2002/306/EC: Decision No 1/2002 of the EC/Denmark-Faroe Islands Joint Committee of 20 March 2002 on the introduction of Article 20a "Accounting segregation" in Protocol 3, concerning the definition of the concept of "originating products" and methods of administrative cooperation
Date: 2002-03-20
Institutions: EC–Denmark-Faroe Islands Joint Committee
Subjects: administrative cooperation, customs regulations, management accounting, originating product

L 104/44

EN

Official Journal of the European Communities

20.4.2002

DECISION No 1/2002 OF THE EC/DENMARK-FAROE ISLANDS JOINT COMMITTEE

of 20 March 2002

on the introduction of Article 20a ‘Accounting segregation’ in Protocol 3, concerning the definition
of the concept of ‘originating products’ and methods of administrative cooperation

(2002/306/EC)

THE JOINT COMMITTEE,

Having regard to the Agreement between the European
Community, of the one part, and the Government of Denmark
and the Home Government of the Faroe Islands, of the other
part (1), hereinafter referred to as ‘the Agreement’ and in partic-
ular Article 34(1) thereof,

Whereas:

(1)

(2)

(3)

Protocol 3 to the Agreement, concerning the definition
of the concept of ‘originating products’ and methods of
administrative cooperation entered into force on 1
January 1997.

In the context of trade relations established on the basis
of the Agreement, the need to provide for a system of
accounting segregation has arisen.

The ‘accounting segregation’ method should be author-
ised under certain conditions, where considerable cost or
material difficulties arise in keeping separate stocks of
identical and interchangeable originating and non-
originating materials to be incorporated into a product
for exportation under preferential treatment. The author-
isations should be subject to monitoring and withdrawal
in the case of improper use, by the competent customs
authorities,

HAS DECIDED AS FOLLOWS:

Article 1

In Protocol 3 on the definition of the concept of ‘originating
products’ and methods of administrative cooperation set out in
the Agreement, the following Article shall be inserted:

‘Article 20a
Accounting segregation

1. Where considerable cost or material difficulties arise
in keeping separate stocks of originating and non-origin-
ating materials which are identical and interchangeable, the

customs authorities may, at the written request of those
concerned, authorise the so-called accounting segregation
method to be used for managing such stocks.

2.
This method must be able to ensure that the number
of products obtained which could be considered as origin-
ating is the same as that which would have been obtained if
there had been physical segregation of the stocks.

The customs authorities may grant such author-

3.
isation, subject to any conditions deemed appropriate.

4.
This method is recorded and applied on the basis of
the general accounting principles applicable in the country
where the product was manufactured.

The beneficiary of this facilitation may issue or apply
5.
for proofs of origin, as the case may be, for the quantity of
products which may be considered as originating. At the
request of the customs authorities, the beneficiary shall
provide a statement of how the quantities have been
managed.

6.
The customs authorities shall monitor the use made
of the authorisation and may withdraw it at any time
the
whenever
authorisation in any manner whatsoever or fails to fulfil
any of the other conditions laid down in this Protocol.’

the beneficiary makes improper use of

Article 2

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

It shall apply from 1 January 2002.

Done at Tórshavn, 20 March 2002.

For the Joint Committee

The President

Herluf SIGVALDSSON

(1) OJ L 53, 22.2.1997, p. 2.