
where drawback is prohibited or exemption from customs duties is granted. 
To extend the system to industrial products originating in Turkey and simplify or 
correct certain rules, particularly those on determining which country is to be 
considered the originating country. 
5. Financial implications: 
As, for the purposes of industrial products, Turkey is already in a customs union 
with the Community and these products are therefore already zero rated when 
imported into the Community, and as the purpose of the amendments is essentially 
to facilitate trade or simplify administrative tasks, this proposal would not seem to 
have any major financial implications. 
fZ 
98/ 0258 (ACC) Proposal for a 
COUNCIL DECISION 
on a Community position on an amendment to Protocol 3 
on the definition of the concept of ^'originating products" 
and methods of administrative cooperation set out in 
the Europe Agreement between the 
European Communities and the Republic of Latvia 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 thereof, 
Having regard to Article 2(1) of the Council and Commission Decision of 19 December 
1997 on the conclusion of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and the Republic of 
Latvia, of the other part, 
Having regard to the Commission proposal, 
Whereas Article 38 of Protocol 3 to the said Europe Agreement provides that the 
Association Council may amend the provisions of the Protocol, 
HAS DECIDED: 
The position to be adopted by the Community within the Association Council created by 
virtue of Article 110 of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and the Republic of 
Latvia, of the other part, on an amendment to Protocol 3 on the definition of the concept 
of "originating products" and methods of administrative cooperation set out in the 
Agreement shall be based on the draft Association Council decision annexed to this 
Decision. 
Done at Brussels, 
For the Council 
The President 
f* 
EUROPE AGREEMENT 
establishing an association between the European Communities and their Member 
States, of the one part, and 
the Republic of Latvia, of the other part 
DRAFT 
Decision No .../.. of the Association Council 
of... 
amending Protocol 3 on the definition of the concept of "originating products" and 
methods of administrative cooperation 
THE ASSOCIATION COUNCIL, 
Having regard to the Europe Agreement establishing an association between the European 
Communities and their Member States, of the one part, and the Republic of Latvia, of the 
other part, signed in Brussels on 12 June 1995 and in particular Article 38 of Protocol 3 
thereof, 
Whereas the definition of the term "originating products" needs to be amended to ensure 
the proper operation of the extended system of cumulation which permits the use of 
materials originating in the European Community, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the 
European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and 
Switzerland; 
Whereas it would seem advisable to maintain in operation until 31 December 2000 the 
system of flat rate charges provided for in Article 15 in connection with the prohibition of 
drawback and exemption from customs duty; 
Whereas, in view of the particular arrangement on industrial products obtaining between 
the Community and Turkey, it would also be appropriate to extend the cumulation system 
to such products originating in Turkey; 
Whereas to facilitate trade and simplify administrative tasks it would be desirable to 
amend the wording of Articles 3, 4 and 12; 
Whereas, to take account of changes in processing techniques and shortages of certain 
raw materials, some corrections must be made to the list of working and processing 
requirements which non-originating materials have to fulfil to qualify for originating 
status, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Protocol 3 on the definition of the concept of "originating products" and methods of 
administrative cooperation is hereby amended as follows: 
sy. 
1. Article l(i) shall be replaced by: 
"(i) 'added value' shall be taken to be the ex-works price minus the customs 
value of each of the materials incorporated which originate in the other 
countries referred to in Articles 3 and 4 or, where the customs value is not 
known or cannot be ascertained, the first price verifiably paid for the 
products in the Community or Latvia." 
2. Articles 3 and 4 shall be replaced by: 
Article 3 
Cumulation in the European Community 
1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be 
considered as originating in the Community if such products are obtained there, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between the 
Community and each of these countries, provided that the working or processing carried 
out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall 
not be necessary that such materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in the Community does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in the Community only where the value added there is greater than the value of the 
materials used originating in any one of the other countries referred to in paragraph 1. If 
this is not so, the product obtained shall be considered as originating in the country which 
accounts for the highest value of originating materials used in the manufacture in the 
Community. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the Community, retain their origin if exported into 
one of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Community shall provide Latvia, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
Ç* 
Article 4 
Cumulation in Latvia 
1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be 
considered as originating in Latvia if such products are obtained there, incorporating 
materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, 
Switzerland (including Liechtenstein)1 or Turkey2 in accordance with the provisions of 
the Protocol on rules of origin annexed to the Agreements between Latvia and each of 
these countries, provided that the working or processing carried out in Latvia goes 
beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such 
materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in Latvia does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in Latvia only where the value added there is greater than the value of the materials used 
originating in any one of the other countries referred to in paragraph 1. If this is not so, 
the product obtained shall be considered as originating in the country which accounts for 
the highest value of originating materials used in the manufacture in Latvia. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in Latvia, retain their origin if exported into one of 
these countries. 
4. The cumulation provided for in this Article may only be. applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
Latvia shall provide the Community, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
3. Article 12 shall be replaced by the following: 
"1. Except as provided for in Article 2(1 )(c), Articles 3 and 4 and paragraph 3 of 
this Article, the conditions for acquiring originating status set out in Title II 
must continue to be fulfilled at all times in the Community or Latvia. 
2. Except as provided for in Articles 3 and 4, where originating goods exported 
from the Community or Latvia to another country return, they must be 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
^ 
considered as non-originating, unless it can be demonstrated to the-satisfaction 
of the customs authorities that: 
(a) the returning goods are the same as those that were exported; and 
(b) they have not undergone any operation beyond that necessary to preserve 
them in good condition while in that country or while being exported. 
3. The acquisition of originating status in accordance with the conditions set out 
in Title II shall not be affected by working or processing done outside the 
Community or Latvia on materials exported from the Community or Latvia 
and subsequently reimported there, provided: 
(a) the said materials are wholly obtained in the Community or Latvia or have 
undergone working or processing beyond the insufficient operations listed 
in Article 7 prior to being exported; and 
(b) it can be demonstrated to the satisfaction of the customs authorities that: 
i) the reimported goods have been obtained by working or processing 
the exported materials; and 
ii) the total added value acquired outside the Community or Latvia by 
applying the provisions of this Article does not exceed 10% of the 
ex-works price of the end product for which originating status is 
claimed. 
4. For the purposes of paragraph 3, the conditions for acquiring originating 
status set out in Title II shall not apply to working or processing done outside 
the Community or Latvia. But where, in the list in Annex II, a rule setting a 
maximum value for all the non-originating materials incorporated is applied in 
determining the originating status of the end product, the total value of the 
non-originating materials incorporated in the territory of the party concerned, 
taken together with the total added value acquired outside the Community or 
Latvia by applying the provisions of this Article, shall not exceed the stated 
percentage. 
5. For the purposes of applying the provisions of paragraphs 3 and 4, "total 
added value" shall be taken to mean all costs arising outside the Community 
or Latvia, including the value of the materials incorporated there. 
6. The provisions of paragraphs 3 and 4 shall not apply to products which do not 
fulfil the conditions set out in the list in Annex II or which can be considered 
sufficiently worked or processed only if the general values fixed in Article 6(2) 
are applied. 
7. The provisions of paragraphs 3 and 4 shall not apply to products coming 
under Chapters 50 to 63 of the Harmonised System. 
8. Any working or processing of the kind covered by the provisions of this 
Article and done outside the Community or Latvia shall be done under the 
outward processing arrangements, or similar arrangements." 
f> 
4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase "referred-to*irr Article 4" 
shall be replaced by "referred to in Articles 3 and 4". 
5. In the last paragraph of Article 15(6) the date "31 December 1998" shall be 
replaced by "31 December 2000". 
6. In Article 26 the reference "C2/CP3" shall be replaced by "CN22/CN23". 
7. In Annex I, Note 5.2, "current conducting filaments" shall be added between 
"artificial man-made filaments" and "synthetic man-made staple fibres of 
polypropylene". 
8. In Annex I, Note 5.2 the fifth example ("A carpet with tufts ... are met.") shall be 
deleted. 
9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule 
shall be inserted: 
HS 
Heading 
No 
(1) 
2207 Description of product 
(2) 
Undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
80% vol or higher; 
ethyl alcohol and odier 
spirits, denatured, of any 
strength. Working or processing of non-originating materials that 
confers originating status 
(3) or (4) 
Manufacture: 
- using materials not classified 
in headings 2207 or 2208 
# 
10. In Annex II, the rule for Chapter 57 shall be replaced by: 
Chapter 
57 Carpets and other textile 
floor coverings: 
-Ofneedleloomfelt 
Ofodierfelt 
-Other Manufacture from (1): 
- natural fibres 
or 
- chemical materials or textile pulp 
However: 
- polypropylene filament of 
heading 5402, 
- polypropylene fibres of heading 
5503 or 5506, 
- polypropylene filament tow of 
heading 5501, of which the 
denomination in all cases of a 
single filament or fibre is less 
than 9 decitex, may be used 
provided their value does not 
exceed 40% of the ex-works 
price of the product 
- jute fabric may be used as 
backing 
Manufacture from(l): 
- natural fibres not carded or 
combed or otherwise processed 
for spinning, 
or 
- chemical materials or textile pulp 
Manufacture from(l): 
- coir or jute yarn(a), 
- synthetic or artificial filament yam 
- natural fibres, or 
- man-made staple fibres not 
carded or combed or otherwise 
processed for spinning 
But jute fabric may be used as 
backing 
(a) The use of jute yam is authorised from 1.7.2000. 
n 
11. In Annex II, the rule for HS heading 7006 shall be replaced by: 
7006 Glass of headings 7003, 
7004 or 7005, bent, 
edgeworked, engraved, 
drilled, enamelled or 
otherwise worked, but 
not framed or fitted with 
other materials: 
- glass plate substrate 
coated with dielectric 
thin film, semi­
conductor grade, in 
accordance with 
SEMII standards1 
- other Manufacture from materials 
(substrates) of heading 7006 
Manufacture from materials 
of heading 7001 
12. In Annex II, the rule for HS heading 7601 shall be replaced by: 
7601 Unwrought aluminium Manufacture in which: 
- all the materials used are 
classified within a heading 
other than that of the 
product; and 
- the value of all the 
materials used does not 
exceed 50 % of the ex-
works price of the product 
or 
Manufacture by thermal or 
electrolytic treatment from 
unalloyed aluminium or 
waste and scrap of 
aluminium • 
13. The following is added after Annex IV: 
"Annex V 
List of products originating in Turkey 
to which the provisions of Articles 3 and 4 do not apply, 
listed in the order of HS Chapters and Headings 
Chapter 1 
SEMII- Semiconductor Equipment and Materials Institute Incorporated. 
£o 
Chapter 2 
Chapter 3 
0401 to 0402 
ex 0403 - Buttermilk, curdled milk and cream, yoghurt, képhir and other fermented 
or acidified milk and cream, whether or not concentrated or containing 
added sugar or other sweetening matter or flavoured or containing added 
fruit or cocoa 
0404 to 0410 
0504 
0511 
Chapter 6 
0701 to 0709 
ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen 
ex 0711- Vegetables, except sweet corn of heading 0711 90 30, provisionally 
preserved (for example, by sulphur dioxide gas, in brine, in sulphur water 
or in other preservative solutions), but unsuitable in that state for 
immediate consumption 
0712 to 0714 
Chapter 8 
ex Chapter 9 - Coffee, tea, and spices, excluding maté of heading 0903 
Chapter 10 
Chapter 11 
Chapter 12 
ex 1302 - Pectin 
1501tol514 
ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) 
and their fractions, whether or not refined, but not chemically modified 
ex 1516- Animal or vegetable fats and oils and their fractions, partly or wholly 
hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not 
refined, but not further prepared, excluding hydrogenated castor oil known 
as 'opal-wax' 
ex 1517 and 
ex 1518 - Margarines, imitation lard and other prepared edible fats 
ex 1522- Residues resulting from the treatment of fatty substances or animal or 
vegetable waxes, excluding degras 
Chapter 16 
1701 
ex 1702- Other sugars, including chemically pure lactose, maltose, glucose and 
fructose, in solid form; sugar syrups not containing added flavouring or 
colouring matter; artificial honey, whether or not mixed with natural 
honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 
1702 30 59, 1702 50 00 and 1702 90 10 
1er 
1703 
1801 and 1802 
ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans, 
molluscs or other aquatic invertebrates, sausages and the like or meat and 
meat offal of any kind, including fats of all kinds 
ex 2001- Cucumbers and gherkins, onions, mango chutney, fruit of the genus 
Capsicum other than sweet peppers or pimentos, mushrooms and olives, 
prepared or preserved by vinegar or acetic acid 
2002 and 2003 
ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, frozen, other than products of heading 2006, excluding potatoes in 
the form of flour or meal and flakes of sweet corn 
ex 2005 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, not frozen, other than products of heading 2006, excluding potato 
and sweet corn products 
2006 and 2007 
ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or 
preserved, whether or not containing added sugar or other sweetening 
matter or spirit, not elsewhere specified or included, excluding peanut 
butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of 
plants containing 5% or more by weight of starch, vine leaves, hop shoots 
and other similar edible parts of plants 
2009 
ex 2106 - Flavoured and coloured sugars, syrups and molasses 
2204 
2206 
ex 2207 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol 
or higher obtained from agricultural produce listed here 
ex 2208 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80% vol obtained from agricultural produce listed here. 
2209 
Chapter 23 
2401 
4501 
5301 and 5302 
bi. 
Article 2 
That Decision shall enter into force on 1 January 1999. 
Done at 
For the Association Council 
The President 
(*3 
FINANCIAL STATEMENT 
1. Budget heading: Chapter 12, Article 120 
2. Legal basis: Article 113 of the Treaty 
3. Titles of the agreements in question: 
Proposal for an amendment to the definition of the concept of "originating 
products" and the methods of administrative cooperation set out in Protocol 4 to 
the different Europe Agreements between the EC and the CEECs, the Baltic 
States and Slovenia and the Agreement on the European Economic Area, and in 
Protocol 3 to the free trade agreements between the EEC and the EFTA countries 
4. Purpose: 
To allow Central and Eastern European countries to continue applying flat rates 
where drawback is prohibited or exemption from customs duties is granted. 
To extend the system to industrial products originating in Turkey and simplify or 
correct certain rules, particularly those on determining which country is to be 
considered the originating country. 
5. Financial implications: 
As, for the purposes of industrial products, Turkey is already in a customs union 
with the Community and these products are therefore already zero rated when 
imported into the Community, and as the purpose of the amendments is essentially 
to facilitate trade or simplify administrative tasks, this proposal would not seem to 
have any major financial implications. 
hi 
Proposal for a 98/0259 (ACQ 
COUNCIL DECISION 
on a Community position on an amendment to Protocol 3 
on the definition of the concept of "originating products" 
and methods of administrative cooperation set out in 
the Europe Agreement between the 
European Communities and the Republic of Lithuania 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 thereof, 
Having regard to Article 2(1) of the Council and Commission Decision of 19 December 
1997 on the conclusion of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and the Republic of 
Lithuania, of the other part, 
Having regard to the Commission proposal, 
Whereas Article 38 of Protocol 3 to the said Europe Agreement provides that the 
Association Council may amend the provisions of the Protocol, 
HAS DECIDED: 
The position to be adopted by the Community within the Association Council created by 
virtue of Article 111 of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and the Republic of 
Lithuania, of the other part, on an amendment to Protocol 3 on the definition of the 
concept of "originating products" and methods of administrative cooperation set out in 
the Agreement shall be based on the draft Association Council decision annexed to this 
Decision. 
Done at Brussels, 
For the Council 
The President 
fa 
EUROPE AGREEMENT 
establishing an association between the European Communities and their Member 
States, of the one part, and 
n 
the Republic of Lithuania, of the other part 
DRAFT 
Decision No .../.. of the Association Council 
of... 
amending Protocol 3 on the definition of the concept of "originating products" and 
methods of administrative cooperation 
THE ASSOCIATION COUNCIL, 
Having regard to the Europe Agreement establishing an association between the European 
Communities and their Member States, of the one part, and the Republic of Lithuania, of 
the other part, signed in Brussels on 12 June 1995 and in particular Article 38 of Protocol 
3 thereof, 
Whereas the definition of the term "originating products" needs to be amended to ensure 
the proper operation of the extended system of cumulation which permits the use of 
materials originating in the European Community, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the 
European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and 
Switzerland; 
Whereas it would seem advisable to maintain in operation until 31 December 2000 the 
system of flat rate charges provided for in Article 15 in connection with the prohibition of 
drawback and exemption from customs duty; 
Whereas, in view of the particular arrangement on industrial products obtaining between 
the Community and Turkey, it would also be appropriate to extend the cumulation system 
to such products originating in Turkey; 
Whereas to facilitate trade and simplify administrative tasks it would be desirable to 
amend the wording of Articles 3, 4 and 12; 
Whereas, to take account of changes in processing techniques and shortages of certain 
raw materials, some corrections must be made to the list of working and processing 
requirements which non-originating materials have to fulfil to qualify for originating 
status, 
HAS DECIDED AS FOLLOWS : 
Article 1 
Protocol 3 on the definition of the concept of "originating products" and methods of 
administrative cooperation is hereby amended as follows: 
&& 
1. Article l(i) shall be replaced by: 
"(i) 'added value' shall be taken to be the ex-works price minus the customs 
value of each of the materials incorporated which originate in the other 
countries referred to in Articles 3 and 4 or, where the customs value is not 
known or cannot be ascertained, the first price verifiably paid for the 
products in the Community or LithuaiÉia." 
2. Articles 3 and 4 shall be replaced by: 
Article 3 
Cumulation in the European Community 
1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be 
considered as originating in the Community if such products are obtained there, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between the 
Community and each of these countries, provided that the working or processing carried 
out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall 
not be necessary that such materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in the Community does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in the Community only where the value added there is greater than the value of the 
materials used originating in any one of the other countries referred to in paragraph 1. If 
this is not so, the product obtained shall be considered as originating in the country which 
accounts for the highest value of originating materials used in the manufacture in the 
Community. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the Community, retain their origin if exported into 
one of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Community shall provide Lithuania, through the European Commission with details 
of the Agreements and their corresponding rules of origin, which are applied with the 
other countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
l The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
OP-
Article 4 
Cumulation in Lithuania 
1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be 
considered as originating in Lithuania if such products are obtained there, incorporating 
materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, 
Switzerland (including Liechtenstein)1 or Turkey2 in accordance with the provisions of 
the Protocol on rules of origin annexed to the Agreements between Lithuania and each of 
these countries, provided that the working or processing carried out in Lithuania goes 
beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such 
materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in Lithuania does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in Lithuania only where the value added there is greater than the value of the materials 
used originating in any one of the other countries referred to in paragraph 1. If this is not 
so, the product obtained shall be considered as originating in the country which accounts 
for the highest value of originating materials used in the manufacture in Lithuania. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in Lithuania, retain their origin if exported into one of 
these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
Lithuania shall provide the Community, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may. be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
3. Article 12 shall be replaced by the following: 
"1. Except as provided for in Article 2(1 )(c), Articles 3 and 4 and paragraph 3 of 
this Article, the conditions for acquiring originating status set out in Title II 
must continue to be fulfilled at all times in the Community or Lithuania. 
2. Except as provided for in Articles 3 and 4, where originating goods exported 
from the Community or Lithuania to another country return, they must be 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
G>J> 
considered as non-originating, unless it can be demonstrafed to-the-satisfaction 
of the customs authorities that: 
(a) the returning goods are the same as those that were exported; and 
(b) they have not undergone any operation beyond that necessary to preserve 
them in good condition while in that country or while being exported. 
3. The acquisition of originating status in accordance with the conditions set out 
in Title II shall not be affected by working or processing done outside the 
Community or Lithuania on materials exported from the Community or 
Lithuania and subsequently reimported there, provided: 
(a) the said materials are wholly obtained in the Community or Lithuania or 
have undergone working or processing beyond the insufficient operations 
listed in Article 7 prior to being exported; and 
(b) it can be demonstrated to the satisfaction of the customs authorities that: 
i) the reimported goods have been obtained by working or processing 
the exported materials; and 
ii) the total added value acquired outside the Community or Lithuania 
by applying the provisions of this Article does not exceed 10% of 
the ex-works price of the end product for which originating status is 
claimed. 
4. For the purposes of paragraph 3, the conditions for acquiring originating 
status set out in Title II shall not apply to working or processing done outside 
the Community or Lithuania. But where, in the list in Annex II, a rule setting 
a maximum value for all the non-originating materials incorporated is applied 
in determining the originating status of the end product, the total value of the 
non-originating materials incorporated in the territory of the party concerned, 
taken together with the total added value acquired outside the Community or 
Lithuania by applying the provisions of this Article, shall not exceed the stated 
percentage. 
5. For the purposes of applying the provisions of paragraphs 3 and 4, "total 
added value" shall be taken to mean all costs arising outside the Community 
or Lithuania, including the value of the materials incorporated there. 
6. The provisions of paragraphs 3 and 4 shall not apply to products which do not 
fulfil the conditions set out in the list in Annex II or which can be considered 
sufficiently worked or processed only if the general values fixed in Article 6(2) 
are applied. 
7. The provisions of paragraphs 3 and 4 shall not apply to products coming 
under Chapters 50 to 63 of the Harmonised System. 
8. Any working or processing of the kind covered by the provisions of this 
Article and done outside the Community or Lithuania shall be done under the 
outward processing arrangements, or similar arrangements." 
&j 
4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase "referred <to, in -Article 4" 
shall be replaced by "referred to in Articles 3 and 4". 
5. In the last paragraph of Article 15(6) the date "31 December 1998" shall be 
replaced by "31 December 2000". 
6. In Article 26 the reference "C2/CP3" shall be replaced by "CN22/CN23". 
7. In Annex I, Note 5.2, "current conducting filaments" shall be added between 
"artificial man-made filaments" and "synthetic man-made staple fibres of 
polypropylene". 
8. In Annex I, Note 5.2 the fifth example ("A carpet with tufts ... are met.") shall be 
deleted. 
9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule 
shall be inserted: 
HS 
Heading 
No 
(1) 
2207 Description of product 
(2) 
Undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
80% vol or higher; 
ethyl alcohol and other 
spirits, denatured, of any 
strength. Working or processing of non-originating materials that 
confers originating status 
(3) or (4) 
Manufacture: 
- using materials not classified 
in headings 2207 or 2208 
A? 
10. In Annex II, the rule for Chapter 57 shall be replaced by: 
Chapter 
57 Carpets and other texUle 
floor coverings: 
- Of needleloom felt 
Of other felt 
- Other Manufacture from (1): 
- natural fibres 
or 
- chemical materials or textile pulp 
However: 
- polypropylene filament of 
heading 5402, 
- polypropylene fibres of heading 
5503 or 5506, 
- polypropylene filament tow of 
heading 5501, of which die 
denomination in all cases of a 
single filament or fibre is less 
than 9 decitex, may be used 
provided their value does not 
exceed 40% of die ex-works 
price of the product 
- jute fabric may be used as 
backing 
Manufacture from(l): 
- natural fibres not carded or 
combed or otherwise processed 
for spinning, 
or 
- chemical materials or textile pulp 
Manufacture from(l): 
- coir or jute yarn<a), 
- synthetic or artificial filament yarn 
- natural fibres, or 
- man-made staple fibres not 
carded or combed or otherwise 
processed for spinning 
But jute fabric may be used as 
backing 
{a) The use of jute yarn is authorised from 1.7.2000. 
?f 
11. In Annex II, the rule for HS heading 7006 shall be replaced by: 
7006 Glass of headings 7003, 
7004 or 7005, bent, 
edgeworked, engraved, 
drilled, enamelled or 
otherwise worked, but 
not framed or fitted with 
other materials : 
- glass plate substrate 
coated with dielectric 
thin film, semi­
conductor grade, in 
accordance with 
SEMII standards1 
- other Manufacture from materials 
(substrates) of heading 7006 
Manufacture from materials 
of heading 7001 
12. In Annex II, the rule for HS heading 7601 shall be replaced by: 
7601 Unwrought aluminium Manufacture in which: 
- all the materials used are 
classified within a heading 
other than that of the 
product; and 
- the value of all the 
materials used does not 
exceed 50 % of the ex-
works price of the product 
or 
Manufacture by thermal or 
electrolytic treatment from 
unalloyed aluminium or 
waste and scrap of 
aluminium 
13. The following is added after Annex IV: 
"Annex V 
List of products originating in Turkey 
to which the provisions of Articles 3 and 4 do not apply, 
listed in the order of HS Chapters and Headings 
Chapter 1 
1 SEMII- Semiconductor Equipment and Materials Institute Incorporated. 
% 
Chapter 2 
Chapter 3 
0401 to 0402 
ex 0403 - Buttermilk, curdled milk and cream, yoghurt, képhir and other fermented 
or acidified milk and cream, whether or not concentrated or containing 
added sugar or other sweetening matter or flavoured or containing added 
fruit or cocoa 
0404 to 0410 
0504 
0511 
Chapter 6 
0701 to 0709 
ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen 
ex 0711- Vegetables, except sweet corn of heading 0711 90 30, provisionally 
preserved (for example, by sulphur dioxide gas, in brine, in sulphur water 
or in other preservative solutions), but unsuitable in that state for 
immediate consumption 
0712 to 0714 
Chapter 8 
ex Chapter 9 - Coffee, tea, and spices, excluding maté of heading 0903 
Chapter 10 
Chapter 11 
Chapter 12 
ex 1302 - Pectin 
1501tol514 
ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) 
and their fractions, whether or not refined, but not chemically modified 
ex 1516- Animal or vegetable fats and oils and their fractions, partly or wholly 
hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not 
refined, but not further prepared, excluding hydrogenated castor oil known 
as 'opal-wax' 
ex 1517 and 
ex 1518 - Margarines, imitation lard and other prepared edible fats 
ex 1522- Residues resulting from the treatment of fatty substances or animal or 
vegetable waxes, excluding degras 
Chapter 16 
1701 
ex 1702 - Other sugars, including chemically pure lactose, maltose, glucose and 
fructose, in solid form; sugar syrups not containing added flavouring or 
colouring matter; artificial honey, whether or not mixed with natural 
honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 
1702 30 59, 1702 50 00 and 1702 90 10 
Ï3 
1703 
1801 and 1802 
ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans, 
molluscs or other aquatic invertebrates, sausages and the like or meat and 
meat offal of any kind, including fats of all kinds 
ex 2001- Cucumbers and gherkins, onions, mango chutney, fruit of the genus 
Capsicum other than sweet peppers or pimentos, mushrooms and olives, 
prepared or preserved by vinegar or acetic acid 
2002 and 2003 
ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, frozen, other than products of heading 2006, excluding potatoes in 
the form of flour or meal and flakes of sweet corn 
ex 2005 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, not frozen, other than products of heading 2006, excluding potato 
and sweet corn products 
2006 and 2007 
ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or 
preserved, whether or not containing added sugar or other sweetening 
matter or spirit, not elsewhere specified or included, excluding peanut 
butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of 
plants containing 5% or more by weight of starch, vine leaves, hop shoots 
and other similar edible parts of plants 
2009 
ex 2106 - Flavoured and coloured sugars, syrups and molasses 
2204 
2206 
ex 2207 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol 
or higher obtained from agricultural produce listed here 
ex 2208 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80% vol obtained from agricultural produce listed here. 
2209 
Chapter 23 
2401 
4501 
5301 and 5302 
ïh 
Article 2 
That Decision shall enter into force on 1 January 1999. 
Done at 
For the Association Council 
The President 
tf 
FINANCIAL STATEMENT 
1. Budget heading: Chapter 12, Article 120 
2. Legal basis: Article 113 of the Treaty 
3. Titles of the agreements in question: 
Proposal for an amendment to the definition of the concept of "originating 
products" and the methods of administrative cooperation set out in Protocol 4 to 
the different Europe Agreements between the EC and the CEECs, the Baltic 
States and Slovenia and the Agreement on the European Economic Area, and in 
Protocol 3 to the free trade agreements between the EEC and the EFTA countries 
4. Purpose: 
To allow Central and Eastern European countries to continue applying flat rates 
where drawback is prohibited or exemption from customs duties is granted. 
To extend the system to industrial products originating in Turkey and simplify or 
correct certain rules, particularly those on determining which country is to be 
considered the originating country. 
5. Financial implications: 
As, for the purposes of industrial products, Turkey is already in a customs union 
with the Community and these products are therefore already zero rated when 
imported into the Community, and as the purpose of the amendments is essentially 
to facilitate trade or simplify administrative tasks, this proposal would not seem to 
have any major financial implications. 
M 
Proposai for a 98/0260 (ACQ 
COUNCIL DECISION 
on a Community position on an amendment to Protocol 4 
on the definition of the concept of "originating products" 
and methods of administrative cooperation set out in 
the Europe Agreement between the 
European Communities and Hungary 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 thereof, 
Having regard to Article 2(1) of the Council and Commission Decision of 13 December 
1993 on the conclusion of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and the Republic of 
Hungary, of the other part, 
Having regard to the Commission proposal, 
Whereas Article 38 of Protocol 4 to the said Europe Agreement provides that the 
Association Council may amend the provisions of the Protocol, 
HAS DECIDED: 
The position to be adopted by the Community within the Association Council created by 
virtue of Article 104 of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and the Republic of 
Hungary, of the other part, on an amendment to Protocol 4 on the definition of the 
concept of "originating products" and methods of administrative cooperation set out in 
the Agreement shall be based on the draft Association Council decision annexed to this 
Decision. 
Done at Brussels, 
For the Council 
The President 
?•?• 
EUROPE AGREEMENT 
establishing an association between the European Communities and their Member 
States, of the one part, and 
the Republic of Hungary, of the other part 
DRAFT 
Decision No .../.. of the Association Council 
of... 
amending Protocol 4 on the definition of the concept of "originating products" and 
methods of administrative cooperation 
THE ASSOCIATION COUNCIL, 
Having regard to the Europe Agreement establishing an association between the European 
Communities and their Member States, of the one part, and the Republic of Hungary, of 
the other part, signed in Brussels on 16 December 1991 and in particular Article 38 of 
Protocol 4 thereof, 
Whereas the definition of the term "originating products" needs to be amended to ensure 
the proper operation of the extended system of cumulation which permits the use of 
materials originating in the European Community, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the 
European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and 
Switzerland; 
Whereas it would seem advisable to maintain in operation until 31 December 2000 the 
system of flat rate charges provided for in Article 15 in connection with the prohibition of 
drawback and exemption from customs duty; 
Whereas, in view of the particular arrangement on industrial products obtaining between 
the Community and Turkey, it would also be appropriate to extend the cumulation system 
to such products originating in Turkey; 
Whereas to facilitate trade and simplify administrative tasks it would be desirable to 
amend the wording of Articles 3, 4 and 12; 
Whereas, to take account of changes in processing techniques and shortages of certain 
raw materials, some corrections must be made to the list of working and processing 
requirements which non-originating materials have to fulfil to qualify for originating 
status, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Protocol 4 on the definition of the concept of "originating products" and methods of 
administrative cooperation is hereby amended as follows: 
?f 
1. Article l(i) shall be replaced by: 
"(i) 'added value' shall be taken to be the ex-works price minus the customs 
value of each of the materials incorporated which originate in the other 
countries referred to in Articles 3 and 4 or, where the customs value is not 
known or cannot be ascertained, the first price verifiably paid for the 
products in the Community or Hungary." 
2. Articles 3 and 4 shall be replaced by: 
Article 3 
Cumulation in the European Community 
1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be 
considered as originating in the Community if such products are obtained there, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between the 
Community and each of these countries, provided that the working or processing carried 
out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall 
not be necessary that such materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in the Community does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in the Community only where the value added there is greater than the value of the 
materials used originating in any one of the other countries referred to in paragraph 1. If 
this is not so, the product obtained shall be considered as originating in the country which 
accounts for the highest value of originating materials used in the manufacture in the 
Community. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the Community, retain their origin if exported into 
one of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Community shall provide Hungary, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
l The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
& 
Article 4 
Cumulation in Hungary 
1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be 
considered as originating in Hungary if such products are obtained there, incorporating 
materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, 
Switzerland (including Liechtenstein)1 or Turkey2 in accordance with the provisions of 
the Protocol on rules of origin annexed to the Agreements between Bulgaria and each of 
these countries, provided that the working or processing carried out in Hungary goes 
beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such 
materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in Hungary does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in Hungary only where the value added there is greater than the value of the materials 
used originating in any one of the other countries referred to in paragraph 1. If this is not 
so, the product obtained shall be considered as originating in the country which accounts 
for the highest value of originating materials used in the manufacture in Hungary. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in Hungary, retain their origin if exported into one of 
these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
Hungary shall provide the Community, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
3. Article 12 shall be replaced by the following: 
"1. Except as provided for in Article 2(1 )(c), Articles 3 and 4 and paragraph 3 of 
this Article, the conditions for acquiring originating status set out in Title II 
must continue to be fulfilled at all times in the Community or Hungary. 
2. Except as provided for in Articles 3 and 4, where originating goods exported 
from the Community or Hungary to another country return, they must be 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
&D 
considered as non-originating, unless it can be demonstrated to-the-satisfaction 
of the customs authorities that: 
(a) the returning goods are the same as those that were exported; and 
(b) they have not undergone any operation beyond that necessary to preserve 
them in good condition while in that country or while being exported. 
3. The acquisition of originating status in accordance with the conditions set out 
in Title II shall not be affected by working or processing done outside the 
Community or Hungary on materials exported from the Community or 
Bulgaria and subsequently reimported there, provided: 
(a) the said materials are wholly obtained in the Community or Hungary or 
have undergone working or processing beyond the insufficient operations 
listed in Article 7 prior to being exported; and 
(b) it can be demonstrated to the satisfaction of the customs authorities that: 
i) the reimported goods have been obtained by working or processing 
the exported materials; and 
ii) the total added value acquired outside the Community or Hungary 
by applying the provisions of this Article does not exceed 10% of 
the ex-works price of the end product for which originating status is 
claimed. 
4. For the purposes of paragraph 3, the conditions for acquiring originating 
status set out in Title II shall not apply to working or processing done outside 
the Community or Hungary. But where, in the list in Annex II, a rule setting a 
. maximum value for all the non-originating materials incorporated is applied in 
determining the originating status of the end product, the total value of the 
non-originating materials incorporated in the territory of the party concerned, 
taken together with the total added value acquired outside the Community or 
Hungary by applying the provisions of this Article, shall not exceed the stated 
percentage. 
5. For the purposes of applying the provisions of paragraphs 3 and 4, "total 
added value" shall be taken to mean all costs arising outside the Community 
or Hungary, including the value of the materials incorporated there. 
6. The provisions of paragraphs 3 and 4 shall not apply to products which do not 
fulfil the conditions set out in the list in Annex II or which can be considered 
sufficiently worked or processed only if the general values fixed in Article 6(2) 
are applied 
7. The provisions of paragraphs 3 and 4 shall not apply to products coming 
under Chapters 50 to 63 of the Harmonised System. 
8. Any working or processing of the kind covered by the provisions of this 
Article and done outside the Community or Hungary shall be done under the 
outward processing arrangements, or similar arrangements." 
*V 
4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase "refeYred<te*in*Article 4" 
shall be replaced by "referred to in Articles 3 and 4". 
5. In the last paragraph of Article 15(6) the date "31 December 1998" shall be 
replaced by "31 December 2000". 
6. In Article 26 the reference "C2/CP3" shall be replaced by "CN22/CN23". 
7. In Annex I, Note 5.2, "current conducting filaments" shall be added between 
"artificial man-made filaments" and "synthetic man-made staple fibres of 
polypropylene". 
8. In Annex I, Note 5.2 the fifth example ("A carpet with tufts ... are met.") shall be 
deleted. 
9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule 
shall be inserted: 
HS 
Heading 
No 
(1) 
2207 Description of product 
(2) 
Undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
80% vol or higher; 
ethyl alcohol and other 
spirits, denatured, of any 
strength. Working or processing of non-originating materials that 
confers originating status 
(3) or (4) 
Manufacture: 
- using materials not classified 
in headings 2207 or 2208 
<f£ 
10. In Annex II, the rule for Chapter 57 shall be replaced by: 
Chapter 
57 Carpets and other textile 
floor coverings: 
- Of needleloom felt 
-OfoUierfelt 
- Other Manufacture from (1): 
- natural fibres 
or 
- chemical materials or textile pulp 
However; 
- polypropylene filament of 
heading 5402, 
- polypropylene fibres of heading 
5503 or 5506, 
- polypropylene filament tow of 
heading 5501, of which the 
denomination in all cases of a 
single filament or fibre is less 
than 9 decitex, may be used 
provided their value does not 
exceed 40% of the ex-works 
price of the product 
- jute fabric may be used as 
backing 
Manufacture from(l): 
- natural fibres not carded or 
combed or otherwise processed 
for spinning, 
or 
- chemical materials or textile pulp 
Manufacture from(l): 
- coir or jute yarn(a), 
- synthetic or artificial filament yarn 
- natural fibres, or 
- man-made staple fibres not 
carded or combed or otherwise 
processed for spinning 
But jute fabric may be used as 
backing 
(a) The use of jute yarn is authorised from 1.7.2000. 
^ 
11. In Annex II, the rule for HS heading 7006 shall be replaced by: 
7006 Glass of headings 7003, 
7004 or 7005, bent, 
edgeworked, engraved, 
drilled, enamelled or 
otherwise worked, but 
not framed or fitted with 
other materials : 
- glass plate substrate 
coated with dielectric 
thin film, semi­
conductor grade, in 
accordance with 
SEMII standards1 
- other Manufacture from materials 
(substrates) of heading 7006 
Manufacture from materials 
of heading 7001 
12. In Annex II, the rule for HS heading 7601 shall be replaced by: 
7601 Unwrought aluminium Manufacture in which: 
- all the materials used are 
classified within a heading 
other than that of the 
product; and 
- the value of all the 
materials used does not 
exceed 50 % of the ex-
works price of the product 
or 
Manufacture by thermal or 
electrolytic treatment from 
unalloyed aluminium or 
waste and scrap of 
aluminium 
13. The following is added after Annex IV: 
"Annex V 
List of products originating in Turkey 
to which the provisions of Articles 3 and 4 do not apply, 
listed in the order of HS Chapters and Headings 
Chapter 1 
SEMIl- Semiconductor Equipment and Materials Institute Incorporated. 
f*f 
Chapter 2 
Chapter 3 
0401 to 0402 
ex 0403 - Buttermilk, curdled milk and cream, yoghurt, képhir and other fermented 
or acidified milk and cream, whether or not concentrated or containing 
added sugar or other sweetening master or flavoured or containing added 
fruit or cocoa 
0404 to 0410 
0504 
0511 
Chapter 6 
0701 to 0709 
ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen 
ex 0711- Vegetables, except sweet corn of heading 0711 90 30, provisionally 
preserved (for example, by sulphur dioxide gas, in brine, in sulphur water 
or in other preservative solutions), but unsuitable in that state for 
immediate consumption 
0712 to 0714 
Chapter 8 
ex Chapter 9 - Coffee, tea, and spices, excluding maté of heading 0903 
Chapter 10 
Chapter 11 
Chapter 12 
ex 1302- Pectin 
1501tol514 
ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) 
and their fractions, whether or not refined, but not chemically modified 
ex 1516- Animal or vegetable fats and oils and their fractions, partly or wholly 
hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not 
refined, but not further prepared, excluding hydrogenated castor oil known 
as 'opal-wax' 
ex 1517 and 
ex 1518 - Margarines, imitation lard and other prepared edible fats 
ex 1522- Residues resulting from the treatment of fatty substances or animal or 
vegetable waxes, excluding degras 
Chapter 16 
1701 
ex 1702- Other sugars, including chemically pure lactose, maltose, glucose and 
fructose, in solid form; sugar syrups not containing added flavouring or 
colouring matter; artificial honey, whether or not mixed with natural 
honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 
1702 30 59, 1702 50 00 and 1702 90 10 
«Y 
1703 
1801 and 1802 
ex 1902- Pasta, stuffed, containing more than 20% by weight offish, crustaceans, 
molluscs or other aquatic invertebrates, sausages and the like or meat and 
meat offal of any kind, including fats of all kinds 
ex 2001 - Cucumbers and gherkins, onions, mango chutney, fruit of the genus 
Capsicum other than sweet peppers or pimentos, mushrooms and olives, 
prepared or preserved by vinegar or acetic acid 
2002 and 2003 
ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, frozen, other than products of heading 2006, excluding potatoes in 
the form of flour or meal and flakes of sweet corn 
ex 2005 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, not frozen, other than products of heading 2006, excluding potato 
and sweet corn products 
2006 and 2007 
ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or 
preserved, whether or not containing added sugar or other sweetening 
matter or spirit, not elsewhere specified or included, excluding peanut 
butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of 
plants containing 5% or more by weight of starch, vine leaves, hop shoots 
and other similar edible parts of plants 
2009 
ex 2106 - Flavoured and coloured sugars, syrups and molasses 
2204 
2206 
ex 2207 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol 
or higher obtained from agricultural produce listed here 
ex 2208 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80% vol obtained from agricultural produce listed here. 
2209 
Chapter 23 
2401 
4501 
5301 and 5302 
ft. 
Article 2 
That Decision shall enter into force on 1 January 1999. 
Done at 
For the Association Council 
The President 
*? 
FINANCIAL STATEMENT 
1. Budge- wading: Chapter 12, Article 120 
2. Legal sasis: Article 113 of the Treaty 
3. Titles of the agreements in question: 
Proposal for an amendment to the definition of the concept of "originating 
products" and the methods of administrative cooperation set out in Protocol 4 to 
the different Europe Agreements between the EC and the CEECs, the Baltic 
States and Slovenia and the Agreement on the European Economic Area, and in 
Protocol 3 to the free trade agreements between the EEC and the EFTA countries 
4. Purpose: 
To allow Central and Eastern European countries to continue applying flat rates 
where drawback is prohibited or exemption from customs duties is granted. 
To extend the system to industrial products originating in Turkey and simplify or 
correct certain rules, particularly those on determining which country is to be 
considered the originating country. 
5. Financial implications: 
As, for the purposes of industrial products, Turkey is already in a customs union 
with the Community and these products are therefore already zero rated when 
imported into the Community, and as the purpose of the amendments is essentially 
to facilitate trade or simplify administrative tasks, this proposal would not seem to 
have any major financial implications. 
<ts 
Proposal for a 98/ 0261 (ACQ 
COUNCIL DECISION 
on a Community position on an amendment to Protocol 4 
on the definition of the concept of "originating products" 
and methods of administrative cooperation set out in 
the Europe Agreement between the 
European Communities and the Slovak Republic 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 thereof, 
Having regard to Article 2(1) of the Council and Commission Decision of 19 December 
1994 on the conclusion of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and the Slovak 
Republic, of the other part, 
Having regard to the Commission proposal, 
Whereas Article 38 of Protocol 4 to the said Europe Agreement provides, that the 
Association Council may amend the provisions of the Protocol, 
HAS DECIDED: 
The position to be adopted by the Community within the Association Council created by 
virtue of Article 104 of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and the Slovak 
Republic, of the other part, on an amendment to Protocol 4 on the definition of the 
concept of "originating products" and methods of administrative cooperation set out in 
the Agreement shall be based on the draft Association Council decision annexed to this 
Decision. 
Done at Brussels, 
For the Council 
The President 
ST 
EUROPE AGREEMENT 
establishing an association between the European Communities and their Member 
States, of the one part, and 
the Slovak Republic, of the other part 
DRAFT 
Decision No .../.. of the Association Council 
of... 
amending Protocol 4 on the definition of the concept of "originating products" and 
methods of administrative cooperation 
THE ASSOCIATION COUNCIL, 
Having regard to the Europe Agreement establishing an association between the European 
Communities and their Member States, of the one part, and the Slovak Republic, of the 
other part, signed in Brussels on 4 October 1993 and in particular Article 38 of Protocol 4 
thereof, 
Whereas the definition of the term "originating products" needs to be amended to ensure 
the proper operation of the extended system of cumulation which permits the use of 
materials originating in the European Community, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the 
European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and 
Switzerland; 
Whereas it would seem advisable to maintain in operation until 31 December 2000 the 
system of flat rate charges provided for in Article 15 in connection with the prohibition of 
drawback and exemption from customs duty; 
Whereas, in view of the particular arrangement on industrial products obtaining between 
the Community and Turkey, it would also be appropriate to extend the cumulation system 
to such products originating in Turkey; 
Whereas to facilitate trade and simplify administrative tasks it would be desirable to 
amend the wording of Articles 3, 4 and 12; 
Whereas, to take account of changes in processing techniques and shortages of certain 
raw materials, some corrections must be made to the list of working and processing 
requirements which non-originating materials have to fulfil to qualify for originating 
status, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Protocol 4 on the definition of the concept of "originating products" and methods of 
administrative cooperation is hereby amended as follows: 
9b 
1. Article l(i) shall be replaced by: 
"(i) 'added value' shall be taken to be the ex-works price minus the customs 
value of each of the materials incorporated which originate in the other 
countries referred to in Articles 3 and 4 or, where the customs value is not 
known or cannot be ascertained, the first price verifiably paid for the 
products in the Community or the Slovak Republic." 
2. Articles 3 and 4 shall be replaced by: 
Article 3 
Cumulation in the European Community 
1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be 
considered as originating in the Community if such products are obtained there, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between the 
Community and each of these countries, provided that the working or processing carried 
out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall 
not be necessary that such materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in the Community does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in the Community only where the value added there is greater than the value of the 
materials used originating in any one of the other countries referred to in paragraph 1. If 
this is not so, the product obtained shall be considered as originating in the country which 
accounts for the highest value of originating materials used in the manufacture in the 
Community. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the Community, retain their origin if exported into 
one of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Community shall provide the Slovak Republic, through the European Commission 
with details of the Agreements and their corresponding rules of origin, which are applied 
with the other countries referred to in paragraph 1. The European Commission shall 
publish in the Official Journal of the European Communities (C Series) the date on which 
the cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
$r 
Article 4 
Cumulation in the Slovak Republic 
1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be 
considered as originating in the Slovak Republic if such products are obtained there, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between the 
Slovak Republic and each of these countries, provided that the working or processing 
carried out in the Slovak Republic goes beyond that referred to in Article 7 of this 
Protocol. It shall not be necessary that such materials have undergone sufficient working 
or processing. 
2. Where the working or processing carried out in the Slovak Republic does not go 
beyond the operations referred to in Article 7, the product obtained shall be considered as 
originating in the Slovak Republic only where the value added there is greater than the 
value of the materials used originating in any one of the other countries referred to in 
paragraph 1. If this is not so, the product obtained shall be considered as originating in the 
country which accounts for the highest value of originating materials used in the 
manufacture in the Slovak Republic. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the Slovak Republic, retain their origin if exported 
into one of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Slovak Republic shall provide the Community, through the European Commission 
with details of the Agreements and their corresponding rules of origin, which are applied 
with the other countries referred to in paragraph 1. The European Commission shall 
publish in the Official Journal of the European Communities (C Series) the date on which 
the cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
3. Article 12 shall be replaced by the following: 
"1. Except as provided for in Article 2(1 )(c), Articles 3 and 4 and paragraph 3 of 
this Article, the conditions for acquiring originating status set out in Title II 
must continue to be fulfilled at all times in the Community or the Slovak 
Republic. 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
<u~ 
2. Except as provided for in Articles 3 and 4, where originating'goods exported 
from the Community or the Slovak Republic to another country return, they 
must be considered as non-originating, unless it can be demonstrated to the 
satisfaction of the customs authorities that: 
(a) the returning goods are the same as those that were exported; and 
(b) they have not undergone any operation beyond that necessary to preserve 
them in good condition while in that country or while being exported. 
3. The acquisition of originating status in accordance with the conditions set out 
in Title II shall not be affected by working or processing done outside the 
Community or the Slovak Republic on materials exported from the 
Community or Bulgaria and subsequently reimported there, provided: 
(a) the said materials are wholly obtained in the Community or the Slovak 
Republic or have undergone working or processing beyond the insufficient 
operations listed in Article 7 prior to being exported; and 
(b) it can be demonstrated to the satisfaction of the customs authorities that: 
i) the reimported goods have been obtained by working or processing 
the exported materials; and 
ii) the total added value acquired outside the Community or the 
Slovak Republic by applying the provisions of this Article does not 
exceed 10% of the ex-works price of the end product for which 
originating status is claimed. 
4. For the purposes of paragraph 3, the conditions for acquiring originating 
status set out in Title II shall not apply to working or processing done outside 
the Community or the Slovak Republic. But where, in the list in Annex II, a 
rule setting a maximum value for all the non-originating materials 
incorporated is applied in determining the originating status of the end 
product, the total value of the non-originating materials incorporated in the 
territory of the party concerned, taken together with the total added value 
acquired outside the Community or the Slovak Republic by applying the 
provisions of this Article, shall not exceed the stated percentage. 
5. For the purposes of applying the provisions of paragraphs 3 and 4, "total 
added value" shall be taken to mean all costs arising outside the Community 
or the Slovak Republic, including the value of the materials incorporated 
there. 
6. The provisions of paragraphs 3 and 4 shall not apply to products which do not 
fulfil the conditions set out in the list in Annex II or which can be considered 
sufficiently worked or processed only if the general values fixed in Article 6(2) 
are applied. 
7. The provisions of paragraphs 3 and 4 shall not apply to products coming 
under Chapters 50 to 63 of the Harmonised System. 
13 
8. Any working or processing of the kind covered by the provisions of this 
Article and done outside the Community or the Slovak Republic shall be done 
under the outward processing arrangements, or similar arrangements." 
4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase "referred to in Article 4" 
shall be replaced by "referred to in Articles 3 and 4". 
5. In the last paragraph of Article 15(6) the date "31 December 1998" shall be 
replaced by "31 December 2000". 
6. In Article 26 the reference "C2/CP3" shall be replaced by "CN22/CN23". 
7. In Annex I, Note 5.2, "current conducting filaments" shall be added between 
"artificial man-made filaments" and "synthetic man-made staple fibres of 
polypropylene". 
8. In Annex I, Note 5.2 the fifth example ("A carpet with tufts ... are met.") shall be 
deleted. 
9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule 
shall be inserted: 
HS 
Heading 
No 
(1) 
2207 Description of product 
(2) 
Undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
80% vol or higher; 
ethyl alcohol and other 
spirits, denatured, of any 
strength. Working or processing of non-originating materials that 
confers originating status 
(3) or (4) 
Manufacture: 
- using materials not classified 
in headings 2207 or 2208 
^ 
10. In Annex II, the rule for Chapter 57 shall be replaced by: 
Chapter 
57 Carpets and other textile 
floor coverings: 
- Of needleloom felt 
-Of other felt 
-Other Manufacture from (1): 
- natural fibres 
or 
- chemical materials or textile pulp 
However: 
- polypropylene filament of 
heading 5402, 
- polypropylene fibres of heading 
5503 or 5506, 
- polypropylene filament tow of 
heading 5501, of which the 
denomination in all cases of a 
single filament or fibre is less 
than 9 decitex, may be used 
provided their value does not 
exceed 40% of the ex-works 
price of the product 
- jute fabric may be used as 
backing 
Manufacture from( 1): 
- natural fibres not carded or 
combed or otherwise processed 
for spinning, 
or 
- chemical materials or textile pulp 
Manufacture from(l): 
- coir or jute yarn(a), 
- synthetic or artificial filament yarn 
- natural fibres, or 
- man-made staple fibres not 
carded or combed or otherwise 
processed for spinning 
But jute fabric may be used as 
backing 
(a) The use of jute yarn is authorised from 1.7.2000. 
Rh 
11. In Annex II, the rule for HS heading 7006 shall be replaced by 
7006 Glass of headings 7003, 
7004 or 7005, bent, 
edgeworked, engraved, 
drilled, enamelled or 
otherwise worked, but 
not framed or fitted with 
other materials : 
- glass plate substrate 
coated with dielectric 
thin film, semi­
conductor grade, in 
accordance with 
SEMII standards1 
- other Manufacture from materials 
(substrates) of heading 7006 
Manufacture from materials 
of heading 7001 
12. In Annex II, the rule for HS heading 7601 shall be replaced by 
7601 Unwrought aluminium Manufacture in which: 
- all the materials used are 
classified within a heading 
other than that of the 
product; and 
- the value of all the 
materials used does not 
exceed 50 % of the ex-
works price of the product 
or 
Manufacture by thermal or 
electrolytic treatment from 
unalloyed aluminium or 
waste and scrap of 
aluminium 
13. The following is added after Annex IV: 
"Annex V 
List of products originating in Turkey 
to which the provisions of Articles 3 and 4 do not apply 
listed in the order of HS Chapters and Headings 
Chapter 1 
SEMII- Semiconductor Equipment and Materials Institute Incorporated. 
9c 
Chapter 2 
Chapter 3 
0401 to 0402 
ex 0403 - Buttermilk, curdled milk and cream, yoghurt, képhir and other fermented 
or acidified milk and cream, whether or not concentrated or containing 
added sugar or other sweetening matter or flavoured or containing added 
fruit or cocoa 
0404 to 0410 
0504 
0511 
Chapter 6 
0701 to 0709 
ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen 
ex 0711- Vegetables, except sweet corn of heading 0711 90 30, provisionally 
preserved (for example, by sulphur dioxide gas, in brine, in sulphur water 
or in other preservative solutions), but unsuitable in that state for 
immediate consumption 
0712 to 0714 
Chapter 8 
ex Chapter 9 - Coffee, tea, and spices, excluding maté of heading 0903 
Chapter 10 
Chapter 11 
Chapter 12 
ex 1302 - Pectin 
1501tol514 
ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) 
and their fractions, whether or not refined, but not chemically modified 
ex 1516- Animal or vegetable fats and oils and their fractions, partly or wholly 
hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not 
refined, but not further prepared, excluding hydrogenated castor oil known 
as 'opal-wax' 
ex 1517 and 
ex 1518 - Margarines, imitation lard and other prepared edible fats 
ex 1522- Residues resulting from the treatment of fatty substances or animal or 
vegetable waxes, excluding degras 
Chapter 16 
1701 
ex 1702- Other sugars, including chemically pure lactose, maltose, glucose and 
fructose, in solid form; sugar syrups not containing added flavouring or 
colouring matter; artificial honey, whether or not mixed with natural 
honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 
1702 30 59, 1702 50 00 and 1702 90 10 
^ 
1703 
1801 and 1802 
ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans, 
molluscs or other aquatic invertebrates, sausages and the like or meat and 
meat offal of any kind, including fats of all kinds 
ex 2001- Cucumbers and gherkins, onions, mango chutney, fruit of the genus 
Capsicum other than sweet peppers or pimentos, mushrooms and olives, 
prepared or preserved by vinegar or acetic acid 
2002 and 2003 
ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, frozen, other than products of heading 2006, excluding potatoes in 
the form of flour or meal and flakes of sweet corn 
ex 2005 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, not frozen, other than products of heading 2006, excluding potato 
and sweet corn products 
2006 and 2007 
ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or 
preserved, whether or not containing added sugar or other sweetening 
matter or spirit, not elsewhere specified or included, excluding peanut 
butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of 
plants containing 5% or more by weight of starch, vine leaves, hop shoots 
and other similar edible parts of plants 
2009 
ex 2106 - Flavoured and coloured sugars, syrups and molasses 
2204 
2206 
ex 2207 - Undenatured ethyl alcohol 'of an alcoholic strength by volume of 80% vol 
or higher obtained from agricultural produce listed here 
ex 2208 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80% vol obtained from agricultural produce listed here. 
2209 
Chapter 23 
2401 
4501 
5301 and 5302 
<& 
Article 2 
That Decision shall enter into force on 1 January 1999. 
Done at 
For the Association Council 
The President 
<?? 
FINANCIAL STATEMENT 
1. Budget heading: Chapter 12, Article 120 
2. Legal basis: Article 113 of the Treaty 
3. Titles of the agreements in question: 
Proposal for an amendment to the definition of the concept of "originating 
products" and the methods of administrative cooperation set out in Protocol 4 to 
the different Europe Agreements between the EC and the CEECs, the Baltic 
States and Slovenia and the Agreement on the European Economic Area, and in 
Protocol 3 to the free trade agreements between the EEC and the EFTA countries 
4. Purpose: 
To allow Central and Eastern European countries to continue applying flat rates 
where drawback is prohibited or exemption from customs duties is granted. 
To extend the system to industrial products originating in Turkey and simplify or 
correct certain rules, particularly those on determining which country is to be 
considered the originating country. 
5. Financial implications: 
As, for the purposes of industrial products, Turkey is already in a customs union 
with the Community and these products are therefore already zero rated when 
imported into the Community, and as the purpose of the amendments is essentially 
to facilitate trade or simplify administrative tasks, this proposal would not seem to 
have any major financial implications. 
/66 
Proposai for a 98/0262 (ACQ 
COUNCIL DECISION 
on a Community position on an amendment to Protocol 4 
on the definition of the concept of "originating products" 
and methods of administrative cooperation set out in 
the Europe Agreement between the 
European Communities and Romania 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 thereof, 
Having regard to Article 2(1) of the Council and Commission Decision of 19 December 
1994 on the conclusion of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and Romania, of the 
other part, 
Having regard to the Commission proposal, 
Whereas Article 38 of Protocol 4 to the said Europe Agreement provides that the 
Association Council may amend the provisions of the Protocol, 
HAS DECIDED: 
The position to be adopted by the Community within the Association Council created by 
virtue of Article 106 of the Europe Agreement establishing an association between the 
European Communities and their Member States, of the one part, and Romania, of the 
other part, on an amendment to Protocol 4 on the definition of the concept of "originating 
products" and methods of administrative cooperation set out in the Agreement shall be 
based on the draft Association Council decision annexed to this Decision. 
Done at Brussels, 
For the Council 
The President 
/6/ 
EUROPE AGREEMENT 
establishing an association between the EuropeanjCommunities and their Member 
States, of the one part, and 
Romania, of the other part 
DRAFT 
Decision No .../.. of the Association Council 
of... 
amending Protocol 4 on the definition of the concept of "originating products" and 
methods of administrative cooperation 
THE ASSOCIATION COUNCIL, 
Having regard to the Europe Agreement establishing an association between the European 
Communities and their Member States, of the one part, and Romania, of the other part, 
signed in Brussels on 1 February 1993 and in particular Article 38 of Protocol 4 thereof, 
Whereas the definition of the term "originating products" needs to be amended to ensure 
the proper operation of the extended system of cumulation which permits the use of 
materials originating in the European Community, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the 
European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and 
Switzerland; 
Whereas it would seem advisable to maintain in operation until 31 December 2000 the 
system of flat rate charges provided for in Article 15 in connection with the prohibition of 
drawback and exemption from customs duty; 
Whereas, in view of the particular arrangement on industrial products obtaining between 
the Community and Turkey, it would also be appropriate to extend the cumulation system 
to such products originating in Turkey; 
Whereas to facilitate trade and simplify administrative tasks it would be desirable to 
amend the wording of Articles 3, 4 and 12; 
Whereas, to take account of changes in processing techniques and shortages of certain 
raw materials, some corrections must be mad tc the list of working and processing 
requirements which non-originating materials have to fulfil to qualify for originating 
status, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Protocol 4 on the definition of the concept of "originating products" and methods of 
administrative cooperation is hereby amended as follows: 
/oz-
1. Article l(i) shall be replaced by: 
"(i) 'added value' shall be taken to be the ex-works price minus the customs 
value of each of the materials incorporated which originate in the other 
countries referred to in Articles 3 and 4 or, where the customs value is not 
known or cannot be ascertained, the first price verifiably paid for the 
products in the Community or Romania." 
2. Articles 3 and 4 shall be replaced by: 
Article 3 
Cumulation in the European Community 
1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be 
considered as originating in the Community if such products are obtained there, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary,, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between the 
Community and each of these countries, provided that the working or processing carried 
out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall 
not be necessary that such materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in the Community does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in the Community only where the value added there is greater than the value of the 
materials used originating in any one of the other countries referred to in paragraph 1. If 
this is not so, the product obtained shall be considered as originating in the country which 
accounts for the highest value of originating materials used in the manufacture in the 
Community. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the Community, retain their origin if exported into 
one of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Community shall provide Romania, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
ioz 
Article 4 
Cumulation in Romania 
1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be 
considered as originating in Romania if^uch products are obtained there, incorporating 
materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, 
Switzerland (including Liechtenstein)1 or Turkey2 in accordance with the provisions of 
the Protocol on rules of origin annexed to the Agreements between Romania and each of 
these countries, provided that the working or processing carried out in Romania goes 
beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such 
materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in Romania does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in Romania only where the value added there is greater than the value of the materials 
used originating in any one of the other countries referred to in paragraph 1. If this is not 
so, the product obtained shall be considered as originating in the country which accounts 
for the highest value of originating materials used in the manufacture in Romania. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in Romania, retain their origin if exported into one of 
these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
Romania shall provide the Community, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
3. Article 12 shall be replaced by the following: 
"1. Except as provided for in Article 2(l)(c), Articles 3 and 4 and paragraph 3 of 
this Article, the conditions for acquiring originating status set out in Title II 
must continue to be fulfilled at all times in the Community or Romania. 
2. Except as provided for in Articles 3 and 4, where originating goods exported 
from the Community or Romania to another country return, they must be 
i The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which 
are mentioned in the list at Annex V to this Protocol. 
m 
considered as non-originating, unless it can be demonstrated to 4he-satisfaction 
of the customs authorities that: 
(a) the returning goods are the same as those that were exported; and 
(b) they have not undergone any operation beyond that necessary to preserve 
them in good condition while in that country or while being exported. 
3. The acquisition of originating status in accordance with the conditions set out 
in Title II shall not be affected by working or processing done outside the 
Community or Romania on materials exported from the Community or 
Romania and subsequently reimported there, provided: 
(a) the said materials are wholly obtained in the Community or Romania or 
have undergone working or processing beyond the insufficient operations 
listed in Article 7 prior to being exported; and 
(b) it can be demonstrated to the satisfaction of the customs authorities that: 
i) the reimported goods have been obtained by working or processing 
the exported materials; and 
ii) the total added value acquired outside the Community or Romania 
by applying the provisions of this Article does not exceed 10% of 
the ex-works price of the end product for which originating status is 
claimed. 
4. For the purposes of paragraph.3, the conditions for acquiring originating 
status set out in Title II shall not apply to working or processing done outside 
the Community or Romania. But where, in the list in Annex II, a rule setting a 
maximum value for all the non-originating materials incorporated is applied in 
determining the originating status of the end product, the total value of the 
non-originating materials incorporated in the territory of the party concerned, 
taken together with the total added value acquired outside the Community or 
Romania by applying the provisions of this Article, shall not exceed the stated 
percentage. 
5. For the purposes of applying the provisions of paragraphs 3 and 4, "total 
added value" shall be taken to mean all costs arising outside the Community 
or Romania, including the value of the materials incorporated there. 
6. The provisions of paragraphs 3 and 4 shall not apply to products which do not 
fulfil the conditions set out in the list in Annex II or which can be considered 
sufficiently worked or processed only if the general values fixed in Article 6(2) 
are applied. 
7. The provisions of paragraphs 3 and 4 shall not apply to products coming 
under Chapters 50 to 63 of the Harmonised System. 
8. Any working or processing of the kind covered by the provisions of this 
Article and done outside the Community or Romania shall be done under the 
outward processing arrangements, or similar arrangements." 
/of 
4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase "referred te-in-Article 4" 
shall be replaced by "referred to in Articles 3 and 4". 
5. In the last paragraph of Article 15(6) the date "31 December 1998" shall be 
replaced by "31 December 2000". 
6. In Article 26 the reference "C2/CP3" shall be replaced by "CN22/CN23". 
7. In Annex I, Note 5.2, "current conducting filaments" shall be added between 
"artificial man-made filaments" and "synthetic man-made staple fibres of 
polypropylene". 
8. In Annex I, Note 5.2 the fifth example ("A carpet with tufts ... are met.") shall be 
deleted. 
9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule 
shall be inserted: 
HS 
Heading 
No 
(1) 
2207 Description of product 
(2) 
Undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
80% vol or higher; 
ethyl alcohol and other 
spirits, denatured, of any 
strength. Working or processing of non-originating materials that 
confers originating status 
(3) or (4) 
Manufacture: 
- using materials not classified 
in headings 2207 or 2208 
/ÔQ 
10. In Annex II, the rule for Chapter 57 shall be replaced by: 
Chapter 
57 Carpets and other textile 
floor coverings: 
- Of needleloom felt 
-Of other felt 
- Other Manufacture from (1): 
- natural fibres 
or 
- chemical materials or textile pulp 
However: 
- polypropylene filament of 
heading 5402, 
- polypropylene fibres of heading 
5503 or 5506, 
- polypropylene filament tow of 
heading 5501, of which the 
denomination in all cases of a 
single filament or fibre is less 
than 9 decitex, may be used 
provided their value does not 
exceed 40% of the ex-works 
price of the product 
- jute fabric may be used as 
backing 
Manufacture from(l): 
- natural fibres not carded or 
combed or otherwise processed 
for spinning, 
or 
- chemical materials or textile pulp 
Manufacture from(l): 
- coir or jute yarn(a), 
- synthetic or artificial filament yarn 
- natural fibres, or 
- man-made staple fibres not 
carded or combed or otherwise 
processed for spinning 
But jute fabric may be used as 
backing -
<a) The use of jute yarn is auUiorised from 1.7.2000. 
/o/ 
11. In Annex II, the rule for HS heading 7006 shall be replaced by: 
7006 Glass of headings 7003, 
7004 or 7005, bent, 
edgeworked, engraved, 
drilled, enamelled or 
otherwise worked, but 
not framed or fitted with 
other materials: 
- glass plate substrate 
coated with dielectric 
thin film, semi­
conductor grade, in 
accordance with 
SEMII standards1 
- other Manufacture from materials 
(substrates) of heading 7006 
Manufacture from materials 
of heading 7001 
12. In Annex II, the rule for HS heading 7601 shall be replaced by: 
7601 Unwrought aluminium Manufacture in which: 
- all the materials used are 
classified within a heading 
other than that of the 
product; and 
- the value of all the 
materials used does not 
exceed 50 % of the ex-
works price of the product 
or 
Manufacture by thermal or 
electrolytic treatment from 
unalloyed aluminium or 
waste and scrap of 
aluminium 
13. The following is added after Annex IV: 
"Annex V 
List of products originating in Turkey 
to which the provisions of Articles 3 and 4 do not apply, 
listed in the order of HS Chapters and Headings 
Chapter 1 
SEMII- Semiconductor Equipment and Materials Institute Incorporated. 
JoT 
Chapter 2 
Chapter 3 
0401 to 0402 
ex 0403 - Buttermilk, curdled milk and cream, yoghurt, képhir and other fermented 
or acidified milk and cream, whether or not concentrated or containing 
added sugar or other sweetening matter or flavoured or containing added 
fruit or cocoa 
0404 to 0410 
0504 
0511 
Chapter 6 
0701 to 0709 
ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen 
ex 0711- Vegetables, except sweet corn of heading 0711 90 30, provisionally 
preserved (for example, by sulphur dioxide gas, in brine, in sulphur water 
or in other preservative solutions), but unsuitable in that state for 
immediate consumption 
0712 to 0714 
Chapter 8 
ex Chapter 9 - Coffee, tea, and spices, excluding maté of heading 0903 
Chapter 10 
Chapter 11 
Chapter 12 
ex 1302- Pectin 
1501tol514 
ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) 
and their fractions, whether or not refined, but not chemically modified 
ex 1516- Animal or vegetable fats and oils and their fractions, partly or wholly 
hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not 
refined, but not further prepared, excluding hydrogenated castor oil known 
as 'opal-wax' 
ex 1517 and 
ex 1518 - Margarines, imitation lard and other prepared edible fats 
ex 1522- Residues resulting from the treatment of fatty substances or animal or 
vegetable waxes, excluding degras 
Chapter 16 
1701 
ex 1702 - Other sugars, including chemically pure lactose, maltose, glucose and 
fructose, in solid form; sugar syrups not containing added flavouring or 
colouring matter; artificial honey, whether or not mixed with natural 
honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 
1702 30 59, 1702 50 00 and 1702 90 10 
m 
1703 
1801 and 1802 
ex 1902- Pasta, stuffed, containing more than 20% by weight offish, crustaceans, 
molluscs or other aquatic invertebrates, sausages and the like or meat and 
meat offal of any kind, including fats of all kinds 
ex 2001 - Cucumbers and gherkins, onions, mango chutney, fruit of the genus 
Capsicum other than sweet peppers or pimentos, mushrooms and olives, 
prepared or preserved by vinegar or acetic acid 
2002 and 2003 
ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, frozen, other than products of heading 2006, excluding potatoes in 
the form of flour or meal and flakes of sweet corn 
ex 2005 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, not frozen, other than products of heading 2006, excluding potato 
and sweet corn products 
2006 and 2007 
ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or 
preserved, whether or not containing added sugar or other sweetening 
matter or spirit, not elsewhere specified or included, excluding peanut 
butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of 
plants containing 5% or more by weight of starch, vine leaves, hop shoots 
and other similar edible parts of plants 
2009 
ex 2106 - Flavoured and coloured sugars, syrups and molasses 
2204 
2206 
ex 2207 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol 
or higher obtained from agricultural produce listed here 
ex 2208 -' Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80% vol obtained from agricultural produce listed here. 
2209 
Chapter 23 
2401 
4501 
5301 and 5302 
Uà 
Article 2 
That Decision shall enter into force on 1 January 1999. 
Done at 
For the Association Council 
The President 
/// 
FINANCIAL STATEMENT 
1. Budget heading: Chapter 12, Article 120 
2. Legal basis: Article 113 of the Treaty 
3. Titles of the agreements in question: 
Proposal for an amendment to the definition of the concept of "originating 
products" and the methods of administrative cooperation set out in Protocol 4 to 
the different Europe Agreements between the EC and the CEECs, the Baltic 
States and Slovenia and the Agreement on the European Economic Area, and in 
Protocol 3 to the free trade agreements between the EEC and the EFTA countries 
4. Purpose: 
To allow Central and Eastern European countries to continue applying flat rates 
where drawback is prohibited or exemption from customs duties is granted. 
To extend the system to industrial products originating in Turkey and simplify or 
correct certain rules, particularly those on determining which country is to be 
considered the originating country. 
5. Financial implications: 
As, for the purposes of industrial products, Turkey is already in a customs union 
with the Community and these products are therefore already zero rated when 
imported into the Community, and as the purpose of the amendments is essentially 
to facilitate trade or simplify administrative tasks, this proposal would not seem to 
have any major financial implications. 
lit 
98/ 0263 (ACC) Proposal for a 
COUNCIL DECISION 
on a Community position on an amendment to Protocol 4 
on the definition of the concept of "originating products" 
and methods of administrative cooperation set out in 
the Interim Agreement on trade and trade-related matters 
between the 
European Communities and the Republic of Slovenia 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 thereof, 
Having regard to Article 1 of the Council and Commission Decision of 25 November 
1996 on the conclusion of the Interim Agreement on trade and trade-related matters 
between the European Communities and their Member States, of the one part, and the 
Republic of Slovenia, of the other part, 
Having regard to the Commission proposal, 
Whereas Article 38 of Protocol 4 to the said Interim Agreement provides that the 
Association Council may amend the provisions of the Protocol, 
HAS DECIDED: 
The position to be adopted by the Community within the Cooperation Council which 
performs the duties of the Association Council according to Article 38 of the Interim 
Agreement on trade and trade-related matters between the European Communities and 
their Member States, of the one part, and the Republic of Slovenia, of the other part, on 
an amendment to Protocol 4 on the definition of the concept of "originating products" 
and methods of administrative cooperation set out in the Agreement shall be based on the 
draft Cooperation Council decision annexed to this Decision. 
Done at Brussels, 
For the Council 
The President 
nz 
INTERIM AGREEMENT 
on trade and trade-related matters between the European Communities and their 
Member States and the Republic of Slovenia 
DRAFT 
Decision No .../.. of the Cooperation Council 
of... 
amending Protocol 4 on the definition of the concept of "originating products" and 
methods of administrative cooperation 
THE COOPERATION COUNCIL, 
Having regard to the Interim Agreement on trade and trade-related matters between the 
European Communities and the Republic of Slovenia, of the other part, signed in 
Brussels on 11 November 1996 and in particular Article 38 of Protocol 4 thereof, 
Whereas the definition of the term "originating products" needs to be amended to ensure 
the proper operation of the extended system of cumulation which permits the use of 
materials originating in the European Community, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the 
European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and 
Switzerland; 
Whereas it would seem advisable to maintain in operation until 31 December 2000 the 
system of flat rate charges provided for in Article 15 in connection with the prohibition 
of drawback and exemption from customs duty; 
Whereas, in view of the particular arrangement on industrial products obtaining between 
the Community and Turkey, it would also be appropriate to extend the cumulation 
system to such products originating in Turkey; 
Whereas to facilitate trade and simplify administrative tasks it would be desirable to 
amend the wording of Articles 3, 4 and 12; 
Whereas, to take account of changes in processing techniques and shortages of certain 
raw materials, some corrections must be made to the list of working and processing 
requirements which non-originating materials have to fulfil to qualify for originating 
status, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Protocol 4 on the definition of the concept of "originating products" and methods of 
administrative cooperation is hereby amended as follows: 
ttY 
1. Article l(i) shall be replaced by: 
"(i) 'added value' shall be taken to be the ex-works price minus the customs 
value of each of the materials incorporated which originate in the other 
countries referred to in Articles 3 and 4 or, where the customs value is not 
known or cannot be ascertained, the first price verifiably paid for the 
products in the Community or Slovenia." 
2. Articles 3 and 4 shall be replaced by: 
Article 3 
Cumulation in the European Community 
1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be 
considered as originating in the Community if such products are obtained there, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between the 
Community and each of these countries, provided that the working or processing carried 
out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall 
not be necessary that such materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in the Community does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in the Community only where the value added there is greater than the value of the 
materials used originating in any one of the other countries referred to in paragraph 1. If 
this is not so, the product obtained shall be considered as originating in the country which 
accounts for the highest value of originating materials used in the manufacture in the 
Community. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the Community, retain their origin if exported into 
one of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Community shall provide Slovenia, through the European Commission with details 
of the Agreements and their corresponding rules of origin, which are applied with the 
other countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which are 
mentioned in the list at Annex V to this Protocol. 
//* 
cumulation, provided for in this Article may be applied by those .countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
Article 4 
Cumulation in Slovenia 
1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be 
considered as originating in Slovenia if such products are obtained there, incorporating 
materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, 
Switzerland (including Liechtenstein)1 or Turkey2 in accordance with the provisions of 
the Protocol on rules of origin annexed to the Agreements between Slovenia and each of 
these countries, provided that the working or processing carried out in Slovenia goes 
beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such 
materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in Slovenia does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in Slovenia only where the value added there is greater than the value of the materials 
used originating in any one of the other countries referred to in paragraph 1. If this is not 
so, the product obtained shall be considered as originating in the country which accounts 
for the highest value of originating materials used in the manufacture in Slovenia. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in Slovenia, retain their origin if exported into one of 
these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
Slovenia shall provide the Community, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
3. Article 12 shall be replaced by the following: 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which are 
mentioned in the list at Annex V to this Protocol. 
UG 
"1. Except as provided for in Article 2(1 )(c), Articles 3 and 4 and paragraph 3 of 
this Article, the conditions for acquiring originating status set out in Title. II 
must continue to be fulfilled at all times in the Community or Slovenia. 
2. Except as provided for in Articles 3 and 4, where originating goods exported 
from the Community or Slovenia to another country return, they must be 
considered as non-originating, unless it can be demonstrated to the 
satisfaction of the customs authorities thaï 
(a) the returning goods are the same as those that were exported; and 
(b) they have not undergone any operation beyond that necessary to preserve 
them in good condition while in that country or while being exported. 
3. The acquisition of originating status in accordance with the conditions set out 
in Title II shall not be affected by working or processing done outside the 
Community or Slovenia on materials exported from the Community or 
Slovenia and subsequently reimported there, provided: 
(a) the said materials are wholly obtained in the Community or Slovenia or 
have undergone working or processing beyond the insufficient operations 
listed in Article 7 prior to being exported; and 
(b) it can be demonstrated to the satisfaction of the customs authorities that: 
i) the reimported goods have been obtained by working or processing 
the exported materials; and 
ii) the total added value acquired outside the Community or* Slovenia 
by applying the provisions of this Article does not exceed 10% of 
the ex-works price of the end product for which originating status 
is claimed. 
4. For the purposes of paragraph 3, the conditions for acquiring originating 
status set out in Title II shall not apply to working or processing done outside 
the Community or Slovenia. But where, in the list in Annex II, a rule setting 
a maximum value for all the non-originating materials incorporated is applied 
in determining the originating status of the end product, the total value of the 
non-originating materials incorporated in the territory of the party concerned, 
taken together with the total added value acquired outside the Community or 
Slovenia by applying the provisions of this Article, shall not exceed the stated 
percentage. 
5. For the purposes of applying the provisions of paragraphs 3 and 4, "total 
added value" shall be taken to mean all costs arising outside the Community 
or Slovenia, including the value of the materials incorporated there. 
6. The provisions of paragraphs 3 and 4 shall not apply to products which do 
not fulfil the conditions set out in the list in Annex II or which can be 
considered sufficiently worked or processed only if the general values fixed 
in Article 6(2) are applied. 
//^ 
7. The provisions of paragraphs 3 and 4 shall not apply to products' cor! lg 
under Chapters 50 to 63 of the Harmonised System. 
8. Any working or processing of the kind covered by the provisions of this 
Article and done outside the Community or Slovenia shall be done under the 
outward processing arrangements, or similar arrangements." 
In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase "referred to in Article 4" 
shall be replaced by "referred to in Articles 3 and 4". 
In the last paragraph of Article 15(6) the date "31 December 1998" shall be 
replaced by "31 December 2000". 
In Article 26 the reference "C2/CP3" shall be replaced by "CN22/CN23". 
In Annex I, Note 5.2, "current conducting filaments" shall be added between 
"artificial man-made filaments" and "synthetic man-made staple fibres of 
polypropylene". 
In Annex I, Note 5.2 the fifth example ("A carpet with tufts ... are met.") shall be 
deleted. 
In Annex II, between the rules for HS headings 2202 and 2208 the following rule 
shall be inserted: 
HS 
Heading 
No 
(1) 
2207 Description of product 
(2) 
Undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
80% vol or higher; ethyl 
alcohol and other spirits, 
denatured, of any 
strength. Working or processing of non-originating materials that 
confers originating status 
(3) or (4) 
Manufacture: 
- using materials not classified 
in headings 2207 or 2208 
//T 
10. In Annex II, the rule for Chapter 57 shall be replaced by: 
Chapter 
57 Carpets and other textile 
floor coverings: 
-Ofneedleloom felt 
-Of other felt 
- Other Manufacture from (1): 
- natural fibres 
or 
- chemical materials or textile pulp 
However: 
- polypropylene filament of 
heading 5402, 
- polypropylene fibres of heading 
5503 or 5506, 
- polypropylene filament tow of 
heading 5501, of which the 
denomination in all cases of a 
single filament or fibre is less 
than 9 decitex, may be used 
provided their value does not 
exceed 40% of the ex-works 
price of the product 
- jute fabric may be used as 
backing 
Manufacture from(l): 
- natural fibres not carded or 
combed or otherwise processed 
for spinning, 
or 
- chemical materials or textile pulp 
Manufacture from(l): 
- coir or jute yam^a\ 
- synthetic or artificial filament yam, 
- natural fibres, or 
- man-made staple fibres not carded 
or combed or otherwise 
processed for spinning 
But jute fabric may be used as 
backing 
<a) The use of jute yam is authorised from 1.7.2000. 
//<; 
11. In Annex II, the rule for HS heading 7006 shall be replaced by: 
7006 Glass of headings 7003, 
7004 or 7005, bent, 
edgeworked, engraved, 
drilled, enamelled or 
otherwise worked, but 
not framed or fitted with 
other materials : 
- glass plate substrate 
coated with dielectric 
thin film, semi­
conductor grade, in 
accordance with 
SEMII standards1 
- other Manufacture from materials 
(substrates) of heading 7006 
Manufacture from materials 
of heading 7001 
12. In Annex II, the rule for HS heading 7601 shall be replaced by: 
7601 Unwrought aluminium Manufacture in which: 
- all the materials used are 
classified within a heading 
other than that of the 
product; and 
- the value of all the 
materials used does not 
exceed 50 % of the ex-
works price of the product 
or 
Manufacture by thermal or 
electrolytic treatment from 
unalloyed aluminium or 
waste and scrap of 
aluminium 
13. The following is added after Annex IV: 
"Annex V 
List of products originating in Turkey 
to which the provisions of Articles 3 and 4 do not apply, 
listed in the order of HS Chapters and Headings 
Chapter 1 
SEMII- Semiconductor Equipment and Materials Institute Incorporated. 
Uo 
Chapter 2 
Chapter 3 
0401 to 0402 
ex 0403 -
0404 to 0410 
0504 
0511 
Chapter 6 
0701 to 0709 
ex 0710-
ex 0711-
0712 to 0714 Buttermilk, curdled milk and cream, yoghurt, képhir and other fermented 
or acidified milk and cream, whether or not concentrated or containing 
added sugar or other sweetening matter or flavoured or containing added 
fruit or cocoa 
Vegetables (uncooked or cooked by steaming or boiling in water), frozen 
Vegetables, except sweet corn of heading 0711 90 30, provisionally 
preserved (for example, by sulphur dioxide gas, in brine, in sulphur water 
or in other preservative solutions), but unsuitable in that state for 
immediate consumption 
Chapter 8 
ex Chapter 9 - Coffee, tea, and spices, excluding maté of heading 0903 
Chapter 10 
Chapter 11 
Chapter 12 
ex 1302- Pectin 
1501tol514 
ex 1515-
exl516-
ex 1517 and 
ex 1518-
exl522-
Chapter 16 
1701 
ex 1702 -Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) 
and their fractions, whether or not refined, but not chemically modified 
Animal or vegetable fats and oils and their fractions, partly or wholly 
hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not 
refined, but not further prepared, excluding hydrogenated castor oil known 
as 'opal-wax' 
Margarines, imitation lard and other prepared edible fats 
Residues resulting from the treatment of fatty substances or animal or 
vegetable waxes, excluding degras 
Other sugars, including chemically pure lactose, maltose, glucose and 
fructose, in solid form; sugar syrups not containing added flavouring or 
colouring matter; artificial honey, whether or not mixed with natural 
honey; caramel excluding that of headings 1702 11 00, 1702 30-51, 
1702 30 59, 1702 50 00 and 1702 90 10 
/z/ 
1703 
1801 and 1802 
ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans, 
molluscs or other aquatic invertebrates, sausages and the like or meat and 
meat offal of any kind, including fats of all kinds 
ex 2001- Cucumbers and gherkins, onions, mango chutney, fruit of the genus 
Capsicum other than sweet peppers or pimentos, mushrooms and olives, 
prepared or preserved by vinegar or acetic acid 
2002 and 2003 
ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, frozen, other than products of heading 2006, excluding potatoes in 
the form of flour or meal and flakes of sweet corn 
ex 2005 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, not frozen, other than products of heading 2006, excluding potato 
and sweet corn products 
2006 and 2007 
ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or 
preserved, whether or not containing added sugar or other sweetening 
matter or spirit, not elsewhere specified or included, excluding peanut 
butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of 
plants containing 5% or more by weight of starch, vine leaves, hop shoots 
and other similar edible parts of plants 
2009 
ex 2106 - Flavoured and coloured sugars, syrups and molasses 
2204 
2206 
ex 2207 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol 
or higher obtained from agricultural produce listed here 
ex 2208 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80% vol obtained from agricultural produce listed here. 
2209 
Chapter 23 
2401 
4501 
5301 and 5302 
/Zl 
Article 2 
That Decision shall enter into force on 1 January 1999. 
Done at 
For the Cooperation Council 
The President 
/£. 
FINANCIAL STATEMENT 
1. Budget heading: Chapter 12, Article 120 
2- Legal basis: Article 113 of the Treaty 
3. Titles of the agreements in question: 
Proposal for an amendment to the definition of the concept of "originating 
products" and the methods of administrative cooperation set out in Protocol 4 to 
the different Europe Agreements between the EC and the CEECs, the Baltic 
States and Slovenia and the Agreement on the European Economic Area, and in 
Protocol 3 to the free trade agreements between the EEC and the EFT A countries 
4. Purpose: 
To allow Central and Eastern European countries to continue applying flat rates 
where drawback is prohibited or exemption from customs duties is granted. 
To extend the system to industrial products originating in Turkey and simplify or 
correct certain rules, particularly those on determining which country is to be 
considered the originating country. 
5. Financial implications: 
As, for the purposes of industrial products, Turkey is already in a customs union 
with the Community and these products are therefore already zero rated when 
imported into the Community, and as the purpose of the amendments is 
essentially to facilitate trade or simplify administrative tasks, this proposal would 
not seem to have any major financial implications. 
/£<? 
DECISION N° .../ OF THE EC-SWITZERLAND JOINT COMMITTEE 
of 
amending Protocol 3 to the Agreement between the European Economic 
Community and the Swiss Confederation concerning the definition of the concept of 
"originating products" and methods of administrative cooperation 
THE JOINT COMMITTEE, 
Having regard to the Agreement between the European Economic Community and the 
Swiss Confederation1, hereinafter referred to as "the Agreement", signed in Brussels on 
22 July 1972, 
Having regard to Protocol 3 concerning the definition of the concept of originating 
products and methods of administrative cooperation, hereinafter referred to as "Protocol 
3", and in particular Article 38 thereof, 
Whereas the definition of the term "originating products" needs to be amended to ensure 
the proper operation of the extended system of cumulation which permits the use of 
materials originating in the European Community, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the 
European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and 
Switzerland; 
Whereas, in view of the particular arrangement on industrial products obtaining between 
the Community and Turkey, it would also be appropriate to extend the cumulation 
system to such products originating in Turkey; 
Whereas to facilitate trade and simplify administrative tasks it would be desirable to 
amend the wording of Articles 3 and 4; 
Whereas, to take account of changes in processing techniques and shortages of certain 
raw materials, some corrections must be made to the list of working and processing 
requirements which non-originating materials have to fulfil to qualify for originating 
status, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Protocol 3 is hereby amended as follows: 
1. Article l(i) shall be replaced by: 
"(i) 'added value' shall be taken to be the ex-works price minus the customs 
value of each of the materials incorporated which originate in the other 
countries referred to in Articles 3 and 4 or, where the customs value is not 
1 r\ i xr° OJN°L300, 31.12.1972, p. 189 
Mf 
known or cannot be ascertained, the first price verifiably paid for the 
products in the Community or Switzerland." 
2. Articles 3 and 4 shall be replaced by: 
Article 3 
Cumulation in the European Community 
1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be 
considered as originating in the Community if such products are obtained there, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between the 
Community and each of these countries, provided that the working or processing carried 
out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall 
not be necessary that such materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in the Community does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in the Community only where the value added there is greater than the value of the 
materials used originating in any one of the other countries referred to in paragraph 1. If 
this is not so, the product obtained shall be considered as originating in the country which 
accounts for the highest value of originating materials used in the manufacture in the 
Community. 
3. Products,' originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the Community, retain their origin if exported into 
one of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Community shall provide Switzerland, through the European Commission with 
details of the Agreements and their corresponding rules of origin, which are applied with 
the other countries referred to in paragraph 1. The European Commission shall publish in 
the Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
Article 4 
Cumulation in Switzerland 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which are 
mentioned in the list at Annex V to this Protocol. 
'°V 
1. Without prejudice to the provisions of Article 2 paragraph 2, products; shall be 
considered as originating in Switzerland if such products are obtained ^here, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between 
Switzerland and each of these countries, provided that the working or processing carried 
out in Switzerland goes beyond that referred to in Article 7 of this Protocol. It shall not 
be necessary that such materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in Switzerland does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in Switzerland only where the value added there is greater than the value of the materials 
used originating in any one of the other countries referred to in paragraph 1. If this is not 
so, the product obtained shall be considered as originating in the country which accounts 
for the highest value of originating materials used in the manufacture in Switzerland. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in Switzerland, retain their origin if exported into one 
of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
Switzerland shall provide the Community, through the European Commission with 
details of the Agreements and their corresponding rules of origin, which are applied with 
the other countries referred to in paragraph 1. The European Commission shall publish in 
the Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
3. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase "referred to in Article 4" 
shall be replaced by "referred to in Articles 3 and 4". 
4. In Article 26 the reference "C2/CP3" shall be replaced by "CN22/CN23". 
5. In Annex I, Note 5.2, "current conducting filaments" shall be added between 
"artificial man-made filaments" and "synthetic man-made staple fibres of 
polypropylene". 
6. In Annex I, Note 5.2 the fifth example ("A carpet with tufts ... are met.") shall be 
deleted. 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which are 
mentioned in the list at Annex V to this Protocol. 
u. 
7. In Annex II, between the rules for HS headings 2202 and 2208 the following rule 
shall be inserted: * ' ••<• . 
HS 
Heading 
No 
(1) 
2207 Description of product 
(2) 
Undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
80% vol or higher; ethyl 
alcohol and other spirits, 
denatured, of any 
strength. Working or processing of non-originating materials that 
confers originating status 
(3) or (4) 
Manufacture: 
- using materials not classified 
in headings 2207 or 2208 
/& 
8. In Annex II, the rule for Chapter 57 shall be replaced by: 
Chapter 
57 Carpets and other textile 
floor coverings: 
- Of needleloom felt 
i 
-Of other felt 
- Other Manufacture from (1): 
- natural fibres 
or 
- chemical materials or textile pulp 
However: 
- polypropylene filament of 
heading 5402, 
- polypropylene fibres of heading 
5503 or 5506, 
- polypropylene filament tow of 
heading 5501, of which the 
denomination in all cases of a 
single filament or fibre is less 
than 9 decitex, may be used 
provided their value does not 
exceed 40% of the ex-works 
price of the product 
- jute fabric may be used as 
backing 
Manufacture from(l): 
- natural fibres not carded or 
combed or otherwise processed 
for spinning, 
or 
- chemical materials or textile pulp 
Manufacture from(l): 
- coir or jute yarn*3), 
- synthetic or artificial filament yam, 
- natural fibres, or 
- man-made staple fibres not carded 
or combed or otherwise 
processed for spinning 
But jute fabric may be used as 
backing 
<a) The use of jute yam is authorised from 1.7.2000. 
II 
9. In Annex II, the rule for HS heading 7006 shall be replaced by: 
7006 Glass of headings 7003, 
7004 or 7005, bent, 
edgeworked, engraved, 
drilled, enamelled or 
otherwise worked, but 
not framed or fitted with 
other materials : 
- glass plate substrate 
coated with dielectric 
thin film, semi­
conductor grade, in 
accordance with 
SEMII standards1 
- other Manufacture from materials 
(substrates) of heading 7006 
Manufacture from materials 
of heading 7001 
10. In Annex II, the rule for HS heading 7601 shall be replaced by: 
7601 Unwrought aluminium Manufacture in which: 
- all the materials used are 
classified within a heading 
other than that of the 
product; and 
- the value of all the 
materials used does not 
exceed 50 % of the ex-
works price of the product 
or 
Manufacture by thermal or 
electrolytic treatment from 
unalloyed aluminium or 
waste and scrap of 
aluminium 
11. The following is added after Annex IV: 
"Annex V 
List of products originating in Turkey 
to which the provisions of Articles 3 and 4 do not apply, 
listed in the order of HS Chapters and Headings 
SEMIl- Semiconductor Equipment and Materials Institute Incorporated. 
/3 O 
Chapter 1 x -. 
Chapter 2 
Chapter 3 
0401 to 0402 
ex 0403 - Buttermilk, curdled milk and cream, Yoghurt, képhir and other fermented 
or acidified milk and cream, whether or not concentrated or containing 
added sugar or other sweetening matter or flavoured or containing added 
fruit or cocoa 
0404 to 0410 
0504 
0511 
Chapter 6 
0701 to 0709 
ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen 
ex 0711- Vegetables, except sweet corn of heading 0711 90 30, provisionally 
preserved (for example, by sulphur dioxide gas, in brine, in sulphur water 
or in other preservative solutions), but unsuitable in that state for 
immediate consumption 
0712 to 0714 
Chapter 8 
ex Chapter 9 - Coffee, tea, and spices, excluding maté of heading 0903 
Chapter 10 
Chapter 11 
Chapter 12 
ex 1302- Pectin 
1501tol514 
ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) 
and their fractions, whether or not refined, but not chemically modified 
ex 1516- Animal or vegetable fats and oils and their fractions, partly or wholly 
hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not 
refined, but not further prepared, excluding hydrogenated castor oil known 
as 'opal-wax' 
ex 1517 and 
ex 1518 - Margarines, imitation lard and other prepared edible fats 
ex 1522- Residues resulting from the treatment of fatty substances or animal or 
vegetable waxes, excluding degras 
Chapter 16 
1701 
ex 1702- Other sugars, including chemically pure lactose, maltose, glucose and 
fructose, in solid form; sugar syrups not containing added flavouring or 
IS/ 
colouring matter; artificial honey, whether or not mixed with natural 
honey; caramel excluding that of headings 1702 11 00, Ï702 30 51, 
1702 30 59, 1702 50 00 and 1702 90 10 
1703 
1801 and 1802 
ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans, 
molluscs or other aquatic invertebrates, sausages and the like or meat and 
meat offal of any kind, including fats of all kinds 
ex 2001 - Cucumbers and gherkins, onions, mango chutney, fruit of the genus 
Capsicum other than sweet peppers or pimentos, mushrooms and olives, 
prepared or preserved by vinegar or acetic acid 
2002 and 2003 
ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, frozen, other than products of heading 2006, excluding potatoes in 
the form of flour or meal and flakes of sweet corn 
ex 2005 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, not frozen, other than products of heading 2006, excluding potato 
and sweet corn products 
2006 and 2007 
ex 2008- Fruits, nuts and other edible parts of plants, otherwise prepared or 
preserved, whether or not containing added sugar or other sweetening 
matter or spirit, not elsewhere specified or included, excluding peanut 
butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of 
plants containing 5% or more by weight of starch, vine leaves, hop shoots 
and other similar edible parts of plants 
2009 
ex 2106 - Flavoured and coloured sugars, syrups and molasses 
2204 
2206 
ex 2207 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol 
or higher obtained from agricultural produce listed here 
ex 2208 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80% vol obtained from agricultural produce listed here. 
2209 
Chapter 23 
2401 
4501 
5301 and 5302 
131 
Article 2 
That Decision shall enter into force on 1 January 1999. 
Done at 
For the Joint Committee 
The President 
133 
FINANCIAL STATEMENT 
1. Budget heading: Chapter 12, Article 120 
2. Legal basis: Article 113 of the Treaty 
3. Titles of the agreements in question: 
Proposal for an amendment to the definition of the concept of "originating 
products" and the methods of administrative cooperation set out in Protocol 4 to 
the different Europe Agreements between the EC and the CEECs, the Baltic 
States and Slovenia and the Agreement on the European Economic Area, and in 
Protocol 3 to the free trade agreements between the EEC and the EFTA countries 
4. Purpose: 
To allow Central and Eastern European countries to continue applying flat rates 
where drawback is prohibited or exemption from customs duties is granted. 
To extend the system to industrial products originating in Turkey and simplify or 
correct certain rules, particularly those on determining which country is to be 
considered the originating country. 
5. Financial implications: 
As, for the purposes of industrial products, Turkey is already in a customs union 
with the Community and these products are therefore already zero rated when 
imported into the Community, and as the purpose of the amendments is 
essentially to facilitate trade or simplify administrative tasks, this proposal would 
not seem to have any major financial implications. 
m 
DECISION N° .../ OF THE EC-NORWAY JOINT COMMITTEE 
of '"' *' 
amending Protocol 3 to the Agreement between the European Economic 
Community and the Kingdom of Norway concerning the definition of the concept of 
"originating products" and methods of administrative cooperation 
THE JOINT COMMITTEE, 
Having regard to the Agreement between the European Economic Community and the 
Kingdom of Norway1, hereinafter referred to as "the Agreement", signed in Brussels on 
14 May 1973, 
Having regard to Protocol 3 concerning the definition of the concept of originating 
products and methods of administrative cooperation, hereinafter referred to as "Protocol 
3", and in particular Article 38 thereof, 
Whereas the definition of the term "originating products" needs to be amended to ensure 
the proper operation of the extended system of cumulation which permits the use of 
materials originating in the European Community, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the 
European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and 
Switzerland; 
Whereas, in view of the particular arrangement "on industrial products obtaining between 
the Community and Turkey, it would also be appropriate to extend the cumulation 
system to such products originating in Turkey; 
Whereas to facilitate trade and simplify administrative tasks it would be desirable to 
amend the wording of Articles 3 and 4; 
Whereas, to take account of changes in processing techniques and shortages of certain 
raw materials, some corrections must be made to the list of working and processing 
requirements which non-originating materials have to fulfil to qualify for originating 
status, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Protocol 3 is hereby amended as follows: 
1. Article l(i) shall be replaced by: 
"(i) 'added value' shall be taken to be the ex-works price minus the customs 
value of each of the materials incorporated which originate in the other 
countries referred to in Articles 3 and 4 or, where the customs value is not 
1OJN°L 171, 27.6.1973, p. 2 
W 
known or cannot be ascertained, the first price verifiably paid for the 
products in the Community or Norway." 
2. Articles 3 and 4 shall be replaced by: 
Article 3 
Cumulation in the European Community 
1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be 
considered as originating in the Community if such products are obtained there, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between the 
Community and each of these countries, provided that the working or processing carried 
out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall 
not be necessary that such materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in the Community does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in the Community only where the value added there is greater than the value of the 
materials used originating in any one of the other countries referred to in paragraph 1. If 
this is not so, the product obtained shall be considered as originating in the country which 
accounts for the highest value of originating materials used in the manufacture in the 
Community. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the Community, retain their origin if exported into 
one of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Community shall provide Norway, through the European Commission with details 
of the Agreements and their corresponding rules of origin, which are applied with the 
other countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
Article 4 
Cumulation in Norway 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which are 
mentioned in the list at Annex V to this Protocol. 
IH 
1. Without prejudice to the provisions of Article 2 paragraph 2, products'shall be 
considered as originating in Norway if such products are obtained there, Incorporating 
materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, 
Switzerland (including Liechtenstein)1 or Turkey2 in accordance with the provisions of 
the Protocol on rules of origin annexed to the Agreements between Norway and each of 
these countries, provided that the working or processing carried out in Norway goes 
beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such 
materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in Norway does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in Norway only where the value added there is greater than the value of the materials 
used originating in any one of the other countries referred to in paragraph 1. If this is not 
so, the product obtained shall be considered as originating in the country which accounts 
for the highest value of originating materials used in the manufacture in Norway. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in Norway, retain their origin if exported into one of 
these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
Norway shall provide the Community, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
3. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase "referred to in Article 4" 
shall be replaced by "referred to in Articles 3 and 4". 
4. In Article 26 the reference "C2/CP3" shall be replaced by "CN22/CN23". 
5. In Annex I, Note 5.2, "current conducting filaments" shall be added between 
"artificial man-made filaments" and "synthetic man-made staple fibres of 
polypropylene". 
6. In Annex I, Note 5.2 the fifth example ("A carpet with tufts ... are met.") shall be 
deleted. 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which are 
mentioned in the list at Annex V to this Protocol. 
(31 
7. In Annex II, between the rules for HS headings 2202 and 2208 the following rule 
shall be inserted: 
HS 
Heading 
No 
(1) 
2207 Description of product 
(2) 
Undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
80% vol or higher; ethyl 
alcohol and other spirits, 
denatured, of any 
strength. Working or processing of non-originating materials that 
confers originating status 
(3) or (4) 
Manufacture: 
- using materials not classified 
in headings 2207 or 2208 
132 
8. In Annex II, the rule for Chapter 57 shall be replaced by: 
Chapter 
57 Carpets and other textile 
floor coverings: 
-Ofneedleloomfelt 
-Of other felt 
- Other Manufacture from (1): 
- natural fibres 
or 
- chemical materials or textile pulp 
However: 
- polypropylene filament of 
heading 5402, 
- polypropylene fibres of heading 
5503 or 5506, 
- polypropylene filament tow of 
heading 5501, of which the 
denomination in all cases of a 
single filament or fibre is less 
than 9 decitex, may be used 
provided their value does not 
exceed 40% of the ex-works 
price of the product 
- jute fabric may be used as 
backing 
Manufacture from(l): 
- natural fibres not carded or 
combed or otherwise processed 
for spinning, 
or 
- chemical materials or textile pulp 
Manufacture from(l): 
- coir or jute yam^a\ 
- synthetic or artificial filament yam, 
- natural fibres, or 
- man-made staple fibres not carded 
or combed or otherwise 
processed for spinning 
But jute fabric may be used as 
backing 
(a) The use of jute yam is authorised from 1.7.2000. 
I3*i 
9. In Annex II, the rule for HS heading 7006 shall be replaced by: 
7006 Glass of headings 7003, 
7004 or 7005, bent, 
edgeworked, engraved, 
drilled, enamelled or 
otherwise worked, but 
not framed or fitted with 
other materials : 
- glass plate substrate 
coated with dielectric 
thin film, semi­
conductor grade, in 
accordance with 
SEMll standards1 
- other Manufacture from materials 
(substrates) of heading 7006 
Manufacture from materials 
of heading 7001 
10. In Annex II, the rule for HS heading 7601 shall be replaced by: 
7601 Unwrought aluminium Manufacture in which: 
- all the materials used are 
classified within a heading 
other than that of the 
product; and 
- the value of all the 
materials used does not 
exceed 50 % of the ex-
works price of the product 
or 
Manufacture by thermal or 
electrolytic treatment from 
unalloyed aluminium or 
waste and scrap of 
aluminium 
11. The following is added after Annex IV: 
"Annex V 
List of products originating in Turkey 
to which the provisions of Articles 3 and 4 do not apply, 
listed in the order of HS Chapters and Headings 
SEMII- Semiconductor Equipment and Materials Institute Incorporated. 
l^O 
Chapter 1 
Chapter 2 
Chapter 3 
0401 to 0402 
ex 0403 - Buttermilk, curdled milk and cream, yoghurt, képhir and other fermented 
or acidified milk and cream, whether or not concentrated or containing 
added sugar or other sweetening matter or flavoured or containing added 
fruit or cocoa 
0404 to 0410 
0504 
0511 
Chapter 6 
0701 to 0709 
ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen 
ex 0711- Vegetables, except sweet corn of heading 0711 90 30, provisionally 
preserved (for example, by sulphur dioxide gas, in brine, in sulphur water 
or in other preservative solutions), but unsuitable in that state for 
immediate consumption 
0712 to 0714 
Chapter 8 
ex Chapter 9 - Coffee, tea, and spices, excluding maté of heading 0903 
Chapter 10 
Chapter 11 
Chapter 12 
ex 1302- Pectin 
1501tol514 
ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) 
and their fractions, whether or not refined, but not chemically modified 
ex 1516 - Animal or vegetable fats and oils and their fractions, partly or wholly 
hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not 
refined, but not further prepared, excluding hydrogenated castor oil known 
as 'opal-wax' 
ex 1517 and 
ex 1518 - Margarines, imitation lard and other prepared edible fats 
ex 1522 - Residues resulting from the treatment of fatty substances or animal or 
vegetable waxes, excluding degras 
Chapter 16 
1701 
ex 1702 - Other sugars, including chemically pure lactose, maltose, glucose and 
fructose, in solid form; sugar syrups not containing added flavouring or 
Mr 
colouring matter; artificial honey, whether or not mixed with natural 
honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 
1702 30 59, 1702 50 00 and 1702 90 10 
1703 
1801 and 1802 
ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans, 
molluscs or other aquatic invertebrates, sausages and the like or meat and 
meat offal of any kind, including fats of all kinds 
ex 2001 - Cucumbers and gherkins, onions, mango chutney, fruit of the genus 
Capsicum other than sweet peppers or pimentos, mushrooms and olives, 
prepared or preserved by vinegar or acetic acid 
2002 and 2003 
ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, frozen, other than products of heading 2006, excluding potatoes in 
the form of flour or meal and flakes of sweet corn 
ex 2005 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, not frozen, other than products of heading 2006, excluding potato 
and sweet corn products 
2006 and 2007 
ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or 
preserved, whether or not containing added sugar or other sweetening 
matter or spirit, not elsewhere specified or included, excluding peanut 
butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of 
plants containing 5% or more by weight of starch, vine leaves, hop shoots 
and other similar edible parts of plants 
2009 
ex 2106 - Flavoured and coloured sugars, syrups and molasses 
2204 
2206 
ex 2207 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol 
or higher obtained from agricultural produce listed here 
ex 2208 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80% vol obtained from agricultural produce listed here. 
2209 
Chapter 23 
2401 
4501 
5301 and 5302 
Ml 
Article 2 
That Decision shall enter into force on 1 January 1999. 
Done at 
For the Joint Committee 
The President 
H 3 
FINANCIAL STATEMENT 
1 • Budget heading: Chapter 12, Article 120 
2- Legal basis: Article 113 of the Treaty 
3. Titles of the agreements in question: 
Proposal for an amendment to the definition of the concept of "originating 
products" and the methods of administrative cooperation set out in Protocol 4 to 
the different Europe Agreements between the EC and the CEECs, the Baltic 
States and Slovenia and the Agreement on the European Economic Area, and in 
Protocol 3 to the free trade agreements between the EEC and the EFTA countries 
4. Purpose: 
To allow Central and Eastern European countries to continue applying flat rates 
where drawback is prohibited or exemption from customs duties is granted. 
To extend the system to industrial products originating in Turkey and simplify or 
correct certain rules, particularly those on determining which country is to be 
considered the originating country. 
5. Financial implications: 
As, for the purposes of industrial products, Turkey is already in a customs union 
with the Community and these products are therefore already zero rated when 
imported into the Community, and as the purpose of the amendments is 
essentially to facilitate trade or simplify administrative tasks, this proposal would 
not seem to have any major financial implications. 
M°j 
DECISION N° .../ OF THE EC-ICELAND JOINT COMMITTEE 
of 
amending Protocol 3 to the Agreement between the European Economic 
Community and the Republic of Iceland concerning the definition of the concept of 
"originating products" and methods of administrative cooperation 
THE JOINT COMMITTEE, 
Having regard to the Agreement between the European Economic Community and the 
Republic of Iceland1, hereinafter referred to as "the Agreement", signed in Brussels on 22 
July 1972, 
Having regard to Protocol 3 concerning the definition of the concept of originating 
products and methods of administrative cooperation, hereinafter referred to as "Protocol 
3", and in particular Article 38 thereof, 
Whereas the definition of the term "originating products" needs to be amended to ensure 
the proper operation of the extended system of cumulation which permits the use of 
materials originating in the European Community, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the 
European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and 
Switzerland; 
Whereas, in view of the particular arrangement on industrial products obtaining between 
the Community and Turkey, it would also be appropriate to extend the cumulation 
system to such products originating in Turkey; 
Whereas to facilitate trade and simplify administrative tasks it would be desirable to 
amend the wording of Articles 3 and 4; 
Whereas, to take account of changes in processing techniques and shortages of certain 
raw materials, some corrections must be made to the list of working and processing 
requirements which non-originating materials have to fulfil to qualify for originating 
status, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Protocol 3 is hereby amended as follows: 
1. Article 1 (i) shall be replaced by: 
"(i) 'added value' shall be taken to be the ex-works price minus the customs 
value of each of the materials incorporated which originate in the other 
countries referred to in Articles 3 and 4 or, where the customs value is not 
1OJN°L 301, 31.12.1972, p.2. 
Mf 
known or cannot be ascertained, the first price verifiably paid for the 
products in the Community or Iceland." 
2. Articles 3 and 4 shall be replaced by: 
Article 3 
Cumulation in the European Community 
1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be 
considered as originating in the Community if such products are obtained there, 
incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the 
Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, 
Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with 
the provisions of the Protocol on rules of origin annexed to the Agreements between the 
Community and each of these countries, provided that the working or processing carried 
out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall 
not be necessary that such materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in the Community does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in the Community only where the value added there is greater than the value of the 
materials used originating in any one of the other countries referred to in paragraph 1. If 
this is not so, the product obtained shall be considered as originating in the country which 
accounts for the highest value of originating materials used in the manufacture in the 
Community. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the Community, retain their origin if exported into 
one of these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Community shall provide Iceland, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
Article 4 
Cumulation in Iceland 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which are 
mentioned in the list at Annex V to this Protocol. KM 
N<o 
1. Without prejudice to the provisions of Article 2 paragraph 2, products,'shall be 
considered as originating in Iceland if such products are obtained there, incorporating 
materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, 
Switzerland (including Liechtenstein)1 or Turkey2 in accordance with the provisions of 
the Protocol on rules of origin annexed to the Agreements between Iceland and each of 
these countries, provided that the working or processing carried out in Iceland goes 
beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such 
materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in Iceland does not go beyond the 
operations referred to in Article 7, the product obtained shall be considered as originating 
in Iceland only where the value added there is greater than the value of the materials used 
originating in any one of the other countries referred to in paragraph 1. If this is not so, 
the product obtained shall be considered as originating in the country which accounts for 
the highest value of originating materials used in the manufacture in Iceland. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in Iceland, retain their origin if exported into one of 
these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
Iceland shall provide the Community, through the European Commission with details of 
the Agreements and their corresponding rules of origin, which are applied with the other 
countries referred to in paragraph 1. The European Commission shall publish in the 
Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
3. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase "referred to in Article 4" 
shall be replaced by "referred to in Articles 3 and 4". 
4. In Article 26 the reference "C2/CP3" shall be replaced by "CN22/CN23". 
5. In Annex I, Note 5.2, "current conducting filaments" shall be added between 
"artificial man-made filaments" and "synthetic man-made staple fibres of 
polypropylene". 
6. In Annex I, Note 5.2 the fifth example ("A carpet with tufts ... are met.") shall be 
deleted. 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which are 
mentioned in the list at Annex V to this Protocol. 
Ml 
7. In Annex II, between the rules for HS headings 2202 and 2208 the following rule 
shall be inserted: • . 
HS 
Heading 
No 
(1) 
2207 Description of product 
(2) 
Undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
80% vol or higher; ethyl 
alcohol and other spirits, 
denatured, of any 
strength. Working or processing of non-originating materials that 
confers originating status 
(3) or (4) 
Manufacture: 
- using materials not classified 
in headings 2207 or 2208 
H? 
8. In Annex II, the rule for Chapter 57 shall be replaced by: 
Chapter 
57 Carpets and other textile 
floor coverings: 
- Of needleloom felt 
-Of other felt 
- Other Manufacture from (1): 
- natural fibres 
or 
- chemical materials or textile pulp 
However: 
- polypropylene filament of 
heading 5402, 
- polypropylene fibres of heading 
5503 or 5506, 
- polypropylene filament tow of 
heading 5501, of which the 
denomination in all cases of a 
single filament or fibre is less 
than 9 decitex, may be used 
provided their value does not 
exceed 40% of the ex-works 
price of the product 
- jute fabric may be used as 
backing 
Manufacture from(l): 
- natural fibres not carded or 
combed or otherwise processed 
for spinning, 
or 
- chemical materials or textile pulp 
Manufacture from(l): 
- coir or jute yam(a\ 
- synthetic or artificial filament yam, 
- natural fibres, or 
- man-made staple fibres not carded 
or combed or otherwise 
processed for spinning 
But jute fabric may be used as 
backing 
(a) The use of jute yam is authorised from 1.7.2000. 
M 
9. In Annex II, the rule for HS heading 7006 shall be replaced by: 
7006 Glass of headings 7003, 
7004 or 7005, bent, 
edgeworked, engraved, 
drilled, enamelled or 
otherwise worked, but 
not framed or fitted with 
other materials : 
- glass plate substrate 
coated with dielectric 
thin film, semi­
conductor grade, in 
accordance with 
SEMII standards1 
- other Manufacture from materials 
(substrates) of heading 7006 
Manufacture from materials 
of heading 7001 
10. In Annex II, the rule for HS heading 7601 shall be replaced by: 
7601 Unwrought aluminium Manufacture in which: 
- all the materials used are 
classified within a heading 
other than that of the 
product; and 
- the value of all the 
materials used does not 
exceed 50 % of the ex-
works price of the product 
or 
Manufacture by thermal or 
electrolytic treatment from 
unalloyed aluminium or 
waste and scrap of 
aluminium 
11. The following is added after Annex IV: 
"Annex V 
List of products originating in Turkey 
to which the provisions of Articles 3 and 4 do not apply, 
listed in the order of HS Chapters and Headings 
SEMII- Semiconductor Equipment and Materials Institute Incorporated. 
>& 
Chapter 1 
Chapter 2 
Chapter 3 
0401 to 0402 
ex 0403 - Buttermilk, curdled milk and cream, yoghurt, képhir and other fermented 
or acidified milk and cream, whether or not concentrated or containing 
added sugar or other sweetening matter or flavoured or containing- added 
fruit or cocoa 
0404 to 0410 
0504 
0511 
Chapter 6 
0701 to 0709 
ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen 
ex 0711- Vegetables, except sweet corn of heading 0711 90 30, provisionally 
preserved (for example, by sulphur dioxide gas, in brine, in sulphur water 
or in other preservative solutions), but unsuitable in that state for 
immediate consumption 
0712 to 0714 
Chapter 8 
ex Chapter 9 - Coffee, tea, and spices, excluding maté of heading 0903 
Chapter 10 
Chapter 11 
Chapter 12 
ex 1302- Pectin 
1501tol514 
ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) 
and their fractions, whether or not refined, but not chemically modified 
ex 1516 - Animal or vegetable fats and oils and their fractions, partly or wholly 
hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not 
refined, but not further prepared, excluding hydrogenated castor oil known 
as 'opal-wax' 
ex 1517 and 
ex 1518 - Margarines, imitation lard and other prepared edible fats 
ex 1522- Residues resulting from the treatment of fatty substances or animal or 
vegetable waxes, excluding degras 
Chapter 16 
1701 
ex 1702 — Other sugars, including chemically pure lactose, maltose, glucose and 
fructose, in solid form; sugar syrups not containing added flavouring or 
in 
colouring matter; artificial honey, whether or not mixed with natun 
honey; caramel excluding that of headings 1702 11 00, 1702 30 $\ 
1702 30 59, 1702 50 00 and 1702 90 10 
1703 
1801 and 1802 
ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans, 
molluscs or other aquatic invertebrates, sausages and the like or meat and 
meat offal of any kind, including fats of all kinds 
ex 2001- Cucumbers and gherkins, onions, mango chutney, fruit of the genus 
Capsicum other than sweet peppers or pimentos, mushrooms and olives, 
prepared or preserved by vinegar or acetic acid 
2002 and 2003 
ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, frozen, other than products of heading 2006, excluding potatoes in 
the form of flour or meal and flakes of sweet corn 
ex 2005 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, not frozen, other than products of heading 2006, excluding potato 
and sweet corn products 
2006 and 2007 
ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or 
preserved, whether or not containing added sugar or other sweetening 
matter or spirit, not elsewhere specified or included, excluding peanut 
butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of 
plants containing 5% or more by weight of starch, vine leaves, hop shoots 
and other similar edible parts of plants 
2009 
ex 2106 - Flavoured and coloured sugars, syrups and molasses 
2204 
2206 
ex 2207 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol 
or higher obtained from agricultural produce listed here 
ex 2208 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80% vol obtained from agricultural produce listed here. 
2209 
Chapter 23 
2401 
4501 
5301 and 5302 
/fl 
Article 2 
That Decision shall enter into force on 1 January 1999. 
Done at 
For the Joint Committee 
The President 
lT3 
FINANCIAL STATEMENT 
*• Budget heading: Chapter 12, Article 120 
2- Legal basis: Article 113 of the Treaty 
3. Titles of the agreements in question: 
Proposal for an amendment to the definition of the concept of "originating 
products" and the methods of administrative cooperation set out in Protocol 4 to 
the different Europe Agreements between the EC and the CEECs, the Baltic 
States and Slovenia and the Agreement on the European Economic Area, and in 
Protocol 3 to the free trade agreements between the EEC and the EFTA countries 
4. Purpose: 
To allow Central and Eastern European countries to continue applying flat rates 
where drawback is prohibited or exemption from customs duties is granted. 
To extend the system to industrial products originating in Turkey and simplify or 
correct certain rules, particularly those on determining which country is to be 
considered the originating country. 
5. Financial implications: 
As, for the purposes of industrial products, Turkey is already in a customs union 
with the Community and these products are therefore already zero rated when 
imported into the Community, and as the purpose of the amendments is 
essentially to facilitate trade or simplify administrative tasks, this proposal would 
not seem to have any major financial implications. 
IPI 
DECISION N° .../ OF THE EEA JOINT COMMITTEE 
No .. 
of 
amending Protocol 4 to the EEA Agreement on rules of origin 
THE EEA JOINT COMMITTEE, 
Having regard to the Agreement on the European Economic Area, as adjusted by the 
Protocol adjusting that Agreement, hereinafter referred to as the Agreement, and in 
particular Article 98 thereof, 
Whereas the definition of the term "originating products" needs to be amended to ensure 
the proper operation of the extended system of cumulation which permits the use of 
materials originating in the European Community, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the 
European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and 
Switzerland; 
Whereas, in view of the particular arrangement on industrial products obtaining between 
the Community and Turkey, it would also be appropriate to extend the cumulation 
system to such products originating in Turkey; 
Whereas to facilitate trade and simplify administrative tasks it would be desirable to 
amend the wording of Article 3; 
Whereas, to take account of changes in processing techniques and shortages of certain 
raw materials, some corrections must be made to the list of working and processing 
requirements which non-originating materials have to fulfil to qualify for originating 
status, 
HAS DECIDED AS FOLLOWS: 
Article 1 
Protocol 4 is hereby amended as follows: 
1. Article 1 (i) shall be replaced by : 
"(i) 'added value' shall be taken to be the ex-works price minus the customs 
value of each of the materials incorporated which originate in the other 
countries referred to in Articles 3 and 4 or, where the customs value is not 
known or cannot be ascertained, the first price verifiably paid for the 
products in the EEA." 
2. Article 3 shall be replaced by: 
AT 
Article 3 
Cumulation with originating materials 
1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be 
considered as originating in the EEA if such products are obtained there, incorporating 
materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, 
the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, 
Switzerland (including Liechtenstein)1 or Turkey2 in accordance with the provisions of 
the Protocol on rules of origin annexed to the Agreements between the Contracting 
Parties and these countries, provided that the working or processing carried out in the 
EEA goes beyond that referred to in Article 6 of this Protocol. It shall not be necessary 
that such materials have undergone sufficient working or processing. 
2. Where the working or processing carried out in the EEA does not go beyond the 
operations referred to in Article 6, the product obtained shall be considered as originating 
in the EEA only where the value added there is greater than the value of the materials 
used originating in any one of the other countries referred to in paragraph 1. If this is not 
so, the product obtained shall be considered as originating in the country which accounts 
for the highest value of originating materials used in the manufacture in the EEA. 
3. Products, originating in one of the countries referred to in paragraph 1, which do not 
undergo any working or processing in the EEA, retain their origin if exported into one of 
these countries. 
4. The cumulation provided for in this Article may only be applied to materials and 
products which have acquired originating status by an application of rules of origin 
identical to those given in this Protocol. 
The Contracting Parties shall provide each other, through the European Commission with 
details of the Agreements and their corresponding rules of origin, which are applied with 
the other countries referred to in paragraph 1. The European Commission shall publish in 
the Official Journal of the European Communities (C Series) the date on which the 
cumulation, provided for in this Article may be applied by those countries listed in 
paragraph 1 which have fulfilled the necessary requirements. 
3. In Article 25 the reference "C2/CP3" shall be replaced by "CN22/CN23". 
4. In Annex I, Note 5.2, "current conducting filaments" shall be added between 
"artificial man-made filaments" and "synthetic man-made staple fibres of 
polypropylene". 
1 The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to 
the Agreement on the European Economic Area. 
2 Cumulation as provided for in this Article does not apply to materials originating in Turkey which are 
mentioned in the list at Annex V to this Protocol. 
ICI 
5. In Annex I, Note 5.2 the fifth example ("A carpet with tufts . .. are met."} shall be 
deleted. 
6. In Annex II, between the rules for HS headings 2202 and 2208 the following rule 
shall be inserted: 
HS 
Heading 
No 
(1) 
2207 Description of product 
(2) 
Undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
80% vol or higher; ethyl 
alcohol and other spirits, 
denatured, of any 
strength. Working or processing of non-originating materials that 
confers originating status 
(3) or (4) 
Manufacture: 
- using materials not classified 
in headings 2207 or 2208 
m 
7. In Annex II, the rule for Chapter 57 shall be replaced by: 
Chapter 
57 Carpets and other textile 
floor coverings: 
- Of needleloom felt 
-Of other felt 
- Other Manufacture from (1): 
- natural fibres 
or 
- chemical materials or textile pulp 
However: 
- polypropylene filament of 
heading 5402, 
- polypropylene fibres of heading 
5503 or 5506, 
- polypropylene filament tow of 
heading 5501, of which the 
denomination in all cases of a 
single filament or fibre is less 
than 9 decitex, may be used 
provided their value does not 
exceed 40% of the ex-works 
price of the product 
- jute fabric may be used as 
backing 
Manufacture from(l): 
- natural fibres not carded or 
combed or otherwise processed 
for spinning, 
or 
- chemical materials or textile pulp 
Manufacture from(l): 
- coir or jute yarn(a), 
- synthetic or artificial filament yam, 
- natural fibres, or 
- man-made staple fibres not carded 
or combed or otherwise 
processed for spinning 
But jute fabric may be used as 
backing 
<a) The use of jute yam is authorised from 1.7.2000. 
/ff 
8. In Annex II, the rule for HS heading 7006 shall be replaced by 
7'J J 6 Glass of headings 7003, 
7004 or 7005, bent, 
edgeworked, engraved, 
drilled, enamelled or 
otherwise worked, but 
not framed or fitted with 
other materials : 
- glass plate substrate 
coated with dielectric 
thin film, semi­
conductor grade, in 
accordance with 
SEMI1 standards1 
- other Manufacture from materials 
(substrates) of heading 7006 
Manufacture from materials 
of heading 7001 
In Annex II. the rule for HS heading 7601 shall be replaced by 
7601 L'nwrought aluminium Manufacture in which: 
- all the materials used are 
classified within a heading 
other than lhat of the 
product; and 
- the value of all the 
materials used does not 
exceed 50 % of the ex-
works price of the product 
or 
Manufacture by thermal or 
electrolytic treatment from 
unalloyed aluminium or 
waste and scrap of 
aluminium 
10. The following is added after Annex VI: 
"Annex VII 
List of products originating in Turkey 
to which the provisions of Article 3 do not apply. 
listed in the order of HS Chapters and Headings 
SEMI I- Semiconductor Equipment and Materials Institute Incorporated. 
>*? 
Chapter 1 
Chapter 2 
Chapter 3 
0401 to 0402 
ex 0403 - Buttermilk, curdled milk and cream, yoghurt, képhir and other fermented 
or acidified milk and cream, whether or not concentrated or containing 
added sugar or other sweetening matter or flavoured or containing added 
fruit or cocoa 
0404 to 0410 
0504 
0511 
Chapter 6 
0701 to 0709 
ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen 
ex 0711- Vegetables, except sweet com of heading 0711 90 30, provisionally 
preserved (for example, by sulphur dioxide gas, in brine, in sulphur water 
or in other preservative solutions), but unsuitable in that state for 
immediate consumption 
0712 to 0714 
Chapter 8 
ex Chapter 9 - Coffee, tea, and spices, excluding maté of heading 0903 
Chapter 10 
Chapter 11 
Chapter 12 
ex 1302- Pectin 
1501tol514 
ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) 
and their fractions, whether or not refined, but not chemically modified 
ex 1516 - Animal or vegetable fats and oils and their fractions, partly or wholly 
hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not 
refined, but not further prepared, excluding hydrogenated castor oil known 
as 'opal-wax' 
ex 1517 and 
ex 1518 - Margarines, imitation lard and other prepared edible fats 
ex 1522- Residues resulting from the treatment of fatty substances or animal or 
vegetable waxes, excluding degras 
Chapter 16 
1701 
ex 1702 - Other sugars, including chemically pure lactose, maltose, glucose and 
fructose, in solid form; sugar syrups not containing added flavouring or 
/QÔ 
colouring matter; artificial honey, whether or not mixed with natural 
honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 
1702 30 59, 1702 50 00 and 1702 90 10 
1703 
1801 and 1802 
ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans, 
molluscs or other aquatic invertebrates, sausages and the like or meat and 
meat offal of any kind, including fats of all kinds 
ex 2001- Cucumbers and gherkins, onions, mango chutney, fruit of the genus 
Capsicum other than sweet peppers or pimentos, mushrooms and olives, 
prepared or preserved by vinegar or acetic acid 
2002 and 2003 
ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, frozen, other than products of heading 2006, excluding potatoes in 
the form of flour or meal and flakes of sweet corn 
ex 2005 - Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, not frozen, other than products of heading 2006, excluding potato 
and sweet corn products 
2006 and 2007 
ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or 
preserved, whether or not containing added sugar or other sweetening 
matter or spirit, not elsewhere specified or included, excluding peanut 
butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of 
plants containing 5% or more by weight of starch, vine leaves, hop shoots 
and other similar edible parts of plants 
2009 
ex 2106- Flavoured and coloured sugars, syrups and molasses 
2204 
2206 
ex 2207 - Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol 
or higher obtained from agricultural produce listed here 
ex 2208 - Undenatured ethyl alcohol of an alcoholic strength by volume of less than 
80%) vol obtained from agricultural produce listed here. 
2209 
Chapter 23 
2401 
4501 
5301 and 5302 
%{ 
Article 2 
That Decision shall enter into force on 1 January 1999. 
Done at 
For the EEAJoint Committee 
The President 
/(el 
FINANCIAL STATEMENT 
1. Budget heading: Chapter 12, Article 120 
2. Legal basis: Article 113 of the Treaty 
3. Titles of the agreements in question: 
Proposal for an amendment to the definition of the concept of "originating 
products" and the methods of administrative cooperation set out in Protocol 4 to 
the different Europe Agreements between the EC and the CEECs, the Baltic 
States and Slovenia and the Agreement on the European Economic Area, and in 
Protocol 3 to the free trade agreements between the EEC and the EFTA countries 
4. Purpose: 
To allow Central and Eastern European countries to continue applying flat rates 
where drawback is prohibited or exemption from customs duties is granted. 
To extend the system to industrial products originating in Turkey and simplify or 
correct certain rules, particularly those on determining which country is to be 
considered the originating country. 
5. Financial implications: 
As, for the purposes of industrial products, Turkey is already in a customs union 
with the Community and these products are therefore already zero rated when 
imported into the Community, and as the purpose of the amendments is 
essentially to facilitate trade or simplify administrative tasks, this proposal would 
not seem to have any major financial implications. 
IQ>3 



ISSN 0254-1475 
COM(98) 389 final 
DOCUMENTS 
EN 02 10 11 06 
Catalogue number : CB-CO-98-404-EN-C 
ISBN 92-78-37371-0 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
M