Decision No 2/1999 of the Association Council between the European Communities and their Member States, of the one part, and the Republic of Latvia, of the other part, of 8 December 1999 amending Protocol 3 to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Latvia, of the other part
Date: 1999-12-08
Institutions: EC–Latvia Association Council
Subjects: Latvia, administrative cooperation, association agreement (EU), customs regulations, originating product, protocol to an agreement

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II

(Acts whose publication is not obligatory)

COUNCIL

DECISION No 2/1999 OF THE ASSOCIATION COUNCIL BETWEEN THE EUROPEAN COMMUNI-
TIES AND THEIR MEMBER STATES, OF THE ONE PART, AND THE REPUBLIC OF LATVIA, OF
THE OTHER PART

amending Protocol 3 to the Europe Agreement establishing an association between the European
Communities and their Member States, of the one part, and the Republic of Latvia, of the other
part

of 8 December 1999

(2000/10/EC)

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an asso-
ciation between the European Communities and their Member
States, of the one part, and the Republic of Latvia, of the other
part (1), signed in Brussels on 12 June 1995, and in particular
Article 38 of Protocol 3 (2) thereof,

(1) Whereas the definition of the term ‘originating products’
in Protocol 3 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 (herein-
after referred to as ‘the EEA’), Iceland, Norway and Swit-
zerland;

(2) Whereas it would seem advisable to maintain in opera-
tion until 31 December 2000 the system of flat rate
charges provided for in Article 15 of Protocol 3 in
connection with the prohibition of drawback and
exemption from customs duty;

(3) 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;

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

(5) Whereas, to take account of changes in processing tech-
niques and shortages of certain raw materials, some
corrections must be made to the list of working and

(1) OJ L 26, 2.2.1998, p. 3.
(2) Protocol 3 was replaced by an Association Council Decision (not

yet published in the Official Journal).

processing requirements which non-originating materials
have to fulfil to qualify for originating status,

HAS DECIDED AS FOLLOWS:

Article 1

Protocol 3 concerning the definition of the concept of ‘origin-
ating 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 incor-
porated which originate in the other countries referred
to in Articles 3 and 4 or, where the customs value is not
known or cannot be ascertained, the first price verifiably
paid for the products in the Community or Latvia.’

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

‘Article 3

Cumulation in the European Community

shall be

1. Without prejudice to the provisions of Article 2(1)
products
considered as originating in the
Community if such products are obtained there, incorpor-
ating materials originating in the Community, Bulgaria,
Poland, Hungary, the Czech Republic, the Slovak Republic,
Iceland,
Romania, Lithuania, Latvia, Estonia, Slovenia,
or
Norway,
Turkey (**)
the
Protocol on rules of origin annexed to the Agreements
these countries,
between the Community and each of

Liechtenstein (*))
in accordance with the provisions of

Switzerland

(including

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provided that the working or processing carried out in the
Community goes beyond that referred to in Article 7 of this
Protocol. It shall not be necessary that such materials have
undergone sufficient working or processing.

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

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 origin-
ating 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 manu-
facture 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 iden-
tical to those given in this Protocol.

the European Communities, with details of

The Community shall provide Latvia, through the Commis-
the
sion of
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 require-
ments.

Article 4

Cumulation in Latvia

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

this Protocol.

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

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

the European Communities, with details of

Latvia shall provide the Community, through the Commis-
sion 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 require-
ments.

(*) 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 material's 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

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
in Title II must
continue to be fulfilled at all times in the Community or
Latvia.

set out

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

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

exported; and

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

set out

The acquisition of originating status in accordance
3.
with the conditions
shall not be
affected by working or processing done outside the
Community or Latvia on materials exported from the
Community or Latvia and subsequently reimported there,
provided:

in Title II

(a) the

said materials

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

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(b) it can be demonstrated to the satisfaction of

the

customs authorities that:

sufficiently worked or processed only if the general values
fixed in Article 6(2) are applied.

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

(ii) the

total

value

added

acquired outside

the
Community or Latvia by applying the provisions
of this Article does not exceed 10 % of the ex-
works price of the end product for which origin-
ating status is claimed.

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

the party concerned,

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

6.
The provisions of paragraphs 3 and 4 shall not
apply to products which do not fulfil the conditions set
out in the list in Annex II or which can be considered

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

Any working or processing of the kind covered by
8.
the provisions of
this Article and done outside the
Community or Latvia 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 by ‘referred to
in Articles 3 and 4’;

in the last paragraph of Article 15(6),
December 1998’
2000’;

the date ‘31
shall be replaced by ‘31 December

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 staple fibres of polypro-
pylene’,
‘— current
conducting filaments’;

the following shall be inserted:

(b) the fifth Example (‘A carpet with tufts (...) are met.’)

shall be deleted;

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

Description of product

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

(1)

2207

(2)

(3)

o

(4)

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 and other textile floor coverings

— 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
product

the ex-works price of

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— Of other felt

— Other

— jute fabric may be used as backing
Manufacture from (1):
— natural

fibres not carded or combed or

otherwise processed for spinning,
or

— chemical materials or textile pulp

Manufacture from (1):
— coir or jute yarn (a)
— synthetic or artificial filament yarn,
— natural fibres, or
— man-made staple fibres not carded or
combed or otherwise processed for spin-
ning

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 replaced 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 accord-
ance with SEMII standards (1)

— other

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

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

‘7601

Unwrought aluminium

Manufacture
substrate of heading No 7006

from non-coated glass plate

Manufacture from materials of heading No
7001

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 treat-
ment from unalloyed aluminium or waste and
scrap of aluminium’

9. the following Annex V shall be added:

‘ANNEX V

List of products originating in Turkey to which the provisions of Article 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

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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0404 to 0410

0504

0511

Chapter 6

0701 to 0709

ex 0710

ex 0711

0712 to 0714

Chapter 8

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
in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption
brine,

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

ex 1516

ex 1517 and
ex 1518

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

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

Margarines,

imitation lard and other prepared edible fats

ex 1522

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

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

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 aicd, 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

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

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ex 2208

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

2209

Chapter 23

2401

4501

5301 and 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, 8 December 1999.

For the Association Council

The President

I. BĒRZIŅŠ