Proposal for a COUNCIL DECISION amending at mid-term Council Decision 91/482/EEC of 25 July 1991 on the Association of the Overseas Countries and Territories with the European Community
Date: 1996-02-14
Institutions: European Commission
Subjects: association agreement (EU), economic cooperation, overseas countries and territories, trade cooperation

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  14.02.1996 
COM(95)  739  final 

96/0043  (CNS) 

Proposal  for  a 

COUNCIL  DECISION 

amending  at  mid-term  Council  Decision  91/482/EEC  of  25 July  1991 
on  the  Association  of  the  Overseas  Countries  and  Territories 
with  the  European  Community 

(presented  by  the  Commission) 

Proposal 

for  a Council  Decision 

amending  at  mid-term  Council  Decision  91/482/EEC  of  25  July  1991 
on  the  association  of  the  overseas  countries  and  territories 
with  the European  Community 

EXPLANATORY  MEMORANDUM 

On  25  July  1991  the  Council  adopted  Decision  91/482/EEC  on  the  association  of  the 
overseas  countries  and  territories  (OCT)  with  the  European  Economic  Community.1  It 
concerns~20  OCT,  of  which: 

11 are  linked  to  the United  Kingdom 
6  are  linked  to  France 
2  are  linked  to  the  Netherlands 
1  is  an  autonomous  region  of  Denmark 

Like  the fourth  Lomé  Convention  with  the  ACP  States,  the Decision  was  adopted  for  a 
period often  years, starting on  1 March  1990, with provision for a review before  1 March 
1995. 

1. 

The  review  was  the  subject  of  a  communication  from  the  Commission  to  the 
Council  on  21  december  1994 which  set  out: 

the  social  and  economic  situation  of  the  OCT, 
their  status  vis-à-vis  the Member  State  concerned  and  Community  law, 
an  overview  of  the provisions  of  the Association  Decision,  and 
a  specific  proposal  in  respect  of  each  amendment.2 

The  proposals  were  discussed  within  the  Council's  ACP  working  party  from 
January  to  September  this  year  and,  with  DG  VIII  playing  a  coordinating  role, 
many  Commission  officials  from  the  relevant  departments  (Legal  Service  and 
D"Gs I,  V,  VI,  X,  XI,  XIII,  XV,  XXI  and  XXIII)  came  to  explain  the  proposals 
concerning their area of competence and give the delegations as much  information 
as  possible. 

2. 

But two elements  crucial to the conclusion  of the review were missing  (hence the 
failure  to  meet  the  1 March  1995 deadline),  namely: 

the  amount  of  financial  resources  available  (from  the  EDF  and  the EEB), 
which  was  not  decided  until  the  Cannes  European  Council  on  27  June; 
the  conclusion  of  the  negotiations  on  the  mid-term  review  of  Lomé  IV, 
which  were  not  wound  up  until  the  ACP-EC  ministerial  conference  of 

OJ  L  263,  19.09.1991, pp  1 to  153. 
COM(94)  538  final  of  21.12.1994. 

4& 

30  June,  it  being  proposed  in  the  Commission's  communication  to  take 
over  many  of  the  Lomé  amendments  mutatis  mutandis. 

In  this  proposal  the  Commission  confirms  the  guidelines  that  it  put  forward  in 
December  1994  with  some  adjustments  to  take  account  of  the  discussions  held 
since  then  and  the  addition  of  the two  elements  referred  to  above. 

The  form  of  the  proposal  is  standard  for  an  act  amending  legislation. 

The  recitals  set  out  succinctly,  but  as  far  as  is  possible  comprehensively,  the 
amendments  proposed. 

repeating 

Without 
the  communication 
the  explanatory  memorandum  of 
COM(94)  538, the main  changes  proposed  and the reasons  for  them  are  outlined 
below. 

L 

Amendments  concerning  the innovations  made in  1991 

A. 

Partnership 

The  Commission/Member  State/OCT  partnership  arrangements  were  set  up  in 
1991  on  a proposal  of  the  Commission,  which  drew  on  the  example  of  the joint 
committees  set up under the preferential  agreements.  The Commission thus made 
good  the  clear  lack  of  provision  for  democratic  dialogue  in  the  previous  six 
Association  Decisions  that  had  run  since  1957. 

At  the  request  of  the  OCT  local  authorities,  it  is  proposed  to  strengthen 
partnership  arrangements  by holding  regular  consultations  with these  authorities. 

B. 

Trade  arrangements 

By  its  1991 Decision  the Council offered  more far-reaching  concessions  than  the 
Community  had  ever  offered  before  in  the  many  agreements  concluded  with 
associate  countries.  They  included: 

free  access  (i.e.  no  customs  duties,  levies  or  quotas)  for  all  products 
originating in the OCT (including CAP products, for which the ACP  States 
enjoy  preferential  treatment  but  not  free  access): 

more  flexibility  in the  rules  of  origin; 

the  introduction  of  a transhipment  system. 

Nevertheless, the Council  retained the principle of cumulation for  ACP  and  OCT 
products, which  means that ACP products  can acquire OCT origin  after  working, 
however  simple. 

1. 

2. 

These  concessions,  combined  with  continued  cumulation,  created  disruption  in a 
sector  of  the  agricultural  market  (rice)  in  1992-93  and  the  Commission  was  led 
to  adopt  safeguard  measures, which  were then  eased  and  then  abolished.3 

In November  1993 the  Commission  sent  a report  to  the  Council  with  a  proposal 
to  amend  Article  101  of  Decision  91/482/EEC  attached.4  The  proposal  did  not, 
however,  win  consensus  among  the Member  States. 

It is worth reproducing here the two main conclusions  of this report that gave rise 
to  the  proposal  for  amendment  (point  55), namely: 

"- 

that  the  trade  arrangements  adopted  in  mid-1991  should  be  retained  to 
enable  what  are  still  new  mechanisms  to  continue  operating  and  thus 
further  the development  aims  of the association  between the OCT  and the 
Community; 

that there is a fundamental  clash between two Community  policies  arising 
from  the fact  that free  access  is being given to products  originating  in the 
OCT  which  would, 
the  Community,  be  governed  by  market 
organizations." 

in 

The  Commission  canvassed  a  number  ways  of  solving  this  clash  between  two 
Community  policies  -  development  of  the  OCT  and  the  common  agricultural 
policy:  abolition  of ACP/OCT  cumulation,  across-the-board  imposition  of  levies, 
introduction  of  a  reduced  levy,  and  creation  of  machinery  for  setting  reference 
prices  for  imports  with  the  aim  of  avoiding  safeguard  measures,  this  last  option 
being  the  one preferred  by the  Commission,  the  Commission  reserving  the  right 
to  review  it  again  at  a later  date  if  necessary. 

3. 

Three  important  factors  have  come  into  play  since  then. 

The OCT trade arrangements  are mostly  being used for  agricultural  products  that 
are  the  most  sensitive  for  the  Community.  This  has  come  about  because  of: 

the  free  access  of  OCT  products  combined  with  cumulation  of  ACP 
products  (what  is more, this  cumulation  is to be  extended  to the  products 
of  other  developing  countries  following  the  Lomé  IV  mid-term  review); 

in other  cases  a lack  of  clarity  in the rules  of  origin  (dairy  products  from 
New  Zealand)  or  in  those  governing  export  refunds  (Community  dairy 
products). 

The  result  is: 

Decision  93/127/EEC,  OJ  L  50, 2.3.1993, p. 27. 
Decision  93/211/EEC,  OJ  L  90,  14.4.1993, p. 36. 
Decision  93/356/EEC,  OJ  L  147,  18.6.1993, p. 28. 
COM(93)  555  final,  25.11.1993. 

unequal  trading  conditions  that  are  -  potentially  at  least  -  damaging  for 
Community  operators; 
uncertainty  for  operators  because  of  the  substantial  risk  of  safeguard 
measures  being  adopted  and  the possibility  of differing  interpretations  of 
trade  legislation; 
little  impact  on  development,  as  the  Court  of  First  Instance  noted  (see 
below), and a low level of investment and employment generation  because 
of  the  low  level  of  value  added:  furthermore,  such  activity  may  also 
demand  extra  spending  on  public  infrastructure  (e.g. ports). 

On  14  September  this  year  the  Court  of  First  Instance  of  the  European 
Communities  ruled  for  the  first  time  on  the  general  trade  arrangements  for  the 
OCT  following  the  introduction  of  safeguard  measures  on  rice  in  1993.5 
It 
remarks  that  "although  the  OCT  admittedly  enjoy  a more  favourable  status  than 
do  other  countries  associated  with  the  Community,  they  are  none  the  less  not 
members  of  it"6, that  "the aim of the system  of free  movement  of goods  between 
the  OCT  and the  Community  under  Part Four  of the Treaty  is not to  establish  an 
internal market of the kind set up by the Treaty between the Member  States"7 and 
that  "decisions....must  therefor  serve to strengthen  the  association  of  the  OCT  in 
jointly  economic  and  social 
to  promote 
order 
development...without,  however,  hindering  the  adoption  of  a  common  policy  in 
the  sphere  of  agriculture...".8 

trade  and 

increase 

to 

For  all  these  reasons,  and  following  a  wealth  of  discussion  on  these  sensitive 
issues,  it  is  proposed  to: 

maintain the free  access accorded since  1991 to products originating in the 
OCT; 
couple  it with machinery  for  applying minimum  import prices  to  products 
subject  to  a  common  organization  of  the  market  (Annex  Ha  of  the 
Decision); 
do  away  with  automatic  cumulation  for  ACP/OCT  agricultural  products 
while  retaining  the  possibility  of  specific  derogations  subject  to  controls 
(Annex  II  of  the  Decision):  the  least-developed  OCT  referred  to  in 
Article  230 of the Association Decision shall be accorded priority for  such 
derogations;9 
adjust  the  list  in  Annex  2  to  Annex  II  in  order  to  take  account  of  the 
changes  in  the  Combined  Nomenclature  which  are  applicable  from 
1  January  1996; 
include in this  list the rules for  petroleum  products  and  delete Annex  8 to 
Annex  II; 
clarify  the  rules  for  certain  agricultural  products  on  the  list; 

— 

Joined  Cases  T-480/93  and  T-483/93. 
91st  paragraph,  p.  11-20 of  the judgment. 
91st  paragraph,  p.  11-20 of  the judgment. 
93rd  paragraph,  p. 11-20 of  the judgment. 
Anguilla, Mayotte, Montserrat, Saint Helena, Turks and Caicos Islands, and Wallis 
and  Futuna  Islands. 

align  the  procedure  for  amending  Annex  II  on  that  provided  for  in  the 
Community  Customs  Code, which  came  into  force  on  1 January  1994. 

IL 

Amendments  arising from  the  review  of  Lomé IV 

As  the  Commission  indicated  in  December  1994,  although  the  full  outcome  of  the 
negotiations  was  not  then  known,  it  is  proposed  to  include  in  the  Association  Decision 
a  large number  of  amendments  that  parallel  those of Lomé  IV,  leaving  aside,  of  course, 
human rights  and structural  adjustment.  These amendments  concern: the development  of 
trade and  services, shipping, the Canaries, the Azores  and Madeira, terms  and  conditions 
of  financing,  and  EDF  implementation  procedures. 

DL 

Clarifications 

Some  provisions  in  the  1991  Decision  refer  the  reader  to  the  Lomé  Convention. 
Experience  has  shown  that  this  form  of  presentation  is  not  satisfactory  and  has  led  to 
failure  to  take  advantage  of Some of  the  instruments  available  to  the  OCT. 

It  is  therefore  proposed  to  insert  new  articles  taken  from  Lomé  IV,  amending  them  in 
accordance  with  the  outcome  of  the  negotiations,  concerning  the  following:  the  Centre 
for  the Development  of  Industry  (CDI),  the  Euro  Info  Correspondence  Centres  (EICC), 
health  and  decentralized  cooperation. 

IV. 

Innovations 

There  are a number  of  innovations  concerning  the rights  of  individuals  and  the status  of 
OCT  citizens. 

A. 

Right  of  establishment  and  provision  of  services 

Decision  91/482/EEC  governs  only  those  cases  where  individuals  and  companies  or 
enterprises  of  Member  States  wish  to  establish  themselves  in  a country  or  territory  and 
affirms  the  principle  of  non-discrimination  between  Member  States.  The  OCT  may, 
however, with the Commission's  authorization, derogate from  the normal rules to aid their 
inhabitants  or local activities  (Article  232(a)).  Furthermore, the OCT  authorities  are not 
bound  to  accord  non-discriminatory  treatment  "if  a  Member  State  is  not  bound  under 
Community  law, or  else national law, to accord non-discriminatory  treatment  for  a given 
activity  To  inhabitants  of  an  OCT  who  are  nationals  of  a  Member  States..." 
(Article  232(b)). 

These rules are the upshot of successive rounds of amendments every five years and leave 
much  room  for  uncertainty. 

It  is  proposed  to  stipulate  clearly  that  non-discriminatory  treatment  applies  both  ways 
(Article  232) and to allow the OCT to benefit  from  the commitments  entered  into by  the 
Community  under  the  MFN  clause  of  the  GATS  (Article  233a). 

B. 

Professional  qualifications 

In response to requests from  a number of OCT, it is proposed to initiate a process  leading 
ultimately 
in  the  OCT 
(Article  233b). 

to  recognition  in  the  Community  of  diplomas  obtained 

C. 

Eligibility  of  OCT  citizens  for  certain  Community  programmes 

As  was  noted  in the  Commission's  communication  of  December  1994, 

the  OCT  are not part of the  Community  territory  (subsequently  confirmed  by  the 
Court's judgment); 
but,  as  individuals,  OCT  citizens  have  the  nationality  of  the  Member  State 
concerned  (with  some  exceptions  in  the  case  of  the  British  OCT)  and  so  are 
citizens  of  the  European  union. 

It  is  therefore  proposed  to  give  OCT  citizens  access  to  22  Community  programmes 
designed  for  individuals,  Socrates  (which  is Erasmus  programme  extended  to  secondary 
schools)  being  the  most  telling  example.  This  would  allow  a student  from  Curaçao  or 
Noumea  to  enjoy  a  period  of  study  in,  say,  Belgium  or  Italy,  as  long  as  the  school  or 
college  belonged  to  a network  of  like  establishments  (Article  233c). 

V. 

Allocation  of  8th EDF funds  (Article  154a) 

In  accordance  with  what  was  decided  at  the  Cannes  European  Council  on  27  June,  the 
OCT  will  be  allocated,  for  the Decision's  second  period  of  application: 

ECU  165  million  under  the  8th EDF  (up  17.9% on  the  7th  EDF); 
ECU  35  million  in  EIB  own  resources  (up 40%). 

The EDF funds  must be divided up as provided for  in the Decision, Article  154 of which 
corresponds  to the Financial Protocol to the-Lomé Convention.  An Article  154a will  be 
added  to  serve  the  same  purpose  for  the  second  five-year  period. 

There  are  two  stages  to  the  breakdown  of  funds: 

1. 

Between: 

various  types  of non-programmable  aid  (risk  capital,  Sysmin,  Stabex,  emergency 
aid  and  reception  of  refugees,  interest-rate  subsidies,  etc.); 

programmable  aid  (8th  EDF  indicative  programmes,  local  and  regional). 

2. 

In turn, the programmable  aid must be divided  in three among the French,  Dutch 
and  British  OCT  (as  in  the  past,  it  will  be  up  to  the  authorities  of  the  three 
Member  States  concerned  to  decide  on  the  package  for  each  individual  country 
or  territory). 

The  thrust  of  the  Commission's  proposal  is  as  follows: 

keep  the  same  allocations  for  the various  non-programmable  instruments 
but  with  a slight  reduction  in  Stabex  so  as  to  boost  emergency  aid; 

a  small  reduction  in programmable  regional  funds; 

an  accordingly  greater  increase  for  the  local  indicative  programmes; 

A. 

Breakdown  between  headings 

Annex  1 gives  a breakdown  of  programmable  and  non-programmable  aid  under  the  6th 
and  7th  EDFs  together  with  that  proposed  for  the  8th EDF. 

The  proposal  for  the  8th  EDF  (which  naturally  proposes  the  same  amounts  as  the  draft 
Internal  Agreement  already  under  discussion  within  the  Council)  shows: 

B. 

1. 

what  would  be  the  result  of  a simple updating  (1st  column); 
what  is  proposed  following  the  above  guidelines  (2nd  column); 
the  resulting  22.1%)  increase  in  funding  for  local  indicative  programmes,  more 
than  the  total  increase  of  funds  for  the  new  EDF  compared  to  the  7th 
(3rd  column). 

Breakdown  among  the Member  States 

Annex  2 shows  how EDF  funds  were shared  out in  1986 (6th EDF)  and  in  1991 
(7th  EDF). 

The  share-out  of  these  funds  has  always  been  a  sticking  point  and  there  were 
hard-fought  negotiations  in  the  Council  between  the  three  Member  States 
concerned  to  divide  the  ECU  63  million  available  in  1986  and  ECU  86  million 
in  1991. 

In  the  past  the  programmable  funds  have been  divided  up  as  follows: 

an equal split between the French and Dutch OCT in  1964 (2nd EDF) and 
1970  (3rd  EDF); 

a three-way  split between the French, Dutch and British  OCT in  1976 (4th 
EDF) and  1980 (5th EDF) following the accession of the United  Kingdom. 

— 

By  1986 a number  of British  OCT had become independent  and gone over to  the 
ACP camp; the Council therefore  decided to reduce the British share, so  breaking 
with  the tradition  of  equal  shares.  The French  and  Dutch  OCT  remained  on  an 
equal  footing,  however. 

The  1991 Decision went further  down this road by introducing  economic  criteria, 
notably  the  population  factor. 

2. 

It is proposed  to place still more emphasis  on economic  considerations  this  time: 
this will be  done by updating the allocations  in line with  8th EDF funds  and  then 
weighting  them  by  on  the  basis  of  population  variations  in  the  period  1990-95, 
which  gives  the  following  results. 

7 

Group 

OCT  F 

OCTNL 

OCT  UK 

EDF  VII 

Updating 

Population 

Proposal  for  EDF 
VIII 

ECU  m 

40.2 

30.3 

15.5 

% 

46.7 

35.2 

18.1 

ECU  m 

% 

ECU  m 

ECU  m 

% 

49.0 

37.0 

19.0 

58.2 

31.6 

10.2 

61.1 

33.2 

10.7 

50.3 

35.5 

19.2 

47.9 

33.8 

18.3 

TOTAL 

86.0 

105.0 

(100) 

105.0 

105.0 

VI.  Least-developed OCT 

Article 230 of the 1991 Decision lists the least-developed OCT and Article 231 refers to 
the other articles  of the Decision where provision  is made for  them. 

A look at trends in per capita GNP of the OCT reveals that the economy of Saint-Pierre-
et-Miquelon has been on the slide in recent years, mainly because its principal activity, 
fishing,  has suffered  the effects  of conflict  with Canada over  fishing  zones  and rights. 
We propose adding this territorial collectivity to the list of OCT with similar per capita 
GNPs  in Article 230. 

VII.  Conversion of uncommitted special-loan funds into grants 

Some  ECU  6 million  of  the  funds  earmarked  for  special  loans  under  the  5th  and  6th 
EDFs  (OCT appropriation)  remained uncommitted at 30 June  1995.  It is proposed that 
the Council  take  the opportunity  offered  by  the mid-term  review  to convert  them  into 
grants, following  the example of the Cannes compromise on the ACP appropriation.  To 
this end an Article  154b would be added. 

Explanatory  memorandum  - Annex 1 

Sixth,  Seventh and eighth EDFs - OCT 
Breakdown of  appropriations 

(ECU  m) 

Page  Î  of  2 

EDF VII  1991-1995 

EDF VIII  1996-2000 

niTIIT-ITmnTTTTTTTl 111111111111H1111111111111111111111111111111111 i 11111111H111111H11111 • 1111H i 111111111 HT 11111111111 It. 

PROGRAMMABLE 
FUNDS 

EDF VI  1986-1990 
Decision 
86/283/EEC  of 
30 June  1986 

Commission 
proposal 
COM(91)  144 
final  of 
19.4.1991 

Adopted  by  the 
Council 
Decision 
91/482/EEC  of 
25.7.1991 

(%  VII/VI) 

Simple  updating 
(165/140  = 
x  1.17857) 

Adjusted 

(%VIII/VII) 

OCT  F 

OCTNL 

OCT UK 

Total indicative 
programmes 

Regional  cooperation 
including 
regional programmes  to 
develop  trade  and  services 

Total projects and 
programmes 

26.5 

26.5 

10.5 

63.5 

10.0 

73.5 

35.3 

35.3-

15.4  ' 

86.0 

11.5 

97.5 

40.2 

30.3 

15.5 

86.0 

(151.7) 

(114.3) 

(147.6) 

(135.4) 

47.4 

35.7 

18.3 

101.4 

50,3 

35,5 

19,2 

105.0 

(125,1) 

(117,2) 

(123,9) 

(122.1) 

11.5 

(115.0) 

13.5 

10.0 

(87.0) 

97.5 

(132.7) 

114.9 

115.0 

(117.9) 

NON-PROGRAMMABLE 
FUNDS 

EDF VI  1986-1990 
Decision 
86/283/EEC  of 
30 June'1986 

Risk capital 

STABEX 

SYSMIN 

Interest-rate  subsidies 

Emergency  aid 

Reception  refugees 

TOTAL 
APPROPRIATION 

EIB loans 

TOTAL OCT 

15.0 

5.0 

p.m. 

2.5 

3.0 

1.0 

100.0 

20.0 

120.0 

EDF VII  1991-1995 

EDF VIII  1996-2000 

Commission 
proposal 
COM(91)  144 
final  of 
19.4.1991 

Adopted by  the 
Council 
Decision 
91/482/EEC of 
25.7.1991 

(%  VII/VI) 

Simple updating 
(165/140  =  x 
1.17857) 

Adjusted 

(%VIII/VII) 

25.0 

6..0 

2.5 

6.0 

2.5 

..  0.5 

140.0 

25.0 

6.0 

2.5 

6.0 

2.5 

0.5 

(166.6) 

(120.0) 

(250.0) 

(240.0) 

(83.3) 

(50.0) 

29.5 

7.1 

2.9 

7.1 

2.9 

0.6 

30.0 

5.5 

2.5 

8.5 

3.0 

0.5 

140.0 

(140.0) 

165.0 

165.0 

(120.0) 

(91.7) 

(100.0) 

(141.7) 

(120.0) 

(100.0) 

(117.9) 

25.0 

25.0 

(125.0) 

35.0 

35.0 

(140.0) 

165.0 

165.0 

(137.5) 

200.0 

200.0 

(121.2) 

Page 2 of 2 

10 

Explanatory  memorandum  - Annex 2 

Sixth and  Seventh  EDFs  (OCT) -  Breakdown  of programmable  funds  (not regional) 

(ECU m) 

y 

11T •  T •  T1 •  T  T • •  1 *  11 •  11 • •  1 • •  111 • •  1 1 T 11 •  1 • •• 

' " • " "" 

" 

" " " "• 

EDF  VI 

EDF VII 

Group 

OCT F 

OCTNL 

OCT UK 

TOTAL 

Breakdown 

% 

26.5 

26.5 

10.5 

63.5 

41.7 

41.7 

16.5 

100.0 

Commission  proposal 
COM (91) 144 of 19.4.91 

Adopted  by the Council 
Decision 91/482/EEC 
of 25.7.1991 

Breakdown 

35.3 

35.3 

15.4 

86.0 

% 

41.0 

41.0 

18.0 

100.0 

Breakdown 

40.2 

30.3 

15.5 

86.0 

% 

46.7 

35.2 

18.1 

100.0 

11 

r-  Proposal  for  a 

Council  Decision 
of  ... 

amending  at mid-term  Council  Decision  91/482/EEC  of  25  July  1991 
on  the  association  of  the  overseas  countries  and  territories 
with  the European  Community 

12 

S U M M A RY 

ARTICLE  ONE 

A.  Throughout  this  Decision 

B.  Part  one  -  General  provisions  of  EC-OCT  cooperation 

C.  Part  two  -  The  areas  of  EC-OCT  cooperation 

D.  Part  three  -  The  instruments  of  EC-OCT  cooperation 

E.  Part  four  - Provisions  relating  to  establishment  and  services 

F.  Part  four  a -  Community  programmes  for  individuals 

G.  Part  five  -  Commission/Member  State/OCT  Partnership 

H.  Annex  II  concerning  the  definition  of  the  concept  of  originating 

products  and  methods  of  administrative  cooperation 

I.  Annex  II  a - Minimum  import  prices 

J.  Annex  V  on  rum 

ARTICLE  2  and  ARTICLE  3 

Annex  1 to  Annex  II  - note  8 

Annex  2 to  Annex  II  - List  of working  or  processing  required  to  be 
carried  out  on  non-originating  materials  in  order  that  the  product 
manufactured  can  obtain  originating  status 

Pages 

16 

16 

16 

16 

26 

37 

39 

40 

42 

45 

49 

49 

52 

54 

13 

Proposal  for  a 

Council  Decision 
of... 

amending  at mid-term  Council  Decision  91/482/EEC  of  25  July  1991 
on  the  association  of  the  overseas  countries  and  territories 
with  the  European  Community 

THE  COUNCIL  OF  THE  EUROPEAN  UNION, 

Having  regard  to  the  European  Community,  and  in particular  Article  136  thereof, 

Having  regard  to  the  Internal  Agreement  on  the  financing  and  administration  of 
Community  aid  in  the  framework  of  the  second  financial  protocol  to  the  fourth  Lomé" 
Convention,  signed  in  ... on  ..., 

Having  regard  to  the  proposal  from  the  Commission,1 

Having  regard  to  the  opinion  of  the European  Parliament,2 

Whereas  Article  240(3)  of  Council  Decision  91/482/EEC  of  25  July  1991  on  the 
association  of  the  overseas  countries  and  territories,  (hereinafter  referred  to  as  "the 
OCT"),  with  the  European  Community  lays  down  that,  before  the  end  of  the  first  five 
years,  the  Council,  acting  unanimously  on  a  proposal  from  the  Commission,  shall 
establish the Community's  financial  assistance for the second  five-year  period  opened by 
this  Decision  and  any  amendments  to  its  provisions;3 

Whereas  the  Council,  in  adopting  Decision  95/.;.  of  ...  on  the  transitional  measures 
applicable  from  1 March  1995 in the framework  of the Association  of the OCT with  the 
EC,4  took  the  necessary  steps  to  ensure  the° continuity  of  financial  assistance; 

Whereas The  financial  assistance  for  the  second  period  of  application  of  Decision 
91/482/EEC  has been  increased  to stand  at ECU  165 million under  the  eighth  European 
Development  Fund,  hereinafter  referred  to  as  "the Fund",  and  ECU  35  million  in  loans 
from  the own  resources  of the European  Investment Bank,  hereinafter  referred  to as  "the 
Bank";  whereas  this  assistance  may  be  maintained  at  unchanged  levels  in  respect  of 
non-programmable aid and increased  accordingly in respect of financing  for  development 
projects  and  programmes  implemented  under  the  indicative  programmes  of  the  OCT; 

OJ  C 
O JC 
O JL  263,  19.9.1991, p.  1. 
OJ  L  ...  (SEC  (95)  1177  final  of  19.7.1995). 

14 

Whereas, in accordance with Article  240(3) of Decision 91/482/EEC, the competent  OCT 
authorities  have  informed  the  Commission  of the  amendments  or  additions  they  desired 
through written memoranda  and at meetings  held  in the context  of  Commission/Member 
State/OCT partnership; whereas the Commission  then sent the Council  a  commuaication 
on  the  mid-term  review  of  the  association  of  the  OCT  with  the  EC  in  which  it 
recommended  various  amendments  to  the  Decision;5  whereas  these  amendments  take 
account,  as  far  as  is  possible,  of  the  desires  of  the  OCT,  the  experience  gained  by  the 
Commission  in  the  five  years  of  implementing  Decision  91/482/EEC,  the  steps  taken 
towards  building  the European  Union  since  1991  and  the mid-term  review  of  the  fourth 
ACP-EC  Convention; 

Whereas  by Decision 91/482/EEC the Council introduced  the possibility  of  consultations 
with the  local  OCT  authorities  through  the Commission/Member  State/OCT  partnership 
arrangements  and whereas  the memoranda  drawn up preparatory  to the mid-term  review 
of the Decision showed the local authorities' enthusiasm  for these arrangements;  whereas 
the  partnership  arrangements  should  therefore  be  strengthened  and  consultations  put  on 
a  regular  footing; 

Whereas  the  introduction  under  Decision  91/482/EEC  of  free  access  for  all  products 
originating in the OCT and the maintenance of cumulation for ACP and  OCT  originating 
products  has given rise to the risk of conflict  between two Community  policy  objectives, 
namely the development of the OCT and the common agricultural policy; whereas  serious 
disruption  on  the  Community  markets  for  certain  products  subject  to  a  common 
organization  of  the market  led  to  the  adoption  of  safeguard  measures  in  1993;  whereas 
the  Court  of  First  Instance  of  the  European  Community  ruled  in  its  judgment  of 
14  September  1995 that  decisions  in the  framework  of  the  association  "must  therefore 
serve to  strengthen  the association  of the OCT in order to  increase trade  and to  promote 
jointly  economic  and  social  development...without,  however,  hindering  the  adoption  of 
a  common  policy  in  the  sphere  of  agriculture..."; 

Whereas  measures  to  create  a propitious  framework  for  regular  trade  flows  that  is  also 
compatible with the common agricultural policy should be taken in order to prevent  fresh 
disruption;  whereas  these  objectives  may  be  achieved  by  more  detailed  and  fuller 
provisions on the rules of origin, in particular the exclusion of cumulation for  agricultural 
products  coupled  with  greater  flexibility  as  regards  derogations; 

Whereas  the mid-term  review of the fourth  Lomé Convention  has produced  a number  of 
improvements  designed  to  make  cooperation  more  coherent  and  effective,  to  promote 
local  initiatives  through  decentralized  cooperation,  to  place  a  new  emphasis  on  the 
development  of  trade  and  services  and  to  step  up  dialogue  in  the  context  of  the 
programming of EDF resources; whereas these improvements  would  also be  desirable  in 
cooperation  of  the  OCT  and  that  Decision  91/482/EEC  should  therefore  be  amended 
accordingly,  mutatis  mutandis; 

Whereas, lastly, Decision 91/482/EEC should be supplemented by a number of provisions 
aimed  at taking more account of the human dimension to the association of the OCT with 
the  Community;  whereas  this  can be  done by  making  citizens  of  the  OCT  eligible  for  a 
number of Community programmes open to citizens of the European Union; whereas  this 

COM(94  538  final  of  21.12.1994. 

15 

can  also  be  done  by  providing  for  the  recognition,  in  time,  of  diplomas  acquired  in  the 
OCT  in  respect  of  certain  professions, 

HAS  DECIDED  AS  FOLLOWS: 

Decision  91/482/EEC  shall  be  amended  as  follows: 

ARTICLE  ONE 

A.  THROUGHOUT  THIS  DECISION 

1.  The term  "European Economic Community shall be replaced by the term  "European 

Community",  and  the  abbreviation  "EEC" by  "EC". 

2.  The~term  "Council  of  the  European  Communities"  by  the  term  "Council  of  the 

European  Union". 

3.  The  term  "Delegate  shall  be  replaced  by  the term  "Head  of  Delegation" 

B.  PART  ONE 

GENERAL PROVISIONS  OF EC-OCT COOPERATION 

Article  2  (Article  4 of  Lomé  IV) 

4. 

In  Article  2, the  following  paragraph  shall  be  added: 

"In support  of the development  strategies  of the OCT, due account shall be taken  of 
both  the  objectives  and  priorities  of  the  Community's  cooperation  policy,  and  the 
OCT's  development  policies  and  priorities." 

Articles  7, 8 and 9  (Articles  20. 21 and 22 of  Lomé  IV) 

5.  The~chapter  heading  "Decentralized  cooperation  and  partnership"  shall  be  replaced 

by  the  heading  "Partnership" 

6.  Articles  7,  8 and  9 shall  be  deleted. 

C. PART  TWO 

THE AREAS  OF EC-OCT COOPERATION 

TITLE I 
ENVIRONMENT 

16 

Article  16 (Article  39 of  Lomé  IV) 

1. 

In  Article  16, the  following  paragraph  2a  shall  be  added: 

"2a.  Council  Regulation  (EEC)  No  259/93  of  1 February  1993  on  the  supervision  and 
control  of  shipments  of  waste  within,  into  and  out  of  the  European  Community  shall 
apply  to  imports  into  the  Community  of  hazardous  waste  from  the  OCT.6 

TITLE  V 

INDUSTRIAL  DEVELOPMENT,  MANUFACTURING  AND  PROCESSING 

Article  48  (Articles  87  to 98 of  Lomé  IV) 

8.  Article  48  shall  be  replaced  by  the. following 

"Article  48 

At  the  request  of  their  relevant  authorities,  the  OCT may  be  eligible  for  the  services  of 
the  Centre for  the Development  of Industry  referred  to in Articles  87 to  98 of the  fourth 
Lomé  Convention,  hereinafter  referred  to  as  "the  CDI",  the  objectives  and  activities  of 
which  are described  in  Chapter  1, or those of the Euro  Info  Correspondence  Centres  set 
up  under  the  Community's  business  promotion  policy,  the  objectives  and  activities  of 
which  are  described  in  Chapter  2. 

Any  costs  resulting  from  services  provided  by the CDI or the Euro  Info  Correspondence 
Centres  for  the  benefit  of  the  OCT  shall  be  financed  from  the  funds  provided  for  in 
Article  154 for  whichever  of  the three  groups  the  OCT  in  question  belong  to. 

9.  The  following  Chapter  1 shall  be  inserted: 

Chapter 1 

The  Centre  for  the Development  of  Industry 

_ 

"Article  48a (Article  89 of  Lomé  IV) 

10.  The  following  Article  48a  shall  be  inserted: 

"Article  48a 

1.  The  CDI  shall  help  to  establish  and  strengthen  industrial  enterprises  in  the  OCT, 
especially by  encouraging joint  initiatives by economic operators  of the  Community 
and  of  the  OCT.  The  CDI  shall  exercise  selectiveness  in  undertaking  its  tasks, 
laying  emphasis  on  opportunities  for joint  ventures  and  subcontracting. 

2.  The  CDI  shall: 

OJ  L  30,  6.2.1993,  page  1. 

17 

(a) 

with  a  view  to  ensuring  its  effectiveness,  focus  its  efforts  on  OCT  that 
have: 

(i) 

(ii) 

identified  support  for  industrial  development,  or  for  the  private 
sector in general, within the framework  of Article  187(3)(b) and (c) 
in  their  indicative  programmes;  and/or 

financial  contributions  and  assistance 

from  other 
obtained 
Community  institutions  for  the promotion  and  development  of  the 
private  and/or  the  industrial  sector; 

carry  out  its  activities  in  the  framework  of  the  implementation  of 
industrial-development or private-sector support projects  established by the 
OCT  referred  to  in  subparagraph  (a)  for  their  indicative  programmes; 

its  operational  presence 

step  up 
in 
subparagraph  (a), particularly  with  regard  to the identification  of  projects 
and  project  promoters  and  to  providing  assistance  for  the  presentation  of 
such  projects  to  the  financing  institutions; 

the  OCT 

referred 

in 

to 

give  priority  to  the  identification  of  operators  with  viable  small 
to 
medium-sized  industrial  projects  and,  in  the  case  of  those  meeting  the 
needs  of 
and 
implementation. 

their  promotion 

to  assisting 

the  OCT, 

them 

in 

(b) 

(c) ~ 

(d) 

3. 

The  Commission,  the  Bank,  and  the  CDI  shall  maintain  operational  cooperation  in 
the  context  of  their  respective  responsibilities.  To  this  end,  and  to  ensure  the 
consistency  of Community  operations  in support of the private  sector,  in general,  and 
the  industrial  sector,  in  particular,  in  the  OCT  referred  to  in  paragraph  2(a),  the 
Commission  shall,  in  consultation  with  the  Bank  and  in  liaison  with  the  CDI, 
prepare  support  programmes  for  these  sectors  that  incorporate  guidelines  for  the 
strategy  to  be  pursued." 

"Article  48b  (Article  90  of  Lomé 

IV) 

11.  The  following  Article  48b  shall  be  added: 

~~ 

"Article  48b 

1.  In  undertaking  the  tasks  referred  to  in  Article  48a  the  CDI  shall  operate  by  giving 
priority  to  viable  projects.  In  particular,  it  shall: 

(a) 

identify,  appraise,  evaluate,  promote  and  assist 
economically  viable  industrial  projects  of  the  OCT; 

in 

the 

implementation  of 

(b)  carry  out  studies  and  appraisals  aimed  at  identifying  practical  opportunities  for 
industrial  cooperation  with  the  Community  in  order  to  promote  the  industrial 
development of the OCT, and facilitating the implementation of appropriate schemes; 

(c)  supply  information  and  also  specific  advisory  services  and  expertise,  including 
feasibility  studies, with  a view to expediting the establishment  and/or  restoration  of 
industrial  enterprises; 

(d) 

identify  potential  partners  of  the  OCT  and  the  Community  for  joint  investment 
operations  and  assist  in  the  implementation  and  follow-up; 

(e) 

(f) 

identify  and  provide  information  on  possible  sources  of  financing,  assist  in  the 
presentation  for  financing  and, where necessary,  assist  in the mobilization  of  funds 
from  these  sources  for  industrial  projects  in the  OCT; 

identify,  collect,  evaluate  and  supply  information  and  advice  on  the  acquisition, 
adaptation  and  development  of appropriate  industrial  technology  relating to  specific 
projects  and,  where  appropriate,  assist  in  the  setting  up  of  experimental  or 
demonstration  schemes. 

2.  In  order  to  improve  the  attainment  of  its  objectives,  the  CDI,  in addition  to  its  main 
activities,  may  also  pursue  the  following: 

(a)  carry  out  studies,  market  research  and  evaluation  work  and  gather  and  disseminate 
all relevant information  on the industrial  cooperation situation and opportunities  and 
notably  on the  economic  environment,  the treatment  which  potential  investors  may 
expect  and  the  potential  of  viable  industrial  projects; 

(b)  help,  in  appropriate  cases, to promote  the marketing  of  OCT manufactures  on  their 
domestic markets and the markets of other OCT, the ACP States and the  Community 
in  order  to  encourage  optimum  exploitation  of  installed  or  projected  industrial 
capacity; 

(c) 

(d) 

identify  industrial  policy-makers,  promoters  and  economic  and  financial  operators 
in  the  Community  and  the  OCT,  and  organize  and  facilitate  contacts  and  meetings 
of  all  kinds  between  them; 

identify,  on  the  basis  of  needs  indicated  by  the  OCT,  opportunities  in  industrial 
training,  chiefly  on  the  job,  to  meet  the  requirements  of  existing  and  planned 
industrial  undertakings 
the 
implementation  of  appropriate  schemes; 

the  OCT  and,  where  necessary,  assists 

in 

in 

(e)  gather  and  disseminate  all  relevant  information  concerning  the  industrial  potential 
of  the  OCT  and  trends  of  industrial  sectors  in the  Community  and  the  OCT; 

(f)  promote  the  subcontracting  and  also  the  expansion  and  consolidation  of  regional 

industrial  projects. 

12.  The  following  Chapter  2 shall  be  inserted: 

"Chapter  2 

Euro  Info  Correspondence  Centres  (EICC) 

13.  The  following  Article  48c  shall  be  inserted: 

19 

"Article  48c 

In  respect  of  the  OCT  the tasks  of  the  EICC  shall  be to: 

disseminate  Community  information  to  OCT  firms; 

gather  and  transmit  to the  Euro  Info  Centres  (EIC)  information  from  the  OCT  that 
may  be  of  use  of  European  small  and  medium-sized  enterprises; 

answer general, legal, administrative and statistical questions  from  OCT  firms  about 
the  European  Union; 

answer  general, legal, administrative and statistical questions from  Community  firms 
about  the  OCT. 

the 
To  achieve  the  greatest  possible  reciprocity  in  the  exchange  of  information, 
Commission  shall  ensure  that  Community  firms  have  access  to  the  same  type  of 
information  and  the  same  advisory/support  services  in  relation  to  the  OCT  as  those 
offered  by  the  Community  to  OCT  firms. 

Only  one Correspondence  Centre shall  be set up per country  or territory  and  each  Centre 
may develop a subnetwork to suit its own needs and resources in order to ensure  as wide 
a  dissemination  of  information  and  services  as  possible." 

14.  The  following  Article  48d  shall  be  inserted: 

"Article  48d 

The tools  and  services  to be made  available  to or to be  acquired  by the  Correspondence 
Centres  for  the  proper  performance  of  its  work  are the  following: 

(a)  documentation:  a  list  of  documents  selected  for  basic  library  collection  (to  be 

acquired):  terms  and  cost  of  acquisition; 

(b)  a specific  software  programme  (to be acquired) for  creating  and managing  dossiers 
on  specific  issues  and  conducting  searches  on  previous  dossiers  and  existing 
document  and  data  bases; 

(c)  databases:  a list of  accessible  databases  (for  which there  is  a charge)  and terms  and 

cost  of  connection; 

(d) 

training:  "teach  yourself  courses  (to  be  acquired),  timetable  of  training  sessions 
(specific  Community  matters, working of the EICs), fee-paying  training  sessions  in 
database  use,  and  annual  conference  of  all  EICs  and  EICCs  (travel  and 
accommodation  expenses  to  be  borne  by  the EICC); 

(e)  access to information  officers  of the central administration  for replies to requests  for 

information  on  Community-related  matters; 

(f)  access  to  the  capitalization  database  via  the  VANS:  this  ElC-network  database 

contains  questions  and  answers  on  mainly  Community  matters; 

20 

(g)  electronic  mail:  the  EICCs  shall  have  access  to  the  electronic  mail  system,  in 

particular  the  EIC  network's  own  environment." 

15.  The  following  Article  48e  shall  be  inserted: 

"Article  48e 

1.  A request  for  the  establishment  of  a Correspondence  Centre  and  the  choice  of  host 
structure, should be addressed to the Commission by the competent authorities of the 
country  or  territory  through  the  channels  provided  for  in  Article  222. 

2.  An  agreement  providing  for,  inter  alia,  sufficient  human,  material  and  financial 

resources  shall  be  concluded  between  the EICC  and  the  Commission. 

3.  At  the  request  of  the  competent  authorities  and  in  accordance  with  the  procedures 
set  out  in  Part  Three,  Title  III  of  this  Decision,  partial  financing  may  be  made 
available  to the  EICC  host  structure  from  the grant  aid  available under  the  local  or 
regional  indicative  programme. 

4.  The following  criteria shall be used to select applicant  host structures  of the EICCs: 

experience in assisting and advising businesses  and a business-oriented  attitude 
to  small  and  medium-sized  enterprises; 

representativeness  in  respect  of  business  sector  in  the  applicant  country  or 
territory; 

knowledge  of  European  issues; 

the  will  and  the  ability  to  ensure  reciprocity  of  services  to  OCT  and 
Community  firms; 

the  potential  for  financial  independence; 

the willingness  to  employ  as staff  for  the Centre people with  a good  command 
of  English  or  French  and  experience  of  computers; 

provision  of  computer  and  communications  equipment  that  complies  with  the 
specifications; 

-  ,  an undertaking to serve all small and medium-sized  enterprises  equally  without 
discrimination  as  to  status  or  sector,  where  appropriate  in  liaison  with  other 
EICs  or  EICCs  on  the  network." 

TITLE  IX 

DEVELOPMENT  OF  SERVICES 

Chapter  4 
Transport,  communications  and  informatics 

21 

Article  79 (Article  129 of  Lomé  IV) 

16.  In  Article  79,  "1"  shall  be  inserted  at  the  beginning  of  the  sole  paragraph  and  the 

following  paragraphs  2  and  3  added: 

"2. With  a view  to  contributing  to the promotion  and  development  of  the OCT  maritime 
trade,  the  contracting  parties  may,  in  the  framework  of  the  implementation  of 
development  finance  cooperation,  give  special  attention  within  the  existing  instruments 
to  the  facilitation  and  encouragement  of  access  for  OCT  maritime  operators  to  the 
resources  provided  for  in  this  Convention,  in  particular  as  regards  projects  and 
programmes  for  improving  the  competitiveness  of  their  maritime  services. 

3.  The  Community  may  give  assistance  in  the  form  of  risk-capital  and/or  loans  by  the 
Bank  to  finance  projects  and  programmes  in the  sectors  set  out  in  this  article.". 

TITLE  X 

TRADE  DEVELOPMENT 

Article  84  (Article  135 of Lomé  IV) 

17.  Article  84  shall  be  replaced  by  the  following: 

"Article  84 

With  a  view  to  attaining  the  objectives  set  out  in  Article  100,  the  Community  shall 
implement  measures  for  the  development  of trade  at all stages up to  final  distribution  of 
the  product. 

The  object  is  to  ensure  that  the  ACP  States  derive  the  maximum  benefit  from  the 
provisions  of  this  Decision  and  may  participate  under  the most  favourable  conditions  in 
the Community, domestic, subregional, regional and international markets by  diversifying 
the  range  and  increasing  the  value  and  the  volume  of  the  OCT's  trade  in  goods  and 
services. 

To this  end the competent OCT and Community  authorities undertake to ensure that high 
priority  is given to trade development programmes  in the context of establishing  national 
and  regional  programmes  as provided  for  in Article  187 and other relevant provisions  of 
this  Convention.". 

Article  85  (Article  136 of  Lomé  IV) 

18.  In  Article  85, paragraphs  1 and  2 shall  be  replaced  by  the  following: 

"1.  In  addition  to  developing  trade  between  the  OCT  and  the  Community,  particular 
attention  shall  be  given  to  operations  designed  to  increase  the  OCT's  self-reliance  and 
improve  regional  cooperation  in trade  and  services. 

22 

2.  Within  the  instruments  provided  for  in  this  Convention  and  in  accordance  with  the 
provisions  set out  in relation  thereto, operations  shall  be undertaken  at the request of  the 
competent  OCT  authorities,  particularly  in  the  following  areas: 

support for the definition  of appropriate macroeconomic policies necessary  for  trade 
development; 

support  for  the  creation  or  reform  of  appropriate  legal  and  regulatory  frameworks 
as  well  as  for  the  reform  of  administrative  procedures; 

the  establishment  of  coherent  trade  strategies; 

support for the OCT in developing their internal capacities, information  systems  and 
awareness  of  the  role  and  importance  of  trade  in  economic  development. 

support for  strengthening  the infrastructure  related to trade and in particular  support 
for  the  OCT's  efforts  to  develop  and  improve  supportive  service  infrastructure, 
including  transport  and  storage  facilities, 
in  order  to  ensure  their  effective 
participation  in  the  distribution  of  goods  and  services  and  in  order  to  enhance  the 
flow  of  exports  from  the  OCT; 

development  of  human  resources  and  professional  skills  in  the  filed  of  trade  and 
services, in particular in the processing, marketing, distribution and transport  sectors 
for  the  Community,  regional  and  international  markets; 

support to private-sector  development  and, in particular,  to small  and  medium-sized 
enterprises  for  product  identification  and  development,  market  outlets  and  export-
oriented  joint-ventures; 

support for  OCT actions  aimed at encouraging and attracting private-investment  and 
joint-venture  operations; 

the establishment,  adaptation  and strengthening of organizations  in the OCT  dealing 
with  the  development  of  trade  and  services,  particular  attention  being  paid  to  the 
special  needs  of  organizations  in  the  least-developed  OCT; 

support for  the  OCT' s  efforts  to develop  and  improve the quality  of their  products, 
adapf them  to  market  requirements  and  diversify  their  outlets; 

support  for  the  OCT's  efforts  to  penetrate  third-country  markets  more  effectively; 

market  development  measures  including  increasing  contacts  and  exchanges  of 
information between economic operators in the OCT, ACP States, the Member States 
and  third  countries; 

support  for  OCT 
in 
production-oriented  sectors  and  programmes,  in  particular  in  areas  such  as  rural 
development  and  agriculture." 

the  application  of  modern  marketing 

techniques 

in 

23 

TITLE  XI 

CULTURAL AND  SOCIAL  COOPERATION 

19.  The Title  "Cultural  and social cooperation" shall be replaced  by  "Cultural  and  social 

cooperation  and  combating  drug  abuse". 

Article  88  (Articles  139 and  140 of  Lomé  IV) 

20.  In  the  last  line  of  Article  88  the  words  "and  nutrition"  shall  be  replaced  by  "and 

combating  drug  abuse". 

Article  88a (Article  154 of  Lomé  IV) 

21.  The  following  Article  88a  shall  be  inserted: 

"Article  88a 

1.  The  Community  recognizes  the  importance  of  the  health  sector  in  ensuring  the 
sustainable  and  self-reliant  development  of the OCT. The  aim  of  cooperation  shall be to 
facilitate  the right of access of the greatest number of people to adequate health care, thus 
promoting  equity  and  social justice,  alleviating  suffering,  reducing  the  economic  burden 
of  disease  and  mortality,  and  promoting  the  effective  participation  of  the  community  in 
operations  to  improve  health  and  well-being. 

The  attainment  of  these  aims  calls  for: 

a systematic, long-term approach to the improvement and strengthening of the health 
sector, 
the  definition  of  comprehensive  national  health  guidelines  and  programmes, 
improved  management  and use of existing human, financial  and physical  resources. 

2.  To this  end, cooperation  in this  sector shall seek to support functional  and  sustainable 
health  services  which  are  financially  affordable,  culturally  acceptable,  geographically 
accessible  and  technically  competent.  It shall  seek to promote  an  integrated  approach  to 
the creation of health services based on the extension of preventive care, the  improvement 
of  curative care and  complementarity  between  hospital-based  and  basic-level  services,in 
accordance  with  primary  health  care policy. 

3.  Cooperation  in the  health  sector  may  provide  support  for: 

the  improvement  and  extension  of  basic  health  services  and  also  the  strengthening 
of  hospitals  and  maintenance  of  equipment,  acknowledged  as  essential  for  the 
smooth  operation  of  the  health  system  as  a whole, 
health-sector  planning  and  management,  including  the  strengthening  of  statistical 
services, and the formulation  of health-financing  strategies  at territorial, regional and 
district levels, this last level being the focal  point for  coordination of basic  services, 
provision  of  specialist  services  and  implementation  of  programmes  to  stamp  out 
widespread  diseases, 
schemes  to  integrate  traditional  medicine  in  modern  health  care, 

24 

essential  drug programmes  and strategies, including local  production units  for  basic 
drugs  and consumables, taking account of traditional pharmacy, in particular the use 
of  medicinal  plants, which  is  something  that  should  be  studied  and  developed, 
training of staff  in the context of an overall programme, from  public health planners, 
administrators,  management  staff  and  specialists,  down to the personnel  working  in 
the field, this training being tailored to the actual responsibilities borne at each level, 
support for  training  and  information  programmes  and campaigns  aimed  at  stamping 
out  endemic  dis eases, improving  environmental  hygiene,  combating  the  use  of 
narcotic  drugs,  the  spread  of  transmitted  diseases  and  other  health  scourges  in  the 
framework  of  integrated  health  systems, 
the building  up  of  research  institutes, university  departments  and  specialist  schools 
in  the  OCT,  notably  in  the field of  public  health.". 

TITLE  XII 

REGIONAL COOPERATION 

Article  90  (Article  156 of Lomé  IV) 

22.  In  Article  90,  the  second  subparagraph  of  paragraph  4  shall  be  replaced  by  the 

following: 

"It shall  include regional  cooperation  between  OCT, ACP  States, overseas  departments, 
the Canary Islands, the Azores  and Madeira, in accordance with Article 98.  The  funding 
to  cover  the  participation  of  ACP  States,  overseas  departments,  the  Canary  Islands,  the 
Azores  and  Madeira  shall  be  additional  to  the  funds  allocated  to  the  OCT  under  this 
Decision." 

A rticle 91  (A rticle  157 of  Lomé  IV) 

23.  In  Article  91(1), the third  indent  shall  be replaced  by  the  following: 

"- 

one  or  more  of  the  OCT  and  one  or  more  ACP  States,  overseas  departments,  the 
Canary  Islands, the  Azores  or  Madeira,". 

Article  92  (Article  158 of  Lomé  IV) 

24.  In  Article  92, paragraph  1(d) shall  be  replaced  by  the  following: 

"(d)  acceleration  of  economic  diversification  in  order  to  stimulate  complementarity  in 
production  and  intensification  of  cooperation  and  development  within  and  between 
OCT regions, and between these regions  and ACP  States, overseas  departments,  the 
Canary  Islands,  the  Azores  and  Madeira;". 

25.  In  Article  92,  paragraph  1(h)  shall  be  replaced  by  the  following: 

"(h)  expansion of the OCT's markets by promoting trade among OCT and between  OCT, 
ACP  States,  neighbouring  third  countries  and  overseas  departments,  the  Canary 
Islands,  the  Azores  and  Madeira;" 

25 

D.  PART THREE 

THE INSTRUMENTS  OF EC-OCT COOPERATION 

TITLE  I 

TRADE  COOPERATION 

Chapter 1 
General  trade  arrangements 

A rticle  101 (A rticle  168 of Lomé  IV) 

26.  In  Article  101: 

paragraph  1 is  replaced  by  the  following: 

"Without prejudice  to the provisions  of Annex  lia, products  originating  in the OCT shall 
be  imported  into  the  Community  free  of  import  duty.". 

the  first  indent  of  paragraph  3 shall  be replaced  by  the  following: 

"- 

agricultural  products  listed  in  Annex  II to  the  Treaty  nor  to  products  covered 
by Council Regulation  (EC) No  3448/93 of 6 December  1993 laying  down  the 
trade arrangements  applicable to certain goods resulting from  the processing of 
agricultural  products,7" 

paragraphs  4  and  5 shall  be  deleted. 

Article  108 (Article  176 of  Lomé  IV) 

27.  In  Article  108: 

paragraph  2  shall  be  replaced  by the  following: 

"2.  Any  amendments  to Annexes  II and III shall  be adopted  by the  procedure  laid  down 
in Article~249 of Council Regulation (EEC) No  2913/92 of  12 October  1992  establishing 
the  Community  Customs  Code."8 

paragraph  3  shall  be  deleted. 

28.  Chapter  2  shall  be  deleted. 

O J L 3 1 8,  20.12.1993, p.  18. 
O JL  302,  10.10.1992,  p.  1. 

26 

TITLE  II 

COOPERATION  IN THE FILED  OF COMMODITIES 

Chapter  1 

Stabilization  of  export  earnings  from  agricultural  commodities  (Stabex) 

Article  115 (Article  187 of  Lomé  IV) 

29.  In  Article  115,  item  24  of  paragraph  1 shall  be  replaced  by  the  following: 

"24.  Fresh  bananas 

0803  00  11 and  19" 

The  following  item  50  shall  be  added: 

"50.  .Karakul  skins  ex  4301  30  00 
ex  4302  13 00 
ex 4302  30 31". 

Article  121 (Article  194 of  Lomé  IV) 

30.  In  Article  121, the  following  paragraph  5 shall be  added: 

"5. Other than the reduction referred  to in paragraph 2, there shall be no further  reduction 
as  a  result  of  a  shortfall  in  the  resources  of  the  system  if,  in  the  case  of  the 
least-developed  OCT, the  transfer  basis  reduced  in  accordance  with  paragraph  2  is  less 
than  ECU  1 million.". 

Article  129 (Article  203 of  Lomé  IV) 

31.  Article  129 shall  be  replaced  by  the  following: 

"Article  129 

1.  Should  examination  of: 

(a)  marketed production in the application year by comparison with the reference  period; 

or 

(b) 

total  exports  as  a share  of  marketed  production  over  the  same  period;  or 

(c) 

the  share  of  total  exports  going  to  the  Community  over  the  same  period;  or 

(d) 

the  sum  of  the  figures  referred  to  in  (b)  and  (c) 

reveal  a  large  decline,  consultations  shall  be  held  between  the  Commission  and  the 
competent  authorities  of  the  country  or territory  to  determine whether  the transfer  basis 
is  to  be  maintained  or  reduced,  and  if  reduced,  to what  extent. 

27 

2. For the purpose  of  applying paragraph  1, a decline shall  be deemed  to be  large if  it is 
at  least 20%." 

TITLE  III 

DEVELOPMENT  FINANCE  COOPERATION 

Chapter 1 

General  provisions 

Section  4 
Scope  of  financing 

Article  147 (Article  224 of  Lomé  IV) 

32.  In  Article  147, subparagraph  (g)  shall  be replaced  by  the  following: 

"(g)  the  human  and  material  resources,  supplementary  to  those  borne  by  the  OCT 
strictly  necessary  for  efficient  and  effective  administration  of  and  supervision 
of  projects  and  programmes  financed  by  the  European  Development  Fund, 
hereinafter  referred  to  as  "the  Fund;". 

Section  6 
Eligibility  for  financing 

Article  153 (Article  230 of  Lomé  IV) 

33.  In  Article  153, subparagraph  2(g)  shall  be replaced  by  the  following: 

"(g)  decentralized  agents  from  OCT  and  from  the  Community,  to  enable  them  to 
undertake economic, cultural, social and educational projects  and programmes  in the 
OCT  in  the  framework  of  decentralized  cooperation." 

Chapter  2 
Financial  cooperation 

Section  1 
Financial  resources 

Article  154a (second financial  protocol  to Lomé  IV) 

34.  The  following  Article  154a shall  be  inserted: 

"Article  154a 

1.  For  the  purposes  set  out  in  Chapter  1 of  this  Title,  and  for  a  period  of  five  years 
commencing  on  1  March  1995,  the  overall  amount  of  the  Community's  financial 
assistance  shall  be  ECU  200  million. 

28 

This  amount  shall  comprise: 

(a)  ECU  165 million  from  the Fund,  allocated  as  follows: 

(i) 

for the purposes set out in Articles  143, 144 and  147, ECU  126,5 million  in the  form 
of  grants; 

(ii)  for  the  purposes  set  out  in  Articles  143,  144 and  147, ECU  30  million  in the  form 

of  risk  capital; 

(iii)  for  the  purposes  set  out  in  Articles  114  to  136,  ECU  5.5  million  in  the  form  of 

transfers  from  the  Stabex  facility  for  the  stabilization  of  export  earnings; 

(iv)  for  the  purposes  set  out  in  Articles  137  to  142,  ECU  2,5  million  in  the  form  of 

grants  from  the  Sysmin  facility; 

(b)  for the purposes set out in Articles  143, 144 and  147, not more than ECU  35  million 
from  the Bank in the form  of loans from  own resources in accordance with the terms 
and-conditions  provided  for  by  its  statute.  These  loans  shall  be  subject  to  the 
provisions  of  Article  157 on  interest  rate  subsidies. 

2.  The  Bank  shall  administer  loans  from  its  own  resources,  including  interest-rate 
subsidies, and risk capital. All other financial resources provided for in this Decision shall 
be  administered  by  the  Commission. 

3.  The  amount  referred  to  in  paragraph  1 (a)  (i)  shall  be  allocated  as  follows: 

(a)  ECU  105 million to finance  projects  and programmes, which shall  be broken  down 

as  follows: 
(i)  United  Kingdom  OCT 
(ii)  French  OCT 
(iii)  Dutch  OCT 

ECU  19.2  million; 
ECU  50.3  million; 
ECU  35.5  million; 

(b)  ECU  10 million to finance  regional projects  and programmes  in the OCT,  including 
regional  programmes  to  develop  trade  and  services  under  Article  85  and  the 
partnership  arrangements  referred  to  in Articles  234  and  235; 

(c)  ECU  8.5  million  to  finance  the  interest  rate subsidies  referred  to  in  Article  157; 

(d)  a special  allocation  of  ECU  3.5  million,  of  which: 

(i)  ECU  3 million  for  emergency  aid  as  provided  for  in  Article  164, and 

(ii)  ECU  0.5  million  to  aid  refugees,  returnees  and  displaced  persons  as  provided 

for  in  Article  165; 

(iii)  should  the  appropriations  provided  for  under  one  of  the  Articles  referred  to 
above be  exhausted  before  the expiry  of this  Decision,  transfers  may  be  made 
from  the  appropriations  provided  for  in the  other  Article; 

(iv)  on  the  expiry  of  this  Decision,  appropriations  not  committed  for  emergency 
assistance or aid for refugees,  returnees and displaced persons  shall be returned 
to  the  Fund  for  the  purpose  of  financing  other  operations  coming  within  the 

29 

scope  of  development  finance  cooperation,  unless  the  Council,  by  a  qualified 
majority,  decides  otherwise; 

(v) '  should  all  the  special  appropriations  be  exhausted  before  the  expiry  of  this 
Decision,  the  Council  shall  adopt  by  a qualified  majority,  on  a proposal  from 
the Commission,  appropriate measures to deal with the situations  referred  to in 
Articles  164 and  165. 

Section  2 
Terms  and  conditions  of  financing 

Article  155 (Article  233 of  Lomé  IV) 

35.  In  Article  155, paragraph  4  shall  be  replaced  by  the  following: 

"4.  Where  financial  assistance  is  granted  to  the  final  recipient  through  an  intermediary 
or  directly  to  the  final  beneficiary  in the  private  sector: 

(a) 

the  terms  on which  the  assistance  may  be made  available  by  the  intermediary 
to  the  final  recipient  or  directly  to  the  final  beneficiary  in  the  private  sector 
shall  be  laid  down  in the  financing  agreement  or  loan  contract;  and 

(b)  any  financial  benefit  accruing  to  the  intermediary  from 

the  on-lending 
transaction,  or  resulting  from  direct  lending  operation  to  the  final  beneficiary 
in the private sector, shall be used for development purposes, on the  conditions 
laid  down  in  the  financing  agreement  or  the  loan  contract,  after  taking  into 
account  administrative  costs,  exchange  and  financial  risks,  and  the  cost  of 
technical  assistance  given  to  the  final  recipient." 

Article  155a 

36.  The  following  Article  155a  shall  be  inserted: 

"Article  155a 

Any funds~remaining  from those earmarked for special loans under the 5th and 6th Funds, 
whether  for  a country  or territory  or region, which have not been  committed  by  the  date 
of this Decision, plus  any funds  decommitted following  closures, shall be used for grants. 

The  Chief  Authorizing  Officer  of  the Fund  shall  implement  this  conversion. 

Article  156  (Article  234 of  Lomé  IV) 

37.  In  Article  156: 

the  introductory  words  of  paragraph  1 shall  be  replaced  by  the  following: 

" 1.  Risk capital may be deployed in the form  of loan, equity participation or other quasi-

capital  assistance." 

30 

the  following  subparagraph  l(b)a  shall  be  inserted: 

"(b)a  Quasi-capital  assistance  may  consist  of  shareholders'  advances,  convertible 
bonds, loans with participating rights or any other similar form  of assistance." 

subparagraph  1(c) shall  be  replaced  by  the  following: 

"(c)  The  terms  of  risk  capital  operations  shall  depend  on  the  characteristics  of 
each project  or programme  financed  and  shall  in general  be  more  favourable 
than  those  of  subsidized  loans. 
In  the  case  of  loans  to  the  OCT  or  to 
intermediaries  the  interest  rate  shall,  in  any  case,  be  less  than  3  %." 

the  following  subparagraphs  1(d)  and  1(e) shall  be  added: 

"(d)  Risk  capital  resources  may be used  in support  of  pre-investment  studies  and 
technical  assistance,  as  provided  for  in  Article  175(g).  In  such  cases,  the 
loans  shall  be  repaid  only  if the  investment  is  carried  out. 

- 

(e) 

Equity  participation or other quasi-capital  assistance shall be remunerated  on 
the  basis  of  the  performance  of  the  project  or  programme  considered  and 
profits  generated  shall  be  shared  between  the  Community  and  the  parties 
engaged  in the  said  project  or  programme." 

subparagraph  2(b)  shall  be replaced  by  the  following: 

"(b) 

in the  case of  risk  capital  financing  for  small  and  medium-sized  enterprises, 
hereinafter  referred  to as "SME", the exchange-rate risk shall be shared by the 
Community,  on the one part,  and by the  other parties  involved,  on  the  other. 
On  average,  the  foreign  exchange  risk  shall  be  shared  equally.". 

Article  157 (Article  235  of  Lomé  IV) 

38.  In  Article  157, the  following  subparagraph  (b)a  shall  be  inserted: 

"(b)a  in  the  case  of  direct  financing  of  the  private  sector  for  strictly  commercial 
projects, the rate of subsidy referred  to in subparagraph  (b) shall  not  apply.". 

Article  158 (Article  236 of  Lomé  IV) 

In  Article  158, subparagraph  (a)  shall  be replaced  by  the  following: 

"(a) 

contribute,  through  the resources  it manages,  to  the  economic  and  industrial 
development  of  the  OCT  on  a  national  and  regional  scale;  and  to  this  end, 
finance  as  a  priority,  productive  projects  and  programmes,  or  other 
investments  aimed  at promoting the private sector,  in industry,  agro-industry, 
tourism,  mining,  energy -and  in  transport  and  telecommunications  linked  to 
these sectors.  These sectoral priorities  shall not exclude the possibility  of the 
Bank's financing, from  its own resources, productive projects  and programmes 
in  other  sectors,  including  commercial  agriculture;". 

31 

Articles  161a to  161b (Articles  251a to  25 le  of  Lomé  IV) 

40.  In  Chapter  2 of  Title  III, the  following  Section  3a  shall  be  inserted: 

"Section  3a 
Decentralized  cooperation 

"Article  161a 

1. With  a view to strengthening  and diversifying  the basis for the long term  development 
of  the  OCT,  and  in  order  to  encourage  all  agents  from  the  OCT  and  the  Community 
which  are  in  a position  to  contribute  to the  autonomous  development  of  the  OCT  to  put 
forward  and implement  initiatives, EC-OCT  cooperation  shall support, within  limits  laid 
down by the country or territory concerned, development operations within the  framework 
of  decentralized  cooperation,  in particular  where they  combine the  efforts  and  resources 
of  organizations  from  the  OCT  and  their  counterparts  from  the  Community.  This  form 
of  cooperation  shall,  in  particular,  aim  at  making  available  for  the  development  of  the 
OCT,  the  capabilities,  innovative  operating  methods  and  resources  of  the  agents  of 
decentralized  cooperation. 

2.  The  agents  referred  to  in  this  Article  are  decentralized  public  authorities,  rural  and 
village  groups,  cooperatives,  trade  unions,  teaching  and  research  institutions,  non 
governmental  development organizations, other associations, groups and agents which are 
able  and  wish  to  contribute, to  the  development  of  the  OCT  on  their  own  initiative, 
provided  that  these  agents  and/or  operations  are  non-profit-making. 

Article  161b 

1. In  the  framework  of EC-OCT  cooperation  special  efforts  shall  be made to  encourage 
and  support  the  initiatives  of  OCT  agents  and,  in particular,  to reinforce  the  capabilities 
of these OCT  agents.  In this framework,  cooperation  shall support the activities  of  OCT 
agents,  either  on  their  own  or  in  association  with  similar  agents  from  the  Community, 
which  make their  capabilities,  experience, technological  and organizational  capacities  or 
financialTësources  available  to  their  OCT  counterparts. 

2.  The  cooperation  shall  encourage  agents  from  the  OCT  and  from  the  Community  to 
provide  supplementary  financial  and  technical  resources  for  the  development  effort 
including  encouragement  of  partnerships  between  such  agents.  The  cooperation  may 
provide decentralized cooperation operations with financial and/or technical support drawn 
from  the resources of this Decision under the conditions laid down in Articles  161c,  161d 
and  161e. 

3.  This  form  of  cooperation  shall  be  organized  in  accordance  with  the  role  and  the 
prerogative  of  the  public  authorities  of  the  OCT. 

Article  161c 

32 

1. Decentralized  cooperation operations may be supported through the financial  resources 
of the indicative programme or counterpart  funds.  The extent of the support shall be that 
which is necessary for the successful  implementation of the proposed operations  provided 
that  the viability  of the proposed  operations  has  been  established  in  accordance with  the 
provisions  for  development  finance  cooperation. 

2.  Projects  or  programmes  under  this  form  of  cooperation  may  or  may  not  be  linked  to 
programmes  in the  sectors  of  concentration  of the  indicative  programmes,  but  may  be  a 
way  of  achieving  the  specific  objectives  of  the  indicative  programme  or  the  results  of 
initiatives  by  decentralized  agents. 

Article  161d 

1.  Projects  and  programmes  undertaken  within  the  framework  of  decentralized 
cooperation  shall  be  subject  to  the  approval  of  the  competent  authorities  of  the  country 
or  territory  concerned.  These  operations  shall  be  financed  with  contributions  from: 

(a) 

the Fund,  in which  case the contribution  shall not normally  exceed  three-quarters  of 
the  total  cost  of  each  project,  or  programme,  and  may  not  exceed  ECU  300.000. 
The  amount  representing  the  Fund's  contribution  shall  be  drawn  from  the  grant 
allocation  of  the  national  or  regional  indicative  programme; 

(b) 

the  agents  of  decentralized  cooperation,  provided  that  the  financial,  technical, 
material  and  other resources  brought  in by such agents  is not,  as a general  rule,  less 
than  25 percent  of  the  estimated  cost  of  the  project/programme;  and 

(c)  exceptionally,  by  the  competent  authorities  of  the  country  or  territory  concerned, 
either  in  the  form  of financial  contribution  or  through  the  use  of  public  equipment 
or  the  supply  of  services. 

2. The procedures  applicable to projects  and programmes financed within the  framework 
of  decentralized  cooperation  shall  be  those  laid  down  in  the  development  finance 
cooperation  chapter,  in  particular,  those  referred  to  in  Article  196. 

Article  161e 

1. In addition to the possibilities offered  to the agents of decentralized  cooperation  in this 
section,  in" Articles  162  and  163  relating  to  microprojects  and  in  Article  184(2)(c)  on 
technical  cooperation  schemes  and  Article  206  on  emergency  assistance,  the  competent 
authorities  may  request  or  may  agree  to  the  participation  of  agents  of  decentralized 
cooperation  in the implementation  of other Fund projects  and programmes,  in  particular, 
those  performed  by  direct  labour,  in  conformity  with  Article  205  and  other  relevant 
provisions  of  the  Decision." 

Chapter 5 
Implementation  procedures 

Section  1 
Programming 

33 

Article  187 (Article  281 of  Lomé  IV) 

41. 

In  Article  187: 

the  introductory  words  of  paragraph  1 "At  the beginning  of  the  period  covered 
by  this  Decision"  shall  be  replaced  by: 

"1. 

At  the  beginning  of  the  second  5-year  period  covered  by  the  Decision..". 

paragraph  3 shall  be  replaced  by  the  following: 

"3. 

As  soon  as  each  country  and  territory  has  been  notified  of  the  total  amount 
available  to  it,  the  competent  authorities  shall  draw  up  and  submit  to  the 
Community  a draft  indicative  programme  on the  basis  of  and  consistent  with  its 
development  objectives  and  priorities.  The  draft  indicative  programme  shall 
contain: 

(a) 

(b) 

(c) 

(d) 

the  priority  development  objectives  of  the  country  or  territory  concerned 
at  local  and  regional  levels; 

the focal  sector  or  sectors  on which  support  should  be  concentrated,  with 
emphasis  on  poverty  alleviation  and  sustainable  development,  and  the 
resources  to  be  deployed  for  that  purpose; 

the most  appropriate  measures  and  operations  for  attaining  the  objectives 
in  the  focal  sector  or  sectors; 

wherever possible, specific and clearly identified  projects  and programmes, 
and  especially  those which constitute  a follow-up  to existing projects  and 
programmes; 

(f) 

any  proposals  for  regional  projects  and  programmes; 

(g) 

(h) 

a timetable for  the implementation  of the indicative programme,  including 
commitments  and  disbursements; 

the  reserve  set  aside  for  insurance  against  possible  claims,  and  to  cover 
cost  increases  and  contingencies.". 

Article  188 (Article  282  of  Lomé  IV) 

42. 

Article  188  shall  be  replaced  by  the  following: 

"Article  282 

1. The  draft  indicative  programme  shall be the subject  of  an exchange of views  between 
the  relevant  authorities  of  the  country  or  territory  concerned  and  the  Community,  due 
regard being given to the local needs of the country or territory; the indicative programme 
shall  then  be  adopted  by  agreement between  the Community  and the relevant  authorities 

34 

of  the  country  or  territory  concerned  on  the  basis  of  the  draft  indicative  programme 
proposed  by  those  authorities. 

2.  The  indicative programme  shall  specify  all the elements  referred  to in Article  187(3) 
and,  where  the  country  or  territory  has  a  sufficiently  large  indicative  amount,  shall 
allocate  70% of  the  indicative  amount. 

3.  The  indicative  programme  shall  be  sufficiently  flexible  to  ensure  that  operations  are 
kept  constantly  in line with  the objectives  and  to take  account  of  any  changes  occurring 
in the economic  situation,  priorities  and  objectives  of the country  or territory  concerned. 
It  may  be  revised  at the  request  of  the  country  or  territory. 

In the  case  of  OCT  referred  to  in paragraph  2, it shall  be reviewed  when  the  country  or 
territory  concerned  has  achieved  a high  level  of  commitments  in  the  implementation  of 
the  programme  and,  in  any  case,  not  later  than  three  years  after  the  entry  into  force  of 
the  second  five  years  of  application  of  this  Decision. 

4.  At  the  end  of  the  review  referred  to  in  the  second  subparagraph  of  paragraph  3,  the 
resources  required  for  completing  the  implementation  of  the  indicative  programme  may 
be  allocated  giving  due  consideration  to : 

(a) 

the  indicative  allocation; 

(b) 

(c) 

(d) 

progress  made  in the  implementation  of  the  elements  of the programme  referred 
to in Article  187(3) and the agreed timetable of commitments  and  disbursements, 
in  the  light  of  the  annual  reports  of  the  head  of  delegation  and  of  the  Local 
Authorizing  Officer  referred  to  in  Article  190(3); 

the  state  of preparation  of  the  activities  the  competent  authorities  of  the  country 
or  territory  concerned  intend  to  undertake  within  the  framework  of  the  second 
phase  of  the  indicative  programme;  and 

the  specific  situation  of  the  country  or  territory  concerned. 

5.  Following  the  review  referred  to  in  paragraphs  3  and  4  above  and,  in  any  case,  not 
later  than  the  end  of  the  period  laid  down  in  Article  154,  any  unallocated  resources 
remainingTrom the programmable resources shall be used for financing operations  falling 
within  the  scope  of  development  finance  cooperation,  notably  those  relating  to 
programmable  assistance. 

Article  189 (Article  283 of  Lomé  IV) 

43. 

Article  189 shall  be  replaced  by  the  following: 

"Article  189 

The  Community  and  the  competent  authorities  of  the  OCT  shall  take  all  necessary 
measures  to  ensure that  indicative programmes  are adopted  in the shortest  possible  time 
and,  save  in  exceptional  circumstances,  within  one  year  of  the  entry  into  force  of  the 
amended  version  of  this  Decision.". 

35 

Section  2 
Identification,  preparation  and  appraisal  of  projects 

Article  193 (Article  287 of Lomé  IV) 

44. 

In  Article  193, the  following  subparagraph  (2)(i)  shall  be  added: 

"(i) 

the  compatibility  with  the  OCT's  trade  policies  and  trade  development 
programmes  and  the  impact  on  their  competitiveness  in  the  domestic, 
regional,  international  and  Community  markets.". 

Section  3: Financing  proposals  and  decisions 

Article  196 (Article  290 of  Lomé  IV) 

45. 

Article  196  shall  be  replaced  by  the  following: 

"Article  196 

1. With  a view to expediting  procedures  and in derogation from  the provisions  set out in 
Articles  194 and  195, financing  decisions  may deal with multiannual  programmes  where 
financing  concerns: 

(a) 
(b) 
(c) 
(d) 
(e) 
(f) 
(g) 
(h) 
(i) 

training; 
decentralized  operations; 
microprojects; 
trade  promotion  and  trade  development; 
sets  of  operations  of  a limited  scale  in  a specific  sector; 
project/programme  management  support; 
technical  cooperation; 
use  of  the  services  of  the  CDI  or the  establishment  of  an  EICC; 
the 
arrangements. 

implementation  of  Commission/Member  State/OCT  partnership 

2. 

Irfcases  referred  to  in  paragraph  1,  the  competent  authorities  of  the  OCT 
concerned  may submit to the head of delegation  a multiannual programme  setting 
out  the  broad  outlines,  the  types  of  actions  envisaged  and  the  financial 
commitment  proposed: 

(a) 

The  financing  decision  on each multiannual  programme  shall  be taken  by 
the  Chief  Authorizing  Officer.  The  letter  from  the  Chief  Authorizing 
Officer  to  the  Local  Authorizing  Officer  notifying  such  a  decision  shall 
constitute  the  financing  agreement  within  the  meaning  of  Article  197; 

(b)  Within the framework  of multi-annual programmes thus adopted, the OCT 
Authorizing  Officer  or,  when  the  case  arises,  the  agent  of  decentralized 
cooperation  which  has  been  delegated  functions  for  this  purpose  or,  in 
appropriate  cases,  other  eligible  beneficiaries  shall  implement  each 

36 

individual  action  in  accordance  with  the  relevant  provisions  of  this 
Decision  and  the  terms  of  the  financing  agreement  referred 
to  in 
subparagraph  (a).  Where  the  implementation  is  to  be  carried  out  by 
decentralized  agents  or  other  eligible beneficiaries,  the Local  Authorizing 
Officer  and  the Head of Delegation  shall  maintain  financial  responsibility 
and  monitor  the  operations  regularly  with  a  view  to  enabling  them,  inter 
alia,  to  carry  out  their  obligations  under  paragraph  3. 

3.  At  the  end  of  each  year,  the Local  Authorizing  Officer  in  consultation  with  the  Head 
of  Delegation,  shall  forward  a  report  to  the  Commission  on  the  implementation  of  the 
programmes. 

TITLE  IV 

GENERAL PROVISIONS  FOR THE LEAST-DEVELOPED  OCT 

Article  230  (Article  330 of  Lomé  IV) 

46. 

In  Article  230,  the  following  shall  be  added  to  paragraph  1: 

"- 

Saint-Pierre-et-Miquelon.M. 

Article  231  (Article  331 of  Lomé  IV) 

In  Article  231,  the  following  item  7a  shall  be  inserted: 

"7a 

Stabex 

Article  121(5)". 

E.  PART  FOUR 

PROVISIONS  RELATING TO ESTABLISHMENT AND  SERVICES 

47. 

Article  232  shall  be  replaced  by  the  following  text: 

Article  232 

— 

"Article  232 
As regards the arrangements  applicable to establishment and provision of services, in line 
with  Article  132 (5)  of  the  Treaty  and  subject  to  paragraphs  1 and  2 of  this  Article: 

the Member  States  shall treat nationals  and  companies  or  enterprises  of the  OCT 
on  a non-discriminatory  basis, 

the  relevant  authorities  of  the  OCT  shall  treat  nationals  and  companies  or 
enterprises  of  Member  States  on  a non-discriminatory  basis. 

1. The  relevant  authorities  of  a  country  or territory  may,  however,  adopt  regulations  to 
aid their  inhabitants  and  local  activities  in derogation  from  the rules  normally  applicable 
to  nationals,  companies  or  enterprises  of  all Member  States  as  long  as  such  derogations 

37 

are  confined  to  sensitive  sectors  of  the  OCT's  economy  and  are  intended  to  promote  or 
support  local  employment. 

(a) 

(b) 

Such derogations  may be granted by the Commission  at the request of the relevant 
authorities  of  the  country  or  territory  concerned  and  after  consultation  in  the 
framework  of  the  partnership  provisions  of  Articles  234 to  236. 

Such a request must be accompanied by reasons indicating in particular the sectors 
concerned, the duration  and other procedures  envisaged.  It shall be notified  to the 
Commission,  which  shall  inform  the  Member  States  and  take  a  decision  within 
three  months. If  the Commission  has  not acted within that period,  the  derogation 
shall  be  deemed  to  have  been  approved. 

(c) 

Such  derogations  shall  be  published  in  the  Official  Journal  of  the  European 
Communities. 

2.  If a Member  State is not bound under  Community  law, or else national  law, to accord 
non-discriminatory  treatment  for  a given  activity  to  inhabitants  of  a  country  or  territory 
who  are  nationals  of  a  Member  State  or  enjoy  a  legal  status  specific  to  a  country  or 
territory, or for  companies or enterprises  established  in a country or territory  and  covered 
by  the  definition  in  Article  233, the  authorities  of  that  country  or  territory  shall  not  be 
bound  to  accord  such  treatment.". 

48. 

The  following  Article  233a  shall  be  inserted. 

"Article  233a 

1.  The Community  and its Member  States shall extend to the OCT its undertakings  under 
the General Agreement on Trade in Services  (GATS) on the basis of the  Most-Favoured-
Nation  clause. 

2.  As  regards  the  arrangements  governing  trade  in  services,  the  OCT  shall  afford 
nationals,  companies  or  enterprises  of  the  Member  States  treatment  that  is  no  less 
favourable  than  that  which  they  extend  to  nationals,  companies  or  enterprises  of  third 
countries.". 

49. 

The  following  Article  133b  shall  be  inserted: 

"Article  233b 

1.  With  a view to the ultimate recognition  of professional  qualifications  acquired  in the 
OCT, the  Commission  and the Member  States  concerned  shall  start work with  a view  to 
producing  a list of professional  qualifications  acquired in the OCT by OCT nationals  that 
would  be  recognized  in  the  Member  States  as  long  as these  qualifications  comply  with 
the  minimum  training  levels  required  by  the  Community. 

The  qualifications  in  question  concern  only  the professions  of  doctor,  dentist,  midwife, 
general  nurse,  pharmacist  and  veterinary  surgeon. 

38 

2.  The  list of professional  qualifications  referred  to in  paragraph  1 shall be  established 
by the  Council,  acting unanimously  on the basis  of a Commission  proposal  in respect  of 
a  future  Decision  on  the  association  of  the  OCT with  the European  Community.". 

F.  PART  FOUR A 

COMMUNITY  PROGRAMMES  FOR INDIVIDUALS 

50. 

The  following  Article  233c  shall  be  inserted: 

"Article  233c 

The  following  programmes  shall  apply  to  OCT  nationals: 

1. 

Education  and  training  programmes: 

(a) 

(b) 

(c) 

Leonardo,  set  up  by  Council  Decision  No  819/94/EC  of  6  December 
1994;9 
Socrates,  set  up  by  Decision  No  819/95/EC  of  the  European  Parliament 
and  of  the  Council  of  14 March  1995;10 
Youth  for  Europe  III,  set up  by Decision  No  818/95/EC of  the  European 
Parliament  and  of  the  Council  of  14 March  1995;11 

2. 

Employment  and  social  affairs  programmes: 

(a) 

(b) 

(c) 

(d) 

LEIs  (Local  Employment  Initiatives  for  women),  set  up  by  the  Council 
resolutions  of  13 December  198412 and  of  21 May  1991;13 
LEDA  (Local  Employment  Development  Action  Programme),  set  up  by 
the  Council  resolution  of  7 June  1984;14 
Ergo  II  (European  Community  Action  Programme  for  the  long-term 
unemployed),  set  up  by  the  Council  resolution  of  29 May  1990  on  a 
programme  of  action  for  employment;15 
living 
Helios  II  (handicapped  people  in  the  European  Community 
independently  in  an  open  society),  set  up  by  Council  Decision  of 
25  February  1993.16 

3. 

Business  programmes: 

9 

10 

11 

12 

13 

14 

15 

16 

O JL 340, 29.12.1994. 
OJ L 87, 20.4.1995. 
O JL 87, 20.4.1995. 
O JL 331, 19.12.1984. 
OJ C 142, 31.5.1991. 
OJ C 161, 21.6.1984. 
OJ C 157, 27.6.1984. 
O JL 56, 9.3.1993. 

39 

(a) 

(b) 
(c) 

Interprise,  set  up  by  Council  Decision  of  28  July  198917  and  Council 
Decision  93/379/EC of  14 June  1993;18 
Europartenariat,  set up  by  Council  Decision  of  18 December  1989;19 
BC-Net  (Business  Cooperation  Network),  BCC  (Business  Cooperation 
Centre),  Artisanat,  Euromanagement  and  Seed  Capital,  set  up  by  Council 
Decision  93/379/EC  of  14 June  1993.20 

4. 

Research,  development  and  innovation  programmes: 

(a) 

(b) 

Impact II (Information  Market Policy Action), set up by Council  Decision 
of  12 December  1991;21 
Telematic  applications,  set  up  by  Council  Decision  94/801/EC  of 
23 November  1994  adopting  a  specific  programme  for  research  and 
technological  development,  including  demonstration,  in  the  field  of 
telematics  applications  of  common  interest  (1994-98),  in particular  TIDE 
(Technology  Initiative for Disabled  and Elderly People), set up by Council. 

'  Decision  of  21  September  1993;22 

(c) 

Innovation, set up by Council Decision 94/917/EC of  15 December  1994.23 

5. 

Cultural  and  audiovisual  programmes: 

(a)  MEDIA,  set up  by  Council  Decision  of  21  December  1990;24 
(b) 
(c) 

following 

set  up 

call 

the 

KALEIDOSCOPE 
film 
festivals, 
15  September  1994.25 

for  proposals 

of 

6. 

The  HRTP  Japan  programme  (Human  Resources  Training  Programme  in  Japan) 
and  topical  missions,  set up  by  Council  Decision  of  18 May  1992.26". 

G. PART  FIVE 

COMMISSION/MEMBER STATE/OCT  PARTNERSHIP 

Article  234 

51. 

Article  234  shall  be  replaced  by  the  following: 

"" 

"Article  234 

1 7OJL239,  16.8.1989. 
18 

O JL  161, 2.7.1993, p. 68. 
OJ... 
O JL  161, 2.7.1993, p. 68. 
O JL  377, 31.12.1991. 
O JL  334, 22.12.1994. 
O JL  361, 31.12.1994. 
O JL  380, 31.12.1991. 
OJ  C258,  15.9.1994. 
O JL  144, 26.5.1992. 

" 

20 
21 
22 
23 
24 
25 
26 

40 

Community  action  shall  be  based  on  close  consultation  between  the  Commission,  the 
Member  State responsible  for  a country  or territory  and the relevant  local  authorities  of 
such  countries  of  territories.  Such  consultations  shall  hereinafter  be  referred  to  as 
"partnership".". 

Article  235 

52. 

Article  235  shall  be  replaced  by the  following: 

"Article  235 

1.  Partnership  shall  cover  the  programming,  preparation,  financing,monitoring  and 
evaluation  of  operations  carried  out  by  the  Community  under  this  Decision,  and  any 
problem  arising  in  relations  between  the  OCT  and  the  Community. 

2.  To this  end, working  parties  of  the  OCT  association,  of  an advisory  nature  and  made 
up  of  the  three  partners  referred  to  in Article  234, shall  be set up  either  on the  basis  of 
geographical  area or by group of OCT under the responsibility  of a single Member  State, 
notably  at the  request  of  the  OCT  concerned.  These working  parties  shall  be  set up: 

on  an ad hoc  basis  to  deal with  specific  problems,  or 

on a permanent basis, if possible  annual, for  the remainder  of the period  covered 
by  this  Decision. 

3. The Commission  shall chair the working parties. A representative of the Bank shall be 
present  at meetings  when  matters  concerning  it  are on  the  agenda. 

The expenses  incurred by the OCT in attending partnership meetings  may be covered  by 
a  financial  contribution  under  the  territorial  or  regional  programmes  of  the  European 
Development  Fund  at  the  request  of  the  relevant  authorities  of  the  OCT  concerned,  in 
accordance  with  the  procedures  laid  down  in  Title  III  of  this  Decision  concerning 
development  financing  cooperation.". 

41 

H.  ANNEX II 

concerning  the definition  of  the  concept of  originating products 
and methods  of  administrative  cooperation 

Article  3 

53. 

In  Article 3: 

subparagraph  2(d)  shall  be  replaced  by  the  following: 

"(d) 

in 
'customs  value'  shall  be  understood  as  meaning  the  value  established 
accordance with the  1994 Agreement on the implementation  of Article  VIII of the 
General  Agreement  on  Tariffs  and  Trade  (World  Trade  Organization  agreement 
on  customs  value)." 

paragraph  3 shall  be replaced  by  the  following: 

"3. For the purpose of implementing paragraphs  1  and 2 the following  shall be considered 
as insufficient  working or processing to confer the status of originating products, whether 
or  not  there  is  a change  of  heading: 

(a) 

(b) 

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

simple  operations  consisting  of  removal  of  dust,  husking,  partial  or  total 
bleaching,  polishing, glazing,  (for  cereals  and rice),  sifting  or  screening,forming 
sugar  lumps, colouring,  sorting,  classifying,  matching  (including the  making-up 
of  sets  of  articles, washing,  painting,  cutting-up); 

(c) 

(i) 
(ii) 

changes  of  packaging  and  breaking  up  and  assembly  of  consignments; 
simple  placing  in  bottles,  flasks,  bags,  cases,  boxes,  fixing  on  cards  or 
boards  etc., and  all  other  simple packaging  operations; 

(d) 

affixing  marks,  labels  and  other  like  distinguishing  signs  on  products  or  their 
packaging; 

(e) 

(i) 

simple  mixing  of  products,  even  of  different  kinds,  where  one  or  more 
components  of  the  mixture  do  not  meet  the  conditions  laid  down  in  this 
Annex to  enable them  to be considered  as originating  in an ACP  State,  in 
the  Community  or  in  a country  or  territory; 

(f) 

simple  assembly  of  parts  of  articles  to  constitute  a  complete  article; 

(g) 

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

(h) 

slaughter  of  animals.". 

54. 

In  Article  5,  "10%" shall  be  replaced  by  "15%". 

42 

55. 

Article  6  shall  be replaced  by  the  following  text: 

"Article 6 

Cumulation  and  attribution  of  origin 

1.  For the purpose of implementing this Title, the OCT shall be considered  as being  one 
territory. 

2.  When  products  wholly  obtained  in  the  Community  or  in  the  ACP  States  undergo 
working  or  processing  in  the  OCT,  they  shall  be  considered  as  having  been  wholly 
obtained  in  the  OCT. 

3.  Working  and  processing  carried  out  in the  Community  or  in the  ACP  States  shall  be 
considered  as  having  been  carried  out  in  the  OCT  when  the  materials  undergo  further 
working  or  processing  in the  OCT. 

4.  Paragraphs  2  and  3 shall  not  apply  to the  products  falling  within  Chapters  1 to  24  of 
the  Harmonized  System  if  the products: 

originate  in  the  Community  or  enjoy  financial  benefits  when  exported; 

originate  in  an  ACP  State. 

5.  Without  prejudice  to  paragraph  4,  paragraphs  2  and  3  apply  to  any  working  or 
processing  carried  out  in  the  OCT,  including  the  operations  listed  in  Article  3(3). 
However,  originating  products  made  up  of  materials  wholly  obtained  or  sufficiently 
processed  in two  or  more  OCT or  in  one or  more ACP  States  and  in one  or  more  OCT 
shall be considered  as products originating in the country or territory or ACP  State where 
the  last  working  or  processing  took  place,  provided  that  this  working  or  processing 
exceeded  the  insufficient  operations  listed  in  Article  3(3)  or  a  combination  thereof. 

56. 

Article  7  shall  be  deleted. 

Article  13 

Issue  of  certificate  EUR.1  retrospectively 

57. 

In  Article  13, the following  terms  shall  be  added  to  paragraph  3: 

"ANNETTU  JÀLKIKÂTEEN" 

"UTFÀRDAT  I  EFTERHAND". 

Article  14 

Issue  of  a duplicate  certificate  EUR.1 

58. 

In  Article  14, the  following  term  shall  be  added: 
"KAKSOISKAPPALE". 

43 

Article  21 

Form EUR.2 

59. 

60. 

61. 

In  Article  21, the  sixth  line  of  paragraph  1,  "ECU  2  820"  shall  be  replaced  by 
"ECU  3  140". 

In  Article  21, the  first  line of  paragraph  2,  "30  April  1991" shall  be  replaced  by 
"30  April  1997"; 

In  Article  21, the fourth  line of paragraph  2,  "1  October  1988" shall  be  replaced 
by  "1  October  1994". 

Article  22 

Exemptions  from  proof  of  origin 

62. 

In  Article  22,  the  second  subparagraph  of  paragraph  2,  "ECU  200"  and  "ECU 
565"  shall  be  replaced  by  "ECU  230"  and  "ECU  630"  respectively. 

Article  30 

Derogations 

63. 

In  Article  30,  the  third  subparagraph  of  paragraph  1  shall  be  replaced  by  the 
following: 

"The Community shall accept all requests which are duly justified  in conformity  with this 
Article,  in  particular  when  substantial  processing  or  working  is  carried  out  in  the 
requesting  OCT,  and  which  cannot  cause  serious  injury  to  an  industry  or  agricultural 
sector  of  the  Community." 

64. 

In  Article  30, the  last  subparagraph  shall  be  replaced  by  the  following: 

"The  form  may  be  amended  in  accordance  with  the procedure  set  out  in  Article  249(2) 
and  (3)  of  Regulation  (EEC)  No  2913/92." 

65. 

In~Article 30, paragraph  6 shall  be replaced  by  the  following: 

"6.  In  the  examination  of  requests,  special  account  shall  be  taken,  case  by  case,  of  the 
possibility of conferring  originating status on products which include in their  composition 
materials  originating  in: 

ACP  States  and  excluded  from  the  cumulation  provisions  of  Article  6, or 

neighbouring  developing  countries  or  least-developed  countries,  provided  that 
satisfactory  administrative  cooperation  can  be  established.". 
In  Article  30, subparagraph  8(a)  shall  be  replaced  by  the  following: 

66. 

"8.  (a)  The  Council  and the Commission  shall take all the necessary  measures  to  ensure 
that  a decision  is taken  promptly  and  in  any  case not  later than  60 working  days 

44 

after  receipt  of  the  request  by  the  chairman  of  the  Customs  Code  Committee  -
In  this  context,  Decision  90/523/EEC  shall  apply  mutatis 
Origin  Section. 
mutandis  to the  OCT;". 

67. 

In  Article  30, paragraph  10 shall  be replaced  by  the  following: 

"10.  Should  a derogation  cause serious  disturbance in sectors of activity of some regions 
of  the  Community,  it  shall  be  re-examined  in  accordance  with  the  procedure  set  out  in 
Article  249 of Council Regulation (EEC) No  2913 of  12 October  1992, without  prejudice 
to  the  emergency  measures  that  the  Commission  is  authorized  to  take. 

Following  this  examination,  the  decision  may  be  amended  or  revoked." 

68. 

Article  33  shall  be  deleted. 

TITLE  IV 

CEUTA AND  MELILLA 

69. 

In  Title  IV  of  Annex  II,  "Canary  Islands,  Ceuta  and  Melilla",  and  in  Article  31, 
of which this Title consists, all references  to the "Canary Islands" shall be deleted. 

ANNEXES  TO ANNEX  II 

70. 

-  In  Annex  1 to  Annex  II, the  note  8 attached  hereto  shall  be  added. 

-  The  list  in  Annex  2 to  Annex  II shall  be replaced  by  the  list  attached  hereto. 

71. 

In  Annex  3 to  Annex  II,  "Eritrea"  shall  be  added. 

72. 

In  Annex  4 to  Annex  II, paragraph  4 shall  be  deleted. 

73. 

Annex  8 to  Annex  II  shall  be  deleted. 

74. 

Annex  9 to  Annex  II  shall  be  renamed  "Annex  8". 

~~ 

I ANNEX  lia 

75. 

The  following  Annex  Ha shall  be  inserted. 

"Annex lia  establishing  implementing  provisions  for 
the system  of  minimum import prices 

Article 1 

In  order  to  prevent  trade between  the OCT  and the  Community  in  products  covered  by 
institutional  price  arrangements  under  the  Common  Agricultural  Policy  disrupting 
markets, the  Commission,  after  consulting the authorities  involved,  as  called  for  by  the 
partnership  arrangements  referred  to in Article 235, may fix a minimum  import  price  for 
such  products. 

45 

The  minimum  price  shall  not  exceed  the  level  strictly  necessary  to  comply  with  the 
objectives  of  Article  39 of  the  Treaty,  and  shall  allow  products  originating  in  the  OCT 
more favourable  conditions than those applying to imports of the same product originating 
in  a third  country  enjoying  preferential  treatment  in trade  with  the  Community. 

Principles  and  definitions 

Article  2 

1. For  the  purposes  of  this  Annex,  the  elements  making  up  the  import  price  shall  be: 

(a) 
(b) 

the  fob  price  in  the  country  or  territory  of  origin; 
the  actual  cost of transport  and  insurance until  arrival  on the  customs  territory  of 
the  Community. 

2. For the purposes  of paragraph  1 'fob  price' shall mean the price paid or payable for  the 
quantity  of  products  contained  in  a  consignment,  including  the  cost  of  placing  the 
consignment  on  board  a  means  of  transport  at  the  place  of  loading  in  the  country  or 
territory  of origin and other costs incurred  in that country or territory.  The fob price does 
not  include  the  cost  of  any  services  to  be  borne  by  the  seller  from  the  time  that  the 
products  are  placed  on  board  the  means  of  transport. 

3. Where  it is found  that prices on resale,  directly  or via  commercial  intermediaries,  are, 
after  deduction  of  the  import  duties  actually  paid,  more  than  15%  below  the  minimum 
price of an imported  consignment,  the weighted  average of those adjusted  prices  shall  be 
deemed  the  import  price. 

Article 3 

The equivalent value  in local  currency  of the ecu for  the purpose of  applying this  Annex 
shall  established  once  a  month.  The  rates  to  be  used  for  this  conversion  are  those 
published  in  the  Official  Journal  of  the  European  Communities  on  the  penultimate 
working  day  of  the  month.  These  rates  shall  be  applicable  throughout  the  whole  of  the 
following  month. 

However,  if the rate applicable at the beginning of any given month  differs  by more than 
5  %  fronTthat  published  on  the penultimate  working  day  preceding  the  15th  day  of  the 
same month, this  latter rate is applicable from  and including the  15th until the  end of the 
month  in  question. 

Checks  and  taxation  on  imports 

Article 4 

The  competent  national  authorities  shall,  whenever  a  declaration  for  release  for  free 
circulation is accepted,  compare the declared import price with the minimum  import price 
applicable  to  the  goods  on  the  day  the  declaration  is  accepted. 

46 

Where the price shown on the invoice is for  deferred  payment during  a period  exceeding 
three months, the price  shown on the invoice shall be reduced  by  1 % for  each  month  of 
deferral  granted  in  excess  of  those  three  months. 

Article  5 

Where  the  import  price  is  less  than  the  minimum  import  price  applicable  to  the  goods, 
the  competent  national  authorities  shall  levy  a  countervailing  charge  equal  to  the 
difference  between  those  prices. 

Special  control  procedure 

Article  6 

1. Wherelhe customs authorities have well-founded  doubts that the price appearing in the 
declaration  of  release  for  free  circulation  reflects  the  actual  import  price,  the  importer 
shall  lodge  the  security  referred  to  in Article  248(1)  of  Regulation  (EEC)  No  2454/93 
laying  down  provisions  for  the  implementation  of  Council  Regulation  No  2913/92 
establishing  the  Community  Customs  Code,27 plus  interest  for  the period  of  six  months 
referred  to  in  the  second  subparagraph.  The  rate  of  interest  applicable  shall  be  that  in 
force  under  national  law for  the  recovery  of  sums  due. 

Importers  shall have six months within which to prove that the product has been  disposed 
of under  conditions  which guarantee observance of the minimum  import price. Failure to 
comply  with  the  time  limit  shall  entail  the  loss  of  the  security,  without  prejudice  to 
paragraph  2. 

2. The time limit laid  down in paragraph  1 may be extended by the competent  authorities 
by up  to  three months  on  a duly justified  application  by  the  declarant  and  provided  that 
the  security  is  adjusted  accordingly. 

Article  7 

1. The  minimum  import  price  shall  be  deemed  to  be  observed  if  the  importer  furnishes 
proof in respect of at least 95 % of the consignment imported  that, at all marketing stages 
including  sale  to  end  users,  the  product  has  been  sold  at  a  price  at  least  equal  to  the 
minimum  import  price  after  deduction  of  customs  import  charges  actually  paid.  If  the 
product undergoes  treatment after  its release for  free  circulation  and before  its  sale to the 
end user, the cost of such treatment shall be reflected  in the selling price to the end  user. 
2.  If  the  proof  from  the  end  user  cannot  be  presented  despite  all  steps  taken  by  the 
importer,  the  competent  authorities  may  accept other  proof  to the  effect  that  the  product 
was  sold  under  conditions  indicating  that  the  minimum  price  has  been  observed. 

3.  The  application  of  the  special  control  procedure  shall  be  without  prejudice  to  the  a 
posteriori  checks  referred  to  in Articles  8,  9 and  10. 

27 

O JL  253, of  11.10.1993, p.  1. 

47 

4. The end user, for  the purposes  of this  Annex, shall be either  a manufacturer  who  uses 
the  product  in  question  with  a  view  to  processing,  other  than  packaging,  into  another 
product  falling  within  CN codes  other than  those shown  in the declaration  of  release  for 
free  circulation,  or  a retailer  selling  exclusively  to  consumers. 

Post-clearance  checks 

Article  8 

The  importer  shall  keep  available  for  examination  by  the  competent  authorities,  in  view 
of  a posteriori  checks, proof of payment to the seller  and all commercial  documents  such 
as  invoices,  contracts  and  correspondence  concerning  the  purchase  and  the  sale  of  the 
products  in  question  for  at  least three  years  following  the  year  in which  the  declaration 
for  release  for  free  circulation  was  accepted. 

The  competent  authorities  shall  carry  out  random  checks. 

Article  9 

Article  10 

Where, in the course of a check, the competent  authorities find that the minimum  import 
price has  not been observed, they shall collect the duties owed in accordance with  Article 
220  of  Regulation  (EEC)  No  2913/92.  In  establishing  the  amount  of  the  duties  to  be 
recovered  or remaining to be recovered, they shall take account of interest incurred  from 
the  date  of  release  for  free  circulation  of  the  goods  until  that  of  recovery.  The  rate  of 
interest  applied  shall  be  that  in  force  under  national  law  for  the  recovery  of  the  sums 
due. 

Administrative  cooperation 

Article  11 

The  relevant  authorities  of  the  Community  and  of  the  OCT  shall  assist  each  other, 
through  their  respective  customs  administrations,  in  carrying  out  controls  to  ensure  the 
proper  application  of  this  Annex  and  of  any  autonomous  regulations  which  may  have 
been  adopted  by  the  OCT  authorities  in  connection  with  the  provisions  of  this  Annex. 

Price-setting  procedure 

Article  12 

1. The minimum  import price shall be set for  each marketing year two months before  the 
beginning  of  the  marketing  year,  and  may  if  necessary  be  modified  in  the  light  of  the 
market situation,  after  consultation  with the authorities  involved  in the framework  of  the 
partnership arrangements  referred  to in Article 235, according to the procedures  provided 
for  in: 

48 

(a) 

b) 

Article 23 of Council Regulation  (EEC) no. 766/92, of  30 June  199228 concerning 
the  common  organisation  of  the  markets  in  cereals,  or 

corresponding  articles  in  the  other  regulations  concerning  common  market 
organisations. 

76. 

Annex  V  shall  be  deleted. 

J.  ANNEX  V 

on rum 

ARTICLE  2 

This  Decision  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official  Journal  of  the  European  Communities,  with  the  exception  of  the  financial 
commitments  implementing  Article  154a. 

These  commitments  shall  apply  from  the  date  of  the  internal  ratification  of  the  Internal 
Agreement. 

This  Decision  shall  be  published  in the  Official  journal  of  the European  Communities. 

ARTICLE  3 

Done  at Brussels, 

For  the  Council 

The  President 

28 

O JL  181  of  1.7.1992,  p.  1. 

Annexe  Notes 

Note 8 

8.1  Appendix 1 

For  the  purposes  of  heading  Nos  ex 2707,  2713  to  2715, ex  2901,  ex  2902  and  ex  3403,  the 
"specific processes'' are the following: 

(a). vacuum distillation; 

(b)  redisriTlafinn by a very thorough fractionation process* 

(c)  cracking; 

(d)  reforming; 

(e)  extraction by means of selective solvents; 

(fy  the  process comprising  all  the  following  operations: processing  with  concentrated  sulphuric 
acid,  oleum or  sulphuric  anhydride;  neutralization with  alkaline  agents;  decolonization  and 
purification with naturally active earth, activated earth, activated charcoal or bauxite; 

(g)  polymerization; 

(h)  alkyiation; 

(i) 

isomerizatioiL 

5.2  Appendix  2 

For the purposes of heading Nos 2710, 2711 and 2712, the "specific processes" are the  following: 

(a)  vacuum distillation; 

^ 

(b)  redistillation by a ver)' thorough fractionation  process ' 

(c)  cracking; 

(d)  reforming; 

(e)  extraction by means of selective solvents; 

(0 

the  process comprising  all  tl»e following  operations: processing  with  concentrated  sulphuric 
acid,  oleum  or  sulphuric  anhydride;  neutralization  with  alkaline  agents;  decolorizalion  and 
purification with naturally active earth, activated earth, activated charcoal  or bauxite; 

(g)  polymerization; 

(h)  alkyiation; 

(ij)  isomerization; 

(k)  in  respect  of  heavy  oils  falling  within  heading  No  ex  2710  only,  desulphiirization  with 
hydrogen resulting in a reduction of at least 85 per cent of the sulphur  content  of the  products 
processed (ASTM D  1266-59 T method); 

(1) 

in  respect  of products  falling  within  heading No 2710 only, deparaffining  by a  process  other 
than  filtering; 

(m) in  respect  of heavy oils falling  within  heading No ex 2710 only, treatment  with  hydrogen  at  a 
pressure of more than  20 bar and a temperature of more than  250°C with  the use of a  catalyst, 
other  than  to  effect  desulphurizalion,  when  the  hydrogen  constitutes  an  active  element  in  a 

(( 1 )  See Additional  Explanatory  Noie 4(b) to Chapter 27 of the combined  nomenclature 
'—'  Sec Additional  Explanatory  Note 4(b) to Chapter 27 of the combined  nomenclature 

5£ 

I X. 

chemical reaction.  The further  treatment with hydrogen of lubricating oOs of heading No  ex 
2710 (eg.  hvdrofinishing  or  decolorizatkm) in order, more csrxxiaTry, to  improve  colour  or 
stability shall not, however, be deemed to be a specific process; 

(n)  in  respect  of fuel  oils  falling  within  ly*<ting No ex 2710  only, atmospheric distillation,  on 
condition that  less than  30 per  cent  of these products distils, by volume» including  losses,  at 
300°C by the ASTM D 86 method; 

(oy  in respect of  heavy  oils other  than  gas oils and  fuel  oils falling  within  heading  No  ex  2710 

only, treatment by means of a high-frequency electrical brush-discharge. 

8.3 

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

5"3 

Annex  2 

to 

ANNEX  II 

List  of  working  or  processing  required  to  be  carried  out  on  non-originating  materials  in 
order  that  the  product  manufactured  can  obtain  originating  status 

^ <y 

HS heading 
No. 

Description of product 

Working or processing carried out on non-originating 
materials thai confers originating  status 

I D-

(2) 

121. 

Chapter  01 

Live animals 

Chapter 02 

Meal and edible meat 
offal 

Chapter 03 

Fish and crustaceans, 
molluscs and other 
aquatic invertebrates 

ex Chapter 04 

0403 

Dairy produce; birds' 
eggs; natural honey, 
edible products of animal 
origin, not elsewhere 
specified  or included; 
except  for: 

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,  nuts or cocoa 

All the animals of  Chapter 
1 used must be wholly 
obtained 

Manufacture  in which all 
the materials of Chapters 1 
and 2  used must be wholly 
obtained 

Manufacture  in which all 
the materials of Chapter 3 
used must be wholly 
obtained 

Manufacture  in which all 
the materials of Chapter 4 
used must be wholly 
obtained 

Manufacture in which: 
-  all the materials of 
Chapter 4 used must be 
wholly obtained; 
-  any fruit juice (except 
those of pineapple, lime or 
grapefruit)  of heading No  . 
2009 used must already be 
originating; 
-  the value of any materials 
of Chapter  17 used does not 
exceed 30% of the ex-works 
price of the product 

ex Chapter 05 

Products of animal origin, 
not elsewhere specified  or 
included; except for: 

Manufacture  in which all 
the materials of Chapter 5 
used must be wholly 
obtained 

ex 0502 

Prepared pigs', hogs' or 
boars' bristles and  hair 

Chapter 06 

Live trees and other 
plants, bulbs, roots and 
the like; cut flowers and 
ornamental  foliage 

Cleaning,  disinfecting, 
sorting and straightening of 
bristles and hair 

Manufacture  in which: 
-  all the materials of 
Chapter 6 used must be 
wholly obtained; 
-  the value of all the 
materials used does not 
exceed 50% of the ex-works 
price of the product 

- S Ç-

HS heading 
No. 

Description of product 

Working or processing carried out on  non-originating 
materials that confers originating  status 

(1) 

(2) 

£L 

Chapter  07 

Edible vegetables and 
certain roots and  tubers 

Chapter  08 

Edible fruit  and  nuts; peel 
of citrus fruits  or melons 

ex Chapter 09  Coffee,  tea, maté and 

spices; except for: 

0901 

Coffee, whether or not 
roasted or  decaffeinated; 
coffee  husks and skins; 
coffee  substitutes 
containing coffee  in any 
proportion 

Manufacture  in which all 
the materials of Chapter 7 
used must be wholly 
obtained 

Manufacture  in which: 
-  all the fruit  and nuts used 
must be wholly obtained; 
-  the value of any materials 
of Chapter  17 used does not 
exceed 30 % of the value of 
the ex-works price of the 
product 

Manufacture  in which all 
the materials of Chapter 9 
used must be wholly 
obtained 

Manufacture from materials 
of any heading 

0902 

Tea, whether or not 
flavoured 

Manufacture  from  materials 
of any heading 

ex 0910 

Mixtures of spices 

Chapter  10 

Cereals 

ex Chapter  11  Products of the milling 
industry, malt; starches; 
inulin; wheat gluten; 
except  for 

ex  1106 

Flour, meal and powder 
of the dried, shelled 
leguminous vegetables of 
heading No 0713 

Mamrfacfiire from  materials 
of any heading 

Manufacture  in which all 
the materials of Chapter 10 
used must be wholly 
obtained 

Manufacture  in which all 
the cereals, edible 
vegetables, roots and tubers 
of heading No 0714 or fruit 
used must be wholly 
obtained 

Drying and filling of 
leguminous vegetables of 
t y p i ng  No 0708 

5£. 

HS heading 
No. 

Description of product 

Working or processing carried out on ncm-originating 
materials that confers originating status 

ill— 

J2L 

(3) 

Chapter  12 

1301 

1302 

OU seeds and oleaginous 
fruits; miscellaneous 
grains, seeds and fruit; 
industrial or medicinal 
plants; straw and fodder 

Manufacture in which all 
the materials of Chapter 12 
used must be wholly 
obtained 

Lac, natural gums,  resins, 
gum-resins and olcoresins 
(for example, balsams) 

Manufacture m which the 
value of any materials of 
heading No  1301 used may 
not exceed 50% of the ex-
works price of the product 

Vegetable saps and 
extracts; pectic 
substances, pectinates and 
pcctates; agar-agar and 
other mucilages ynd 
thickeners, whether or 
not modified, derived 
from vegetable products: 

-  Mucilages and 
thickeners, modified, 
derived from vegetable 
products 

-  Other 

Manufacture from non-
modified mucilages and 
thickeners 

Manufacture in which the 
value of all the materials 
used does not exceed 50% of 
the ex-works price of the 
product 

Chapter 14 

Vegetable plaiting 
materials; vegetable 
products not elsewhere 
specified or included 

Manufacture in which all 
the materials of Chapter 14 
used must be wholly 
obtained 

Manufacture in which all 
the materials used are 
classified within a heading 
other than that of the 
product 

ex Chapter 15 

1501 

Animal or vegetable fats 
and oils and their 
cleavage products; 
prepared edible fats; 
animals or vegetable 
waxes; except for 

Pig fat (including lard) 
and poultry fat, other 
than that of heading no. 
0209 or 1503: 

^ 

HS heading 
No. 

Description of produa 

Working or processing carried out on non-originating 
materials that confers originating status 

.22. 

S2L 

-  Fats from bones or 
waste 

Other 

Manufacture from materials 
of any heading except those 
of heading Nos 0203, 0206 
or 0207 or bones of heading 
No 0506 

Manufacture from meat or 
edible offal of swine of 
heading No 0203 or 0206 or 
of meat and edible offal of 
poultry of heading No 0207 

1502 

1504 

Fats of bovine animals, 
sheep or goats, other than 
those of heading No. 
1503 

-  Fats from bones or 
waste 

Other 

Fats and oils and their 
fractions, offish  or 
marine mammals, 
whether or not refined, 
but not chemically 
modified: 

-  Solid fractions 

Other 

ex  1505 

Refined lanolin 

1506 

Other animals fats and 
oils and their fractions, 
whether or not  refined, 
but not chemically 
modified: 

Mamifacture from materials 
of any heading except those 
of heading Nos 0201,0202, 
0204 or 0206 or bones of 
heading No 0506 

Manufacture in which all 
the materials of Chapter 2 
used must be wholly 
obtained 

Manufacture from materials 
of any heading including 
other materials of heading 
No  1504 

Manufacture in which all 
the materials of Chapters 2 
and 3 used must be wholly 
obtained 

Manufacture from crude 
wool grease of heading No 
1505 

S2 

Description of product 

Working or processing carried out on non-originating 
materials that confers originating status 

HS heading 
No. 

Ill 

J21 

-  Solid fractions 

Other 

1507 to 1515 

Vegetable oils and their 
fractions: 

-  Soya, ground nut, 
palm, copra, palm kernel, 
babassu, tung and oiticica 
oil, myrtle wax and Japan 
wax, fractions of jojoba 
oil and oils for technical 
or industrial uses other 
than the manufacture of 
foodstuffs for human 
consumption 

C3) 

Manufacture from materials 
of any heading including 
other materials of heading 
No 1506 

Manufacture in which all 
the materials of Chapter 2 
used must be wholly 
obtained 

Manufacture in which all 
the materials used are 
classified within a heading 
other than that of the 
product 

1516 

1517 

-  Solid fractions, except 
for that of jojoba oil 

Manufacture from other 
matrriak of heading Nos. 
1507 to 1515 

Other 

Animal or vegetable fats 
and oils and their 
fractions, partly or wholly 
hydrogenated, intcr-
esterified, rc-esterified or 
daidinized, whether or 
not refined, but not 
further prepared 

Margarine; edible 
mixtures or preparations 
of animal or vegetable 
fats or oils or of fractions 
of different fats or oils of 
this Chapter, other than 
edible fats or oils or their 
fractions of heading No 
1516 

Manufacture in which all 
the vegetable materials used 
must be wholly obtained 

MaxKxfactnre in which: 
- all the materials of 
Chapter 2 used must be 
wholly obtained; 
- all the vegetable materials 
used must be wholly 
obtained. However, 
materials of headings 1507, 
1508,1511 and 1513 may 
be used 

Manufacture in which: 
- all the materials of 
Chapters 2 and 4 used must 
be wholly obtained; 
- all the vegetable materials 
used must be wholly 
obtained. However, 
fTyifrriak  nf  hradingt;  1507, 
1508,  1511 and 1513 may 
be used 

$°) 

HS heading 
No. 

Q 2_ 

Chapter  16 

Description of product 

Working or processing carried oat on non-originating 
materials that confers originating status 

ii) 

(3) 

Preparations of meat, of 
fish  or of crustaceans, 
molluscs or other aquatic 
mvertebrates 

Manufacture from animals 
of Chapter 1. All the 
materials of Chapter 3 used 
must be wholly obtained 

ex Chapter 17 

Sugars and sugar 
confectioner)', except for: 

ex  1701 

1702 

Cane or beet sugar and 
chemically pure sucrose, 
m solid farm, flavoured 
or coloured 

Other sugars, inchxring 
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: 

-  Chemically pure 
mahose and fructose 

-  Other sugars in solid 
form, flavoured or 
coloured 

-  Other 

Manufacture in which all 
the materials used are 
classified within a heading 
other than that of the 
product 

Manufacture in which the 
value of any materials of 
Chapter 17 used does not 
exceed 30% of the ex-works 
price of the product 

Manufacture from materials 
of any heading including 
other materials of heading 
No  1702 

Manufacture in which the 
value of any materials of 
Chapter 17 used does not 
exceed 30% of the ex-works 
price of the product 

Manufacture in which all 
the materials used must 
already be originating 

ex  1703 

Molasses resulting from 
the extraction or  refining 
of sugar, flavoured or 
coloured 

Manufacture in which the 
value of any materials of 
Chapter 17 used docs not 
exceed 30% of the ex-works 
price of the product 

6< CD 

HS heading 
No. 

Description of product 

Working or processing carried out on non-originating 
materials that confers originating status 

ill— 

(2) 

(3) 

1704 

Sugar confectionery 
(including white 
chocolate), not œntaining 
cocoa 

Chapter 18 

Cocoa and cocoa 
preparations 

Manufacture in which: 
-  all the materials used are 
classified within a heading 
other than that of the 
product; 
-  the value of any materials 
of Chapter 17 used does not 
exceed 30% of the ex-works 
price of the product 

Manufacture in which: 
-  all the materials used are 
ria^rficd within a heading 
other than that of the 
product; 
-  the value of any materials 
of Chapter 17 used does not 
exceed 30% of the ex-works 
price of the product 

1901 

Malt extract; food 
preparations of  flour, 
meal, starch or malt 
extract, not containing 
cocoa or containing less 
than 40% by weight of 
cocoa calculated on a 
totally defatted basis, not 
elsewhere specified of 
included; food 
preparations of goods of 
heading Nos, 0401 to 
0404, not containing 
cocoa or œntaining less 
than 5% by weight of 
cocoa calculated on a 
totally defatted basis, not 
elsewhere specified or 
included: 

- Malt extract 

-Other 

Manufacture from cereals of 
Chapter 10 

Manufacture in which: 
-  all the materials used are 
classified within a heading 
other than that of the 
product; 
-  the value of any materials 
of Chapter  17 used does not 
exceed 30% of the ex-works 
price of the product 

£A 

HS heading 
No. 

(1) 

1902 

1903 

1904 

1905 

Description of product 

Working or processing carried out on non-originating 
materials that confers originating status 

SU. 

(3) 

Pasta, whether or not 
cooked or stuffed (with 
meat or other substances) 
or otherwise prepared, 
such as spaghetti, 
macaroni noodles, 
lasagne, gnocchi,  ravioli, 
cannelloni; couscous, 
whether or not prepared: 

-  Containing 20% or less 
by weight of meat, meat 
offaL fish, crustaceans or 
molluscs 

-  Containing more than 
20% by weight of meat, 
meat offal, fish, 
crustaceans or molluscs 

Tapioca and substitutes 
therefor prepared from 
starch, in the form of 
flakes,  grains, pearls, 
siftings or in similar 
forms 

Manufacture in which all 
the cereals and derivatives 
(except durum wheat and its 
derivatives) used must be 
wholly obtained 

Manufacture in which: 
-  all cereals and derivatives 
(except durum wheat and its 
derivatives) used must be 
wholly obtained; 
-  all the materials of 
Chapters 2 and 3 used must 
be wholly obtained 

Manufacture from  materials 
of any heading except potato 
starch of heading No.  1108 

Prepared foods obtained 
by the swelling or 
roasting  of cereals or 
cereal products (for 
example, corn  flakes); 
cereals, other than maize 
(corn) in grain form, or in 
the form of flakes or other 
worked grains (except 
flour  and meal), pre 
cooked, or otherwise 
prepared, not elsewhere 
specified or included 

Manufacture: 
.  from materials not 
classified within heading 
No 1806; 
- in which all the cereals 
and flour (except durum 
wheat and its dérivâtes) used 
must be wholly obtained; 
- in which the value of any 
materials of Chapter 17 used 
does not exceed 30% of the 
ex-works price of the 
product 

Manufacture from materials 
of any heading except those 
of Chapter 11 

Bread, pastry, cakes, 
biscuits and other bakers' 
wares, whether or not 
containing cocoa; 
communion wafers, 
empty cachets of a kind 
suitable for 
pharmaceutical use, 
sealing wafers, rice paper 
and similar products 

" •""6SL 

HS heading 
No. 

Description of product 

Working or processing carried out on non-originating 
materials that confers originating status 

Q) 

(2) 

(3) 

ex Chapter 20 

Preparations of 
vegetables, fruit, nuts or 
other parts of plants; 
except for 

Manufacture in which all 
the fruit, nuts or vegetables 
used must be wholly 
obtained 

ex 2001 

Yams, sweet potatoes and 
similar edible parts of 
plants containing 5% or 
more by weight of starch, 
prepared or preserved by 
vinegar or acetic acid 

Manufacture  in which all 
the materials used are 
classified within a heading 
other than that of the 
product 

ex 2004 and 
ex 2005 

Potatoes in the form of 
flour,  meal or  flakes, 
prepared or preserved 
otherwise than by vinegar 
or acetic acid 

Manufacture in which all 
the materials used are 
classified within a heading 
other than that of the 
product 

Vegetables, fruit, nuts, 
fruit-peel and other parts 
of plants, preserved by 
sugar (drained, glacé or 
crystallized) 

Manufacture in which the 
value of any materials of 
Chapter  17 used does not 
exceed 30% of the ex-works 
price of the product 

2006 

2007 

Jams, fruit jellies, 
marmalades, fruit or nut 
puree and fruit or nut 
pastes, being cooked 
preparations, whether or 
not containing added 
sugar or ether sweetening 
matter 

ex 2008 

-  Nuts, not containing 
added sugar or spirits 

-  Peanut butter, mixtures 
based on cereals; palm 
hearts; maize (corn) 

Manufacture in which: 
- all the materials used are 
classified  within a heading 
other than that of the 
product; 
- the value of any materials 
of Chapter 17 used does not 
exceed 30% of the ex-works 
price of the product 

Manufacture in which the 
value of the originating nuts 
and oil seeds of heading Nos 
0801,0802 and 1202 to 
1207 used exceeds 60% of 
the ex-works price of the 
product 

Manufacture in which all 
the materials used are 
classified within a heading 
other than that of the 
product 

r4*r««Siv &h 

US heading 
No. 

Description of product 

Working or processing carried out on non-originating 
materials that confers originating status 

0 )_ 

(2) 

(3) 

-  Other except for fruit 
and nuts cooked 
otherwise than by 
steaming or boiling in 
water, not containing 
added sugar, frozen 

2009 

Fruit juices and vegetable 
juices (including grape 
must), unfennented and 
not containing added 
spirit, whether or not 
containing added sugar or 
other sweetening matter 

ex Chapter 21  Miscellaneous edible 

preparations; except for: 

2101 

2103 

Extracts, essences and 
concentrates, of coffee, 
tea, maté, roasted chicory 
and other coffee 
substitutes 

Sauces and preparations 
therefor, mixed 
condiments and mixed 
seasonings; mustard floor 
and meal and prepared 
mustard: 

-  Sauces and 
preparations therefor, 
mixed condiments and 
mixed seasonings 

Manufacture in which: 
-  all the materials used are 
classified within a heading 
other than that of the 
product; 
-  the value of any materials 
of Chapter 17 used does not 
exceed 30% of the ex-works 
price of the product 

Manufacture in which: 
-  all the materials used are 
classified within a heading 
other than that of the 
product; 
-  the value of any materials 
of Chapter 17 used does not 
exceed 30% of the ex-works 
price of the product 

Manufacture in which all 
the materials used are 
classified within a heading 
other than that of the 
product 

Manufacture in which: 
-  all the materials used are 
classified within a heading 
other than that of the 
product; 
-  all the chicory used must 
be wholly obtained 

Manufacture in which all 
the materials used are 
classified within a heading 
other than that of the 
product  However, mustard 
flour or meal or prepared 
mustard may be used 

-  Mustard flour and meal 
and prepared mustard 

Manufacture from materials 
of any heading 

£q 

HS heading 
No. 

Description of product 

Working or processing carried out on non-originating 
materials that confers originating status 

(2) 

(3) 

ex 2104 

Soups and broths and 
preparations therefor 

2106 

Food preparations not 
elsewhere specified or 
indndcd 

ex Chapter 22  Beverages, spirits and 

vinegar; except  for: 

2202 

2208 

Waters, including 
mineral waters and 
aerated waters, 
containing added sugar or 
other sweetening matter 
or flavoured, and other 
KXMÙcoholic beverages, 
not iretorting finit or 
vegetable juices of 
heading No 2009 

TJndenatured ethyl 
alcohol of an alcoholic 
strength by volume of less 
than 80% vol; spirits, 
liqueurs and other 
spirituous beverages 

Manufacture from materials 
of any heading except 
prepared or preserved 
vegetables of heading Nos 
2002 to 2005 

Manufacture in which: 
-  all the materials used are 
classified within a heading 
other than that of the 
product; 
-  the value of any materials 
of Chapter 17 used does not 
exceed 30% of the ex-works 
price of the product 

Manufacture in which. 
-  all the materials used are 
classified within a heading 
other than that of the 
product; 
-  all the grapes or any 
material derived from 
grapes used must be wholly 
obtained 

Manufacture in which: 
-  all the materials used are 
classified within a heading 
other than that of the 
product; 
-  the value of any materials 
of Chapter 17 used does not 
exceed 30% of the ex-works 
price of the product; 
-  any fruit juice used 
(except for pineapple, lime 
and grapefruit juices) must 
already be originating 

Manufacture: 
-  from materials not 
classified within heading 
Nos 2207 or 2208, 
-  in which all the grapes or 
any material derived from 
grapes used must be wholly 
obtained or if all the other 
materials used are already 
originating, arrack may be 
used up to a limit of 5% by 
volume 

6<T 

HS heading 
No. 

Description of product 

Working or processing carried out on non-originating 
materials that confers originating status 

(1) 

(2) 

(3) 

ex Chapter 23 

Residues and waste  from 
the food industries; 
prepared ammal fodder, 
except for. 

ex 2301 

ex 2303 

ex 2306 

Whale meal; flours, 
meals and pellets offish 
or of crustaceans, 
molluscs or other aquatic 
invertebrates, unfit for 
human œnsumption 

Residues from the 
manufacture of starch 
from maize (excluding 
concentrated steeping 
humors), of a protein 
content, calculated on the 
dry product, exceeding 
40% by weight 

Oil cake and other solid 
residues resulting from 
the extraction of olive oil, 
containing more than 3% 
of olive oil 

2309 

Preparations of a kind 
used m animal feeding 

xx  Chapter 24  Tobacco and 

manufactured tobacco 
substitutes; except for: 

2402 

Cigars, cheroots, 
cigarillos and cigarettes, 
of tobacco or of tobacco 
substitutes 

ex 2403 

Smoking tobacco 

Manufacture in which all 
the materials used are 
classified  within a heading 
other than that of the 
product 

Manufacture in which all 
the materials of Chapters 2 
and 3 used must be wholly 
obtained 

Manufacture in which all 
the maize used must be 
wholly obtained 

Manufacture in which all 
the olives used must be 
wholly obtained 

Maimfacture in which: 
-  all the cereals, sugar or 
molasses, meat or milk used 
must already be originating; 
-  all the materials of 
Chapter 3 used must be 
wholly obtained 

Maimfacture in which all 
the materials of Chapter 24 
used must be wholly 
obtained 

Manufacture in which at 
least 70% by weight of the 
unmanufactured tobacco or 
tobacco refuse of heading 
No 2401 used must already 
be originating 

Manufacture in which at 
least 70% by weight of the 
unmanufactured tobacco or 
tobacco refuse of heading 
No 2401 used must already 
be  originating 

6£ 

H S No 

Description  of  p r o d u ct 

01 

v± 

Working or  processing  earned 
out on  noo-origjnating 
materials that  confers 
originating status 
0) 

ex 2504 

ex 2515 

ex 2516 

Natural crystalline graphite, with 
enriched carbon content,  purified 
and  ground 

Enriching of the carbon content, 
rxirifying and grinding of crude 
crystalline graphite 

Marble, merely cut by sawing or 
otherwise into blocks or slabs of a 
rectangular (including  square) 
shape, of a thickness not  exceeding 
25 cm 

Granite, porphyry, basalt, 
sandstone and other  monumental 
and building stone, merely cut by 
sawing or otherwise, into blocks or 
slabs of a  rectangular  (including 
square) shape, of a thickness not 
exceeding 25 cm 

Cutting, by sawing or otherwise, of 
marble (even if already sawn) of a 
thickness exceeding 25 cm 

Cutting, by sawing or otherwise, of 
stones (even if already sawn) of a 
thickness exceeding 25 cm 

ex 2518 

Calcined  dolomite 

Calcination of dolomite not 
calcined 

ex 2519 

Crushed natural  magnesium 
carbonate (magnesite),  in 
hermetically sealed cx>ntainers, and 
magnesium oxide, whether or note 
pure, other than fused  magnesia or 
dead burned  (sintered)  magnesia 

Manufacture in which all the 
materials used are classified  within 
a heading other than that of the 
product  However, natural 
magnesium carbonate (magnesite) 
may be used 

ex 2520 

Plasters specially  prepared  for 
dentistry 

Manufacture in which the value of 
all the materials used docs not 
exceed 50% of the ex-works price 
of the product 

6f 

HSNo 

Description  of  p r o d u ct 

ill 
ex 2524 

SZL 

Natural asbestos fibres 

Working  or processing  carried 
out  on  non-originating 
materials  that  confers 
originating status 
J21 

Manufacture from asbestos 
concentrate 

ex 2525 

Mica powder 

Grinding of mica or mica waste 

ex 2530 

ex 2707' 

ex 2709 

2710 

Earth colours, calcined  or 
powdered 

Calcination or grinding of earth 
colours 

Oils in which the weight of the 
aromatic constituents exceeds that 
of the non-aromatic œnsthnents, 
being oils similar to mineral oils 
obtained by distillation of high 
temperature coal tar, of which  more 
than 65% by volume distils at a 
temperature of up to 250CC 
(including mixtures of petroleum 
spirit and benzole), for use as 
power or heating  fuels 

Operations of refining and/or one 
or more specific proccss(cs) in 
accordance with Appendix  1 .*• 

or 

Other operations in which all the 
materials used arc classified  within 
a heading other than that of the 
product  However, materials 
classified within the same heading 
may be used provided their value 
does not exceed 50% of the ex-
works price of the product 

Crude oils obtained  from 
bituminous minerals 

Destructive distillation of 
bituminous materials 

Petroleum oils and oils obtained 
from bituminous materials, other 
than crude; preparations not 
elsewhere specified  or  included, 
containing by weight  70% or more 
of petroleum oils or of oils obtained 
from bituminous materials, these 
oils being the basic constituents of 
the preparations 

Operations of refining and/or one 
or more specific processfes) in 
accordance with Appendix  2? 

or 

Other operations in which all  the 
materials used are classified  within 
a  heading other than that of the 
product  However, materials 
classified within the same heading 
may be used provided their value 
does not exceed 50% of the ex-
works price of the product 

1  For the special conditions relating  to "specific processes" see Introductory Notes 8.1 and  8.3 
2For the special conditions relating to "specific  processes'' see Introductory Note 8.2 

e% 

HS  No 

Description  of  product 

Working  or  processing  carried 
out  on  non-originating 
materials that  confers 
originating  status 

2711 

Petroleum gases and other gaseous 
hydrocarbons 

Operations of refining and/or one 
or more specific process(es) in 
accordance with Appendix 2. * 

2712 

Petroleum jelly, paraffin  waxr 
microcrystalline petroleum wax, 
slack wax, ozokerite, lignite wax, 
peat wax, other mineral waxes and 
similar products obtained by 
synthesis or by other processes, 
whether or not  coloured 

or 

Other operations in which all the 
materials used are classified  within 
a  heading other than that of (lie 
product  However, materials 
classified within the same heading 
may be used provided their value 
does not exceed 50% of the ex-
works price of the product 

Operations of refining and/or one 
or more specific processes) in 
accordance with Appendix 2. ' 

or 

Other operations in which all the 
materials used are classified  within 
a  heading other than that of the 
product.  However, materials 
classified within the same heading 
may be used provided their value 
does not exceed 50% of the ex-
works price of the product 

1  For the special condiuons relating to "specific processes" sec Introductory Note 8.2 
2. For the special conditions relating to "specific processes" see Iniroduaon' Notes 8.1 and  8.3 

63 

HSNo 

Description of product 

Working or processing carried 
out on non-origjnaring 
materials that  confers' 
originating status 
(?) 

Hi 

2713 

£1 

Petroleum coke, petroleum bitumen 
and other residues of petroleum oils 
or of oils obtained from  bituminous 
materials 

Operations of refining and/or one 
or more specific process(es)  in 
accordance with Appendix  l .2 

2714 

Bitumen and asphalt,  natural: 
bituminous or oil shale and  tar 
sands; asplialtiies and  asphaltic 
rocks 

or 

Other operations in which all  the 
materials used arc classified  within 
a heading other than that of the 
product  However, materials 
classified within the same heading 
may be used provided their value 
docs not exceed 50% of the ex-
works price of the product 

Operations of refining and/or one 
or more specific processes) in 
accordance with Appendix  1. * 

or 

Other operations in which all the 
materials used are classified  within 
a heading other than that of the 
product.  However, materials 
classified  within the same heading 
may be used provided their value 
does not exceed 50% of the ex-
works price of the product 

1. For the special  conditions  relating to  "specific  processes" sec Iniroduciory Notes 8.1 and  8.3 

^ 

H S No 

Description  of  product 

Working  or processing  earned 
out  on  non-originating 
materials that  confers 
originating status 
(?) 

(!) 

2715 

<2± 

Bituminous mixtures based on 
natural asphalt, on  natural 
bitumen, on petroleum bitumen, on 
mineral tar or on mineral tar pitch 

Operations of refining and/or one 
or more specific process(es) in 
accordance with Appendix 1.* 

or 

Other operations in which all the 
materials used are classified within 
a heading other than that of the 
product  However, materials 
classified within the same heading 
maybe used provided their value 
does not exceed 50% of the ex-
works price of the product 

Manufacture in which all the 
materials used arc classified  within 
a heading other than that of the 
product.  Howe\*er, materials 
classified within the same heading 
may be used provided their value 
does not exceed 20% of the ex-
works price of the product 

ex Chapter 28 

Inorganic chemicals: organic or 
inorganic compounds or precious 
metals, of rare-earth metals, of 
radioactive elements or of isotopes; 
except for headings Nos ex 2811 
and ex 2833 for which the rules are 
set out below 

ex 2811 

Sulphur  trioxide 

Manufacture from sulphur dioxide 

ex 2833 

Aluminium  sulphate 

ex Chapter 29 

Organic chemicals; except  for 
heading Nos ex2901, ex2902, 
ex2905, 2915, ex 2932,2933 and 
2934, for which  the rules are set 
out below: 

Manufacture in which the value of 
all the materials used does not 
exceed 50% of the ex-works price 
of the product 

Manufacture in which all the 
materials used are classified  within 
a heading other than that of the 
product  However, materials 
classified within the same heading 
may be used provided their value 
does not exceed 20% of the ex-
works price of the product 

VM 

H S No 

Description  of  p r o d u ct 

i ll 

ex 2901 

(2) 

Acyclic hydrocarbons for use as 
power or heating  fuels 

Working  or  processing  carried 
out  on  non-originating 
materials  that  confers 
originating  status 
SSL 

Operations of refining and/or one 
or more specific process(es) in 
accordance with Appendix  1J 

or 
Other operations in which all the 
materials used are classified  within 
a  heading other than that of the 
product  However, materials 
classified within the same heading 
may be used provided their value 
does not exceed 50% of the ex-
works price of the product 

ex 2902 

Cycianes and cyclenes (other  than 
azulcncs). benzene, toluene, 
xylenes, for  use as power or  heating 
fuels 

Operations of refining and/or one 
or more specific proccss(cs) in 
accordance with Appendix  1. ' 

or 

Other operations in which all the 
materials used are classified  within 
a  heading other than that of tile 
product  However, materials 
classified  within the same heading 
may be used, provided their value 
does not exceed 50% of the ex-
works price of the product 

Manufacture from  materials of any 
heading, including other materials 
of heading No. 2905.  However, 
metal alcoholates of this heading 
may be used, provided their value 
does not exceed 20% of the ex-
works price of the product 

ex 2905 

Metal alcoholates of alcohols of 
this heading and of elhanol  or 
glycerol 

2915 

Saturated  acyclic  monocarboxylic 
acids and their anhydrides, halides, 
peroxides and peroxyacids;  their 
halogenated,  sulphonated,  nitrated 
or nilrosated  derivatives 

Manufacture from  materials of any 
heading.  However, the value of all 
the materials of headings Nos 
2915 and 2916 used may not 
exceed 20% of the ex-works price 
of the product 

1  For the special conditions Telaung to  "specific  processes" sec Introductory Notes 8.1  and  8.3 
1 For ihe special conditions relating to  "specific  processes" sec Iniroduaon* Notes 8.1  and  8.3 

r^L 

HS  No 

Description  of  product 

Working  or  processing  carried 

out  on  non-originating 
materials  that  confers 
originating  status 
0) 
1 

Manufacture from materials of any 
heading  However, the value of all 
the materials of heading N°2909 
used may not exceed 20% of the 
ex-works price of the product 

Manufacture  from materials of any 
heading 

Manufacture from materials of any 
heading.  However, the value of all 
the materials of headings Nos. 
2932 and 2933 used may not 
exceed 20% of the ex-works price 
of the product 

Manufacture from materials of any 
heading.  However, the value of all 
the materials of headings Nos. 
2932,2933 and 2934 used may not 
exceed 20% of the ex-works price 
of the product 

Manufacture in which all  the 
materials used are classified  within 
a heading other than that of the 
product.  However, materials 
classified  within the same heading 
may be used provided their value 
docs not exceed 20% of the ex-
works price of the product 

0)  1 

fi) 

ex 2932 

Internal ethers and their 
halogcnated, sulphonated, 
nitrated or nitrosaled derivatives 

-  Cyclic acetals and  internal 

hemiacetals and  their 
halogenated, sulphonated, 
nitrated or nitrosaled  derivatives 

2933 

Heterocyclic compounds with 
nitrogen heteroatora(s) only: 

2934 

Nucleic acids and their salts; other 
heterocyclic compounds 

ex Chapter 30 

Pharmaceutical  products; except 
for heading Nos 3002, 3003 and 
3004, for which the rules are set 
out below: 

3002 

Human blood; animal  blood 
prepared for  therapeutic, 
prophylactic or diagnostic uses; 
antisera and other blood  fractions 
and modified  immunological 
products, whether or not obtained 
by means of biotechnological 
processes; vaccines, toxins, cultures 
of micro-organisms (excluding 
yeasts) and  similar  products: 

^3 

HS  No 

Description  of  product 

Working  or  processing  carried 

0) 

I 

g) 

out  on  non-originating 
materials  that  confers 
originating  status 
0) 
I 

- Products consisting of two or 
more constituents which have 
been mixed together for 
therapeutic or prophylactic uses 
or unmixed products for these 
uses, put up in measured doses 
or in forms or packings for retail 
sale 

Manufacture from materials of any 
heading, including other materials 
of heading No. 3002.  The 
materials of this description  may 
also be used, provided their value 
does not exceed 20% of the ex-
works price of the product 

-Other: 

— human blood 

animal blood prepared  for 
therapeutic or prophylactic 
uses 

blood fractions  other than 
anlisera, haemoglobin  and 
serum  globulin 

haemoglobin, blood  globulin 
and serum  globulin 

Manufacture from materials of any 
heading, including other  materials 
of heading No. 3002.  The 
materials of this description  may 
also be uscd7 provided their value 
does not exceed 20% of the cx-
works price of the product 

Manufacture from materials of an}* 
heading, including other materials 
of heading No. 3002.  The 
materials of this description  may 
also be used, provided their value 
does not exceed 20% of the ex-
works price of the product 

Manufacture from materials of any 
heading, including other  materials 
of heading No. 3002.  The 
materials of this description  may 
also be used, provided their value 
does not exceed 20% of the ex-
works price of the product 

Manufacture from materials of any 
heading, including other materials 
of heading No. 3002.  The 
materials of this description  may 
also be used, provided their value 
does not exceed 20% of the ex-
works pnee of the product 

Vw 

HSNo 

Description of product 

Hi 

J2l 

— other 

3003 and 
3004 

Medicaments (excluding goods of 
heading Nos. 3002, 3005 and 
3006) 

ex Chapter 31 

Fertilizers; cxcept.for heading Nos 
ex 3103 and ex3105, for which the 
rules are set out below 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
SSL 

Manufacture from materials of any 
heading, mdnding other materials 
of heading No. 3002.  The 
materials of this description may 
also be used, provided their value 
àoes not exceed 20% of the ex-
works price of the product 

Manufacture in which: 

-  all the materials used are 
classified within a heading other 
than that of the product  However, 
materials of heading No 3003 or 
3004 may be used provided  their 
value, taken together, docs not 
exceed 20% of the ex-works price 
of the product, and 

-  the value of all the materials used 
does not exceed 50% of the ex-
works price of the product 

Martufacture in which all the 
materials used are classified  within 
a heading other than that of the 
product  However, materials 
classified  within the same heading 
may be used provided their value 
does not exceed 20% of the ex-
works price of the product 

ex 3103  — 

Crushed and powdered  calcined 
natural aluminium  calcium 
phosphates 

Crushing and powdering of 
calcined natural aluminium 
calcium phosphates 

Y<: 

HSNo 

Description of product 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
£1 

SSL 

su 

ex 3105 

ex Chapter 32 

ex 3201 

3205 

Mineral or chemical  fertilizers 
containing two or three of the 
fertilizing elements nitrogen, 
phosphorus and potassium; other 
fertilizers; goods of this Chapter, in 
tablets or similar forms or in 
packages of a gross'weight not 
exceeding  10 kg, except  fon 

Manufacture in which: 
-  an the materials used are 
classified within a heading other 
than that of the product  However, 
materials classified within the same 
heading may be used provided  their 
value does not exceed 20% of the 
ex-works price of theproduct, 

-  sodium nitrate 
-  calcium cyanamide 
-  potassium sulphate 
-  magnesium potassium sulphate 

Tanning or dyeing extracts; tannins 
and their derivatives; dyes, 
pigments and other colouring 
matter; paints and varnishes; putty 
and other mastics; inks; except for 
heading Nos ex 3201 and 3205, for 
which the rules arc set out below 

and 

-  the value of all the materials used 
does not exceed 50% of the ex-
works price of the product 

Manufacture  in which all the 
materials used are classified  within 
a heading other than that of the 
product  However, materials 
classified within the same heading 
may be used provided their value 
does not exceed 20% of the ex-
works price of the product 

Tannins and their salts, esters, 
ethers, and other derivatives 

Manufacture from tanning extracts 
of vegetable origin 

Colour lakes; preparations as 
specified  in Note 3 to this Chapter 
based on colour  lakesw 

Manufacture from materials of any 
heading, except headings Nos. 
3202 and 3204 provided the value 
of any materials classified  in 
heading No 3205 does not exceed 
20% of the ex-works price of the 
product 

W  Note 3 to Chapter 32 says that  these preparationsare those of a kind used for colouring any material  or 
used as ingredients in the manufacturing  of colouring preparations, provided they are not  classified  in 
another heading in Chapter 32. 

¥6 

HS  No 

Description  of  product 

Working  or processing  carried 

out  on  non-originating 
materials  that  confers 
originating status 

Manufacture in which all the 
materials used are classified within 
a heading other than that of the 
product  However, materials 
classified within the same beading 
may be used provided their value 
does not exceed 20% of the ex-
works price of the product 

Manufacture from materials of any 
heading, including materials of a 
different  "group"^) in this 
heading.  However, materials of the 
same group may be used, provided 
their value does not exceed 20% of 
the ex-wbrks price of the product 

Manufacture in which all the 
materials used are classified  within 
a heading other than that of the 
product  However, materials 
classified  within the same heading 
may be used provided their value 
does not exceed 20% of the ex-
works price of the product 

ex Chapter 33 

Essential oils and  resinoids; 
perfumery, cosmetic or toilet 
preparations; except for  beading 
No ex 3301, for which the rule is 
set out below 

ex 3301 

ex Chapter 34 

Essential oils (terpeneless or not), 
including concretes and absolutes; 
resinoids; concentrates of essential 
oils in fats, in fixed oils, in waxes 
or the tike, obtained by enfleurage 
or maceration; terpenic by-products 
of the deterpenation of essential 
oils; aqueous distillates and 
aqueous solutions of essential oils 

Soap, organic  surface-active 
agents, washing preparations, 
lubricating preparations,  artificial 
waxes, prepared waxes, polishing 
or scouring preparations, candles 
and similar articles, modelling 
pastes, "dental waxes" and  dental 
preparations with a basis of plaster, 
except for  heading Nos ex3403 and 
3404, for which the rules are set 
out below 

( i)  A "group" is regarded  as any part  of the  heading separated  from  the rest by a semi-colon. 

w 

H S No 

Description  of  p r o d u ct 

ill 
ex 3403 

<2) 

Lobricating preparations 
containing petroleum oils or oils 
obtained from bituminous minerals, 
provided they  represent  less than 
70% by weight 

ex 3404 

Artificial  waxes and  prepared 
waxes: 

-  With a basis of  paraffin, 
petroleum  waxes, waxes  obtained 
from bituminous minerals, slack 
wax or scale wax 

-Other 

Working  or prc^cessmg  carried 
out  on  non-originating 
materials that  confers 
originating status 
J21 

Operations of refining and/or one 
or more specific process(es) in 
accordance with Appendix 1.* 

or 

Other operations in which all the 
materials used are classified  within 
a  heading other than that of the 
product  However, materials 
classified within the same heading 
may be used provided their value 
does not exceed 50% of the ex-
works price of the product 

Manufacture in which all the 
materials used are classified  within 
a heading other than that of the 
product  However, materials 
classified within the same heading 
may be used provided their value 
docs not exceed 50% of the ex-
works price of the product 

Manufacture from materials of any 
heading, except: 
- hydrogenated oils having tlie 

character of waxes of heading No. 
1516 

- fatty acids not chemically defined 
or industrial fatty alcohols having 
the character of waxes of heading 
No. 3823 

- materials of heading No. 3404 

However, these materials may be 
used provided their value does not 
exceed 20% of the ex-works price 
of the product 

For the special conditions  relating  to "specific  processes" see Introductory Notes 8.1  and  8.3 

W 

H S No 

Description  of  product 

ill 

ex Chapter 35 

£L 

Albuminoidal substances; modified 
starches; glues; enzymes; except for 
beading Nos 3505 and ex 3507 for 
which the rules are sei out below 

Working  or  processing  carried 
out  on  non-originating 
materials that  confers 
originating  status 

m 

Manufacture m which all the 
materials used are classified vvithin 
a heading other than that of the 
product  However, materials 
classified  within the same heading 
may be used provided their value 
does not exceed 20% of the ex-
works price of the product 

3505 

Dextrins and other  modified 
starches (for example, 
pregelatinized or  esterified 
starches); glues based on starches, 
or on dextrins or other  modified 
starches: 

-  Starch ctlicrs and  esters 

-  Other 

ex 3507 

Prepared enzymes not elsewhere 
specified  or included 

Chapter 36 

Explosives; pyrotechnic products: 
matches; pyrophoric alloys; certain 
combustible preparations 

ex Chapter 37 

Photographic or  cinematographic 
goods; except for heading Nos 
3701, 3702 and 3704 for which the 
rules are out below 

& 

Manufacture  front  materials of any 
heading, including other materials 
of heading No. 3505 

Manufacture from materials of any 
heading, except those of heading 
No. 1108 

Manufacture in which the value of 
all the materials used docs not 
exceed 50% of the ex-works price 
of the product 

Manufacture in which all the 
materials used arc classified  within 
a heading other than that of the 
product.  However, materials 
classified  within the same heading 
may be used provided their value 
does not exceed 20% of the ex-
works price of the product 

Manufacture in which all the 
materials used are classified  within 
a heading other than that of the 
product  However, materials 
classified  within the same heading 
may be used provided their value 
docs not exceed 20% of the ex-
works price of the product 

H S No 

Description  of  product 

sn. 

3701 

3702 

3704 

J2L 

Photographic plates and film in the 
flat, sensitized, unexposed, of any 
material other than paper, 
paperboard or textiles; instant print 
film in the flat, sensitized, 
unexposed, whether or not in packs 

Photographic film in rolls, 
sensitized, unexposed, of any 
material other than paper, 
paperboard or textiles; instant print 
film in rolls, sensitized, unexposed 

Photographie plates, film  paper, 
paperboard and textiles, exposed 
but not developed 

ex Chapter  38 

Miscellaneous chemical products: 
except for heading Nos 3801, 
cx3803, CX3805, ex3806, ex3807, 
ex 3811, ex 3823 and 3824 for 
which the rules are set out below: 

Working  or  processing  carried 
out  on  non-originating 
materials that  confers 
originating  status 

m 

Manufa<2uremwhichallthe 
materials used are classified in  a 
heading other than beading No 
3702 

Manufacture in which all  the 
materials used are classified  within 
a  heading other than heading Nos. 
3701 or 3702 

Manufacture in which all  the 
materials used are classified  within 
a heading other than heading Nos. 
3701 to 3704 

Manufacture in which all the 
materials used are classified  within 
a  heading other than that of the 
product  However, materials 
classified within the same  heading 
may be used provided their value 
does not exceed 20% of the ex-
works price of the product 

ex 3801 

- Colloidal graphite in suspension 
in oil and semicolloidal graphite; 
carbonaceous pastes for electrodes 

Manufacture in which the value of 
all the materials used does not 
exceed 50 % of the ex-works price 
of the product 

- Graphite in paste form, being a 
mixture of more than 30% by 
weight of graphite with mineral 
oils 

Manufacture from  materials of any 
heading. However, the value of the 
materials of heading No. 3403 used 
must not exceed 20% of the ex-
works price of the product 

ex 3803 

Refined tall oil 

Refining of crude tall oil 

ex  3805 

Spirits of sulphate turpentine, 
purified 

Purification by distillation  or 
refining  of raw spirits of  sulphate 
turpentine 

ex 3806 

Ester gums 

Manufacture  from  resin  acids 

^o 

US  No 

Description  of  p r o d u ct 

o)  1 

g) 

Working  or  processing  carried 
out  on  non-originating 
materials  that  confers 
originating status 
I 
ffl 

ex 3807 

Wood pitch (wood tar pitch) 

Distillation of wood tar 

Manufacture in which the value of 
all the materials of heading No 
3811 used does not exceed 50% of 
the ex-works price of the product 
Manufacture from materials of any 
heading including fatty acids of 
heading No38.23 

Manufacture in which all the 
materials used are classified  within 
a heading other than that of the 
product.  However, materials 
classified  within the same heading 
may be used provided their value 
does not exceed 20% of the ex-
works price of the product 

ex 3811 

ex 3823 

3824 

Prepared additives for  lubricating 
oil, containing petroleum oils or 
oils obtained from  bituminous 
minerals 
Industrial fatty alcohols having the 

character of artificial  waxes 

- The following of beading No 
3824: 

-Prepared binders for  foundry 

moulds or cores based on  natural 
resinous  products 

—Naphthenic acids, their water 
insoluble salts and their esters 

—Sorbitol other than  that of 

heading No  2905 

—Petroleum sulphonates, 

excluding petroleum  sulphonates 
of alkali metals, of  ammonium 
or of ethanolamines; 
thiophenated  sulphonic adds of 
oils obtained from  bituminous 
minerals, and  their  salts 

—Ion exchangers 

—Getters for vacuum  lubes 

&4 

HS No 

Description of product 

Q) 

I 

Q) 

Working or processing carried 
out on non-originating 
materials that  confers 
originating status 
| 
(3) 

—Alkaline iron oxide for the 

purification  of gas 

—Ammoniacal gas liquors and 

spent oxide produced in coal gas 
purification 

—Sulphonaphthenic acids, their 
water insoluble salts and their 
csters 

—Fusel oil and DippeTs oil 

—Mixtures of salts having 

different  anions 

—Copying pastes with a  basis of 
gelatin, whether or not on a 
paper or textile backing 

-Other 

3901 to3915 

Plastics in primary forms,  waste, 
parings and  scrap, of plastic: 
-  Addition  homopolymerization 

products 

-  Other 

3916 to 3921 

Semi-maiiufactures of plastics: 

Manufacture in which the value of 
all the materials used does not 
exceed 50% of the ex-works price 
of the product 

Manufacture in which: 
-  the value of all the materials used 
does not exceed 50% of the ex-
works price of the product, and 
-  the value of any materials of 
Chapter 39 used does not exceed 
20% of the ex-works price of the 
product' 

Manufacture in which the value of 
the materials of Chapter 39 used 
does not exceed 20% of the ex-
works price of the product^ 

1  In the case of the products composed  of materials classified  within both heading Nos. 3901  to  3906,  on 
the one hand, and  within  heading Nos. 3907 to 3911, on the other hand, this restriction  only applies  to 
that group of materials wliich predominates by weiglit  in the produa. 

%9L 

H S No 

Description  of  product 

ill 

<2± 

-  Flat products, further  worked 

than only surfaccHwoiked or cut 
into forms other than  rectangles; 
other products, further  worked 
than only surface-worked 

-  Oilier: 

— Addition  homopolymerization 

products 

-  Other 

3922 to 3926 

Articles of plastics 

Working  or  processing  carried 
out  on  non-originating 
materials  that  confers 
originating  status 
121 

Mamifactnre in which the value of 
any materials of Chapter 39 used 
docs not exceed 50% of the ex-
works price of the product 

Manufacture in which: 
-  the. value of all the materials used 
does not exceed 50% of the ex-
works price of the product, and 
-  the value of any materials of 
Chapter 39 used docs not exceed 
20% of the ex-works price of the 
produce') 

Manufacture  in which llic value of 
any materials of Chapter 39 used 
does not exceed 20% of the ex-
works price of the product * 

Manufacture in which the value of 
all the materials used docs not 
exceed 50% of tiie ex-works price 
of the product 

ex 4001 

4005 

4012 

Laminated slabs or crepe rubber  for 
shoes 

Lamination of sheets of natural 
rubber 

Compounded  rubber,  unvulcanized, 
in primary forms or in plates, 
sheets or strip 

Manufacture  in which the value of 
all the materials used, except 
natural rubber, does not exceed 
50% of the ex-works price of the 
product 

Retreaded or used pneumatic tyres 
of rubber, solid or cushion tyres, 
interchangeable tyre treads and tyre 
flaps, of rubber 

Manufacture from materials of any 
heading, except those of heading 
Nos. 4011 or 4012 

(l)  In the case of the products composed  of materials classified  within both heading Nos  3901  to 3906, 
on the one hand, and within  heading Nos. 3907 to 3911, on the other hand, this restriction  only applies  to 
that  group of materials which  predominates by weight  in llic produa 

ti 

H S No 

Description  of  p r o d u ct 

ill 

m. 

Working  or  processing  carried 
out  on  non-originating 
materials that  confers 
originating status 

m 

ex 4017 

Articles of bard  robber 

Mamtfactnre from bard  robber 

ex 4102 

Raw skins of sheep or lambs, 
without wool on 

Removal of wool from sheep or 
lamb skins, with -wool on 

4104 to 4107 

Leather, without hair or wool, other 
than leather  of heading Nos. 4108 
or4109 

4109 

Patent leather and patent laminated 
leather; metallized  leather 

ex 4302 

Tanned or dressed  furskins, 
assembled: 

- Plates, crosses and similar forms 

Other 

Retanning of pre-tanned leather 
or 
Manufacture in which all the 
materials used are classified  within 
a heading other than that of the 
product 

Marunacture from leather of 
heading Nos. 4104 to 4107 
provided its value does not exceed 
50% of the ex-works price of the 
produa 

Bleaching or dyeing, in addition  to 
aming and assembly of non-
assembled tanned or dressed 
furskins 

Manufacture from non-assembled, 
tanned or dressed fiirskins 

4303 

Articles of apparel,  clothing 
accessories and other articles of 
furskin 

Manufacture from  non-assembled, 
tanned or dressed furskins, of 
heading No. 4302 

ex 4403 

Wood roughly  squared 

ex 4407 

Wood sawn or chipped  lengthwise, 
sliced or peeled, of a  thickness 
exceeding 6  ram,  planed, sanded or 
finger-jointed 

Manufacture from wood in  the 
rough, whether or not stripped of 
its bark or merely roughed  down 

Planing, sanding or  finger-jointing 

f>U 

Working  or  processing  carried 
out  on  non-originating 
materials that  confers 
originating status 
£1 

Spiking, planing, sanding or 
finger-jointing 

Sanding or  finger-jointing 

HSNo 

Description  of  product 

ill 

ex 4408 

ex 4409 

J21 

Veneer sheets and sheets for 
plywood, of a thickness not 
exceeding 6 mm, spliced, and other 
wood sawn lengthwise, sliced or 
peeled of a thickness not exceeding 
6  mm, planed, sanded or  finger-
jointed 

-  Wood (including strips and 
friezes for parquet flooring, not 
assembled) continuously shaped 
(tongued, grooved, rebated, 
(Aanucrcd, V-jointed, beaded, 
moulded, rounded or the like) 
along any of its edges or faces, 
sanded or  finger-jointed 

-  Beadings and  mouldings 

ex 4410 to 
ex 4413 

Bcadings and mouldings, including 
moulded skirting and other 
moulded boards 

Beading or moulding 

Beading or moulding 

ex 4415 

ex 4416 

Packing cases, boxes, craies, drums 
and similar packings, of wood 

Manufacture from boards not cut  to 
size 

Casks, barrels, vats, tubs and  other 
coopers' products and parts thereof, 
of wood 

Manufacture from riven staves, not 
further worked than sawn on the 
two principal  surfaces 

ex 4418 

- Builders' joinery and carpentry of 

wood 

Manufacture in which all the 
materials used are classified  within 
a heading other than that of the 
product  However, cellular wood 
panels, shingles and shakes may be 
used  • 

- Beadings and  mouldings 

Beading or moulding 

ex4421 

Match splints; ^vooden pegs or pins 
for  footwear 

Manufacture from  wood of any 
heading except drawn wood of 
heading No. 4409 

%£-

H S No 

Description  of  product 

Working or processing  carried 

«> 

1 

(2) 

4503 

Articles of natural cork 

out  on  non-originating 
materials that  confers 
originating status 
1 
O) 

MaTirrfactnre from cork of hearting 
No 4501 

ex 4811 

4S16 

4817 

Paper and paperboard, roled, lined 
or squared only 

Manufacture from paper-making 
materials of Chapter 47 

Carbon paper, self-copy paper and 
other copying or transfer papers 
(other than those of heading No. 
4809), duplicator stencils and  offset 
plates, of paper, whether or not put 
up in boxes 

Manufacture from paper-making 
materials of Chapter 47 

Envelopes, letter cards, plain 
postcards and  correspondence 
cards, of paper or  paperboard; 
boxes, pouches, wallets and  writing 
compendiums, of paper or 
paperboard, containing an 
assortment of paper  stationery 

Manufacturing in which: 
- all the materials used are 

classified within a heading other 
than that of the produa, and 

- the value of all the materials used 
docs not exceed 50% of the ex-
works price of the product 

ex 4818 

Toilet paper 

ex 4819 

Cartons, boxes, cases, bags and 
other packing containers, of paper, 
paperboard, cellulose wadding or 
webs of cellulose  fibres 

ex 4820 

Letter pads 

ex 4823 

Other paper, paperboard, cellulose 
wadding and webs of cellulose 
fibres, cut to size or  shape 

Maimfacture from  paper-making 
materials of Chapter 47 

Manufacture in which: 
-  all the materials used are 
classified whhin a heading otber 
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 

Manufacture in which the value of 
all the materials used does not 
exceed 50% of the ex-works price 
of the product 

Manufacture from paper-iriaking 
materials of Chapter 47 

^6 

HS  No 

Description  of  p r o d u ct 

Working  or  processing  carried 

Q) 

I 

<v 

4909 

Printed or illustrated postcards; 
printed cards bearing personal 
greetings, messages or 
annouxicemenls, whether or not 
illustrated, with or without 
envelopes or trimmings 

4910 

Calendars of any kind, printed, 
including calendaj blocks: 

- Calendars of the "perpetual" type 

or with replaceable blocks 
mounted on bases other than 
paper or paperboard 

-Other 

ex 5003 

Silk waste (including cocoons 
unsuitable for reeling, yarn waste 
and gametted stock), carded or 
combed 

5501 to 5507 

Man-made staple fibres 

ex Chapter 50 
to Chapter 55 

Yarn, monofilament  and thread 

out  on  non-originating 
materials  that  confers 
originating status 
ffl 
1 

Manufacture from materials not 
classified within heading Nos. 
4909 or 4911 

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 pnce of the produa 

Manufacture from materials not 
classified  in heading Nos. 4909 or 
4911 

Carding or combing of silk waste 

Manufacture from chemical 
materials or textile pulp 

Manufacture from  ' : 
-  natural fibres not carded or 

combed or otherwise processed 
for spinning, 

-  chemical materials or textile 

pulp, or 

-  paper-making materials 

ex Chapter 50 
to Chapter 55 

Woven fabrics: 

-  Incorporating rubber thread 

Manufacture from single yarn * 

1  For special conditions relating to products  made of a mixture of textile materials, see Introductory  Note 
6 

%Y 

H S No 

D e s c r i p t i on  of  p r o d u ct 

ill 

£L 

-  Other 

Working or  processing  carried 
out  on  non-originating 
materials  that  confers 
originating status 
JS1 
Manufacture  from1: 
-  coir yam, 
-  natural  fibres, 
-  man-made staple fibres not 

carded or combed or otherwise 
processed for spinning, 

-  chemical materials or textile 

pulp, or 

-  paper 

or 

Printing accompanied by at least a 
finishing operation (such as 
scouring, bleaching, mercerizing, 
heat setting, raising, calendering, 
shrink resistance processing, 
permanent finishing, decatizing, 
impregnating, mending and 
burling) where the value of the 
imprinted fabric used does not 
exceed 47.5% of the ex-works price 
of the product 

ex Chapter 56 

Wadding, felt and  non-wovens; 
special yarns; twine, cordage, ropes 
and cables and articles thereof, 
except for heading Nos 5602, 5604, 
5605 and  5606, for which the rules 
are set out  below 

Manufacture from* : 
-  coiryarn, 
-  natural  fibres, 
-  chemical materials or textile 

pulp, or 

-  paper malting materials 

5602 

Felt, whether or not  impregnated, 
coated, covered or  laminated: 

-  Needleloom  felt 

Manufacture from  *: 
-  natural fibres, 
-  chemical materials or textile pulp 

% 

HSNo 

Description  of  product 

m. 

£1 

-  Other 

5604 

Rubber thread and cord, textile 
covered; textile yarn, and strip and 
the like of heading No. 5404 of 
5405, impregnated, coated, covered 
or sheathed with rubber or plastics: 

-  Rubber thread and cord, textile 

covered 

-  Other 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
SSL 

However: 
-  polypiopylene filament of 

heading No. 5402, 

-  polypiopylene fibres of heading 

No. 5503 or 5506 or 

-  polypropylene filament tow of 

heading No. 5501, 

of which the derjornination in all 
cases of a single filament or fibre is 
kss than 9 dedtex may be used 
provided their value does not 
exceed 40% of the ex-works price 
of the product 

Manufacture fronr : 
-  natural fibres, 
-  man-made staple fibres made 

from casein, or 

-  chemical materials or textile pulp 

Manufacture from rubber thread  or 
cord, not textile covered 

Manufacture from * : 
-  natural fibres not carded or 

combed or otherwise processed 
for spinning, 

-  chemical materials or textile 

pulp, or 

-  paper-making materials 

For special conditions relating to products  made of a mixture of textile materials, see Introductory Note 

< < *> 

HSNo 

Description  of  p r o d u ct 

Working  or  processing  carried 
out  on  non-originating 
materials that  confers 
originating  status 

i ll 

5605 

5606 

SSL 

_2_ 

Metallized yarn, whether or not 
gimped, being textile yarn, or strip 
or the like of heading No 5404 or 
5405, combined with metal in  the 
form of thread, strip or powder or 
covered with  metal 

Manufacture from  . 
-  natural  fibres, 
-  man-made staple fibres not 

carded or combed or otherwise 
processed for spinning, 

-  chemical materials or textile 

Gimped yarn, and strip and the like 
of beading No. 5404 or 5405  , 
gimped (other than those of 
heading No. 5605 and  gimped 
horsehair yarn); chenille yarn 
(including flock  chenille yarn); 
loop wale-yarn 

pulp, or 

-  paper-making materials 

Manufacture from* : 
-  natural fibres, 
-  man-made staple fibres not 

carded or combed or otherwise 
processed for spinning, 

-  chemical materials or textile 

pulp, or 

-  paper-making materials 

Chapter 57 

Carpels and  other textile  floor 
coverings: 

-  Of needleloom  felt 

Manufacture from* : 
-  natural fibres, or 
-  chemical materials or textile pulp 

However: 

-  polypropylene filament of 

heading No. 5402, 

-  polypropylene fibres of heading 

No. 5503 or 5506 or 

-  polypropylene filament tow of 

heading No. 5501, 

of which the denomination in all 

cases of a single filament or  fibre 
is less than 9 dechex may be used 
provided their value does not 
exceed 40% of the ex-works price 
of the product 

1  For special conditions relating to products made of a mixture of textile materials, see Introductory  Note 
6 

^O 

HSNo 

Description  of  product 

SSL 

S2L 

-  Of other  felt 

-  Other 

Working  or processing  carried 
out  on  non-originating 
materials that  confers 
originating status 
S2L 

Maimfactnrefroar: 
-  natural fibres not carded or 

combed or otherwise processed 
for spinning, or 

-  chemical materials or textile pulp 

Manufacture from ' : 
-  coiryam, 
-  synthetic or artificial  filament 

yarn, 
-  natural fibres, or 
-  maii-made staple fibres not 

carded or combed or otherwise 
processed for spinning 

ex Chapter 58  Special woven  fabrics; tufted  textile 
fabrics',  lace; tapestries; trmimings; 
embroidery; except for  heading 
Nos 5805 and  5810; the rule for 
heading No 5810 is set out below: 

-  Combined with rubber thread 

Manufacture from single yarn 

-  Other 

Manufacture from1 : 
-  natural  fibres, 
-  man-made staple fibres not 

carded or combed or otherwise 
processed for spinning, or 
-  chemical materials or textile 

pulp, 

For special conditions relating to products made of a mixture of textile materials, see Introductory' Note 

<M 

HSNo 

Description  of  p r o d u ct 

iii 

S2L 

Working or  processing  carried 
out  on  non-originating 
materials that  confers 
originating  status 
S2L 

or 

Printing accompanied by at least a 
finishing operation (such as 
scouring, bleaching, m a c a i t i u g, 
heat setting, raising, calendering, 
shrink resistance processing, 
permanent finishing, decatizing, 
impregnating, mending and 
burling) where the value of the 
unprinted fabric used does not 
exceed 47.5% of the ex-works price 
of the product 

Manufacture in which the value of 
all the materials used does not 
exceed 50% of the ex-works price 
of the product 

Manufacture from yarn 

Embroidery in the piece, in strips 
or in  motifs 

Textile fabrics coated with gum or 
amylaceous substances, of a kind 
used for the outer covers of books 
or the like; tracing doth; prepared 
painting canvas; buckram and 
similar stiffened  textile fabrics of a 
kind used for hat  foundations 

i 

Tyre cord fabric of high tenacity 
yarn of nylon or other polyamides, 
polyesters or viscose rayon: 

5810 

5901 

5902 

5903 

-  containing not more than 90 % 
by weight of textile materials 

Manufacture from yarn 

-  Other 

Textue fabrics  impregnated, 
coated, covered or laminated  with 
plastics, other than those of 
heading No.  5902 

Manufacture from  chemical 
materials or textile pulp 

Manufacture from yarn 

<^3L 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
SSL 

Manufacture from yarn1 

HSNo 

Description of product 

Hi 

5904 

<2) 

linoleum, whether or note cut to 
shape; floor coverings consisting of 
a coating or covering applied on a 
textile backing, whether or not cut 
to shape 

5905 

Textile wall  coverings: 

-  Impregnated, coated, covered or 
Laminated with rubber, plastics or 
other materials 

Manufacture from yarn 

-  Other 

Manufacture from * : 
-  coiryarn, 
-  natural fibres, 
-  man-made staple fibres not 

carded or combed or otherwise 
processed for spinning, or 
-  chemical materials or textile 

pulp, 

or 

Printing accompanied by at least a 
finishing operation (such as 
scouring, bleaching, mercerizing, 
heat setting, raising, calendering, 
shrink resistance processing, 
permanent finishing, decatizing, 
impregnating, mending and 
burling) where the value of the 
imprinted fabric used does not 
exceed 47.5% of the ex-works price 
of the product 

5906 

Rubberized textile fabrics, other 
than those of heading No. 5902: 

1  For special conditions relating  to products made of a mixture of textile materials, sec Introductory  Note 

< * >•  J> 

HSNo 

Description of product 

iii 

S2L 

-  Knitted or crocheted fabrics 

-  Other fabrics  made of synthetic 
filament yarn, containing  more 
than 90% by weight of textile 
ptalrrials 

-  Other 

Textile fabrics  otherwise 
impregnated, coated or covered; 
painted  canvas being tlieatrical 
scenery, studio backcloths or the 
like 

5907 

Working or processing carried 
out on non-origniating 
materials that  confers 
originating status 
_21 

Manufacture from*: 
-  natural  fibres, 
-  man-made staple fibres  not 

carded or combed or otherwise 
processed for spinning, or 

-  chemical materials or textile pulp 

Manufacture from  chemical 
materials 

Manufacture from yam 

Manufacture from yarn 

ex 5908 

Incandescent gas mantles, 
impregnated 

Manufacture from tubular knitted 
gas mantle fabric 

5909 to 5911 

Textile articles of a kind suitable 
for industrial use: 

-  Polishing discs or  rings  other 
than of fell of heading No. 5911 

Manufacture from yarn or waste 
fabrics or rags of heading No. 6310 

-  Other 

Manufacture from * : 
-  coir yarn, 
-  natural fibres, 
-  man-made staple fibres not 

carded or combed or otherwise 
processed for spinning, or 

-  chemical materials or textile pulp 

1  For special conditions relating to products made of a mixture of textile materials, see Introductory  Note 
6 
1  For special  conditions relating lo products made of a mixture of textile materials, see Introductory  Note 
6 

<^4 

HSNo 

Description  of  product 

Hi 
Chapter 60 

SSL 

I Knitted or crocheted  fabrics 

Chapter 61 

Articles of apparel and  clothing 
accessories, knitted or crocheted: 

-  Obtained by sewing together or 
otherwise assembling, two or more 
pieces of knitted or crocheted  fabric 
which have been either cut to  form 
or obtained directly to form 

-  Other 

Articles of apparel and  clothing 
accessories, not knitted  or 
crocheted; except for heading  Nos 
cx6202, ex6204, ex 6206, ex6209, 
ex6210,6213,6214,ex6216 and ex 
6217 for which the rules are set out 
below: 

Women's, girls' and babies' 
clothing and 'other made-up 
clouting accessories,, embroidered 

ex Chapter 62 

ex 6202, 
ex 6204, 
ex 6206, 
ex 6209and ex 
6217 

Working or  processing  carried 
out  on  non-originating 
materials that  confers 
originating status 
SSL 

Manufacture from*  : 
-  natural  fibres, 
-  man-made staple fibres not 
carded or combed or otherwise 
processed for spinning, or 
-  chemical materials or textile pulp 

Manufacture from yarn 2 

Manufacture from *•  : 
-  natural  fibres. 
-  man-made staple fibres not 
carded or combed or otherwise 
processed for spinning, or 
-  chemical materials or textile pulp 

Manufacture from yarn^ 

Manufacture from yarn1 
or 
Marurfacture from unembroidered 
fabric provided the value of the 
unembroidered fabric used does not 
exceed 40% of the ex-works price 
of the product * 

1  For special conditions relating to products  made of a mixture of textile materials, see Introductory Note 
6 
2  See Introductory Note 7 for the treatment  of textile trimmings and accessories 

(2)  Sec Introductory Note 7 for  the treatment  of textile trimmings and accessories 

^^ 

HSNo 

Description of product 

SSL 

S2L 

cx6210 
ex 6216 and 
CX6217 

Fire-resistant eqnipmenl of fabric 
covered with foil of aluminized 
polyester 

6213 and 
6214 

Handkerchiefs, shawls, scarves, 
mufflers, mantillas, veils and the 
like: 
-  Embroidered 

-  Other 

6301 to 6304 

Blankets, travelling rugs, bed linen 
etc; curtains etc.; other furnishing 
articles: 

Working or processing carried 
out on nor*<)rigjnatiiig 
materials that confers 
originating status 
J2L 

Manufacture from yarn v* J 
or 
Manrffâctnrefromtrncoatcd fabric 
provided the value of the tmcoated 
fabric used does not exceed 40% of 
the ex-works price of the 
product(l) 

Manufacture from unbleached 
single yarn(l)v2) 
or 
Manufacture from unembroidered 
fabric provided the value of the 
unembroidered fabric used does not 
exceed 40% of the ex-works price 
of theproduct(l) 

Manufacture from unbleached 
singJeyarn(lX2) 

Of felt, of non-wovens 

Other: 

Manufacture from^) 
-  natural fibres, or 
-  chemical materials or textile pulp 

M  For special conditions relating to products made of a mixture of textile materials , se Introductory  Note 
6. 
( 
<2)  See Introductory Note 7 for  the treatment  of textile trimmings and accessories 

**6 

HSNo 

I Description of product 

Q) 

1 

; 

<a 

— Embroidered 

-  Other 

6305 

Sacks and bags, of a kind used for 
the packing of goods 

6306 

Tarpaulins, sails for boats, 
s?ûboards or landcraft, awnings, 
sunblinds, tents and camping 
goods: 

-  Ofnon-wovens 

-  Other 

6307 

Other made-up articles, including 
dress patterns 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
0) 
I 

Manufacture from unbleached 
single yarn$) 
or 
Manufacture from unembroidered 
fabric (other than knitted or 
crocheted) provided the value of 
the unembroidered fabric used does 
not exceed 40% of the ex-works 
price of the product 

Manufacture from unbleached 
single yam* 

Manufacture from* : 
-  natural  fibres, 
-  man-made staple fibres  not 

carded or combed or otherwise 
processed for spinning, or 

-  chemical materials or textile pulp 

Manufacture from* : 
-  natural fibres, or 
-  chemical materials or textile pulp 

Manufacture from unbleached 
single yarn' 

Manufacture in which the value of 
all the materials used does not 
exceed 40%  of the ex-works price 
of the product 

6308 

Sets consisting of woven fabric and 
yarn^ whether or not with 
accessories, for making up into 
rugs, tapestries, embroidered  table 
cloths or serviettes or similar 
textile articles, put up in packings 
for  retail  sale 

Each item in the set must  satisfy 
the rule which would apply to it if 
it were not included in the set. 
However, non^riginating articles 
may be incorporated provided  their 
total value does not exceed  15% of 
the ex-works price of the set 

^Y 

H S No 

Description  of  p r o d u ct 

Working  or  processing  carried 

(1) 

I 

g) 

6401 to 6405 

Footwear 

out  on  non-originating 
materials that  confers 
originating  status 
0) 
I 

Manufacture from matenals of any 
heading except for assemblies of 
uppers affixed to inner soles or to 
other sole components of heading 
No. 6406 

Manufacture from yarn or textile 
fibres1 

Manufacture from yarn or textile 
fibres' 

Felt hats and other felt  headgear, 
made from the hat bodies, hoods or 
plateaux of heading No. 6501, 
whether or not  lined or trimmed 

Hats and other headgear, knitted or 
crocheted, or made up from lace, 
felt or other textile fabric, in the 
piece (but not in strips), whether or 
not lined  or trimmed; hair-nets of 
any material, whether or not lined 
or trimmed 

Umbrellas and sun  umbrellas 
(including walking-stick umbrellas, 
garden umbrellas and  similar 
umbrellas) 

Manufacture in which the value of 
all the materials used does not 
exceed 50% of the ex-works price 
of the produa 

Articles of slate or of agglomerated 
slate 
Articles of asbestos or of mixtures 
with a basis of asbestos or with a 
basis of asbestos and  magnesium 
carbonate 

Articles of mica,  including 
agglomerated  or  reconstituted 
mica, on a support of paper, 
paperboard or other materials 

Manufacture from worked slate 

Manufactured from fabricated 
asbestos fibres or from mixtures 
with a basis of asbestos or with a 
basis of asbestos and  magnesium 
carbonate 

Manufacture from worked mica 
(including agglomerated or 
reconstituted mica) 

Glass with a non-reflecting  layer 

Manufacture from materials of 
heading No. 7001 

6503 

6505 

6601 

ex 6803 

ex 6812 

ex 6814 

ex 7003 
ex 7004 
ex 7005 

See Introductory Note 7 for the treatment  of textile trimmings and accessories. 

^S 

HSNo 

Description  of  product 

0) 

7006 

SSL 

CHass of heading No. 7003,7004 or 
7005, bent, edge-worieed, engraved, 
drilled, enamelled or otherwise 
worked, but not framed or  fitted 
with other  materials 

Working  or processing  earned 
out  on  non-origjnating 
materials  that  confers 
originating status 
SSL 

Mamrfactnre from materials of 
heading No. 7001 

7007 

7008 

7009 

7010 

7013 

Safety glass, consisting of 
toughened (tempered) or laminated 
glass 

Manufacture from materials of 
heading No. 7001 

Multiple-Availed insulating units of 
glass 

Manufacture from materials of 
heading No. 7001 

Glass mirrors, whether or not 
framed, including  rear-view 
mirrors 

Manufacture from materials of 
heading No. 7001 

Carboys, bottles, flasks, jars, pots, 
phials, ampoules and  other 
containers, of glass, of a kind used 
for the conveyance or packing of 
goods; preserving jars of glass; 
stoppers, lids and other closures, of 
glass 

Glassware of a kind used  for table, 
kitchen, toilet, office,  indoor 
decoration or similar  purposes 
(other than lliat of heading No. 
7010 or 7018) 

Manufacture in which all the 
materials used are classified  within 
a heading other than that of the 
produa 

or 

Cutting of glassware, provided tiie 
value of the uncut glassware does 
not exceed 50% of the ex-works 
price of the produa 

Manufaaurc in which all the 
materials used arc classified  within 
a  heading other than that of the 
produa 
or 
Cutting of glassware, provided the 
value of the uncut glassware does 
not exceed 50% of the ex-works 
price of the produa 
or 
Hand-decoration (with the 
exception of silk-screen printing) of 
hand-blown glassware, provided 
the value of the hand-blown 
glassware does not exceed  50% of 
the ex-works price of the product 

^ 

HS  No 

Description  of product 

Working  or processing  carried 

f» 

I 

<2> 

ex 7019 

Articles (other than yarn) of glass 
fibres 

ex 7101 

Natural or cultured pearls, graded 
and temporarily strung for 
convenience of transport 

out  on  non-originating 
materials that  confers 
originating status 
I 

<3> 

Manufacture from: 
•  uncolourcd stivers, iovings, yarn 
or chopped strands, or 
-glass wool 

Manufacture in which the value of 
all the materials used does not 
exceed 50% of the ex-works price 
of the produa 

ex 7102, 
ex 7103 and 
ex 7104 

Worked precious or semi-precious 
stones (natural, synthetic or 
reconstructed) 

Manufacture from unworked 
precious or semi-prccioas stones 

7106.7108 
and 7110 

Precious metals: 

-  Unwrought 

Manufaaure from materials not 
classified within heading No. 7106, 
7108 or 7110 
or 
Electrolytic, thermal or chemical 
separation of precious metals of 
heading No. 7106,7108 or 7110 
or 
Alloying of precious metals of 
heading No. 7106,7108 or 7110 
with each other or with base metals 

-  Semi-manufactured  or in powder 

form 

Manufacture from  unwrought 
precious metals 

ex 7107, 
ex 7109 and 
ex 7111 
7116 

Metals clad with precious metals, 
semi-manufactured 

Manufaaure from metals dad  with 
precious metals, unwrought 

Articles of natural or cultured 
pearls, precious or semi-precious 
stones (natural, synthetic or 
reconstructed) 

Manufacture in which the value of 
all the materials used does not 
exceed 50% of the ex-works price 
of the produa 

7117 

Imitation jewellery 

Manufaaure in which all the 
materials used are classified  within 
a heading other than that of the 
produa 
or 

^ f J DO 

HSNo 

I Description of product 

0) 

I 

g) 

7207 

Semi-finished  products of iron or 
non-^alloy steel 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
| 
(3) 

Manufacture from base metal parts, 
not plated or covered with precious 
metals, provided the vainc of all the 
materials used does not exceed 
50% of the ex-works price of the 
produa 

Manufaaure from materials of 
heading No. 7201,7202,7203, 
7204 or 7205 

7208 to 7216 

Flat rolled products, bars and rods, 
angles, shapes and sections of iron 
or non-alloy steel 

Manufacture from ingots or other 
primary forms of heading No. 7206 

7217 

Wire of iron or non-alloy steel 

ex 7218, 7219 
to 7222 

Semi-finished  products, flat  rolled 
products, bars and rods, angles, 
shapes and  sections of stainless 
steel 

7223 

Wire of stainless steel 

ex 7224, 7225 
to 7227 

Semi-finished  products, flat rolled 
products, bars and rods, in 
irregularly wound coils, of other 
alloy steel 

Manufacture from  semi-finished 
materials of heading No. 7207 

Manufacture from ingots or other 
primary forms of heading No. 7218 

Manufacture from semi-finished 
materials of heading No. 7218 

Manufaaure from ingots or otiicr 
primary forms of heading No. 7224 

ex 7227 

7228 

Semi-finished  products whose 
cross-sections is in the shape of 
"fiattended circles'' or  "modified 
rectangles" 
Other bars and rods of other alloy 
steel; angles, shapes and sections, 
of other alloy steel; hollow drill 
bars and  rods, of alloy or non-alloy 
steel 

Manufacture from  ingots or other 
primary forms of heading No. 
7206, 7218 or 7224 

Manufacture from ingots or other 
primary forms of heading No. 
7206.7218 or 7224 

7229 

Wire of other alloy steel 

ex 7301 

Sheet  piling 

Manufacture  from  semi-finished 
materials of heading No. 7224 

Manufaaure  from  materials of 
heading No. 7203 

^A0>^ 

HS  No 

Description  of  p r o d u ct 

Working  or processing  carried 

0) 

I 

(2) 

7302 

Railway or tramway  track 
construction materials of iron or 
steel, the following: rails, 
checkrafls and rack  rails,  switch 
blades, crossing frogs, point  rods 
and other crossing pieces, sleepers 
(cross-ties), fishplates, chairs, chair 
wedges, sole plates (base plates), 
rail dips, bedplates, ties and  other 
material specialized for jointing or 
fixing  rails 

7304, 7305 
and 7306 

Tubes, pipes and hollow profiles, of 
iron (other than cast  iron) or steel 

7308 

Structures (excluding  prefabricated 
buildings of heading No. 9406) and 
parts of structures (for  example, 
bridges and bridge-sections,  lock-
gates, lowers, lattice masts,  roofs, 
roofing frameworks,  doors and 
windows and their frames  and 
thresholds for doors, shutters, 
balustrades, pillars and columns), 
of iron or steel; plates, rods, angles, 
shapes, sections, tubes and the like, 
prepared for use in structures, of 
iron or steel 

ex 7315 

Skid  chains 

ex 7322 

Radiators for central  heating,  not 
electrically  heated 

ex Chapter 74 

Copper and  articles thereof; except 
for heading Nos 7401 to 7405; the 
rule for  heading No ex  7403  is set 
out  below 

out  on  non-originating 
materials  that  confers 
originating status 
0) 
I 

Manufacture from materials of 
heading No. 7206 

Manufacture from materials of 
heading No. 7206,7207,7218 or 
7224 
Manufaaure  in which all the 
materials used arc classified  within 
a  heading other tlian thai of llic 
produa.  However, welded angles, 
shapes and sections of heading No. 
7301 mav not be used 

Manufaaure  in which the value of 
all the materials of heading No. 
7315 used docs not exceed 50% of 
the ex-works price of the produa 

Manufacture in which the value of 
all the materials of heading No 
7322 used does not exceed 5 % of 
the ex-works price of the produa 

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 
docs not exceed 50% of the ex-
works price of ihe product 

/Aso% 

HS No 

Description of product 

0> 

1 

(2) 

ex 7403 

-  Copper alloys, unwrought 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
1 
(3) 

Manufacture from refined copper, 
un wi ought, or waste and scrap 

ex Chapter 75 

Nickel and articles thereof; except 
for heading Nos 7501 to 7503 : 

Manufacture in which: 
-  all the materials used are 

ex Chapter 76 

Aluminium and articles thereof, 
except for heading Nos 7601 and 
7602; the rule for heading No ex 
7601 is set out below: 

ex 7601 

Aluminium  alloys 

ex Chapter 78 

- <Supe^-pure, aluminium (ISO No 
Al 99.99) 
Lead and articles thereof; except 
for heading Nos 7801 and 7802; 
the rule for heading No 7801 is set 
out below: 

7801 

Urrwrought  lead: 

-  Refined  lead 

-  Other 

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 

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 
docs not exceed 50% of the ex-
works price of the produa 

Manufaaure from aluntinium, not 
alloyed, or waste and scrap 

Manufacture from aluminium, not 
alloyed (ISO No Al 99,8) 

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 produa 

Manufacture from "bullion" or 
"work" lead 
Manufacture in which all the 
materials used are classified  in a 
heading other than that of the 
produa.  However, waste and scrap 
of heading No. 7802 may not be 
used 

Aoi 

HSNo 

Description of product 

111 
ex Chapter 79 

SSL 

Zmc and articles thereof; except for 
heading Nos 7901 and 7902; the 
ndc for heading No 7901 is set out 
below 

7901 

Unwrought  zinc 

ex Chapter 80 

Tin and articles thereof; except  for 
heading Nos 8001, 8002 and  8007 
the rule for heading No 8001 is set 
out below: 

8001 

Unwrought  tin 

ex Chapter 81 

Other base metals, wrought: 
articles thereof 

8206 

Tools of two or more of the 
heading Nos. 8202 to 8205, put up 
in sets for  retail  sale 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
SSL 

Manufacture in which: 
-  an the materials used are 

classified in a heading other than 
that of the product, and 

-  the value of aH fie materials used 

does not exceed 50% of the ex-
works price of the produa 

Manufaaure in which all the 
materials used are classified  in a 
heading other than that of the 
product  However, waste and  scrap 
of heading No. 7902 may not be 
used 

Manufacture in wliich: 
-  all the materials used  arc 

classified  in a heading oilier 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 

Manufacture in which all the 
materials used are classified  in a 
heading other than that of the 
produa.  However, waste and  scrap 
of heading no. 8002 may not be 
used 

Manufaaure  in which the value of 
all the materials classified  in the 
same heading as the produa  used 
does not exceed 50% of the ex-
works price of the product 

Manufacture in which all the 
materials used are classified  in a 
heading other than heading Nos. 
8202 to 8205.  However, tools of 
heading Nos. 8202 to 8205 may be 
incorporated  into the set  provided 
their value does not exceed  15% of 
the ex-works price of the set 

.A04 

HSNo 

Description of product 

0) 

1 

P> 

8207 

Interchangeable tools for  band 
tools, whether or not power-
opexaled, or for machine-tools  (for 
example, for pressing, stamping, 
punching, tapping, threading, 
drilling, boring, broaching, 
milling, turning, or screwdriving), 
including dies for drawing or 
extruding metal, and  rock drilling 
or earth boring tools 

8208 

Knives and anting blades,  for 
machines or for  mechanical 
appliances 

ex 8211 

Knives with cutting blades, 
serrated or not (including  pruning 
knives), other than  knives of 
heading No. 8208 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
0) 
I 

Manufacture m which: 
-  all the materials used are 
classified m a heading ether than 
that of the product, and 
-  the value of all the materials used 
does not exceed 40% of the ex-
works price of the produa 

Manufacture in which: 
-  all the materials used are 

classified m a heading other than 
that of the product, and 

-  the value of all the materials used 
does not exceed 40% of the ex-
works price of the produa 

Manufacture in which all the 
materials used are classified in a 
heading other than that of the 
product  However, knife blades 
and handles of base metal may be 
used 

8214 

8215 

Other articles of cutlery  (for 
example, hair clippers, butchers" or 
kitchen cleavers, choppers and 
mincing knives, paper  knives); 
manicure or pedicure sets and 
instruments  (including  nail files) 

Manufacture in which all the 
materials used are classified  in a 
heading other than thai of the 
produa.  However, handles of base 
metal mav be used 

Spoons, forks,  ladles, skimmers, 
cake-servers,  fish-knives,  butter-
knives, sugar tongs and  similar 
kitchen or tableware 

Manufacture in which all the 
materials used are classified  in a 
heading other than that of the 
product  However, handles of base 
metal may be used 

yu>r 

HS No 

Description of product 

ex 8306 

Statuettes and other ornaments, of 
base metal 

ex Chapter 84 

8402 

Nuclear  reactors,  boilers, 
machinery and  mechanical 
appliances; parts thereof; except for 
those falling within the  following 
headings or parts of headings  for 
which the rules arc set out below: 
8402, 8403, ex8404, 8406 to 
8409,8411, 8412,ex8413, ex8414, 
8415,8418, ex8419, 8420, 8423, 
8425 to 8430, ex8431, 8439, 8441, 
8444 to 8447, ex8448, 8452, 8456 
to 8466,cx 8467, 8469 to 8472, 
8480, 8482, ex 8483, 8484  and 
8485 

Sleam or other vapour  generating 
boilers (other than central  heating 
hot water boilers capable also of 
producing low pressure steam); 
super-heated water boilers 

8403 and ex 
8404 

Central heating boilers other than 
those of heading No. 8402  and 
auxiliary plant for central  heating 
boilers 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 

Manufacture in which aU the 
materials used are classified  within 
a heading other than that of the 
product  However, the other 
materials of heading No. 8306 may 
be used provided their value does 
not exceed 30% of the ex-works 
price of the produa 

Manufaaure in which: 
-  in which the value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 

the materials classified  within  the 
same heading as the product are 
only used up to a value of 15 % of 
the ex-works price of the produa 

Manufacture in which: 
-  in which the value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within llic above limit, 
the materials classified  in the same 
heading as the produa are only 
used up to a value of 15 % of the 
ex-works price of the produa 

Manufaaure in which all the 
materials used are classified  ina 
heading other than heading No. 
8403 or 8404. However, materials 
which are classified  in heading No 
8403 or 8404 may be used provided 
their value, taken together, does not 
exceed  15 % of the ex-works price 
of the product 

Ao6 

HS No 

Description of product 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 

8406 

8407 

8408 

8409 

8411 

Steam turbines and other vapour 
turbines 

Spark-ignition reciprocating or 
rotary internal combustion piston 
engines 

Compression-ignition internal 
combustion piston engines (diesel 
or semi-diesel engines) 

Parts suitable for use solely or 
principally with the engines of 
heading No. 8407 or 8408 

Manufacture m which the value of 
an the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufacture in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the product 

Manufacture in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufacture in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the product 

Turbo-jets, turbo-propellers and 
other gas turbines 

Manufacture in which: 
-  m which the value of all the 

8412 

Other engines and motors 

ex 8413 

Rotary positive displacement 
pumps 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 
the materials classified in the same 
heading as the produa are only 
used up to a value of 15 % of the 
ex-works price of the produa 

Manufaaure in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufacture: 
-  in which the value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, vrithin the above limit, 
the materials classified  in the same 
heading as the produa  are only 
used up to a value of 15 % of the 
ex-works price of the produa 

AoY 

HS No 

Description of product 

. 
m 

1 

<a 

Working or processing carried 
out on non-origjnaring 
materials that confers 
originating status 
0) 
1 

ex 8414 

Industrial fans, blowers and  the 
like 

Manufacture : 
-  m which the vame of an the 

8415 

8418 

Air conditioning machines,  • 
comprising a motor-driven fan  and 
elements for changing  the 
temperature and  humidity', 
including those machines in which 
the humidity cannot be  separately 
regulated 

Refrigerators, freezers and  other 
refrigerating  or  freezing 
equipment, electric or other; heat 
pumps other than air  conditioning 
machines of heading No.  8415 

materials used docs not exceed 
40% of the ex-works price of the 
product, and 

-  where* within the above limit, 
the materials classified in the same 
heading as the product are only 
used up to a value of 15 % of the 
ex-works price of the produa 

Manufacture in which the value of 
afl the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufacture: 
-  in which the value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 
the materials classified within the 
same headixig as the produa  are 
only used up to a value of  15 % of 
the ex-works price of the product, 
and 
-  where the value of all the non-
originating materials used does not 
exceed the value of the originating 
materials used 

ex 8419 

Machines for the wood, paper  pulp 
and paperboard  industries 

Manufacture: 
-  in which the value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 

the materials classified  within  the 
same heading as the produa  are 
only used up to a value of 25% of 
the ex-works price of the produa 

A*>% 

HS  No 

Description  of  p r o d u ct 

Working  or processing  carried 

m 

1 

co 

8420 

Calendaring or other tolling 
machines, other than for metals or 
glass, and cylinders  therefor 

8423 

Weighing machinery  (excluding 
balances of a sensitivity of 5 eg or 
better), mduding weight operated 
counting or chedring machines; 
weighing machine weights of all 
kinds 

8425 to 8428 

lifting,  handling, loading or 
unloading  machinery 

8429 

Self-propelled  bulldozers, 
angledozers, graders, levellers, 
scrapers, mechanical  shovels, 
excavators, shovel loaders, tamping 
machines and  road  rollers: 

-  Road  rollers 

out  on  non-originating 
materials  that  confers 
originating status 
o) 
1 

• 

Manufacture: 
-  mwMchthevameofaUthe 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 

the materials classified within  the 
same heading as the produa  are 
only used up to a value of 25%  of 
the ex-works price of the product 

Manufacture: 
-  in which the value of all the 

materials used does not exceed 
40%  of the ex-works price of the 
product, and 

-  where, within the above limit, 
the materials classified in the 
same heading as the produa  are 
only used up to a value of 15%  of 
the ex-works price of the produa 

Manufacture: 
-  inwhichthevalueofaUthe 
materials used does not exceed 
40%  of the ex-works price of the 
product, and 
-  where, within Ihe above limit, 
the materials classified in heading 
No.  8431  are only used up to a 
value of 15% of the cx-works price 
of the produa 

Manufaaure  in which the value of 
all the materials used does not 
exceed 40% of the  ex-works price 
of the produa 

AOt 

HSNo 

I Description of product 

-  Other 

8430 

Other moving, grading, levelling, 
scraping, excavating, tamping, 
compacting, extracting or boring 
machinery, for earth, minerals or 
ores; pile-drivers and  pile-
extractors; snow-ploughs and 
snow-blowers 

ex 8431 

Parts for road  rollers 

8439 

Machinery for making pulp of 
fibrous cellulosic material or for 
making or  finishing  paper or 
paperboard 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 

Manufacture: 
-  in which the value of aU the 

materials used does not exceed 
40% of the ex-works price of nie 
product, and 

-  where, within the above limit, 

the value of the materials 
classified within heading No. 
8431 are only used up to a value 
of 15% of the ex-works price of 
the produa 

Manufacture: 
-  in which the value of all the 

materials used docs not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 

the value of the materials 
classified within heading No. 
8431 arc only used up to a value 
of  15% of the ex-works price of 
the produa 

ManufaOnre in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufacture: 
-  in which the value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, vvitirin the above limit, 

the materials classified within the 
same heading as the produa  are 
only used up to a value of 25% of 
the ex-works price of the produa 

/Ho 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
(3) 

I 

Manufacture: 
-  m which the value of all the 

materials used dees not exceed 
40% of the ex-works price of the 
product, and 

-  where, wilhin the above limit, 

the materials classified within the 
same heading as the produa  are 
only used up to a value of 25% of 
the ex-works price of the produa 

Manufacture m which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufaaure in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufacture: 
-  in which the value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, 

-  where the value ofaU the non-  • 

originating materials used in 
assembling the head (without 
motor) does not exceed the value 
of the originating materials used, 
and 

-  the thread tension, crochet and 
zigzag mechanisms used are 
already originating 

Manufaaure in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

US No 

Description of product 

0) 

I 

^ 

. 

(2) 

8441 

Other machinery for making up 
paper pulp, paper or paperboard, 
including cutting machines of aU 
kinds 

8444 to 8447 

Machines of these headings for use 
in the textile industry 

ex 8448 

8452 

Auxiliary machinery  for  use with 
machines of headings Nos. 8444 
and 8445 

Sewing machines, other than book-
sewing inachines of heading No. 
8440; furniture,  bases and  covers 
specially designed for  sewing 
machines; sewing machine needles: 

-  Sewing machines (lock  stitch 

only) with heads of a weight  not 
exceeding  16 kg without  motor or 
17 kg with  motor 

Other 

/W 

US No 

Description of product 

8456 to 
8466 

ex 8467 

Machine-tools and machines and 
their parts and accessories of 
beading Nos 8456 to 8466 

Hydraulic tools for working in the 
hand without a self-contained non 
electric motor 

8469 to 8472 

8480 

Office macltincs (for example, 
typewriters, calculating machines, 
automatic data processing 
machines, duplicating machines, 
stapling machines) 

Moulding boxes for metal foundry; 
'mould bases; moulding patterns; 
moulds for metal (other than ingot 
moulds), metal carbides, glass, 
mineral materials, rubber or 
plastics  , 

8482 

Ball or roller  bearings 

ex 8483 

roller  screws 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 

Manufacture in which 'die value of 
aU the materials used does not 
exceed 40% of the ex-works price 
of the product 

Manufacture: 
-  mwfûchlhevalueofalllhe 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 
the value of the materials classified 
within heading No. 8431 are only 
used up to a value of 15% of the 
ex-wxjrks price of the produa 

Manufaaure in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufacture in which the value of 
aU the materials used does not 
exceed 50% of the ex-works price 
of the produa 

Manufaaure: 
-  in which the value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 

the materials classified within the 
same heading as the produa  are 
only used up to a value of 15% of 
the ex-works price of the produa 

Manufacture in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

stytL 

HS No 

Description of product 

Q) 

» 

& 

8484 

8485 

ex Cliapter 85 

Gaskets and similar joints of metal 
rfmrring combined with other 
m3t"i*l OTof two or more layers of 
metal; sets or assortments of 
gaskets and similar joints, 
dissimilar in composition, put up in 
pouches, envelopes or similar 
packings; mechanical seals. 

Machinery parts, not containing 
electrical connectors, insulators, 
coils, contacts or other electrical 
features, not specified  or included 
elsewhere in this Chapter 

Elearical  machinery and 
equipment  and parts thereof; sound 
recorders and  reproducers, 
television image and sound 
recorders and reproducers, and 
parts and accessories of such 
articles; except for those  falling 
within the following  headings or 
parts of headings for which the 
rules are set out below: 
8501, 8502, ex 8504, ex 8517, 
ex8522,8523 to 8524, ex 8525, 
8528 to 8529, 8535 to 8537, 8542, 
8544 to 8547 and ex 8548 

8501 

Electric motors and  generators 
(excluding generating sets) 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
1 
(3) 

Manufacture in which the vainc of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufaaure in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufaaure: 
-  in which the value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 

the materials classified  within the 
same heading as the product are 
only used up to a value of 10% of 
the ex-works price of the produa 

Manufaaure: 
-  in which the value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 
tiie materials classified  within 
heading No. 8503 are only used 
up to a value of  10% of the ex-
works price of the produa 

AAb 

HSNo 

Description of product 

. 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 

8502 

Electric generating sets and rotary 
converters 

Manufacture: 
-  in which the value of aU the 

ex 8504 

Power supply units for automatic 
data-processing machines 

ex 8517 

videophones 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 
the materials classified  within 
heading No. 8501 or 8503, taken 
together, are only used up to a 
value of 5% of the ex-works price 
of the produa 

Manufaaure in which the value of 
aU the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufacture : 
-  in which the value of aU the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where the value of aU the non-
originating materials used  does not 
exceed the value of the originating 
materials used 

ex 8522 

8523 

8524 

Parts and accessories of 
cinematographic sound  recorders 
or reproducers for film of  16 mm or 
more 

Manufacture in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Prepared unrecorded media  for 
sound recording or similar 
recording of other phenomena, 
other than products of Chapter 37 

Manufaaure  in which the value of 
aU the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Records, tapes and other recorded 
media for sound or other similarly 
recorded phenomena,  including 
matrices and masters for the 
production  of records, but 
excluding products of Chapter  37: 

A^k 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
I 
(3) 

Manufacture in which the value of 
afl the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufacture: 
-  in which the value of all the 

materials used docs not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 
the materials classified  within 
beading No. 8523 are only used 
up to a value of 10% of the ex-
works price of the produa 

Manufaaure: 
-  in which ihe value of all the 

materials used does not exceed 
40% of the ex-works price of the 
produa 

Manufacture: 
-  m which tiie value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, aDd 

-  where the value of all the non-
originating materials used  does 
not exceed the value of the 
originating materials used 

Manufacture: 
-  in which the value of all the 

materials used docs not exceed 
40% of the ex-works price of the 
product, and 

-  where the value of all tiie non-
originating materials used does 
not exceed the value of the 
originating materials used 

HS No 

Description of product 

(') 

I 

(S) 

-  Matrices and masters for the 
production of records 

-  Other 

ex 8525 

Transmission  apparatus  for  radio-
telephony, radio-telegraphy, radio 
broadcasting or television, whether 
or not incorporating  reception 
apparatus or sound  recording or 
reproducing apparatus;  television 
cameras/. 

8526 

Radar apparatus, radio  navigational 
aid apparatus and  radio  remote 
control  apparatus 

8527 

Reception apparatus for  radio-
telephony, radio-telegraphy or 
radio broadcasting, whether or not 
combined,  in the same  housing, 
with sound  recording  or 
reproducing apparatus  or a clock 

AAÇ 

HS No 

Description of product 

' 

8528 

(0 

I 

(2) 

Reception apparatus for television, 
whether or not incoipoiating radio 
broadcast receivers or sound or 
video iccording or  reproducing 
apparatus; video monitors and 
video projectors 

8529 

Parts suitable for use solely or 
principally with the apparatus of 
heading Nos. 8525 to 8528: 

8535 and 
8536 

Hectricai apparatus for  switching 
or protecting electrical circuits, or 
for making connections to or in 
electrical circuits 

8537 

Boards, panels, consoles, desks, 
cabinets and other bases, equipped 
with two or more apparatus of 
heading No. 8535 or 8536, for 
dectric control or the distribution 
of electricity, mdutiing those 
incorporating instruments  or 
apparatus of Chapter  90, and 
numerical control apparatus, other 
than switching apparatus  of 
heading No. 8517 

Working or processing carried 
out on riorj-origbating 
materials that confers 
originating status 
(3) 

I 

Manufacture: 
-  m which the value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where the value of aU the non-

originating materials used  does 
not exceed the value of the 
originating materials used 

Manufacture: 
-  m which the value of all the 

materials used does not exceed 
40% of the ex-works price of (he 
product, and 

-  where the value of all the non-

originating materials used  does 
not exceed the value of the 
originating materials used 

Manufacture: 
-  in which the value of all the 

materials used does not exceed 
40% of the ex-works price of t ie 
product, and 

-  where, within the above limit, 
the materials classified  within 
heading No. 8538 are only used 
up to a value of 10% of the ex-
works price of the produa 

Manufaaure: 
-  in which the value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 
the materials classified  within 
heading No. 8538 are only used 
up to a value of 10% of the ex-
works price of the produa 

M& 

HS No 

Description of product 

ex 8541 

Diodes, transistors and similar 
semi-conductor devices, except 
wafers not yet cut into chips 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 

Manufacture: 
-  m which the value of afl the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 

the materials classified within the 
same heading as the products are 
only used up to a value of 10% of 
the ex-works price of the product 

8542 

Electronic integrated circuits and 
microassemblics 

Manufacture: 
-  inwnichthevalucofanthe 

materials used docs not exceed 
40% of the ex-works price of the 
product and 

-  where, within the above limit, 
the materials classified within 
heading No. 8541 or 8542, taken 
together, arc only used up to a 
value of 10% of the ex-works 
price of the produa 

Manufacture in which the value of 
aU the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufacture in which.tbe value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufacture in which tiie value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

8544 

8545 

Insulated (including enamelled or 
anodised) wire, cable (including 
coaxial cable) and other insulated 
electric conduaors, whether or not 
fined with conneaors; optical fibre 
cables, made up of individually 
sheathed fibres, wheuier or not 
assembled with electric  conduaors 
or fined with  conneaors 

Carbon electrodes, carbon brushes, 
lamp carbons, battery carbons and 
other articles of graphite or other 
carbon, with or without metal, of a 
kind used for electrical purposes 

8546 

Electrical insulators of any  material 

MÏ 

HSNo 

Description of product 

111 

8547 

m. 

Insulating fittings for electrical 
machines» appliances or 
CQvpmenl, being fittings whouy of 
fnsnlating materials apart from any 
minor components of metal (for 
example, threaded sockets) 
incorporated during moulding 
solely for purposes of assembly 
other than insulators of heading 
No. 8546; electrical conduit tubing 
and joints therefor, of base metal 
lined with insulating material 

ex 8548 

Electrical parts of machinery or 
apparatus, not specified or included 
elsewhere in this Chapter 

8601 to8607 

Railway or tramway locomotives, 
rolling-stock and parts thereof 

Railway or tramway track fixtures 
and fittings; mechanical  (including 
electromechanical) signalling, 
safety or traffic control equipment 
for railways, tramways, roads, 
inland waterways, parking 
facilities, port installations or 
airfields; parts of the foregoing 

8608 

8609 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
(?) 

Manufacture in which the value of 
aU the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufacture in which the value of 
aU the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufaaure  in which the value of 
all materials used does not exceed 
40% of the ex-works price of the 
produa 

Manufacture: 
-  in which the value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 

the materials classified  within  the 
same heading as the produa  are 
only used up to a value of  10% of 
the ex-works price of the produa 

Containers (including containers 
for the transport of fluids)  specially 
designed and equipped for carriage 
by one or more modes of transport 

Manufaaure  in which the valu of 
aU the materials used does not 
exceed 40% of the ex-works price 
of the produa 

AA? 

US No 

Description of product 

0) 

ex Chapter 87 

8709 

8710 

8711 

0) 

Vehicles other than railway or 
tramway iollmg-stock, and parts 
and accessories thereof; except for 
those faning within the foUowing 
Vadings ir parts of headings for 
which the rules arc set out below: 
8709 to 8711, CX8712, 8715 and 
8716 

Works trucks, self-propcUed, not 
fined with lifting or handling 
equipment, of the type used in 
factories, warehouses, dock areas or 
airports for short distance transport 
of goods; tractors of the type used 
on railway station platforms; parts 
of llic foregoing vehicles 

Tanks and other armoured  fighting 
vehicles, motorized, whether or not 
fitted  with weapons, and parts of 
such vehicles 

Motorcycles (including mopeds) 
and cycles fitted with an  auxiliary 
motor, with or without  side-cars; 
side-cars: 

ex 8712 

Bicycles without ball  bearings 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
I 
(3) 

Manufacture in which flic value of 
aU the materials used does not 
exceed 40% of the ex-works price 
of the product 

Manufacture: 
-  in which the value jfifaU  the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 

the materials classified  within the 
same heading as the produa  arc 
only used up to a value of 10% of 
the ex-works price of the produa 

Manufaaure: 
-  in which the value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 

the materials classified whhin the 
same heading as the product are 
only used up to a value of 10% of 
the ex-works price of the produa 

Manufacture : 
-  in which the value of aU the 

materials used  does not exceed 
40% of the ex- works price of the 
product, and 

-  where the value of all the non-
originating materials used does 
not exceed the value of the 
originating materials used 

Manufacture from  materials not 
classified  within  heading No 8714 

A*1 

HSNo 

Description of product 

111 

SSL 

8715 

Baby carriages and parts thereof 

8716 

Trailers and semi-trailers; other 
vehicles, not mechanically 
propeUed; parts thereof 

8803 

8804 

Parts of goods of heading Nos 8801 
or 8802 

Parachutes (including  dirigible 
parachutes and paragliders)  and 
rotochutcs; parts thereof and 
accessories thereto  : 
-  Rotochutes 

other 

Working or processing earned 
out on non-origboating 
materials that confers 
originating status 
SSL 

Manufacture: 
-  m which the value of an the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 

the materials classified within the 
same heading as the product are 
only used up to a value of 10% of 
the ex-works price of the product 

Manufacture: 
-  m which the value of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 

the materials classified within the 
same heading as the product are 
only used up to a value of 10% of 
the cx-works price of the produa 

Manufacture in which the value of 
aU the materials of heading No 
8803 used does not exceed 5 % of 
the ex-works price of the produa 

Manufacture from materials of any 
heading induding other materials 
of heading No. S804 

Marrufacture in which the value of 
aU the materials of heading 8804 
used does not exceed 10 % of the 
ex-works price of the produa 

8805 

Aircraft  launching gear,  deck-
arreslor or similar  gear;  ground 
flying trainers; parts  of the 
foregoing  articles 

Manufaaure  in which the value of 
all the materials of heading 8805 
used does not exceed 5 % of the ex-
works price of the produa 

Jlo 

HSNo 

Description  of  p r o d u ct 

Working or processing  carried 
out  on  non-originating 
materials that  confers 
originating status 

i ll 

SSL 

SSL 

Chapter 89 

Ships, boats and  floating  stiuctuics 

ex Chapter 90 

9001 

9002 

Optical, photographic, 
cinematographic,  measuring, 
checking, precision, medical or 
surgical instruments and apparatus; 
parts and accessories thereof; 
except for those falling within the 
foUowing headings or parts of 
headings for which the rules are set 
out below: 
9001, 9002, 9004, ex  9006,ex 
9014, 9015 to 9020 and  9024 to 
9033 

Optical fibres and optical  fibre 
bundles; optical fibre  cables other 
than those of heading No. 8544; 
•sheets and plates of polarizing 
material, lenses (including  contaa 
lenses), prisms, mirrors  and other 
optical elements, of any  material, 
unmounted, other than  such 
elements of glass not  optically 
worked 

Lenses, prisms, mirrors and  other 
optical elements, of any  materials, 
mounted, being parts of or  finings 
for instruments or apparatus, other 
than such elements of glass not 
optically worked 

9004 

Spectacles, goggles and  the like, 
corrective, protective or  other 

Manufacture m which an the 
materials used are classified  within 
a heading other than that of the 
product  Howntr, hnUs of heading 
No. 8906 may not be used 

Manufacture: 
-  m which the value of aU the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 

the materials classified within the 
same heading as the produa  are 
only used up to a value of  10% of 
the ex-works price of the produa 

Manufacture in which the value of 
aU the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufacture in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufacture in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

AM 

HSNo 

Description of product 

0) 

ex 9006 

& 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
g) 
1 

Manufacture: 
-  m which tfjc value of all the 

materials used docs not exceed 
45% of the ex-works price of the 
product, and 

-  where, within the above limit, 
the materials classified  in the 
same heading as the produa  are 
only used up to a value of 10% of 
the ex-works price of the produa 

Photographie (other than 
cinematographic) cameras; other 
than the following: 
-  Cameras of a kind used  for 
preparing printing plates  or 
cylinders 
-  Cameras of a kind used  for 
recording documents on  microfilm,, 
microfiche or other  microfonns 
-  Cameras specially designed  for 
underwater use, for aerial survey or 
for medical or surgical  examination 
of internal organs, comparison 
cameras for forensic  or 
criminological  purposes 
-  Instant print  cameras 
-  Other cameras: 

- With a through-the-lens 
viewfinder  (single lens  reflex 
(SLR)), for roU film of a width  not 
exceeding 35  mm 

- Other, for roU film  of a  width 

less than 35  mm 

- Ouier, for roU film of a width of 

35 mm 

ex 9014 

Other navigational  instruments  and 
appliances 

9015 

Surveying  (including 
photogrammetrical surveying), 
hydrographie, océanographie, 
hydrological, meteorological  or 
geophysical instruments  and 
appliances, excluding  compasses; 
rangefinders 

9016 

Balances of a sensitivity of 5 eg or 
better, with or without  weights 

Manufaaure in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

•« 

Manufaaure  in which the value of 
aU the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufaaure in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

A<tf-

Working or processing carried 
out on non-origjnating 
materials that confers 
originating status 
£1 

Manufacture in which the value of 
aU the materials used does not 
exceed 40% of the ex-works price 
of the product 

HSNo 

Description of product 

SSL 

9017 

121 

Drawing, marking-out or 
matitematical calculating 
instruments (for example,  drafting 
machines, pantographs, 
protractors, drawing sets, stide 
rules, disc calculators); instruments 
for measuring length, for use in the 
hand (for example, measuring rods 
and tapes, imcrometers, callipers), 
not specified or included elsewhere 
in this Chapter 

ex 9018 

9019 

9020 

9024 

Dentists' chairs incorporating 
dental appliances or dentists' 
spittoons 

Manufacture from  materials of any 
heading, including other materials 
of heading No. 9018 

Mccliano-tlicrapy appliances; 
massage apparatus; psychological 
aptitude-testing apparatus; ozone 
therapy, oxygen therapy, aerosol 
therapy, artificial  respiration or 
other therapeutic  respiration 
apparatus 

Other breathing appliances and  gas 
masks, excluding protective masks 
having neither mechanical  parts 
nor replaceable  fillers 

Machines and appliances for 
ireting the hardness, strength, 
cdrnpressibuity, elasticity or other 
mechanical properties of materials 
(for example, metals, wood, 
textiles, paper,  plastics) 

Manufaaure: 
-  in which the value of aU the 

materials used does not exceed 
40% of the ex-works price of tiie 
product, and 

-  where, within the above limit, 
the materials classified  in the 
same heading as the produa  are 
only used up to a value of  10% of 
the ex-works price of the produa 

Manufaaure: 
-  in which the value of aU the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 

the materials classified  within  tiie 
same heading as the product are 
only used up to a value of  10% of 
the ex-works price of the produa 

Manufacture in which \he value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

All 

HSNo 

Description of product 

m 

9025 

9026 

9027 

9028 

9029 

m 

Hydrometers and similar floating 
insuuinents, thermometers, 
pyrometers, barometers, 
hygrometers and psychrometers, 
recording or not, and any 
combination of these instruments 

Instruments and apparatus for 
measuring or checking the flow, 
level, pressure or other variables of 
liquids or gases (for example, flow 
meters, level gauges, manometers, 
heat meters), excluding 
instruments and apparatus of 
heading No. 9014,9015,902S or 
9032 

Instruments and apparatus for 
physical or chemical analysis (for 
example, polarimeters, 
refraaometers, spectromaers, gas 
or smoke analysis apparatus); 
instruments and apparatus for 
measuring or checking viscosity, 
porosity, expansion, surface tension 
or the like; instruments and 
apparatus for measuring or 
checking quantities of heat, sound 
or light (including exposure 
meters); microtomes 

Gas,  liquid or electricity supply or 
production meters, including 
calibrating meters therefor 

Revolution counters, production 
counters, taximeters, milometers, 
pedometers and the tike; speed 
indicators and tachometers, other 
than those of heading Nos. 9104 or 
9015 ; stroboscopes 

Working or processing carried 
out on non-originating 
materials that  confers 
originating status 
SSL 

Manufacture in winch the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the product 

Manufaaure in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of thé produa 

Manufaaure  in which the value of 
all the materials used docs not 
exceed 40%  of the ex-works price 
of the  produa 

Manufaaure  in which the value of 
all the materials used docs not 
exceed 40% of the  ex-works price 
of the  produa 

Manufacture  in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the  produa 

A9Li\ 

HSNo 

Description of product 

SSL 

9030 

SSL 

Oscttloscopes, spectrum analysers 
and other instruments  and 
apparatus for measuring or 
checking electrical  quantities, 
excluding meters of heading No. 
9028; instruments and  apparatus 
for measuring or detecting alpha, 
beta, gamma, X-ray, cosmic or 
other ionizing  radiations 

Working or processing carried 
out on non-originating 
materials that confers  • 
originating status 
SSL 

Manufaaure in which the value of 
aU the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Measuring or checking 
instruments, appliances  and 
machines, not specified  or included 
elsewhere in this Chapter,  profile 
projeaors 

Manufaaure in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Automatic regulating or  controlling 
instruments and  apparatus 

Parts and accessories (not  specified 
or included elsewhere in this 
Chapter) for machines,  appliances, 
instruments or apparatus of 
Chapter 90 

Clocks and watches and  parts 
thereof; except  for those  falling 
under the following  headings  for 
which the rules are set  out below: 
9101  Io9105and9110to9113 

Manufacture  in which the value of 
all the materials used does not 
exceed 40% of the ex -works price 
of the produa 

Manufacture in which the value of 
all the materials used does not 
exceed 40% of ihe ex-works price 
of the produa 

Manufaaure in which the value of 
all the materials used does not 
exceed 40% of the ex-works price 
of the produa 

Manufaaure  in which the value of 
all the materials used does not 
exceed 45% of the ex-works price 
of the produa 

9031 

9032 

9033 

ex Chapter 91 

9101  to9105 

Watches and  clocks 

Ai-Ç 

HSNo 

Description of product 

111 

9110 

SZL 

Complete watch or  clock 
movements, lmasseznbled or partly 
assembled (movement  sets)', 
incomplete watch or  clock 
movements, assembled; rough 
watch or clock  movements 

9111 

Watch cases and parts thereof 

9112 

Clock cases and cases of a  similar 
type for other goods of  this 
Chapter, and parts  thereof 

9113 

Watch straps, watch bands  and 
watch bracelets, and  parts thereof: 

-  Of base metal, whether or not 
plated, or clad with precious  metal 

Other 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
SSL 

Maimfacture: 
-  in which die vame of all the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 
the materials classified within 
heading No. 9114 are only used 
up to a value of 10% of the ex-
works price of the produa 

Manufacture: 
-  in which the value of aU the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, within the above limit, 

the materials classified within the 
same heading as the produa  arc 
oruy used up to a value of  10% of 
the ex-works price of the produa 

Manufacture: 
-  in which the value of aU the 

materials used does not exceed 
40% of the ex-works price of the 
product, and 

-  where, witiiin the above limit, 

the materials classified within the 
same heading as the produa  are 
only used up to a value of  10% of 
the ex-works price of the produa 

Manufaaure in which the value of 
aU the materials used does not 
exceed 40% of the ex-works price 
oftheprodue 

Manufacture in which the value of 
all the materials used does not 
exceed 50% of the ex-works price 
of the produa 

A%é 

Working or processing carried 
out on non^riginafing 
materials that confers 
originating status 
0) 
I 

Manufacture in which the value of 
aU the materials used docs not 
exceed 40% of the ex-works price 
of the produa 

Manufaaure in which the value of 
all the materials used docs not 
exceed 50% of the ex-works price 
of the produa 

Manufacture in which aU the 
materials used are classified  within 
a heading other than that of the 
produa 
or 
Manufaaure  from cotton cloth 
already made up in a form ready 
for use of heading No. 9401 or 
9403. provided: 

-  its value does not exceed 25% 
of the ex-works price of the 
product, and 
-  all the otiier materials used are 
already originating and are 
classified wilhin a heading other 
than heading No. 9401 or 9403 

Manufaaure in which the value of 
all the materials used does not 
exceed 50% of the ex-works price 
of the produa 

Manufacture in which the value of 
all the materials used does not 
exceed 50% of the ex-works price 
of the produa 

HS No 

Description of product 

. 
1 

(') 

(2) 

Chapter 92 

Musical instruments; parts and 
accessories of such articles 

Chapter 93 

Arms and ammunition; parts and 
accessories thereof 

ex 9401 and 
ex 9403 

Base metal furninirc,  incorporating 
unstuffed  cotton doth of a weight 
of300g/m2orless 

9405 

Lamps and  lighting  finings 
including searchlights and 
spotlights and  parts thereof, not 
elsewhere specified  or included; 
illuminated  signs,  illuminated 
name-plates and  the like, having a 
permanently  fixed  light source, and 
pans thereof not  elsewhere 
specified  or  included 

9406 

Prefabricated  buildings 

A9Cf 

HSNo 

Description of product 

SSL 

SSL 

ex 9502 

Dolls, with electric motors 

9503 

Other toys; reduced-size ("scale") 
models and similar  recreational 
models, working or not; puzzles of 
an kinds 

ex 9506 

Finished golf d ub  heads 

ex 9507 

Fishing rods, fish-hooks  and  other 
line fishing tackle; fish  landing 
nets, butterfly  nets and similar  nets; 
decoy "birds" (other than those of 
heading Nos 9208 or 9705) and 
similar hunting or shooting 
requisites: 
-  mounted  fish-hooks  with 
artificial bait; mounted  fishing 
lines including casts 

ex 9601 and 
ex 9602 

Articles of animal, vegetable or 
mineral carving  materials 

ex 9603 

Broonis and brushes (except for 
besoms and the like and  brushes 
made from marten or so^rirrel hair), 
hand-operated mechanical  floor 
sweepers, not motorized, paint pads 
and roUers, squeegees and  mops 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
SSL 

Manufacture in which the electric 
motor used must be originating and 
aU other materials used must be 
classified m a heading other than 
that of the produa 

Manufaaure in which: 
-  all the materials used are 

classified within a heading other 
than that of the product, and 

-  the value ofaU the materials used 
does not exceed 50% of the ex-
works price of tiie produa 

Manufaaure from roughly shaped 
blocks 

Manufaaure  in which all the 
materials used are classified  within 
a heading other than that of the 
produa.  However, materials 
classified  in the same heading may 
be used provided iheir value does 
not exceed 25 % of the ex-works 
price of the produa 

Manufaaure  from  "worked" 
carving materials of the same 
heading 
Manufacture in which the value of 
aU the materials used does not 
exceed 50% of the ex-works price 
of the produa 

A9L 8 

HSNo 

Description of product 

XÏL 

9605 

SSL 

Travel sets for personal  toilet, 
sewing or shoe or dothes cleaning 

9606 

Buttons, press-fasteners, snap-
fastcners and press-studs, button 
moulds and other parts of these 
artides; button blanks 

ex 9608 

Ball point pens; felt tipped and 
other porous-tipped pens and 
markers, fountain pens, stylograph 
pens and other pens; duplicating 
stylos, propdling or sliding 
pendis; pen-holders, penal-holders 
and similar holders; parts ( 
including caps and dips) of the 
foregoing artides, other than those 
of heading No 9609; 
-  fountain pens, stylograph pens 
and other pens with nibs 

9612 

Typewriter or similar  ribbons, 
inked or otherwise prepared for 
giving impressions, whether or not 
on spools or in cartridges; ink-
pads, whether or not inked, with or 
without boxes 

ex 9614 

Smoking pipes and pipe bowls 

Working or processing carried 
out on non-originating 
materials that confers 
originating status 
S2L 

Each, item in the set must satisfy 
the rule, which would apply to it if 
it were not induded in the set 
However, non-ottginating artides 
may be incorporated, provided thcir 
total value does not exceed 15% of 
the ex-works price of the set 

Manufacture in whidu. 
-  ah the materials used are 
classified within a heading other 
than that of the product, and 
-  the value ofaU the materials used 
does not exceed 50% of the ex-
works price of the produa 

Manufadure in which all the 
materials used are classified in a 
heading other than that of the 
product However, nibs or nib 
points may be used and the other 
materials dassified within the same 
heading may also be used provided 
their value does not exceed 10 % of 
the ex-works price of the product 

Manufacture in which: 
.  aU the materials used are 
classified withm a heading other 
than that of the product, and 
-  the value ofaU the materials used 
does not exceed 50% of the ex-
works price of the product 

Manufacture from roughly shaped 
blocks 

AM 

ISSN 0254-1475 

COM(95) 739 final 

DOCUMENTS 

EN 

01 

Catalogue number  :  CB-CO-95-781-EN-C 

ISBN 92-77-99286-7 

Office  for Official Publications of the European Communities 

L-2985 Luxembourg 
'a 

A^o