Proposal for a Council Decision on the association of the overseas countries and  territories with the European Community ('Overseas')
Date: 2000-11-15
Institutions: European Commission
Subjects: association agreement (EU), international affairs, overseas countries and territories

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 15.11.2000
COM(2000) 732 final

Proposal for a

COUNCIL DECISION

on the association of the overseas countries and
territories with the European Community
('Overseas')

(presented by the Commission)

Summary

PART ONE: GENERAL PROVISIONS

Chapter 1: Guidelines

Article 1

Article 2

Article 3

Aim, objectives and principles

Basic elements

The least-developed OCTs

Chapter 2: The institutional framework: trilateral partnership and bilateral management

Article 4

Article 5

Article 6

Chapter 3: The actors

Article 7

Article 8

Article 9

Trilateral partnership

ACP-EC Joint Assembly

Bilateral management

Principles

The different actors involved

Responsibilities of the actors

PART TWO: THE AREAS OF EC-OCT COOPERATION

Article 10

Article 11

Article 12

Article 13

Article 14

Article 15

Article 16

The areas

Productive sectors

Trade development

Trade in services

Trade-related areas

Social sectors

Regional cooperation and integration

2

Article 17

Cultural and social cooperation

PART THREE: THE INSTRUMENTS OF EC-OCT COOPERATION

Title I. Development finance cooperation

Chapter 1: General provisions

Article 18

Article 19

Article 20

Article 21

Article 22

Article 23

Article 24

Objectives

Principles

Guidelines

Scope of financing

Eligibility for financing

Programming and implementation

EDF-OCT Committee

Chapter 2: Resources made available to the OCTs

Article 25

Financial assistance

Chapter 3: Private sector investment support

Article 26

Article 27

Investment promotion

Investment support and financing

Chapter 4: Additional support in the event of fluctuations in export earnings

Article 28

Additional support

Chapter 5: Support for other actors of cooperation

Article 29

Objectives and financing

Chapter 6: Support for humanitarian and emergency aid

Article 30

Objectives and means

Chapter 7: Implementation procedures

3

Article 31

Article 32

Technical assistance

Financial control

Chapter 8: Transition from previous EDFs to the 9th EDF

Article 33

Implementing the previous EDFs and the transitional
phase

Title II: Economic and trade cooperation

Article 34

Objective

Chapter 1: Arrangements for trade in goods

Article 35

Article 36

Article 37

Article 38

Article 39

Article 40

Article 41

Chapter 2: Trade in services

Article 42

Article 43

Article 44

Article 45

Chapter 3: Trade-related areas

Free access for originating products

Transhipment of non-originating products in free
circulation in the OCTs

Quantitative restrictions and measures having
equivalent effect: prohibitions

Hazardous, non-hazardous and radioactive waste

Measures adopted by the OCTs

Surveillance clause

Safeguard measures

Objective

General principles of establishment and the provision
of services

Subsequent amendments

Maritime transport

4

Article 46

Article 47

Article 48

Article 49

Article 50

Article 51

Article 52

Current payments and capital movements

Competition policies

Protection of intellectual property rights

Standardisation and certification

Trade and the environment

Trade and labour standards

Consumer policy and consumer health protection

Chapter 4: Monetary and tax matters

Article 53

Article 54

Tax carve-out clause

Tax and customs arrangements for EC-funded
contracts

Article 55

Taxation of savings income

PART FOUR: ARRANGEMENTS APPLICABLE TO INDIVIDUALS

Article 56

Article 57

Article 58

Article 59

Article 60

Professional qualifications

Vocational training

Programmes open to the OCTs

Euro-Info Correspondence Centres (EICC)

Citizenship of the Union

PART FIVE: FINAL PROVISIONS

Article 61

Article 62

Article 63

Change of status

Review

Entry into force

5

Article 64

Publication

6

Annexes

Annex IA

List of OCTs

Annex IB

List of OCTs considered the least developed

Annex IIA

Community financial assistance: allocation by instrument

Annex IIB

Community financial assistance: European Investment Bank

Annex IIC

Community financial assistance: EIB-managed Investment Facility

Annex IID

Annex IIE

Annex IIF

Annex III

Annex 1 to
ANNEX III

Annex 2 to
ANNEX III

Annex 3 to
ANNEX III

Annex 4 to
ANNEX III

Annex 5A to
ANNEX III

Annex 5B to
ANNEX III

Annex 6 to
ANNEX III

Annex 7 to
ANNEX III

Annex IV

Annex 1 to
ANNEX IV

Community financial assistance: Additional support in the event of
short-term fluctuations in export earnings

Community financial assistance: Budgetary aid for developing
countries

Community financial assistance: Community programmes open to the
OCTs

Concept of "originating products" and methods of administrative
cooperation

Introductory note to the list in Annex 2 to Annex III

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

Form for movement certificate

Invoice declaration

Supplier declaration for products having preferential origin status

Supplier declaration for products not having preferential origin status

Information Certificate

Form for application for a derogation

the import

Conditions for
originating in the OCTs but
methods of administrative cooperation relating thereto

into the Community of products not
in free circulation in the OCTs and

EXP. 1 transhipment certificate

7

Annex V

Movements of hazardous and radioactive waste

Annex VI

Euro-Info Correspondence Centres (EICC)

8

EXPLANATORY MEMORANDUM

OCT 2000

Proposal for a Decision of the Council: 'Overseas'

1.

BACKGROUND

Council Decision 91/482/EEC of 25 July 1991 on the association of the OCTs with the
EC,1 as amended by Council Decision 97/803/EC of 24 November 19972 and extended
by Council Decision 2000/169/EC of 25 February 20003 is applicable until 28 February
2001.

The attached proposal for a Decision is intended to succeed it with effect from 1 March
2001.

The broad lines of the new Decision were traced out by Declaration No 36 on the
overseas countries and territories annexed to the Final Act of the Treaty of Amsterdam: a
"Declaration concerning the Overseas Countries and Territories" was in fact inserted in
the Final Act by the Conference. In it, the Intergovernmental Conference compares the
development of the Community and the OCTs since 1957 and invites the Council, acting
in accordance with Article 136 of the Treaty establishing the European Community, to
review the association arrangements by February 2000, with a fourfold objective:

–

–

–

–

promoting the economic and social development of the OCTs more effectively;

developing economic relations between the OCTs and the European Union;

taking greater account of
individual OCTs, including aspects relating to freedom of establishment;

the diversity and specific characteristics of

the

and ensuring that the effectiveness of the financial instrument is improved".

In the light of the above Declaration, the proposal is based mainly on the texts and the
results of the consultations below:

–

–

the resolution adopted unanimously by Parliament on 11 February 1999 on
the basis of an own-initiative report of the Committee on Cooperation and
Development;

Commission communication COM(1999) 163 final of 20 May 1999
entitled "the Status of OCTs associated with the EC and options for 'OCT
2000'", in which the Commission described the OCTs and their status
under Community law, discussed the basic issue of the association of the
OCTs with the EC and set out the options for 2000;

1

2

3

OJ L 263, 19.9.1991, p.1.
OJ L 329, 29.11.1997, p. 50.
OJ L 55, 29.2.2000, p. 67.

9

–

–

consultations with the four Member States to which the twenty OCTs are
linked, and

in particular, the top-level meeting with the authorities of the twenty OCTs
held in Brussels on 29 and 30 April 1999 in the framework of the
Commission/Member State/OCT partnership.

2.

PRESENTATION

Conceptually and semantically, it draws on the EC-South Africa agreement and the
Cotonou Agreement with the ACP States.

As in the Cotonou Agreement, the text is condensed (67 articles instead of the 242 in the
previous Council Decision) with much of the detail put in the annexes.

3.

STRUCTURE

The structure of the document is simple, comprising five parts:

I.

Part One: General Provisions

Following an initial reminder of the principles and objectives contained in Part
Four of the Treaty (Articles 182 to 187), the emphasis is on the diversity of the
OCTs, in particular the least developed OCTs.

Reference is made to the institutions of the trilateral partnership, to which the
OCTs attach great importance.

II.

Part Two: Areas of Cooperation

in that development finance
A new item is introduced here (post-Lomé)
cooperation also covers trade in services and trade-related areas to help the
OCTs adjust to the changing world economy.

III. Part Three: Instruments of Cooperation

A - Title I. Development finance cooperation

The overall amounts were decided at the same time as the ACP EDF funding by
the Internal Agreement concerning the 9th EDF.

Four types of resources:

– programmable allocations (OCTs and regional cooperation)

– investment facility (= Cotonou)

– additional support

fluctuations in export earnings,
emergency and refugee aid, supplementary allocations for the most
efficient OCTs (Cotonou)

in the event of

10

– EIB own resources loans.

Lastly, a fifth resource (budgetary) is explicitly mentioned: eligibility for
general measures financed by the budget headings open to the developing
countries (emergency aid, AIDS, etc.).

Both the European Parliament (11.2.1999) and the OCTs, backed by their
Member States (30.4.1999), wanted:

– a special OCT fund in the budget,

– ERDF-type management.

As the 2000-2006 financial perspectives have already been adopted, the earliest
starting date for the solution of a special OCT fund would be 2007.

it

is already proposed to use the ERDF-inspired procedure for
However,
implementation of the programmable allocation ('9th EDF'). This represents a
major change.

1. This innovation has been introduced, in particular, in response to the very
critical comments made at the Partnership meeting in April 1999 about the
implementation of the previous Association decisions. These working methods,
which are modelled on ERDF procedures, are to be the subject of specific
implementing provisions in the “Overseas” Decision. This proposal covers the
general guidelines for such provisions, which must take particular account of the
on-going reorganisation in the Commission’s RELEX services.

This approach is based on the principles of partnership, complementarity and
subsidiarity:

– it is implemented on the basis of development objectives, strategies and

priorities adopted by the competent OCT authorities,

– it is flexible and tailored to the situation of each OCT.

The competent OCT authorities prepare and submit to the Commission a draft
Single Programming Document (SPD), which is adopted by a single financing
decision of the ad hoc EDF-OCT Committee once the consultation stage has
been completed.

Implementation is the responsibility of
the general
implementing rules are established by the Commission and annexed to each
SPD.

the OCT concerned;

To assess the effectiveness of the Community measures, a series of audits and
ex-ante, mid-term and ex-post evaluations is provided for. The OCT concerned
has primary responsibility for the financial supervision of the operation, but the
Commission has powers of coercion in the event of shortcomings on the part of
the OCT concerned.

11

2. The methodological approach proposed involves the introduction of two new
features:

– the "Investment Facility", reimbursable aid to promote commercially
viable enterprises in the private sector or enterprises in the public sector
that support the development of the private sector

– additional support

in the event of fluctuation in export earnings; the

support mechanism is triggered when various conditions are met.

B. - Title II. Economic and trade cooperation

Trade in products, trade in services, trade-related areas.

1. The main aspects of the proposal with regard to products are:

(a) Full freedom of access, as there has been since 1991, to the EC market
(unlike the ACP States) for products originating in the OCTs, subject to the
special provisions for two especially sensitive CAP sectors (rice and sugar).

This is the only case in all the Community agreements, hence the importance of
ACP-OCT cumulation of origin which concerns two different access regimes
and has therefore given rise to flows of ACP products via the OCTs: the
principle of restrictions on cumulation, thrashed out by the Council at the end of
1997, for the two sensitive products (rice and sugar) is therefore maintained.
The proposal also involves setting aside a quota for the least-developed OCTs
within the quantity limit on rice (160 000 t) and opening a tariff quota for butter.

These changes take due account of experience acquired since the adoption of
Decision 91/482/EC. It has been difficult to achieve a balance between the
principle of free access to the Community market for OCT products on the one
hand and the objectives of the common agricultural policy on the other. In some
cases, the Commission and the Council have had to impose safeguard measures,
which in turn have generated a large number of legal actions in the Court of
Justice or the Tribunal of First Instance (more than 30 cases to date).

The Commission considers that a long term solution for this problem can be
found by granting market access subject to certain pre-determined conditions,
rather than by preserving a theoretically completely free regime, subject to the
risk of exceptional safeguard measures. Such an approach would in particular
guarantee operators stable and predictable market access conditions.

For the moment, the OCTs may maintain customs duties (non-discriminatory
and most favoured nation, except vis-à-vis other developing countries). This
situation might be subject
review in the negotiations on the
establishment of the regional free trade agreements provided for in the Cotonou
Agreement, in particular with regard to relations between the OCTs and some of
the Community's outermost regions.

to a joint

(b) Apart from the restrictions on cumulation decided in 1997, origin rules have
not changed since 1985. Since the Essen European Council, they have been
subject to the general harmonisation of preferential rules of origin basically

12

involving a new, simplified and modernised presentation designed to keep up
with technological change.

In a few cases the proposed changes consist of new procedures (invoice
declarations as proof of origin) as well as some improvements (minimum
operations) designed to encourage traders who make a genuine contribution to
local development.

Minimal operations do not actually confer OCT origin and, moreover, are
excluded from cumulation. The list of minimal operations has been updated
accordingly to take account of the objectives of local development and origin
rule harmonisation.

Finally, it is also proposed to align the procedure for the technical up-dating of
rules of origin on the procedure laid down in the Customs Code for other
preferential arrangements.

(c) Free access to the EC market for non-originating products in free circulation
in the OCTs after the EC customs duty has been paid in the OCT concerned
(known since 1991 as transhipment).

This development instrument was invented in 1991 and is unique to the OCTs,
consisting of a budget transfer to the OCT budget (and a shortfall to be made
good in the EC budget). But, as some OCTs are suspected of having refunded
some of the customs duties to operators or granting them transport subsidies to
compensate their distance from the EC market, a 'state aids'-type clause has been
added: the Commission may authorise 'state' aid or OCT aid in exceptional cases
subject to a committee opinion.

2. On trade in services, besides the fact that it will come under development
finance cooperation, as mentioned above, the arrangements for establishment
and the provision of services are the main feature:

– the Community may not discriminate between OCTs;

– the OCTs may not discriminate between Member States;

– OCTs may give preference to their inhabitants; the clause requiring the
Commission's prior approval has been deleted: this principle can be seen
as the corollary of allowing the OCTs to maintain customs duties on EC
products.

As in the past, the Community may not discriminate against OCT companies,
firms or nationals on its market with the rider that this 'national treatment' is
granted to them only in the context of undertakings entered into under GATS to
avoid the Community being forced to extend such favourable treatment across
the board to all WTO members. Likewise, to help OCTs which have entered into
undertakings under GATS avoid the same pitfall, it is clearly stated that non-
discrimination against Community companies, firms and nationals on the OCT
markets is without prejudice to any such undertakings under GATS.

13

In the field of trade in services, the new references to GATS will have the effect
of bringing the Decision into line with OCT rules. Although they depart
somewhat from the principle of non-discrimination as set out in the Treaty
(Article 183(5)), that principle only in fact applies, according to the same
Article, subject to special provisions adopted by the Council which has already
allowed exceptions to it in favour of OCTs allowing them to give preference to
their own nationals (see third indent above).

On the subject of trade in goods, the Treaty provides for the abolition of customs
duties in EC-OCT trade while at the same time allowing the OCTs to levy duties
which meet the needs of their development and industrialisation or produce
revenue for their budgets.

The issue of the Association's compatibility with WTO rules is of particular
concern as the Community has reaffirmed its solidarity with the OCTs and also
expressed the importance it attaches to undertakings entered into under the
WTO. The question must therefore be seen in this dual perspective.

Even if the OCTs could waive the customs duties which the Treaty allows them
to levy, the sudden introduction of reciprocity under this new proposal would be
inappropriate. On political, if not legal grounds (see CJEC judgments), the
OCTs can claim treatment that is no less favourable than that accorded to the
ACP States. Given as well that the OCTs are small vulnerable islands, it is better
to wait until the end of the preparatory Cotonou period before broaching the
question of reciprocity in EC-OCT trade

Such a review will have to take account of changes in EC-ACP trade
arrangements. The inclusion of some OCTs - far from being an option for all of
them - in future economic partnership agreements between ACP States and the
EC might be one scenario requiring a review of the Decision.

IV. Part Four: Rights of individuals

This covers features specific to the OCTs in the light of various legal cases or
"internal" policies already open to OCT nationals
since 1991: certain
Community programmes (e.g. Erasmus, Socrates), Euro-Info Correspondence
Centres, EU citizenship for nationals having full citizenship of a Member State,
etc.

V. Part Five: Final provisions

In view of the substantial changes foreseen for the association arrangement after
2006, such as the move to budgetary funding and the anticipated negotiation of
the ACP/EC free trade agreements, it is proposed that the new Decision should
apply until 31 December 2007, when the 9th EDF also expires.

Lastly, a review clause has been added so that there is prior agreement on the
eventual need to bring the rules on trade and services into line with the WTO
(see III above).

For these reasons, the Commission submits the attached proposal to the Council
for adoption.

14

Proposal for a

COUNCIL DECISION

on the association of the overseas countries and
territories with the European Community
('Overseas')

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, hereinafter referred
to as the Treaty, and in particular Article 187 thereof,

Having regard to the proposal from the Commission,4

Whereas:

(1)

(2)

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 EEC,5 as
amended by Council Decision 97/803/EC of 24 November 1997 and extended by
Council Decision 2000/169/EC of 25 February 2000,6 is applicable until 28
February 2001. Article 240(4) thereof states that the Council, acting unanimously
on a proposal from the Commission, shall establish the provisions to be laid down
for the subsequent application of the principles set out in Articles 182 to 186 of
the Treaty.

Declaration No 36 concerning the OCT, annexed to the final act of the
Amsterdam Conference, invites the Council, acting in accordance with Article
187 of the Treaty, to review the association arrangements with the OCTs with a
fourfold objective:

– promoting the economic and social development of the OCTs more

effectively;

– developing economic relations between the OCTs and the European

Union;

– taking greater account of the diversity and specific characteristics of the
individual OCTs, including aspects relating to freedom of establishment;

– and ensuring that the effectiveness of the financial instrument is improved.

4

5

6

OJ L 263, 19.9.1991, p. 1.
OJ L 55, 29.2.2000, p. 67.

15

(3)

(4)

(5)

(6)

(7)

(8)

(9)

On 11 February 1999 the European Parliament adopted a resolution on relations
between the OCTs, the ACP States and the outermost regions of the European
Union7 on the basis of the report by the Committee on Development and
Cooperation.8

In its communication of 20 May 1999 entitled "the Status of OCTs associated
with the EC and options for 'OCT 2000'",9 the Commission examined the features
and the development of the OCT-EC association since 1957, noted the basic
principles and the current situation of the association and sketched out alternative
policies for it for the period beginning 1 March 2000.

In accordance with Article 10 of Decision 91/482/EEC, the competent OCT
authorities informed the Commission of the amendments or additions they desired
in future, notably at a meeting held in the context of the partnership on 29 and 30
April 1999, attended by the Commission, the four Member States to which the
OCTs are linked and the 20 OCTs concerned.

The second paragraph of Article 182 of the Treaty states that the twofold aims of
the association of the OCTs with the Community are to promote the economic
and social development of the countries and territories and to establish close
economic relations between them and the Community as a whole.

The third paragraph of Article 182 of the Treaty adds that the "purpose of the
association shall be to further the interests and prosperity of the inhabitants of
these countries and territories in order to lead them to the economic, social and
cultural development to which they aspire".

Article 183 of the Treaty also lists the objectives of the association, referring in
particular
the financial contributions of Member States to the
development of the OCTs and the rights of individuals.

to trade,

Though not third countries, the OCTs do not form part of the single market and
must comply with the obligations imposed on non-member countries in respect of
trade, notably rules of origin, health and plant health standards and safeguard
measures, as the Court of Justice of the European Communities has confirmed.

(10) As a general rule, when the Council adopts measures under Article 187 of the
Treaty, it must take account both of the principles laid down in Part Four of the
Treaty and of the other principles of Community law.10 It should also take
account of experience acquired in the implementation of the trade arrangements
of Decision 91/482/EEC.

(11)

These arrangements provide for duty-free access for products originating in the
OCTs and rules of origin allowing cumulation with products originating in the
ACP States, which are subject to different arrangements, or in the Community.
This causes or threatens to cause serious disruption to the functioning of certain

7

8

9

10

PE 276.723.
PE 228.210, 1.12.1998.
COM (1999) 163 final, 20.5.1999, volumes I and II.
Judgment of the Court of 8.2.2000, Case C-17/98, point 38.

16

common market organisations under the common agricultural policy, in particular
those for rice and sugar. Such disruption has on a number of occasions led the
Commission and the Council to adopt safeguard measures.

(12) By limiting the scope for use of cumulation of origin, the changes made in
relation to rice at the mid-term review of the Decision11 have helped maintain
access for OCT products to the Community market on terms conducive to its
balance.

(13) However, as regards sugar, the rise in OCT exports made from sugar of ACP or
Community origin to a heavily oversupplied market has resulted in a greater
reduction in the quota for Community producers and therefore a greater loss of
guaranteed income for them.

(14)

The market surplus situation means that any additional imported quantity causes
disruption on the market and impacts on both producers and the Community
budget. It is impossible to tell when this situation can be remedied and when
additional imports can take place without the risk of disruption.

(15) Moreover, in view of the minimal, low value-added operations that currently
suffice to obtain the status of a product originating in the OCTs in the sugar
sector, the contribution of these exports to the development of the territories can
only be small at best and, without a doubt, out of all proportion to the disruption
caused to the Community sectors concerned.

(16)

(17)

(18)

(19)

For the above reasons, origin rules should therefore be adopted which exclude the
possibility of ACP/OCT/EC cumulation for sugar.

Provision should also be made to ensure that Community products enjoying
financial benefits to encourage their export outside the Community cannot be re-
imported by means of the cumulation procedure.

Furthermore, all the OCT rules of origin should be updated, in the interests of the
operators and administrations concerned, to take account of technical progress
and the policy adopted by the Community of origin-rule harmonisation. Likewise,
the procedure should be simplified to enable the necessary technical amendments
to the rules to be made more easily in future.

The OCTs are not part of the Community territory and secondary legislation
derived from the Treaty does not
therefore apply in them, barring express
provisions to the contrary. OCT nationals and products within the Community
must nevertheless comply with the Community rules in force.

(20) Most OCT nationals are citizens of the Union and must accordingly enjoy the
advantages and comply with the obligations that apply to citizenship thereof,
notwithstanding specific provisions adopted in that regard.

(21)

In the interests of efficiency, simplification and recognition of the management
capacities of the OCT authorities, the financial resources granted to the OCTs

11

Council Decision 97/803/EC, OJ L 329, 29.11.1997, p. 50.

17

should be managed more on the basis of partnership by applying procedures
based on the rules in force for the structural funds.

(22)

this purpose,

the procedures delegate the main responsibility for
For
programming and implementing cooperation to the OCTs
in particular.
Cooperation will be conducted predominantly in conformity with OCT territorial
regulations and will underpin Community and in particular Commission support
for the monitoring, evaluation and audit of the operations programmed.

(23) Global changes, reflected in the continuing process of trade liberalisation, broadly
implicate the Community, the OCTs' principal trading partner, as well as their
ACP neighbours and other economic partners. In the market access equation, the
level of tariffs plays an increasingly reduced role while trade in services and
trade-related areas assume an ever greater importance in the relationship between
the OCTs and their economic partners. That relationship should therefore be
fostered, while retaining the broad outline of the current trade arrangements, and
the conditions for the gradual integration of those OCTs who so wish into the
regional and global economy simplified by helping them to increase their capacity
to handle all these new areas.

(24)

(25)

(26)

(27)

This Decision must be without prejudice to any obligations entered into by the
OCTs or on their behalf within the WTO framework. Account should also be
taken of the great importance to the Council of the undertakings entered into in
the context of the WTO and the coherence between them and this Decision.

In accordance with Article 2 of Council Decision 1999/468/EC of 28 June 1999,
laying down the procedures for the exercise of implementing powers conferred on
the Commission, the measures necessary for the implementation of this Decision
should be adopted by use of the management procedure provided for in Article 4
of that Decision. However, as this concerns the implementation of the 9th EDF,
the voting and the majority must be as laid down in Article 21 of the Internal
Agreement between representatives of the Governments of the Member States,
meeting within the Council, on the financing and administration of Community
Aid under the Financial Protocol to the Partnership Agreement between the
African, Caribbean and Pacific States and the European Community and its
Member States signed in Cotonou (Benin) on 23 June 2000 and the allocation of
financial assistance for the Overseas Countries and Territories to which Part Four
of the EC Treaty applies,12 hereinafter the “Internal Agreement”.

The measures necessary for the implementation of Article 27(2) shall be adopted
by use of the consultative procedure laid down in Article 3 of Decision
1999/468/EC.

The measures necessary for the implementation of Annex III shall be adopted by
use of the procedure laid down in Article 249 of Regulation (EC) No 2913/92 of
12 October 1992 establishing the Community Customs Code.13

12

13

Doc.10688/00 ACP 114 FIN 313 PTOM 21 OJ L…p…..
OJ L 302, 19.10.1992, p.1.

18

(28)

(29)

In accordance with Council Decision 1999/95/EC of 31 December 1998,14 the
euro is the currency of St Pierre and Miquelon and Mayotte;

The Council must produce an innovative response to all the abovementioned new
factors which is both consistent and tailored to the variety of situations. A new
status for the association, known as 'Overseas', can provide such a response,

HAS DECIDED AS FOLLOWS:

PART ONE

GENERAL PROVISIONS OF THE ASSOCIATION

OF THE OCTs WITH THE EC

CHAPTER 1

GUIDELINES

Article 1

Aim, objectives and principles

1. The association of the OCTs with the EC shall be based on the aim set out in Article
182 of the Treaty, namely to promote the economic and social development of the OCTs
and to establish close economic relations between them and the Community as a whole.

It shall pursue the objectives laid down in Article 183 of the Treaty in accordance with
the principles set out in Articles 184 to 188 of the Treaty by focusing on the reduction
and eventual eradication of poverty and on sustainable development and gradual
integration into the regional and world economies.

2. The association relates to the OCTs listed in Annex IA.

3. In accordance with Article 188 of the Treaty, this Decision shall apply to Greenland
subject to the specific provisions set out in the Protocol on the special arrangements for
Greenland annexed to the Treaty.

14

OJ L 30, 4.2.1999.

Article 2

Basic elements

19

1. The OCT-EC association shall be based on the principles of liberty, democracy,
respect for human rights and fundamental freedoms and the rule of law. These principles,
on which the Union is founded in accordance with Article 6 of the Treaty on European
Union, shall be common to the Member States and the OCTs linked to them.

2. Within the limits of the powers conferred upon the Community by the Treaty, any
measures decided by the Council on the basis of Article 13 thereof with a view to
combating discrimination based on sex, racial or ethnic origin, religion or belief,
disability, age or sexual orientation, shall be applicable, mutatis mutandis, to the OCTs in
the areas of cooperation to which this Decision refers.

3. The Member States to which the OCTs are linked shall be responsible for ensuring that
the principles referred to in paragraphs 1 to 3 above are complied with in their territories.

4. The Member States shall cooperate with the Commission to ensure that Community
funds are used in accordance with the principles of sound financial management.

Article 3

The least-developed OCTs

1. The Community shall accord special treatment to the least-developed OCTs and to
those unable to take advantage of the regional cooperation and integration referred to in
Article 16.

2. To respond to such difficulties, development finance cooperation shall comprise, inter
alia, special treatment when determining the volume of financial resources and the
conditions attached thereto in order to enable the least-developed OCTs to overcome
structural and other obstacles to their development. It shall pay special attention to
improving the living conditions of the poorest sections of the population in the context of
poverty alleviation.

3. The OCTs considered the least developed for the purposes of this Decision are listed in
Annex IB. This list shall be amended by decision of the Council, acting unanimously on
a proposal from the Commission, where the economic situation of an OCT undergoes a
significant and lasting change, necessitating its inclusion in the category of least-
developed OCTs or where its inclusion in that category is no longer warranted.

20

CHAPTER 2

THE INSTITUTIONAL FRAMEWORK:

TRILATERAL PARTNERSHIP AND BILATERAL MANAGEMENT

Article 4

Trilateral partnership

1. With the aim of enabling the OCT authorities to take a full part in the application of
the principles of the EC-OCT association, while respecting the powers of the respective
authorities of the Member States concerned, the association shall use a consultation
procedure based on the principle of partnership between the Commission, the Member
State and the OCTs.

This trilateral consultation shall hereinafter be referred to as the 'partnership'.

2. The partnership shall deal with all issues of principle arising from relations between
the OCTs and the Community.

3. The following two bodies shall be established to this end:

(a) OCT association working parties having an advisory capacity and comprising the
three partners referred to above may be convened at the request of one of the three
partners on a regional basis or by group of OCTs linked to a particular Member State.

The working parties may be set up on an ad hoc basis with whatever membership is the
most appropriate to deal with specific matters.

(b) An OCT-EU forum for dialogue, hereinafter referred to as the 'OCT Forum', shall
meet annually to bring together OCT authorities, representatives of the Member States to
which the OCTs are linked and the Commission.

The other Member States shall be informed of the proceedings of the annual OCT Forum
meetings. Such information shall be provided:

– before the meeting: the Commission shall send the agenda;

– after the meeting:

the Commission shall draw up a report on the

proceedings.

These other Member States may, where appropriate, be represented at the meeting if one
of the items on the agenda is of particular interest to them.

4. The Commission shall chair the working parties and the OCT Forum and provide the
secretariat.

21

A representative of the European Investment Bank, hereinafter referred to as the 'Bank',
shall be present at meetings when matters concerning it are on the agenda.

5. The opinions of the working parties and the OCT Forum shall, where appropriate, be
the subject of Commission decisions, within the limits of its powers, or of proposals from
the Commission to the Council with a view to implementation of new elements of the
OCT-EC association or its amendment on the basis of Article 187 of the Treaty.

Article 5

ACP-EC Joint Assembly

The competent OCT authorities shall be informed of the agenda, resolutions and
recommendations of the ACP-EC Joint Assembly.

At the request of these authorities, the Joint Assembly may invite members of the OCT
parliaments as observers to its biannual plenary sessions.

Article 6

Bilateral management

The Commission and the competent OCT authorities shall ensure the routine
management of this Decision on a bilateral basis, notably as regards development finance
cooperation and cooperation in the area of trade and services.

The Member States to which the OCTs are linked shall inform the Commission within
three months of the entry into force of this Decision of the competent national or local
authorities referred to in the various articles of the Decision.

CHAPTER 3

THE ACTORS

Article 7

Principles

1. The OCT authorities shall assume primary responsibility for the formulation of
development strategies and the preparation of cooperation programmes together with the
Community and the Member State to which the OCT is linked.

2. The Community shall recognise that local public and private actors play a key role in
achieving the objectives listed in Article 183 of the Treaty.

22

3. In implementing these guidelines the parties shall have as their guiding principles
transparency, subsidiarity and the need for efficiency.

Article 8

The different actors involved

1. The actors of development shall include in particular:

– the OCT authorities;

– the local authorities within the OCTs;

– civil society, social, business and trade associations, public service

providers and local, national or international NGOs.

2. The recognition of non-governmental actors shall depend on their capacity to meet the
needs of the local population, their expertise and their having democratic and accountable
organisation and management.

3. Non-governmental actors shall be identified by agreement between the relevant OCT
authorities and the Community taking into account the subject concerned, their expertise
and field of activity. The process of identification shall be conducted in each OCT as part
of the process for preparing and implementing cooperation strategies.

Article 9

Responsibilities of the actors

For the purposes of implementing the objectives listed in Article 183 of the Treaty, non-
governmental actors identified pursuant to Article 8(3) may play a role in:

– information and consultation;

– the preparation and implementation of cooperation programmes;

– decentralised cooperation in the context of responsibilities delegated for

the purpose of supporting local development initiatives.

23

PART TWO
THE AREAS OF EC-OCT COOPERATION

Article 10

The areas

The Community shall contribute to the development of those areas in the OCTs listed in
this Title in accordance with the priorities established in the development strategies for
each OCT or, where appropriate, in the form of regional measures.

Article 11

Productive sectors

Cooperation shall support sectoral policies and strategies that facilitate access to
productive activities and resources, in particular :

seed multiplication,

(a) Agriculture: agricultural policy and institution building, diversification,
fertiliser
irrigation,
livestock and cattle breeding,
production, equipment, agro-processing,
storage and
animal husbandry, extension and research; marketing;
transportation; food security; agricultural credit;
land settlement and
reform, land use and registration policy, technology transfer, irrigation and
drainage infrastructure, other support services.

crop protection measures,

(b)

(c)

Forestry: forestry policy and institution building, including use of trees to
in erosion and desertification control;
conserve the environment
afforestation; forest management, including the rational utilisation and
management of timber exports; issues relating to tropical rain-forests;
research and training.

Fisheries: fishing policy and institution building, fish stock protection and
rational management of fish stocks; fish farming and artisanal fisheries;
fishery transport; cold storage and fish marketing and preservation.

(d) Rural development: rural policy and institution building, integrated rural
development projects/programmes; assistance and projects targeted at
people, production and marketing in rural areas; rural infrastructure.

(e)

Industry: sectoral policy and institution building; craft industries; agro-
industries and other manufacturing sectors, transport equipment industry;
technological research and development; quality control; development and
expansion of SME and micro-enterprises.

(f) Mining: sectoral policy and institution building, technological research

and development; small-scale mining, etc.

24

(g) Energy: energy policy and institution building; power generation (non-
renewable and renewable); efficient use of energy resources; energy
research and training; encouraging private sector involvement in power
generation and distribution.

(h) Transport: transport policy and institution building; transport by road, rail,

air, sea or inland waterway and storage facilities.

(i)

Communication:
telecommunications and media.

communication

policy

and

institution

building;

(j) Water: water policy and institution building; protecting water resources,
waste management, water supplies in rural and urban areas for domestic,
industrial or agricultural purposes; storage, distribution and management
of water resources.

(k)

(l)

finance and business services:

financial sector policy and
banking,
institution building, business services; privatisation, equity participation
and marketing; support to trade, commerce and business associations
(including export promotion agencies); financial and banking institutions.

technology development and application: policy and institution building;
concerted action at local, national and/or regional level for the promotion
of science and technology activities and their application to production
and promotion of computer literacy in the public and private sectors.

Article 12

Trade development

1.

2.

3.

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 OCTs derive the maximum benefit from the
provisions of this Decision and may participate under the most favourable
conditions in the Community, domestic, sub-regional, regional and international
markets by diversifying the range and increasing the value and the volume of
OCT trade in goods and services.

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

Within the instruments provided for in this Decision 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:

(a)

support
necessary for trade development;

for

the definition of appropriate macroeconomic policies

25

(b)

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

(c)

the establishment of coherent trade strategies;

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

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

for strengthening the infrastructure related to trade and in
support
particular support for the OCTs' 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 OCTs;

development of human resources and professional skills in the field 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 organisations in the
OCTs dealing with the development of trade and services, particular
attention being paid to the special needs of organisations in the least-
developed OCTs;

support for OCTs aiming to improve the quality of their products, adapt
them to market requirements and diversify their outlets;

support
effectively;

for OCT efforts to penetrate third country markets more

(l) market development measures including increasing contacts and exchange
of information between economic operators in OCTs, ACP States, the
Member States of the Community and in third countries;

(m)

support for OCTs in the application of modern marketing techniques in
production-oriented sectors and programmes, in particular in areas such as
rural development and agriculture;

(n)

the establishment and development of insurance and credit institutions in
the field of trade development.

4.

Support for OCTs' participation in trade fairs, exhibitions and trade missions
should be carried out only where such events form an integral part of overall
trade and market development programmes.

26

5.

1.

2.

Participation of the least-developed OCTs in various trade activities shall be
encouraged by special provisions, inter alia, the payment of travel expenses of
personnel and costs of
their
participation in local, regional and third-country fairs, exhibitions or trade
missions, including the cost of the temporary construction and/or renting of
exhibition booths and stalls. The least-developed OCTs shall be granted special
aid to assist in the preparation and/or purchase of promotional materials.

transporting exhibits, on the occasion of

Article 13

Trade in services

The Community agrees to develop and finance infrastructure and human
resources in accordance with the priorities established under the development
strategies for each OCT.

The Community shall contribute to the development and promotion of cost-
effective and efficient maritime transport services in the OCTs, by:

(a)

promoting the efficient
commercially meaningful rates;

shipment of cargo at

economically and

(b)

implementing good policies and competition rules;

(c)

facilitating greater OCT participation in international shipping services;

(d)

encouraging regional programmes of maritime transport and trade
development;

(e)

increasing local private sector involvement in shipping activities.

The Community and the OCTs undertake to promote shipping safety, security of
crews and the prevention of pollution.

3.

The Community shall step up cooperation with the OCTs so as to ensure regular
improvement and growth in air traffic, promote trade, tourism and the export of
agricultural products with high economic value to the EU market.

This will involve:

(a)

examining all means of reforming and modernising the OCT air transport
industries;

(b)

promoting their commercial viability and competitiveness;

(c)

(d)

encouraging higher levels of private sector investment and participation
and a greater exchange of knowledge and good business practice;

providing passengers and exporters in all countries with access to global
air transport networks.

27

4.

Safety must be ensured in the air transport sector and the relevant international
standards introduced and implemented.

To that end, the Community shall assist the OCTs, in accordance with the
provisions set out in this Decision, to:

(a)

implement air navigation safety systems, including the CNS/ATM system;

(b)

implement airport security and strengthen the capacity of civil aviation
authorities to manage all aspects of operational security placed under their
control;

(c)

develop infrastructures and human resources;

(d)

ensure that any measures taken in this field are based on advice from the
relevant international organisations and that they will be effective and
sustainable in the long term.

Proper attention must be paid to minimising the environmental impact of air
transport, in particular by means of appropriate environmental impact studies.

In many aspects of air transport, regional solutions may offer scope for greater
the Community
cost effectiveness and economies of scale. To that end,
undertakes to support and encourage actions on a regional
level where
appropriate.

Since telecommunication and active participation in the information society are
prerequisites for the successful integration of the OCTs into the world economy,
the Community and the OCTs therefore reconfirm their respective commitments
under existing multilateral agreements, in particular the WTO Agreement on
Basic Telecommunications.

The Community shall support the efforts of the OCTs, in accordance with the
provisions set out in this Decision, to increase their capacity in this field.
Cooperation shall, inter alia, extend to the following areas:

5.

6.

7.

8.

(a)

(b)

(c)

(d)

promoting consultations between competent telecommunications bodies in
the OCTs and the Community with a view to encouraging development of
a competitive telecommunications environment bringing rates closer to
costs;

establishment of a dialogue on different aspects of the information society,
including regulatory aspects and communications policy;

information exchanges and possible technical assistance on regulation,
standardisation, conformity testing and certification of information and
communications technologies and the use of frequencies;

dissemination of new information and communications technologies and
the
to
of new facilities,
interconnection of networks and interoperability of applications;

development

particularly

relation

in

28

(e)

(f)

promotion and implementation of joint research in the field of new
technologies related to the information society;

design and implementation of programmes and policies to raise the
awareness of
the economic and social benefits deriving from the
information society.

9.

10.

Cooperation shall, in particular, be directed towards greater complementarity
and harmonisation of communication systems at local, national, regional, inter-
regional and international level and their adaptation to new technologies.

The Community shall support measures and operations to develop and support
from the
tourism. These measures shall be implemented at all
identification of the tourist product to the marketing and promotion stage.

levels,

The aim shall be to support the efforts of the relevant authorities of the OCT to
derive maximum benefit from local, regional and international tourism in view
of tourism's impact on economic development and to stimulate private financial
flows from the Community and other sources into the development of tourism in
the OCTs. Particular attention shall be given to the need to integrate tourism into
the social, cultural and economic life of the people, as well as to respect for the
environment.

the definition,
Specific tourism development measures shall be aimed at
local, regional, sub-
adaptation and development of appropriate policies at
regional and international
levels. Tourism development programmes and
projects shall be based on these policies on the basis of the following four
components:

(a)

human resource and institutional development, inter alia:

– professional management development in specific skills and continuous
training at appropriate levels in the private and public sectors to ensure
adequate planning and development;

– establishment and strengthening of tourism promotion centres;

– education and training for specific segments of the population and
including

public/private organisations active in the tourism sector,
personnel involved in sectors that support tourism;

– inter-OCT and OCT-ACP cooperation and exchanges in the fields of

training, technical assistance and the development of institutions.

(b)

The development of products including, inter alia:

– identification of the tourism product, development of non-traditional and
new tourism products, adaptation of existing products including the
preservation and development of cultural heritage, ecological and
environmental aspects, management, protection and conservation of flora
and fauna, historical, social and other natural assets, development of
ancillary services;

29

– promotion of private investment in the OCTs' tourist industries, including

the creation of joint ventures;

– production of crafts of a cultural nature for the tourist market.

(c)

market development including, inter alia:

– assistance for the definition and execution of objectives and market
development plans at local, sub-regional, regional and international levels;

– support for the OCTs' efforts to gain access to services for the tourist
industry such as central reservation systems and air traffic control and
security systems;

– marketing and promotional measures and materials in the framework of
integrated market development plans and programmes with a view to
improved market penetration, aimed at the main generators of tourism
flows in traditional and non-traditional markets as well as specific
activities such as participation at specialised trade events, such as fairs,
production of quality literature, films and marketing aids;

(d)

research and information including, inter alia:

– improving tourism information and collecting, analysing, disseminating

and utilising statistical data;

– assessment of the socio-economic impact of tourism on the economies of
the OCT with particular emphasis on the development of linkages to other
sectors in the OCT and the surrounding regions, such as food production,
construction, technology and management.

Article 14

Trade-related areas

1.

2.

3.

The Community shall help reinforce, within the development strategies of each
OCT, the capacity of the OCTs to handle all areas related to trade, including
where necessary improving and supporting the institutional framework.

The Community shall cooperate with the OCTs in the introduction of the
general principles on protection and promotion of investments.

The Community shall also help to reinforce cooperation with the OCTs with a
view to formulating and supporting effective competition policies with the
appropriate competition agencies
that progressively ensure the efficient
enforcement of the competition rules by both private and state enterprises.
Cooperation in this area shall, in particular, include assistance in the drafting of
an appropriate legal
framework and its administrative enforcement with
particular reference to the least developed OCTs.

30

4.

(a)

(b)

5.

(a)

(b)

(c)

(d)

6.

7.

(a)

(b)

(c)

8.

(a)

(b)

The Community shall continue to foster cooperation with the OCTs and extend
it, in particular, to the following areas:

the preparation of laws and regulations for the protection and enforcement of
intellectual property rights,
the prevention of the abuse of such rights by
the
rightholders and the infringement of
establishment and reinforcement of local, national and regional offices and other
agencies including support for regional intellectual organisations involved in
enforcement and protection, including the training of personnel;

such rights by competitors,

the conclusion of agreements aimed at protecting trademarks and geographical
indications for products of particular interest.

The Community shall assist
the OCTs in their efforts with regard to
standardisation and certification aimed at promoting compatible systems
between the Community and the OCTs. Cooperation shall comprise the
following in particular:

measures to promote greater use of international technical regulations, standards
and conformity assessment procedures, including sector-specific measures, in
accordance with the level of economic development of the OCTs;

cooperation in the area of quality management and assurance in selected sectors
of importance to the OCTs;

support for OCT capacity building initiatives in the fields of conformity
assessment, metrology and standardisation;

developing links between OCT and European standardisation, conformity
assessment and certification institutions.

The Community shall help strengthen cooperation with the OCTs with regard to
human, animal and plant health measures with a view to building public and
private sector capacity in this area.

Bearing in mind the Rio Principles and with a view to reinforcing the mutual
supportiveness of trade and environment policies, the Community shall enhance
cooperation with the OCTs. The aim of cooperation shall in particular be to:

establish coherent local, national, regional and international policies;

reinforce quality controls of goods and services related to the environment;

improve environment-friendly production methods in relevant sectors.

The Community shall cooperate with the OCTs in relation to labour standards.
Cooperation in this area shall mainly consist of:

exchanges of information on respective labour laws and regulations;

assistance in the formulation of labour legislation and strengthening of existing
legislation;

31

(c)

(d)

9.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

1.

2.

educational and awareness-raising programmes (aimed at eliminating child
labour);

enforcement of labour legislation and regulations.

The Community shall cooperate with the OCTs in the area of consumer policy
and consumer health protection by:

improving institutional and technical capacity in this area;

establishing rapid-alert systems of mutual information on dangerous products;

exchanging information and experiences on the establishment and operation of
post-market surveillance of products and product safety;

improving information provided to consumers on prices, characteristics of
products and services offered;

encouraging the development of private consumer associations and contacts
between consumer-interest representatives;

improving compatibility of consumer policies and systems;

notifying enforcement of
investigating harmful or unfair business practices;

the legislation and promoting cooperation in

implementing exports prohibitions on the trade of goods and services the
marketing of which has been prohibited in their country of production.

Article 15

Social sectors

The Community shall contribute, within the development strategies of each
OCT,
to human and social development measures. Cooperation could in
particular support programmes in the following sectors.

Education policy and institution building (buildings and materials); language
and teacher training; primary education; secondary education and vocational
training; higher education (including sector-specific education activities, e.g.
agricultural training).

In education, the focus should be on widening access to and improving the
quality of basic education by constructing more schools, rehabilitating existing
classrooms and providing educational materials, teacher training, and bursaries
for poor students.

3.

Health sector reform activities, health policy and institution building; medical
education, training and research, health infrastructure; HIV/AIDS; etc.

32

4.

5.

(a)

(b)

(c)

(d)

(e)

(f)

6.

In the health sector, projects should help to provide primary and preventive care
services, particularly family planning and child and maternal health services,
etc.

Population policy and family planning; mother and child care, including support
for projects on the nurturing and development of the next generation - the
children.

Increase the efficiency of policies to prevent the production, distribution and
trafficking of all kinds of drugs, narcotics and psychotropic substances,
preventing and reducing drug abuse, taking into account work done in this
context by international bodies.

Cooperation shall comprise the following:

training, education, health promotion and rehabilitation of addicts, including
projects for the reintegration of addicts into work and social environments;

to encourage alternative economic opportunities,

measures
for example
programmes for the alternative development of areas used for the illicit
production of narcotic plants, linked to effective enforcement measures;

technical, financial and administrative assistance relating to the monitoring of
precursors trade, and the establishment of standards equivalent to those adopted
by the Community and international authorities concerned, notably by the ex-
Chemical Action Task Force;

technical, financial and administrative assistance relating to the prevention,
treatment and reduction of drug abuse;

technical assistance and training, and the establishment of standards to prevent
money laundering equivalent to those adopted by the Community and other
international bodies, in particular the ex-Financial Action Task Force (FATF);

exchange of relevant information for the implementation of points 1 to 5.

Water policy and institution building; water
resources protection; waste
management (water for agriculture or energy will be covered under the relevant
sector) etc.

In the water supply and sanitation sector, the aim should be to provide services
in under-served areas. Funding that supports increasing access to drinking water
supply and sanitation services contributes directly to human resources
development by improving the state of health (and thus increasing the
productivity) of people who do not already have access to these services; the
continuing need to extend basic services in water, sanitation, and transport to
both urban and rural populations must be addressed in environmentally
sustainable ways.

7.

The Community shall cooperate with the OCTs in the sustainable use and
management of their biodiversity resources.

33

(a)

(b)

(c)

(d)

(e)

(f)

8.

Cooperation in this area may, in particular, extend to:

supporting the elaboration, updating and implementation of national biodiversity
strategies and action plans;

facilitating the establishment of local, regional and sub-regional mechanisms for
the exchange of information and the monitoring and assessment of progress in
the implementation of the Convention on Biological Diversity (CBD);

developing and maintaining up-to-date databases on OCT biodiversity
resources;

implementing appropriate measures relating to the access of biodiversity/genetic
resources;

promoting the conclusion of agreements with the private sector for the use of the
country’s genetic resources, so that local communities may effectively benefit
from the economic revenue derived from such agreements and so that the use of
genetic resources does not harm the protection and conservation of the
biodiversity;

assisting the OCTs to participate actively in the policy-making process and
negotiations under the CBD.

Housing and integrated urban development projects and programmes, etc.

In urban development, efforts should focus on building or rehabilitating roads
and other basic infrastructure, including low-income housing.

Article 16

Regional cooperation and integration

Cooperation shall ensure that effective aid is provided in order to achieve the objectives
and priorities established by the competent OCT authorities in the framework of regional
and sub-regional cooperation and integration.

1. Regional cooperation shall cover operations agreed on between:

– two or more or all OCTs;

– one or more OCTs and one or more neighbouring ACP or non-ACP

States;

– one or more OCTs and one or more ACP States or one or more of the most
remote regions referred to in Article 299(2) of the Treaty (Guadeloupe,
Guyana, Martinique, Reunion, the Canary Islands, Azores and Madeira);

– two or more regional bodies of which OCTs are members;

– one or more OCTs and regional bodies of which OCTs, ACP States or

overseas departments are members.

34

2. The objectives of cooperation in this context shall be to:

– foster the gradual integration of the OCTs into the world economy;

– accelerate economic cooperation and development within the regions of

the OCT and between them and the regions of the ACP States;

– promote the free movement of persons, goods, services, capital, labour and

technology;

– accelerate

diversification
harmonisation of regional and sub-regional cooperation policies;

economic

coordination

and

the

and

– promote and foster inter-OCT and intra-OCT trade as well as trade with

the most remote regions, ACP States or third countries.

3. In the context of regional integration, the aim of cooperation shall be to:

– build and enhance the capacity of regional cooperation and integration
organisations and institutions to promote regional cooperation and
integration;

– encourage the least developed OCTs to take part in the development of

regional markets and benefit therefrom;

– implement sectoral reform policies at regional level;

– liberalise trade and payments;

– stimulate cross-border foreign and domestic investment and other regional

or sub-regional economic integration initiatives;

– take account of the net transitional cost of regional integration on budget

revenue and balance of payments.

in the area of regional cooperation, cover a wide variety of
4. Cooperation shall,
functional and thematic fields which specifically address common problems and take
advantage of economies of scale, including:

– infrastructure (particularly transport and communications infrastructure

and related safety problems), energy;

– the environment, water resource management;

– health, education and training;

– research and scientific and technical cooperation;

– regional disaster preparedness and alleviation initiatives;

– other areas, e.g. arms controls, drugs, organised crime, money laundering,

fraud and corruption.

35

5. Cooperation shall also support inter-regional, inter-OCT and inter-ACP cooperation
schemes and initiatives.

Article 17

Cultural and social cooperation

Cooperation shall contribute to the self-reliant development of the OCTs, a process
centred on man himself and rooted in each people's culture. The human and cultural
dimension must embrace all areas and be reflected in all development projects and
programmes. Cooperation shall back up the policies and measures adopted by the
competent OCT authorities to enhance their human resources, increase their own creative
identities. It shall foster participation by the
capacities and promote their cultural
population in the process of development.

Cultural and social cooperation shall be expressed through:

– the taking into account of the cultural and social dimension;

– promotion of cultural identities and intercultural dialogue, with particular
reference to preserving the cultural heritage,
the production and
dissemination of cultural products, cultural events and information and
communication;

– operations to enhance human resources, notably covering education and
training, scientific and technical cooperation,
the role of women in
development, health and combating drug abuse, population and
demography.

36

PART THREE

INSTRUMENTS OF EC-OCT COOPERATION

TITLE I

DEVELOPMENT FINANCE COOPERATION

CHAPTER 1

GENERAL PROVISIONS

Article 18

Objectives

The objective of development finance cooperation shall be, through the provision of
adequate financial resources and appropriate technical assistance, to:

(a) support and promote the OCTs’ own efforts to achieve sustainable social, cultural and
economic development on the basis of mutual interest and in a spirit of interdependence;

(b) help raise the standard of living of the peoples of the OCTs;

(c) promote measures likely to mobilise the capacity for initiative of communities,
groups, associations and individuals and their participation in the design and
implementation of development programmes;

(d) contribute to the fullest participation of the population in the benefits of development
in the interests of poverty alleviation;

(e) contribute to the development of the capacity of the OCTs to innovate, adapt and
transform local technologies and to master appropriate new technologies;

(f) contribute to sustainable exploration, conservation, processing and exploitation of the
OCTs' natural resources in order to enhance their efforts to industrialise and achieve
economic diversification;

(g) provide support for and promote the optimal development of human resources in the
OCTs;

(h) facilitate an increase in the financial flows to the OCTs that meet their evolving needs
and support the efforts of the OCTs to harmonise international cooperation for their

37

development through cofinancing of operations with other financing agencies or third
parties;

(i) promote direct private investment in the OCTs, support the development of a healthy,
prosperous and dynamic OCT private sector and encourage local, national and foreign
private investment flows into the productive sectors in the OCTs;

(j) encourage inter-OCT and OCT-ACP regional cooperation, solidarity and integration;

(k) permit the establishment of more balanced economic and social relations and better
understanding between the OCTs, ACP States, Member States of the Community and the
rest of the world, with a view to assisting the integration of the OCTs into the world
economy;

(l) enable OCTs faced with serious economic and social difficulties of an exceptional
nature resulting from natural disasters or extraordinary circumstances having comparable
effects to benefit from emergency assistance;

(m) help the least-developed OCTs to overcome the specific obstacles which hamper
their development efforts.

Article 19

Principles

Development finance cooperation shall be based on the principles of partnership,
complementarity and subsidiarity:

(a) it shall be implemented on the basis of and be consistent with the development
objectives, strategies and priorities established by the relevant authorities of the OCTs, in
conformity with this Decision and in particular Article 1 thereof, with due regard to their
respective geographical, social and cultural characteristics, as well as their specific
potential;

(b) it shall be provided on highly concessional terms;

(c) it shall ensure that resource flows are accorded on a predictable basis;

(d) it shall be flexible and tailored to the situation in each OCT;

(e) in application of the principle of partnership, Community activities shall be decided in
close consultation between the Commission, the OCT concerned and the Member State
to which it is linked; such partnership shall be conducted in full compliance with the
respective institutional, legal and financial powers of each of the partners;

(f) in application of the principle of complementarity, Community resources shall be
allocated to support the budgets of the OCT concerned and the Member State to which it
is linked or by way of a contribution to their activities;

(g) in application of the principle of subsidiarity, the authorities of the OCT concerned
shall be responsible for implementing operations without prejudice to the powers of the

38

Commission to ensure that Community funds are used in accordance with the principles
of sound financial management.

Article 20

Guidelines

1. The relevant authorities of the OCTs shall be responsible for:

(a) establishing the strategy and priorities on which the single programming document,
hereinafter referred to as the 'SPD', are based;

(b) in the framework of sectoral planning, identifying projects and programmes and
establishing back-up measures to ensure the sustainability and viability of the proposed
schemes;

(c) preparing project and programme dossiers;

(d) preparing, negotiating and concluding contracts;

(e) implementing and managing projects and programmes;

(f) maintaining projects and programmes and ensuring their sustainability.

2. The relevant authorities of the OCTs and the Community shall be jointly responsible
for:

(a) establishing guidelines for development finance cooperation, where necessary in the
framework of the partnership;

(b) adopting the Single Programming Document;

(c) ensuring equality of conditions for participation in invitations to tender and contracts;

(d) monitoring and evaluating the effects and results of projects and programmes;

(e) ensuring the proper, prompt and efficient execution of projects and programmes.

3. The Commission shall be responsible for taking the financing decision on the overall
allocation corresponding to the SPD, in accordance with the procedure referred to in
Article 24 below.

4. Unless otherwise provided in this Decision, all decisions requiring the approval of a
party to the association shall be approved, or be deemed approved, within 6 months of
notification by the other party.

39

Article 21

Scope of financing

Within the framework of the strategy and the priorities established by the OCT concerned
at local or regional level, support may be given to operations helping to achieve the
objectives set out in this Decision.

The following activities shall fall within its scope:

(a) sectoral policies and reforms;

(b) institutional development, capacity building and integration of environmental aspects;

(c) technical cooperation programmes;

(d) humanitarian aid and emergency relief operations;

(e) additional support in the event of fluctuations in export earnings from exports of
goods and services.

Article 22

Eligibility for financing

1. The following entities or bodies shall be eligible for financial support provided under
this Decision:

(a) OCTs;

(b) regional or inter-State bodies to which one or more OCTs belong and which are
authorised by their relevant authorities;

(c) joint bodies set up by the Community and the OCTs to pursue certain specific
objectives.

2. Subject to the agreement of the relevant authorities of OCTs concerned, the following
shall also be eligible for support:

(a) local, national and/or regional public or semi-public agencies, departments or local
authorities of the OCTs and in particular their financial institutions and development
banks;

(b) companies and firms of the OCTs;

(c) enterprises of a Community Member State to enable them, in addition to their own
contribution, to undertake productive projects in the territory of an OCT;

(d) OCT or Community financial
investments in the OCTs;

intermediaries promoting and financing private

40

(e) actors of decentralised cooperation and other non-state actors from OCTs and from
the Community, to enable them to undertake economic, cultural, social and educational
projects and programmes in the OCTs in the framework of decentralised cooperation, as
referred to in Article 30.

Article 23

Programming and implementation

The Commission shall adopt the implementing provisions for this part of the Decision
and for Annexes II A to D within 12 months of its entry into force, in accordance with
the procedure laid down in Article 24 and after consulting the OCTs in the framework of
the partnership procedure.

The provisions shall include in particular :

(a)

(b)

the procedure for preparing the SPD and its essential elements;

the procedures and criteria for the follow-up, audit, ex-ante, mid-term and
including
ex-post evaluation, review and implementation of the SPD,
those in relation to the Commission's participation in these activities;

(c)

the preparation of periodical or other such reports.

The financial and accounting procedures shall be laid down in the 9th EDF Financial
Regulation.

Article 24

The EDF-OCT Committee

1.
The Commission shall, where appropriate, be assisted by the Committee created
by the Internal Agreement between representatives of the Governments of the Member
States, meeting within the Council, on the financing and administration of Community
Aid under the Financial Protocol to the Partnership Agreement between the African,
Caribbean and Pacific States and the European Community and its Member States signed
in Cotonou (Benin) on 23 June 2000 and the allocation of financial assistance for the
Overseas Countries and Territories to which Part Four of the EC Treaty applies,15
hereinafter the “Internal Agreement”.

2.
When exercising the powers conferred on it by this Decision, the Committee shall
be known as the “EDF-OCT Committee”. The internal rules of procedure of the
Committee created by the Internal Agreement referred to in paragraph 1 shall apply to
the EDF-OCT Committee.

The EDF-OCT Committee shall focus its work on the substantive issues of
3.
development cooperation at OCT and regional level. In the interests of coherence,

15

Doc.10688/00 ACP 114 FIN 313 PTOM 21 OJ L…p…..

41

coordination and complementarity, it shall monitor the implementation of the single
programming documents.

4.

(a)

(b)

The Committee shall give its opinion on:

draft SPDs and any amendments to them;

the implementing provisions for this part of the Decision and for Annexes II A to
D.

5.
The representative of the Commission shall submit to the Committee a draft of
the measures to be taken. The Committee shall deliver its opinion on the draft within a
time limit laid down by the chairman. The opinion shall be delivered by the majority laid
down in Article 21(4) of the Internal Agreement. The votes of the representatives of the
Member States within the Committee shall be weighted in the manner set out
in
paragraph 3 of that Article. The chairman shall not vote.

if the measures are not

The Commission shall adopt

the measures, which shall be immediately
6.
in accordance with the Committee's
applicable. However,
opinion,
the Commission shall forthwith communicate them to the Council. The
Commission may in such cases defer the application of the measures decided on for a
period to be specified in each basic instrument. This period shall in no case exceed three
months following the date of the communication.

The Council, acting by the majority and in accordance with the weighting referred
7.
to in paragraph 5, may take a different decision within the period provided for in
paragraph 6.

The Commission shall inform the Committee of the follow-up, evaluation and

8.
audit of SPDs.

CHAPTER 2

RESOURCES MADE AVAILABLE TO THE OCTS

Article 25

Financial assistance

1. The overall amount of Community financial assistance for the purposes of Chapter 1
of this Title, its allocation, financing terms and arrangements for the period 1 March
2001 to 31 December 2007 can be found in Annex II A to D and in Chapter 3 below,
without prejudice to the provisions to be adopted by the Commission as laid down in
Article 24.

Financial assistance under this Decision may be used to cover the total cost of both the
local and foreign expenditure of projects and programmes,
including financing of
recurrent costs.

42

2. OCTs are also eligible for financing under the legislation in force in favour of the
developing countries listed in Annex II E and for the Community programmes listed in
Annex II F.

43

CHAPTER 3

PRIVATE SECTOR INVESTMENT SUPPORT

Article 26

Investment promotion

The relevant authorities of the OCT and the Community, recognising the importance of
private
cooperation and
in the promotion of
acknowledging the need to take steps to promote such investment, shall:

their development

investment

(a) implement measures to encourage participation in their development efforts by
private investors who comply with the objectives and priorities of EC-OCT development
cooperation and with the appropriate laws and regulations;

(b) accord fair and equitable treatment to such investors;

(c) take measures and actions which help to create and maintain a predictable and secure
investment climate as well as enter into negotiations on agreements which will improve
such a climate;

(d) promote effective cooperation amongst OCT economic operators and between them
and those of the Community in order to increase the flow of capital, management skills,
technology and other forms of know-how;

(e) seek to promote a greater flow of private resources between the Community and the
OCTs by contributing,
to the removal of obstacles which impede OCT
operators' access to international capital markets, including those of the Community;

inter alia,

(f) create an environment which encourages the development of financial institutions and
the mobilisation of resources which are essential to capital formation and the growth of
entrepreneurship;

(g) promote the development of enterprises by taking such steps as are necessary to
improve the business environment and, in particular, foster a legal, administrative and
incentive framework which is conducive to the emergence and development of dynamic
private sector enterprises including grassroots operations;

(h) strengthen the capacity of local institutions in the OCTs to provide the range of
services which can encourage greater local participation in industrial and business
activity.

44

Article 27

Investment support and financing

Cooperation will provide long-term financing to help promote private sector growth and
mobilise national and foreign capital to that effect. To this end, cooperation shall in
particular provide:

(a) grants to cover technical and financial assistance in support of human resource
development, institutional capacity building, or other forms of institutional aid linked to a
specific investment; measures designed to make enterprises more competitive and build
the capacity of private financial and non-financial intermediaries; measures to facilitate
and promote investment and activities to improve competitiveness;

(b advisory and consultancy services to help create an investment-friendly climate and a
stock of information to help guide and encourage capital flows;

(c) grants funded by the Investment Facility;

(d) loans from the European Investment Bank's own resources.

The conditions applicable to the Investment Facility and the abovementioned loans are
laid down respectively in Annex II B and C to this Decision.

CHAPTER 4

ADDITIONAL SUPPORT IN THE EVENT OF FLUCTUATIONS
IN EXPORT EARNINGS

Article 28

Additional support

1. In order to mitigate the adverse effects of any instability in export earnings,
in
particular in the agricultural and mining sectors, which might jeopardise the attainment of
the development objectives of the OCT concerned, a system of additional support shall
be instituted within the financial allocation.

2. The purpose of support in the event of short-term fluctuations in export earnings is to
safeguard macroeconomic and sectoral reforms and policies that are at risk as a result of
a drop in revenue and remedy the adverse effects of instability of export earnings from
agricultural and mining products.

3. The dependence of the OCT economies on exports, in particular in the agricultural and
mining sectors, shall be taken into account in the allocation of resources in the year of
application. In this context, the least developed OCTs shall receive more favourable
treatment.

45

4. The additional resources shall be provided in accordance with the specific modalities
of the support mechanism as set out in Annex II D on Terms and Conditions of
Financing.

5. The Community shall also provide support for market-based insurance schemes
designed for OCTs seeking to protect themselves against the risk of fluctuations in export
earnings.

CHAPTER 5

SUPPORT FOR OTHER ACTORS OF COOPERATION

Article 29

Objectives and financing

In order to respond to the development needs of local communities and encourage all
actors of decentralised cooperation which are in a position to contribute to the
autonomous development of the OCTs to put forward and implement initiatives, EC-
OCT cooperation shall support such development operations within limits laid down by
the OCTs concerned and by the Member States responsible for these OCTs, and within
the framework of the SPD provisions.

1. In this context cooperation shall support:

(a) funding of local microprojects which have an economic and social impact on the life
of the people, meet a demonstrated and observed priority need and are undertaken at the
initiative and with the active participation of the local community which will benefit
therefrom;

(b) decentralised cooperation financing, in particular where it combines the efforts and
resources of organisations from the OCTs and their counterparts from the Community.
This form of cooperation shall make available for the development of the OCTs the
capabilities, innovative operating methods and resources of the actors of decentralised
cooperation.

2. Microprojects and decentralised cooperation activities may be funded from the
this form of
financial resources of this Decision. Projects or programmes under
cooperation may be a way of achieving the specific objectives of the SPD or the results
of initiatives by local communities or decentralised actors.

Contributions to the funding of microprojects and decentralised cooperation shall come
from grants, in which case the contribution shall not normally exceed three-quarters of
the total cost of each project. The balance shall be financed:

(a) for microprojects, by the local community concerned, in kind or in the form of
services or cash and adapted to its capacity to contribute;

46

(b) for decentralised cooperation, by the actors of decentralised cooperation, provided
that the financial, technical, material and other resources brought in by such actors is not,
as a general rule, less than 25% of the estimated cost of the project/programme;

(c) in exceptional cases where both microprojects and decentralised cooperation are
concerned, by the competent authorities of the OCT concerned, either in the form of
financial contribution or through the use of public equipment or the supply of services.

The procedures applicable to projects and programmes financed in the context of
microprojects or decentralised cooperation shall be as set out in this Decision, notably
with regard to the SDP implementing provisions.

CHAPTER 6

SUPPORT FOR HUMANITARIAN AND EMERGENCY AID

Article 30

Objectives and means

Humanitarian and emergency aid shall be granted to OCTs faced with serious economic
and social difficulties of an exceptional nature resulting from natural disasters or
extraordinary circumstances having comparable effects. Humanitarian and emergency aid
shall be maintained as long as necessary to deal with the urgent problems which arise in
such situations.

Humanitarian and emergency aid shall be granted solely on the basis of the needs and
interests of disaster victims.

1. The aim of humanitarian and emergency aid shall be to:

(a) save human lives in crisis and post-crisis situations caused by natural disasters or
extraordinary circumstances having comparable effects;

(b) help finance the transport of aid and efforts to ensure that it is accessible to those for
whom it is intended, by all logistical means available;

(c) implement short-term rehabilitation and reconstruction measures in order to establish
conditions as soon as possible for the people concerned to be integrated or reintegrated;

(d) respond to needs arising as a result of people being displaced (refugees, displaced
persons and returnees) following natural or manmade disasters so as to meet all the
requirements of refugees and displaced persons (wherever they may be) for as long as is
necessary and facilitate their voluntary resettlement;

47

(e) help the OCTs to develop or perfect systems of disaster prevention and preparedness,
including prediction and early-warning systems, with a view to reducing the
consequences of disasters.

2. Similarly aid may be granted to OCTs taking in refugees or returnees to meet acute
needs not covered by emergency assistance.

3. Aid provided for by this Article shall be financed under Council Regulation (EC) No
1257/96 of 20 June 1996 on humanitarian aid.16 However, it may exceptionally be
financed, at the request of the OCT concerned, from the overall grant allocation (SPD) in
addition to the funding from the budget heading concerned.

4. Humanitarian and emergency aid operations shall be undertaken at the request of the
OCT affected, the Commission or local or international non-governmental organisations.
Such assistance shall be administered and implemented under procedures that facilitate
rapid, flexible and effective operations. The Commission shall adopt the necessary
provisions to apply the above principles.

CHAPTER 7

IMPLEMENTATION PROCEDURES

Article 31

Technical assistance

1. On the initiative of or on behalf of the Commission, studies or technical assistance
measures may be financed in order to ensure the preparation, monitoring, evaluation and
supervision necessary for implementing this Decision.

Such studies or technical assistance measures shall be financed by the overall grant
allocation.

2. On the initiative of the OCT, studies or technical assistance measures may be financed
in relation to the implementation of the activities contained in the SPD, subject to the
Commission's opinion.

Such studies or technical assistance measures shall be financed from the allocation of the
OCT concerned.

16

OJ L 163, 2.7.1996, p.1.

48

Article 32

Financial control

1. The OCT concerned shall bear primary responsibility for the financial supervision of
the operation. This shall be carried out, where appropriate, in coordination with the
Member State concerned, in accordance with the applicable national legislation.

2. The Commission shall be responsible for:

(a) ensuring that management and control systems exist and function properly in the OCT
concerned so as to ensure that the Community funds are used correctly and effectively;

(b) in the event of irregularities, sending recommendations or requests for corrective
measures to remedy those irregularities and rectify any management shortcomings found.

3. The Commission, OCT and, where appropriate, the Member State to which it is linked,
shall cooperate on the basis of administrative arrangements at annual or biannual meeting
to coordinate programmes, methodologies and the implementation of controls.

4. With regard to financial corrections:

(a) the OCT shall be responsible in the first
financial irregularities;

instance for detecting and correcting

(b) however, in the event of shortcomings by the OCT concerned, the Commission shall
take action, if the OCT fails to remedy the situation and attempts at conciliation are
unsuccessful, to reduce or withdraw the balance of the overall allocation corresponding
to the SPD financing decision.

CHAPTER 8

TRANSITION FROM PREVIOUS EDFS TO THE 9TH EDF

Article 33

Implementing the previous EDFs and the transitional phase

1. Commitments made in the framework of the 6th, 7th and 8th EDFs before the entry
into force of this Decision and the 9th EDF Internal Agreement shall continue to be
executed following the rules applicable to those EDFs.

For a transitional period until 31 December of the second year following the year when
this Decision or the Internal Agreement, whichever is the latest, comes into force, the
officials responsible for managing and implementing European Development Fund
resources, i.e. the EDF Chief Authorising Officer, the OCT Local Authorising Officer
and the Commission's Head of Delegation, shall remain responsible for the management

49

and implementation tasks assigned to them by Council Decision 91/482/EC, as amended
by Decision 97/803/EC.

Before this date, the Commission shall adopt measures, following consultations with the
OCTs and the Member States to which they are linked, to facilitate a smooth transition
between those rules and the new procedures for implementing development finance
cooperation contained herein.

2. Any balances remaining from previous EDFs on the date of entry into force of this
Decision and of the Internal Agreement, as well as any amounts that shall be
decommitted at a later date from ongoing projects under these Funds, shall be transferred
to the 9th EDF and used in accordance with the conditions laid down in this Decision.

Any resources thus transferred to the 9th EDF that previously had been allocated to the
indicative programme of an OCT or region shall remain allocated to that OCT or to
regional cooperation.

Any other remaining balances not allocated to an indicative programme shall be
transferred to the non-committed amount of the 9th EDF. The overall amount of this
Decision, supplemented by the transferred balances from previous EDFs, shall cover the
period 2000–2007. This paragraph shall apply in particular to any remaining balances of
the overall amounts referred to in Articles 118 and 142 of Decision 91/482/EEC
concerning,
from agricultural
commodities (Stabex) and the special financing facility (Sysmin).

the stabilisation of export earnings

respectively,

50

TITLE II

ECONOMIC AND TRADE COOPERATION

Article 34

Objective

The objective of economic and trade cooperation shall be to promote the economic and
social development of the OCTs , in particular by establishing close economic relations
between them and the Community as a whole.

The implementation of such cooperation must be consistent with the objectives of the
other common policies.

CHAPTER 1

ARRANGEMENTS FOR TRADE IN GOODS

Article 35

Free access for originating products

1. Products originating in the OCTs shall be imported into the Community free of import
duty.

2. The concept of originating products and the methods of administrative cooperation
relating thereto are laid down in Annex III.

Article 36

Transhipment of non-originating products in free circulation in the OCTs

1. Products not originating in the OCTs but which are in free circulation in an OCT and
are re-exported as such to the Community shall be accepted for import
into the
Community free of customs duties and taxes having equivalent effect providing that they:

- have paid, in the OCT concerned, customs duties or taxes having equivalent effect of a
level equal to, or higher than, the customs duties applicable in the Community on import
of these same products originating in third countries eligible for the most-favoured-nation
clause;

51

- have not been the subject of an exemption from, or a refund of, in whole or in part,
customs duties or taxes having equivalent effect, without prejudice to paragraph 2;

- are accompanied by an export certificate.

2. Without prejudice to paragraph 1 above, the Commission may, following a duly
substantiated request
the OCT concerned,
exceptionally authorise OCT public financial aid to traders using the transhipment
procedure.

from the competent

authorities of

The Commission shall take a decision in the light of the objectives referred to in this
Title. It shall be assisted by an advisory committee composed of the representatives of
the Member States and chaired by the representative of the Commission. The advisory
procedure shall be as set out in Article 3 of Council Decision 1999/468/EC of 28 June
1999 laying down the procedures for the exercise of implementing powers conferred on
the Commission,17 in compliance with Article 7(3) thereof.

3. The provisions of paragraphs 1 and 2 shall not apply to:

- the agricultural products listed in Annex II to the Treaty nor to products covered by
Council Regulation (EEC) No 3448/93 of 6 December 1993 laying down the trade
arrangements applicable to certain goods resulting from the processing of agricultural
products;18

-products subject, on import
limitations;

into the Community,

to quantitative restrictions or

-products subject, on import into the Community, to anti-dumping duties.

4. The conditions for entry into the Community of products not originating in the OCTs
but in free circulation in an OCT, and the methods of administrative cooperation relating
thereto, are laid down in Annex IV.

Article 37

Quantitative restrictions and measures having equivalent effect: prohibitions

1. The Community shall not apply to imports of products originating in the OCTs any
quantitative restrictions or measures having equivalent effect.

2. Paragraph 1 shall not preclude prohibitions or restrictions on imports, exports or goods
in transit justified on grounds of public morality or public policy, the protection of health
and life of humans, animals and plants, the protection of national treasures possessing
artistic, historic or archaeological value, the conservation of exhaustible natural resources
or the protection of industrial and commercial property.

Such prohibitions or restrictions shall in no case constitute a means of arbitrary or
unjustifiable discrimination or a disguised restriction of trade generally.

17

18

OJ L 184, 17.7.1999, p. 23.
OJ L 318, 20.12.1993, p. 18.

52

Article 38

Hazardous, non-hazardous and radioactive waste

The Community undertakes, for its part, to make every effort to ensure that international
movements of hazardous and non-hazardous waste and radioactive waste are generally
controlled, and emphasises the importance of efficient international cooperation in this
area.

With this in view, the Community shall prohibit all direct or indirect export of such
waste, with the exception of exports of non-hazardous waste destined for recovery
operations, to the OCTs while at the same time the relevant authorities of the OCTs shall
into their territory of such waste from the
prohibit
Community or from any other country, without prejudice to specific international
undertakings concerning these two areas that have been made, or may be made in future,
in the competent international forums.

the direct or indirect

import

The relevant authorities of the OCTs shall monitor strictly the implementation of the
prohibition measure referred to above.

1. These provisions shall not prevent a Member State to which an OCT has chosen to
export waste for processing from returning the processed waste to the OCT of origin. In
case of re-export to an OCT, a specimen of the consignment note, bearing the stamp of
authorisation, shall accompany each shipment.

2. As regards the Community, and without prejudice to paragraph 1 above, 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 Community19 shall apply.

As regards those OCTs which, due to their constitutional status, are not Party to the Basle
Convention, it falls within the competence of their authorities to expedite adoption of the
necessary internal legislation and administrative regulations to implement this control.

3. As regards imports into the Community from the OCTs of hazardous waste and of
non-hazardous waste destined for final disposal, Articles 1 to 12 and 25 to 39 of
Regulation (EEC) No 259/93 shall apply.

4. The term 'hazardous waste' within the meaning of this Article shall cover categories of
products listed in Annexes 1 and 2 to the Basle Convention on the Control of
Transboundary Movements of Hazardous Wastes and their Disposal.

As regards radioactive waste, the applicable definitions and thresholds shall be those
which will be laid down in the framework of the International Atomic Energy Agency
(IAEA). In the meantime,
the applicable definitions and thresholds shall be those
specified in Annex V.

19

OJ L 30, 6.2.1993, p. 1.

53

Article 39

Measures adopted by the OCTs

1. In view of the present development needs of the OCTs, the relevant authorities of the
OCTs may retain or introduce, in respect of imports of products originating in the
Community, such customs duties or quantitative restrictions as they consider necessary.

2.

(a)

The trade arrangements applied to the Community by the OCTs may not
give rise to any discrimination between Member States nor be less
favourable than most-favoured-nation treatment.

(b) Notwithstanding specific provisions of this Decision, the Community shall

not discriminate between OCTs in the field of trade.

(c)

The provisions of (a) shall not preclude a country or territory from
granting certain other OCTs or other developing countries more
favourable treatment than that accorded to the Community.

3. The competent authorities of the OCTs shall communicate to the Commission, within
a period of three months following the entry into force of this Decision, the customs
tariffs and lists of quantitative restrictions which they apply.

They shall also communicate to the Commission any subsequent amendments to such
measures as and when they are adopted.

Article 40

Surveillance clause

1. The products originating in the OCTs referred to in Article 35 or products not
originating in the OCT referred to in Article 36 may be subject to special surveillance.
The Commission shall decide to which products surveillance shall apply in consultation
with the OCT authorities and the Member State to which the OCT is linked in the
framework of the partnership.

2. Article 308d of Commission Regulation (EEC) No 2454/93 of 2 July 1993, laying
down provisions for the implementation of Council Regulation (EEC) No 2913/92 on the
Community Customs Code,20 shall apply.

3. The Commission and the competent OCT authorities shall ensure the effectiveness of
the surveillance measures by introducing the methods of administrative cooperation set
out in Annexes III and IV.

20

OJ L 253, 11.10.1993, p. 1.

54

Article 41

Safeguard measures

1. If, as a result of the application of this Decision, serious disturbances occur in a sector
of the economy of the Community or one or more of its Member States, or their external
financial stability is jeopardised, or if difficulties arise which may result in a deterioration
in a sector of the Community's activity or in a region of the Community, the Commission
may, on its own initiative or at the request of one or more Member States, take or
authorise the Member States concerned to take the necessary safeguard measures, in
accordance with the paragraphs below.

2. For the purpose of implementing paragraph 1, priority shall be given to such measures
as would least disturb the functioning of the association and the Community. These
measures shall not exceed the limits of what
is strictly necessary to remedy the
difficulties that have arisen. They cannot exceed the withdrawal of the preferential
treatment granted by this Decision.

3. When safeguard measures are taken or modified, particular attention shall be paid to
the interests of the least-developed OCTs.

4. This Article is without prejudice to the rights and obligations of the Community under
WTO rules, including those contained in the WTO agreement on safeguard measures.
Neither shall
the regulations establishing a common
organisation of agricultural markets, or Community or national administrative provisions
derived therefrom, or the specific rules adopted under Article 235 of the Treaty for
processed agricultural products.

it preclude application of

5. If a Member State asks the Commission for application of safeguard measures, the
Commission shall inform the Council, the Member States and the relevant authorities of
the OCT accordingly within three working days from the date of receipt of the Member
State's request. At the same time it shall invite the Member States to a meeting of the
Consultative Committee mentioned in paragraph 6 below.

Member States shall provide the Commission with any information necessary to justify
their requests for the application of safeguard measures.

6. The Commission shall, on receipt of a request from a Member State for the application
of safeguard measures or on its own initiative, consult a Committee made up of
representatives of the Member States and chaired by a Commission representative. The
Commission shall make any information it has concerning the case in question available
to the Committee.

7. Following consultation with the Committee referred to in paragraph 6,
the
Commission may take or authorise the Member States concerned to take the necessary
safeguard measures.

The Council, the Member States and the relevant authorities of the OCT shall be notified
immediately of the decision. It shall apply with immediate effect.

8. Any Member State may refer the Commission's decision referred to in paragraph 7 to
the Council within 10 working days of receiving notification of the decision.

55

9. Should the Commission fail to adopt a decision within 21 working days, or if the
Commission decides not to take safeguard measures, any Member State that has brought
the matter before the Commission may refer it to the Council.

10. In the cases referred to in paragraphs 8 and 9, the Council, acting by a qualified
majority, may adopt a different decision within 21 working days.

CHAPTER 2

TRADE IN SERVICES

Article 42

Objective

The long-term aim in this area is a progressive liberalisation of trade in services, with due
respect for the OCT's local policy objectives, and taking due account of the level of
development of the OCT and the obligations entered into by the Community, its Member
States or the OCTs in the WTO framework.

Article 43

General principles of establishment and the provision of services

1. As regard the arrangements applicable to establishment and the provision of services,
in line with Article 183(5) of the Treaty and subject to paragraph 2 below:

(a) the Community shall apply to the OCTs the undertakings it has entered into under the
General Agreement on Trade in Services (GATS) under the conditions laid down in that
Agreement and in accordance with this Decision; in application of such undertakings,
Member States shall not discriminate between nationals, companies or enterprises of the
OCTs.

(b) the competent OCT authorities 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 and shall not discriminate between
nationals, companies or enterprises of Member States.

2. The relevant authorities of an OCT may, without prejudice to their undertakings
entered into under GATS and with a view to promoting or supporting local employment,
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.

In this event,
regulations they adopt so that it may inform the Member States.

the competent OCT authorities shall notify the Commission of the

56

3. For the purposes of this Decision 'companies or enterprises' means companies or
including public or other
enterprises constituted under civil or commercial
companies, cooperative societies and any other legal person or association governed by
public or private law, save for those which are non-profit-making.

law,

Companies or enterprises of Member States are those formed in accordance with the laws
of a Member State whose registered office, central administration or principal place of
business is in a Member State; however, a company or enterprise having only its
registered office in a Member State must be engaged in an activity which has an actual
and continuous link with the economy of that Member State.

OCT companies or enterprises are those formed in accordance with the law applicable in
a given OCT whose registered office, central administration or principal place of
business is in that OCT; however, a company or enterprise having only its registered
office in a country or territory must be engaged in an activity which has an actual and
continuous link with the economy of that country or territory.

Article 44

Subsequent amendments

Amendments or additions to this Decision may be adopted by the Council, acting by a
qualified majority on a proposal from the Commission, to take account, and to take
advantage, of the outcome of the multilateral trade negotiations within the World Trade
Organisation (WTO).

Article 45

Maritime transport

1. The relationship between the Community and the OCTs in the area of maritime
transport shall be based on the effective application of the principle of unrestricted access
to the international maritime market and traffic on a fair and commercial basis.

2. The Community and the OCTs shall extend to each other's nationals and the vessels
registered in the territory of either of the Parties treatment no less favourable than that
granted to the most favoured nation in respect of the maritime transport of goods,
passengers or both, access to ports, the use of infrastructure and auxiliary maritime
services of those ports and related fees and charges, customs facilities and the assignment
of berths and facilities for loading and unloading, based on fair competition and on
commercial terms.

57

CHAPTER 3

TRADE-RELATED AREAS

Article 46

Current payments and capital movements

1. Without prejudice to paragraph 3,
the Member States and the competent OCT
authorities undertake to impose no restrictions on any payments in freely convertible
currency on the current account of balance of payments between residents of the
Community and of the OCTs.

2. With regard to transactions on the capital account of balance of payments, the Member
States and the competent OCT authorities undertake to impose no restrictions on the free
movement of capital for direct investments in companies formed in accordance with the
laws of the host country or territory and to ensure that the assets formed by such
investment and any profit stemming therefrom can be realised and repatriated.

3. Where one or more OCTs or one or more Member States of the Community is in
serious balance of payments difficulties, or under threat thereof, the competent OCT
authorities, the Member State or the Community may, in accordance with the conditions
established under the GATT, GATS and Article VIII and XIV of the Articles of
Agreement of the International Monetary Fund, adopt restrictions on current transactions
which shall be of limited duration and may not go beyond what is necessary to remedy
the balance of payments situation. When taking such measures, the competent OCT
authorities, the Member State or the Community shall inform each other without delay
and submit to each other as soon as possible a timetable for the elimination of the
measures concerned.

Article 47

Competition policies

1. The introduction and implementation of effective and sound competition policies and
rules are of crucial importance in order to improve and secure an investment friendly
climate, a sustainable industrialisation process and transparency in the access to markets.

2. To ensure the elimination of distortions to competition and with due consideration to
the different levels of development and economic needs of each OCT, the Community
and the OCTs undertake to implement local, national or regional rules and policies
including the control and, under certain conditions,
the prohibition of agreements
between undertakings, decisions by associations of undertakings and concerted practices
between undertakings which have as their object or effect the prevention, restriction or
distortion of competition. The above prohibition also relates to the abuse by one or more
undertakings of a dominant position in the territory of the Community or of the OCTs.

58

Article 48

Protection of intellectual property rights

1. An adequate and effective level of protection of intellectual, industrial and commercial
property rights, including means for enforcing such rights, needs to be ensured in line
with the highest
international standards with a view to reducing distortions and
impediments to bilateral trade.

inventions,

2. Intellectual property rights cover copyright, including in particular the copyright on
computer programmes and neighbouring rights, utility models, patents including bio-
technological
including
appellations of origin, trademarks for goods or services, topographies of integrated
circuits, the legal protection of data bases and the protection against unfair competition as
referred to in Article 10 bis of the Paris Convention for the Protection of Industrial
Property and protection of undisclosed information on know-how.

industrial designs, geographical

indications

Article 49

Standardisation and certification

Closer cooperation is necessary in the field of standardisation, certification and quality
assurance to remove unnecessary technical barriers and to reduce differences in those
areas, so as to facilitate trade.

Article 50

Trade and the environment

The development of international trade should be promoted in such a way as to ensure
sustainable and sound management of the environment, in accordance with the relevant
international agreements and undertakings and with due regard to the respective levels of
development of the OCTs. The special needs and requirements of the OCTs should be
taken into account in the design and implementation of environmental measures.

Bearing in mind the Rio Principles, cooperation shall aim at ensuring the mutual
supportiveness of trade and environment policies, in particular through the reinforcement
of quality controls of goods and services related to the environment and the improvement
of environment-friendly production methods.

Article 51

Trade and labour standards

The internationally and nationally recognised core labour standards must be respected, in
particular the freedom of association and protection of the right to organise, application
of the right to organise and to bargain collectively, the abolition of forced labour, the
the minimum age for admission to
elimination of worst

forms of child labour,

59

employment and non-discrimination in respect to employment. The above standards
should not be used for protectionist trade purposes.

Article 52

Consumer policy and consumer health protection

Cooperation is needed in the area of consumer policy and consumer health protection,
having due regard to the legislation in force to avoid barriers to trade.

CHAPTER 4

MONETARY AND TAX MATTERS

Article 53

Tax carve-out clause

1. Without prejudice to the provisions of Article 57, the most favoured nation treatment
granted in accordance with the provisions of this Decision shall not apply to tax
advantages which the Member States of competent OCT authorities are providing or may
provide in the future on the basis of agreements to avoid double taxation or other tax
arrangements, or domestic fiscal legislation in force.

2. Nothing in this Decision may be construed to prevent the adoption or enforcement of
any measure aimed at preventing the avoidance or fraud of taxes pursuant to the tax
provisions of agreements to avoid double taxation or other tax arrangements, or fiscal
legislation in force.

3. Nothing in this Decision shall be construed to prevent the respective competent
authorities from distinguishing, in the application of the relevant provisions of their fiscal
legislation, between taxpayers who are not in the same situation, in particular with regard
to their place of residence, or with regard to the place where their capital is invested.

Article 54

Tax and customs arrangements for EC-funded contracts

1. The OCTs shall apply to Community-financed contracts tax and customs arrangements
no less favourable than those applied by them to the most-favoured States or international
the purpose of
development organisations with which they have relations. For
determining the most-favoured-nation treatment, account
shall not be taken of
arrangements applied by the relevant authorities of the country or territory concerned to
other developing countries.

60

2. Subject to paragraph 1, the following arrangements shall apply to contracts financed
by the Community:

(a) the contract shall not be subject in the beneficiary OCT to stamp or registration duties
or to fiscal charges having equivalent effect, whether such charges already exist or are to
be instituted in the future; however, such contracts shall be registered in accordance with
the laws in force in the OCT and a fee corresponding to the service rendered may be
charged for it;

(b) profits and/or income arising from the performance of contracts shall be taxable
according to the internal fiscal arrangements of the OCT concerned, provided that the
natural or legal persons who realise such profit and/or income have a permanent place of
business in that OCT, or that the performance of the contract takes longer than six
months;

(c) enterprises which must import equipment in order to carry out works contracts shall,
if they so request, benefit from the system of temporary admission as laid down by the
legislation of the beneficiary OCT in respect of that equipment;

(d) professional equipment necessary for carrying out tasks defined in a service contract
shall be temporarily admitted into the beneficiary OCT in accordance with the legislation
of that OCT free of fiscal, import and customs duties and of other charges having
equivalent effect where these duties and charges do not constitute remuneration for
services rendered;

(e) imports under supply contracts shall be admitted into the beneficiary OCT without
customs duties, import duties, taxes or fiscal charges having equivalent effect. The
contract for supplies originating in the country or territory concerned shall be concluded
on the basis of the ex-works price of the supplies, to which may be added such internal
fiscal charges as may be applicable to those supplies in the country or territory;

(f) fuels, lubricants and hydrocarbon binders and, in general, all materials used in the
performance of works contracts shall be deemed to have been purchased on the local
market and shall be subject to fiscal rules applicable under the legislation in force in the
beneficiary OCT;

(g) personal and household effects imported for use by natural persons, other than those
recruited locally, engaged in carrying out tasks defined in a service contract and members
of their families, shall be exempt from customs or import duties, taxes and other fiscal
charges having equivalent effect, within the limits of the legislation in force in the
beneficiary OCT.

3. Any matter not covered by paragraphs 1 and 2 shall remain subject to the legislation of
the OCT concerned.

4. Tax arrangements affecting Commission Delegates and delegation staff are dealt with
in Articles 215(g) and 222(3) of Council Decision 91/482/EC, as amended by Decision
97/803/EC.

61

Article 55

Taxation of savings income

Member States with dependent or associated territories, or which have special
take
responsibilities or taxation prerogatives in respect of other
appropriate measures, within the context of their constitutional arrangements, to ensure
that provisions concerning interest payments to Community residents which are
comparable to those laid down in any Community Directive which may be adopted are
introduced in the OCTs.

territories, shall

62

PART FOUR

ARRANGEMENTS APPLICABLE TO
INDIVIDUALS

Article 56

Professional qualifications

With regard to the professions of doctor, dentist, midwife, general nurse, pharmacist and
veterinary surgeon, the Council, acting unanimously on a proposal from the Commission,
shall adopt the list of professional qualifications specific to the OCTs which in due
course will be recognised in the Member States.

Article 57

Vocational training

OCT nationals shall be eligible for vocational training in the Community under the same
conditions as nationals of the Member States.

Article 58

Programmes open to the OCTs

OCT nationals shall be eligible, within the framework of the quota of their Member
State, for the Community programmes listed in Annex II F and any programmes
succeeding them.

The Commission may modify this list at the request of en OCT, a Member State or at its
own initiative.

Article 59

Euro-Info Correspondence Centres (EICC)

At the request of the competent OCT authorities and in accordance with the procedures
specified in Part Three, Title I of this Decision, a Euro-Info Correspondence Centre,
hereinafter referred to as 'EICC', may be set up in an OCT. Part-financing may be made
available to the EICC host structure from the grant aid available under the SPD or
regional cooperation.

The tasks of the EICC, the tools and services made available to them, the establishment
procedures and criteria for selecting the host structure are set out in Annex VI.

63

Article 60

Citizenship of the Union

Articles 59 to 61 shall apply to all OCT nationals without prejudice to the additional
rights conferred by citizenship of the Union, within the meaning of Article 17 et seq. of
the Treaty, in relation to those entitled to full citizenship of the Member State to which
they belong.

64

PART FIVE

FINAL PROVISIONS

Article 61

Change of status

If a country or territory becomes independent:

(a) the arrangements provided for in this Decision may continue to apply provisionally to
that country or territory under conditions laid down by the Council;

(b) the Council, acting unanimously on a proposal from the Commission, shall decide on
any necessary adjustments to this Decision, in particular to the amounts specified in
Article 24.

Article 62

Review

Before 31 December 2007, the Council, acting unanimously on a proposal from the
Commission, shall establish the provisions to be laid down for the subsequent application
of the principles set out in Articles 182 to 186 of the Treaty. In this context, the Council
shall in particular adopt any necessary measures where an OCT decides in accordance
with its own constitutional procedures to enter into special preferential arrangements
between the Community and various partners in the region to which it belongs. The
Council shall take particular account in this respect of international obligations entered
into by the Community, its Member States or the OCTs, including those within the
framework of the WTO.

Article 63

Entry into force

This Decision shall enter into force on 1 March 2001. It shall be applicable until 31
December 2007.

65

Article 64

Publication

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

Done at Brussels,

For the Council
The President

66

ANNEX IA

LIST OF THE COUNTRIES AND TERRITORIES REFERRED TO IN ARTICLE 1

(This list does not prejudge the status of these countries and territories, or future changes in
their status)

1. Country having special relations with the Kingdom of Denmark: Greenland.

2. Overseas territories of the French Republic:

- New Caledonia,

- French Polynesia,

- French Southern and Antarctic Territories,

- Wallis and Futuna Islands.

3. Territorial communities of the French Republic:

- Mayotte,

- St Pierre and Miquelon.

4. Non-European countries of the Kingdom of the Netherlands :

- Aruba,

- Netherlands Antilles:

. Bonaire

. Curaçao,

. Saba,

. Saint Eustatius,

. Saint Martin (Sint Maarten).

5. Overseas countries and territories of the United Kingdom of Great Britain and Northern
Ireland:

- Anguilla,

- Cayman Islands,

- Falkland Islands,

- South Georgia and the South Sandwich Islands,

- Montserrat,

67

- Pitcairn,

- Saint Helena, Ascension Island, Tristan da Cunha,

- British Antarctic Territory,

- British Indian Ocean Territory,

- Turks and Caicos Islands,

- British Virgin Islands.

68

ANNEX IB

LIST OF THE OCTS CONSIDERED THE LEAST DEVELOPED,

REFERRED TO IN ARTICLE 6(2)

- Anguilla,

- Mayotte,

- Montserrat,

- Saint Helena, Ascension Island, Tristan da Cunha,

- Turks and Caicos Islands,

- Wallis and Futuna Islands.

- St Pierre and Miquelon.

69

ANNEX II A

Community financial assistance:
9th EDF

Article 1

Allocation between the various instruments

1.

For the purposes set out in this Decision, the overall amount of Community financial
assistance for the period from 1 March 2001 until 31 December 2007, of EUR 175
million under the 9th European Development Fund (EDF) fixed by the Internal
Agreement21 is allocated as follows:

1.1.

EUR 153 million in the form of grants, including:

(a)

EUR 145 million for programmable support for long-term development,
humanitarian aid, emergency aid, refugee aid and the additional support in the
event of fluctuations in export earnings. This amount shall be used in particular
to finance the initiatives referred to in the Single Programming Documents
(SPD);

1.2.

1.3.

(b)

EUR 8 million to support regional cooperation and integration.

EUR 20 million shall be allocated to finance the Investment Facility.

EUR 2 million shall be allocated to studies or technical assistance measures on the
initiative or on the behalf of the Commission, notably for an overall evaluation of the
Decision to be made two years before it expires at the latest.

Article 2

Administration of resources

The EIB shall administer the loans made from its own resources, as well as the
operations financed under the Investment Facility. All other financial resources under
this Decision shall be administered by the Commission.

21

Internal Agreement between representatives of the Governments of the Member States, meeting within
the Council, on the financing and administration of Community Aid under the Financial protocol to the
Partnership Agreement between the African, Caribbean and Pacific States and the European
Community and its Member States signed in Cotonou (Benin) on 23 June 2000 and the allocation of
financial assistance for the Overseas Countries and Territories to which Part Four of the EC Treaty
applies.

70

Article 3

Allocation between the OCTs

1. The amount of EUR 145 million mentioned in Article 1(1) (a) of this Annex is allocated on
the basis of the needs and performance of the OCTs, in accordance with the following
principles.

2. An amount A of EUR 55 million is allocated to the OCTs whose economic development is
least advanced, namely those with a per capita Gross National Product - GNP - not exceeding
75% of the Community GNP, according to the available statistical data.

3. An amount B of EUR 55 million is allocated to the OCT with a per capita GNP not
exceeding the Community’s GNP, in order to finance priority actions for social development
and environmental protection, within the framework of the fight against poverty.

4. The allocation of amounts A and B takes into account the population, the level of the GNP,
the use made of previous EDFs, the respect of the principles of sound international tax and
financial management, constraints due to geographical characteristics,
the estimated
absorption capacity. Any allocation shall be such as to allow its effective use. It should be
decided in conformity with the principle of subsidiarity.

5. The question of a possible allocation to Greenland will be examined in the light of the
review provided for in Article 14 of the Protocol on the fishing conditions for the period
2001-2006.

6.

A non-allocated reserve C of EUR 35 million is set aside in order:

(a)

(b)

To finance humanitarian, emergency and refugee aid for all the OCTs and, if
necessary, the additional support in the event of fluctuations in export earnings,
in accordance with Annex II D;

To make new allocations in accordance with the development of the needs and
performance of the OCTs.

Performance is evaluated in an objective and transparent way taking into
account the use of the allocated resources, the effective implementation of the
on-going operations, the alleviation or reduction of poverty, the sustainable
development measures adopted;

(c)

If appropriate, to take the necessary measures, following the review referred to
in paragraph 5 above.

7. In accordance with the paragraphs above and without prejudice to the transfer of the
unspent balances from previous EDF, the indicative amounts allocated under the 9th EDF are
the following:

71

OCT

9th EDF INITIAL INDICATIVE
ALLOCATION

EUR 000 000

A

8

9.9

and

5.6

New Caledonia

French Polynesia

Wallis and Futuna

Mayotte

Pierre

St
Miquelon

Netherlands Antilles

Falkland Islands

Turks and Caicos

Anguilla

Montserrat

8.2

7.9

5.9

and

7.5

Saint Helena
dependencies
(Ascension,
da Cunha)

Tristan

2

Pitcairn

Total

Non-allocated C
reserve

B

11

10.6

3.5

5.3

6.8

8.3

3

0.2

0.1

5.7

1.1

TOTAL

11

10.6

11.5

15.2

12.4

8.3

3

8.4

8

11.6

8.6

2

EUR 110 million

EUR 35 million

8. The Commission, following a mid-term review, may decide a different allocation of any
non-allocated balances of the funds mentioned in this article. The procedures for this review
and the decision on any new allocation are adopted in accordance with Article 25 of this
Decision.

Article 4

1. Before the expiry of this Annex, the Commission, the OCT and, if appropriate under the
applicable national provisions, the Member States having special relations with the OCTs
shall assess the degree of realisation of commitments and disbursements. This assessment

72

shall constitute the basis for re-evaluating the overall amount of resources as well as for
evaluating the need for new resources to support financial cooperation under this Decision.

2.In the event of the funds provided for in any of the instruments of the Decision being
exhausted before the expiry of this Annex, the Council shall take the appropriate measures.

73

ANNEX II B

Community financial assistance:
European Investment Bank
Loans from own resources

Article 1

Amount

An amount of up to EUR 20 million as laid down in Article 5 of the Internal Agreement shall
be provided from the European Investment Bank in the form of loans from its own resources
in accordance with the conditions provided for by its statutes and this Annex.

Article 2

European Investment Bank

1.

(a)

(b)

(c)

2.

(a)

The Bank shall:

through the resources it manages,

contribute,
to the economic and industrial
development of the OCTs on a territorial and regional basis; and to this end, finance as
a priority productive projects and programmes or other investments aimed at promoting
the private sector in all economic sectors;

establish close cooperation links with national and regional development banks and with
banking and financial institutions of the OCTs and of the EU;

in consultation with the OCT concerned, adapt the arrangements and procedures for
if
implementing development finance cooperation, as set out
necessary, to take account of the nature of the projects and programmes and to act in
accordance with the objectives of this Agreement, within the framework of the
procedures laid down by its statute.

in this Agreement,

Loans from the Bank's own resources shall be granted under the following terms and
conditions:

the reference rate of interest shall be the rate applied by the Bank for a loan with the
same conditions as to currency, and repayment period on the day of signature of the
contract or on the date of disbursement;

(b)

however :

(i)

(ii)

in principle, public sector projects shall be eligible for an interest rate subsidy
of 3%;

private sector projects falling into the categories specified in Article 2 (7)(b) shall
be eligible for interest rates subsidies on the same terms as those specified in
Article 2(7)(b).

The final interest rate shall, in any case, never be less than 50% of the reference rate.

74

(c)

(d)

3.

the amount of the interest rate subsidy calculated in terms of its value at the times of
disbursement of the loan shall be charged against the interest subsidy allocation of the
Investment Facility as defined in Article 2(8) and 2(9), and paid directly to the Bank;

the repayment period of loans made by the Bank from its own resources shall be
determined on the basis of the economic and financial characteristics of the project, but
may not exceed 25 years. These loans shall normally comprise a grace period fixed by
reference to the construction period of the project.

For investments financed by the Bank from its own resources in public sector
companies, specific project-related guarantees or undertakings may be required from the
OCT concerned.

ARTICLE 3

Conditions for foreign exchange rate risk

In order to minimise the effects of exchange rate fluctuations, the problems of exchange rate
risk shall be dealt with in the following way:

(a)

(b)

in the case of equity participation designed to strengthen an enterprise's own funds, the
exchange rate risk shall, as a general rule, be borne by the Investment Facility;

in the case of risk capital financing for small-and medium-sized enterprises (SMEs), the
exchange rate risk shall, as a general rule, be shared by the Community, on the one part,
and by the other parties involved, on the other. On average, the foreign exchange rate
risk shall be shared equally;

(c) where

feasible

by
macroeconomic and financial stability, the Facility will endeavour to extend loans in
local OCT currencies, thus de facto taking the foreign exchange risk.

characterised

appropriate,

particularly

countries

and

in

ARTICLE 4

Conditions for foreign exchange transfer

The OCT concerned shall, in respect of operations under the Agreement, and in respect of
which they have given their written approval within the framework of this Agreement:

(a)

(b)

grant exemption from all national or local duties, fiscal charges on interest, commission
and amortisation of loans due in accordance with the law or laws of the OCTs
concerned;

place at the disposal of the beneficiaries the currency necessary for the payment of
interest, commission and the amortisation of loans due in terms of financing contracts
granted for the implementation of projects and programmes on their territories;

(c) make available to the Bank the foreign currency necessary for the transfer of all sums
received by it in national currency at the exchange rate applicable between the Euro or
other currencies of transfer and the national currency at the date of the transfer. These
include all forms of remuneration, such as, inter alia, interest, dividends, commissions
and fees, as well as the amortisation of loans and the proceeds from the sale of shares

75

due in terms of financing contracts granted for the implementation of projects and
programmes on their territories.

76

ANNEX II C

Community Financial assistance:
the EIB-managed Investment Facility

Article 1

Objective

An Investment Facility is set up to promote commercially viable enterprises, mainly in the
private sector but also those in the public sector supporting private sector development.

The terms and conditions of financing in relation to the operations of the Investment Facility
(Facility), the loans from own resources of the European Investment Bank (Bank) shall be as
laid down in this Annex, Annex II B and Articles 29 and 30 of the 9th EDF Internal
Agreement. These resources may be channelled to eligible enterprises, either directly or
indirectly, through eligible investment funds and/or financial intermediaries.

Article 2

Resources of the investment facility

1.

(a)

The resources of the Facility may be used, inter alia, to:

provide risk capital in the form of:

(i)

(ii)

equity participation in OCT enterprises, including financial institutions;

quasi-capital assistance to OCT enterprises, including financial institutions;

(iii) guarantees and other credit enhancements which may be used to cover political

and other investment-related risks, both for foreign and local investors or lenders.

(b)

provide ordinary loans.

Equity participation shall normally be for non-controlling minority holdings and shall

2.
be remunerated on the basis of the performance of the project concerned.

3.
Quasi-capital assistance may consist of shareholders' advances, convertible bonds,
conditional, subordinated and participating loans or any other similar form of assistance. Such
assistance may consist in particular of:

(a)

conditional loans, the servicing and/or the duration of which shall be linked to the
fulfilment of certain conditions with regard to the performance of the project; in the
specific case of conditional loans for pre-investment studies or other project-related
technical assistance, servicing may be waived if the investment is not carried out;

(b)

participating loans, the servicing and/or the duration of which shall be linked to the
financial return of the project;

77

(c)

subordinated loans, which shall be repaid only after other claims have been settled.

The remuneration of each operation shall be specified when the loan is made.

4.
However:

(a)

the remuneration shall normally
in the case of conditional or participating loans,
comprise a fixed interest rate of not more than 3% and a variable component related to
the performance of the project;

(b)

in the case of subordinated loans, the interest rate shall be market related.

Guarantees shall be priced so as to reflect

5.
characteristics of the operation.

the risks insured and the particular

6.
The interest rate of ordinary loans shall comprise a reference rate applied by the Bank
for comparable loans with the same terms and conditions as to grace and repayment periods
and a mark up determined by the Bank.

Ordinary loans may be extended on concessional

7.
following cases:

terms and conditions in the

(a)

(b)

for infrastructure projects in the Least Developed OCTs or in post-conflict countries
that are prerequisites for private sector development. In such cases, the interest rate of
the loan will be reduced by 3%;

for projects which involve restructuring operations in the framework of privatisation or
for projects with substantial and clearly demonstrable social or environmental benefits.
In such cases, loans may be extended with an interest rate subsidy the amount and form
of which will be decided with respect to the particular characteristics of the project.
However, the interest rate subsidy shall not be higher than 3%.

The final interest rate shall, in any case, never be less than 50% of the reference rate.

8.
The funds to be provided for these concessional purposes will be made available from
the Investment Facility and shall not exceed 5% of the overall amount allocated for
investment financing by the Investment Facility and by the Bank from its own resources.

Interest subsidies may be capitalised or may be used in the form of grants to support

9.
project-related technical assistance, particularly for financial institutions in the OCTs.

Article 3

Operations of the investment facility

1.
The Investment Facility shall operate in all economic sectors and support investments
of private and commercially run public sector entities, including revenue generating economic
and technological infrastructure critical for the private sector. The Facility shall:

(a)

be managed as a revolving fund and aim at being financially sustainable. Its operations
shall be on market-related terms and conditions and shall avoid creating distortions on
local markets and displacing private sources of finances;

78

(b)

endeavour to have a catalytic effect by encouraging the mobilisation of long-term local
resources and attracting foreign private investors and lenders to projects in the OCTs.

2.
On expiry of the Financial Protocol, and in the absence of a specific decision by the
Council of Ministers, the cumulative net reflows to the Investment Facility shall be carried
over to the next Protocol.

79

ANNEX II D

Community financial assistance :
Additional support in the event of short-term fluctuations in export earnings

Article 1

Principles

1.

2.

The degree of dependence of an OCT economy on the export of goods, and in
particular from agricultural and mining products shall, therefore, be a criterion for
determining the allocation of long-term development.

In order to mitigate the adverse effects of instability of export earnings and safeguard
the development programme jeopardised by the drop in revenue, additional financial
support may be mobilised from the programmable resources for the country's long-
term development on the basis of Articles 2 and 3.

Article 2

Eligibility criteria

1.

Eligibility for additional resources shall be established by:

a 10 % (2% in the case of least-developed countries) loss of export earnings
from goods compared with the arithmetical average of the earnings in the first
three years of the first four years preceding the application year;

(a)

or

a 10 % (2% in the case of least-developed countries ) loss of export earnings
from the total of agricultural or mineral products compared with the
arithmetical average of the earnings in the first three years of the first four
years preceding the application year for countries where the agricultural or
mineral export revenues represent more than 40 % of total export revenues
from goods;

(b)

a 10 % worsening in the programmed public deficit programmed for the year in
question or forecast for the following year.

2.

3.

Entitlement to additional support shall be limited to four successive years.

The additional resources shall be reflected in the public accounts of the country
concerned. They shall be utilised in accordance with programming rules and
methods including the specific provisions in Annex IV "Implementation and
management procedures", on the basis of agreements drawn up in advance
between the Community and the OCT concerned in the year following the
application. By agreement of both Parties the resources may be used to finance
programmes included in national budget. However a part of the additional
resources may also be set aside for specific sectors.

80

Article 3

Advances

The system for allocating additional resources shall provide for advances to cover any delays
in obtaining consolidated trade statistics and to ensure that the resources in question can be
included in the budget of the year following the application year. Advances shall be mobilised
on the basis of provisional export statistics drawn up by the government of the OCTs and
submitted to the Commission in advance of the official final consolidated statistics. The
maximum advance shall be 80 % of the estimated amount of additional resources for the
application year. The amounts thus mobilised shall be adjusted by common agreement
between the Commission and the government
in the light of final consolidated export
statistics and the final figure of the public deficit.

Article 4

Revision

The provisions in this Chapter shall be subject to review at the latest after two years of
operation and subsequently at the request of the Commission, a Member State or an OCT.

81

ANNEX II E

Community financial assistance:
Budgetary aid for developing countries

Without prejudice to future modifications of budgetary provisions, the OCTs benefit from the
following budget lines foreseen for developing countries within the general budget of the
European Union. Except if explicitly excluded, the OCTs may benefit from the general
budget funds granted to developing countries.

1.

Humanitarian aid (Title B7.2)

Council Decision 96/88/EC of 19 December 1995 concerning the approval by the
European Community of the Grains Trade Convention and the Food Aid Convention,
constituting the International Grains Agreement 1995 (OJ L 21 , 27.1.1996, p. 47).

Council Regulation (EC) No 1292/96 of 27 June 1996 on food aid policy and food aid
management and special operations in support of food security (OJ L 166, 5.7.1996,
p. 1).

Council Regulation (EC) No 1257/96 of 20 June 1996 concerning humanitarian aid
(OJ L 163, 2.7.1996, p. 1).

2.

Community measures to support NGOs (Chapter B7.60)

Resolution of the European Parliament of 14 May 1992 on the role of the non-
governmental organisations in development cooperation (OJ C 150, 15.6.1992,
p. 273).

Council Regulation (EC) No 1658/98 of 17 July 1998 on co-financing operations with
European non-governmental development organisations in fields of interest to the
developing countries (OJ L 213, 30.7.1998, p. 1).

3.

Training and promotion of awareness of development issues (Chapter B7.61)

Council Regulation (EC) No 2836/98 of 22 December 1998 on integrating gender
issues in development cooperation (OJ L 354, 30.12.1998, p. 5).

4.

Environment, health and the fight against drugs in the developing countries
(Chapter B7.62)

Council Regulation (EC) No 722/97 of 22 April 1997 on environmental measures in
developing countries in the context of sustainable development (OJ L 108, 25.4.1997,
p. 1). (this Regulation expires on 31 December 1999).

Proposal for a Council Regulation, presented by the Commission on 28 January 1999,
on measures to promote the full integration of the environmental dimension in the
development process of developing countries [COM (1999) 36 final].

Council Regulation (EC) No 2046/97 of 13 October 1997 on north-south cooperation
in the campaign against drugs and drug addiction (OJ L 287, 21.10.1997, p. 1).

–

–

–

–

–

–

–

–

82

–

–

–

–

–

Council Regulation (EC) No 550/97 of 24 March 1997 on HIV/AIDS-related
operations in developing countries (OJ L 85, 27.3.1997, p. 1).

5.

Population and demography in the developing countries (Chapter B7.63)

Council Regulation (EC) No 1484/97 of 22 July 1997 on aid for population policies
and programmes in the developing countries (OJ L 202, 30.7.1997, p. 1).

6.

Specific aid schemes in the development field (Chapter B7.64)

Council Regulation (EC) No 2258/96 of 22 November 1996 on rehabilitation and
reconstruction operations in developing countries (OJ L 306, 28.11.1996, p. 1).

Council Regulation (EC) No 1659/98 of 17 July 1998 on decentralised cooperation
(OJ L 213, 30.7.1998, p. 6).

7.

Campaign against sex tourism in third countries (Chapter B7.663)

Implementation of the activities envisaged under the campaign against child sex
tourism will continue on the basis of the Commission communication of 27 November
1996, which was welcomed both by the European Parliament (resolution of 6
November 1997) and the Council (declaration of 26 November 1997).

83

ANNEX II F

COMMUNITY FINANCIAL ASSISTANCE:

COMMUNITY PROGRAMMES OPEN TO THE OCTs

The following programmes, and any programmes succeeding them, shall apply to OCT
nationals within the framework of the quota for their Member State:

1.

(a)

(b)

(c)

(d)

2.

(a)

(b)

(c)

(d)

3.

3.1.

(a)

(b)

22

23

24

25

26

Education and training programmes:

Leonardo da Vinci, second phase of the Community vocational training action
programme, set up by Council Decision 1999/382/EC of 26 April 1999,22

promotion of European pathways
including
apprenticeship, set up by Council Decision 1999/51/EC of 21 December 1998,23

for work-linked training,

Socrates, second phase of the Community action programme in the field of
education, set up by Decision 253/2000/EC of the European Parliament and of
the Council of 24 January 2000,24

Youth Community action programme, established by Decision 1031/2000/EC of
the European Parliament and of the Council of 13 April 2000,25

The enterprise support programmes:

Multi-annual Programme for Enterprise and Entrepreneurship (2001-2005)
COM(2000)256 of 11.5.2000,

Artisanat,

Euromanagement,

Seed capital, set up by Council Decision 97/15/EC of 9 December 1996.26

Research, development and innovation programmes of the 5th Framework
Programme:

Theme programmes :

Specific programme for research, technological development and demonstration
on quality of life and management of living resources (1998 to 2002) (OJ L 64,
12.3.1999, p.1)

for research, technological development and demonstration on a user-friendly
information society (1998 to 2002) (OJ L 64, 12.3.1999, p.20)

OJ L 146, 11.6.1999, p. 33
OJ L 17, 22.1.1999, p. 45.
OJ L 28, 3.2.2000, p. 1
OJ L 117, 18.05.2000, p. 1.
OJ L 6, 10.1.1997, p. 25.

84

(c)

(d)

3.2.

(a)

(b)

(c)

4.

(a)

(b)

5.

Specific programme for research, technological development and demonstration
on competitive and sustainable growth (1998 to 2002) (OJ L 64, 12.3.1999,
p.40)

Specific programme for research, technological development and demonstration
on energy, environment and sustainable development (1998 to 2002) (OJ L 64,
12.3.1999, p.58)

Horizontal Programmes :

Specific programme on confirming the international role of Community research
(1998-2002) (OJ L 64, 12.3.1999, p.78)

Specific programme for research, technological development and demonstration
on promotion of innovation and encouragement of SME participation (1998-
2002) (OJ L 64, 12.3.1999, p.91)

Specific programme for research, technological development and demonstration
on improving the human research potential and the socio-economic knowledge
base (1998-2002) (OJ L 64, 12.3.1999, p.105)

Cultural and audio-visual programmes:

proposal for a Council decision on the implementation of a programme to
encourage the development, distribution and promotion of European audio-
visual works (Media Plus - Development, Distribution and Promotion) for the
period 2001-2005

Culture 2000 (2000-2004) , set up by Decision 508/2000/EC of the European
Parliament and the Council of 14 February 2000,27

The HRTP Japan programme (human resources training programme in Japan)
and topical missions, set up by Council Decision 92/278/EEC of 18 May 1992.28

27

28

OJ L 63, 10.3.2000, p. 1.
OJ L 144, 26.5.1992, p. 19.

85

ANNEX III

CONCERNING THE DEFINITION OF THE CONCEPT OF

"ORIGINATING PRODUCTS" AND

METHODS OF ADMINISTRATIVE COOPERATION

TABLE OF CONTENTS

TITLE I

GENERAL PROVISIONS

–

Article 1

Definitions

TITLE II

DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS"

–

–

–

–

–

–

–

–

–

Article 2

General requirements

Article 3

Wholly obtained products

Article 4

Sufficiently worked or processed products

Article 5

Insufficient working or processing operations

Article 6

Cumulation of origin

Article 7

Unit of qualification

Article 8

Accessories, spare parts and tools

Article 9

Sets

Article 10

Neutral elements

TITLE III

TERRITORIAL REQUIREMENTS

–

–

–

Article 11

Principle of territoriality

Article 12

Direct transport

Article 13

Exhibitions

TITLE IV

PROOF OF ORIGIN

–

–

–

–

–

Article 14

General requirements

Article 15

Procedure for the issue of a movement certificate EUR.1

Article 16 Movement certificates EUR.1 issued retrospectively

Article 17

Issue of a duplicate movement certificate EUR.1

Article 18
issued or made out previously

Issue of movement certificates EUR.1 on the basis of a proof of origin

86

–

–

–

–

–

–

–

–

–

–

–

–

Article 19

Conditions for making out an invoice declaration

Article 20

Approved exporter

Article 21

Validity of proof of origin

Article 22

Transit procedure

Article 23

Submission of proof of origin

Article 24

Importation by instalments

Article 25

Exemptions from proof of origin

Article 26

Information procedure for cumulation purposes

Article 27

Supporting documents

Article 28

Preservation of proof of origin and supporting documents

Article 29

Discrepancies and formal errors

Article 30

Amounts expressed in EUR

TITLE V

ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

–

–

–

–

–

–

–

Article 31 Mutual assistance

Article 32

Verification of proofs of origin

Article 33

Verification of suppliers declarations

Article 34

Dispute settlement

Article 35

Penalties

Article 36

Free zones

Article 37

Derogations

TITLE VI

CEUTA AND MELILLA

–

Article 38

Special conditions

TITLE VII

FINAL PROVISIONS

–

–

–

Article 39

Revision of Rules of Origin

Article 40

Annexes

Article 41

Implementation of the Annexe

ANNEXES

–

Annex 1:

Introductory notes

87

–

–

–

–

–

–

–

Annex 2
originating materials in order that
originating status

List of working or processing required to be carried out on non-
the product manufactured can obtain

Annex 3 :

Form for movement certificate EUR 1

Annex 4:

Invoice declaration

Annex 5 A: Supplier declaration for products having preferential origin status

Annex 5 B : Supplier declaration for products not having preferential origin
status

Annex 6 : Information certificate

Annex 7 :Form for application for a derogation

88

TITLE I

GENERAL PROVISIONS

Article 1

Definitions

For the purposes of this Annexe :

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

(k)

(l)

"manufacture" means any kind of working or processing including assembly or
specific operations;

"material" means any ingredient, raw material, component or part, etc., used in the
manufacture of the product;

"product" means the product being manufactured, even if it is intended for later use
in another manufacturing operation;

"goods" means both materials and products;

"customs value" means
the value as determined in accordance with the
1994 Agreement on implementation of Article VII of the General Agreement on
Tariffs and Trade (WTO Agreement on customs valuation);

"ex-works price" means the price paid for the product ex works to the manufacturer
in whose undertaking the last working or processing is carried out, provided the price
includes the value of all the materials used, minus any internal taxes which are, or
may be, repaid when the product obtained is exported;

"value of materials" means the customs value at the time of importation of the
non-originating materials used, or, if this is not known and cannot be ascertained, the
first ascertainable price paid for the materials in the territory concerned

"value of originating materials" means the value of such materials as defined in
subparagraph (g) applied mutatis mutandis;

"added value" shall be taken to be the ex-works price minus the customs value of
third-country materials imported into the Community, the ACP States or the OCT

"chapters" and "headings" mean the chapters and the headings (four-digit codes)
used in the nomenclature which makes up the Harmonised Commodity Description
and Coding System, referred to in this Annexe as "the Harmonised System" or "HS";

"classified" refers to the classification of a product or material under a particular
heading;

"consignment" means products which are either sent simultaneously from one
exporter to one consignee or covered by a single transport document covering their
shipment from the exporter to the consignee or, in the absence of such a document,
by a single invoice;

89

(m)

"territories" includes territorial waters.

TITLE II

DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS"

Article 2

General requirements

For the purpose of implementing the trade cooperation provisions of the Decision,
the following products shall be considered as originating in the OCT:

products wholly obtained in the OCT within the meaning of Article 3 of this
Annexe ;

products obtained in the OCT incorporating materials which have not been wholly
obtained there, provided that such materials have undergone sufficient working or
processing in the OCT within the meaning of Article 4 of this Annexe .

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

Originating products made up of materials wholly obtained or sufficiently worked or
processed in two or more OCT shall be considered as products originating in the
OCT where the last working or processing took place, provided this working or
processing goes beyond that referred to in Article 5 of this Annexe.

Article 3

Wholly obtained products

The following shall be considered as wholly obtained,
Community, or in the ACP States :

in the OCT,

in the

mineral products extracted from their soil or from their seabed;

vegetable products harvested there;

live animals born and raised there;

products from live animals raised there;

products obtained by hunting or fishing conducted there;

products of sea fishing and other products taken from the sea outside the territorial
waters by their vessels;

products made aboard their factory ships exclusively from products referred to in
subparagraph (f);

1.

(a)

(b)

2.

1.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

90

(h)

(i)

(j)

(k)

2.

(a)

(b)

(c)

used articles collected there fit only for the recovery of raw materials, including used
tyres fit only for retreading or for use as waste;

waste and scrap resulting from manufacturing operations conducted there;

products extracted from marine soil or subsoil outside their territorial waters
provided that they have sole rights to work that soil or subsoil;

goods produced there exclusively from the products specified in subparagraphs (a)
to (j).

The terms "their vessels" and "their factory ships" in paragraph 1(f) and (g) shall
apply only to vessels and factory ships:

which are registered or recorded in an OCT, in an EC Member State or in an ACP
State

which sail under the flag of an OCT, of an EC Member State or of an ACP State ;

which are owned to an extent of at least 50 per cent by OCT, Member State or ACP
nationals , or by a company with its head office in one of these States or OCT, of
which Chairman of the Board of Directors or the Supervisory Board, and the
majority of the members of such boards are OCT, Member State, or ACP nationals
and of which, in addition, in the case of partnerships or limited companies, at least
half the capital belongs to Member States or ACP States or to public bodies or
nationals of the said States, or of an OCT;

(d)

of which at least 50 % of the crew, master and officers included, are OCT, Member
State, or ACP nationals.;

3.
Notwithstanding the provisions of paragraph 2, where an OCT offers the
Community the opportunity to negotiate a fisheries agreement and the Community
does not accept this offer, the OCT concerned may charter or lease third country
vessels to undertake fisheries activities in its exclusive economic zone and request
that such vessels be treated as "their vessels" under the following conditions:

that the OCT offered the Community the opportunity to negotiate a fisheries

-
agreement and the Community did not accept this offer;

that at least 50% of the crew, master and officers included are OCT, Member

-
State, or ACP nationals.

that the charter or lease contract has been accepted by the Commission as
-
providing adequate opportunities for developing the capacity of the OCT concerned
to fish on its own account and in particular as conferring on the OCT concerned the
responsibility for the nautical and commercial management of the vessel placed at its
disposal for a significant period of time.

91

Article 4

Sufficiently worked or processed products

1.

For the purposes of this Annexe, products which are not wholly obtained are
considered to be sufficiently worked or processed in the OCT, in the Community or
in the ACP States, when the conditions set out in the list in Annex 2 to this Annex
are fulfilled.

The conditions referred to above indicate,
for all products covered by this
Agreement, the working or processing which must be carried out on non-originating
materials used in manufacturing and apply only in relation to such materials.
Accordingly, it follows that if a product, which has acquired originating status by
fulfilling the conditions set out in the list is used in the manufacture of another
product, the conditions applicable to the product in which it is incorporated do not
apply to it, and no account shall be taken of the non-originating materials which may
have been used in its manufacture.

Notwithstanding paragraph 1, non-originating materials which, according to the
conditions set out in the list, should not be used in the manufacture of a given
product may nevertheless be used, provided that:

their total value does not exceed 15 per cent of the ex-works price of the product;

any of the percentages given in the list for the maximum value of non-originating
materials are not exceeded through the application of this paragraph.

2.

(a)

(b)

3.

Paragraphs 1 and 2 shall apply except as provided in Article 5.

Article 5

Insufficient working or processing operations

1.

(a)

(b)

Without prejudice to paragraph 2, the following operations shall be considered as
insufficient working or processing to confer the status of originating products,
whether or not the requirements of Article 4 are satisfied:

operations to ensure the preservation of products in good condition during transport
and storage (ventilation, spreading out, drying, chilling, freezing, 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 or
milling sugar, pulverising, colouring,
sorting, classifying, grading, matching
(including the making-up of sets of articles), washing, painting, cutting up; shelling,
stoning, peeling of fruits, nuts and vegetables ;

(c)

(i)

changes of packaging and breaking up and assembly of consignments;

(ii)

simple placing in bottles, flasks, bags, cases, boxes, fixing on cards or
boards, etc., and all other simple packaging operations;

92

(d)

(e)

(f)

(g)

(h)

2.

1.

2.

3.

4.

5.

affixing marks,
packaging;

labels and other like distinguishing signs on products or their

simple mixing of products, whether or not of different kinds, where one or more
components of the mixtures do not meet the conditions laid down in this Annexe to
enable them to be considered as originating in the OCT, in the Community or in an
ACP State;

simple assembly of parts to constitute a complete product;

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

slaughter of animals.

All the operations carried out in either the OCT, the Community or the ACP States
on a given product shall be considered together when determining whether the
working or processing undergone by that product is to be regarded as insufficient
within the meaning of paragraph 1.

Article 6

Cumulation of origin

Materials originating in the Community or in the ACP States shall be considered as
materials originating in the OCT when incorporated into a product obtained there. It
shall not be necessary that such materials have undergone sufficient working or
processing, provided they have undergone working or processing going beyond that
referred to in Article 5.

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
subsequent working or processing in the OCT.

Products which have acquired originating status by virtue of paragraph 2 shall only
continue to be considered as products originating in the OCT, when the working or
processing carried out in the OCT goes beyond that referred to in Article 5.

Paragraphs 1 and 2 shall not apply to the products falling within Chapters 1 to 24 of
the Harmonised System if the materials used originate in the Community and enjoy
financial benefits when exported.

Paragraphs 1 and 2 shall not apply to products falling within Chapter 17 and HS
tariff headings 1806 10 30 and 1806 10 90.

With regard to products falling within HS code 1006 and without prejudice to the
possible increases referred to in subparagraphs 4 and 5, the ACP/OCT cumulation of
origin shall be allowed up to a total annual quantity of 160 000 tonnes expressed as
husked rice equivalent, which will include the tariff quota for rice originating in the
ACP States provided for in the ACP-EC Partnership Agreement.

To that end, the issue of import licences shall be spaced out over the year in a series
of periods laid down to ensure balanced market management.

93

An initial issue of import licences for a quantity of 35 000 tonnes expressed as
husked rice equivalent shall be made to the OCT’s in January each year, and within
this quantity, import licences for a quantity of 10 000 tonnes expressed as husked
rice equivalent shall be issued to the least developed OCT listed in Annexe Ib. OCT
imports may reach the level of 160 000 tonnes referred to in the first paragraph,
including the above-mentioned 35 000 tonnes, without prejudice to any increases
referred to in subparagraphs 4 and 5, in so far as the ACP States do not actually use
their direct export possibilities under the quota referred to in the first subparagraph.

In accordance with the procedure laid down in Article 22 of Regulation (EC) No
3072/95,
the Commission may increase the quantity referred to in the first
subparagraph by a maximum of 20 000 tonnes expressed as husked rice equivalent if,
during April and once it has a sufficiently clear picture of the current Community
marketing year, it finds that such an increase will not disrupt the Community market.

If the Commission finds, as from 1 August, that there is an established risk of a
shortage of Indica rice on the Community market, it may, by way of derogation from
subparagraphs 1 to 4 and in accordance with normal management procedures,
increase the above quantities.

For the purposes of implementing this paragraph, milling or semi-milling operations
shall be considered as sufficient to confer the status of OCT-originating products.

The Commission shall adopt the implementing arrangements by the same procedure.

The quantities set out in this paragraph may not be carried over from one year to the
next.

Article 7

Unit of qualification

1.

(a)

(b)

2.

The unit of qualification for the application of the provisions of this Annexe shall be
the particular product which is considered as the basic unit when determining
classification using the nomenclature of the Harmonised System.

Accordingly, it follows that:

when a product composed of a group or assembly of articles is classified under the
terms of the Harmonised System in a single heading, the whole constitutes the unit of
qualification;

when a consignment consists of a number of identical products classified under the
same heading of the Harmonised System, each product must be taken individually
when applying the provisions of this Annexe.

Where, under General Rule 5 of the Harmonised System, packaging is included with
the product for classification purposes, it shall be included for the purposes of
determining origin.

94

Article 8

Accessories, spare parts and tools

Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus
or vehicle, which are part of the normal equipment and included in the price thereof or which
are not separately invoiced, shall be regarded as one with the piece of equipment, machine,
apparatus or vehicle in question.

Article 9

Sets

Sets, as defined in General Rule 3 of the Harmonised System, shall be regarded as originating
when all component products are originating. Nevertheless, when a set
is composed of
originating and non-originating products, the set as a whole shall be regarded as originating,
provided that the value of the non-originating products does not exceed 15 per cent of the
ex-works price of the set.

Article 10

Neutral elements

In order to determine whether a product originates, it shall not be necessary to determine the
origin of the following which might be used in its manufacture:

(a)

(b)

(c)

(d)

energy and fuel;

plant and equipment;

machines and tools;

goods which do not enter and which are not
composition of the product.

intended to enter into the final

95

TITLE III

TERRITORIAL REQUIREMENTS

Article 11

Principle of territoriality

1.

2.

(a)

(b)

1.

2.

(a)

The conditions set out in Title II relative to the acquisition of originating status must
be fulfilled without interruption in the OCT, except as provided for in Article 6.

If originating goods exported from the OCT, the Community, or the ACP States to
another country are returned, they must be considered as non-originating, unless it
can be demonstrated to the satisfaction of the customs authorities that:

the goods returned are the same goods as those exported;

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

Article 12

Direct transport

The preferential treatment provided for under the trade cooperation provisions of the
Decision applies only to products, satisfying the requirements of this Annexe, which
are transported directly between the territory of the OCT, of the Community, or of
the ACP States , without entering any other territory. However, products constituting
one single consignment may be transported through other territories with, should the
occasion arise, transhipment or temporary warehousing in such territories, provided
that they remain under the surveillance of the customs authorities in the country of
transit or warehousing and do not undergo operations other than unloading, reloading
or any operation designed to preserve them in good condition.

Originating products may be transported by pipeline across territory other than that
of an OCT, of the Community, or of an ACP State .

Evidence that the conditions set out in paragraph 1 have been fulfilled shall be
supplied to the customs authorities of the importing country by the production of:

a single transport document covering the passage from the exporting country or
territory through the country of transit; or

(b)

a certificate issued by the customs authorities of the country of transit:

(i)

giving an exact description of the products;

(ii)

stating the dates of unloading and reloading of the products and, where
applicable, the names of the ships, or the other means of transport used;

96

(iii)

certifying the conditions under which the products remained in the transit
country; or

(c)

failing these, any substantiating documents.

1.

(a)

(b)

(c)

(d)

2.

3.

1.

(a)

Article 13

Exhibitions

Originating products, sent from an OCT for exhibition in a country other than an
OCT, an ACP State or a Member State and sold after the exhibition for importation
in the Community shall benefit on importation from the provisions of the Decision
provided it is shown to the satisfaction of the customs authorities that:

an exporter has consigned these products from an OCT to the country in which the
exhibition is held and has exhibited them there;

the products have been sold or otherwise disposed of by that exporter to a person in
the Community;

the products have been consigned during the exhibition or immediately thereafter in
the state in which they were sent for exhibition;

the products have not, since they were consigned for exhibition, been used for any
purpose other than demonstration at the exhibition.

A proof of origin must be issued or made out in accordance with the provisions of
Title IV and submitted to the customs authorities of the importing country in the
normal manner. The name and address of the exhibition must be indicated thereon.
Where necessary, additional documentary evidence of the conditions under which
they have been exhibited may be required.

Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair
or similar public show or display which is not organized for private purposes in
shops or business premises with a view to the sale of foreign products, and during
which the products remain under customs control.

TITLE IV

PROOF OF ORIGIN

Article 14

General requirements

Products originating in the OCT shall, on importation into the Community benefit
from this Decision upon submission of either:

a movement certificate EUR.1, a specimen of which appears in Annex 3 to this
Annex; or

97

(b)

in the cases specified in Article 19(1), a declaration, the text of which appears in
Annex 4 to this Annex, given by the exporter on an invoice, a delivery note or any
other commercial document which describes the products concerned in sufficient
detail
to enable them to be identified (hereinafter referred to as the "invoice
declaration").

2.

1.

2.

3.

4.

5.

6.

7.

Notwithstanding paragraph 1, originating products within the meaning of this
Annexe shall, in the cases specified in Article 25, benefit from this Decision without
it being necessary to submit any of the documents referred to above.

Article 15

Procedure for the issue of a movement certificate EUR.1

A movement certificate EUR.1 shall be issued by the customs authorities of the
exporting OCT on application having been made in writing by the exporter or, under
the exporter's responsibility, by his authorized representative.

For this purpose, the exporter or his authorized representative shall fill out both the
movement certificate EUR.1 and the application form, specimens of which appear in
Annex 3 to this Annex. These forms shall be completed in accordance with the
provisions of this Annexe. If they are hand-written, they shall be completed in ink in
printed characters. The description of the products must be given in the box reserved
for this purpose without leaving any blank lines. Where the box is not completely
filled, a horizontal line must be drawn below the last line of the description, the
empty space being crossed through.

The exporter applying for the issue of a movement certificate EUR.1 shall be
prepared to submit at any time, at the request of the customs authorities of the
exporting OCT where the movement certificate EUR.1 is issued, all appropriate
documents proving the originating status of the products concerned as well as the
fulfilment of the other requirements of this Annexe.

A movement certificate EUR.1 shall be issued by the customs authorities of the
exporting OCT if the products concerned can be considered as products originating
in the OCT, in the ACP or in the Community and fulfil the other requirements of this
Annexe.

The issuing customs authorities shall
take any steps necessary to verify the
originating status of the products and the fulfilment of the other requirements of this
Annexe. For this purpose, they shall have the right to call for any evidence and to
carry out any inspection of the exporter's accounts or any other check considered
appropriate. The issuing customs authorities shall also ensure that the forms referred
to in paragraph 2 are duly completed. In particular, they shall check whether the
space reserved for the description of the products has been completed in such a
manner as to exclude all possibility of fraudulent additions.

The date of issue of the movement certificate EUR.1 shall be indicated in Box 11 of
the certificate.

A movement certificate EUR.1 shall be issued by the customs authorities and made
available to the exporter as soon as actual exportation has been effected or ensured.

98

Article 16

Movement certificates EUR.1 issued retrospectively

Notwithstanding Article 15(7), a movement certificate EUR.1 may exceptionally be
issued after exportation of the products to which it relates if:

it was not
omissions or special circumstances; or

issued at

the time of exportation because of errors or involuntary

it is demonstrated to the satisfaction of the customs authorities that a movement
certificate EUR.1 was issued but was not accepted at
importation for technical
reasons.

For the implementation of paragraph 1, the exporter must indicate in his application
the place and date of exportation of the products to which the movement certificate
EUR.1 relates, and state the reasons for his request.

The customs authorities may issue a movement certificate EUR.1 retrospectively
only after verifying that the information supplied in the exporter's application agrees
with that in the corresponding file.

Movement certificates EUR.1 issued retrospectively must be endorsed with one of
the following phrases:

1.

(a)

(b)

2.

3.

4.

"NACHTRÄGLICH AUSGESTELLT", "DÉLIVRÉ A POSTERIORI",

"RILASCIATO A POSTERIORI", "AFGEGEVEN A POSTERIORI",

"ISSUED RETROSPECTIVELY", "UDSTEDT EFTERFØLGENDE",
ΕΚ∆ΟΘΕΝ ΕΚ ΤΩΝ ΥΣΤΕΡΩΝ
"

", "EXPEDIDO A POSTERIORI",

"EMITIDO A POSTERIORI", "ANNETTU JÄLKIKÄTEEN",

"UTFÄRDAT I EFTERHAND",

5.

1.

2.

The endorsement referred to in paragraph 4 shall be inserted in the "Remarks" box of
the movement certificate EUR.1.

Article 17

Issue of a duplicate movement certificate EUR.1

In the event of theft, loss or destruction of a movement certificate EUR.1, the
exporter may apply to the customs authorities which issued it for a duplicate made
out on the basis of the export documents in their possession.

The duplicate issued in this way must be endorsed with one of the following words:

"DUPLIKAT",
ΑΝΤΙΓΡΑΦΟ
"

"DUPLICATA",

"DUPLICATO",

"DUPLICAAT",

"DUPLICATE",

", "DUPLICADO", "SEGUNDA VIA", "KAKSOISKAPPALE",.

99

3.

4.

The endorsement referred to in paragraph 2 shall be inserted in the "Remarks" box of
the duplicate movement certificate EUR.1.

The duplicate, which must bear the date of issue of the original movement
certificate EUR.1, shall take effect as from that date.

Article 18

Issue of movement certificates EUR.1 on the basis of a
proof of origin issued or made out previously

When originating products are placed under the control of a customs office in the Community
or in an OCT , it shall be possible to replace the original proof of origin by one or more
movement certificates EUR.1 for the purpose of sending all or some of these products
elsewhere within the Community or within the OCT. The replacement movement
certificate(s) EUR.1 shall be issued by the customs office under whose control the products
are placed.

Article 19

Conditions for making out an invoice declaration

1.

(a)

(b)

2.

3.

4.

5.

An invoice declaration as referred to in Article 14(1)(b) may be made out:

by an approved exporter within the meaning of Article 20, or

by any exporter for any consignment consisting of one or more packages containing
originating products whose total value does not exceed 6 000EUR.

An invoice declaration may be made out if the products concerned can be considered
as products originating in the OCT, in the ACP States or in the Community and fulfil
the other requirements of this Annexe.

The exporter making out an invoice declaration shall be prepared to submit at any
time, at the request of the customs authorities of the exporting country or territory, all
appropriate documents proving the originating status of the products concerned as
well as the fulfilment of the other requirements of this Annexe.

An invoice declaration shall be made out by the exporter by typing, stamping or
printing on the invoice, the delivery note or another commercial document, the
declaration, the text of which appears in Annex 4 to this Annex, using one of the
linguistic versions set out in that Annex and in accordance with the provisions of the
domestic law of the exporting country or territory. If the declaration is hand-written,
it shall be written in ink in printed characters.

Invoice declarations shall bear the original signature of the exporter in manuscript.
However, an approved exporter within the meaning of Article 20 shall not be
required to sign such declarations provided that he gives the customs authorities of
the exporting country a written undertaking that he accepts full responsibility for any
invoice declaration which identifies him as if it had been signed in manuscript by
him.

100

6.

1.

2.

3.

4.

5.

1.

2.

3.

An invoice declaration may be made out by the exporter when the products to which
it relates are exported, or after exportation on condition that it is presented in the
importing country no longer than two years after the importation of the products to
which it relates.

Article 20

Approved exporter

The customs authorities of the exporting OCT may authorise any exporter who
makes frequent shipments of products under the trade cooperation provisions of the
Decision to make out invoice declarations irrespective of the value of the products
concerned. An exporter seeking such authorisation must offer to the satisfaction of
the customs authorities all guarantees necessary to verify the originating status of the
products as well as the fulfilment of the other requirements of this Annexe.

The customs authorities may grant the status of approved exporter subject to any
conditions which they consider appropriate.

The customs authorities shall grant to the approved exporter a customs authorisation
number which shall appear on the invoice declaration.

The customs authorities shall monitor the use of the authorisation by the approved
exporter.

The customs authorities may withdraw the authorisation at any time. They shall do
so where the approved exporter no longer offers the guarantees referred to in
paragraph 1, does not fulfil the conditions referred to in paragraph 2 or otherwise
makes an incorrect use of the authorisation.

Article 21

Validity of proof of origin

A proof of origin shall be valid for ten months from the date of issue in the exporting
OCT, and must be submitted within the said period to the customs authorities of the
importing country.

Proofs of origin which are submitted to the customs authorities of the importing
country after the final date for presentation specified in paragraph 1 may be accepted
for the purpose of applying preferential treatment, where the failure to submit these
documents by the final date set is due to exceptional circumstances.

In other cases of belated presentation, the customs authorities of the importing
country may accept the proofs of origin where the products have been submitted
before the said final date.

101

Article 22

Transit procedure

When the products enter an OCT or an ACP State other than the country of origin, a
further period of validity of 4 months shall commence on the date on which the
customs authorities in the country of transit enter the following in box 7 of the
certificate EUR.1:

–

–

–

–

the word "transit",

the name of the country of transit,

the official stamp, a specimen of which had been made available to the
Commission, in conformity with Article 31,

date of the endorsements.

Article 23

Submission of proof of origin

Proofs of origin shall be submitted to the customs authorities of the importing country in
accordance with the procedures applicable in that country. The said authorities may require a
translation of a proof of origin and may also require the import declaration to be accompanied
by a statement from the importer to the effect that the products meet the conditions required
for the implementation of the Decision.

Article 24

Importation by instalments

Where, at the request of the importer and on the conditions laid down by the customs
authorities of the importing country, dismantled or non-assembled products within the
meaning of General Rule 2(a) of the Harmonised System falling within Sections XVI
and XVII or heading Nos 7308 and 9406 of the Harmonised System are imported by
instalments, a single proof of origin for such products shall be submitted to the customs
authorities upon importation of the first instalment.

Article 25

Exemptions from proof of origin

1.

Products sent as small packages from private persons to private persons or forming
part of travellers' personal luggage shall be admitted as originating products without
requiring the submission of a proof of origin, provided that such products are not
imported by way of trade and have been declared as meeting the requirements of this
Annexe and where there is no doubt as to the veracity of such a declaration. In the
case of products sent by post,
this declaration can be made on the customs
declaration CN22/CN23 or on a sheet of paper annexed to that document.

102

2.

3.

1.

2.

3.

4.

5.

6.

7.

Imports which are occasional and consist solely of products for the personal use of
the recipients or travellers or their families shall not be considered as imports by way
of trade if it
is evident from the nature and quantity of the products that no
commercial purpose is in view.

Furthermore, the total value of these products shall not exceed 500 EUR in the case
of small packages or 1 200 EUR in the case of products forming part of travellers'
personal luggage.

Article 26

Information procedure for cumulation purposes

When Article 2 (2) or Article 6 (1) are applied, the evidence of originating status
within the meaning of this annexe of the materials coming from the other OCT, the
Community or the ACP States shall be given by a movement certificate EUR 1 or by
the supplier’s declaration, a specimen of which appears in Annex 5 A to this Annex,
given by the exporter in the country from which the materials came.

When Article 2(2) or Article 6 (2) are applied, the evidence of the working or
processing carried out in the other OCT, the Community or in the ACP States shall
be given by the supplier’s declaration a specimen of which appears in Annex 5 B to
this Annex, given by the exporter in the country from which the materials came.

A separate supplier's declaration shall be given by the supplier for each consignment
of material on the commercial invoice related to that shipment or in an annex to that
invoice, or on a delivery note or other commercial document related to that shipment
which describes the materials concerned in sufficient detail to enable them to be
identified.

The supplier's declaration may be made out on a pre-printed form.

The suppliers' declarations shall be signed in manuscript. However, where the
invoice and the supplier's declaration are established using electronic data-processing
methods, the supplier's declaration need not be signed in manuscript provided the
responsible official in the supplying company is identified to the satisfaction of the
customs authorities in the country or territory where the suppliers' declarations are
the
established. The said customs authorities may lay down conditions for
implementation of this paragraph.

The supplier’s declarations are submitted to the competent customs office in the
exporting OCT requested to issue the movement certificate EUR 1.

Suppliers' declarations made and information certificates issued before the date of
entry into force of this Decision in accordance with Article 23 of Annex II to
Decision 91/482/EEC shall remain valid.

103

Article 27

Supporting documents

The documents referred to in Articles 15(3) and 19(3) used for the purpose of proving that
products covered by a movement certificate EUR.1 or an invoice declaration can be
considered as products originating in an OCT or in an ACP or in the Community and fulfil the
other requirements of this Annexe may consist inter alia of the following:

1.

2.

3.

4.

1.

2.

3.

4.

1.

direct evidence of the processes carried out by the exporter or supplier to obtain the
goods concerned, contained for example in his accounts or internal bookkeeping;

documents proving the originating status of materials used, issued or made out in an
OCT, an ACP State or in the Community where these documents are used in
accordance with domestic law;

in the
documents proving the working or processing of materials in the OCT,
Community, or in the ACP States , issued or made out in an OCT, in the Community
or in an ACP State, where these documents are used in accordance with domestic
law;

movement certificates EUR.1 or invoice declarations proving the originating status
of materials used, issued or made out in the OCT, in the ACP States or in the
Community and in accordance with this Annexe .

Article 28

Preservation of proof of origin and supporting documents

The exporter applying for the issue of a movement certificate EUR.1 shall keep for at
least three years the documents referred to in Article 15(3).

The exporter making out an invoice declaration shall keep for at least three years a
copy of this invoice declaration as well as the documents referred to in Article 19(3).

The customs authorities of the exporting OCT issuing a movement certificate EUR.1
shall keep for at least three years the application form referred to in Article 15(2).

The customs authorities of the importing country shall keep for at least three years
the movement certificates EUR.1 and the invoice declarations submitted to them.

Article 29

Discrepancies and formal errors

The discovery of slight discrepancies between the statements made in the proof of
origin and those made in the documents submitted to the customs office for the
purpose of carrying out the formalities for importing the products shall not ipso facto
render the proof of origin null and void if it is duly established that this document
does correspond to the products submitted.

104

2.

1.

2.

3.

1.

2.

Obvious formal errors such as typing errors on a proof of origin should not cause this
document to be rejected if these errors are not such as to create doubts concerning the
correctness of the statements made in this document.

Article 30

Amounts expressed in EUR

The amounts to be used in any given national currency of a Member State or of an
OCT shall be the equivalent in that national currency of the amounts expressed in
EUR as at the first working day in October 1999.

The amounts expressed in EUR and their equivalents in the national currencies of
some EC Member States and of the OCT shall be reviewed by the Customs Code
Committee (Origin Section) at the request of the Community or of the OCT. When
carrying out this review, the Community shall ensure that there will be no decrease in
the amounts to be used in any national currency and shall furthermore consider the
desirability of preserving the effects of the limits concerned in real terms. For this
purpose, it may decide to modify the amounts expressed in EUR.

When the products are invoiced in the currency of another EC Member State, the
importing country shall recognise the amount notified by the Member State
concerned.

TITLE V

ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

Article 31

Mutual assistance

The OCT shall send to the Commission specimens of the stamps used together with
the addresses of the customs authorities competent to issue movement certificates
EUR.1 and carry out the subsequent verification of movement certificates EUR.1 and
invoice declarations.

Movement certificates EUR.1 shall be accepted for
preferential treatment from the date the information is received by the Commission.

the purpose of applying

The Commission shall send this information to the customs authorities of the
Member States.

In order to ensure the proper application of this Annexe , the OCT, the Community
through the competent customs
and the ACP States shall assist each other,
administrations, in checking the authenticity of the movement certificates EUR.1 or
the invoice declarations and the correctness of the information given in these
documents.

The authorities consulted shall furnish the relevant
conditions under which the product has been made,

information concerning the
indicating especially the

105

1.

2.

3.

4.

5.

6.

7.

conditions in which the rules of origin have been respected in the various OCT, ACP
States or Member States concerned.

Article 32

Verification of proofs of origin

Subsequent verifications of proofs of origin shall be carried out at random or
whenever the customs authorities of the importing country have reasonable doubts as
to the authenticity of such documents,
the originating status of the products
concerned or the fulfilment of the other requirements of this Annexe .

For the purposes of implementing the provisions of paragraph 1,
the customs
authorities of the importing country shall return the movement certificate EUR.1 and
the invoice, if it has been submitted, the invoice declaration, or a copy of these
the exporting OCT giving, where
documents,
appropriate, the reasons for the enquiry. Any documents and information obtained
suggesting that the information given on the proof or origin is incorrect shall be
forwarded in support of the request for verification.

to the customs authorities of

The verification shall be carried out by the customs authorities of the exporting OCT.
For this purpose, they shall have the right to call for any evidence and to carry out
any inspection of the exporter's accounts or any other check considered appropriate.

If the customs authorities of the importing country decide to suspend the granting of
preferential treatment to the products concerned while awaiting the results of the
verification, release of the products shall be offered to the importer subject to any
precautionary measures judged necessary.

The customs authorities requesting the verification shall be informed of the results of
this verification as soon as possible. These results must indicate clearly whether the
documents are authentic and whether the products concerned can be considered as
products originating in the in the OCT, in the ACP or in the Community and fulfil
the other requirements of this Annexe .

If in cases of reasonable doubt there is no reply within ten months of the date of the
verification request or if the reply does not contain sufficient
information to
determine the authenticity of the document in question or the real origin of the
products,
in exceptional
circumstances, refuse entitlement to the preferences.

requesting customs

authorities

except

shall,

the

Where the verification procedure or any other available information appears to
indicate that the provisions of this Annexe are being contravened, the OCT on its
own initiative or at the request of the Community shall carry out appropriate enquires
or arrange for such enquiries to be carried out with due urgency to identify and
prevent such contraventions. The Commission may participate in the enquiries.

106

Article 33

Verification of suppliers' declarations

1.

2.

3.

4.

5.

6.

Verification of suppliers' declaration may be carried out at random or whenever the
customs authorities of the importing country have reasonable doubts as to the
authenticity of the document or the accuracy or completeness of the information
concerning the true origin of the materials in question.

The customs authorities to which a supplier's declaration is submitted may request
the customs authorities of the State where the declaration was made to issue an
information certificate, a specimen of which appears in Annex 6 to this Annexe .
Alternatively, the customs authorities to which a supplier's declaration is submitted
may request the exporter to produce an information certificate issued by the customs
authorities of the State where the declaration was made.

A copy of the information certificate shall be preserved by the office which has
issued it for at least three years.

The requesting customs authorities shall be informed of the results of the verification
as soon as possible. The results must be such as to indicate positively whether the
declaration concerning the status of the materials is correct.

For the purpose of verification, suppliers shall keep for not less than three years a
copy of the document containing the declaration together with all necessary evidence
showing the true status of the materials.

The customs authorities in the State where the supplier's declaration is established
shall have the right to call for any evidence or to carry out any check which they
consider appropriate in order to verify the correctness of any supplier's declaration.

Any movement certificate EUR.1 issued or made out on the basis of an incorrect
supplier's declaration shall be considered null and void.

Article 34

Dispute settlement

Where disputes arise in relation to the verification procedures of Articles 32 and 33 which
cannot be settled between the customs authorities requesting a verification and the customs
authorities responsible for carrying out this verification or where they raise a question as to
the interpretation of this Annexe , they shall be submitted to the Customs Code Committee -
Origin Section instituted by Council Regulation (EEC) No 2913/92 of 12 October 1992
establishing the Community Customs Code.29

In all cases the settlement of disputes between the importer and the customs authorities of the
importing country shall be under the legislation of the said country.

29

OJ L 302, 19.10.1992, p. 1.

107

Article 35

Penalties

Penalties shall be imposed on any person who draws up, or causes to be drawn up, a
document which contains incorrect information for the purpose of obtaining a preferential
treatment for products.

Article 36

Free zones

1.

2.

The OCT and the Member States shall take all necessary steps to ensure that
products traded under cover of a proof of origin or a supplier’s declaration and which
in the course of transport use a free zone situated in their territory, are not substituted
by other goods and do not undergo handling other than normal operations designed
to prevent their deterioration.

By means of an exemption to the provisions contained in paragraph 1, when
originating products are imported into a free zone under cover of a proof of origin
and undergo treatment or processing, the authorities concerned shall issue a new
EUR.1 certificate at the exporter's request, if the treatment or processing undergone
is in conformity with the provisions of this Annexe .

Article 37

Derogations

1.

Derogations from this Annexe may be adopted where the development of existing
industries or the creation of new industries justifies them.

The Member State or, where appropriate,
the relevant authorities of the OCT
concerned shall notify the Community of its request for a derogation together with
the reasons for the request in accordance with paragraph 2.

The Community shall respond positively to all the requests which are duly justified
in conformity with this Article and which cannot cause serious injury to an
established Community industry.

2.

In order to facilitate the examination of requests for derogation, the Member State or
OCT making the request shall, by means of the form given in Annex 7 to this
Annexe , furnish in support of its request the fullest possible information covering in
particular the points listed below:

–

–

–

–

description of the finished product,

nature and quantity of materials originating in a third country,

nature and quantity of materials originating in ACP States, the Community or
the OCT, or which have been processed there,

manufacturing processes,

108

–

–

–

–

–

–

value added,

number of employees in the enterprise concerned,

anticipated volume of exports to the Community,

other possible sources of supply for raw materials

reasons for the duration requested in the light of efforts made to find new
sources of supply,

other observations.

The same rules shall apply to any requests for extension.

3.

The examination of requests shall in particular take into account:

(a)

the level of development or the geographical situation of the OCT concerned;

(b)

(c)

cases where the application of the existing rules of origin would significantly
affect the ability of an existing industry in OCT to continue its exports to the
Community, with particular reference to cases where this could lead to
cessation of its activities;

specific cases where it can be clearly demonstrated that significant investment
in an industry could be deterred by the rules of origin and where a derogation
favouring the realisation of the investment programme would enable these
rules to be satisfied by stages.

In every case an examination shall be made to ascertain whether the rules relating to
cumulation of origin do not provide a solution to the problem.

In addition when a request for derogation concerns a least-developed country or
territory, its examination shall be carried out with a favourable bias having particular
regard to:

(a)

(b)

the economic and social impact of the decision to be taken especially in respect
of employment;

the need to apply the derogation for a period taking into account the particular
situation of the OCT concerned and its difficulties.

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 neighbouring developing countries or least-
developed countries, provided that satisfactory administrative cooperation can be
established.

Without prejudice to paragraphs 1 to 6, the derogation shall be granted where the
value added to the non-originating products used in the OCT concerned is at least
45% of the value of the finished product, provided that the derogation is not such as
to cause serious injury to an economic sector of the Community or of one or more
Member States.

109

4.

5.

6.

7.

8.

(a) The Council and the Commission shall take steps necessary to ensure that a
decision is reached as quickly as possible and in any case not later than 75 working
days after the request is received by the Chairman of the Customs Code Committee –
In this context, Decision 2000/399/EC30 shall apply mutatis
Origin Section.
mutandis.

(b) If a decision is not taken within the time limit referred to in subparagraph (a), the
request shall be deemed to have been accepted...

9.

(a) The derogation shall be valid for a period, generally of five years

(b) The derogation decision may provide for renewals without a new decision of the
Commission being necessary, provided that the Member State or OCT concerned
submits, three months before the end of each period, proof that they are still unable
to meet the conditions of this Annex which have been derogated from.

If any objection is made to the extension, the Commission shall examine it as soon as
possible and decide whether to prolong the derogation. The Commission shall
proceed as provided for in paragraph8. All necessary measures shall be taken to
avoid interruptions in the application of the derogation.

(c) In the periods referred to in subparagraphs (a) and (b), the Community may
review the terms for implementing the derogation should a significant change be
found to have taken place in the substantive factors governing the decision to grant
the derogation. On conclusion of its review the Community may decide to amend the
terms of its decision as regards the scope of derogation or any other condition
previously laid down.

TITLE VI

CEUTA AND MELILLA

Article 38

Special conditions

1.

2.

3.

The term "Community" used in this Annexe shall not cover Ceuta and Melilla. The
term "products originating in the Community" shall not cover products originating in
Ceuta and Melilla.

The provisions of this Annexe shall apply mutatis mutandis in determining whether
products may be deemed as originating in the OCT when imported into Ceuta and
Melilla.

Where products wholly obtained in Ceuta, Melilla, the ACP States or the Community
undergo working and processing in the OCT, they shall be considered as having been
wholly obtained in the OCT.

30

OJ L 151, 24.6.2000, p.16.

110

4.

5.

6.

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

in Ceuta Melilla,

the ACP States or the
in the OCT, when

For the purpose of implementing paragraphs 3 and 4, the insufficient operations
listed in Article 5 shall not be considered as working or processing.

Ceuta and Melilla shall be considered as a single territory.

TITLE VII

FINAL PROVISIONS

Article 39

Revision of rules of origin

1.The Council shall examine whenever the relevant authorities of a country or
territory or of the Community so request, the application of the provisions of this
Annex and their economic effects with a view to making any necessary amendments
or adaptations.

The Council shall take into account among other elements the effects on the rules of
origin of technological developments.

The decisions taken shall be implemented as soon as possible.

2.Any technical amendments to this Annex shall be adopted by the procedure laid
down in Article 249(2) and (3) of Regulation No 2913/92 of 12 October 1992
establishing the Community Customs Code.31

Article 40

Annexes

The Annexes to this Annex shall form an integral part thereof.

Article 41

Implementation of the Annex

The Community and the OCT shall each take the steps necessary to implement this Annex .

31

OJ L 302, 10.10.1992, p.1.

111

Annex 1 to ANNEX III

Introductory notes to the list in Annex 2 to Annex III

Note 1:

The list sets out the conditions required for all products to be considered as sufficiently
worked or processed within the meaning of Article 4 of Annexe II.

Note 2:

2.1.

2.2.

2.3.

2.4.

Note 3:

3.1.

The first two columns in the list describe the product obtained. The first column
gives the heading number or chapter number used in the Harmonised System and the
second column gives the description of goods used in that system for that heading or
chapter. For each entry in the first two columns a rule is specified in columns 3 or 4.
Where, in some cases, the entry in the first column is preceded by an "ex", this
signifies that the rules in columns 3 or 4 apply only to the part of that heading as
described in column 2.

Where several heading numbers are grouped together in column 1 or a chapter
number is given and the description of products in column 2 is therefore given in
general terms, the adjacent rules in columns 3 or 4 apply to all products which, under
the Harmonised System, are classified in headings of the chapter or in any of the
headings grouped together in column 1.

Where there are different rules in the list applying to different products within a
heading, each indent contains the description of that part of the heading covered by
the adjacent rules in columns 3 or 4.

Where, for an entry in the first two columns, a rule is specified in both columns 3 and
4, the exporter may opt, as an alternative, to apply either the rule set out in column 3
or that set out in column 4. If no origin rule is given in column 4, the rule set out in
column 3 has to be applied.

The provisions of Article 4 of Annexe VII concerning products having acquired
originating status which are used in the manufacture of other products apply
regardless of whether this status has been acquired inside the factory where these
products are used or in another factory in the Community or in the OCT.

Example:

An engine of heading No 8407, for which the rule states that the value of the
non-originating materials which may be incorporated may not exceed 40 per cent of
the ex-works price, is made from "other alloy steel roughly shaped by forging" of
heading No ex 7224.

If this forging has been forged in the country concerned from a non-originating ingot,
it has already acquired originating status by virtue of the rule for heading No ex 7224
in the list. The forging can then count as originating in the value calculation for the

112

3.2.

3.3.

engine regardless of whether it was produced in the same factory or in another
factory in the Community. The value of the non-originating ingot is thus not taken
into account when adding up the value of the non-originating materials used.

The rule in the list represents the minimum amount of working or processing
required and the carrying out of more working or processing also confers originating
status; conversely, the carrying out of less working or processing cannot confer
originating status. Thus if a rule provides that non-originating material at a certain
level of manufacture may be used, the use of such material at an earlier stage of
manufacture is allowed and the use of such material at a later stage is not.

Without prejudice to Note 3.2 where a rule states that "materials of any heading"
may be used, materials of the same heading as the product may also be used, subject,
however, to any specific limitations which may also be contained in the rule.
However, the expression "manufacture from materials of any heading, including
other materials of heading No ..." means that only materials classified in the same
heading as the product of a different description than that of the product as given in
column 2 of the list may be used.

3.4.

When a rule in the list specifies that a product may be manufactured from more than
one material, this means that any one or more materials may be used. It does not
require that all be used.

Example:

The rule for fabrics of heading Nos 5208 to 5212 provides that natural fibres may be
used and that chemical materials, among other materials, may also be used. This does
not mean that both have to be used; it is possible to use one or the other or both.

3.5.

Where a rule in the list specifies that a product must be manufactured from a
particular material,
the use of other
the condition obviously does not prevent
materials which, because of their inherent nature, cannot satisfy the rule. (See also
Note 6.2 below in relation to textiles).

Example:

The rule for prepared foods of heading No 1904 which specifically excludes the use
of cereals and their derivatives does not prevent the use of mineral salts, chemicals
and other additives which are not products from cereals.

However,
this does not apply to products which, although they cannot be
manufactured from the particular materials specified in the list, can be produced from
a material of the same nature at an earlier stage of manufacture.

Example:

In the case of an article of apparel of ex Chapter 62 made from non-woven materials,
if the use of only non-originating yarn is allowed for this class of article, it is not
possible to start from non-woven cloth – even if non-woven cloths cannot normally
be made from yarn. In such cases, the starting material would normally be at the
stage before yarn – that is the fibre stage.

113

3.6.

Where, in a rule in the list, two percentages are given for the maximum value of
non-originating materials that can be used, then these percentages may not be added
together. In other words, the maximum value of all the non-originating materials
used may never exceed the highest of the percentages given. Furthermore, the
individual percentages must not be exceeded in relation to the particular materials
they apply to.

Note 4:

4.1.

4.2.

4.3.

4.4.

Note 5:

5.1.

The term "natural fibres" is used in the list to refer to fibres other than artificial or
synthetic fibres. It is restricted to the stages before spinning takes place, including
waste, and, unless otherwise specified, includes fibres that have been carded, combed
or otherwise processed but not spun.

The term "natural fibres" includes horsehair of heading No 0503, silk of heading
Nos 5002 and 5003 as well as the wool fibres, fine or coarse animal hair of heading
Nos 5101 to 5105, the cotton fibres of heading Nos 5201 to 5203 and the other
vegetable fibres of heading Nos 5301 to 5305.

The terms "textile pulp", "chemical materials" and "paper-making materials" are used
in the list to describe the materials not classified in Chapters 50 to 63, which can be
used to manufacture artificial, synthetic or paper fibres or yarns.

The term "man-made staple fibres" is used in the list to refer to synthetic or artificial
filament tow, staple fibres or waste, of heading Nos 5501 to 5507.

Where for a given product in the list a reference is made to this note, the conditions
set out in column 3 shall not be applied to any basic textile materials, used in the
manufacture of this product, which, taken together, represent 10 per cent or less of
the total weight of all the basic textile materials used. (See also Notes 5.3 and 5.4
below).

5.2.

However, the tolerance mentioned in Note 5.1 may only be applied to mixed
products which have been made from two or more basic textile materials.

The following are the basic textile materials:

–

–

–

–

–

–

–

silk,

wool,

coarse animal hair,

fine animal hair,

horsehair,

cotton,

paper-making materials and paper,

114

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

flax,

true hemp,

jute and other textile bast fibres,

sisal and other textile fibres of the genus Agave,

coconut, abaca, ramie and other vegetable textile fibres,

synthetic man-made filaments,

artificial man-made filaments,

current conducting filaments

synthetic man-made staple fibres of polypropylene,

synthetic man-made staple fibres of polyester,

synthetic man-made staple fibres of polyamide,

synthetic man-made staple fibres of polyacrylonitrile,

synthetic man-made staple fibres of polyimide,

synthetic man-made staple fibres of polytetrafluoroethylene,

synthetic man-made staple fibres of polyphenylene sulphide,

synthetic man-made staple fibres of polyvinyl chloride,

other synthetic man-made staple fibres,

artificial man-made staple fibres of viscose,

other artificial man-made staple fibres,

yarn made of polyurethane segmented with flexible segments of polyether
whether or not gimped,

yarn made of polyurethane segmented with flexible segments of polyester
whether or not gimped,

products of heading No 5605 (metallised yarn) incorporating strip consisting of
a core of aluminium foil or of a core of plastic film whether or not coated with
aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a
transparent or coloured adhesive between two layers of plastic film,

–

other products of heading No 5605.

115

Example:

A yarn of heading No 5205 made from cotton fibres of heading No 5203 and
synthetic staple fibres of heading No 5506 is a mixed yarn. Therefore,
non-originating synthetic staple fibres that do not satisfy the origin rules (which
require manufacture from chemical materials or textile pulp) may be used up to a
weight of 10 per cent of the yarn.

Example:

A woollen fabric of heading No 5112 made from woollen yarn of heading No 5107
and synthetic yarn of staple fibres of heading No 5509 is a mixed fabric. Therefore
synthetic yarn which does not satisfy the origin rules (which require manufacture
from chemical materials or textile pulp) or woollen yarn that does not satisfy the
origin rules (which require manufacture from natural fibres, not carded or combed or
otherwise prepared for spinning) or a combination of the two may be used provided
their total weight does not exceed 10 per cent of the weight of the fabric.

Example:

Tufted textile fabric of heading No 5802 made from cotton yarn of heading No 5205
and cotton fabric of heading No 5210 is only a mixed product if the cotton fabric is
itself a mixed fabric being made from yarns classified in two separate headings or if
the cotton yarns used are themselves mixtures.

Example:

If the tufted textile fabric concerned had been made from cotton yarn of heading
No 5205 and synthetic fabric of heading No 5407, then, obviously, the yarns used are
two separate basic textile materials and the tufted textile fabric is accordingly a
mixed product.

In the case of products incorporating "yarn made of polyurethane segmented with
flexible segments of polyether whether or not gimped" this tolerance is 20 per cent in
respect of this yarn.

In the case of products incorporating "strip consisting of a core of aluminium foil or
of a core of plastic film whether or not coated with aluminium powder, of a width not
exceeding 5 mm, sandwiched by means of an adhesive between two layers of plastic
film", this tolerance is 30 per cent in respect of this strip.

In the case of those textile products, which are marked in the list by a footnote
referring to this Introductory Note, textile trimmings and accessories which do not
satisfy the rule set out in the list in column 3 for the made up products concerned
may be used provided that their weight does not exceed 10% of the total weight of all
the textile materials incorporated.

Textile trimmings and accessories are those classified in Chapters 50 to 63. Linings
and interlinings are not be regarded as trimmings or accessories.

5.3.

5.4.

Note 6:

6.1.

116

6.2

6.3

6.4

Note 7:

7.1.

Any non-textile trimmings and accessories or other materials used which contain
textiles do not have to satisfy the conditions set out in column 3 even though they fall
outside the scope of Note 3.5.

In accordance with Note 3.5, any non-originating non-textile trimmings and
accessories or other product, which do not contain any textiles, may, anyway, be
used freely where they cannot be made from the materials listed in column 3.

–

For example1 if a rule in the list says that for a particular textile item, such as a
blouse, yarn must be used, this does not prevent the use of metal items, such as
buttons, because they cannot be made from textile materials.

Where a percentage rule applies, the value of trimmings and accessories must be
taken into account when calculating the value of the non-originating materials
incorporated.

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)

redistillation by a very thorough fractionation process1;

(c)

cracking;

(d)

reforming;

(e)

extraction by means of selective solvents;

(f)

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

(g)

polymerisation;

(h)

alkylation;

(i)

isomerisation.

7.2.

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

(a)

vacuum distillation;

(b)

redistillation by a very thorough fractionation process

1

1

idem

See Additional Explanatory Note 4(b) to Chapter 27 of the Combined Nomenclature.

117

(c)

cracking;

(d)

reforming;

(e)

extraction by means of selective solvents;

(f)

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

(g)

polymerisation;

(h)

alkylation;

(ij)

isomerisation;

(k)

in respect of heavy oils
falling within heading No ex 2710 only,
desulphurisation 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);

(l)

(m)

(n)

(o)

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

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
25O°C with the use of a catalyst, other than to effect desulphurisation, when
the hydrogen constitutes an active element in a chemical reaction. The further
treatment with hydrogen of
lubricating oils of heading No ex 2710
(e.g. hydrofinishing or decolorisation) in order, more especially, to improve
colour or stability shall not, however, be deemed to be a specific process;

in respect of fuel oils falling within heading 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;

in respect of heavy oils other than gas oils and fuel oils falling within heading
treatment by means of a high-frequency electrical
No ex 2710 only,
brush-discharge.

7.3.

For the purposes 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.

118

Declaration

Transitional period concerning the issuing or making out of

documents relating to the proof of origin

1.

2.

Until 31 December 2001, the customs authorities of the Community shall accept as
valid proof of origin within the meaning of Annexe (…)EUR 2 forms issued within
the context of Decision 91/48/EEC of 25 July 1991.

Requests for subsequent verification of EUR 2 forms shall be accepted by the
competent customs authorities of the OCT for a period of two years after the issuing
and making out of the proof of origin concerned. These verifications shall be carried
out in accordance with the Title V of Annexe (…).

119

Annex 2 to ANNEX III

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

120

Chapter 01

Live animals

Chapter 02

and edible meat

Meat
offal

Chapter 03

and

Fish
molluscs
aquatic invertebrates

crustaceans,
other
and

ex Chapter 04 Dairy
produce;
birds'
honey;
natural
eggs;
edible products of animal
elsewhere
origin,
specified
included;
except for:

not
or

0403

cream,

Buttermilk, curdled milk
yoghurt,
and
other
and
kephir
fermented
acidified
or
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
be wholly
used must
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

121

ex 0502

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

Cleaning,
disinfecting,
sorting and straightening of
bristles and hair

122

Chapter 06

trees

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

Chapter 07

Edible
certain roots and tubers

vegetables

and

Manufacture in which:

all

-
the materials of
Chapter 6 used must be
wholly obtained;

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

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

Chapter 08

Edible fruit and nuts; peel
of citrus fruits or melons

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

ex Chapter 09

Coffee,
spices; except for:

tea, maté

and

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

0901

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

Manufacture from materials
of any heading

0902

Tea, whether
flavoured

or

not

Manufacture from materials
of any heading

ex 0910

Mixtures of spices

Manufacture from materials
of any heading

123

Chapter 10

Cereals

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

ex Chapter 11

Products of
the milling
industry; malt; starches;
inulin; wheat
gluten;
except for:

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

ex 1106

the

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

and milling

Drying
of
leguminous vegetables of
heading No 0708

Chapter 12

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

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

1301

1302

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

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

saps

and
Vegetable
extracts;
pectic
substances, pectinates and
and
pectates;
and
other mucilages
thickeners, whether or not
modified, derived from
vegetable products:

agar-agar

Mucilages

and
-
thickeners,
modified,
derived from vegetable
products

Manufacture
modified mucilages
thickeners

from non-
and

124

- Other

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

Chapter 14

Vegetable
materials;
products not
specified or included

plaiting
vegetable
elsewhere

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

oils

ex Chapter 15 Animal or vegetable fats
their
products;
fats;
vegetable

and
cleavage
prepared
animals
waxes; except for:

edible
or

and

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

1501

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

Fats from bones or

-
waste

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

- Other

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

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

125

Fats from bones or

-
waste

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

- Other

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

1504

fish

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

- Solid fractions

- Other

ex 1505

Refined lanolin

1506

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

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

from crude
Manufacture
wool grease of heading No
1505

- Solid fractions

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

126

- Other

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

1507 to 1515

Vegetable oils and their
fractions:

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

- Soya, ground nut, palm,
copra,
kernel,
palm
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
human
consumption

for

- Solid fractions, except
for that of jojoba oil

from other
Manufacture
materials of heading Nos.
1507 to 1515

- Other

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

1516

and

oils

Animal or vegetable fats
their
and
fractions, partly or wholly
hydrogenated,
inter-
esterified, re-esterified or
or
elaidinised, whether
not
not
refined,
further prepared

but

Manufacture in which:

- all the materials of Chapter
2 used must be wholly
obtained;

- all the vegetable materials
be wholly
used must
obtained.
However,
materials of headings 1507,
1508, 1511 and 1513 may be
used

127

1517

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 materials

-
of
Chapters 2 and 4 used must
be wholly obtained;

- all the vegetable materials
be wholly
used must
obtained.
However,
materials of headings 1507,
1508, 1511 and 1513 may be
used

Chapter 16

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

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

1. All

ex Chapter 17

Sugars
sugar
and
confectionery; except for:

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

ex 1701

1702

Cane or beet sugar and
chemically pure sucrose,
in solid form, flavoured or
coloured

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

sugars,

glucose

including
Other
chemically pure lactose,
maltose,
and
in solid form;
fructose,
not
syrups
sugar
added
containing
flavouring or
colouring
matter; artificial honey,
whether or not mixed
honey;
natural
with
caramel:

128

Chemically

-
maltose and fructose

pure

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

- Other sugars in solid
form,
or
coloured

flavoured

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

- Other

Manufacture in which all the
materials used must already
be originating

Molasses resulting from
the extraction or refining
of
flavoured or
coloured

sugar,

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

confectionery
Sugar
(including
white
chocolate), not containing
cocoa

Manufacture in which:

- all the materials used are
classified within a heading
the
other
product;

than

that

of

ex 1703

1704

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

Chapter 18

Cocoa
preparations

and

cocoa

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

129

1901

specified

starch
not

extract;
of

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

specified

not

- Malt extract

Manufacture from cereals of
Chapter 10

- Other

Manufacture in which:

- all the materials used are
classified within a heading
the
other
product;

than

that

of

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

1902

otherwise
as

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

130

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

and

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

1903

1904

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

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

grains,
in
or

swelling

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

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

Manufacture:

from materials

-
classified within
No 1806;

not
heading

- in which all the cereals and
flour (except durum wheat
and its derivatives and Zea
indurata maize) used must
be wholly obtained1;

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

of

1

The exception concerning the Zea indurata maize is applicable until 31.12.2002.

131

Manufacture from materials
of any heading except those
of Chapter 11

1905

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

ex Chapter 20

ex 2001

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

parts

of

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

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
flakes,
flour, meal or
prepared
preserved
or
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

2006

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

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

132

2007

Jams,
jellies,
fruit
marmalades, fruit or nut
purée and fruit or nut
pastes,
cooked
being
preparations, whether or
added
not
sugar or other sweetening
matter

containing

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

133

ex 2008

- Nuts, not containing
added sugar or spirit

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

- 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

nuts

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

than

2009

juices

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

ex Chapter 21 Miscellaneous

edible

preparations; except for:

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

- 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
the
product;

than

that

of

- 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

134

2101

2103

or

maté

essences

Extracts,
and
concentrates, of coffee,
tea
and
preparations with a basis
of these products or with
a basis of coffee, tea or
maté; roasted chicory and
coffee
roasted
other
substitutes, and extracts,
essences and concentrates
thereof

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

- all the chicory used must
be wholly obtained

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

- Sauces and preparations
mixed
therefor;
condiments
and mixed
seasonings

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

of

- Mustard flour and meal
and prepared mustard

Manufacture from materials
of any heading

ex 2104

Soups
and broths
preparations therefor

and

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

135

2106

preparations
specified

Food
elsewhere
included

not
or

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

ex Chapter 22

Beverages,
spirits
vinegar; except for:

and

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

2202

Waters, including mineral
waters and aerated waters,
containing added sugar or
other sweetening matter
or
flavoured, and other
non-alcoholic beverages,
or
not
including fruit
vegetable
of
heading No 2009

juices

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
the
product;

than

that

of

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

any fruit

-
(except for pineapple,
and grapefruit
already be originating

juice used
lime
juices) must

136

2207

2208

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

of

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

Manufacture:
not
using materials
-
classified in headings 2207
or 2208,

- in which all the grapes or
any materials 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

Manufacture:

from materials

-
classified within
Nos 2207 or 2208,

not
heading

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

ex Chapter 23

Residues and waste from
industries;
the
food
fodder;
prepared animal
except for:

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

ex 2301

ex 2303

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

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

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

a

137

ex 2306

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

Manufacture in which all the
olives used must be wholly
obtained

138

2309

Preparations of a kind
used in animal feeding

Manufacture 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

ex Chapter 24

Tobacco
manufactured
substitutes; except for:

and
tobacco

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

2402

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

ex 2403

Smoking tobacco

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

ex Chapter 25

Salt; sulphur; earths and
plastering
stone;
materials,
and
lime
cement; except for:

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

ex 2504

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

the

of
purifying

carbon
Enriching
content,
and
grinding of crude crystalline
graphite

139

by

sawing

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

by

sawing

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

ex 2515

ex 2516

slabs of

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

and

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

slabs of

ex 2518

Calcined dolomite

Calcination of dolomite not
calcined

ex 2519

natural
carbonate
in

Crushed
magnesium
(magnesite),
hermetically-sealed
and
containers,
magnesium
oxide,
whether or not pure, other
than fused magnesia or
dead-burned
(sintered)
magnesia

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

ex 2520

Plasters
prepared for dentistry

specially

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

ex 2524

Natural asbestos fibres

Manufacture from asbestos
concentrate

ex 2525

Mica powder

Grinding of mica or mica
waste

140

ex 2530

Earth colours, calcined or
powdered

Calcination or grinding of
earth colours

Chapter 26

Ores, slag and ash

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

141

ex Chapter 27 Mineral

fuels, mineral
oils and products of their
bituminous
distillation;
mineral
substances;
waxes; except for:

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

ex 2707

the

the

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

of

of

of

refining
Operations
and/or one or more specific
process(es)1

or

of

that

than

used

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

be

ex 2709

Crude oils obtained from
bituminous minerals

Destructive distillation
bituminous materials

of

2710

other

specified

Petroleum oils and oils
obtained from bituminous
than
materials,
crude; preparations not
elsewhere
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

of

Operations
refining
and/or one or more specific
process(es)1

or

of

that

than

used

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

be

1

For the special conditions relating to "specific processes" see Introductory Notes 7.1 and 7.3

142

2711

Petroleum gases and other
gaseous hydrocarbons

of

Operations
refining
and/or one or more specific
process(es)1

or

of

that

than

used

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

be

2712

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

of

Operations
refining
and/or one or more specific
process(es)1

or

of

that

than

used

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

be

1

1

For the special conditions relating to "specific processes" see Introductory Note 7.2
For the special conditions relating to "specific processes" see Introductory Note 7.2

143

2713

2714

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

residues

of

Operations
refining
and/or one or more specific
process(es)1

or

of

that

than

used

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

be

Bitumen
asphalt,
and
natural; bituminous or oil
shale
sands;
asphaltites and asphaltic
rocks

and

tar

of

Operations
refining
and/or one or more specific
process(es)1

or

of

that

than

used

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

be

1

For the special conditions relating to "specific processes" see Introductory Notes 7.1 and 7.3

144

2715

Bituminous
mixtures
based on natural asphalt,
on natural bitumen, on
on
petroleum bitumen,
mineral tar or on mineral
tar pitch (for example,
bituminous mastics, cut-
backs)

of

Operations
refining
and/or one or more specific
process(es)1

or

of

that

than

used

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

be

ex Chapter 28

Inorganic
chemicals;
inorganic
or
organic
compounds of precious
rare-earth
metals,
metals,
radioactive
elements or of isotopes;
except for:

of
of

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

be

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

ex 2805

"Mischmetall"

thermal

Manufacture by electrolytic
in
treatment
or
the
which the value of all
materials
not
used
exceed 50% of the ex-works
price of the product

does

ex 2811

Sulphur trioxide

Manufacture from sulphur
dioxide

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

145

ex 2833

Aluminium sulphate

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

ex 2840

Sodium perborate

Manufacture from disodium
tetraborate pentahydrate

ex Chapter 29 Organic

chemicals;

except for:

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

be

ex 2901

Acyclic hydrocarbons for
use as power or heating
fuels

of

refining
Operations
and/or one or more specific
process(es)1

or

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

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

of

that

than

used

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

be

1

For the special conditions relating to "specific processes" see Introductory Notes 7.1 and 7.3

146

ex 2902

and

than

Cyclanes
cyclenes
azulenes),
(other
benzene, toluene, xylenes,
for
or
use
heating fuels

as power

of

Operations
refining
and/or one or more specific
process(es)1

or

of

that

than

used

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

be

ex 2905

alcoholates

Metal
of
alcohols of this heading
and of ethanol

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

2915

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

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

1

For the special conditions relating to "specific processes" see Introductory Notes 7.1 and 7.3

147

ex 2932

- Internal ethers and their
halogenated, sulphonated,
nitrated
nitrosated
or
derivatives

Manufacture from materials
of any heading. However,
the value of all the materials
of heading No 2909 used
may not exceed 20% of the
ex-works
the
price
product

of

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

-
Cyclic acetals and
internal hemiacetals and
their
halogenated,
sulphonated, nitrated or
nitrosated derivatives

Heterocyclic compounds
with
hetero-
atom(s) only

nitrogen

Manufacture from materials
of any heading

Manufacture in which the
value of all
the materials
used does not exceed 40% 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 and
2933 used may not exceed
20% of the ex-works price
of the product

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

Nucleic acids and their
salts; other heterocyclic
compounds

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

2933

2934

ex Chapter 30

Pharmaceutical products;
except for:

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

be

148

3002

diagnostic

blood;
prepared

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

and

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

uses
products

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
the
price
product

of

- Other:

-- human blood

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
the
price
product

of

149

-- animal blood prepared
for
or
therapeutic
prophylactic uses

blood fractions other
antisera,
blood
serum

--
than
haemoglobin,
globulins
globulins

and

haemoglobin, blood
serum
and

--
globulins
globulins

-- other

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
the
price
ex-works
product

of

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
the
price
product

of

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
the
price
product

of

Manufacture from materials
including
of any heading,
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
the
price
product

of

150

3003 and 3004 Medicaments

(excluding
goods of heading No
3002, 3005 or 3006):

- Obtained from amikacin
of heading No 2941

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

Manufacture in which:

- Other

ex Chapter 31

Fertilisers; except for:

of

that

than

- all the materials used are
classified within a heading
other
the
product. However, materials
of heading No 3003 or 3004
may be used provided their
value,
taken together, does
not exceed 20% 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

the
the value of all
-
materials
not
does
used
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
product.
the
of
materials
However,
classified within the same
heading may
used
provided their value does not
exceed 20% of the ex-works
price of the product

be

151

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

ex 3105

Mineral
chemical
or
fertilisers containing two
or three of the fertilising
nitrogen,
elements
and
phosphorous
other
potassium;
fertilisers; goods of this
in
tablets or
Chapter,
in
forms
similar
or
gross
of
packages
weight not exceeding 10
kg, except for:

a

- sodium nitrate

- calcium cyanamide

- potassium sulphate

- magnesium potassium
sulphate

Manufacture in which:

of

that

than

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

be

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

ex Chapter 32

Tanning
dyeing
or
extracts; tannins and their
dyes,
derivatives;
pigments
other
colouring matter; paints
and varnishes; putty and
other
inks;
mastics;
except for:

and

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

be

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

ex 3201

Tannins and their salts,
ethers, esters and other
derivatives

Manufacture from tanning
extracts of vegetable origin

3205

Colour lakes; preparations
as specified in Note 3 to
this Chapter based on
colour lakes1

any

3205.

Manufacture from materials
of
except
heading,
headings Nos 3203, 3204
However,
and
materials from heading No
3205 may be used provided
their value does not exceed
20% 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

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

1

Note 3 to Chapter 32 says that these preparations are 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.

152

ex Chapter 33

3301

ex Chapter 34

oils

Essential
resinoids;
cosmetic
preparations; except for:

and
perfumery,
toilet

or

not),

Essential oils (terpeneless
including
or
concretes and absolutes;
resinoids;
extracted
oleoresins;
concentrates
of essential oils in fats, in
fixed oils, in waxes or the
like,
by
obtained
enfleurage or maceration;
terpenic by-products of
of
deterpenation
the
aqueous
oils;
essential
distillates
aqueous
and
solutions of essential oils

organic
surface-
Soap,
agents, washing
active
lubricating
preparations,
preparations,
artificial
waxes, prepared waxes,
scouring
or
polishing
preparations, candles and
similar articles, modelling
pastes,
"dental waxes"
and dental preparations
with a basis of plaster;
except for:

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

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

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

be

Manufacture from materials
including
of any heading,
of
materials
different
a
"group"1
in this heading.
However, materials of
the
same group may be used,
provided their value does not
exceed 20% of the ex-works
price of the product

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

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

be

1

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

153

ex 3403

oils obtained

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

of

Operations
refining
and/or one or more specific
process(es)1

or

of

that

than

used

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

be

3404

Artificial
prepared waxes:

waxes

and

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

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

be

- Other

Manufacture from materials
of any heading, except:

- hydrogenated oils having
the character of waxes of
heading No 1516;

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

fatty acids not chemically
fatty
the
of

-
defined or
alcohols
character
heading No 3823;

industrial
having
of waxes

1

For the special conditions relating to "specific processes" see Introductory Notes 7.1 and 7.3

154

- 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

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

be

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

ex Chapter 35 Albuminoidal substances;
modified starches; glues;
enzymes; except for:

3505

and
starches

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

- Starch ethers and esters Manufacture from materials
including
of any heading,
other materials of heading
No 3505

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

- Other

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

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

ex 3507

Prepared
elsewhere
included

enzymes
specified

not
or

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

155

Chapter 36

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

ex Chapter 37

Photographic
cinematographic
except for:

or
goods;

Manufacture in which the
the materials
value of all
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
the ex-works price of
product

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

be

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

be

3701

of

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

or

Instant print film for
in
photography,

-
colour
packs

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

Manufacture in which all the
materials used are classified
within a heading other than
heading Nos 3701 or 3702.
However, materials
from
heading No 3702 may be
used provided their value
does not exceed 30% of the
the
price
ex-works
product

of

156

- Other

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

Manufacture in which all the
materials used are classified
within a heading other than
heading No 3701 or 3702.
However, materials
from
heading Nos 3701 and 3702
may be used provided their
value taken together, does
not exceed 20% of the ex-
works price of the product

3702

3704

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

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

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

Photographic plates, film
paper,
and
textiles, exposed but not
developed

paperboard

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

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

ex Chapter 38 Miscellaneous

chemical

products; except for:

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

be

ex 3801

- Colloidal graphite in
and
suspension in oil
graphite;
semi-colloidal
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

157

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

Manufacture in which the
value of all the materials of
heading No 3403 used does
not exceed 20% of the ex-
works price of the product

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

ex 3803

Refined tall oil

Refining of crude tall oil

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

ex 3805

Spirits
turpentine, purified

of

sulphate

Purification by distillation or
refining of
raw spirits of
sulphate turpentine

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

ex 3806

Ester gums

Manufacture
acids

from resin

ex 3807

Wood pitch (wood tar
pitch)

Distillation of wood tar

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

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

3808

Insecticides, rodenticides,
herbicides,
fungicides,
anti-sprouting
products
plant-growth
and
regulators,
disinfectants
and similar products, put
up in forms or packings
or
for
as
sale
retail
articles
preparations or
(for
sulphur-
treated bands, wicks and
candles, and fly-papers)

example,

158

3809

3810

3811

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

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

or

and

fixing

agents,

Finishing
dye
carriers to accelerate the
of
dyeing
dyestuffs
other
products and preparations
example, dressings
(for
and mordants), of a kind
used in the textile, paper,
leather or like industries,
not elsewhere specified or
included

brazing

Pickling preparations for
metal surfaces; fluxes and
other
auxiliary
preparations for soldering,
welding;
or
brazing
or
soldering,
welding
and
pastes consisting of metal
materials;
and
preparations of a kind
used as cores or coatings
for welding electrodes or
rods

powders

other

Anti-knock preparations,
oxidation inhibitors, gum
inhibitors,
viscosity
improvers, anti-corrosive
and
other
preparations
additives,
for
prepared
(including
mineral
oils
gasoline) or
other
for
liquids used for the same
purposes as mineral oils:

- Prepared additives for
lubricating oil, containing
petroleum oils or oils
obtained from bituminous
minerals

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

159

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

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

- Other

rubber
Prepared
accelerators;
compound
plasticisers for rubber or
elsewhere
not
plastics,
specified
included;
or
anti-oxidising
preparations
other
compound stabilisers for
rubber or plastics

and

Preparations and charges
for
fire-extinguishers;
charged fire-extinguishing
grenades

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

Organic
composite
solvents and thinners, not
elsewhere
or
included; prepared paint
or vanish removers

specified

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

Chemical elements doped
for use in electronics, in
the form of discs, wafers
or similar forms; chemical
compounds doped for use
in electronics

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

3812

3813

3814

3818

160

3819

3820

3822

3823

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

brake

Hydraulic
fluids
and other prepared liquids
for
hydraulic
not
transmission,
containing or containing
less than 70% by weight
of petroleum oils or oils
obtained from bituminous
minerals

Anti-freezing preparations
and
de-icing
fluids

prepared

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

diagnostic

laboratory
Diagnostic or
reagents on a backing and
or
prepared
laboratory
reagents,
whether or not on a
backing, other than those
of heading No. 3002 or
3006

Industrial monocarboxylic
fatty acids; acid oils from
fatty
refining;
alcohols.

industrial

-
monocarboxylic
acids,
refining

acid

Industrial
fatty
from

oils

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

- Industrial fatty alcohols Manufacture from materials
of any heading including
other materials of heading
No. 3823

161

3824

or

of

binders

products

Prepared
for
foundry moulds or cores;
and
chemical
the
preparations
allied
chemical
(including
industries
of
consisting
those
mixtures
natural
of
products), not elsewhere
included;
or
specified
residual products of the
chemical
allied
industries, not elsewhere
specified or included:

or

- The following of this
heading:

binders

for
Prepared
foundry moulds or cores
based on natural resinous
products

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

be

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

acids,

Naphthenic
their
water insoluble salts and
their esters

Sorbitol other than that of
heading No 2905

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

Ion exchangers

Getters for vacuum tubes

162

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 esters

Fusel oil and Dippel's 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 to 3915

plastic;

Plastics in primary forms,
waste, parings and scrap,
for
of
heading Nos ex 3907 and
3912 for which the rules
are set out below:

except

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

163

Addition

-
homopolymerisation
products in which a single
monomer
contributes
more than 99% by weight
polymer
total
the
to
content

Manufacture in which:

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

- the value of any materials
of Chapter 39 used does not
exceed 20% of the ex-works
price of the product1

Manufacture in which the
the materials
value of all
used does not exceed 25% 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 which predominates by weight in the product.

164

- Other

Manufacture in which the
value of
the materials of
Chapter 39 used does not
exceed 20% of the ex-works
price of the product1

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the
the ex-works price of
product

Manufacture in which all the
materials used are classified
within a heading other than
product.
the
of
that
However,
materials
classified within the same
heading may
used
provided their value does not
exceed 50% of the ex-works
price of the product1

be

Manufacture in which the
value of any materials of
Chapter 39 used does not
exceed 20% of the ex-works
price of the product and/or
from
manufacture
polycarbonate
of
tetrabromo-(bisphenol A)

Manufacture in which the
any materials
value
of
classified
same
in
heading as the product does
not exceed 20% of the ex-
works price of the product

the

ex 3907

- Copolymer, made from
polycarbonate
and
acrylonitrile-butadiene-
styrene copolymer (ABS)

- Polyester

3912

Cellulose and its chemical
derivatives, not elsewhere
specified or included,
in
primary forms

3916 to 3921

Semi-manufactures
and
articles of plastics; except
for headings Nos ex 3916,
ex 3917, ex 3920 and ex
3921, for which the rules
are set out below:

165

-
Flat products, further
worked than only surface-
worked or cut into forms
rectangular
other
(including square); other
products, further worked
than only surface-worked

than

- Other:

Addition

--
homopolymerisation
products in which a single
monomer
contributes
more than 99% by weight
to
polymer
total
the
content

Manufacture in which the
value of any materials of
Chapter 39 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 25% of
the
the ex-works price of
product

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the ex-works price of
the
product

Manufacture in which:

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

- the value of any materials
of Chapter 39 used does not
exceed 20% of the ex-works
price of the product1

-- Other

Manufacture in which the
value of any materials of
Chapter 39 used does not
exceed 20% of the ex-works
price of the product1

Manufacture in which the
the materials
value of all
used does not exceed 25% of
the ex-works price of
the
product

ex 3916 and
ex 3917

Profile shapes and tubes

Manufacture in which:

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

- the value of any materials
classified within the same
heading as the product does
not exceed 20% of the ex-
works price of the product

Manufacture in which the
the materials
value of all
used does not exceed 25% 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 which predominates by weight in the product.

166

ex 3920

- Ionomer sheet or film

from
partial

a
Manufacture
thermoplastic
salt
which is a copolymer of
ethylene and metacrylic acid
partly neutralised with metal
ions, mainly
and
sodium

zinc

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the
the ex-works price of
product

- Sheets of regenerated
cellulose, polyamides or
polyethylene

Manufacture in which the
any materials
of
value
classified
same
in
heading as the product does
not exceed 20% of the ex-
works price of the product

the

ex 3921

Foils of plastic, metallised Manufacture

from highly
foils
transparent polyester
with a thickness of less than
23 micron1

Manufacture in which the
the materials
value of all
used does not exceed 25% of
the ex-works price of
the
product

3922 to 3926

Articles of plastics

ex Chapter 40

Rubber
thereof; except for:

and

articles

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

ex 4001

Laminated slabs of crepe
rubber for shoes

Lamination
natural rubber

of

sheets of

1

The following foils shall be considered as highly transparent: foils, the optical dimming of which -
measured according to ASTM-D 1003-16 by Gardner Hazemeter (i.e. Hazefactor) - is less than 2
percent.

167

4005

4012

rubber,
Compounded
unvulcanised,
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
the
price
product

of

or

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

- Retreaded pneumatic,
solid or cushion tyres, of
rubber

Retreading of used tyres

- Other

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

ex 4017

Articles of hard rubber

Manufacture
rubber

from hard

ex Chapter 41

and

Raw hides
skins
(other than furskins) and
leather; except for:

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

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 or
4109

Retanning
leather

or

of

pre-tanned

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

168

4109

Patent leather and patent
laminated
leather;
metallised leather

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

Chapter 42

ex Chapter 43

leather;
of
Articles
saddlery
harness;
and
travel goods, handbags
containers;
and
articles of
animal gut
(other than silk worm gut)

similar

Furskins and artificial fur;
thereof;
manufactures
except for:

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

ex 4302

Tanned
furskins, assembled:

or

dressed

Plates, crosses and

-
similar forms

or

dyeing,

in
Bleaching
and
addition
assembly of non-assembled
tanned or dressed furskins

cutting

to

- Other

Manufacture
from non-
assembled, tanned or dressed
furskins

4303

Articles
apparel,
of
clothing accessories and
other articles of furskin

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

ex Chapter 44 Wood

and

wood; wood
except for:

articles

of
charcoal;

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

169

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

Planing, sanding or finger-
jointing

Splicing, planing, sanding or
finger-jointing

ex 4403

Wood roughly squared

ex 4407

ex 4408

sliced

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

of

plywood,

Veneer sheets and sheets
a
for
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

ex 4409

Wood
continuously
shaped along any of its
edges or faces, whether or
not planed,
sanded or
finger-jointed:

Sanded or

-
jointed

finger-

Sanding or finger-jointing

-
mouldings

Beadings

and

Beading or moulding

ex 4410 to

ex 4413

Beadings and mouldings,
moulded
including
other
and
skirting
moulded boards

Beading or moulding

170

ex 4415

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

Manufacture
not cut to size

from boards

171

ex 4416

other

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

Manufacture
staves, not
than
on
sawn
principal surfaces

from riven
further worked
two
the

ex 4418

- Builders'
carpentry of wood

joinery and

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

-
mouldings

Beadings

and

Beading or moulding

ex 4421

Match
pegs or pins for footwear

splints; wooden

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

ex Chapter 45

Cork and articles of cork;
except for:

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

4503

Articles of natural cork

Manufacture from cork of
heading No 4501

Chapter 46

or

Manufactures of straw, of
other
esparto
of
materials;
plaiting
basketware
and
wickerwork

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

Chapter 47

Pulp of wood or of other
fibrous
cellulosic
recovered
material;
(waste and scrap) paper or
paperboard

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

172

ex Chapter 48

and

Paper
paperboard;
articles of paper pulp, of
paper or of paperboard;
except for:

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

ex 4811

and
lined or

paperboard,
squared

Paper
ruled,
only

from paper-
Manufacture
making materials of Chapter
47

4816

4817

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

plates,

offset

or

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

of

ex 4818

Toilet paper

ex 4819

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

or webs

of

Manufacture
from paper-
making materials of Chapter
47

Manufacturing in which:

- all the materials used are
classified within a heading
the
other
product;

than

that

of

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

Manufacture
from paper-
making materials of Chapter
47

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

173

ex 4820

Letter pads

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

ex 4823

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

Manufacture
from paper-
making materials of Chapter
47

ex Chapter 49

Printed
books,
newspapers, pictures and
of
other
the
products
industry;
printing
manuscripts,
typescripts
and plans; except for:

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

4909

or

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

envelopes

4910

Calendars of any kind,
printed,
including
calendar blocks:

of

Calendars

the
-
"perpetual" type or with
replaceable
blocks
mounted on bases other
than paper or paperboard

Manufacture from materials
not classified within heading
Nos 4909 or 4911

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

174

- Other

Manufacture from materials
not classified in heading Nos
4909 or 4911

ex Chapter 50

Silk; except for:

ex 5003

unsuitable

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

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

Carding or combing of silk
waste

5004
5006

to

ex

Silk yarn and yarn spun
from silk waste

Manufacture from1 :

raw silk or silk waste
or
for

combed
prepared

or

-
carded
otherwise
spinning,

other natural fibres not
or
for

combed
prepared

or

-
carded
otherwise
spinning,

chemical materials or

-
textile pulp, or

- paper-making materials

5007

Woven fabrics of silk or
of silk waste:

Incorporating rubber

-
thread

Manufacture
yarn1

from single

- Other

Manufacture from1:

1

For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5

175

- coir yarn,

- natural fibres,

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

prepared

chemical materials or

-
textile pulp, or

- paper

or

heat

Printing accompanied by at
least
two preparatory or
finishing operations (such as
bleaching,
scouring,
mercerising,
setting,
raising, calendering, shrink
processing,
resistance
finishing,
permanent
decatising,
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

coarse
fine
ex Chapter 51 Wool,
animal
horsehair
hair;
yarn and woven fabric;
except for:

or

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

176

5106 to 5110

Yarn of wool, of fine or
coarse animal hair or of
horsehair

Manufacture from1 :

raw silk or silk waste
or
for

combed
prepared

or

-
carded
otherwise
spinning,

- natural fibres not carded or
combed
otherwise
or
prepared for spinning,

chemical materials or

-
textile pulp, or

- paper-making materials

1

For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5

177

5111 to 5113 Woven fabrics of wool, of
fine or coarse animal hair
or of horsehair:

Incorporating rubber

-
thread

Manufacture
yarn1

from single

- Other

Manufacture from1:

- coir yarn,

- natural fibres,

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

prepared

chemical materials or

-
textile pulp, or

- paper

or

heat

Printing accompanied by at
least
two preparatory or
finishing operations (such as
bleaching,
scouring,
mercerising,
setting,
raising, calendering, shrink
processing,
resistance
finishing,
permanent
decatising,
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

178

ex Chapter 52

Cotton; except for:

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

5204 to 5207

Yarn and thread of cotton Manufacture from1:

raw silk or silk waste
or
for

combed
prepared

or

-
carded
otherwise
spinning,

- natural fibres not carded or
combed
otherwise
or
prepared for spinning,

chemical materials or

-
textile pulp, or

- paper-making materials

5208 to 5212 Woven fabrics of cotton:

Incorporating rubber

-
thread

Manufacture
yarn1

from single

- Other

Manufacture from1:

- coir yarn,

- natural fibres,

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

prepared

chemical materials or

-
textile pulp, or

- paper

1

For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5

179

or

heat

Printing accompanied by at
two preparatory or
least
finishing operations (such as
bleaching,
scouring,
mercerising,
setting,
raising, calendering, shrink
processing,
resistance
finishing,
permanent
decatising,
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

180

ex Chapter 53 Other

textile
vegetable
fibres; paper yarn and
woven fabrics of paper
yarn; except for:

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

5306 to 5308

Yarn of other vegetable
textile fibres; paper yarn

Manufacture from1:

raw silk or silk waste
or
for

combed
prepared

or

-
carded
otherwise
spinning,

- natural fibres not carded or
combed
otherwise
or
prepared for spinning,

chemical materials or

-
textile pulp, or

- paper-making materials

5309 to 5311 Woven fabrics of other
vegetable textile fibres;
woven fabrics of paper
yarn:

Incorporating rubber

-
thread

Manufacture
yarn1

from single

- Other

Manufacture from1:

- coir yarn,

- natural fibres,

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

prepared

chemical materials or

-
textile pulp, or

- paper

1

For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5

181

or

heat

Printing accompanied by at
two preparatory or
least
finishing operations (such as
bleaching,
scouring,
mercerising,
setting,
raising, calendering, shrink
processing,
resistance
finishing,
permanent
decatising,
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 from1:

raw silk or silk waste
or
for

combed
prepared

or

-
carded
otherwise
spinning,

5401 to 5406

Yarn, monofilament and
of man-made
thread
filaments

- natural fibres not carded or
combed
otherwise
or
prepared for spinning,

chemical materials or

-
textile pulp, or

- paper-making materials

5407 and 5408 Woven fabrics of man-

made filament yarn:

Incorporating rubber

-
thread

Manufacture
yarn1

from single

- Other

Manufacture from1:

1

For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5

182

- coir yarn,

- natural fibres,

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

prepared

chemical materials or

-
textile pulp, or

- paper

or

heat

Printing accompanied by at
least
two preparatory or
finishing operations (such as
bleaching,
scouring,
mercerising,
setting,
raising, calendering, shrink
processing,
resistance
finishing,
permanent
decatising,
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

5501 to 5507 Man-made staple fibres

Manufacture from chemical
materials or textile pulp

183

5508 to 5511

Yarn and sewing thread
of man-made staple fibres

Manufacture from1:

raw silk or silk waste
or
for

combed
prepared

or

-
carded
otherwise
spinning,

- natural fibres not carded or
combed
otherwise
or
prepared for spinning,

chemical materials or

-
textile pulp, or

- paper-making materials

5512 to 5516 Woven fabrics of man-

made staple fibres:

Incorporating rubber

-
thread

Manufacture
yarn1

from single

1

For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5

184

- Other

Manufacture from1:

- coir yarn,

- natural fibres,

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

prepared

chemical materials or

-
textile pulp, or

- paper

or

heat

Printing accompanied by at
least
two preparatory or
finishing operations (such as
bleaching,
scouring,
mercerising,
setting,
raising, calendering, shrink
processing,
resistance
finishing,
permanent
decatising,
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

ex Chapter 56 Wadding,

felt and non-
wovens;
yarns;
special
twine, cordage, ropes and
cables
articles
and
thereof; except for:

Manufacture from1:

- coir yarn,

- natural fibres,

chemical materials or

-
textile pulp, or

- paper making materials

1

For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5.

185

5602

Felt, whether
impregnated,
covered or laminated:

or
not
coated,

186

- Needleloom felt

Manufacture from1:

- natural fibres,

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 decitex
may be used provided their
value does not exceed 40%
of the ex-works price of the
product

- Other

Manufacture from1:

- natural fibres,

- man-made staple fibres
made from casein, or

chemical materials or

-
textile pulp

5604

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

covered

5405,

1

For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5

187

- Rubber thread and cord,
textile covered

Manufacture
thread or cord, not
covered

from rubber
textile

188

- Other

Manufacture from1:

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

chemical materials or

-
textile pulp, or

- paper-making materials

Manufacture from1:

- natural fibres,

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

processed

chemical materials or

-
textile pulp, or

- paper-making materials

Manufacture from1:

- natural fibres,

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

processed

chemical materials or

-
textile pulp, or

- paper-making materials

5605

5606

not

Metallised yarn, whether
or
being
gimped,
textile yarn, or strip or the
like of heading No 5404
or 5405, combined with
metal
form of
thread, strip or powder or
covered with metal

in the

than

those

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

Chapter 57

Carpets and other textile
floor coverings:

1

For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5

189

- Of needleloom felt

Manufacture from1:

- 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 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 from1:

- natural fibres not carded or
otherwise
or
combed
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 5

190

- Other

Manufacture from1:

- coir or jute yarn,

synthetic or

-
filament yarn,

artificial

- natural fibres, or

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

processed

Jute fabric may be used as
backing

ex Chapter 58

Special woven
fabrics;
tufted textile fabrics; lace;
tapestries;
trimmings;
embroidery; except for:

- Combined with rubber
thread

Manufacture
yarn1

from single

- Other

Manufacture from1:

- natural fibres,

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

processed

chemical materials or

-
textile pulp,

1

For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5

191

or

heat

Printing accompanied by at
two preparatory or
least
finishing operations (such as
bleaching,
scouring,
mercerising,
setting,
raising, calendering, shrink
processing,
resistance
finishing,
permanent
decatising,
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 all the
materials used are classified
within a heading other than
that of the product

5805

types

Hand-woven tapestries of
gobelins,
the
flanders,
aubusson,
beauvais and the like, and
needle-worked tapestries
(for example, petit point,
cross stitch), whether or
not made up

5810

Embroidery in the piece,
in strips or in motifs

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

5901

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

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

Manufacture from yarn

192

5902

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

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

Manufacture from yarn

- Other

Manufacture from chemical
materials or textile pulp

5903

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

Manufacture from yarn

or

Printing accompanied by at
two preparatory or
least
finishing operations (such as
bleaching,
scouring,
mercerising, heat
setting,
rasing, calendering, shrink
processing,
resistance
finishing,
permanent
decatising,
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 from yarn1

5904

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

a

1

For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5

193

5905

Textile wall coverings:

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

Manufacture from yarn

- Other

Manufacture from1:

- coir yarn,

- natural fibres,

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

processed

chemical materials or

-
textile pulp,

or

Printing accompanied by at
least
two preparatory or
finishing operations (such as
bleaching,
scouring,
mercerising, heat
setting,
raising, calendering, shrink
processing,
resistance
finishing,
permanent
decatising,
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

194

5906

Rubberised textile fabrics,
other
of
heading No 5902:

those

than

- Knitted or crocheted
fabrics

Manufacture from1:

- natural fibres,

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

processed

chemical materials or

-
textile pulp

Manufacture from chemical
materials

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

of

- Other

Manufacture from yarn

5907

Textile fabrics otherwise
impregnated,
coated or
covered; painted canvas
being theatrical scenery,
studio back-cloths or the
like

Manufacture from yarn

or

Printing accompanied by at
least
two preparatory or
finishing operations (such as
bleaching,
scouring,
mercerising, heat
setting,
rasing, calendering, shrink
processing,
resistance
finishing,
permanent
decatising,
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

1

For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5

195

5908

the

stoves,
or

Textile wicks, woven,
for
plaited or knitted,
lamps,
lighters,
like;
candles
incandescent gas mantles
and tubular knitted gas
therefor,
mantle
fabric
not
whether
impregnated:

or

Incandescent

-
mantles, impregnated

gas

Manufacture from tubular
knitted gas mantle fabric

- Other

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

196

5909 to 5911

Textile articles of a kind
suitable for industrial use:

- Polishing discs or rings
other
felt of
than of
heading No 5911

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

or

- Woven fabrics, of a
kind commonly used in
papermaking
other
technical uses, felted or
not
not, whether
impregnated or
coated,
tubular or endless with
single or multiple warp
and/or weft, or flat woven
with multiple warp and/or
weft of heading No 5911

or

Manufacture from1:

- coir yarn,

- the following materials:

yarn
-
polytetrafluoroethylene2,

of

yarn, multiple,

-
polyamide,
impregnated
with a phenolic resin,

or

of
coated
covered

of

- yarn of synthetic textile
fibres
aromatic
polyamides, obtained by
of m-
polycondensation
phenylenediamine
and
isophthalic acid,

-
monofil
polytetrafluoroethylene2

of

- yarn of synthetic textile
fibres of poly-p-phenylene
terephthalamide,

- glass fibre yarn, coated
with
and
gimped with acrylic yarn2

phenol

resin

copolyester
-
monofilaments
a
of
polyester and a resin of
terephthalic acid and 1,4 -
cyclohexanediethanol and
isophthalic acid,

- natural fibres,

- man-made staple fibres not
or
carded
otherwise
for
spinning, or

combed
processed

or

chemical materials

-
textile pulp

or

197

- Other

Manufacture from1:

- coir yarn,

- natural fibres,

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

processed

chemical materials or

-
textile pulp

Chapter 60

Knitted
fabrics

or

crocheted

Manufacture from1:

- natural fibres,

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

processed

chemical materials or

-
textile pulp

Manufacture from yarn1,2

Chapter 61

Articles of apparel and
clothing
accessories,
knitted or crocheted:

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

knitted

of

1

2

1

2

For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5
The use of this material is restricted to the manufacture of woven fabrics of a kind used in paper-
making machinery.
For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5
See Introductory Note 6

198

- Other

Manufacture from1 :

- natural fibres,

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

processed

chemical materials or

-
textile pulp

199

ex Chapter 62 Articles of apparel and
clothing accessories, not
knitted
crocheted;
except for:

or

Manufacture from yarn1,2

ex 6202,

ex 6204,

ex 6206,

ex 6209 and
ex 6211

girls'
clothing

Women's,
babies'
clothing accessories
babies, embroidered

and
and
for

Manufacture from yarn1

or

from
Manufacture
fabric
unembroidered
the
provided the value of
unembroidered fabric used
does not exceed 40% of the
ex-works
the
price
product1

of

ex 6210 and

ex 6216

Fire-resistant
equipment
of fabric covered with foil
of aluminised polyester

Manufacture from yarn1

or

Manufacture from uncoated
fabric provided the value of
the uncoated fabric used
does not exceed 40% of the
ex-works
the
price
product1

of

6213 and

6214

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

- Embroidered

Manufacture
unbleached single yarn1,2

from

or

from
Manufacture
fabric
unembroidered
provided the value of
the
unembroidered fabric used
does not exceed 40% of the
the
price
ex-works
product1

of

1

See Introductory Note 6.

200

- Other

Manufacture
unbleached single yarn1,2

from

or

up

heat

followed

by
Making
printing accompanied by at
least
two preparatory or
finishing operations (such as
bleaching,
scouring,
mercerising,
setting,
raising, calendering, shrink
processing,
resistance
finishing,
permanent
decatising,
impregnating,
mending and burling) where
the value of the unprinted
goods of heading Nos 6213
and 6214 used does not
exceed 47.5% of
the ex-
works price of the product

6217

parts

Other made up clothing
accessories;
of
garments or of clothing
accessories,
than
those
heading No
6212:

other

of

- Embroidered

Manufacture from yarn1

or

from
Manufacture
fabric
unembroidered
the
provided the value of
unembroidered fabric used
does not exceed 40% of the
ex-works
the
price
product1

of

2

1

2

For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5

See Introductory Note 6.
For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5.

201

- Fire-resistant equipment
of fabric covered with foil
of aluminised polyester

Manufacture from yarn1

or

Manufacture from uncoated
fabric provided the value of
the uncoated fabric used
does not exceed 40% of the
ex-works
the
price
product1

of

Interlinings for collars

-
and cuffs, cut out

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

- Other

Manufacture from yarn1

ex Chapter 63 Other made-up
sets;

textile
worn
articles;
clothing and worn textile
articles; rags; except for:

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

6301 to 6304

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

other

- Of felt, of nonwovens

Manufacture from2:

- natural fibres, or

chemical materials or

-
textile pulp

1

2

See Introductory Note 6
For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5.

202

- Other:

-- Embroidered

Manufacture
unbleached single yarn1, 3

from

or

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

of

-- Other

Manufacture
unbleached single yarn1,3

from

6305

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

Manufacture from1 :

- natural fibres,

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

processed

chemical materials or

-
textile pulp

6306

Tarpaulins, awnings and
sunblinds; tents; sails for
boats,
or
landcraft; camping goods:

sailboards

3

1

For knitted or crocheted articles, not elastic or rubberised, obtained by sewing or assembly pieces of
knitted or crocheted fabrics (cut out or knitted directly to shape), see Introductory Note 6.
For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5

203

- Of nonwovens

Manufacture from1,2 :

- natural fibres, or

chemical materials or

-
textile pulp

- Other

Manufacture
unbleached single yarn1,2

from

2

See Introductory Note 6.

204

6307

Other made-up articles,
including dress patterns

Manufacture in which the
value of all
the materials
used does not exceed 40% of
the
the ex-works price of
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
if it were not
apply to it
set.
the
in
included
However,
non-originating
articles may be incorporated
provided their
total value
does not exceed 15% of the
ex-works price of the set

ex Chapter 64

Footwear, gaiters and the
like; except for:

6406

of

footwear
Parts
(including uppers whether
or not attached to soles
other
than outer soles);
removable in-soles, heel
similar
cushions
and
articles; gaiters,
leggings
and similar articles, and
parts thereof

Manufacture from materials
of any heading except for
assemblies of uppers affixed
to inner soles or to other sole
components of heading No
6406

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

ex Chapter 65 Headgear

and

parts

thereof, except for:

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

205

6503

6505

Manufacture from yarn or
textile fibres1

Manufacture from yarn or
textile fibres1

bodies,

Felt hats and other
felt
headgear, made from the
hat
or
plateaux of heading No
6501, whether or not lined
or trimmed

hoods

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

ex Chapter 66 Umbrellas, sun umbrellas,
seat-
walking-sticks,
sticks, whips,
riding-
crops, and parts thereof;
except for:

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

6601

Chapter 67

and

sun
Umbrellas
umbrellas
(including
walking-stick umbrellas,
garden
and
similar umbrellas)

umbrellas

feathers

and
Prepared
down and articles made of
feathers
down;
artificial flowers; articles
of human hair

or

of

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

ex Chapter 68 Articles of stone, plaster,
cement, asbestos, mica or
similar materials; except
for:

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

1

See Introductory Note 6.

206

ex 6803

Articles of slate or of
agglomerated slate

Manufacture from worked
slate

ex 6812

ex 6814

Manufacture from materials
of any heading

Articles
asbestos;
of
articles of mixtures with a
basis of asbestos or of
mixtures with a basis of
asbestos and magnesium
carbonate

Articles
mica,
of
including agglomerated or
reconstituted mica, on a
paper,
support
of
paperboard
other
materials

or

Manufacture from worked
(including
mica
or
agglomerated
reconstituted mica)

Chapter 69

Ceramic products

ex Chapter 70 Glass

and
except for :

glassware;

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

ex 7003

ex 7004 and

ex 7005

7006

Glass with
reflecting layer

a

non-

Manufacture from materials
of heading No. 7001

of

Glass
heading No
7003, 7004 or 7005, bent,
engraved,
edgeworked,
drilled,
or
otherwise worked, but not
fitted with
framed
other materials:

enamelled

or

207

- glass plate
substrate
coated with dielectric thin
film,
semi-conductor
grade, in accordance with
SEMII standards1

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

1

SEMII-Semiconductor Equipment and Materials Institute Incorporated

208

7007

7008

7009

7010

- other

Manufacture from materials
of heading No 7001

Safety glass, consisting of
toughened (tempered) or
laminated glass

Manufacture from materials
of heading No 7001

Multiple-walled
insulating units of glass

Manufacture from materials
7001
of

heading

No

Glass mirrors, whether or
including
not
rear-view mirrors

framed,

Manufacture from materials
of heading No 7001

and

pots,

flasks,
Carboys, bottles,
phials,
jars,
ampoules
other
containers, of glass, of a
kind
the
conveyance or packing of
goods; preserving jars of
glass; stoppers,
lids and
other closures, of glass

used

for

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

or

glassware,
of
Cutting
provided the value of
the
uncut glassware does not
exceed 50% of the ex-works
price of the product

209

7013

Glassware of a kind used
toilet,
for table, kitchen,
office,
indoor decoration
or similar purposes (other
than that of heading No
7010 or 7018)

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

or

glassware,
Cutting
of
provided the value of
the
uncut glassware does not
exceed 50% of the ex-works
price of the product

or

Hand-decoration (with the
silk-screen
of
exception
hand-blown
printing)
of
the
glassware,
value of
the hand-blown
glassware does not exceed
50% of the ex-works price
of the product

provided

210

ex 7019

Articles (other than yarn)
of glass fibres

Manufacture from:

uncoloured

-
slivers,
rovings, yarn or chopped
strands, or

- glass wool

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

ex Chapter 71 Natural or cultured pearls,
precious or semi-precious
stones, precious metals,
metals clad with precious
articles
metal,
and
imitation
thereof;
except
jewellery;
for:

coin;

ex 7101

Natural or cultured pearls,
graded and temporarily
strung for convenience of
transport

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

ex 7102,

ex 7103 and

ex 7104

Worked precious or semi-
precious stones (natural,
synthetic
or
reconstructed)

Manufacture from unworked
precious or
semi-precious
stones

7106,
and 7110

7108

Precious metals:

211

- Unwrought

Manufacture from materials
not classified within heading
No 7106, 7108 or 7110

or

thermal
separation

or
Electrolytic,
chemical
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

212

- Semi-manufactured or
in powder form

Manufacture
unwrought precious metals

from

ex 7107,

ex 7109 and

Metals clad with precious
metals,
semi-
manufactured

Manufacture
from metals
clad with precious metals,
unwrought

ex 7111

7116

Articles of natural or
cultured pearls, precious
stones
or
(natural,
or
reconstructed)

semi-precious

synthetic

7117

Imitation jewellery

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

or

Manufacture
from base
metal parts, not plated or
precious
with
covered
metals, provided the value of
all the materials used does
not exceed 50% of the ex-
works price of the product

ex Chapter 72

Iron and steel; except for: Manufacture in which all the
materials used are classified
within a heading other than
that of the product

7207

Semi-finished products of
iron or non-alloy steel

Manufacture 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
of
other
heading No 7206

primary

forms

213

7217

Wire of iron or non-alloy
steel

Manufacture
from semi-
finished materials of heading
No 7207

214

ex 7218, 7219
to 7222

Semi-finished
products,
flat-rolled products, bars
and rods, angles, shapes
and sections of stainless
steel

Manufacture from ingots or
other
of
heading No 7218

primary

forms

7223

Wire of stainless steel

Manufacture
from semi-
finished materials of heading
No 7218

ex 7224, 7225
to 7228

Semi-finished
products,
flat-rolled products, hot-
in
rolled bars and rods,
irregularly wound coils;
angles,
and
sections, of other alloy
steel; hollow drill bars
and rods, of alloy or non-
alloy steel

shapes

7229

Wire of other alloy steel

ex Chapter 73 Articles of iron or steel;
except for:

primary

Manufacture from ingots or
other
of
heading No 7206, 7218 or
7224

forms

Manufacture
from semi-
finished materials of heading
No 7224

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

ex 7301

Sheet piling

Manufacture from materials
of heading No 7206

215

Manufacture from materials
of heading No 7206

7302

steel,

Railway or tramway track
construction materials of
the
iron
or
following:
rails,
checkrails and rackrails,
crossing
switch blades,
frogs, point rods and other
crossing pieces, sleepers
(cross-ties),
fish-plates,
chairs, chair wedges, sole
pates (base plates),
rail
clips, bedplates, ties and
other material specialised
for jointing or fixing rails

216

7304,
and 7306

7305

Tubes, pipes and hollow
profiles, of
iron (other
than cast iron) or steel

Manufacture from materials
of heading No 7206, 7207,
7218 or 7224

ex 7307

Tube or pipe fittings of
(ISO No
stainless steel
X5CrNiMo
1712),
consisting of several parts

deburring
of

reaming,
Turning, drilling,
and
threading,
sandblasting
forged
blanks the value of which
does not exceed 35% of the
the
price
ex-works
product

of

Manufacture in which all the
materials used are classified
within a heading other than
product.
that
the
of
angles,
However, welded
shapes
of
heading No 7301 may not be
used

sections

and

7308

structures
bridges

(excluding
Structures
prefabricated buildings of
heading No 9406) and
(for
parts of
and
example,
lock-
bridge-sections,
lattice
towers,
gates,
masts,
roofing
roofs,
frame-works, doors and
windows and their frames
and thresholds for doors,
shutters,
balustrades,
pillars and columns), of
iron or steel; plates, rods,
angles, shapes, sections,
like,
tubes
prepared
in
for
structures, of iron or steel

and

use

the

ex 7315

Skid chain

Manufacture in which the
value of all the materials of
heading No 7315 used does
not exceed 50% of the ex-
works price of the product

217

ex Chapter 74

Copper
thereof; except for:

and

articles

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

7401

7402

Copper mattes;
copper
copper)

cement
(precipitated

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

Unrefined copper; copper
anodes
electrolytic
refining

for

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

7403

and
Refined
copper alloys, unwrought:

copper

- Refined copper

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

-
Copper alloys and
refined copper containing
other elements

Manufacture
from refined
copper, unwrought, or waste
and scrap of copper

7404

Copper waste and scrap

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

218

7405

Master alloys of copper

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

219

ex Chapter 75 Nickel

and

articles

Manufacture in which:

thereof; except for:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

7501 to 7503

Nickel mattes,
nickel
oxide sinters and other
intermediate products of
nickel
metallurgy;
unwrought nickel; nickel
waste and scrap

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

ex Chapter 76 Aluminium and articles

Manufacture in which:

thereof; except for:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

7601

Unwrought aluminium

in

that

than

which:
Manufacture
- all the materials used are
classified within a heading
other
the
product;
the
-
materials
not
used
exceed 50% of the ex-works
price of the product

the value of

all
does

of

220

7602

ex 7616

or

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

and

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

fabric

Aluminium articles other
than gauze, cloth, grill,
fencing,
netting,
and
reinforcing
similar
materials
(including endless bands)
of aluminium wire, and
expanded
of
aluminium

metal

Manufacture in which:

of

that

than

- all the materials used are
classified within a heading
other
the
product. However, gauze,
cloth, grill, netting, fencing,
reinforcing
and
similar materials (including
endless bands) of aluminium
wire, or expanded metal of
aluminium may be used;

fabric

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

Chapter 77

Reserved
future use in HS

for

possible

221

ex Chapter 78

Lead and articles thereof;
except for:

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

222

7801

Unwrought lead:

- Refined lead

Manufacture from "bullion"
or "work" lead

- Other

7802

Lead waste and scrap

Manufacture in which all the
materials used are classified
within a heading other than
that
product.
the
However, waste and scrap of
heading No 7802 may not be
used

of

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

ex Chapter 79

Zinc and articles thereof;
except for:

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

7901

Unwrought zinc

the
the value of all
-
materials
not
does
used
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
product.
the
However, waste and scrap of
heading No 7902 may not be
used

of

223

7902

Zinc waste and scrap

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

ex Chapter 80

Tin and articles thereof;
except for:

Manufacture in which:

- all the materials used are
classified within a heading
the
other
product;

than

that

of

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

Manufacture in which all the
materials used are classified
within a heading other than
product.
the
that
However, waste and scrap of
heading No 8002 may not be
used

of

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

8001

Unwrought tin

8002 and 8007 Tin waste and scrap; other

articles of tin

Chapter 81

Other
base
cermets; articles thereof:

metals;

Other base metals,

-
wrought; articles thereof

Manufacture in which the
value of all
the materials
classified within the same
heading as the product used
does not exceed 50% of the
ex-works
the
price
product

of

224

- Other

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

ex Chapter 82

implements,
Tools,
cutlery, spoons and forks,
of
parts
thereof of base metal;
except for:

base metal;

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

8206

8207

Tools of two or more of
the heading Nos 8202 to
8205, put up in sets for
retail sale

or

Interchangeable tools for
hand tools, whether or not
for
power-operated,
(for
machine-tools
pressing,
example,
for
punching,
stamping,
threading,
tapping,
boring,
drilling,
broaching,
milling,
turning, or screwdriving),
including dies for drawing
or extruding metal, and
rock
earth
boring tools

drilling

or

8208

and

Knives
cutting
for machines or
blades,
for mechanical appliances

Manufacture in which all the
materials used are classified
within 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

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

225

ex 8211

8214

8215

with

cutting
Knives
serrated or not
blades,
(including
pruning
knives), other than knives
of heading No 8208

Manufacture in which all the
materials used are classified
within a heading other than
that
product.
the
However, knife blades and
handles of base metal may
be used

of

butchers'

Other articles of cutlery
hair
(for
example,
clippers,
or
kitchen cleavers, choppers
and mincing knives, paper
or
knives); manicure
and
pedicure
instruments
(including
nail files)

sets

Manufacture in which all the
materials used are classified
within a heading other than
that
product.
the
However, handles of base
metal may be used

of

forks,

ladles,
Spoons,
skimmers,
cake-servers,
fish-knives, butter-knives,
sugar
tongs and similar
kitchen or tableware

Manufacture in which all the
materials used are classified
within a heading other than
that
product.
the
However, handles of base
metal may be used

of

ex Chapter 83 Miscellaneous articles of

base metal; except for:

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

ex 8302

similar

Other mountings, fittings
articles
and
suitable for buildings, and
automatic door closers

of

Manufacture in which all the
materials used are classified
within a heading other than
that
product.
the
However, the other materials
of heading No 8302 may be
used provided their value
does not exceed 20% of the
ex-works
the
price
product

of

226

ex 8306

Statuettes
ornaments, of base metal

and

other

of

Manufacture in which all the
materials used are classified
within a heading other than
product.
the
that
However, the other materials
of heading No 8306 may be
used provided their value
does not exceed 30% of the
ex-works
the
price
product

of

ex Chapter 84 Nuclear reactors, boilers,
and
machinery
mechanical
appliances;
parts thereof; except for:

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

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

ex 8401

Nuclear fuel elements

Manufacture in which all the
materials used are classified
within a heading other than
that of the product1

Manufacture in which the
value of all
the materials
used does not exceed 30% of
the ex-works price of
the
final product

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the ex-works price of
the
product

8402

Steam or other vapour
generating boilers (other
than central heating hot
water boilers capable also
of producing low pressure
steam);
heated
super
water boilers

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

1

This rule shall apply until 31 December 2005.

227

8403 and ex
8404

than

those

Central heating boilers
other
of
heading No 8402 and
auxiliary plant for central
heating boilers

Manufacture in which all the
materials used are classified
within a heading other than
heading No 8403 or 8404

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

8406

Steam turbines and other
vapour turbines

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

8407

8408

8409

8411

Spark-ignition
reciprocating
internal
piston engines

rotary
or
combustion

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

Compression-ignition
combustion
internal
piston engines (diesel or
semi-diesel engines)

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

for

suitable

Parts
use
solely or principally with
the engines of heading No
8407 or 8408

Turbo-jets,
turbo
propellers and other gas
turbines

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:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

228

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the ex-works price of
the
product

Manufacture in which the
the materials
value of all
used does not exceed 25% of
the ex-works price of
the
product

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the ex-works price of
the
product

8412

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

ex 8413

Rotary
displacement pumps

positive

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

ex 8414

Industrial
and the like

fans, blowers

Manufacture in which:

8415

fan

Air
conditioning
machines, comprising a
motor-driven
and
elements for changing the
temperature and humidity,
including those machines
in which the humidity
cannot
separately
regulated

be

- all the materials used are
classified within a heading
the
other
product;

than

that

of

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

229

Manufacture in which the
the materials
value of all
used does not exceed 25% of
the ex-works price of
the
product

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

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

8418

Refrigerators,
freezers
and other refrigerating or
freezing
equipment,
electric or other; heat
pumps
air
conditioning machines of
heading No 8415

other

than

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

ex 8419

Machines for wood, paper
pulp
paperboard
industries

and

8420

or

Calendering
other
rolling machines, other
than for metals or glass,
and cylinders therefor

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

-
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 the product;

- where, within the above
limit, the materials classified
within the same heading as
the product 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;

- where, within the above
limit, the materials classified
within the same heading as
the product are only used up
to a value of 25% of the ex-
works price of the product

230

Manufacture in which the
the materials
value of all
used does not exceed 25% of
the ex-works price of
the
product

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

8423

Weighing
machinery
(excluding balances of a
sensitivity of 5 cg or
including weight
better),
or
operated
counting
machines;
checking
weighing
machine
weights of all kinds

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

8425 to 8428

Lifting, handling, loading
or unloading machinery

Manufacture:

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

- where, within the above
limit, the materials classified
within heading No 8431 are
only used up to a value of
10% of the ex-works price
of the product

231

8429

Self-propelled bulldozers,
graders,
angledozers,
scrapers,
levellers,
shovels,
mechanical
shovel
excavators,
loaders,
tamping
machines and road rollers:

- Road rollers

Manufacture in which the
the materials
value of all
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 30% of
the ex-works price of
the
product

- Other

Manufacture:

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

- where, within the above
limit, the materials classified
within heading No 8431 are
only used up to a value of
10% of the ex-works price
of the product

8430

Other moving, grading,
scraping,
levelling,
excavating,
tamping,
compacting, extracting or
boring machinery,
for
earth, minerals or ores;
pile-drivers
pile-
extractors; snow-ploughs
and snow-blowers

and

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 30% of
the
the ex-works price of
product

the

value of

- where, within the above
limit,
the
materials classified within
heading No 8431 are only
used up to a value of 10% of
the
the ex-works price of
product

232

ex 8431

8439

suitable

Parts
use
solely or principally with
road rollers

for

Machinery
for making
pulp of fibrous cellulosic
material or for making or
or
finishing
paperboard

paper

8441

for
Other machinery
making up paper pulp,
paperboard,
paper
including
cutting
machines of all kinds

or

8444 to 8447 Machines

of

these
headings for use in the
textile industry

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

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

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

Manufacture:

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

- where, within the above
limit, the materials classified
within the same heading as
the product 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;

- where, within the above
limit, the materials classified
within the same heading as
the product are only used up
to a value of 25% of the ex-
works price of the product

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

ex 8448

Auxiliary machinery for
use with machines of
headings Nos 8444 and
8445

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

233

8452

Sewing machines, other
than
book-sewing
machines 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

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 of all the
non-originating
materials
used in assembling the head
(without motor) does not
exceed the value of
the
originating materials used;

- the thread tension, crochet
and zigzag mechanisms used
are already originating

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

8456 to

8466

Machine-tools
and
machines and their parts
and
of
accessories
headings Nos 8456 to
8466

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

8469 to 8472

(for
Office machines
typewriters,
example,
calculating
machines,
automatic data processing
duplicating
machines,
machines,
stapling
machines)

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

234

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the ex-works price of
the
product

8480

Moulding boxes for metal
bases;
foundry; mould
moulding
patterns;
moulds for metal (other
than ingot moulds), metal
carbides, glass, mineral
materials,
or
plastics

rubber

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

8482

Ball or roller bearings

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

8484

8485

the
the value of all
-
materials
not
does
used
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
product

Gaskets and similar joints
sheeting
of
metal
combined with
other
material or of two or more
layers of metal; sets or
gaskets
assortments
and
joints,
dissimilar in composition,
pouches,
in
up
put
similar
envelopes
packings;
mechanical
seals

of
similar

or

parts,

Machinery
not
containing
electrical
insulators,
connectors,
coils, contacts or other
not
features,
electrical
specified
included
or
elsewhere in this Chapter

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

235

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

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

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

ex Chapter 85

8501

and

Electrical machinery and
equipment
parts
thereof; sound recorders
reproducers,
and
and
image
television
sound
and
recorders
reproducers, and parts and
such
accessories
articles; except for:

of

Electric
generators
generating sets)

motors

and
(excluding

Manufacture in which

- all the materials used are
classified within a heading
other
the
product;

than

that

of

the
the value of all
-
materials
not
does
used
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 product;

- where, within the above
limit, the materials classified
within heading No 8503 are
only used up to a value of
10% of the ex-works price
of the product

8502

Electric generating sets
and rotary converters

Manufacture:

ex 8504

Power
supply units for
automatic data-processing
machines

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

- where, within the above
limit, the materials classified
within heading No 8501 or
8503,
taken together, are
only used up to a value of
10% of the ex-works price
of the product

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

236

ex 8518

Microphones and stands
therefor;
loudspeakers,
whether or not mounted
in their enclosures; audio-
frequency
electric
amplifiers; electric sound
amplifier sets

8519

8520

(record-
Turntables
record-players,
decks),
cassette- players
and
other sound reproducing
not
apparatus,
sound
a
incorporating
recording device

Magnetic tape recorders
and other sound recording
apparatus, whether or not
sound
incorporating
reproducing device

a

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the
the ex-works price of
product

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

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

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 of all the
non-originating
materials
used does not exceed the
value
originating
the
materials used

of

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 of all the
non-originating
materials
used does not exceed the
value
originating
the
materials used

of

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 of all the
non-originating
materials
used does not exceed the
value
originating
the
materials used

of

237

8521

Video
reproducing
whether
incorporating
tuner

recording

or
apparatus,
not
video

a

or

Manufacture in which the
the materials
value of all
used does not exceed 30% 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;

- where the value of all the
non-originating
materials
used does not exceed the
value
originating
the
materials used

of

238

8522

8523

8524

and

Parts
accessories
suitable for use solely or
principally
the
apparatus of heading Nos
8519 to 8521

with

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

similar

Prepared
unrecorded
media for sound recording
or
recording of
other phenomena, other
than products of Chapter
37

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

other

Records, tapes and other
recorded media for sound
or
similarly
phenomena,
recorded
including matrices
and
masters for the production
of records, but excluding
products of Chapter 37:

- Matrices and masters
of
the production
for
records

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

- Other

Manufacture:

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

- where, within the above
limit, the materials classified
within heading No 8523 are
only used up to a value of
10% of the ex-works price
of the product

239

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

8525

or

apparatus
Transmission
radio-telephony,
for
radio-telegraphy,
radio-
broadcasting or television,
not
whether
reception
incorporating
apparatus
sound
recording or reproducing
apparatus;
television
cameras; still image video
cameras and other video
camera recorders

or

8526

Radar
radio
apparatus,
navigational aid apparatus
and radio remote control
apparatus

8527

Reception apparatus for
radio-
radio-telephony,
telegraphy
radio
or
broadcasting, whether or
not combined, in the same
housing,
sound
recording or reproducing
apparatus or a clock

with

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the
the ex-works price of
product

Manufacture in which the
the materials
value of all
used does not exceed 25% of
the ex-works price of
the
product

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the
the ex-works price of
product

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 of all the
non-originating
materials
does not exceed the
used
value
originating
of
materials used

the

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 of all the
non-originating
materials
does not exceed the
used
value
originating
of
materials used

the

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 of all the
non-originating
materials
does not exceed the
used
value
originating
of
materials used

the

240

8528

8529

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the
the ex-works price of
product

Reception apparatus for
television, whether or not
incorporating
radio
or
broadcast
sound or video recording
or reproducing apparatus;
video monitors and video
projectors

receivers

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 of all the
non-originating
materials
does not exceed the
used
value
originating
of
materials used

the

for

suitable

Parts
use
solely or principally with
the apparatus of heading
Nos 8525 to 8528:

- Suitable for use solely
or principally with video
recording or reproducing
apparatus

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

- Other

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 of all the
non-originating
materials
does not exceed the
used
value
originating
of
materials used

the

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the
the ex-works price of
product

241

8535 and 8536 Electrical apparatus

for
switching or protecting
electrical circuits, or for
making connections to or
in electrical circuits

8537

apparatus

Boards, panels, consoles,
desks, cabinets and other
bases, equipped with two
or more
of
heading No 8535 or 8536,
for electric control or the
distribution of electricity,
including
those
incorporating instruments
or apparatus of Chapter
90, and numerical control
than
apparatus,
switching
of
heading No 8517

other
apparatus

ex 8541

transistors
and
Diodes,
similar
semi-conductor
devices, except wafers not
yet cut into chips

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

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

Manufacture in which the
value of all
the materials
used does not exceed 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;

- 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 product

Manufacture:

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

- 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 product

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

242

8542

Electronic
circuits
microassemblies

integrated
and

Manufacture in which the
the materials
value of all
used does not exceed 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;

- where, within the above
limit, the materials classified
within heading No 8541 or
taken together, are
8542,
only used up to a value of
10% of the ex-works price
of the product

243

8544

8545

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

(including
Insulated
anodised)
enamelled or
wire,
(including
cable
coaxial cable) and other
insulated
electric
conductors, whether or
not fitted with connectors;
optical fibre cables, made
up
individually
sheathed fibres, whether
or not assembled with
or
conductors
electric
fitted with connectors

of

Carbon electrodes, carbon
brushes,
lamp carbons,
battery carbons and other
articles of graphite or
or
other
without metal, of a kind
used
electrical
purposes

carbon, with

for

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

8546

Electrical
any material

insulators

of

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

244

8547

8548

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

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

fittings

for
Insulating
electrical
machines,
appliances or equipment,
being fittings wholly of
insulating materials apart
from
minor
any
components of metal (for
threaded
example,
sockets)
incorporated
during moulding solely
for purposes of assembly
than insulators of
other
8546;
heading
electrical conduit
tubing
therefor, of
and joints
base metal
lined with
insulating material

No

scrap

cells,
batteries

and
cells,
and

of
Waste
primary
primary
electric
batteries
spent
accumulators;
spent
primary
and
primary
electric
spent
accumulators;
electrical
parts of machinery or
apparatus, not specified or
included elsewhere in this
Chapter

ex Chapter 86

Railway
tramway
or
locomotives, rolling-stock
and parts thereof; railway
or tramway track fixtures
and parts
and fittings
mechanical
thereof;
(including
electro-
traffic
mechanical)
signalling equipment of
all kinds; except for:

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

245

8608

Railway or tramway track
fittings;
and
fixtures
mechanical
(including
electro-mechanical)
signalling,
or
safety
traffic control equipment
for
tramways,
inland waterways,
roads,
parking
port
installations or airfields;
parts of the foregoing

facilities,

railways,

other

ex Chapter 87 Vehicles
railway
or
rolling-stock,
and accessories
except for:

than
tramway
and parts
thereof;

8709

8710

in

or

self-
trucks,
Works
propelled, not fitted with
handling
lifting
the type
equipment, of
factories,
used
warehouses, dock areas or
airports for short distance
transport
goods;
of
tractors of the type used
station
railway
on
platforms; parts of
the
foregoing vehicles

Tanks and other armoured
fighting
vehicles,
motorised, whether or not
fitted with weapons, and
parts of such vehicles

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

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

Manufacture in which the
value of all
the materials
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
the
product;

than

that

of

the
the value of all
-
materials
not
does
used
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
product

Manufacture in which:

- all the materials used are
classified within a heading
the
other
product;

than

that

of

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

Manufacture in which:

- all the materials used are
classified within a heading
the
other
product;

than

that

of

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

246

8711

Motorcycles
(including
mopeds) and cycles fitted
with an auxiliary motor,
with or without side-cars;
side-cars:

With reciprocating
combustion
a
of

-
internal
piston
cylinder capacity:

engine

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

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the
the ex-works price of
product

-- Not exceeding 50 cc

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 of all the
non-originating
materials
used does not exceed the
value
originating
the
materials used

of

-- Exceeding 50 cc

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 of all the
non-originating
materials
used does not exceed the
value
originating
the
materials used

of

247

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

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

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

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

- Other

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 of all the
non-originating
materials
used does not exceed the
value
originating
the
materials used

of

ex 8712

Bicycles without
bearings

ball

Manufacture from materials
not classified in heading No
8714

8715

Baby carriages and parts
thereof

Manufacture in which:

8716

Trailers and semi-trailers;
not
other
vehicles,
mechanically
propelled;
parts thereof

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

Manufacture in which:

- all the materials used are
classified within a heading
the
other
product;

than

that

of

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

248

ex Chapter 88 Aircraft, spacecraft, and

parts thereof; except for:

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

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

ex 8804

Rotochutes

8805

Aircraft
deck-arrestor or
ground
gear;
trainers;
parts
foregoing articles

launching gear;
similar
flying
the

of

Manufacture from materials
of any heading including
other materials of heading
No 8804

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

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

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

Chapter 89

Ships, boats and floating
structures

Manufacture in which all the
materials used are classified
within a heading other than
that
product.
the
However, hulls of heading
No 8906 may not be used

of

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 30% of
the ex-works price of
the
product

ex Chapter 90 Optical,

photographic,

Manufacture in which:

cinematographic,
measuring,
precision, medical
surgical
apparatus;
accessories
except for:

checking,
or
instruments and
and
thereof;

parts

- all the materials used are
classified within a heading
the
other
product;

than

that

of

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

249

9001

9002

Optical fibres and optical
optical
fibre
bundles;
fibre cables other
than
heading No
of
those
8544; sheets and plates of
polarising material; lenses
(including contact lenses),
prisms, mirrors and other
optical elements, of any
material,
unmounted,
other than such elements
optically
of glass not
worked

other

Lenses, prisms, mirrors
and
optical
elements, of any material,
mounted, being parts of or
fittings for instruments or
apparatus, other than such
elements of glass not
optically worked

9004

Spectacles, goggles and
the
corrective,
like,
protective or other

ex 9005

Binoculars, monoculars,
other optical
telescopes,
and mountings therefor,
except
for astronomical
refracting telescopes and
mountings therefor

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

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
product

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

-
the value of all the non-
originating materials used
does not exceed the value of
originating materials
the
used

250

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

ex 9006

Photographic (other than
cinematographic)
cameras;
photographic
flashlight apparatus and
than
flashbulbs
ignited
electrically
flashbulbs

other

9007

Cinematographic cameras
and projectors, whether or
incorporating sound
not
recording or reproducing
apparatus

9011

optical
including
for

Compound
microscopes,
those
photomicrography,
cinephotomicrography or
microprojection

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

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

Manufacture in which the
value of all
the materials
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
the
product;

than

that

of

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

-
the value of all the non-
originating materials used
does not exceed the value of
the
originating materials
used

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

-
the value of all the non-
originating materials used
does not exceed the value of
originating materials
the
used

Manufacture in which:

- all the materials used are
classified within a heading
the
other
product;

than

that

of

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

the value of all the non-
-
originating materials used
does not exceed the value of
the
originating materials
used

251

9015

9016

9017

9018

ex 9014

Other
instruments
appliances

navigational
and

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

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

(including

Surveying
photogrammetrical
surveying), hydrographic,
oceanographic,
hydrological,
or
meteorological
geophysical
instruments
and appliances, excluding
compasses; rangefinders

Balances of a sensitivity
of 5 cg or better, with or
without weights

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

Drawing, marking-out or
mathematical calculating
instruments (for example,
drafting
machines,
pantographs, protractors,
drawing sets, slide rules,
disc
calculators);
instruments for measuring
length, for use in the hand
(for example, measuring
tapes,
rods
and
micrometers,
callipers),
not specified or included
elsewhere in this Chapter

used

veterinary

Instruments
and
in
appliances
medical, surgical, dental
or
sciences,
including
scintigraphic
apparatus, other electro-
medical
and
sight-testing instruments:

apparatus

252

Dentists'

-
incorporating
appliances
spittoons

or

chairs
dental
dentists'

Manufacture from materials
of any heading,
including
other materials of heading
No 9018

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

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the
the ex-works price of
product

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the ex-works price of
the
product

Manufacture in which the
value of all
the materials
used does not exceed 25% of
the
the ex-works price of
product

- Other

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

9019

9020

Mechano-therapy
appliances;
massage
apparatus; psychological
aptitude-testing apparatus;
oxygen
ozone
therapy,
therapy,
therapy, aerosol
or
artificial
therapeutic
other
respiration apparatus

respiration

Other
breathing
appliances and gas masks,
protective
excluding
neither
masks
mechanical
nor
replaceable filters

having

parts

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

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

253

9024

9025

9026

Machines and appliances
for testing the hardness,
strength, compressibility,
other
elasticity
mechanical properties of
example,
materials
(for
metals, wood,
textiles,
paper, plastics)

or

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

Hydrometers and similar
floating
instruments,
thermometers,
pyrometers,
hygrometers
psychrometers,
or
not,
combination
instruments

barometers,
and
recording
any
these

and
of

or

variables
gases

Instruments and apparatus
for measuring or checking
level, pressure
the flow,
of
or
other
liquids
(for
example,
flow meters,
gauges,
level
manometers, heat meters),
excluding instruments and
apparatus of heading No
9014, 9015, 9028 or 9032

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

254

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

9027

apparatus

Instruments and apparatus
for physical or chemical
analysis
example,
(for
polarimeters,
refractometers,
gas
or
spectrometers,
analysis
smoke
instruments
apparatus);
for
and
checking
measuring or
viscosity,
porosity,
expansion, surface tension
instruments
or
for
and
measuring or
checking
quantities of heat, sound
(including
or
exposure
meters);
microtomes

apparatus

the like;

light

9028

or

Gas, liquid or electricity
production
supply
including
meters,
calibrating
meters
therefor:

- Parts and accessories

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

- Other

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 of all the
materials
non-originating
used does not exceed the
value
originating
the
materials used

of

255

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

9029

9030

9031

9032

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

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

counters,
Revolution
production
counters,
taximeters, mileometers,
pedometers and the like;
and
speed
indicators
tachometers, other
than
those of heading Nos
9015;
or
9014
stroboscopes

and

spectrum
Oscilloscopes,
analysers
other
instruments and apparatus
for measuring or checking
quantities,
electrical
of
meters
excluding
heading
9028;
No
instruments and apparatus
for measuring or detecting
alpha, beta, gamma, X-
ray,
other
or
cosmic
ionising radiations

checking
Measuring or
appliances
instruments,
not
machines,
and
specified
included
or
elsewhere in this Chapter;
profile projectors

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

Automatic regulating or
instruments
controlling
and apparatus

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

256

9033

Parts and accessories (not
specified
included
or
elsewhere in this Chapter)
for machines, appliances,
instruments or apparatus
of Chapter 90

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

ex Chapter 91

Clocks and watches and
parts thereof; except for:

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

9105

Other clocks

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 of all the
non-originating
materials
used does not exceed the
value
originating
the
materials used

of

9109

Clock
complete and assembled

movements,

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 of all the
non-originating
materials
used does not exceed the
value
originating
the
materials used

of

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

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

257

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

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

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

9110

Complete watch or clock
movements, unassembled
or
assembled
partly
sets);
(movement
incomplete watch or clock
assembled;
movements,
rough watch or
clock
movements

Manufacture:

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

- 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 product

9111

Watch cases and parts
thereof

Manufacture in which:

- all the materials used are
classified within a heading
the
other
product;

than

that

of

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

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

9112

Clock cases and cases of a
similar
other
goods of this Chapter, and
parts thereof

type

for

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

9113

Watch
bands
bracelets,
thereof:

straps,
and

and

watch
watch
parts

258

- Of base metal, whether
or not gold- or silver-
plated, or of metal clad
with precious metal

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

- Other

Chapter 92

instruments;
Musical
parts and accessories of
such articles

Chapter 93

Arms and ammunition;
parts
accessories
thereof

and

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

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 50% of
the ex-works price of
the
product

ex Chapter 94

cushions

bedding,
mattress
and
stuffed
and
not
or
illuminated
illuminated name-
like;
the
buildings;

Furniture;
mattresses,
supports,
similar
furnishings;
lighting
elsewhere
included;
signs,
and
plates
prefabricated
except for:

lamps
fittings,
specified

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

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

259

ex 9401 and

ex 9403

furniture,
Base metal
incorporating
unstuffed
cotton cloth of a weight of
300 g/m2 or less

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

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

or

from cotton
Manufacture
cloth already made up in a
form ready
of
heading No 9401 or 9403,
provided:

use

for

-
its value does not exceed
25% of the ex-works price
of the product;

- all the other materials used
are already originating and
are classified in a heading
other than heading No 9401
or 9403

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

9405

and

and

not
or

lighting
Lamps
including
fittings
and
searchlights
parts
spotlights
elsewhere
thereof,
included;
specified
signs,
illuminated
illuminated
name-plates
and the like, having a
permanently fixed light
source, and parts thereof
not elsewhere specified or
included

9406

Prefabricated buildings

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

260

ex Chapter 95

Toys, games and sports
and
requisites;
accessories
thereof;
except for:

parts

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

9503

reduced-size
toys;
Other
and
("scale") models
similar
recreational
models, working or not;
puzzles of all kinds

ex 9506

clubs

and

parts

Golf
thereof

Manufacture in which:

- all the materials used are
classified within a heading
the
other
product;

than

that

of

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

Manufacture in which all the
materials used are classified
within a heading other than
product.
the
of
that
However,
roughly shaped
blocks for making golf club
heads may be used

ex Chapter 96 Miscellaneous
manufactured
except for:

articles;

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

ex 9601 and

ex 9602

Articles
vegetable
carving materials

of
animal,
or mineral

Manufacture from "worked"
carving materials of
the
same heading

261

ex 9603

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

and

brushes
Brooms
(except
for besoms and
the like and brushes made
from marten or squirrel
hand-operated
hair),
mechanical
floor
sweepers, not motorised,
paint pads and rollers,
squeegees and mops

9605

Travel sets for personal
toilet, sewing or shoe or
clothes cleaning

9606

9608

press-fasteners,
Buttons,
snap-fasteners and press-
studs, button moulds and
other
these
parts
articles; button blanks

of

other

pens;

Ball-points
felt-
tipped and other porous-
tipped pens and markers;
fountain pens, stylograph
pens;
and
pens
stylos;
duplicating
or
propelling
sliding
pencils;
penholders,
pencil-holders and similar
holders; parts (including
caps and clips) of
the
foregoing articles, other
than those of heading No
9609

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

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

the
the value of all
-
materials
not
does
used
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, nibs or nib-points
classified within the same
heading may be used

262

9612

or
inked
prepared

similar
Typewriter
or
ribbons,
for
otherwise
giving
impressions,
whether or not on spools
or in cartridges; ink-pads,
whether or not inked, with
or without boxes

ex 9613

Lighters
igniter

with

piezo-

Manufacture in which:

- all the materials used are
classified within a heading
other
the
product;

than

that

of

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

Manufacture in which the
value of all the materials of
heading No 9613 used does
not exceed 30% of the ex-
works price of the product

ex 9614

Smoking pipes and pipe
bowls

Manufacture from roughly
shaped blocks

Chapter 97

Works of art, collectors'
pieces and antiques

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

263

Annex 3 to ANNEX III

Form for movement certificate

1. Movement certificates EUR.1 shall be made out on the form of which a specimen appears in
this Annex. This form shall be printed in one or more of the languages in which the
Agreement is drawn up. Certificates shall be made out in one of these languages and in
accordance with the provisions of the domestic law of the exporting State if they are hand-
written, they shall be completed in ink and in capital letters.

2.

3.

Each certificate shall measure 210 x 297mm, a tolerance of up to plus 8mm or minus 5mm in
the length may be allowed. The paper used must be white, sized for writing, not containing
mechanical pulp and weighing not less than 25g/m2.
It shall have a printed green guilloche
pattern background making any falsification by mechanical or chemical means apparent to the
eye.

The exporting States may reserve the right to print the certificates themselves or may have
them printed by approved printers. In the latter case each certificate must include a reference
to such approval. Each certificate must bear the name and address of the printer or a mark by
which the printer can be identified. It shall also bear a serial number, either printed or not, by
which it can be identified.

264

1.

Exporter (name, full address, country)

MOVEMENT CERTIFICATE

EUR.1

No A

000.000

See notes overleaf before completing this form

2. Certificate used in preferential trade between

3. Consignee (name, full address, country) (Optional)

and

(insert appropriate countries, groups of countries or territories)

4. Country,

group

of
countries or territory in
which the products are
considered as originating

5. Country,

group

of
countries or territory of
destination

6.

Transport details (Optional)

7. Remarks

265

8.

Item number; Marks and numbers; Number and kind of package (1); Description of goods

9. Gross mass (kg)
or other measure
(litres, m3, etc.)

10.Invoices

(Optional)

266

11. CUSTOMS ENDORSEMENT

12. DECLARATION BY THE EXPORTER

Declaration certified

Export document (2)

Form.........................................................No ......................

Customs office ...................................................................

Issuing country or territory

.............................................................................................

Date.....................................................................................

Stamp

.............................................................................................

(Signature)

the undersigned, declare that

I,
the goods
described above meet the conditions required
for the issue of this certificate.

Place and date ........................................................

. ...............................................................................

(Signature)

(1) If goods are not packed, indicate number of articles or state "In bulk" as appropriate

(2) Complete only where the regulations of the exporting country or territory require

267

13. Request for verification, to:

14. Result of verification

Verification carried out shows that this certificate (*)

was issued by the customs office indicated and that the information
contained therein is accurate.

does not meet the requirements as to authenticity and accuracy (see
remarks appended).

Verification of the authenticity and accuracy of this certificate is requested

..............................................................................................................................

(Place and date)

.............................................................................................................................

(Place and date)

..................................................................

Stamp

..................................................................

Stamp

............................... .........................................

...............................(Signature)

............................... .........................................

...............................(Signature)

________________________

(*) Insert X in the appropriate box.

268

NOTES

1.

2.

Certificates must not contain erasures or words written over one another. Any alterations
must be made by deleting the incorrect particulars and adding any necessary corrections. Any
such alteration must be initialled by the person who completed the certificate and endorsed by
the customs authorities of the issuing country or territory.

No spaces must be left between the items entered on the certificate and each item must be
preceded by an item number. A horizontal line must be drawn immediately below the last
item. Any unused space must be struck through in such a manner as to make any later
additions impossible.

3.

Goods must be described in accordance with commercial practice and with sufficient detail to
enable them to be identified.

269

APPLICATION FOR A MOVEMENT CERTIFICATE

1.

Exporter (name, full address, country) (Optional)

EUR.1

No A

000.000

See notes overleaf before completing this form

2. Application for a certificate to be used in preferential trade

between

3. Consignee (name, full address, country) (Optional)

and

(insert appropriate countries or groups of countries or territories)

4. Country,

group

of
countries or territory in
which the products are
considered as originating

5. Country,

group

of
countries or territory of
destination

6.

Transport details (Optional)

7. Remarks

270

8.

Item number; Marks and numbers; Number and kind of packages (*); Description of goods

9. Gross mass (kg)
or other measure
(litres, m3, etc.)

10.Invoices

(Optional)

(1) If goods are not packed, indicate number of articles or state "In bulk" as appropriate

271

272

DECLARATION BY THE EXPORTER

I, the undersigned, exporter of the goods described overleaf,

DECLARE that the goods meet the conditions required for the issue of the attached

certificate;

SPECIFY as follows the circumstances which have enabled these goods to meet the

above conditions:

..............................................................................................................................

..............................................................................................................................

..............................................................................................................................

..............................................................................................................................

SUBMIT the following supporting documents (1):

..............................................................................................................................

..............................................................................................................................

..............................................................................................................................

..............................................................................................................................

UNDERTAKE to submit, at the request of the appropriate authorities, any supporting
evidence which these authorities may require for the purpose of issuing the
attached certificate, and undertake, if required, to agree to any inspection
of my accounts and to any check on the processes of manufacture of the
above goods, carried out by the said authorities;

(1)

For example, import documents, movement certificates, manufacturer's declarations,
etc. referring to the products used in manufacture or to the goods re-exported in the
same state.

273

REQUEST the issue of the attached certificate for these goods.

.............................................................................

(Place and date)

.............................................................................

(Signature)

274

Annex 4 TO ANNEX III

Invoice declaration

The invoice declaration, the text of which is given below, must be made out in accordance with the

footnotes. However, the footnotes do not have to be reproduced.

English version

The exporter of the products covered by this document (customs authorisation No ... (1)) declares

that, except where otherwise clearly indicated, these products are of ... preferential origin (2).

Spanish version

El exportador de los productos incluidos en el presente documento (autorización aduanera n° ... (1))

declara que, salvo indicación en sentido contrario, estos productos gozan de un origen preferencial

... (2).

Danish version

Eksportøren af varer, der er omfattet af nærværende dokument, (toldmyndighedernes tilladelse nr.

... (1)), erklærer, at varerne, medmindre andet tydeligt er angivet, har præferenceoprindelse i ... (2).

(1) When the invoice declaration is made out by an approved exporter within the meaning of
Article 20 of the Protocol, the authorisation number of the approved exporter must be entered
in this space. When the invoice declaration is not made out by an approved exporter, the
words in brackets shall be omitted or the space left blank.

(2) Origin of products to be indicated. When the invoice declaration relates in whole or in part, to
products originating in Ceuta and Melilla within the meaning of Article 39 of the Protocol, the
exporter must clearly indicate them in the document on which the declaration is made out by
means of the symbol "CM".

275

German version

Der Ausführer (Ermächtigter Ausführer; Bewilligungs-Nr. ... (1), der Waren, auf die sich dieses
angegeben,
Handelspapier

diese Waren,

bezieht,

erklärt,

soweit

anders

nicht

dass

präferenzbegünstigte ... Ursprungswaren sind (2)

Greek version

Ο εξαγωγέας των προϊόντων που καλύπτονται από το παρόν έγγραφο

άδεια τελωνείου υπ΄αριθ

. ....
τα προϊόντα αυτά είναι προτιµησιακής

(

δηλώνει ότι

εκτός εάν δηλώνεται σαφώς άλλως

,

,

(1))
καταγωγής

.... (2).

French version

L'exportateur des produits couverts par le présent document (autorisation douanière n° ... (1)),

déclare que, sauf indication claire du contraire, ces produits ont l'origine préférentielle ... (2).

Italian version

L'esportatore delle merci contemplate nel presente documento (autorizzazione doganale n. ... (1))

dichiara che, salvo indicazione contraria, le merci sono di origine preferenziale ... (2).

Dutch version

De exporteur van de goederen waarop dit document van toepassing is (douanevergunning nr. ... (1))

verklaart dat, behoudens uitdrukkelijke andersluidende vermelding, deze goederen van preferentiële
... oorsprong zijn (2).

(1) When the invoice declaration is made out by an approved exporter within the meaning of
Article 20 of the Protocol, the authorisation number of the approved exporter must be entered
in this space. When the invoice declaration is not made out by an approved exporter, the
words in brackets shall be omitted or the space left blank.

276

Portuguese version

O abaixo assinado, exportador dos produtos cobertos pelo presente documento (autorização

aduaneira n° ... (1)), declara que, salvo expressamente indicado em contrário, estes produtos são de

origem preferencial ... (2).

Finnish version

Tässä asiakirjassa mainittujen tuotteiden viejä (tullin lupan:o ... (1)) ilmoittaa, että nämä tuotteet

ovat, ellei toisin ole selvästi merkitty, etuuskohteluun oikeutettuja ... alkuperätuotteita (2).

Swedish version

Exportören av de varor som omfattas av detta dokument (tullmyndighetens tillstånd nr. ... (1))

försäkrar att dessa varor, om inte annat tydligt markerats, har förmånsberättigande ... ursprung (2).

....................................... (3)

(Place and date)

(2) Origin of products to be indicated. When the invoice declaration relates in whole or in part, to
products originating in Ceuta and Melilla within the meaning of Article 39 of the Protocol, the
exporter must clearly indicate them in the document on which the declaration is made out by
means of the symbol "CM".

(3)

These indications may be omitted if the information is contained on the document itself.

277

....................................... (4)

(Signature of the exporter;
in
addition the name of the person
signing the declaration has to be
indicated in clear script)

(4)

See Article 19(5) of the Protocol.
exemption of signature also implies the exemption of the name of the signatory.

In cases where the exporter is not required to sign, the

278

Annex 5A TO ANNEX III

Supplier declaration for products having preferential origin status

I, the undersigned, declare that the goods listed on this invoice ....................................................(1)

were produced in ................................(2) and satisfy the rules of origin governing preferential trade
between the ACP States and the European Community.

I undertake to make available to the customs authorities, if required, evidence in support of this
declaration.

.............................…...............................(3)

...................................................................................(4)

.............................................(5)

The abovementioned text, suitably completed in conformity with the footnotes below, constitutes a
supplier's declaration. The footnotes do not have to be reproduced.

Note

(1) - If only some of the goods listed on the invoice are concerned they should be clearly indicated or marked and this
invoice and marked

follows:"............................

listed on this

marking entered on the declaration as
....................were produced ..............................."

- If a document other than an invoice or an annex to the invoice is used (see Article 26(3)), the name of the document
the word "invoice"

concerned shall be mentioned instead of

(2) The Community, Member State, ACP State or OCT. Where an ACP State or an OCT is given, a reference must also
be made to the Community customs office holding any EUR.1 (s) concerned, giving the No of the certificate(s)
concerned and, if possible, the relevant customs entry No involved.

(3) Place and date

279

(4) Name and function in company

(5) Signature

280

Annex 5B TO ANNEX III

Supplier declaration for products not having preferential original status

I, the undersigned, declare that the goods listed on this invoice ....................(1) were produced in
......................(2) and incorporate the following components or materials which do not have ACP,
OCT or Community origin for preferential trade:

.............................................(3)

...............................................(4)

................................................(5)

.......................................................

...............................................................

......................................................

...................….........................................

...........................................................................................................................................................(6)

I undertake to make available to the customs authorities, if required, evidence in support of this
declaration.

.................................................................(7)

...............................................................(8)

.................................................................(9)

Note

The abovementioned text, suitably completed in conformity with the footnotes below, constitutes a
supplier's declaration. The footnotes do not have to be reproduced.

(1) - If only some of the goods listed on the invoice are concerned they should be clearly indicated or marked and this
invoice and marked

follows:"............................

listed on this

marking entered on the declaration as
....................were produced ..............................."

281

- If a document other than an invoice or an annex to the invoice is used (see Article 26(3)), the name of the document
the word "invoice"

concerned shall be mentioned instead of

(2) The Community, Member State, ACP State, OCT or South Africa.

(3) Description is to be given in all cases. The description must be adequate and should be sufficiently detailed to allow

the tariff classification of the goods concerned to be determined.

(4) Customs values to be given only if required

(5) Country of origin to be given only if required. The origin to be given must be a preferential origin, all other origins

to be given as "third country".

(6)

"and have undergone the following processing in [ the Community] [Member State] [ACP State] [OCT]
[South Africa] ................................., to be added with a description of the processing carried out if this information
is required.

(7) Place and date

(8) Name and function in company

(9) Signature

282

Annex 6 TO ANNEX III

Information Certificate

1.

2.

3.

The form of information certificate given in this Annex shall be used and be printed in one or
more of the official languages in which the Agreement is drawn up and in accordance with the
provisions of the domestic law of the exporting State.
Information certificates shall be
completed in one of those languages; if they are hand-written, they shall be completed in ink
in capital letters. They shall bear a serial number, whether or not printed, by which they can
be identified.

The information certificate shall measure 210 x 297mm, a tolerance of up to plus 8mm or
minus 5mm in the length may be allowed. The paper must be white, sized for writing, not
containing mechanical pulp and weighing not less than 25g/m2.

The national administrators may reserve the right to print the forms themselves or may have
In the latter case, each form must include a
them printed by printers approved by them.
reference to such approval. The forms shall bear the name and address of the printer or a
mark by which the printer can be identified.

283

1. Supplier(,)

2. Consignee (1)

European Communities

INFORMATION CERTIFICATE

to facilitate the issue of a

MOVEMENT CERTIFICATE

for preferential trade between the

EUROPEAN

COMMUNITY

3. Processor (1)

4. State in which the working or processing has been carried out

6. Customs office of importation (1)

5. For official use

7. Import document (2)

Form ...........................................

No .................... ..............................

Series………………………….…………………………………………

Date

GOODS SENT TO THE MEMBER STATES OF DESTINATION

8. Marks, numbers, quantity

9. Harmonised Commodity Description and Coding System

10. Quantity (1)

and kind of package

heading/subheading number (HS code)

11. Value (4)

284

12. Harmonised Commodity Description and Coding System

13. Country of

14. Quantity (3)

15. Value (2)(5)

heading/subheading number (HS code)

origin

IMPORTED GOODS USED

16. Nature of the working or processing carried out

17. Remarks

18. CUSTOMS ENDORSEMENT

19. DECLARATION BY THE SUPPLIER

Declaration certified:

1, the undersigned, declare that the information

on this certificate is accurate.

Document ……………………...

Form ...................................No……...

--------------------------------

Customs office ………………..

......................................

(Place)

(Date)

Date:

Official
Stamp

---------------------------------------.

. ................ ..................... ........................................... ....................

(Signature)

(Signature)

(1)(2)(3)(4)(5) See footnotes on verso

285

REQUEST FOR VERIFICATION

RESULT OF VERIFICATION

The undersigned customs official requests verification of the authenticity

Verification carried out by the undersigned customs official shows that this

and accuracy of this information certificate.

information certificate:

a) was issued by the customs office indicated and that the information contained
therein is accurate (*)

b) does not meet the requirements as to authenticity and accuracy (see notes
appended) (*)

------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------

(Place and date)

(Place and date)

Official
stamp

Official
stamp

--------------------------------------------------------------------------

-------------------------------------------------------------------------------

---------------------

(Official's signature)

(Official's signature)

(*)

Delete where not applicable

286

CROSS REFERENCES

(1)

Name of individual or business and full address.

(2)

Optional information.

(3)

(4)

Kg, hl, m3 or other measure.

Packaging shall be considered as forming a whole with the goods contained therein. However, this provision shall
not apply to packaging which is not of the normal type for the article packed, and which has a lasting utility value
of its own, apart from its function as packaging.

(5)

The value must be indicated in accordance with the provisions on rules of origin.

287

Annex 7 to ANNEX III
Form for application for a derogation

1. Commercial description of the finished product

2. Anticipated annual quantity of exports to the Commu
(weight, No of pieces, meters or

1.1 Customs classification (HS code)

other unit)

3. Commercial description of third country materials

4. Anticipated annual quantity of third country materials to
used

Customs classification (H. S. code)

5. Value of third country materials

6. Value of finished products

7. Origin of third country materials

8. Reasons why the rule of origin for the finished product can
be fulfilled

9. Commercial description of materials originating
the ACP States, EC or OCT to be used

10. Anticipated annual quantity of ACP, EC or

OCT materials to be used

11. Value of ACP, EC or OCT materials

12. Working or processing carried out in the EC

or OCT on third country materials without obtaining origin

13. Duration requested for derogation

from............................... to...................................

14. Detailed description of working and processing

15. Capital structure of the firm concerned

16. Amount of investments made/foreseen

17. Staff employed/expected

18. Value added by the working or

20. Possible developments to overcome the need

processing in the ACP States:

for a derogation

18.1 Labour:

19. Other possible sources of supply for materials

21. Observations

288

NOTES

1.

2.

If the boxes in the form are not sufficient to contain all relevant information, additional
pages may be attached to the form.
In this case, the mention "see annex" shall be
entered in the box concerned.

If possible, samples or other illustrative material (pictures, designs, catalogues, etc) of
the final product and of the materials should accompany the form.

3.

A form shall be completed for each product covered by the request.

Boxes 3,4,5,7:

"third country" means any country which is not an ACP or
Community State or OCT.

Box 12:

Box 13:

Box 18:

Box 19:

Box 20:

If third country materials have been worked or processed in the
Community or in the OCT without obtaining origin, before being
further processed in the ACP State requesting the derogation, indicate
the working or processing carried out in the Community or OCT.

The dates to be indicated are the initial and final one for the
the

period in which EUR 1 certificates may be issued under
derogation.

Indicate either the percentage of added value in respect of the
ex-works price of the product or the monetary amount of added-value
for unit of product.

If alternative sources of material exist, indicate here what they
are and, if possible, the reasons of cost or other reasons why they are
not used.

Indicate

suppliers'
differentiation which make the derogation necessary for only a limited
period of time.

investments

possible

further

or

289

ANNEX IV

CONCERNING THE CONDITIONS FOR ENTRY INTO THE COMMUNITY OF
PRODUCTS NOT ORIGINATING IN THE OCT, BUT WHICH ARE IN FREE
CIRCULATION IN THE OCT, AND METHODS OF
ADMINISTRATIVE COOPERATION

Article 1

Direct transport

1. The arrangements provided for under the provisions of Article 39 of the Decision apply
only to products, satisfying the requirements of this Annexe, which are transported directly
between the territory of the OCT and the Community without entering any other territory.
However, products constituting one single consignment may be transported through territory
other than that of the OCT with, should the occasion arise, transhipment or temporary
warehousing in such territory, provided that they remain under the surveillance of the customs
authorities in the country of transit or warehousing and do not undergo operations other than
unloading, reloading or any operation designed to preserve them in good condition.

2. Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied to
the responsible customs authorities by the production of:

(a)

a single transport document covering the passage from the exporting country or
territory through the country of transit; or

(b)

a certificate issued by the customs authorities of the country of transit:

(i)

giving an exact description of the products;

(ii)

stating the dates of unloading and reloading of the products and, where
applicable, the names of the ships, or the other means of transport used;

(iii)

certifying the conditions under which the products remained in the transit
country; or

(c)

failing these, any substantiating documents.

Article 2

Export Certificate EXP

1. Evidence of compliance with the provisions of Article 39 of the Decision shall be given by
an Export Certificate EXP, a specimen of which appears in Annex 1 to this Annex.

2. An Export Certificate EXP shall be issued by the customs authorities of the exporting OCT
on application having been made in writing by the exporter or, under the exporter's
responsibility, by his authorized representative.

3. For this purpose, the exporter or his authorized representative shall fill out the Export
Certificate EXP, a specimen of which appears in Annex 1. These forms shall be completed in
they shall be
accordance with the provisions of this Annexe. If they are hand-written,

290

completed in ink in printed characters. The description of the products must be given in the
leaving any blank lines. Where the box is not
box reserved for this purpose without
completely filled, a horizontal line must be drawn below the last line of the description, the
empty space being crossed through.

Applications for Export Certificates EXP must be preserved for at
customs authorities of the exporting country or territory.

least

three years by

4. The exporter applying for the issue of an Export Certificate EXP shall be prepared to
submit at any time, at the request of the customs authorities of the exporting OCT where the
Export Certificate EXP is issued, all appropriate documents proving that the products to be
exported are such as to qualify for the issue of an Export Certificate EXP.

Exporters are required to keep the supporting documents referred to in this paragraph for at
least three years.

5. An Export Certificate EXP shall be issued by the customs authorities of the exporting OCT
if the products concerned can be considered as having been in free circulation and fulfil the
other provisions of Article 39 of the Decision.

6. The issuing customs authorities shall take any steps necessary to verify the correctness of
the application. For this purpose, they shall have the right to call for any evidence and to carry
out any inspection of the exporter's accounts or any other check considered appropriate. The
issuing customs authorities shall also ensure that the form referred to in paragraph 3 is duly
completed. In particular, they shall check whether the space reserved for the description of the
products has been completed in such a manner as to exclude all possibility of fraudulent
additions.

7. The date of issue of the Export Certificate EXP shall be indicated in Box 11 of the
certificate.

8. An Export Certificate EXP shall be issued by the customs authorities and made available to
the exporter as soon as actual exportation has been effected or ensured.

Article 3

Issue of a duplicate Export Certificate EXP

1. In the event of theft, loss or destruction of an Export Certificate EXP, the exporter may
apply to the customs authorities which issued it for a duplicate made out on the basis of the
export documents in their possession.

2. The duplicate issued in this way must be endorsed with one of the following words:

"DUPLIKAT",
ΑΝΤΙΓΡΑΦΟ
"

"DUPLICATA",

"DUPLICATO",

"DUPLICAAT",

"DUPLICATE",

", "DUPLICADO", "SEGUNDA VIA", "KAKSOISKAPPALE",.

3. The endorsement referred to in paragraph 2 shall be inserted in the "Remarks" box 7 of the
duplicate Export Certificate EXP.

4. The duplicate, which must bear the date of issue of the original Export Certificate EXP,
shall take effect as from that date.

291

Article 4

Validity of Export Certificates EXP

1. An Export Certificate EXP shall be valid for four months from the date of issue in the
exporting OCT, and must be submitted within the said period to the customs authorities of the
importing country.

2. Exports Certificate EXP which are submitted to the customs authorities of the importing
country after the final date for presentation specified in paragraph 1 may be accepted for the
purpose of applying the arrangements, where the failure to submit these documents by the
final date set is due to exceptional circumstances.

3. In other cases of belated presentation, the customs authorities of the importing country may
accept the Export Certificates EXP where the products have been submitted before the said
final date.

Article 5

Submission of Export Certificates EXP

Export Certificates EXP shall be submitted to the customs authorities of the importing
country in accordance with the procedures applicable in that country. The said authorities may
require a translation of Export Certificates EXP and may also require the import declaration to
be accompanied by a statement from the importer to the effect that the products meet the
conditions required for the implementation of the Decision.

ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

Article 6

Mutual assistance

1. The OCT shall send to the Commission specimens of the stamps used together with the
addresses of the customs authorities competent to issue Export Certificates EXP if they differ
from those included in Article 31 of Annexe VI. The OCT shall carry out the subsequent
verification of Export Certificates EXP.

Export Certificates EXP shall be accepted for the purpose of applying the arrangements
provided for from the date the information is received by the Commission.

The Commission shall send this information to the customs authorities of the Member States.

2. In order to ensure the proper application of this Annexe , the OCT and the Community
shall assist each other, through the competent customs administrations,
in checking the
authenticity of the Export Certificates EXP and the correctness of the information given in
these documents.

292

Article 7

Verification of Export Certificates EXP

1. Subsequent verifications of Export Certificates EXP shall be carried out at random or
whenever the customs authorities of the importing country have reasonable doubts as to the
authenticity of such documents or the compliance with the provisions of Article 39 of the
Decision.

2. For the purposes of implementing the provisions of paragraph 1, the customs authorities of
the importing country shall return the Export Certificate EXP, the relevant commercial
documents or a copy of these documents, to the customs authorities of the exporting OCT
giving, where appropriate, the reasons for the enquiry. Any documents and information
obtained suggesting that the information given on the Export Certificate EXP is incorrect
shall be forwarded in support of the request for verification.

3. The verification shall be carried out by the customs authorities of the exporting OCT. For
this purpose, they shall have the right to call for any evidence and to carry out any inspection
of the exporter's accounts or any other check considered appropriate.

4. If the customs authorities of the importing country decide to suspend the application of the
arrangements to the products concerned while awaiting the results of the verification, release
of the products shall be offered to the importer subject to any precautionary measures judged
necessary.

5. The customs authorities requesting the verification shall be informed of the results of this
verification as soon as possible. These results must indicate clearly whether the documents are
authentic and whether the products concerned can be considered as having fulfilled the
provisions of Article 39 of the Decision.

6. If in cases of reasonable doubt there is no reply within ten months of the date of the
verification request or if the reply does not contain sufficient information to determine the
authenticity of the document in question or that the products to be exported are such as to
qualify for the issue of an Export Certificate EXP, the requesting customs authorities shall,
except in exceptional circumstances, refuse application of the arrangements.

7. Where the verification procedure or any other available information appears to indicate that
the provisions of this Annexe are being contravened, the OCT on its own initiative or at the
request of the Community shall carry out appropriate enquires or arrange for such enquiries to
be carried out with due urgency to identify and prevent such contraventions. The Commission
may participate in the enquiries.

8. Where disputes arise in relation to the verification procedures which cannot be settled
between the customs authorities requesting a verification and the customs authorities
responsible for carrying out this verification or where they raise a question as to the
interpretation of this Annexe , they shall be submitted to the Customs Code Committee set up
by Council Regulation (EEC) No 2454/93 (as last amended by Regulation (EC) 1662/1999).

9. In all cases the settlement of disputes between the importer and the customs authorities of
the importing country shall be under the legislation of the said country.

293

Article 8

Penalties

Penalties shall be imposed on any person who draws up, or causes to be drawn up, a
document which contains incorrect information to enable products to be accepted as eligible
for the arrangements provided for.

Article 9

Free zones

1. The OCT and the Member States shall take all necessary steps to ensure that products
traded under cover of an Export Certificate EXP and which in the course of transport use a
free zone situated in their territory, are not substituted by other goods and do not undergo
handling other than normal operations designed to prevent their deterioration.

Article 10

Annexes

The Annexes to this Annexe shall form an integral part thereof.

294

Annex I to ANNEX IV

EXP.1 transhipment certificate

1

2

3

The EXP.1 transhipment certificate shall be made out on the form of which a
specimen appears in this Annex. This form shall be printed in one or more of the
languages in which the Decision is drawn up. Certificates shall be made out in one
of these languages and in accordance with the provisions of the domestic law of the
exporting State if they are hand-written, they shall be completed in ink and in capital
letters.

Each certificate shall measure 210 x 297mm, a tolerance of up to plus 8mm or minus
5mm in the length may be allowed. The paper used must be white, sized for writing,
not containing mechanical pulp and weighing not less than 60g/m2.
It shall have a
printed green guilloche pattern background making any falsification by mechanical
or chemical means apparent to the eye.

The competent authorities of the exporting OCT may reserve the right to print the
certificates themselves or may have them printed by approved printers. In the latter
case each certificate must include a reference to such approval. Each certificate must
bear the name and address of the printer or a mark by which the printer can be
identified. It shall also bear a serial number, either printed or not, by which it can be
identified.

295

.

Exporter (name, full address, country)

EXP.1

No A

000.000

TRANSHIPMENT CERTIFICATE

See notes overleaf before completing this form

2. Certificate used in preferential trade between

. Consignee (name, full address, country) (Optional)

and

(insert appropriate countries, groups of countries or territories)

4. Country,

group

of
countries or territory in
which the products are
considered as originating

5. Country,

group

of
countries or territory of
destination

.

Transport details (Optional)

7. Remarks

.

Item number; Marks and numbers; Number and kind of package (1); Description of goods

9. Gross mass (kg)
or other measure
(litres, m3, etc.)

10.Invoices

(Optional)

1. CUSTOMS ENDORSEMENT

Declaration certified

Export document (2)

Form ........................................................ No......................

Customs office...................................................................

Issuing country or territory

. ...........................................................................................

Date ....................................................................................

Stamp

. ...........................................................................................

(Signature)

12. DECLARATION BY THE EXPORTER

the undersigned, declare that

I,
the goods
described above meet the conditions required
for the issue of this certificate.

Place and date........................................................

................................................................................

(Signature)

(1) If goods are not packed, indicate number of articles or state “In bulk” as appropriate

(2) Complete only where the regulations of the exporting country or territory require

296

13. Request for verification, to:

14. Result of verification

Verification carried out shows that this certificate (*)

was issued by the customs office indicated and that the informat
contained therein is accurate.

does not meet the requirements as to authenticity and accuracy (
remarks appended).

Verification of the authenticity and accuracy of this certificate is requested

..............................................................................................................................

........................................................................................................................

(Place and date)

(Place and date)

.................................................................

Stamp

.................................................................

Stamp

.............................. ..........................................

.............................. ..........................................

.............................. (Signature)

.............................. (Signature)

________________________

(*) Insert X in the appropriate box.

NOTES

1.

2.

3.

Certificates must not contain erasures or words written over one another. Any
alterations must be made by deleting the incorrect particulars and adding any necessary
corrections. Any such alteration must be initialled by the person who completed the
certificate and endorsed by the customs authorities of the issuing country or territory.

No spaces must be left between the items entered on the certificate and each item must
be preceded by an item number. A horizontal line must be drawn immediately below
the last item. Any unused space must be struck through in such a manner as to make
any later additions impossible.

Goods must be described in accordance with commercial practice and with sufficient
detail to enable them to be identified.

297

.

Exporter (name, full address, country) (Optional)

EXP.1

No A

000.000

APPLICATION FOR A TRANSHIPMENT CERTIFICATE

See notes overleaf before completing this form

2. Application for a certificate to be used in preferential trade

between

. Consignee (name, full address, country) (Optional)

and

(insert appropriate countries or groups of countries or territories)

4. Country,

group

of
countries or territory in
which the products are
considered as originating

5. Country,

group

of
countries or territory of
destination

.

Transport details (Optional)

7. Remarks

.

Item number; Marks and numbers; Number and kind of packages (*); Description of goods

9. Gross mass (kg)
or other measure
(litres, m3, etc.)

10.Invoices

(Optional)

(1) If goods are not packed, indicate number of articles or state “In bulk” as appropriate

298

DECLARATION BY THE EXPORTER

I, the undersigned, exporter of the goods described overleaf,

DECLARE that the goods meet

the conditions required for the issue of the

attached certificate;

SPECIFY as follows the circumstances which have enabled these goods to meet

the above conditions:

......................................................................................................................................

......................................................................................................................................

......................................................................................................................................

......................................................................................................................................

SUBMIT the following supporting documents (1):

......................................................................................................................................

......................................................................................................................................

......................................................................................................................................

......................................................................................................................................

UNDERTAKE to submit, at

the request of the appropriate authorities, any
supporting evidence which these authorities may require for the
purpose of issuing the attached certificate, and undertake, if required,
to agree to any inspection of my accounts and to any check on the
processes of manufacture of the above goods, carried out by the said
authorities;

REQUEST the issue of the attached certificate for these goods.

.....................................................................................

(Place and date)

.....................................................................................

(1)

For example,
import documents, movement certificates, manufacturer's
declarations, etc. referring to the products used in manufacture or to the goods
re-exported in the same state.

299

(Signature)

300

ANNEX V

MOVEMENTS OF HAZARDOUS WASTE
AND RADIOACTIVE WASTE

Keenly aware of the specific risks attaching to radioactive waste, the Member States and the
relevant authorities of the OCT will refrain from any practice of discharging such waste
which would encroach upon the sovereignty of States or threaten the environment or public
health in other countries. They attach the greatest importance to developing international
cooperation to protect the environment and public health against such risks. They accordingly
affirm their determination to play an active part in the work being done in the IAEA to
produce an internationally approved code of good practice.

Until such time as a more precise definition is formulated in that framework, the term
'radioactive waste' will be taken to mean any material for which no further use is envisaged
and which contains or is contaminated by radionuclides of which the levels of radioactivity or
the concentrations exceed the limits which the Community has set itself for protecting its own
population in Article 4(a) and (b) of Directive 80/836/Euratom,24 as last amended by
Directive 84/467/Euratom.25 As regards levels of radioactivity, these limits range from 5 ×
103 becquerel for nuclides of very high radiotoxicity to 5 × 106 becquerel for those of low
radiotoxicity. As regards concentrations, these limits are 100 Bq.g-1 and 500 Bq.g-1 for solid
natural radioactive substances.

24

25

OJ L 246, 17.9.1980, p. 1.
OJ L 265, 5.10.1984, p. 4.

301

ANNEX VI

EURO-INFO CORRESPONDENCE CENTRES (EICC)

Tasks of the EICC

In respect of the OCTs the tasks of the Euro-info Correspondence Centres (EICC) shall be to:

– disseminate Community information to OCT firms,

– gather and transmit to the Euro-info Centres (EIC) information from the OCTs which may

be of use to 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 OCTs.

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

Tools and services

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

(a)

(b)

(c)

(d)

(e)

(f)

(g)

documentation: a list of documents selected to form a basic library collection (to be
acquired); terms and cost of acquisition;

a specific software program (to be acquired) for creating and managing dossiers on
specific issues and conducting searches on previous dossiers and existing document
and databases;

databases: list of databanks available (for which there is a charge); terms and cost of
connection;

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 (for all these activities,
travel and accommodation expenses to be borne by the EICC);

access to information officers of the central administration for replies to requests for
information on Community-related matters;

access to the capitalisation database via the VANS:
contains questions and answers on mainly Community matters.

this EIC-network database

electronic mail: the EICCs shall have access to the electronic mail system,
particular the EIC network's own environment.

in

302

Establishment procedures

1.

2.

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 [..].

An agreement providing for, inter alia, sufficient human, material and financial
resources shall be concluded between the EICC and the Commission.

Criteria for selecting the host structure

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

– experience of the applicant structure in assisting and advising businesses, a business-

oriented attitude to small and medium-sized enterprises,

– representativeness in respect of the 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,

– 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.

303