Decision No 2/1999 of the Association Council between the European Communities and their Member States, of the one part, and the Slovak Republic, of the other part of 12 May 1999 amending Protocol 4 to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Slovak Republic, of the other part
Date: 1999-05-12
Institutions: EC–Slovakia Association Council
Subjects: Slovakia, administrative cooperation, association agreement (EU), originating product

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Official Journal of the European Communities

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II

(Acts whose publication is not obligatory)

COUNCIL

DECISION No 2/1999 OF THE ASSOCIATION COUNCIL

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

of 12 May 1999

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

(1999/369/EC)

THE ASSOCIATION COUNCIL,

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

(1) 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, Slov-
the European Economic Area (hereinafter
enia,
referred to as ‘the EEA'), Iceland, Norway and Swit-
zerland;

(2) Whereas it would seem advisable to maintain 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;

(3) Whereas, in view of the particular arrangements on
industrial
the
Community and Turkey, it would also be appro-

obtaining

products

between

(1) OJ L 359, 31.12.1994, p. 2.
(2) Protocol 4 was replaced by Association Council Decision No

2/97 (OJ L 212, 5.8.1997, p. 1).

priate to extend the cumulation system to such
products originating in Turkey;

(4) Whereas to facilitate trade and simplify adminis-
trative tasks it is desirable to amend the wording of
Articles 3, 4 and 12 of Protocol 4;

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

HAS DECIDED AS FOLLOWS:

Article 1

Protocol 4 concerning the definition of the concept of
‘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
prices minus the customs value of each of the
materials incorporated which originate in the other

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countries referred to in Articles 3 and 4 or, where
the customs value is not known or cannot be ascer-
tained, the first price verifiably paid for the prod-
ucts in the Community or the Slovak Republic.'

Article 4

Cumulation in the Slovak Republic

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

‘Article 3

Cumulation in the European Community

1. Without prejudice to the provisions of Article
2(1) products shall be considered as originating in the
Community if such products are obtained there, incor-
porating materials originating in the Community,
Bulgaria, Poland, Hungary, the Czech Republic, the
Slovak Republic, Romania, Lithuania, Latvia, Estonia,
Slovenia,
Iceland, Norway, Switzerland (including
Liechtenstein (*)) or Turkey (**) in accordance with the
provisions of the Protocol on rules of origin annexed
to the Agreements between the Community and each
of
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 suffi-
cient working or processing.

these countries, provided that

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

Products, originating in one of

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

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

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

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

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

Products, originating in one of

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

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

The Slovak Republic shall provide the Community,
through the Commission of the European Communi-
ties, with details of the Agreements and their corre-
sponding rules of origin, which are applied with the
referred to in paragraph 1. The
other countries
Commission of
shall
the European Communities
publish in the Official Journal of the European
Communities (C series) the date on which the cumula-
tion, provided for in this Article, may be 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 des
not apply to materials originating in Turkey
which are mentioned in the list at Annex V to
this Protocol.'

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3. Article 12 shall be replaced by the following:

‘Article 12

Principle of territoriality

incorporated in the territory of

product, the total value of the non-originating mate-
rials
the party
concerned, taken together with the total added value
acquired outside the Community or
the Slovak
Republic by applying the provisions of this Article,
shall not exceed the stated percentage.

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

5.
For the purposes of applying the provisions of
paragraph 3 and 4, “total added value” shall be taken to
mean all costs arising outside the Community or the
Slovak Republic, including the value of the materials
incorporated there.

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

(a) the returning goods are the same as those that were

exported, and

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

3.
The acquisition of originating status in accord-
ance with the conditions set out in Title II shall not be
affected by working or processing done outside the
Community or
the Slovak Republic on materials
exported from the Community or the Slovak Republic
and subsequently reimported there, provided:

(a) the said materials are wholly obtained in the
Community or the Slovak Republic or have under-
gone working or processing beyond the insufficient
operations
to being
listed in Article 7 prior
exported, and

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 consid-
ered sufficiently worked or processed only ifl
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 Slovak Republic shall be done
under the outward processing arrangements, or similar
arrangements.'

4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32, the phrase
‘referred to in Article 4' shall be replaced by ‘referred
to in Articles 3 and 4'.

5. In the last paragraph of Article 15(6), the date ‘31
December 1998' shall be replaced by ‘31 December
2000'.

6. In Article 26(1), the terms ‘C2/CP3' shall be replaced

by ‘CN22/CN23'.

7. In Annex I, Note 5.2:

(b) it can be demonstrated to the satisfaction of the

customs authorities that:

(a) between the indents

(i) the reimported goods have been obtained by
working or processing the exported materials,
and

(ii) the total added value acquired outside the
Community
Slovak Republic by
the
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.

or

4.
For the purposes of paragraph 3, the conditions
for acquiring originating status set out in Title II shall
not apply to working or processing done outside the
Community or the Slovak Republic. But where, in the
list in Annex II, a rule setting a maximum value for all
the non-originating materials incorporated is applied
the end
in determining the originating status of

‘ artificial man-made filaments' and

‘ synthetic man-made staple fibres of polypropy-

lene',

the following shall be inserted:

‘ current conducting filaments';

(b) the fifth example (‘a carpet with tufts. . . are met.')

shall be deleted.

8. Annex II shall be ameded as follows:

(a) the following shall be inserted between the entries

for HS heading Nos 2202 and 2208:

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‘HS heading No

Description of product

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

(1)

(2)

(3)

or

(4)

2207

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

Manufacture:
 using materials not classified in
heading Nos 2207 or 2208'

(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
heading No 5501,

tow of

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

backing

 Of other felt

 Other

Manufacture from (1):
 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 artificial

filament

yarn,

 natural fibres, or
 man-made
fibres not
staple
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.'

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(c) the entry for HS heading No 7006 shall be replaced by:

‘7006

enamelled or

Glass of heading Nos 7003, 7004 or
7005, bent, edgeworked, engraved,
drilled,
otherwise
worked, but not
framed or fitted
with other materials:
 glass plate substrate coated with
dielectric thin film, semi-con-
ductor grade, in accordance with
SEMII standards (1)

 other

Manufacture from non-coated glass
plate substrate of heading No 7006

Manufacture
heading No 7001

from materials

of

(1) SEMII  Semiconductor Equipment and Materials Institute Incorporated.'

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

‘7601

Unwrought aluminium

Manufacture in which:
 all the materials used are classi-
fied within a heading other than
that of the product; and

 the value of all

the materials
used does not exceed 50 % of
the
the
product

ex-works price

of

or
Manufacture by thermal or electro-
lytic
from unalloyed
aluminium or waste and scrap of
aluminium'

treatment

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 to 0402

ex 0403

0404 to 0410

0504

0511

Chapter 6

0701 to 0709

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

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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 0710

ex 0711

0712 to 0714

Chapter 8

ex Chapter 9

Cofffee, 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

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

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

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogen-
ated, 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 sweet corn

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

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

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ex 2106

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'

2204

2206

ex 2207

ex 2208

2209

Chapter 23

2401

4501

5301 et 5302

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

It shall apply as from 1 January 1999.

Article 2

Done at Brussels, 12 May 1999.

For the Association Council

The President

J. FISCHER