2001/277/EC: Decision No 1/2001 of the Association Council, Association between the European Communities and their Member States, of the one part, and the Republic of Estonia, of the other part of 24 January 2001 amending Protocol 3 to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Estonia, of the other part
Date: 2001-01-24
Institutions: EC–Estonia Association Council
Subjects: Estonia, association agreement (EU), import, originating product, protocol to an agreement

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II

(Acts whose publication is not obligatory)

COUNCIL

DECISION No 1/2001 OF THE ASSOCIATION COUNCIL, ASSOCIATION BETWEEN THE EURO-
PEAN COMMUNITIES AND THEIR MEMBER STATES, OF THE ONE PART, AND THE REPUBLIC
OF ESTONIA, OF THE OTHER PART

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

of 24 January 2001

(2001/277/EC)

THE ASSOCIATION COUNCIL,

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

Whereas the definition of the term ‘originating products’ in Protocol 3 needs to be amended to ensure the
proper operation of the extended system of cumulation which permits the use of materials originating in
the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania,
Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (hereinafter referred to as ‘the EEA’),
Iceland, Norway and Switzerland;

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

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

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

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

HAS DECIDED AS FOLLOWS:

Article 1

Protocol 3 concerning the definition of the concept of ‘originating products’ and methods of administrative
cooperation is hereby amended as follows:

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

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

(1) OJ L 68, 9.3.1998, p. 3.
(2) Protocol 3 was replaced by Association Council Decision No 2/98 (OJ L 208, 24.7.1998, p. 53).

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

‘Article 3

Cumulation in the European Community

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

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

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

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

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

Article 4

Cumulation in Estonia

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

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

Products, originating in one of the countries referred to in paragraph 1, which do not undergo any

3.
working or processing in Estonia, retain their origin if exported into one of these countries.

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

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

(*) The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting

Party to the Agreement on the European Economic Area.

(**) Cumulation as provided for in this Article does not apply to materials originating in Turkey

which are mentioned in the list at Annex V to this Protocol.’;

3. Article 12 shall be replaced by the following:

‘Article 12

Principle of territoriality

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

Except as provided for in Articles 3 and 4, where originating goods exported from the
they must be considered as non-originating,

2.
Community or Estonia to another country return,
unless it can be demonstrated to the satisfaction of the customs authorities that:

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

(b) they have not undergone any operation beyond that necessary to preserve them in good condi-

tion while in that country or while being exported.

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

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

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

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

and

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

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

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

The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the
in Annex II or which can be considered sufficiently worked or

6.
conditions set out
processed only if the general values fixed in Article 6(2) are applied.

in the list

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The provisions of paragraphs 3 and 4 shall not apply to products coming under Chapters 50

7.
to 63 of the Harmonised System.

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

4.

5.

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

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

the date ‘31 December 1998’ shall be replaced by ‘31

6.

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

7.

in Annex I, Note 5.2:

(a) between the indents

— ‘artificial man-made filaments’ and
— ‘synthetic man-made staple fibres of polypropylene’,

the following shall be inserted:
— ‘current conducting filaments’;

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

8. Annex II shall be amended as follows:

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

‘HS heading No

Description of product

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

(1)

ex 2207

(2)

(3) or (4)

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

Manufacture:
— using materials not clas-
sified in heading Nos
2207 or 2208’

(b) the entry for Chapter 57 shall be replaced by:

‘Chapter 57

Carpets and other textile
floor coverings

— of needleloom felt

— of other felt

Manufacture from (1):
— natural fibres

or

— chemical materials or textile pulp

However:
— polypropylene filament of heading No

5402

— polypropylene fibres of heading Nos

5503 or 5506

— polypropylene filament tow of heading

No 5501,

of which the denomination in all cases of a
fibre is less than 9
single filament or
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

Manufacture from (1):
— natural fibres not carded or combed or
otherwise processed for spinning,
or

— chemical materials or textile pulp

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— Other

chemical materials or textile pulp (1):
— coir or jute yarn (a)
— synthetic or artificial filament yarn,
— natural fibres, or
— man-made staple fibres not carded or
combed or otherwise processed for
spinning

— jute fabric may be used as backing

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

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

‘7006

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

— glass plate

substrate

coated
with dielectric thin film, semi-
conductor grade,
in accord-
ance with SEMII standards (1)

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

— other

Manufacture
heading No 7001

from materials of

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

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

‘7601

Unwrought aluminium

Manufacture in which:
— all the materials used are clas-
sified within a heading other
than that of the product; and
— the value of all the materials
used does not exceed 50 % of
the
ex-works price of
the
product

or
Manufacture by thermal or elecro-
from unalloyed
lytic
aluminium or waste and scrap of
aluminium’

treatment

9. the following Annex shall be added:

‘Annex V

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

Chapter 1

Chapter 2

Chapter 3

0401 to 0402

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ex 0403-

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

0404 to 0410

0504

0511

Chapter 6

0701 to 0709

ex 0710-

ex 0711

0712 to 0714

Chapter 8

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

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

in brine,

ex Chapter 9

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

Chapter 10

Chapter 11

Chapter 12

ex 1302

Pectic substances, pectinates and pectates

1501 to 1514

ex 1515

ex 1516

ex 1517 and
ex 1518

ex 1522

Chapter 16

1701

ex 1702

1703

1801 and 1802

ex 1902

ex 2001

2002 and 2003

ex 2004

ex 2005

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

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

Margarines,

imitation lard and other prepared edible fats

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

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

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

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

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

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

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

Flavoured and coloured sugar, syrups

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

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

ex 2006 and 2007

ex 2008

2009

ex 2106

2204

2206

ex 2207

ex 2208

2209

Chapter 23

2401

4501

5301 and 5302’

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

It shall apply as from 1 January 1999.

Article 2

Done at Brussels, 24 January 2001.

For the Association Council

The President

T. H. ILVES