Decision No 6/98 of the Association Council, association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part of 21 December 1998 amending Protocol 4 to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part
Date: 1998-12-21
Institutions: EC–Czech Republic Association Council
Subjects: Czechia, Protocol (EU), administrative cooperation, association agreement (EU), customs regulations, originating product

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Official  Journal  of  the  European  Communities

9.2.1999

DECISION  No  6/98  OF  THE  ASSOCIATION  COUNCIL,

association  between  the  European  Communities  and  their  Member  States,  of  the  one  part,  and
the  Czech  Republic,  of  the  other  part

of  21  December  1998

amending  Protocol  4  to  the  Europe  Agreement  establishing  an  association  between  the
European  Communities  and  their  Member  States,  of  the  one  part,  and  the  Czech  Republic,  of
the  other  part

(1999/114/EC)

THE  ASSOCIATION  COUNCIL,

HAS  DECIDED  AS  FOLLOWS:

Having  regard  of  the  Europe  Agreement  establishing  an
association between the European Communities and their
Member States, of the one part, and the Czech Republic,
of  the  other  part (1),  signed  in  Brussels  on  4  October
1993,  and  in  particular  Article  38  of  Protocol  4 (2)
thereof,

Whereas  the  definition  of  the  term  ‘originating  products’
in  Protocol  4  needs  to  be  amended  to  ensure  the  proper
operation  of  the  extended  system  of  cumulation  which
permits  the  use  of  materials  originating  in  the  European
Community,  Poland,  Hungary,  the  Czech  Republic,  the
Slovak  Republic,  Bulgaria,  Romania,  Latvia,  Lithuania,
Estonia,  Slovenia, 
the  European  Economic  Area
(hereinafter  referred  to  as  ‘the  EEA’),  Iceland,  Norway
and Switzerland;

it  would  seem  advisable  to  maintain 

Whereas 
in
operation until 31 December 2000 the system of flat rate
charges  provided  for  in  Article  15  of  Protocol  4  in
connection  with  the  prohibition  of  drawback  and
exemption  from  customs  duty;

Whereas,  in  view  of  the  particular  arrangements  on
industrial  products  obtaining  between  the  Community
and  Turkey,  it  would  also  be  appropriate  to  extend  the
cumulation  system  to  such  products  originating 
in
Turkey;

Whereas  to  facilitate  trade  and  simplify  administrative
tasks it is desirable to amend the wording of Articles 3, 4
and  12  of  Protocol  4;

Whereas,  to  take  account  of  changes  in  processing
techniques  and  shortages  of  certain  raw  materials,  some
corrections  must  be  made  to  the  list  of  working  and
processing  requirements  which  non-originating  materials
have  to  fulfil  to  qualify  for  originating  status,

(1) OJ  L  360,  31.12.1994,  p.  2.
(2) Protocol  4  was  replaced  by  Association  Council  Decision

No  3/96  (OJ  L  343,  31.12.1996,  p.  1).

Article  1

Protocol  4  concerning  the  definition  of  the  concept
‘originating  products’  and  methods  of  administrative
cooperation  is  hereby  amended  as  follows:

1. Article  1 (i)  shall  be  replaced  by:

‘(i)

‘added  value’  shall  be  taken  to  be  the  ex-works
price  minus  the  customs  value  of  each  of  the
materials  incorporated  which  originate  in  the
other countries referred to in Articles 3 and 4 or,
where the customs value is not known or cannot
be  ascertained,  the  first  price  verifiably  paid  for
the  products  in  the  Community  or  the  Czech
Republic.’;

2. Articles  3  and  4  shall  be  replaced  by  the  following:

‘Article  3

Cumulation  in  the  European  Community

to 

the  provisions  of
1. Without  prejudice 
Article  2(1)  products 
shall  be  considered  as
originating  in  the  Community  if  such  products  are
obtained  there,  incorporating  materials  originating  in
the  Community,  Bulgaria,  Poland,  Hungary,  the
Czech  Republic,  the  Slovak  Republic,  Romania,
Lithuania,  Latvia,  Estonia, 
Iceland,
Norway,  Switzerland  (including  Liechtenstein (*))  or
Turkey (**)  in  accordance  with  the  provisions  of  the
the
Protocol  on 
Agreements  between  the  Community  and  each  of
these  countries,  provided 
the  working  or
processing carried out in the Community goes beyond
that  referred  to  in  Article  7  of  this  Protocol.  It  shall
not  be  necessary  that  such  materials  have  undergone
sufficient  working  or  processing.

rules  of  origin  annexed 

Slovenia, 

that 

to 

2. Where  the  working  or  processing  carried  out  in
the  Community  does  not  go  beyond  the  operations
referred to in Article 7, the product obtained shall be
considered  as  originating  in  the  Community  only
where  the  value  added  there  is  greater  than  the  value

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of  the  materials  used  originating  in  any  one  of  the
other  countries  referred  to  in  paragraph  1.  If  this  is
not  so,  the  product  obtained  shall  be  considered  as
originating  in  the  country  which  accounts  for  the
highest  value  of  originating  materials  used  in  the
manufacture  in  the  Community.

3.
Products,  originating  in  one  of  the  countries
referred to in paragraph 1, which do not undergo any
working or processing in the Community, retain their
origin  if  exported  into  one  of  these  countries.

4.
The cumulation provided for in this Article may
only be applied to materials and products which have
acquired  originating  status  by  an  application  of  rules
of  origin  identical  to  those  given  in  this  Protocol.

of 

the  Commission 

The  Community  shall  provide  the  Czech  Republic,
the  European
through 
Communities,  with  details  of  the  Agreements  and
their corresponding rules of origin, which are applied
with  the  other  countries  referred  to  in  paragraph  1.
The  Commission  of  the  European  Communities  shall
publish  in  the  Official  Journal  of  the  European
Communities  (C  series)  the  date  on  which  the
cumulation,  provided  for  in  this  Article  may  be
applied  by  those  countries  listed  in  paragraph  1
which  have  fulfilled  the  necessary  requirements.

Article  4

Cumulation  in  the  Czech  Republic

to 

the  provision  of
1. Without  prejudice 
Article  2(2),  products 
shall  be  considered  as
originating in the Czech Republic if such products are
obtained  there,  incorporating  materials  originating  in
the  Community,  Bulgaria,  Poland,  Hungary,  the
Czech  Republic,  the  Slovak  Republic,  Romania,
Lithuania,  Latvia,  Estonia, 
Iceland,
Norway  Switzerland  (including  Liechtenstein (*))  or
Turkey (**)  in  accordance  with  the  provisions  of  the
Protocol  on 
the
Agreements  between  the  Czech  Republic  and  each  of
these  countries,  provided 
the  working  or
processing  carried  out  in  the  Czech  Republic  goes
beyond  that  referred  to  in  Article  7  of  this  Protocol.
It  shall  not  be  necessary  that  such  materials  have
undergone  sufficient  working  or  processing.

rules  of  origin  annexed 

Slovenia, 

that 

to 

2. Where  the  working  or  processing  carried  out  in
the  Czech  Republic  does  not  go  beyond 
the
operations  referred  to  in  Article  7,  the  product
obtained  shall  be  considered  as  originating  in  the
Czech  Republic  only  where  the  value  added  there  is
greater 
the  materials  used
originating  in  any  one  of  the  other  countries  referred
to  in  paragraph  1.  If  this  is  not  so,  the  product
obtained  shall  be  considered  as  originating  in  the
country  which  accounts  for  the  highest  value  of
originating  materials  used  in  the  manufacture  in  the
Czech  Republic.

the  value  of 

than 

Products,  originating  in  one  of  the  countries
3.
referred to in paragraph 1, which do not undergo any
working  or  processing  in  the  Czech  Republic,  retain
their  origin  if  exported  into  one  of  these  countries.

4.
The cumulation provided for in this Article may
only be applied to materials and products which have
acquired  originating  status  by  an  application  of  rules
of  origin  identical  to  those  given  in  this  Protocol.

of 

the  Commission 

The  Czech  Republic  shall  provide  the  Community,
through 
the  European
Communities,  with  details  of  the  Agreements  and
their corresponding rules of origin, which are applied
with  the  other  countries  referred  to  in  paragraph  1.
The  Commission  of  the  European  Communities  shall
publish  in  the  Official  Journal  of  the  European
Communities  (C  series)  the  date  on  which  the
cumulation,  provided  for  in  this  Article,  may  by
applied  by  those  countries  listed  in  paragraph  1
which  have  fulfilled  the  necessary  requirements.

(*) The  Principality  of  Liechtenstein  has  a  customs
union  with  Switzerland,  and  is  a  Contracting
Party  to  the  Agreement  on  the  European
Economic Area.

(**) Cumulation  as  provided  for  in  this  Article  does
not  apply  to  materials  originating  in  Turkey
which  are  mentioned  in  the  list  at  Annex  V  to
this  Protocol.’;

3. Article  12  shall  be  replaced  by  the  following:

‘Article  12

Principle  of  territoriality

Except  as  provided  for 

1.
in  Article  2(1)(c),
Articles  3  and  4  and  paragraph  3  of  this  Article,  the
conditions  for  acquiring  originating  status  set  out  in
Title II must continue to be fulfilled at all times in the
Community  or  the  Czech  Republic.

Except  as  provided  for  in  Articles  3  and  4,
2.
where  originating 
the
goods 
Community  or  the  Czech  Republic  to  another
country 
they  must  be  considered  as
non-originating,  unless  it  can  be  demonstrated  to  the
satisfaction  of  the  customs  authorities  that:

exported 

return, 

from 

(a)

the  returning  goods  are  the  same  as  those  that
were  exported;  and

(b)

they  have  not  undergone  any  operation  beyond
that  necessary 
in  good
to  preserve 
condition  while  in  that  country  or  while  being
exported.

them 

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9.2.1999

status 

The  acquisition  of  originating 

in
3.
accordance with the conditions set out in Title II shall
not  be  affected  by  working  or  processing  done
outside  the  Community  or  the  Czech  Republic  on
materials exported from the Community or the Czech
there,
Republic 
provided:

subsequently 

reimported 

and 

(a)

the  said  materials  are  wholly  obtained  in  the
Community  or  the  Czech  Republic  or  have
undergone  working  or  processing  beyond  the
insufficient  operations  listed  in  Article  7  prior  to
being  exported;  and

(b)

it  can  be  demonstrated  to  the  satisfaction  of  the
customs  authorities  that:

(i)

the reimported goods have been obtained by
working  or  processing 
exported
materials;

the 

(ii)

the  total  added  value  acquired  outside  the
Community  or 
the  Czech  Republic  by
applying  the  provisions  of  this  Article  does
not exceed 10 % of the ex-works price of the
end  product  for  which  originating  status  is
claimed.

4.
For  the  purpose  of  paragraph  3,  the  conditions
for acquiring originating status set out in Title II shall
not  apply  to  working  or  processing  done  outside  the
Community or the Czech Republic. But where, in the
list  in  Annex  II,  a  rule  setting  a  maximum  value  for
all  the  non-originating  materials 
is
applied  in  determining  the  originating  status  of  the
end  product,  the  total  value  of  the  non-originating
materials  incorporated  in  the  territory  of  the  party
concerned,  taken  together  with  the  total  added  value
acquired  outside  the  Community  or  the  Czech
Republic  by  applying  the  provisions  of  this  Article,
shall  not  exceed  the  stated  percentage.

incorporated 

The  provisions  of  paragraphs  3  and  4  shall  not
6.
apply  to  products  which  do  not  fulfil  the  conditions
set  out  in  the  list  in  Annex  II  or  which  can  be
considered  sufficiently  worked  or  processed  only  if
the  general  values  fixed  in  Article  6(2)  are  applied.

7.
The  provisions  of  paragraphs  3  and  4  shall  not
apply to products coming under Chapters 50 to 63 of
the  Harmonised  System.

8.
Any  working  or  processing  of  the  kind  covered
by the provisions of this Article and done outside the
Community  or  the  Czech  Republic  shall  be  done
under  the  outward  processing  arrangements,  or
similar arrangements.’;

4.

5.

in  Articles  13,  14,  15,  17,  21,  27,  30  and  32,  the
phrase  ‘referred  to  in  Article  4’  shall  be  replaced
‘referred  to  in  Articles  3  and  4’;

in  the  last  paragraph  of  Article  15(6),  the  date
‘31  December  1998’ 
replaced  by
‘31  December  2000’;

shall  be 

6.

in  Article  26(1),  the  terms  ‘C2/CP3’  shall  be  replaced
by  ‘CN22/CN23’;

7.

in  Annex  I,  note  5.2:

(a) between  the  indents:

‘— artificial  man-made  filaments’  and

‘— synthetic  man-made 
polypropylene’

staple 

fibres 

of

the  following  shall  be  inserted:

‘— current  conducting  filaments’;

(b)

the  fifth  example  (‘A  carpet  with  tufts  . . .  are
met.’)  shall  be  deleted;

For  the  purposes  of  applying  the  provisions  of
5.
paragraphs 3 and 4, ‘total added value’ shall be taken
to  mean  all  costs  arising  outside  the  Community  or
the  Czech  Republic,  including  the  value  of  the
materials  incorporated  there.

8. Annex  II  shall  be  amended  as  follows:

(a)

the  following  shall  be  inserted  between  the
entries  for  HS  heading  Nos  2202  and  2208:

‘HS-heading
No

(1)

2207

Description  of  product

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

(2)

(3)

or

(4)

Undenatured  ethyl  alcohol  of  an
alcoholic strenght by volume of 80 %
vol or higher; ethyl alcohol and other
spirits,  denatured,  of  any  strenght

Manufacture:

— using  materials  not  classified  in

heading  Nos  2207  or  2208’

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(b)

the  entry  for  Chapter  57  shall  be  replaced  by:

‘Chapter  57

Carpets 
coverings

and 

other 

textile 

floor

— of  needleloom  felt

Manufacture  from (1):

— natural  fibres  or

— chemical  materials  or  textile  pulp

However:

— polypropylene  filament  of  heading

No  5402,

— polypropylene 

fibres  of  heading

Nos  5503  or  5506,

— polypropylene 

filament 

tow  of

heading  No  5501,

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

— jute  fabric  may  be  used  as  backing

— of  other  felt

Manufacture  from (1):

— other

— natural  fibres  not  carded  or  combed
or  otherwise  processed  for  spinning,
or

— chemical  materials  or  textile  pulp

Manufacture  from (1):

— coir  or  jute  yarn (a),

— synthetic  or  artifical  filament  yarn,

— natural  fibres,  or

— man-made staple fibres not carded or
combed  or  otherwise  processed  for
spinning

— jute  fabric  may  be  used  as  backing

(1) For  special  conditions  relating  to  products  made  of  a  mixture  of  textile  materials,  see  introductory  note  5.
(a) The  use  of  jute  yarn  is  authorised  from  1  July  2000.’

(c)

the  entry  for  HS  heading  No  7006  shall  be  replayed  by:

‘7006

Glass  of  heading  Nos  7003,  7004  or
7005,  bent,  edgeworked,  engraved,
drilled,  enamelled  or  otherwise  worked,
but  not  framed  or  fitted  with  other
materials:

— glass  plate  substrate  coated  with
dielectric  thin  film,  semi-conductor
grade,  in  accordance  with  SEMII
standards (1)

Manufacture 
plate  substrate  of  heading  No  7006

from  non-coated  glass

— other

Manufacture  from  materials  of  heading
No  7001

(1) SEMII  —  Semiconductor  Equipment  and  Materials  Institute  Incorporated.’

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(d)

the  rule  for  HS  heading  No  7601  shall  be  replaced  by:

‘7601

Unwrought  aluminium

Manufacture  in  which:

— all  the  materials  used  are  classified
within  a  heading  other  than  that  of
the  product;  and

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

or

Manufacture  by  thermal  or  electrolytic
treatment  from  unalloyed  aluminium  or
waste  and  scrap  of  aluminium’

9. the  following  Annex  shall  be  added:

‘ANNEX  V

List of products originating in Turkey to which the provisions of Articles 3 and 4 do not apply, listed in
the  order  of  HS  Chapters  and  Headings

Chapter  1

Chapter  2

Chapter  3

0401  and  0402

ex 0403

0404  to  0410

0504

0511

Chapter  6

0701  to  0709

ex 0710

ex 0711

0712  to  0714

Chapter  8

Buttermilk,  curdled  milk  and  cream,  yoghurt,  kephir  and  other  fermented
or  acidified  milk  and  cream,  whether  or  not  concentrated  or  containing
added  sugar  or  other  sweetening  matter

Vegetables,  except  sweetcorn  of  heading  No  0710 40 00  (uncooked  or
cooked  by  steaming  or  boiling  in  water),  frozen

Vegetables,  except  sweetcorn  of  heading  No  0711 90 30,  provisionally
preserved  (for  example,  by  sulphur  dioxide  gas,  in  brine,  in  sulphur  water
or  in  other  preservative  solutions),  but  unsuitable  in  that  state  for
immediate  consumption

ex Chapter  9

Coffee,  tea  and  spices,  excluding  maté  of  heading  No  0903

Chapter  10

Chapter  11

Chapter  12

ex 1302

Pectic  substances,  pectinates  and  pectates

1501  to  1514

ex 1515

Other  fixed  vegetable  fats  and  oils  (excluding  jojoba  oil  and  its  fractions)
and  their  fractions,  whether  or  not  refined,  but  not  chemically  modified

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Animal  or  vegetable  fats  and  oils  and  their  fractions,  partly  or  wholly
hydrogenated,  inter-esterified,  re-esterified  or  elaidinised,  whether  or  not
refined, but not further prepared, excluding hydrogenated castor oil known
as  “opal-wax”

Margarines,  imitation  lard  and  other  prepared  edible  fats

Residues  resulting  from  the  treatment  of  fatty  substances  or  animal  or
vegetable  waxes,  excluding  degras

Other  sugars,  including  chemically  pure  lactose,  maltose,  glucose  and
fructose,  in  solid  form;  sugar  syrups  not  containing  added  flavouring  or
colouring  matter;  artificial  honey,  whether  or  not  mixed  with  natural
honey,  caramel  excluding  that  of  heading  Nos  1702 11 00,  1702 30 51,
1702 30 59,  1702 50 00  and  1702 90 10

Pasta,  stuffed,  containing  more  than  20 %  by  weight  of  fish,  crustaceans,
molluscs  or  other  aquatic  invertebrates,  sausages  and  the  like  or  meat  and
meat  offal  of  any  kind,  including  fats  of  all  kinds

Cucumbers  and  gherkins,  onions,  mango  chutney,  fruit  of  the  genus
Capsicum  other  than  sweet  peppers  or  pimentos,  mushrooms  and  olives,
prepared  or  preserved  by  vinegar  or  acetic  acid

Other vegetables prepared or preserved otherwise than by vinegar or acetic
acid,  frozen,  other  than  products  of  heading  No  2006,  excluding  potatoes
in  the  form  of  flour,  meal  or  flakes,  and  sweetcorn

Other vegetables prepared or preserved otherwise than by vinegar or acetic
acid,  not  frozen,  other  than  products  of  heading  No  2006,  excluding
potatoes  in  the  form  of  flour,  meal  or  flakes,  and  sweetcorn

Fruit,  nuts  and  other  edible  parts  of  plants,  otherwise  prepared  or
preserved,  whether  or  not  containing  added  sugar  or  other  sweetening
matter  or  spirit,  not  elsewhere  specified  or  included,  excluding  peanut
butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of
plants containing 5 % or more by weight of starch, vine leaves, hop shoots
and  other  similar  edible  parts  of  plants

Flavoured  and  coloured  sugar,  syrups

Undenatured  ethyl  alcohol  of  an  alcoholic  strength  by  volume  of  80 %  vol
or  higher  obtained  from  agricultural  produce  listed  here

Undenatured  ethyl  alcohol  of  an  alcoholic  strength  by  volume  of  less  than
80 %  vol  obtained  from  agricultural  produce  listed  here’

ex 1516

ex 1517  and
ex 1518

ex 1522

Chapter  16

1701

ex 1702

1703

1801  and  1802

ex 1902

ex 2001

2002  and  2003

ex 2004

ex 2005

2006  and  2007

ex 2008

2009

ex 2106

2204

2206

ex 2207

ex 2208

2209

Chapter  23

2401

4501

5301  and  5302

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This  Decision  shall  enter  into  force  on  1  January  1999.

Article  2

Done  at  Brussels,  21  December  1998.

For  the  Association  Council

The  President

J.  KAVAN