Proposal for a COUNCIL DECISION on the association of the overseas countries and territories with the European Union (&quot;Overseas Association Decision&quot;)
Date: 2012-07-16
Institutions: European Commission
Subjects: ACP countries, association agreement (EU), competitiveness, development aid, economic development, export aid, goods and services, investment aid, overseas countries and territories, social development, sustainable development

EUROPEAN COMMISSION 

Brussels, 16.7.2012  
COM(2012) 362 final 

2012/0195 (CNS) 

Proposal for a 

COUNCIL DECISION 

on the association of the overseas countries and territories with the European Union 
("Overseas Association Decision") 

{SWD(2012) 193 final} 
{SWD(2012) 194 final} 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

1.1. 

General context 

OCTs have been associated to the European Union since the entry into force in 1958 of the 
Treaty of Rome. They are islands located in the Atlantic, Antarctic, Arctic, Caribbean, Indian 
Ocean  and  Pacific  regions.  They  are  not  sovereign  countries  but  depend  on  four  Member 
States of the EU: Denmark, France, the Netherlands and the United Kingdom. The association 
of the OCTs  with  the  Union flows  from  the  constitutional relations  that these countries  and 
territories have with the four Member States. 

In  general,  OCTs  have  wide  ranging  autonomy,  covering  areas  such  as  economic  affairs, 
employment  market,  public  health,  home  affairs  and  customs.  Defence  and  foreign  affairs 
usually remain within the remit of the Member States. The OCTs are not part of the Union's 
customs territory and are outside the Internal Market. The Union legislation therefore does not 
apply. 

Being  nationals  of  the  EU  Member  States  to  which  their  countries  and  territories  are 
constitutionally  linked,  OCT  inhabitants  hold  EU  citizenship.  The  OCTs'  total  population 
represents only 0.02% of the world population (1.2 million).Their total land mass represents 
only 80,000 sq km1. 

Since  the  adoption  in  2001  of  the  current  Overseas  Association  Decision,  the  regional  and 
international  environments  in  which  OCTs  operate  has  considerably  changed.  New  political 
priorities  have  emerged  at  European  and  international  level,  (such  as  environment,  climate 
change,  sustainable  management  of  natural  resources)  as  well  as  changes  in  global  trade 
patterns.  With  the  Europe  2020  Agenda,  the  European  Commission  proposed  a  strategy2 
articulated around three priorities: smart growth, sustainable growth and inclusive growth as a 
response to the economic and financial crisis. 

For  their  part,  the  OCTs  continue  to  face  economic  and  social  problems  and/or  struggle  to 
found  their  economies  on  a  sustainable  basis.  They  are  confronted  with  a  number  of 
difficulties linked to their fragile environments and the need to secure the environmental pillar 
of sustainable development. 

increasing 

The  main  challenge  that  OCTs  face  consists  in  putting  their  economies  and  societies  on  a 
sustainable  development  path  by 
their 
vulnerability, increasing environmental resilience, and cooperating with their neighbours and 
integrating in the regional and/or world economies, where this is possible. For the Union, the 
challenge resides in supporting the OCTs with the accomplishment of these goals and of the 
purpose  of  the  association  as  defined  in  Article  198  of  the  Treaty  on  the  functioning  of  the 
European Union, via a framework that is adapted to OCT needs, realities, particularities and 
diversity. 

their  competitiveness, 

reducing 

1 

2 

Not  counting  Greenland  (the  world's  largest  island)  and  the  British  Antarctic  Territory,  which 
respectively account for 2.2 million and 1.7 million sq. km. 
Communication  COM(2010)  2020  final  of  3  March  2010  "Europe  2020  –  A  strategy  for  smart, 
sustainable and inclusive growth" 

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1.2. 

Existing provisions 

The  current  rules  and  procedures  of  the  EU-OCT  association  are  laid  down  in  Decision 
2001/822/EC  of  the  Council  of  27  November  2001  on  the  association  of  the  overseas 
countries  and  territories  with  the  European  Community,  (OJ  L  314/1,  30.11.2001),  as 
amended  by  Decisions  2007/249/EC  (OJ  L  109/33,  26.04.2007)  and  XXXXXXX  (Decision 
regarding Saint-Barthélemy). 

1.3. 

Consistency with other EU policies 

"Europe 2020" provides the benchmark against which the coherence of EU policies and the 
promotion  of  EU  values,  standards  and  interest  need  to  be  checked3.  Coherence  with  the 
Europe 2020 strategy should be sought as far as its smart growth and sustainable priorities are 
concerned,  promoting  support  to  research,  innovation  as  well  as  to  information  and 
communication  technologies  (ICT)  and  sustainable  growth  capacities  as  catalysts  for  socio-
economic development. 

The  2014-2020  OAD  will  play  an  important  role  in  that  respect.  Indeed,  the  idea  of 
establishing  ‘centres  of  experience  and  expertise’  could  relate  to  the  implementation  and 
promotion  of  high  standards,  including  international  standards,  e.g.  in  the  fields  of 
environment  and  food  safety  and  consumer  health.  The  OCTs  are  all  characterised  by  rich 
biodiversity. The sustainable use and protection of this biodiversity would benefit from better 
scientific  documentation  and  access  to  research  and  innovation  results.  Likewise,  the 
implementation  of  international  standards  within  the  area  of  food  safety,  animal  and  plant 
health could facilitate trade between OCTs and their trading partners, including EU Member 
States.  The  Union's  commitment  to  environmental  standards  as  well  as  its  role  as  a  global 
player in the fight against climate change could be of great value to both the Union and the 
OCTs. The Commission believes that biodiversity and other natural assets of the OCTs could 
be  the  object  of  a  strengthened  cooperation  in  the  field  of  research,  innovation  and 
conservation.  A  partnership  in  the  area  of  environment  could  be  of  mutual  interest  to  both 
parties. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

throughout 

The  revision  of  the  Overseas  Association  Decision  has  been  the  subject  of  various 
stakeholders'  consultations 
include  public 
consultations,  but  also  regular  ad  hoc  meetings  between  the  OCTs,  the  Member  States  to 
which they are constitutionally linked and the European Commission, as well as dialogue in 
the  context  of  the  instances  foreseen  under  Article  7  of  the  current  Overseas  Association 
Decision: annual fora , regular trilateral meetings and partnership working parties dedicated to 
environmental issues, trade issues, regional integration of the OCTs, financial services in the 
OCTs and the future EU-OCT relations. 

the  period  2008-2011.  These 

2.1. Consultations 

The outcome of stakeholders' consultation highlighted the following issues: 

3 

COM (2010) 2020, 3 March 2010. 

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In their replies to the 2008 Green Paper4, stakeholders called for a change of the association's 
current  focus  on  poverty  reduction  and  development  cooperation  to  a  more  reciprocal 
relationship focused on the sustainable development of the OCTs (i.e. a development model 
that  conciliates  economic  activities  and  social  well-being  in  the  long  run  while  preserving 
natural  resources  and  ecosystems  for  future  generations),  which  could,  at  the  same  time, 
support the promotion of EU values and standards in the wider world.  

This was highlighted during the interventions at the stakeholders' conference in October 2008 
which gathered over 100 interested parties from the OCTs' authorities, their Member States, 
the Union's institutions and bodies and civil society at large.  

The Council of the European Union5 also welcomed and expressed support to the change of 
paradigm. 

In a Joint Position Paper6 adopted in February 2011, the OCTs and their Member States called 
for  a  better  recognition  of  the  OCTs  as  part  of  the  European  family,  an  association  further 
based  on  the  mutual  interests  of  the  Union  and  the  OCTs  and  a  focus  on  potential  and 
vulnerabilities  of  the  OCTs.  The  document  also  calls  the  attention  to  the  necessity  to 
recognize and take the interests of the OCTs in the following areas: erosion of preferences and 
trade related issues, and building capacity.  

It  was  also  underlined  that  issues  relating  to  environment,  climate  change  and  disaster  risk 
reduction  should  constitute  a  priority  for  the  future  EU-OCT  relations:  sustainable  use  and 
protection  of  OCTs  biodiversity  and  natural  resources,  environmental  security,  energy  and 
renewable  energy,  ecosystems  conservation,  fight  against  climate  change  impacts  and 
mitigation,  preparedness  and  response  to  disasters,  invasive  species,  sustainable  fisheries. 
Stakeholders7 called for an enhanced cooperation of the Union with the OCTs and outermost 
regions in the field of conservation of biodiversity and ecosystems services. 

Solidarity between the Union and OCTs should be based on the fact that OCT inhabitants, as 
nationals  of  the  related  Member  States,  were  also  EU  citizens.  It  was  underlined  that  by 
helping  OCTs  to  strengthen  their  competitiveness  and  resilience,  reduce  their  vulnerability 
and implant themselves in their regional environment, the Union would actually be investing 
in strategic outposts able to promote Union’s values in the world.  

2.2. Collection and use of expertise: 

The  EU-OCT  association  was  analysed  in  various  studies,  commissioned  either  by  the 
Commission or by the OCTs. These studies covered topics such as the trade regime contained 
in the OAD, the OCTs' environmental profiles, OCT statistical systems and capacities, OCT 
disaster preparedness as well as the cooperation of the Union with the OCTs during the period 

4 
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COM(2008) 383 of 25 June 2008 
Conclusions 17801/09 of 22 December 2009 
See: 
http://www.octassociation.org/Visual%20Identity%20and%20Publications/Reports/joint%20position%
20280211.pdf 
In  July  2008  a  conference  on  "The  European  Union  and  its  Overseas  Entities:  Strategies  to  counter 
Climate Change and Biodiversity Loss" was held in La Réunion Island gathered representatives of the 
European Commission, European Parliament, public authorities and civil stakeholders from the OCTs, 
outermost regions of the EU and EU Member States. 

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1999-20098. The latter was presented and discussed with the stakeholders on the occasion of 
the annual OCT-EU Forum in March 2011.  

The  main  recommendations  of  the  different  studies  with  regard  to  the  Union’s  financial 
assistance to OCTs were the following: 

(1) 

(2) 

(3) 

to  incorporate  the  political  priorities  that  emerged  in  the  last  decade  in  the 
programming of EU-OCT cooperation; 

to  adapt  rules  and  procedures  of  the  programming  of  financial  assistance  so  as  to 
reduce response time of assistance; 

to  promote  cooperation  between  OCTs  and  their  neighbouring  countries,  amongst 
others through a better coordination of the respective financial instruments available 
to OCTs, ACP States and the outermost regions; 

(4) 

to facilitate access to Union’s horizontal programmes for which OCTs are eligible. 

The  main  recommendations  of  the  different  studies  with  regard  to  trade  and  trade  related 
aspects of the Overseas Association Decision were the following: 

(1) 

(2) 

(3) 

(4) 

(5) 

to  adapt  the  arrangements  concerning  trade  in  goods  so  as  to  take  structural 
difficulties better into account, amongst others by introducing more flexible rules of 
origin for OCT goods exports to the Union; 

to  allow  for  the  possibility  for  OCTs  to  engage  in  more  favourable  trade  relations 
with other OCTs and developing countries, so as to reflect the increasing importance 
that trade in services has gained in world and regional economies in the last decade 
and to facilitate regional integration in this area; 

to  foresee  support  and  capacity  building  for  the  development  of  OCT  trade  related 
policies as well as to assist OCTs in regulatory reform;  

to  support  dissemination  within  OCTs  of  information  regarding  the  conditions 
defining access to the EU market; 

to maintain the direct dialogue between the European Commission and the OCTs on 
e.g.  trade  and  trade  related  issues  and  ensure  that  OCT  interests  are  taken  into 
account in the context of EU trade negotiations. 

With  regard  to  environmental  issues,  the  different  studies  recommended  that  the  Union  and 
the OCTs cooperate more in the following areas: 

(1) 

(2) 

(3) 

8 

climate change, 

natural disasters, 

threats to wildlife and biodiversity, habitat destruction, 

ECO Consult et al., Region Level Evaluation: Overseas Countries and Territories (OCT), contract N° 
EVA 2004/geo-acp, Final Report, July 2011 (hereafter ECO conult et al. (2011)). 

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(4) 

(5) 

(6) 

illegal, unregulated and unreported fishing, 

waste management, 

water supply and sanitation. 

2.3. Impact assessment 

In the impact assessment three policy options were examined in detail.  

Policy option 1: Status Quo Renewal of the current Overseas Association Decision without 
any changes. 

Under  Policy  option  1,  the  structure  and  the  content  of  the  currently  into  force  Association 
Decision would be maintained for the period 2014-2020. 

Maintaining  the  status  quo  could  legitimately  be  considered  as  a  valid  option  for  the  future 
EU-OCT  association  as  current  arrangements  were  found  to  have  been  beneficial  for  the 
OCTs' social and economic development, amongst others by providing free access to the large 
EU  market  and  the  possibility  of  support  for  exploiting  the  export  opportunities  this 
represents.  The  EU-OCT  cooperation  in  the  period  1999-2009  was  considered  by  external 
studies  to  have  been  coherent  with  both  the  association's  objectives  and  the  OCTs'  political 
priorities  and  concluded  that  no  marked  contradictions  or  inconsistencies  had  occurred 
between EU-OCT cooperation and other Union policies. Though consistent with Part Four of 
the  TFEU  and  its  Preamble,  option  1  would  not  accomplish  the  shared  ambition  of  OCTs, 
their Member States and the Commission to reshape and modernise the EU-OCT relations on 
a  reciprocal  basis.  Rather  than  modernising  the  relations  and  introducing  a  more  reciprocal 
the 
partnership, 
donor/beneficiary rationale which has traditionally underpinned EU-OCT relations would be 
maintained. 

interests  could  be  better 

in  which  mutual 

into  account, 

taken 

OCT goods and services access to the Union would remain subject to the existing rules and 
would  lead  to  loss  of  market  access  for  the  OCTs  (due  to  preference  erosion).  This  would 
have a negative impact on the social and economic position of OCTs. 

Policy  option  2:  Modernisation  of  the  Overseas  Association  Decision  and  alignment  with 
EU policy framework 

Option  2  would  modernise  and  align  the  OAD  with  the  Union  policy  framework.  Its 
objectives and principles would be revised, taking into account the political orientations of the 
Council  of  the  EU,  the  requests  the  OCTs  and  their  Member  States  expressed  on  different 
occasions as well as the results of external studies. 

Policy  option  2  would  enhance  an  EU-OCT  cooperation  based  on  the  mutual  interests  the 
stakeholders  identified  throughout  the  consultation  process.  It  would  also  promote  a  more 
efficient  cooperation  through  a  more  focus  and  coordinated  action  between  the  Union,  the 
OCTs  and  their  Member  States.  Areas  of  cooperation  recognized  as  priorities  by  the  OCTs 
would  receive  an  enhanced  support  from  the  Union  (e.g.:  conservation  of  biodiversity  and 
ecosystem services, research and innovation). 

Under  policy  option  2,  the  Union  would  support  the  OCTs  to  address  sensitive  issues 
undermining their sustainable development, such as climate change which they cannot tackle 

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alone. For such challenges, insular territories cannot develop successful measures alone, they 
need to find partners and be integrated in global responses. 

Policy  option  2  would  offer  to  the  OCTs  a  modernised  trade  regime  with  the  Union  that 
would 1) entail improved rules and origins and 2) guarantee a treatment for trade in services 
and establishment that would not be less favourable than the one given by the Union to other 
third partners, which is not the case under the current framework.  

Policy option 2 would be consistent with Part Four of the TFEU and its Preamble. It would 
also  translate  the  political  orientations  of  the  Council  of  the  EU  on  the  three  objectives  of 
competitiveness, resilience and cooperation. Under policy option 2, the association framework 
would take into account recent policy developments and would take stock of discussions that 
emerged in the last decade. Policy coherence would be ensured under this option and would 
be  strengthened.  The  social,  economic  and  environmental  impacts  would  be  more  positive 
than under options 1. 

Policy option 2 would better reflect the notion of mutual interests than it is currently the case. 
It would allow the integration of Union policy agenda priorities in the relations between the 
Union  and  the  OCTs  and  the  EU  added  value  as  a  global  partner  in  emerging  global  issues 
would be enhanced. In doing so, the OCTs better promote Union's values and standards in the 
wider world. 

Policy option 3: Several partnership agreements concluded 

Option  3  would  entail  a  diversification  of  EU-OCT  relations.  In  the  area  of  trade  and 
economic cooperation two approaches would be adopted. Certain OCTs could be included in 
other  EU  bilateral  trade  arrangements,  namely  Economic  Partnership  agreements  (EPAs)  or 
FTAs, where relevant and possible. For the remaining OCTs, an OCT trade regime equivalent 
to policy option 1 or 2 would be foreseen under the association framework. Whilst this would 
not  cover  the  trade  and  economic  cooperation  with  those  OCTs  which  would  have  been 
included  in  other  trade  agreements,  it  could  cover  cooperation  with  all  OCTs  in  all  other 
areas. An alternative option would consist in having all cooperation with OCTs that would fall 
under an EPA or FTA take place in the context of these agreements. This would include that 
financial assistance would also take place outside of the association framework. 

By integrating or associating OCTs to other trade agreements, some of the objectives of the 
EU-OCT association could be met. However, this would be done outside of the association as 
such.  Furthermore,  option  3  may  not  be  fully  adapted  to  the  needs  and  realities  of  most  or 
even  all  OCTs.  There  may  be  negative  impacts  also  for  the  Union  itself  if  significant 
compensation  is  required  in  order  to  incorporate  the  OCTs  into  existing  agreements.  By 
integrating  OCTs  in  other  trade  agreements  the  associated  countries  and  territories  with 
constitutional links to Member States would legally and effectively cease to be OCTs. As the 
implementation of policy option 3 may result in the Union having to work out solutions for 
setting up different types of relations with each of the OCTs, the legal process would be very 
complicated  and  would  need  to  be  reiterated  for  every  OCT.  It  would  likely  increase 
confusion  as  regards  to  their  status  and  that  of  their  inhabitants.  Certain  rules  currently 
contained or being considered in the different agreements may not apply to OCT inhabitants 
to  the  extent  that  they  are  EU  citizens.  Thus,  the  implementation  of  policy  option  3  may 
amplify  the  tension  that  exists  between  the  territorial  and  personal  scope  of  the  TFEU.  The 
confusion might be further increased by the provision of different types of cooperation under 
different kinds of frameworks. 

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3. 

LEGAL ELEMENTS OF THE PROPOSAL 

3.1. 

Legal basis 

The  EU-OCT  association  is  based  on  Part  Four  of  the  Treaty  on  the  Functioning  of  the 
European Union. The detailed rules and procedures of the OCT-EU association are laid down 
in Decisions of the Council on the basis of Article 203 of the Treaty on the Functioning of the 
European  Union,  which  foresees  that  such  acts  are  adopted  through  a  special  legislative 
procedure: 

3.2. 

Subsidiarity 

The detailed arrangements of the provisions in Part Four of the TFEU necessarily have to take 
place at Union level as the purpose of the association, the social and economic development 
and close economic ties between the OCTs and the Union as a whole, cannot be achieved via 
actions  at  Member  State  level.  Moreover,  with  regard  to  the  OCT  trade  regime,  Member 
States'  actions  would  not  be  possible  as  the  common  commercial  policy  falls  within  the 
domain of the Union's exclusive competence (Part Five, Title II of the TFEU). 

The approach towards cooperation with the OCTs contained in the Commission's legislative 
proposal respects the principles of partnership, complementarity and subsidiarity. It proposes 
that the Union financial assistance to OCTs be based on programming documents, for which 
the competent OCT authorities and the Commission would be jointly responsible and which 
would define the cooperation strategies between the Union and the OCTs. These cooperation 
strategies would be based on the development objectives, strategies and priorities adopted by 
the  competent  OCT  authorities.  Activities  would  be  decided  upon  in  close  consultation 
between the Commission, the OCTs and their Member States, in full respect of the respective 
institutional, legal and financial powers of each of the partners. 

Without  prejudice  to  the  Commission's  powers,  the  OCT  authorities  would  have  primary 
responsibility  for  implementing  the  operations  agreed  upon  under  the  cooperation  strategy. 
The  Commission  would  be  responsible  for  establishing  the  general  rules  and  conditions 
regarding these programmes and projects. 

3.3. 

Proportionality 

The  objectives  of  the  association,  as  mentioned  in  Articles  198  and  199,  call  for  a 
comprehensive  partnership,  which  comprises  an 
trade 
arrangements and covers many areas of cooperation as well as the basic principles governing 
Union  financial  assistance  to  OCTs.  This  calls  for  a  wide  ranging  and  far  reaching  legal 
instrument. 

institutional  framework  and 

The  objectives  set  out  by  the  Treaty  project  themselves  into  the  long  term.  This  calls  for  a 
Decision  of  which  the  duration  is  sufficiently  long.  As  during  the  2014-2020  Multiannual 
Financial Framework OCTs will benefit from both the 11th European Development Fund and 
from the Union's general budget, an alignment of the duration of the Decision on that of the 
Multiannual Financial Framework is appropriate. 

The  Commission  proposal  puts  forward  an  approach  that  is  flexible  and  tailored  to  the 
situation  of  each  OCT.  It  is  proposed  that  the  effectiveness  of  the  EU-OCT  cooperation  be 
monitored through audits, ex ante, mid-term and ex post evaluations.  

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4. 

BUDGETARY IMPLICATION 

In the Commission Communication9 on "Preparation of the multiannual financial framework 
regarding  the  financing  of  Union  cooperation  for  African,  Caribbean  and  Pacific  States  and 
Overseas  Countries  and  Territories  for  the  2014-2020  period  (11th  European  Development 
Fund)", an amount of EUR 343.4 million is foreseen for cooperation with the OCTs. 

The amount of EUR 343.4 million shall be allocated according to a Council Decision to be 
taken before 31 December 2013 for implementing the Association with the OCTs, of which 
EUR 338.4 million to finance territorial and regional programmes, and EUR 5 million in the 
form  of  an  allocation  to  the  EIB  to  finance  interest  subsidies  and  technical  assistance  in 
accordance with the Overseas Association Decision. 

9 

COM(2011) 837 of 7 December 2011 

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2012/0195 (CNS) 

Proposal for a 

COUNCIL DECISION 

on the association of the overseas countries and territories with the European Union 
("Overseas Association Decision") 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 203 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the European Parliament 

Acting in accordance with a special legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

Council  Decision  2001/822/EC  of  27  November  2001  on  the  association  of  the 
overseas  countries  and  territories  with  the  European  Community10  applies  until  31 
December  2013.  Pursuant  to  Article  62  thereof,  the  Council  must  establish  the 
provisions to be laid down for the subsequent application of the principles set out in 
Articles 198 to 202 of the Treaty on the functioning of the European Union. 

In its conclusions of 22 December 2009on the EU’s relations with Overseas Countries 
and Territories (OCTs)11, the Council invited the Commission to submit a legislative 
proposal  to  revise  the  Overseas  Association  Decision  before  July  2012.  The  Council 
endorsed the Commission's proposal to base the future partnership between the Union 
and 
three  key  pillars  comprising  enhancing  competitiveness, 
strengthening  resilience  and  reducing  vulnerability  and  promoting  cooperation  and 
integration between the OCTs and other partners and neighbouring regions. 

the  OCTs  on 

The  Commission  held  a  public  consultation  between  June  and  October  2008  and 
proposed a number of orientations for a new association decision. The results of this 
consultation  were  synthesised  in  a  Communication  entitled  'Elements  for  a  new 
partnership  between  the  European  Union  and  the  Overseas  Countries  and  Territories 
(OCTs)'12.  

10 
11 
12 

OJ L 314, 30.11.2001, p. 1.. 
Council document number: 17801/09. 
COM(2009) 623 final 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

The  Treaty  and  its  secondary  legislation  do  not  automatically  apply  to  the  OCTs, 
except  for  some  provisions  explicitly  establishing  the  contrary.  Although  not  third 
countries, the OCTs do not form part of the single market and must comply with the 
obligations  imposed  on  third  countries  in  respect  of  trade,  notably  rules  of  origin, 
health and plant health standards and safeguard measures. 

The special relationship between the Union and the OCTs should move away from a 
classic  development  cooperation  approach  to  a  reciprocal  partnership  to  support  the 
OCTs'  sustainable  development. Moreover, the solidarity  between the Union and the 
OCTs  should  be  based  on  their  unique  relationship  and  their  belonging  to  the  same 
'European family'. 

The  contribution  of  civil  society  to  OCT  development  can  be  enhanced  by 
strengthening civil society organisations in all spheres of cooperation. 

Given  the  OCTs  geographical  position,  cooperation  between  them  and  their 
neighbours,  despite  the  different  status  vis-à-vis  Union  law  of  each  actor  in  a  given 
geographical area, shall be pursued in the interests of all sides, and with a particular 
focus  on  areas  of  common  interest  and  the  promotion  the  Union's  values  and 
standards. 

The  Union  shall  support  the  policies  and  strategies  of  an  OCT  in  an  area  of  mutual 
interest on the basis of the specific need, potential and choice of the OCT concerned. 

The  association  should  aim  at  ensuring  the  conservation,  restoration  and  sustainable 
use  of  biological  diversity  and  ecosystem  services  as  a  key  element  for  the 
achievement of sustainable development.  

(10)  The  OCTs  are  host  to  wide  terrestrial  and  marine  biodiversity.  Climate  change  can 
impact  on  OCTs'  natural  environment  and  constitutes  a  threat  undermining  their 
sustainable  development.  Actions  in  the  fields  of  conservation  of  biodiversity  and 
ecosystem  services,  disaster  risk  reduction,  sustainable  management  of  natural 
resources  and  promotion  of  sustainable  energy  will  contribute  to  adaptation  and 
mitigation of climate change in the OCTs. 

(11)  The  significant  role  which  OCTs  could  play  in  contributing  to  the  Union's 
commitments  under  Multilateral  Environmental  Agreements  should  be  recognised  in 
the relations between the Union and the OCTs. 

(12) 

It  is  important  to  support  the  OCTs  in  their  efforts  in  becoming  less  dependent  on 
fossil  fuels,  with  a  view  to  reducing  their  vulnerability  to  fuels  access  and  price 
volatility,  thus  making  their  economy  more  resilient  and  less  vulnerable  to  external 
shocks. 

(13)  The Union may assist the OCTs to reduce their vulnerability to disasters and support 

the actions and measures they undertake for this purpose. 

(14)  The effects of the OCTs' remoteness constitute a barrier to their competitiveness and 

thus it is important to improve the accessibility of the OCTs. 

(15)  The  Union  and  the  OCTs  recognise  the  importance  of  education  as  a  lever  for  the 

OCTs' sustainable development.  

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(16)  Further economic and social development of the OCTs should be mutually supportive 
and aim at strengthening competitiveness of the OCTs' economy, as well as attaining 
social  welfare  and  inclusion,  in  particular  as  regards  vulnerable  groups  and  persons 
with  disabilities.  To  that  end,  cooperation  between  the  Union  and  OCTs  should 
include  exchange  of  information  and  best  practice  in  the  relevant  areas,  including 
skills  development  and  social  protection,  and  promote  the  rights  of  persons  with 
disabilities,  bearing  in  mind  the  principles  of  the  UN  Convention  on  the  Rights  of 
Persons  with  Disabilities.  Moreover,  the  association  between  the  Union  and  OCTs 
should  contribute  to  the  promotion  of  decent  work,  including  best  practice  in  social 
dialogue,  as  well  as  respect  for  core  labour  standards,  equal  opportunities,  non-
discrimination and accessibility in the OCTs and regions where they are located. 

(17)  The  incidence  of  communicable  diseases  in  the  OCTs,  such  as  dengue  in  the 
Caribbean  and  the  Pacific  and  Chikungunya  in  the  Indian  Ocean  region,  can  have 
significant negative health and economic impacts. Beyond decreasing the productivity 
of  affected  populations,  epidemics  in  OCTs  are  likely  to  heavily  impact  tourism, 
which  is  a  mainstay  of  many  OCTs’  economies.  With  large  numbers  of  tourists  and 
migrant  workers  travelling  to  OCTs,  they  are  vulnerable  to  importation  of  infectious 
diseases.  Inversely,  the  large  flow  of  people  travelling  back  from  OCTs  could  be  a 
vector of introduction of communicable diseases in Europe. Ensuring a “safe tourism” 
is therefore a critical factor for the sustainability of the OCT  economies that heavily 
rely on tourism. 

(18)  The  association  between  the  Union  and  the  OCTs  shall  take  into  account  and 

contribute to the preservation of the cultural diversity and identity of OCTs. 

(19)  The  Union  recognises  the  importance  to  develop  a  more  active  partnership  with  the 
OCTs as regards to good governance and the fight against organised crime, trafficking 
in human beings, terrorism and corruption. 

(20)  Trade  and  trade-related  cooperation  between  the  Union  and  the  OCTs  should 
contribute  to  the  objective  of  sustainable  development  in  economic  development, 
social development and environmental protection dimensions.  

(21)  Global  changes,  reflected  in  the  continuing  process  of  trade  liberalisation,  broadly 
implicate the Union, the principal trading partner of the OCTs, their ACP neighbours 
and other economic partners.  

(22)  The OCTs are fragile island environments requiring adequate protection, including in 
respect  of  waste  management.  In  respect  of  radioactive  waste,  Article  198  of  the 
Euratom  Treaty  and  the  related  secondary  legislation  provide  for  this,  except  with 
regard to Greenland, to which the Euratom Treaty does not apply. For other waste, it 
should be specified which Union rules are to apply in respect of the OCTs. 

(23)  This  Decision  should  provide  for  more  flexible  rules  of  origin,  including  new 
possibilities  of  cumulation  of  origin.  Cumulation  should  be  possible  not  only  with 
OCTs  and  Economic  Partnership  Agreement  (EPA)  countries,  but  under  certain 
conditions,  also  with  products  originating  in  countries  with  which  the  Union  is 
applying a free trade agreement, and for products entering the Union duty-free quota-

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free  under  the  Union's  General  System  of  Preferences13,  also  subject  to  conditions. 
These conditions are necessary to prevent trade circumvention and ensure the proper 
functioning of the cumulation arrangements. 

(24)  The procedures for certification of OCT origin should be updated, in the interests of 
the operators and administrations concerned in the OCTs. Provisions on administrative 
cooperation between the Union and the OCTs should also be updated accordingly.  

(25)  Methods  of  administrative  cooperation  and  a  possibility  to  withdraw  temporarily 
preferential treatment in respect of all or of certain products originating in the OCTs in 
cases of fraud, irregularities or systematic failure to comply with the rules concerning 
the origin of the products, or failure to provide administrative cooperation have to be 
established.  In  addition,  sufficiently  detailed  safeguard  and  surveillance  provisions 
should be laid down. This should allow OCTs and Union competent authorities as well 
as economic operators to rely on clear and transparent rules and procedures. Finally, it 
is  a  common  interest  to  ensure  the  proper  application  of  the  procedures  and 
arrangements  that  allow  the  OCTs  to  export  goods  to  the  EU  duty-free  quota-free. 
Therefore,  it  is  appropriate  to  include  a  provision  clarifying  the  consequences  of 
administrative errors in the application of such procedures and arrangements leading to 
losses  for  the  Union  budget  in  terms  of  import  duties.  Such  a  provision  should 
explicitly confirm that the financial burden of such losses incurred is not to be borne 
by the Union budget but by the Member State that has special relations with the OCT 
whose  authorities  have  committed  the  error.  That  provision  should  not  distinguish 
between goods coming from OCTs and goods coming from third countries and should 
cover both situations. 

(26)  Taking into account the aims of integration and the developments of global trade in the 
area  of  services  and  establishment,  it  is  necessary  to  support  the  development  of 
services markets and investment possibilities by improving the market access of OCT 
services and investment to the Union market. In this regard the Union should offer to 
OCTs  the  best  possible  treatment  offered  to  any  other  trading  partner  through 
comprehensive  most  favoured  nation  clauses,  while  ensuring  more  flexible 
possibilities for trade relations for OCTs by limiting the treatment offered by OCTs to 
the Union to what has been offered to other major trading economies. 

(27) 

Intellectual property rights are a crucial component for stimulating innovation and are 
a  tool  to  promote  economic  and  social  development.  They  benefit  countries  by 
allowing  them  to  protect  intellectual  creations  and  assets.  Their  protection  and 
enforcement  helps  to  facilitate  trade,  growth  and  foreign  investment,  as  well  as  to 
combat  the  health  and  safety  risks  of  counterfeit  products.  OCTs  can  benefit  from  a 
policy on intellectual property rights, in particular in the context of the preservation of 
biodiversity and the development of technology. 

(28)  Sanitary  and  phyto-sanitary  measures  and  technical  barriers  to  trade  may  have  an 
impact  on  trade  and  require  cooperation.  Trade  and  trade-related  cooperation  also 
should  address  competition  policies  and  intellectual  property  rights,  which  affect  the 
equitable distribution of the gains of trade. 

13 

Council Regulation (EC) No 732/2008 of 22 July applying a scheme of generalised tariff preferences 
from 1 January 2009 and amending Regulations (EC) No 552/97, (EC) No 1933/2006 and Commission 
Regulations (EC) No 1100/2006 and (EC) No 964/2007 (OJ L 211, 6.8.2008, p. 1). 

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(29)  To ensure that OCTs may participate under the best conditions in the Union's internal 
market  as  well  as  regional,  sub-regional  and  international  markets,  it  is  important  to 
develop  the  capacity  of  OCTs  in  relevant  areas.  These  include  the  development  of 
human  resources  and  their  skills,  the  development  of  small  and  medium  enterprises, 
the diversification of economic sectors and the implementation of an appropriate legal 
framework in order to achieve a business climate conducive to investment.  

(30)  Cooperation  in  the  area  of  financial  services  between  the  Union  and  OCTs  should 
contribute to build a safer, sounder, more transparent financial system that is essential 
to enhance global financial stability and to underpin sustainable growth. Efforts in that 
area  should  focus  towards  convergence  with  internationally  agreed  standards  and 
approximation of OCT legislation with Union acquis on financial services. Adequate 
attention should be paid to strengthening administrative capacity of OCT authorities, 
including supervisors. 

(31)  Financial  assistance  to  the  OCTs  should  be  allocated  on  the  basis  of  uniform, 
transparent  and  effective  criteria,  taking  into  account  the  needs  and  performances  of 
the OCTs. Such criteria should take into account the size of the population, the level of 
Gross  Domestic  Product  (GDP),  the  level  of previous  allocations  from  the  European 
Development Fund (EDF) and constraints due to the geographical isolation of OCTs. 

(32) 

In  the  interest  of  efficiency,  simplification  and  recognition  of  the  management 
capacities of the OCT authorities, the financial resources granted to the OCTs should 
be managed on the basis of a reciprocal partnership. Moreover, the authorities of the 
OCTs should assume the responsibility for the formulation and implementation of the 
policies agreed upon between the parties as cooperation strategies. 

(33)  The  procedures  regarding  financial  assistance  provided  for  in  Articles  9  and  82 
delegate  the  main  responsibility  for  11th  EDF  programming  and  implementing 
cooperation to the OCTs in particular. Cooperation will  be conducted  predominantly 
in  conformity  with  OCT  territorial  regulations  and  will  underpin  support  for  the 
monitoring,  evaluation  and  audit  of  the  operations  programmed.  In  addition,  it  is 
necessary to clarify that OCTs are eligible to different sources of funding provided for 
in Article 76. 

(34) 

In  order  to  adopt  detailed  rules  for  the  preparation  of  the  programming  documents, 
their follow-up, audit, evaluation, review and implementation, as well as for reporting 
and financial corrections, the power to adopt acts in accordance with Article 290 of the 
Treaty  on  the  Functioning  of  the  European  Union  should  be  delegated  to  the 
Commission  in  respect  of  Part  IV  of  this  Decision.  In  order  to  take  into  account 
technological  developments  and  changes  in  customs  legislation,  the  power  to  adopt 
acts  amending  the  Appendices  to  Annex  VI,  in  accordance  with  Article  290  of  the 
Treaty  on  the  Functioning  of  the  European  Union,  should  also  be  delegated  to  the 
Commission. It is of particular importance that the Commission carry out appropriate 
consultations during its preparatory work, including at expert level. The Commission, 
when preparing and drawing up delegated acts, should ensure a simultaneous, timely 
and appropriate transmission of relevant documents to the Council.  

(35) 

[The arrangements for association laid down in this Decision should not be applied to 
Bermuda in accordance with the wishes of the Government of Bermuda.] 

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(36)  By  virtue  of  this  Decision,  the  Council  should  be  able  to  produce  an  innovative 
response  to  all  the  factors  mentioned  above,  which  is  both  consistent  and  tailored  to 
the variety of situations.  

(37)  This Decision should replace Decision 2001/822/EC, 

HAS ADOPTED THIS DECISION:  

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Part One 

General provisions of the Association of the Overseas 
Countries and Territories with the Union 

Chapter 1 

General provisions 

Article 1 

Purpose 

1. 

2. 

1. 

2. 

3. 

4. 

The  association  of  the  overseas  countries  and  territories  (OCTs)  with  the  Union 
(hereinafter  referred  to  as  the  "association")  constitutes  a  partnership,  based  on 
Article 198 of the Treaty on the functioning of the European Union, to support the 
OCTs' sustainable development as well as to promote the values and standards of the 
Union in the wider world.  

The  partners  to  the  association  are  the  Union,  the  OCTs  and  the  Member  States  to 
which they are linked. 

Article 2 

Objectives, principles and values 

The  association  between  the  Union  and  the  OCTs  shall  be  based  on  objectives, 
principles  and  values  shared  by  the  OCTs,  the  Member  States  to  which  they  are 
linked and the Union. 

The  association  shall  pursue  the  overall  objectives  laid  down  in  Article  199  of  the 
Treaty,  by  the  enhancement  of  the  OCT's  competitiveness, the strengthening of the 
OCTs'  resilience,  the  reduction  of  their  vulnerability  and  the  promotion  of 
cooperation between them and other partners. 

In pursuing those objectives, the association shall respect the fundamental principles 
of liberty, democracy, human rights and fundamental freedoms, the rule of law, good 
governance and sustainable development, all of which are common to the OCTs and 
the Member States to which they are linked 

There  shall  be  no  discrimination  based  on  sex,  racial  or  ethnic  origin,  religion  or 
belief, disability, age or sexual orientation in the areas of cooperation referred to in 
this Decision. 

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5. 

6. 

The partners recognise each other's rights to determine their sustainable development 
policies  and  priorities,  to  establish  their  own  levels  of  domestic  environmental  and 
labour protection, and to adopt or modify accordingly the relevant laws and policies, 
consistently  with  commitment  to  the  internationally  recognised  standards  and 
agreements. In doing so, they shall strive to ensure high levels of environmental and 
labour protection. 

In  implementing  this  Decision,  the  partners  shall  be  guided  by  the  principles  of 
transparency,  subsidiarity  and  the  need  for  efficiency  and  shall  equally  address  the 
three  pillars  of  OCTs'  sustainable  development:  economic  development,  social 
development and environmental protection. 

Article 3 

Management of the association 

Management  of  the  association  shall  be  conducted  by  the  Commission  and  the  OCT 
authorities  and,  where  necessary,  by  the  Member  State  to  which  the  OCT  is  linked,  in 
accordance with respective institutional, legal and financial competences. 

Article 4 

Territorial application 

The association shall apply to the OCTs listed in Annex II to the Treaty [except for Bermuda]. 

Article 5 

Mutual interests, complementarity and priorities 

1. 

2. 

The  association  is  the  framework  for  policy  dialogue  and  cooperation  on  issues  of 
mutual interest. 

Priority shall be given to cooperation in areas of mutual interest, such as: 

(a) 

the  economic  diversification  of  OCT  economies,  including  their  further 
integration in world and regional economies; 

(b) 

the promotion of green growth; 

(c) 

the  sustainable  management  of  natural  resources,  including  the  conservation 
and sustainable use of biodiversity and ecosystem services; 

(d) 

the adaptation to and mitigation of impacts of climate change; 

(e) 

the promotion of disaster risk reduction; 

(f) 

the promotion of research, innovation and scientific cooperation activities; 

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3. 

1. 

2. 

1. 

2. 

3. 

(g) 

the promotion of social, cultural and economic exchanges between the OCTs, 
their neighbours and other partners. 

Cooperation  in  the  areas  of  mutual  interest  aims  at  the  promotion  of  OCT  self-
reliance  and  of  the  development  of  OCTs'  capacities  to  formulate,  implement  and 
monitor strategies and policies set out in paragraph 2. 

Article 6 

Promotion of the association 

With an aim to strengthen the relations between themselves, the Union and the OCTs 
endeavour  to  make  the  association  known  among  their  citizens,  in  particular  by 
promoting  the  development  of  the  links  and  cooperation  between  the  authorities, 
academic community, civil society and businesses of OCTs on the one hand and their 
interlocutors within the Union on the other. 

The Member States shall support the OCTs' efforts to strengthen and promote their 
relations with the Union as a whole. 

Article 7 

Regional cooperation, regional integration and cooperation with other partners 

Subject to Article 3 of this Decision, the association aims at supporting the OCTs in 
their  efforts  to  take  part  in  relevant  international,  regional  and/or  sub-regional 
cooperation  initiatives  as  well  as  regional  or  sub-regional  integration  processes,  in 
line  with  their  own  aspirations  and  in  accordance  with  objectives  and  priorities 
defined by the competent OCT authorities. 

To this end, the Union and the OCTs may exchange information and best practices or 
establish any other form of close cooperation and coordination with other partners in 
the  context  of  the  OCTs'  participation  in  regional  and  international  organisations, 
where appropriate by means of international agreements. 

The association aims at supporting cooperation between the OCTs and other partners 
in the areas of cooperation set out in Parts Two and Three of this Decision. In that 
respect,  the  objective  of  the  association  is  to  promote  the  cooperation  between  the 
OCTs  and  the  outermost  regions,  referred  to  in  Article  349  of  the  Treaty,  their 
neighbouring African, Caribbean and Pacific (ACP) and non-ACP States. In order to 
achieve that objective, the Union shall improve coordination and synergies between 
cooperation programmes supported by different EU financial instruments. 

4. 

The  support  to  OCTs'  participation  in  relevant  regional  integration  organisations 
shall focus in particular on: 

(a) 

capacity  building  of  relevant  regional  organisations  and  institutions  of  which 
OCTs are members; 

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(b) 

regional  or  sub-regional  initiatives  such  as  the  implementation  of  sectoral 
reform policies relating to the areas of cooperation identified in Parts Two and 
Three of this Decision; 

(c) 

the  awareness  and  knowledge  of  the  OCTs  on  the  impacts  of  regional 
integration processes in different areas; 

(d)  OCT participation in the development of regional markets within the context of 

regional integration organisations; 

(e) 

cross-border investment between OCTs and their neighbours. 

Article 8 

Specific treatment 

1. 

2. 

3. 

The  association  shall  take  into  account  the  diversity  of  the  OCTs  in  terms  of 
economic  development  and  capacity  to  fully  benefit  from  regional  cooperation  and 
regional integration referred to in Article 7. 

A specific treatment shall be established for isolated OCTs. 

In order to enable isolated OCTs to overcome structural and other obstacles to their 
development, this  specific  treatment  shall take account of their specific difficulties, 
inter  alia,  when  determining  the  volume  of  financial  assistance  and  the  conditions 
attached thereto. 

4. 

The OCTs which shall be considered to be isolated are listed in Annex I. 

Chapter 2 

Actors of Cooperation  

Article 9 

General approach 

1. 

2. 

The  association  shall  be  based  on  a  broad  dialogue  and  consultations  on  issues  of 
mutual interest between the OCTs, the Member States to which they are linked and 
the Commission, and, if appropriate, the European Investment Bank (EIB).  

The  OCTs  shall  organise,  where  appropriate,  a  dialogue  and  consultations  with 
authorities and bodies such as: 

(a) 

the competent local and other public authorities; 

(b) 

the economic and social partners; 

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(c) 

any other appropriate body representing civil society, environmental partners, 
non-governmental  organisations,  and  bodies  responsible  for  promoting  of 
equality between men and women. 

Article 10 

Actors of cooperation 

1. 

Actors of cooperation in the OCTs shall include: 

(a) 

the OCTs' governmental authorities; 

(b) 

the local authorities within the OCTs; 

(c)  public  service  providers  and  civil  society  organisations,  such  as  social, 
business,  employers'  and  trade  union  associations,  and  local,  national  or 
international non-governmental organisations; 

(d) 

regional and sub-regional organisations. 

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 governmental and 
local authorities referred to in the paragraphs 1(a) and (b). 

Article 11 

Responsibilities of the Non-governmental actors 

Non-governmental  actors  may  play  a  role  in  the  exchange  of  information  and 
consultations  concerning  the  cooperation,  and  in  particular  for  the  preparation  and 
implementation of cooperation assistance, projects or programmes. They may receive 
a  delegation  of  financial  management  powers  for  implementing  such  projects  or 
programmes for the purpose of supporting local development initiatives. 

Non-governmental  actors  eligible  for  decentralised  management  of  projects  or 
programmes  shall  be  identified  by  agreement  between  the  OCT  authorities,  the 
Commission and the Member State to which the OCT is linked, 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  broad  dialogue  and 
consultations referred to in Article 9. 

The  association  aims  at  contributing  to  the  efforts  of  the  OCTs  to  strengthen  civil 
society  organisations,  concerning  in  particular  their  creation  and  development,  and 
the development of the arrangements necessary for opening their involvement in the 
design, implementation and evaluation of development strategies and programmes.  

2. 

1. 

2. 

3. 

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Chapter 3 

Institutional framework of the Association 

Article 12 

Guiding principles for dialogue 

1. 

2. 

3. 

4. 

The  Union,  the  OCTs  and  the  Member  States  to  which  they  are  linked,  shall 
regularly engage in a comprehensive and political dialogue. 

The dialogue shall be conducted in full compliance with the respective institutional, 
legal and financial powers of the Union, of the OCTs and of the Member States to 
which they are linked. The dialogue shall be conducted in a flexible manner: it may 
be  formal  or  informal,  at  an  appropriate  level  or  format  and  conducted  within  the 
framework referred to in Article 13. 

The dialogue shall enable the OCTs to take a full part in the implementation of the 
association. 

The dialogue shall focus, inter alia, on specific political issues of mutual concern or 
of general significance for the attainment of the objectives of the association. 

Article 13 

Instances of the association 

1. 

The association shall establish the following instances of dialogue: 

(a) 

an OCT-EU forum for dialogue (the OCT-EU Forum), shall meet annually to 
bring  together  OCT  authorities,  representatives  of  the  Member  States  and  the 
Commission. Members of the European Parliament, representatives of the EIB, 
and representatives of the outermost regions shall be associated with the OCT-
EU Forum, where appropriate; 

(b)  on a regular basis, the Commission, the OCTs and the Member States to which 
they are linked shall hold trilateral consultations. These consultations shall be 
organised as a rule four times a year on the initiative of the Commission or at 
the request of the OCTs and of the Member States to which they are linked.  

(c) 

in agreement between the OCTs, the Member States to which they are linked 
and the Commission, working parties, acting in an advisory capacity, shall be 
set up to follow the implementation of the association, in a form appropriate to 
the  issues  to  be  addressed.  These  working  parties  shall  provide  for  technical 
discussions  on  matters  which  are  of  specific  concern  to  the  OCTs  and  the 
Member States to which they are linked, complementing the work that is being 
done in the OCT-EU Forum and / or in the trilateral consultations. 

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2. 

The Commission shall chair the OCT-EU Forum, the trilateral consultations and the 
working parties and shall provide their secretariat. 

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Part Two 

Areas of cooperation for sustainable development in the 
framework of the Association 

Chapter 1 

Environmental issues, climate change and disaster risk reduction 

Article 14 

General objectives and principles 

In the context of the association, cooperation in the field of environment, climate change and 
disaster risk reduction may concern:  

(a) 

(b) 

(c) 

support to the OCTs efforts to define and implement policies, strategies, action plans 
and measures; 

support to OCTs' efforts to integrate in regional networks and initiatives; 

resource  efficiency,  and 
the  promotion  of  sustainable 
encouragement  to  the  decoupling  of  economic  growth  from  environmental 
degradation.  

resource  use  and 

Article 15 

Sustainable management and conservation of biodiversity and ecosystem services 

In  the  context  of  the  association,  cooperation  in  the  field  of  sustainable  management  and 
conservation of biodiversity and ecosystem services may concern: 

(a) 

(b) 

(c) 

the  promotion  of  the  establishment  and  effective  management  of  marine  and 
terrestrial protected areas and improved management of existing protected areas; 

the  encouragement  of  sustainable  management  of  marine  and  terrestrial  resources, 
which  contribute  to  protecting  important  species,  habitats  and  ecosystem  functions 
outside protected areas; 

the  strengthening  of  conservation  and  sustainable  use  of  marine  and  terrestrial 
biodiversity and ecosystems by: 

(i) addressing the wider ecosystem challenge of climate change by maintaining 
healthy, resilient ecosystems and fostering green infrastructure and ecosystem- 

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based  approaches  to  climate  change  adaptation  and  mitigation  which  often 
bring multiple benefits; 

(ii)  strengthening  capacities  at  a  local,  regional  and/or  international  scale,  by 
promoting  exchange of information, knowledge and best practice amongst  all 
landowners,  private  sector, 
stakeholders 
researchers and civil society; 

including  public  authorities, 

(iii) strengthening existing nature conservation programmes and related efforts 
within and outside conservation areas; 

(iv) broadening the knowledge base and filling the knowledge gaps, including 
quantifying the value of ecosystem functions and services; 

(d) 

(e) 

the encouragement and facilitation of regional cooperation in order to address issues 
such as invasive alien species or the impacts of climate change; 

the development of mechanisms to lever resources including payments for ecosystem 
services. 

Article 16 

Sustainable forest management 

In  the  context  of  the  association,  cooperation  in  the  field  of  sustainable  forest  management 
may  concern  the  promotion,  the  conservation  and  sustainable  management  of  forests, 
including  the  use  of  trees  to  conserve  the  environment  for  erosion  protection  and 
desertification control, afforestation and management of timber exports. 

Article 17 

Integrated coastal zone management 

In  the  context  of  the  association,  cooperation  in  the  field  of  integrated  coastal  zone 
management may concern: 

(a) 

(b) 

the support to the efforts of the OCTs towards an effective sustainable management 
of marine and coastal zones in defining strategic and integrated approaches to marine 
and coastal zone planning and management;  

conciliation  of  economic  and  social  activities  such  as  fisheries  and  aquaculture, 
tourism, maritime transports with the potential of marine and coastal zones in terms 
of  renewable  energy,  raw  materials,  whilst  taking  into  account  impacts  of  climate 
change and human activities. 

Article 18 

Maritime Affairs 

In the context of the association, cooperation in the field of maritime affairs may concern: 

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(a) 

(b) 

the strengthening of the dialogue on issues of common interest in that field; 

the  promotion  of  marine  knowledge  and  biotechnology,  ocean  energy,  maritime 
surveillance, coastal zone management and an ecosystem based management; 

(c) 

the promotion of integrated approaches at international level. 

Article 19 

Sustainable management of fish stocks 

1. 

In the context of the association, cooperation in the field of sustainable management 
of fish stocks shall be based on the following principles: 

(a) 

commitment to responsible fisheries management and fishing practices; 

(b) 

refraining from measures or activities that are inconsistent with the principles 
of sustainable exploitation of fisheries resources; 

(c)  without  prejudice 

to  existing  or  future  bilateral  fisheries  partnership 
agreements  between  the  Union  and  the  OCTs,  the  Union  and  the  OCTs  shall 
aim to regularly consult each other on the conservation and management of the 
living  marine  resources  and  to  exchange  information  on  the  ongoing  state  of 
resources  within  the  context  of  the  relevant  instances  of  the  association 
provided for in Article 13. 

2. 

Cooperation in the field referred to in paragraph 1 may concern:  

(a) 

the  active  promotion  of  good  governance,  best  practices  and  responsible 
fisheries management in the conservation and sustainable management of fish 
stocks,  including  fish  stocks  of  common  interest  and  those  managed  by 
regional fisheries management organisations; 

(b)  dialogue  and  cooperation  regarding  the  conservation  of  fish  stocks  including 
measures  to  fight  illegal,  unreported  and  unregulated  fishing  and  effectively 
cooperating  with  and  within  regional  fisheries  management  organisations. 
Dialogue  and  cooperation  shall  include  control  and  inspection  schemes, 
incentives  and  obligations  for  a  more  effective  management  of  fisheries  and 
coastal environments in the long term. 

Article 20 

Sustainable water management 

1. 

In the context of the association, the Union and the OCTs may cooperate in the area 
of  sustainable  water  management  through  water  policy  and  institution  building, 
protecting  water  resources,  water  supplies  in  rural  and  urban  areas  for  domestic, 
industrial  or  agricultural  purposes,  storage,  distribution  and  management  of  water 
resources and waste water management. 

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2. 

3. 

In the field of water supply and sanitation sector, particular attention shall be given to 
access in under-served areas to drinking water supply and sanitation services, which 
contribute directly to human resources development by improving the state of health 
and increasing productivity.  

Cooperation in these areas shall be guided by the principle that the continuing need 
to  extend  the  provision  of  basic  services  in  water  and  sanitation  to  both  urban  and 
rural populations must be addressed in environmentally sustainable ways. 

Article 21 

Waste management 

In the context of the association, cooperation in the field of waste management may concern 
the promotion of the use of the best environmental practice in all operations related to waste 
management, including the reduction of waste, recycling or other processes for the extraction 
of secondary raw materials and the disposal of the waste.  

Article 22 

Sustainable energy 

In the context of the association, cooperation in the field of sustainable energy may concern:  

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

energy  production,  in  particular  the  development,  promotion,  use  and  storage  of 
sustainable energies such as solar, hydro-electric, biomass, geothermal, wave, marine 
and wind energies; 

energy policies and regulations, in particular the formulation of policies and adoption 
of regulations guaranteeing affordable and sustainable energy tariffs; 

energy  efficiency,  in  particular  the  development  and  introduction  of  energy 
efficiency  standards  and  implementation  of  energy  efficiency  measures  in  different 
sectors  (industrial,  commercial,  public  and  households),  as  well  as  accompanying 
educational and awareness activities; 

transport, in particular the development, promotion and use of more environmental-
friendly  public  and  private  transport  means  such  as  hybrid,  electric  or  hydrogen 
vehicles, carpooling and cycling schemes; 

town planning and construction, in particular the promotion and introduction of high 
environment  quality  standards  and  high  energy  performance  in  urban  planning  and 
construction; 

tourism,  in  particular  the  promotion  of  energy  self-sufficient  (renewable  energy 
based) and/or green tourism infrastructures. 

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Article 23 

Climate change 

In the context of the association, cooperation in the field of climate change aims at supporting 
the  initiatives  of  the  OCTs  concerning  adaptation  to  climate  change  and  its  mitigation,  and 
may cover: 

(a) 

(b) 

(c) 

(d) 

the  identification  of  territorial,  regional  and/or  international  actions,  plans,  or 
measures in view of adapting to climate change; 

the  integration  of  adaptation  to  climate  change  and  its  mitigation  in  public  policies 
and strategies; 

the elaboration and identification of statistical data and indicators, essential tools for 
policy making and implementation; 

the promotion of the participation of the OCTs in regional and international instances 
of dialogue in order to foster exchange of knowledge and experience. 

Article 24 

Disaster risk reduction 

In  the  context  of  the  association,  cooperation  in  the  field  of  disaster  risk  reduction  may 
concern: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

the  development  or  perfection  of  systems  of  disaster  prevention  and  preparedness, 
including  prediction  and  early-warning  systems,  with  a  view  to  reducing  the 
consequences of disasters; 

the  development  of  detailed  knowledge  of  the  exposure  to  the  disasters  and  the 
current response capacities in the OCTs and in the regions where they are located; 

the strengthening of existing measures of disaster prevention and preparation at local, 
national and regional levels; 

the improvement of response capacities of the actors concerned, to render them more 
coordinated, effective and efficient; 

the  improvement  of  awareness-raising  and  information  to  the  population  regarding 
the  exposure  to  risks,  prevention,  preparation  and  the  response  in  the  event  of 
disaster, with due attention to the specific needs of persons with disabilities; 

the strengthening of collaboration between key actors involved in civil protection; 

the  promotion  of  the  participation  of  the  OCTs  in  regional,  European  and/or 
international instances in order to allow a more regular exchange of information and 
a closer cooperation among the different partners in the event of disaster. 

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Chapter 2 

Accessibility 

Article 25 

General objectives 

1. 

In the context of the association, cooperation in the field of accessibility aims at: 

(a) 

ensuring greater access of OCTs to global transport networks; 

(b) 

ensuring  greater  access  of  OCTs 
technologies and services. 

to 

information  and  communication 

2. 

Cooperation in the context referred to in paragraph 1 may encompass: 

(a)  policy and institution building; 

(b) 

transport by road, rail, air, sea or inland waterway; 

(c) 

storage facilities in sea- and airports. 

Article 26 

Maritime transport 

1. 

In the context of the association, cooperation in the field of maritime transport aims 
at the development and promotion of cost-effective and efficient maritime transport 
services in the OCTs and may concern: 

(a) 

the promotion of efficient shipment of cargo at economically and commercially 
meaningful rates; 

(b) 

the facilitation of greater OCT participation in international shipping services; 

(c) 

the encouragement of regional programmes; 

(d) 

the support to local private sector involvement in shipping activities; 

2. 

The  Union  and  the  OCTs  shall  promote  shipping  safety,  security  of  crews  and  the 
prevention of pollution. 

Article 27 

Air transport 

In the context of the association, cooperation in the field of air transport may concern: 

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(a) 

(b) 

(c) 

(d) 

the reform and modernisation of the OCT air transport industries; 

the promotion of their commercial viability and competitiveness; 

the facilitation of private sector investment and participation; 

the promotion of exchange of knowledge and good business practice. 

Article 28 

Air transport safety 

In  the  context  of  the  association,  cooperation  in  the  field  of  air  transport  safety  aims  at 
supporting the OCTs in their efforts to comply with the relevant international standards and 
may cover inter alia: 

(a) 

(b) 

the implementation of air navigation safety systems; 

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

(c) 

the development of infrastructures and human resources. 

Article 29 

Information and communication technologies services 

In the context of the association, cooperation in the field of information and communication 
technology  (ICT)  services  aims  at  spurring,  in  the  OCTs,  innovation,  economic  growth  and 
improvements  in  daily  life  for  both  citizens  and  businesses,  including  the  promotion  of 
accessibility  for  persons  with  disabilities.  Cooperation  shall,  in  particular,  be  directed  at 
enhancing  OCTs'  regulatory  capacity  and  may  support  the  expansion  of  ICT  networks  and 
services through the following measures: 

(a) 

(b) 

(c) 

(d) 

creation of a predictable regulatory environment that keeps pace with technological 
developments,  stimulates  growth  and  innovation  and  fosters  competition  and 
consumer protection; 

dialogue on the various policy aspects regarding the promotion and monitoring of the 
information society; 

exchange of information on standards and interoperability issues; 

promotion of cooperation in the field of ICT research and in the field of ICT-based 
research infrastructures; 

(e) 

development of services and applications in domains of high societal impact. 

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Chapter 3 

Research and innovation 

Article 30 

Cooperation in research and innovation 

In  the  context  of  the  association,  cooperation  in  the  field  of  research  and  innovation  may 
cover  science,  technology,  including  information  and  communication  technologies,  with  the 
aim  to  contribute  to  the  OCTs'  sustainable  development  and  to  promote  excellence  and 
industrial competitiveness within OCTs. In particular, cooperation may concern: 

(a) 

(b) 

(c) 

(d) 

dialogue,  coordination  and  creation  of  synergies  between  OCT  and  Union  policies 
and initiatives with regard to science, technology and innovation; 

policy and institutional building within OCTs and concerted actions at local, national 
or  regional  level,  with  a  view  to  developing  science,  technology  and  innovation 
activities and their application; 

cooperation between legal entities from the OCTs, the Union, the Member States and 
the third countries; 

participation of individual OCT researchers, research bodies and legal entities from 
OCTs  in  the  framework  for  cooperation  related  to  research  and  innovation 
programmes within the Union; 

(e) 

training and international mobility of OCT researchers and exchange. 

Chapter 4 

Youth, education, training, health, employment and social policy 

Article 31 

Youth 

1. 

2. 

The Union shall ensure that natural persons from OCTs, as defined in Article 49, can 
participate in initiatives of the Union concerning youth on the same basis as nationals 
of Member States.  

The  association  aims  at  strengthening  the  ties  between  young  people  living  in  the 
OCTs  and  the  Union,  among  others  by  promoting  learning  mobility  of  OCT  youth 
and by fostering mutual understanding between young people. 

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Article 32 

Education and training 

1. 

In  the  context  of  the  association,  cooperation  in  the  field  of  education  and  training 
may cover: 

2. 

3. 

1. 

2. 

(a) 

the  provision  of  high  quality,  inclusive  education  at  primary,  secondary  and 
higher education level and in the area of vocational education and training;  

(b) 

the support to the OCTs in defining and implementing education policies.  

The Union shall ensure that natural persons from the OCTs, as defined in Article 49, 
can participate in education initiatives of the Union on the same basis as nationals of 
Member States.  

The  Union  shall  ensure  that  educational  bodies  and  institutes  from  OCTs  can  take 
part in education related cooperation initiatives of the Union on the same basis as the 
educational bodies and institutes of the Member States. 

Article 33 

Employment and social policy 

The  Union  and  the  OCTs  shall  maintain  dialogue  in  the  area  of  employment  and 
social  policy  in  order  to  contribute  to  the  economic  and  social  development  of  the 
OCTs  and  the  promotion  of  decent  work  in  the  OCTs  and  regions  where  they  are 
located.  Such  a  dialogue  shall  also  aim  at  supporting  the  efforts  of  the  OCTs' 
authorities to develop policies and legislation in this area. 

The  dialogue  shall  mainly  consist  of  exchange  of  information  and  best  practices 
relating to policies and legislation in the area of employment and social policy that 
are of mutual interest to the Union and the OCTs. In this regard, areas such as skills 
development,  social  protection,  social  dialogue,  equal  opportunities,  non-
discrimination  and  accessibility  for  persons  with  disabilities,  health  and  safety  at 
work and other labour standards shall be taken into consideration. 

Article 34 

Public health 

In  the  context  of  the  association,  cooperation  in  the  field  of  public  health  aims  at 
strengthening the OCTs' capacity for surveillance, early detection and response to outbreaks 
of communicable diseases through measures including: 

(a) 

actions to strengthen preparedness and response capacity against cross-border health 
threats  such  as  infectious  diseases  which  should  be  built  on  existing  structures  and 
should target unusual events; 

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(b) 

(c) 

capacity  building  through  strengthening  public  health  networks  at  regional  level, 
facilitating exchange of information among experts and promoting adequate training; 

development  of  tools  and  communication  platforms  as  well  as  e-learning  programs 
adapted to OCTs’ particular needs. 

Chapter 5 

Culture 

Article 35 

Cultural exchanges and dialogue 

1. 

In the context of the association, cooperation in the field of cultural exchanges and 
dialogue may concern: 

(a) 

(b) 

the  self-reliant  development  of  the  OCTs,  this  being  a  process  centred  on 
people themselves and rooted in each people's culture; 

the support to the policies and measures adopted by the competent authorities 
of  OCTs  to  enhance  their  human  resources,  increase  their  own  creative 
capacities and promote their cultural identities; 

(c) 

the participation by the population in the process of development. 

(d) 

the  development  of  a  common  understanding  and  enhanced  exchange  of 
information on cultural and audiovisual matters through dialogue.  

2. 

Through  their  cooperation  the  Union  and  the  OCTs  shall  seek  to  stimulate  cultural 
exchanges between each other through: 

(a) 

cooperation between the cultural and creative sectors of all partners; 

(b)  promotion  of  the  circulation  of  cultural  and  creative  works  and  operators 

between them; 

(c)  policy cooperation in order to foster policy development, innovation, audience 

building and new business models. 

Article 36 

Audiovisual cooperation 

1. 

In  the  context  of  the  association,  cooperation  in  the  audiovisual  field  aims  at 
promoting each other's audiovisual productions and may cover the following actions: 

(a) 

cooperation and exchange between the respective broadcasting industries;  

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(b) 

encouraging exchange of audiovisual works;  

(c) 

(d) 

exchange of information and views on audiovisual and broadcasting policy and 
regulatory framework between competent authorities;  

encouraging  visits  to  and  participation  in  international  events  held  in  each 
other's territory as well as in third countries. 

2. 

Co-produced audiovisual works shall be entitled to benefit from any scheme for the 
promotion of local or regional cultural content set up in the Union, the OCTs and the 
Member States to which they are linked. 

Article 37 

Performing arts  

In the context of the association, cooperation in the field of performing arts may concern: 

(a) 

(b) 

(c) 

the facilitation of increased contacts between practitioners of performing arts in areas 
such  as  professional  exchanges  and  training  including  participation  in  auditions, 
development of networks and promotion of networking.  

the encouragement of joint productions between producers of one or several Member 
States of the Union and one or several OCTs.  

the encouragement of the development of international theatre technology standards 
and  the  use  of  theatre  stage  signs,  including  through  appropriate  standardisation 
bodies.  

Article 38 

Protection of cultural heritage sites and historic monuments  

In the context of the association, cooperation in the field of cultural heritage sites and historic 
monuments  aims  at  allowing  the  promotion  of  exchanges  of  expertise  and  best  practices 
through:  

(a) 

(b) 

(c) 

(d) 

the facilitation of exchanges of experts; 

the collaboration on professional training; 

the awareness of the local public; 

the counselling on the protection of the historic monuments and protected spaces and 
on the legislation and implementation of measures related to heritage, in particular its 
integration into local life. 

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Chapter 6 

Fight against organised crime 

Article 39 

Fight against organised crime, trafficking in human beings, child sexual abuse and sexual 
exploitation, terrorism and corruption 

1. 

In  the  context  of  the  association,  cooperation  in  the  field  of  organised  crime  may 
include: 

(a) 

(b) 

the  development  of  innovative  and  effective  means  of  police  and  judicial 
cooperation,  including  cooperation  with  other  stakeholders  such  as  civil 
society,  in  the  prevention  of  and  fight  against  organised  crime,  trafficking  in 
human  beings,  child  sexual  abuse  and  sexual  exploitation,  terrorism  and 
corruption; 

support  in  order  to  increase  the  efficiency  of  OCTs'  policies  to  prevent  and 
fight against organised crime, trafficking in human beings, child sexual abuse 
and  sexual  exploitation,  terrorism  and  corruption,  as  well  as  the  production, 
distribution  and  trafficking  of  all  kinds  of  narcotic  drugs  and  psychotropic 
substances,  preventing  and  reducing  drug  use  and  drug-related  harms,  taking 
into  account  work  carried  out  in  these  areas  by  international  bodies,  through 
inter alia: 

(i)  training  and  capacity  building  in  preventing  and  fighting  organised  crime, 
including  trafficking  in  human  beings,  child  sexual  abuse  and  sexual 
exploitation, terrorism and corruption; 

(ii)  prevention  including  training,  education  and  health  promotion,  treatment 
and  rehabilitation  of  dependent  drug  users,  including  projects  for  the 
reintegration of dependent drug users into work and social environments; 

(iii) development of effective enforcement measures; 

(iv)  technical,  financial  and  administrative  assistance  on  the  development  of 
effective policies and legislation on trafficking in human beings, in particular 
awareness  raising  campaigns,  referral  mechanisms  and  victim  protection 
systems, involving all relevant stakeholders and civil society; 

(v) technical, financial and administrative assistance relating to the prevention, 
treatment and reduction of harms related to drug use; 

(vi) technical assistance to support the development of legislation and of policy 
against child sexual abuse and sexual exploitation; 

(vii)  technical  assistance  and  training  to  support  capacity  building  and 
encourage  compliance  with  minimum  international  anti-corruption  standards, 

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and  notably  bearing  in  mind  those  set  out  in  the  UN  Convention  against 
Corruption. 

2. 

In the context of the association, the OCTs shall cooperate with the Union as regards 
the combat against money laundering in accordance with Articles 69 and 70. 

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Part Three 

Trade and trade related cooperation 

TITLE I 

GENERAL PROVISIONS 

Article 40 

General objectives 

The general objectives of the trade and trade related cooperation between the Union and the 
OCTs are to: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

promote  the  economic  and  social  development  of  the  OCTs  by  establishing  close 
economic relations between them and the Union as a whole; 

stimulate  the  OCTs'  effective  integration  in  the  regional  and  world  economies  and 
the development of trade in goods and services; 

support  OCTs  in  creating  a  favourable  investment  climate  to  support  social  and 
economic development of OCTs; 

promote the stability, integrity and transparency of the global financial system, and 
good governance in the tax area; 

support the process of diversification of OCT economies; 

support  OCT  capacities  to  formulate  and  implement  policies  necessary  for  the 
development of their trade in goods and services; 

support the OCTs' export and trading capacities; 

support  OCTs'  efforts  to  converge  their  local  legislation  with  Union  legislation, 
where relevant; 

provide  possibilities  for  targeted  cooperation  and  dialogue  with  the  Union  on  trade 
and trade related areas. 

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TITLE II 

ARRANGEMENTS FOR TRADE IN GOODS AND SERVICES AND ESTABLISHMENT 

Chapter 1 

Arrangements for trade in goods 

Article 41 

Free access for originating goods 

1. 

2. 

1. 

2. 

1. 

2. 

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

The definition of originating products and the methods of administrative cooperation 
relating thereto are laid down in Annex VI. 

Article 42 

Quantitative restrictions and measures having equivalent effect 

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

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. 

Article 43 

Measures adopted by the OCTs 

The authorities of the OCTs may retain or introduce in respect of imports of products 
originating  in  the  Union,  such  customs  duties  or  quantitative  restrictions  as  they 
consider necessary in view of their respective development needs. 

For the fields covered by this chapter, the OCTs shall grant to the Union a treatment 
no less favourable than the most favourable treatment applicable to any major trading 
economy as defined in paragraph 4. 

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3. 

4. 

5. 

1. 

2. 

1. 

2. 

The provisions of paragraph 2 shall not preclude an OCT from granting certain other 
OCTs or other developing countries more favourable treatment than that accorded to 
the Union. 

For  the  purposes  of  this  Title,  a  "major  trading  economy"  means  any  developed 
country, or any country accounting for a share of world merchandise exports above 
one  percent  ,  or,  without  prejudice  to  paragraph  3,  any  group  of  countries  acting 
individually,  collectively  or  through  an  economic  integration  agreement  accounting 
collectively  for  a  share  of  world  merchandise  exports  above  1.5  percent.  For  this 
calculation  the  latest  available  official  data  by  the  WTO  on  leading  exporters  in 
world merchandise trade (excluding intra-EU trade) shall be used.  

The 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 in compliance with this Decision. 

The  authorities  of  the  OCTs  shall  also  communicate  to  the  Commission  any 
subsequent amendments to such measures as and when they are adopted. 

Article 44 

Non- discrimination 

The Union shall not discriminate between OCTs and the OCTs shall not discriminate 
between Member States of the Union. 

In compliance with Article 64, the implementation of the specific provisions in this 
Decision and in particular its Articles 42(2) and 43, 46, 48, 50 and 58(3) shall not be 
deemed to constitute a discrimination. 

Article 45 

Conditions for movements of waste 

Movements of waste between the Member States and the OCTs shall be controlled in 
accordance  with  international  and  Union  law.  The  Union  shall  support  the 
establishment  and  development  of  effective  international  cooperation  in  this  area 
with a view to protecting the environment and public health. 

The Union shall prohibit all direct or indirect export of waste to the OCTs, with the 
exception of exports of non-hazardous waste destined for recovery operations while 
at the same time the OCT authorities shall prohibit the direct or indirect import into 
their territory of such waste from the Union or any third country, without prejudice to 
specific  international  undertakings  concerning  these  areas  that  have  been  made,  or 
may be made in future, in the competent international fora. 

3. 

As regards those OCTs, which, due to their constitutional status, are not Party to the 
Basel Convention, their relevant authorities shall expedite adoption of the necessary 

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internal legislation and administrative regulations to implement the provisions of the 
Basel Convention14 in those OCTs. 

4. 

In addition, the Member States to which OCTs are linked shall promote the adoption 
by  the  OCTs  of  the  necessary  internal  legislation  and  administrative  regulations  to 
implement the following acts:  

(a)  Regulation  (EC)  No  1013/2006  of  the  European  Parliament  and  of  the 

Council15, as follows: 

– 

– 

Article 40 as regards exports of waste to overseas countries or territories; 

Article  46  as  regards  imports  of  waste  from  overseas  countries  or 
territories; 

(b)  Council Regulation (EC) No 1420/199916; 

(c)  Commission Regulation (EC) No 1547/199917; 

(d)  Directive 2000/59/EC of the European Parliament and of the Council18 subject 

to the time limits for transposition laid down in Article 16 thereof. 

5. 

6. 

One or more OCTs and the Member States to which they are linked may apply their 
own procedures to export of waste from the OCTs to that Member State. 

In  this  case,  the  Member  State  to  which  the  OCT  is  linked  shall  notify  to  the 
Commission the applicable legislation within six months from the entry into force of 
this Decision as well as any future relevant national legislation, and any subsequent 
amendments to such legislation. 

Article 46 

Temporary withdrawal of preferences 

In  order  to  ensure  the  proper  implementation  of  this  Decision,  the  Union  may  temporarily 
withdraw preferences from an OCT in accordance with the provisions set out in Annex VII. 

Article 47 

Management of administrative errors 

In case of error by the competent OCT authorities in the issuance of certificates and methods 
of  administrative  cooperation,  and  where  this  error  leads  to  losses  affecting  Union  import 

14 
15 
16 
17 
18 

OJ L 39, 16.2.1993, p. 1. 
OJ L 190, 12.7.2006, p.1. 
OJ L 244, 14.9.2001, p. 19. 
OJ L 185, 17.7.1999, p. 1. 
OJ L 332, 28.12.2000, p. 81. 

EN 

39 

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duties,  the  Member  State  with  whom  the  OCT  that  has  committed  the  error  has  special 
relations, shall compensate the Union budget for the loss incurred.  

Article 48 

Safeguard and surveillance measures 

In order to ensure the proper implementation of this Decision, the Union may take safeguard 
and surveillance measures set out in Annex VIII. 

Chapter 2 

Arrangements for trade in services and for establishment 

Article 49 

Definitions 

For the purposes of this Chapter:  

(a) 

(b) 

'natural person from an OCT' means persons ordinarily resident in an OCT who are 
nationals  of  a  Member  State  or  who  enjoy  a  legal  status  specific  to  an  OCT.  This 
definition  is  without  prejudice  to  the  rights  conferred  by  citizenship  of  the  Union 
within the meaning of the Treaty; 

'legal person of an OCT' means a legal person of the OCT set up in accordance with 
the  laws  applicable  in  a  given  OCT,  and  having  its  registered  office,  its  central 
administration, or its principal place of business in the territory in this OCT; should 
the legal person have only its registered office or central administration in the OCT, 
it  shall  not  be  considered  as  a  legal  person  of  the  OCT,  unless  it  engages  in  an 
activity  which  has  a  real  and  continuous  link  with  the  economy  of  that  country  or 
territory; 

(c) 

the respective definitions laid down in the economic integration agreements referred 
to in Article 50(1) shall apply to the treatment accorded between the Union and the 
OCTs. 

Article 50 

Most favourable treatment 

1. 

With  respect  to  any  measures  affecting  trade  in  services  and  establishment  in 
economic activities: 

(a) 

the Union shall accord to natural and legal persons of the OCTs a treatment no 
less  favourable  than  the  most  favourable  treatment  applicable  to  like  natural 

EN 

40 

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and legal persons of any third country with whom the Union concludes or has 
concluded an economic integration agreement; 

(b)  An OCT shall accord to the natural and legal persons of the Union a treatment 
no less favourable than the most favourable treatment applicable to like natural 
and legal persons of any major trading economy with whom it has concluded 
an economic integration agreement after the entry into force of this Decision. 

2. 

The  obligations  set  out  in  paragraph  1  of  this  Article  shall  not  apply  to  treatment 
granted:  

(a) 

in  the  framework  of  an  internal  market  requiring  the  parties  thereto  to 
significantly  approximate  their  legislation  with  a  view  to  removing  non-
discriminatory obstacles to establishment and to trade in services  

(b)  under  measures  providing  for  recognition  of  qualifications,  licences  or 
prudential measures in accordance with Article VII of the General Agreement 
on Trade in Services (GATS) or the GATS Annex on Financial Services. This 
is without prejudice to OCT specific measures under this Article; 

(c)  under any international agreement or arrangement relating wholly or mainly to 

taxation; 

(d)  under  measures  benefiting  from  the  coverage  of  a  most-favoured  nation 

exemption listed in accordance with Article II.2 of the GATS. 

3. 

The  authorities  of  an  OCT  may  with  a  view  to  promoting  or  supporting  local 
employment, adopt regulations to aid their natural persons and local activities. In this 
event, the OCT authorities shall notify the Commission of the regulations they adopt 
so that it may inform the Member States. 

Article 51 

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  are  to  be 
recognised in the Member States. 

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TITLE III 

TRADE RELATED AREAS 

Chapter 1 

Trade and sustainable development 

Article 52 

General approach 

Trade and trade related cooperation under the association aims at contributing to sustainable 
development in its economic, social and environmental dimensions.  

In this context, the domestic environmental or labour laws and regulations of OCTs shall not 
be lowered in order to encourage trade or investment.  

Article 53 

Environmental and climate change standards in trade 

1. 

2. 

3. 

Trade  and  trade  related  cooperation  under  the  association  aims  at  enhancing  the 
mutual  supportiveness  between  trade  and  environmental  policies  and  obligations. 
Trade and trade related cooperation under the association shall take into account the 
principles of international environmental governance and multilateral environmental 
agreements. 

The  ultimate  objective  of  the  United  Nations  Framework  Convention  on  Climate 
Change  (UNFCCC)  and  its  Kyoto  Protocol  shall  be  pursued.  Cooperation  shall  be 
based  on  the  development  of  the  future  international  climate  change  framework  in 
accordance with the Bali Action Plan and the implementation of decisions emanating 
from  the  UNFCCC  Conferences  of  the  Parties  related  to  global  temperature  and 
emissions targets. 

Measures to implement multilateral environmental agreements shall not be applied in 
a  manner  that  would  constitute  a  means  of  arbitrary  or  unjustifiable  discrimination 
between the partners or a disguised restriction of trade.  

Article 54 

Labour standards in trade 

1. 

The association aims at promoting trade in such a way that it is conducive to full and 
productive employment and decent work for all. 

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2. 

The  internationally  recognised  core  labour  standards,  as  defined  by  the  relevant 
International Labour Organisation Conventions, shall be respected and implemented 
in law and practice. Such labour standards include in particular respect for freedom 
of  association,  right  to  collective  bargaining,  abolition  of  all  forms  of  forced  or 
compulsory labour, elimination of the worst forms of child labour, the minimum age 
for admission to employment and non-discrimination in respect to employment.  

3. 

The  violation  of  core  labour  standards  cannot  be  invoked  or  otherwise  used  as  a 
legitimate comparative advantage. They shall not be used for protectionist purposes. 

Article 55 

Sustainable trade in fisheries products 

With  a  view  to  promoting  the  sustainable  management  of  fish  stocks,  the  association  may 
include cooperation regarding the combat of  illegal,  unreported  and unregulated fishing  and 
related trade. Cooperation in this field aims at: 

(a) 

(b) 

promoting  the  implementation  of  measures  to  combat  illegal,  unreported  and 
unregulated fishing and related trade in OCTs; 

facilitating  cooperation  between  OCTs  and  regional  fisheries  management 
organisations, 
the  development  and  effective 
implementation  of  control  and  inspection  schemes,  incentives  and  measures  for 
effective long term management of fisheries and marine ecosystems. 

in  particular  with  respect 

to 

Article 56 

Sustainable timber trade 

In the context of  the  association,  cooperation in the field of timber trade aims at promoting 
trade  in  legally  harvested  timber.  Such  cooperation  may  include  dialogue  on  regulatory 
measures as well as exchange of information on market-based or voluntary measures such as 
forest certification or green procurement policies. 

Article 57 

Sustainable development in trade 

1. 

In the context of the association, cooperation in the of field sustainable development 
may be pursued by: 

(a) 

(b) 

facilitating  and  promoting  trade  and  investment  in  environmental  goods  and 
services and goods that contribute to the improvement of social conditions in 
OCTs; 

facilitating the removal of obstacles to trade or investment regarding goods and 
services  of  particular  relevance  for  climate  change  mitigation,  such  as 
sustainable  renewable  energy  and  energy  efficient  products  and  services, 

EN 

43 

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including  through  the  adoption  of  policy  frameworks  conducive  to  the 
deployment  of  best  available  technologies  and  through  the  promotion  of 
standards  that  respond  to  environmental  and  economic  needs  and  minimise 
technical obstacles to trade; 

(c)  promoting 

trade 

in  goods 

to  social  conditions  and 
that  contribute 
environmentally  sound  practices,  including  goods  that  are  the  subject  of 
voluntary  sustainability  assurance  schemes  such  as  fair  and  ethical  trade 
schemes,  eco-labels,  and  certification  schemes  for  natural  resource-based 
products; 

(d)  promoting  internationally  recognised  principles  and  guidelines  in  the  area  of 
corporate  social  responsibility,  and  encourage  companies  operating  in  the 
territory of OCTs to implement them; 

(e) 

exchanging  information  and  best  practices  in  the  area  of  corporate  social 
responsibility. 

In  the  design  and  implementation  of  measures aimed at protecting the environment 
or  labour  conditions  that  may  affect  trade  or  investment,  the  Union  and  the  OCTs 
shall  take  account  of  available  scientific  and  technical  information,  and  relevant 
international standards, guidelines or recommendations, including the precautionary 
principle. 

The  Union  and  the  OCTs  shall  apply  full  transparency  to  develop,  introduce  and 
implement any measures aimed at protecting the environment and labour conditions 
affecting trade or investment.  

Chapter 2 

Other trade related areas 

Article 58 

Current payments and capital movements 

No restrictions shall be imposed on any payments in freely convertible currency on 
the current account of balance of payments between residents of the Union and of the 
OCTs. 

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

2. 

3. 

1. 

2. 

EN 

44 

   EN 

 
 
 
3. 

4. 

The Union and the OCTs shall be entitled to take the measures referred to in Articles 
64,  65,  66,  75  and  215  of  the  Treaty  on  the  Functioning  of  the  European  Union  in 
accordance with the conditions laid down therein mutatis mutandis. 

The  OCT  authorities,  the  Member  State  concerned  or  the  Union  shall  inform  one 
another  immediately  of  any  such  measures  and  submit  a  timetable  for  their 
elimination as soon as possible. 

Article 59 
Competition policies 

The elimination of distortions to competition, with due consideration to the different levels of 
development  and  economic  needs  of  the  OCTs,  shall  involve  the  implementation  of  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. Such prohibition also relates to the abuse 
by  one  or  more  undertakings  of  a  dominant  position  in  the  territory  of  the  Union  or  of  the 
OCTs. 

Article 60 
Protection of intellectual property rights 

1. 

2. 

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

In  the  context  of  the  association,  cooperation  in  this  field  may  concern  the 
preparation of laws and regulations for the protection and enforcement of intellectual 
property  rights,  the  prevention  of  the  abuse  of  such  rights  by  right  holders  and  the 
infringement  of  such  rights  by  competitors  and  support  for  regional  intellectual 
property organisations involved in enforcement and protection, including the training 
of personnel.  

Article 61 
Technical barriers to trade 

The  association  may  include  cooperation  in  the  fields  of  technical  regulation  for  goods, 
standardisation,  conformity  assessment,  accreditation,  market  surveillance  and  quality 
assurance with a view to removing unnecessary technical barriers to trade between the Union 
and the OCTs and to reduce differences in those areas. 

EN 

45 

   EN 

 
Article 62 

Consumer policy, consumer health protection and trade 

In the context of the association, cooperation in the field of consumer policy, consumer health 
protection  and  trade  may  include  the  preparation  of  laws  and  regulations  in  the  area  of 
consumer  policy  and  consumer  health  protection,  with  a  view  to  avoiding  unnecessary 
barriers to trade. 

Article 63 

Sanitary and phyto-sanitary measures 

In  the  context  of  the  association,  cooperation  in  the  field  of  sanitary  and  phyto-sanitary 
measures aims at: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

facilitating  trade  between  the  Union  and  the  OCTs  as  a  whole  and  between  OCTs 
and  third  countries,  whilst  safeguarding  human,  animal  and  plant  health  or  life  in 
accordance with the WTO SPS Agreement; 

addressing problems arising from sanitary and phyto-sanitary measures; 

ensuring transparency as regards sanitary and phyto-sanitary measures applicable to 
trade between the Union and the OCTs; 

promoting the harmonisation of measures with international standards, in accordance 
with the WTO SPS Agreement; 

supporting the effective participation of OCTs in organisations that set international 
sanitary and phyto-sanitary standards; 

promoting  consultation  and  exchanges  between  OCTs  and  European  institutes  and 
laboratories; 

establishing  and  enhancing  OCTs  technical  capacity  to  implement  and  monitor 
sanitary and phyto-sanitary measures; 

(h) 

promoting technology transfer in the area of sanitary and phyto-sanitary measures. 

Article 64 

Prohibition of protectionist measures  

The provisions of Chapters 1 and 2 shall not be used as a means of arbitrary discrimination or 
a disguised restriction on trade. 

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46 

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Chapter 3 

Monetary and tax matters 

Article 65 

Tax carve out 

1. 

2. 

3. 

1. 

2. 

Without  prejudice  to  the  provisions  of  Article  66,  the  most  favoured-  nation 
treatment granted in accordance with the provisions of this Decision shall not apply 
to tax advantages which the Member States or 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 tax legislation in force. 

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

Nothing in this Decision shall be construed so as to prevent the respective competent 
authorities from distinguishing, in the application of the relevant provisions of their 
tax  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 66 

Tax and customs arrangements for Union funded contracts 

The  OCTs  shall  apply  to  contracts  funded  by  the  Union  tax  and  customs 
arrangements no less favourable than those applied by them to the Member State to 
which the OCT is linked or to the states to which the most-favoured nation treatment 
is  granted,  or  to  international  development  organisations  with  which  they  have 
relations, whichever treatment is the most favourable. 

Subject to paragraph 1, the following arrangements shall apply to contracts financed 
by the Union: 

(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  beneficiary  OCT, 
provided that the natural or legal persons who realise such profit and/or income 

EN 

47 

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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 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  OCT  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 
OCT; 

(f) 

fuels,  lubricants  and  hydrocarbon  binders  and  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 contractual matter not covered by paragraphs 1 and 2 shall remain subject to the 
legislation of the OCT concerned.  

Chapter 4 

Trade capacity development 

Article 67 

General approach 

With a view to ensuring that OCTs derive the maximum benefit from the provisions of this 
Decision  and  that  they  may  participate  under  the  best  possible  conditions  in  the  Union's 
internal  market  as  well  as  regional,  sub-regional  and  international  markets,  the  association 
aims at contributing to the development of the OCTs' trade capacities by:  

(a) 

increasing the OCTs' competitiveness, self-reliance and economic resilience, through 
diversifying  the  range  and  increasing  the  value  and  volume  of  OCT  trade  in  goods 

EN 

48 

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and services and by strengthening the OCTs' ability to attract private investments in 
various sectors of economic activity; 

(b) 

improving  cooperation  in  trade  in  goods,  services  and  establishment  between  the 
OCTs and neighbouring countries. 

Article 68 

Trade dialogue, cooperation and capacity development 

In  the  context  of  the  association,  trade  dialogue,  cooperation  and  capacity  development 
initiatives may include: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

strengthening  the  OCTs'  capacities  to  define  and  implement  policies  necessary  for 
the development of trade in goods and services; 

encouraging  the  efforts  of  OCTs  to  put  into  place  appropriate  legal,  regulatory  and 
institutional frameworks as well as the necessary administrative procedures; 

promoting private sector development, in particular SMEs; 

facilitating market and product development, including product quality improvement; 

contributing to the development of human resources and professional skills relevant 
to trade in goods and services; 

enhancing  the  capacity  of  business  intermediaries  to  provide  OCT  enterprises 
services pertinent to their exporting activities, such as market intelligence; 

(g) 

contributing to the creation of a business climate conducive to investment. 

Chapter 5 

Cooperation in the area of financial services and taxation matters 

Article 69 

Cooperation on international financial services 

With a view to promote the stability, integrity and transparency of the global financial system, 
the association may include cooperation on international financial services. Such cooperation 
may concern: 

(a) 

the provision of effective and adequate protection of investors and other consumers 
of financial services; 

(b) 

the prevention and combat of money laundering and financing of terrorism; 

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49 

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(c) 

(d) 

the  promotion  of  co-operation  between  different  actors  of  the  financial  system, 
including regulators and supervisors; 

the  setup  of  independent  and  effective  mechanisms  for  supervision  of  financial 
services. 

Article 70 

Regulatory convergence in financial services 

The Union and the OCTs shall promote regulatory convergence with recognised international 
standards on regulation and supervision in the area of financial services including: the Basel 
Committee's  “Core  Principle  for  Effective  Banking  Supervision”, 
the  International 
Association  of  Insurance  Supervisors'  “Insurance  Core  Principles”,  the  International 
Organisation  of  Securities  Commissions'  “Objectives  and  Principles  of  Securities 
Regulation”,  the  OECD's  “Agreement  on  exchange  of  information  on  tax  matters”,  the  G20 
“Statement  on  Transparency  and  exchange  of  information  for  tax  purposes",  the  Financial 
Stability Board's "Key Attributes of Effective Resolution Regimes for Financial Institutions" 
and  the  Financial  Action  Task  Force's  “Forty  Recommendations  on  Money  Laundering  and 
Terrorist Financing". 

The  Union  and  the  OCTs  shall  also  promote  convergence  of  OCT  legislation  with  Union 
legislation on financial services. 

Article 71 

Cooperation between regulatory and supervisory authorities 

The  Union  and  the  OCTs  shall  encourage  the  cooperation  between  relevant  regulatory  and 
supervisory  authorities,  including  information  exchange,  sharing  of  expertise  on  financial 
markets  and  other  such  measures.  Special  attention  shall  be  given  to  the  development  of 
administrative  capacity  of  such  authorities,  inter  alia  through  personnel  exchange  and  joint 
training. 

Article 72 

Cooperation in taxation matters 

The Union and the OCTs shall promote cooperation in the tax area in order to facilitate the 
collection  of 
the  effective 
implementation of the principles of good governance in the tax area, including transparency, 
exchange of information and fair tax competition. 

to  develop  measures  for 

tax  revenues  and 

legitimate 

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Part Four 

Instruments for sustainable development 

Chapter 1 

General provisions 

Article 73 

General objectives 

The Union shall contribute to the achievement of the association's overall objectives through 
the provision of: 

(a) 

adequate  financial  resources  and  appropriate 
technical  assistance  aimed  at 
strengthening  the  OCTs'  capacities  to  formulate  and  implement  strategic  and 
regulatory frameworks; 

(b) 

long term financing to promote private sector growth. 

Article 74 

Definitions 

For the purposes of this Decision, the following definitions shall apply: 

'programmable  aid'  means  the  non-repayable  aid  under  the  European  Development  Fund 
allocated to the OCTs in order to finance territorial or regional strategies and priorities set out 
in programming documents. 

'programming'  means  the  process  of  organisation,  decision-making  and  allocation  of 
indicative  financial  resources  intended  to  implement,  on  a  multi-annual  basis,  in  an  area 
referred to in Part II of this Decision, the action to achieve the association's objectives for the 
sustainable development of the OCTs. 

'programming  document'  means  the  document  which  sets  out  the  OCT's  strategy,  priorities 
and  arrangements  and  translates  the  objectives  and  targets  of  the  OCT  for  its  sustainable 
development in an effective and efficient way to pursue the objectives of the association. 

‘development  plans'  referred  to  in  Article  82  of  this  Decision  means  a  coherent  set  of 
operations  defined  and  financed  exclusively  by  the  OCTs  in  the  framework  of  their  own 
policies  and  strategies  of  development,  and  those  agreed  upon  between  an  OCT  and  the 
Member State to which it is linked. 

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'territorial  allocation'  is  the  amount  allocated  to  individual  OCTs  for  the  programmable  aid 
under the European Development Fund in order to finance territorial strategies and priorities 
set out in programming documents. 

'regional  allocation'  is  the  amount  allocated  for  the  programmable  aid  under  the  European 
Development  Fund  in  order  to  finance  regional  cooperation  strategies  or  thematic  priorities 
common to several OCTs and set out in programming documents. 

'financing  decision'  means  the  act  adopted  by  the  Commission  specifying  the  details  of  the 
Union's  financial  contribution  and  authorizing  to  grant  financial  aid  from  the  European 
Development Fund. 

Article 75 

Principles of finance cooperation 

1. 

2. 

3. 

Union financial assistance shall be based on the principles of partnership, ownership, 
alignment on territorial systems, complementarity and subsidiarity. 

Operations  funded  within  the  framework  of  this  Decision  can  take  the  form  of 
programmable or non-programmable aid.  

Union financial assistance shall: 

(a)  be  implemented  with  due  regard  to  the  OCTs  respective  geographical,  social 

and cultural characteristics, as well as their specific potential; 

(b) 

ensure that resource flows are accorded on a predictable and regular basis; 

(c)  be flexible and tailored to the situation in each OCT; 

(d)  be  conducted  in  full  compliance  with  the  respective  institutional,  legal  and 

financial powers of each of the partners. 

4. 

The  authorities  of  the  OCT  concerned  shall  be  responsible  for  implementing 
operations  without  prejudice  to  the  powers  of  the  Commission  to  ensure  sound 
financial management in the use of Union funds. 

Chapter 2 

Financial resources  

Article 76 

Sources of financing 

OCTs shall be eligible for the following sources of funding: 

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52 

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(a) 

(b) 

(c) 

resources allocated for the OCTs under the Internal Agreement between the Member 
States of the Union establishing the 11th European Development Fund (EDF); 

the Union programmes and instruments provided for in the Union's general budget; 

funds  managed  by  the  European  Investment  Bank  under  the  European  Investment 
Bank's own resources, and the resources allocated to the EDF Investment Facility, in 
accordance  with  the  conditions  of  the  Internal  Agreement  between  the  Member 
States of the Union establishing the 11th EDF. 

Chapter 3 

Specific provisions for the financial assistance under the 11th EDF 

Article 77 

Subject- matter and scope 

Within the framework of the strategy and priorities established by the OCT concerned at local 
or regional level, and without prejudice to humanitarian and emergency aid, financial support 
may  be  given  to  the  following  activities  helping  to  achieve  the  objectives  set  out  in  this 
Decision: 

(a) 

sector policies and reforms as well as projects that are in coherence with them; 

(b) 

institutional  development,  capacity  building  and  integration  of  environmental 
aspects; 

(c) 

technical cooperation; 

(d) 

additional support in the event of fluctuations in export earnings from exports 
of goods and services referred in Article 81. 

Article 78 

Humanitarian and emergency aid 

1. 

Humanitarian  and  emergency  aid  shall  be  granted  in  the  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. 

2. 

The aim of humanitarian and emergency aid shall be to: 

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(a) 

save human lives in crisis and post-crisis situations; 

(b) 

(c) 

(d) 

contribute  to  the  financing  and  delivery  of  humanitarian  aid  and  to  the  direct 
access to it of its intended beneficiaries by all logistical means available; 

carry  out  short-term  rehabilitation  and  reconstruction  to  enable  the  victims  to 
benefit  from  a  minimum  of  socio-economic  integration  and,  as  soon  as 
possible, create the conditions for a resumption of development on the basis of 
long-term objectives; 

address the needs arising from the displacement of people (refugees, displaced 
persons and returnees) following natural or man-made disasters so as to meet, 
for  as  long  as  necessary,  all  the  needs  of  refugees  and  displaced  persons 
(wherever they may be) and facilitate action for their voluntary repatriation and 
re-integration in their country of origin; 

(e) 

assist the OCTs in setting up short term disaster  prevention and  preparedness 
mechanisms,  including  for  prediction  and  early  warning,  with  a  view  to 
reducing the consequences of disasters. 

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

Aid provided for by this Article shall be financed from the Union budget. However, 
it  may  exceptionally  be  financed  from  the  allocations  laid  down  in  Annex  II,  in 
addition to the funding from the budget heading concerned. 

Humanitarian and emergency aid operations shall be undertaken at the request of the 
OCT  affected,  the  Commission,  the  Member  State  to  which  the  OCT  is  linked, 
international organisations or local or international non-governmental organisations. 
Such  aid  shall  be  administered  and  implemented  under  procedures  that  facilitate 
rapid, flexible and effective operations. 

Article 79 

Capacity development 

Financial assistance shall be used to support the OCTs with developing the necessary 
capacities to define, implement and monitor territorial and/or regional strategies and 
actions  in  view  of  achieving  the  general  objectives  for  the  areas  of  cooperation 
mentioned in Parts Two and Three. 

The Union shall support the efforts of the OCTs in developing reliable statistical data 
regarding those areas. 

3. 

4. 

5. 

1. 

2. 

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Article 80 

Technical assistance 

1. 

2. 

1. 

2. 

3. 

4. 

On the initiative 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  and  for  its  overall  evaluation.  Technical 
assistance provided locally shall be implemented in all instances in accordance with 
the rules applicable to decentralised financial management. 

On  the  initiative  of  the  OCTs,  studies  or  technical  assistance  measures  may  be 
financed  in  relation  to  the  implementation  of  the  activities  scheduled  in  the 
programming documents. The Commission may decide to finance such action either 
from  the  programmable  aid  or  from  the  envelope  earmarked  for  technical 
cooperation measures. 

Article 81 

Additional support in the event of fluctuations in export earnings 

In  order  to  mitigate  the  adverse  effects  of  any  short-term  fluctuations  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  referred  to  in 
Annex II. 

Support in the event of short-term fluctuations in export earnings shall be aimed 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 
in particular from agricultural and mining products. 

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 referred 
to in Annex V. In this context the isolated OCTs referred to in Annex I shall receive 
more favourable treatment in accordance with the criteria set out in Annex V. 

The additional resources shall be provided in accordance with the specific modalities 
of the support mechanism as set out in Annex V. 

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

Article 82 

Programming 

1. 

For the purpose of this Decision, programmable aid shall be based on a programming 
document. 

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2. 

3. 

The programming document may take into account the territorial development plans 
or other plans agreed upon between the OCTs and the Member States to which they 
are linked. 

Pursuant to article 9, the OCT authorities shall assume the primary responsibility for 
the formulation of strategies, priorities and arrangements through the preparation of 
programming documents in coordination with the Commission and the Member State 
to which the OCT is linked. 

4. 

The OCT authorities shall be responsible for: 

(a) 

establishing their priorities on which the strategy shall be based; 

(b) 

formulating project and programme proposals submitted to and examined with 
the Commission. 

The OCT authorities and the Commission shall be jointly responsible for approving 
the programming document. 

The Commission shall adopt the financing decision corresponding to a programming 
document in accordance with the procedure provided for in Article 84. 

The  procedure  provided  in  Article  84  shall  also  apply  to  substantial  reviews  which 
have  the  effect  of  modifying  significantly  the  content  of  the  programming  and  the 
corresponding financing decision. It shall not apply to non-substantial modifications 
such  as  technical  adjustments  or  increasing  or  decreasing  the  size  of  the  initial 
financial  allocations  by  less  than  20%,  provided  that  these  modifications  do  not 
affect  the  priority  areas  and  objectives  set  out  in  the  programming  document.  The 
Committee  provided  for  in  Article  84  shall  be  informed  of  such  non-substantial 
modifications within one month after such modifications are introduced. 

Article 83 

Implementation 

The Commission shall implement OCT 11th EDF resources in any of the ways set out 
in the 11th EDF financial regulation and in accordance with the conditions set out in 
this  Decision and in the measures implementing  that  Decision. To this  end, it shall 
conclude financing agreements with the relevant authorities of the OCTs. 

5. 

6. 

7. 

1. 

2. 

The OCT authorities shall be responsible for: 

(a)  preparing, negotiating and concluding contracts; 

(b) 

implementing and managing projects and programmes; 

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

3. 

The relevant authorities of the OCTs and the Commission shall be jointly responsible 
for: 

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(a) 

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

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

(c) 

ensuring 
programmes. 

the  proper,  prompt  and  efficient  execution  of  projects  and 

Article 84 

EDF-OCT Committee 

1. 

2. 

3. 

The Commission shall, where appropriate, be assisted by the Committee created by 
the 11th EDF Internal Agreement. 

When exercising the powers conferred on it by this Decision, the Committee shall be 
known as the ‘EDF-OCT Committee’. The procedures of the Committee laid down 
in the Internal Agreement shall apply to the EDF-OCT Committee. 

The Committee shall focus its work on the substantive issues of cooperation at OCT 
and regional level. In the interests of coherence, coordination and complementarity, 
it shall monitor the implementation of the Programming documents. 

4. 

The Committee shall give its opinion on: 

(a)  draft programming documents and any amendments to them; 

(b) 

the financing decisions for implementing this Part of the Decision. 

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 8 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 2 of that Article. The chairman shall not vote. 

The Commission shall adopt the measures, which shall apply immediately. However, 
if the measures are not in accordance with the opinion of the Committee they shall be 
communicated  by  the  Commission  to  the  Council  forthwith.  In  that  event,  the 
Commission  may  defer  application  of  the  measures  which  it  has  decided  on  for  a 
period of not more than three months from the date of such communication. 

The Council, acting by the majority and in accordance with the weighting referred 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 audit 
of Programming documents. 

For  the  implementation  of  the  11th  EDF,  the  respective  provisions  of  the  Internal 
Agreement establishing the 11th EDF shall be applicable. 

5. 

6. 

7. 

8. 

9. 

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1. 

2. 

Article 85 

Protecting the Union's financial interests and financial controls 

The  Commission  shall  take  appropriate  measures  ensuring  that,  when  actions 
financed under this Decision are implemented, the financial interests of the Union are 
protected by the application of preventive measures against fraud, corruption and any 
other illegal activities, by effective checks and, if irregularities are detected, by the 
recovery  of  the  amounts  wrongly  paid  and,  where  appropriate,  by  effective, 
proportionate and deterrent penalties.  

The  Commission  and  the  Court  of  Auditors  shall  have  the  power  of  audit,  on  the 
basis  of  documents  and  on-the-spot,  over  all  grant  beneficiaries,  contractors  and 
subcontractors who have received Union funds.  

The  European  Anti-fraud  Office  (OLAF)  may  carry  out  on-the-spot  checks  and 
inspections on economic operators concerned directly or indirectly by such funding 
in  accordance  with  the  procedures  laid down  in  Council  Regulation  (Euratom,  EC) 
No 2185/9619 with a view to establishing whether there has been fraud, corruption or 
any other illegal activity in connection with a grant agreement or grant decision or a 
contract concerning Union funding. 

Without  prejudice  to  the  first  and  second  subparagraphs,  agreements  with  third 
countries  and  international  organisations  and  grant  agreements  and  grant  decisions 
and  contracts  resulting  from  the  implementation  of  this  Decision  shall  expressly 
empower the Commission, the Court of Auditors and OLAF to conduct such audits, 
on-the-spot  checks  and  inspections,  in  accordance  with  the  relevant  EDF  Financial 
Regulation. 

3. 

OCTs  shall  bear  primary  responsibility  for  the  financial  supervision  of  the  Union 
funds. This shall be carried out, where appropriate, in coordination with the Member 
State  to  which  the  OCT  is  linked  in  accordance  with  the  applicable  national 
legislation.  

4. 

The Commission shall be responsible for:  

(a) 

(b) 

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

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

5. 

The Commission, the 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. 

19 

OJ L 292, 15.11.1996, p. 2. 

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6. 

With regard to financial corrections: 

(a) 

the OCT shall be responsible in the first instance for detecting and correcting 
financial irregularities; 

(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  financing  decision  of  the  Programming 
Document. 

Chapter 4 

Principles of eligibility 

Article 86 

Eligibility for territorial financing 

1. 

2. 

The  OCTs  public  authorities  shall  be  eligible  for  financial  support  provided  for  in 
this Decision. 

Subject  to  the  agreement  of  the  authorities  of  the  OCTs  concerned,  the  following 
entities  or  bodies  shall  also  be  eligible  for  financial  support  provided  for  in  this 
Decision: 

(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 and of regional groups; 

(c) 

companies  and  firms  of  a  Member  State, so  as  to  enable  them,  in  addition  to 
their  own  contribution,  to  undertake  productive  projects  in  the  territory  of  an 
OCT; 

(d)  OCT  or  Union  financial  intermediaries  promoting  and  financing  private 

investments in the OCTs; 

(e) 

actors  of  decentralised  cooperation  and  other  non-governmental  actors  from 
OCTs  and  from  the  Union,  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 11. 

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Article 87 

Eligibility for regional financing 

1. 

A regional allocation shall be used for operations benefiting and involving:  

(a) 

two or more OCTs; 

(b)  one  or  more  OCTs  and  one  or  more  outermost  regions  referred  to  in  Article 

349 of the Treaty; 

(c)  one or more OCTs and one or more neighbouring ACP and/or non-ACP States; 

(d)  one  or  more  OCTs,  one  or  more  outermost  regions  and  one  or  more  ACP 

and/or non-ACP States; 

(e) 

two or more regional bodies of which OCTs are members; 

(f) 

one or more OCTs and regional bodies of which OCTs, ACP States or one or 
more of the outermost regions are members; 

(g) 

the OCTs and the Union as a whole. 

The funding to enable participation of the ACP States, outermost regions and other 
countries shall be additional to funds allocated to the OCTs under this Decision.  

The  participation  of  ACP  States,  outermost  regions  and  other  countries  to 
programmes  established  pursuant  to  this  Decision  shall  be  envisaged  only  to  the 
extent that:  

(a) 

the  centre  of  gravity  of  the  projects  and  programmes  funded  under  the 
multi-annual financial framework of cooperation remains in an OCT; 

(b) 

equivalent provisions exist in the framework of the EU's financial instruments; 

(c) 

the principle of proportionality is respected. 

Appropriate  measures  will  allow  for  matching  of  funding  of  credits  from  the  EDF 
and  the  Union  budget  to  finance  cooperation  projects  between  the  OCTs,  the  ACP 
Countries,  the  outermost  regions  as  well  as  other  countries,  in  particular  simplified 
mechanisms for joint management of such projects. 

Article 88 

Eligibility for Union programmes 

Natural  persons  from  an  OCT,  as  defined  in  Article  49,  and,  where  applicable,  the 
relevant public and/or private bodies and institutions in an OCT, shall be eligible for 
participation  in  and  funding  from  all  Union  programmes,  subject  to  the  rules  and 
objectives  of  the  programmes  and  possible arrangements  applicable  to  the  Member 
State to which the OCT is linked. 

2. 

3. 

4. 

1. 

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2. 

OCTs  shall  also  be  eligible  for  support  under  programmes  of  the  Union  for 
cooperation with other countries, notably developing countries, subject to the rules, 
objectives and arrangements of these programmes.  

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Part Five 

Final provisions 

Article 89 

Delegation of powers to the Commission 

1. 

The  Commission  shall  be  empowered  to  adopt  delegated  acts  complementing  the 
rules  in  this  Decision  within  12  months  of  its  entry  into  force,  and  amending  the 
Appendices  of  Annex  VI  for  the  purpose  of  taking  into  account  technological 
development  and  changes  in  customs  legislation,  in  accordance  with  the  procedure 
laid down in Article 90.  

2. 

The additional provisions shall include: 

(a) 

the procedure for programming; 

(b) 

the  procedures  and  criteria  for  the  follow-up,  audit,  evaluation,  review  and 
implementation of the programming of this Decision, including the preparation 
of periodical or other reports; 

(c) 

the  detailed  rules  for  implementing  the  financial  corrections  referred  to  in 
Article 85. 

Article 90 

Exercise of the delegation 

1. 

2. 

3. 

4. 

5. 

The  power  to  adopt  delegate  acts  is  conferred  on  the  Commission  subject  to  the 
conditions laid down in this Article. 

The  delegation  of  power  referred  to  in  Article  89  shall  be  conferred  on  the 
Commission for an indeterminate period of time from the date of entry into force of 
this Decision.  

The delegation of power referred to in Article 89 may be revoked at any time by the 
Council.  A  decision  of  revocation  shall  put  an  end  to  the  delegation  of  power 
specified in that Decision. It shall take effect the day following the publication of the 
decision  in  the  Official  Journal  of  the  European  Union  or  at  a  later  date  specified 
therein. It shall not affect the validity of any delegated acts already in force. 

As soon as it adopts a delegated act, the Commission shall notify it to the Council. 

A  delegated  act  adopted  pursuant  to  Article  89  shall  enter  into  force  only  if  no 
objection  has  been  expressed  by  the  Council  within  a  period  of  2  months  of 
notification  of  the  act  to  the  Council  or  if,  before  the  expiry  of  that  period,  the 

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Council  has  informed  the  Commission  that  it  will  not  object.  That  period  shall  be 
extended by 2 months at the initiative of the Council. 

Article 91 

Change of status 

The Council, acting according to the Treaty, shall decide on any necessary adjustments to this 
Decision when:  

(a) 

(b) 

(c) 

(d) 

an OCT becomes independent; 

an OCT leaves the association; 

an OCT becomes an outermost region; 

an outermost region becomes an OCT. 

Article 92 

Repeal 

Council Decision 2001/822/EC is hereby repealed. References to the repealed Decision shall 
be construed as references to this Decision. 

Article 93 

Entry into force 

This Decision shall enter into force on 1 January 2014.  

Annex VI shall apply as provided for in Article 65 of that Annex.  

Article 94 

Publication 

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

Done at Brussels,  

For the Council 
The President 

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ANNEX I 

LIST OF THE ISOLATED OCTs 

– 

– 

– 

Falkland Islands 

Saint Helena, Ascension Island, Tristan da Cunha 

St Pierre and Miquelon 

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ANNEX II 

UNION FINANCIAL ASSISTANCE: 11TH EDF 

Article 1 

Allocation between the various instruments 

1. 

For the purposes of this Decision, for the seven-year period from 1 January 2014 to 
31 December 2020, the overall amount of the EU financial assistance of EUR [343.4 
million]  under  the  11th  EDF  fixed  by  the  Internal  Agreement  establishing  the  11th 
EDF shall be allocated as follows: 

(a)  EUR [330.4 million] in the form of grants for programmable support for long-
term development, humanitarian aid, emergency aid, refugee aid and additional 
support in the event of fluctuations in export earnings as well as for support for 
regional cooperation and integration; 

(b)  EUR  [5  million]  to  finance  interest  subsidies  and  technical  assistance  in  the 

context of the OCT Investment Facility referred to in Annex IV; 

(c)  EUR [8 million] to studies or technical assistance measures in accordance with 
Article 79 of this Decision, and to an overall evaluation of the Decision to be 
made four years before it expires at the latest. 

2. 

3. 

The funds of the 11th EDF may not be committed after 31 December 2020, unless 
the Council decides otherwise unanimously, on a proposal from the Commission. 

Should  the  funds  provided  for  in  paragraph  1  be  exhausted  before  this  Decision 
expires, the Council shall take the appropriate measures. 

Article 2 

Administration of resources 

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

Article 3 

Allocation between the OCTs 

The  amount  of  EUR  [330.4  million]  mentioned  in  Article  1(1)(a)  shall  be  allocated  on  the 
basis of the needs and performance of the OCTs in accordance with the following criteria: 

1. 

An  amount  A  of  EUR  [205.3  million]  shall  be  allocated  to  the  OCTs  other  than 
Greenland  [and  Bermuda]  in  particular  to  finance  the  initiatives  referred  to  in  the 
programming  document.  Where  appropriate,  the  programming  document  shall  pay 
particular attention to actions aimed at strengthening governance and the institutional 
capacities  of  the  beneficiary  OCTs  and,  where  relevant,  the  likely  timetable  of  the 
envisaged actions. 

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The  allocation  of  amount  A  shall  take  into  account  the  size  of  the  population,  the 
level of Gross Domestic Product (GDP), the level of previous  EDF allocations  and 
constraints  due  to  the  geographical  isolation  of  OCTs  as  mentioned  in  Article  8  of 
this Decision. Any allocation shall be such as to allow its effective use. It should be 
decided in conformity with the principle of subsidiarity. 

2. 

EUR [105 million] shall be allocated to support regional cooperation and integration 
in  accordance  with  Article  7  of  this  Decision,  in  particular  regarding  the  priorities 
and areas of mutual interests mentioned in Article 5 and through consultation via the 
instances  of  the  EU-OCT  partnership  mentioned  in  Article  13.  It  shall  seek 
coordination with other Union financial instruments, cooperation between the OCTs 
and the outermost regions referred to in Article 349 of the Treaty. 

3. 

A non-allocated reserve B of EUR [20 million] shall be set aside to: 

(a) 

finance humanitarian and emergency assistance for the OCTs and, if necessary, 
the  additional  support  in  the  event  of  fluctuations  in  export  earnings,  in 
accordance with Annex IV; 

(b)  make  new  allocations  in  accordance  with  the  development  of  the  needs  and 

performance of the OCTs referred to under paragraph 1. 

Performance  shall  be  evaluated  in  an  objective  and  transparent  way,  taking  into 
account inter alia the use of the allocated resources, the effective implementation of 
the ongoing operations and the sustainable development measures adopted. 

4. 

The Commission, following a mid-term review, may decide on the allocation of any 
non-allocated funds mentioned in this Article. The procedures for this review and the 
decision on any new allocation shall be adopted in accordance with Article 84 of this 
Decision. 

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ANNEX III 

UNION FINANCIAL ASSISTANCE: LOANS FROM THE EUROPEAN 
INVESTMENT BANK'S OWN RESOURCES 

Article 1 

Amount 

An amount of up to EUR [100 million] shall be provided by the EIB for financing from its 
own resources in accordance with its own rules and procedures and the conditions provided 
for by its statutes and this Annex. 

Article 2 

European Investment Bank 

1. 

The EIB shall: 

(a) 

(b) 

(c) 

contribute,  through  the  resources  it  manages,  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  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 Union; 

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

2. 

Financing from the EIB's own resources shall be granted under the following terms 
and conditions: 

(a) 

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

(b)  however: 

– 

– 

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

for  private  sector  projects  which  involve  restructuring  operations  in  the 
framework  of  privatisation  or  for  projects  with  substantial  and  clearly 
demonstrable  social  or  environmental  benefits,  loans  may  be  extended 
with  an  interest  rate  subsidy  the  amount  and  form  of  which  will  be 

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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. 

(c) 

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 laid down in Annex IV, Article 2(11), and paid directly to the EIB; 

Interest  subsidies  may  be  capitalised  or  used  in  the  form  of  grants  to  support 
project-related technical assistance, particularly for financial institutions in the 
OCTs. 

(d) 

the repayment period of loans made by the EIB 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. 

3. 

For  investments  financed  by  the  EIB  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 transfer 

1. 

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

(a)  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; 

(b)  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  on  their 
territories; 

(c)  make available to the EIB 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  due  in  terms  of  financing 
contracts granted for the implementation of projects on their territories. 

2. 

For the purposes of this Article, "OCTs concerned" shall mean the OCT benefitting 
from the operation. 

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ANNEX IV 

UNION FINANCIAL ASSISTANCE: EIB INVESTMENT FACILITY 

Article 1 

Objective 

The OCT Investment Facility (the Facility) set up by Decision 2001/822/EC with EDF funds 
to promote commercially viable enterprises is maintained. 

The  terms  and  conditions  of  financing  in  relation  to  the  operations  of  the  Facility  and  the 
loans  from  own  resources  of  the  EIB  shall  be  as  laid  down  in  the  Internal  Agreement 
establishing the 11th EDF and in Annex III and in this Annex. 

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 Facility 

1. 

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

(a)  provide risk capital in the form of: 

– 

– 

– 

equity  participation  in  OCT  enterprises,  based  or  not  in  an  OCT, 
including financial institutions; 

quasi-capital  assistance 
institutions; 

to  OCT  enterprises, 

including 

financial 

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. 

2. 

3. 

Equity  participation  shall,  in  general,  be  for  non-controlling  minority  holdings  and 
shall be remunerated on the basis of the performance of the project concerned. 

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; 

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(b)  participating loans, the servicing and/or the duration of which shall be linked to 

the financial return of the project; 

(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. 

However: 

(a) 

in  the  case  of  conditional  or  participating  loans,  the  remuneration  shall 
normally  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  the  risks  insured  and  the  particular 
characteristics of the operation. 

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

Ordinary  loans  may  be  extended  on  concessional  terms  and  conditions  in  the 
following cases: 

(a) 

(b) 

for infrastructure projects in the least developed OCTs, in post-conflict OCTs 
or  in  post-natural  disaster  OCTs  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 rate of loans falling under (a) or (b) shall, in any case, never be less than 
50% of the reference rate. 

The  funds  to  be  provided  for  these  concessional  purposes  will  be  made  available 
from the Facility and shall not exceed the overall allocation for investment financing 
by the Facility and by the EIB from its own resources. 

Interest subsidies may be capitalised or may be used in the form of grants to support 
project-related  technical  assistance,  particularly  for  financial  institutions  in  the 
OCTs. 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

11. 

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Article 3 

Operations of the Facility 

1. 

The 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; 

(b) 

support the OCT financial sector and 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; 

(c)  bear  part  of  the  risk  of  the  projects  it  funds,  its  financial  sustainability  being 

ensured through the portfolio as a whole and not from individual operations; 

(d) 

seek to channel funds through OCT institutions and programmes that promote 
the development of small and medium-sized enterprises (SMEs). 

The  EIB  shall  be  remunerated  for  the  cost  incurred  in  managing  the  Facility.  The 
remuneration of the EIB shall include a fixed component of 0.5% a year of the initial 
endowment  and  a  variable  component  of  an  amount  of  up  to  1.5%  a  year  of  the 
portfolio of the Facility that is invested in projects in OCTs. The remuneration shall 
be financed out of the Facility. 

On expiry of this Decision, and in the absence of a specific decision by the Council, 
the  cumulative  net  reflows  to  the  Facility  shall  be  carried  over  to  the  next  OCT 
Financial Instrument. 

2. 

3. 

Article 4 

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) 

(c) 

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 Facility; 

in  the  case  of  risk  capital  financing  for  SMEs,  the  exchange  rate  risk  shall  as  a 
general rule be shared, on the one hand, by the Union, and on the other hand, by the 
other  parties  involved.  On  average,  the  foreign  exchange  rate  risk  shall  be  shared 
equally; 

where  feasible  and  appropriate,  particularly 
in  countries  characterised  by 
macroeconomic and financial stability, the Facility will endeavour to extend loans in 
local OCT currencies, thus taking the foreign exchange risk. 

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Article 5 

Financial controls 

1. 

2. 

1. 

2. 

3. 

Investment Facility operations shall be subject to the control and discharge procedure 
laid down in the Statutes of the EIB for all of its operations. 

The  ECA’s  supervision  of  Investment  Facility  operations  shall  be  carried  out  in 
accordance with the procedures agreed upon between the Commission, the Bank and 
the  ECA,  and  in  particular  the  Tripartite  Agreement,  entered  into  by  the 
aforementioned parties on 27 October 2003, as amended, supplemented or modified 
from time to time. 

Article 6 

Privileges and immunities 

The representatives of the EIB, while they are engaged in activities connected with 
or  in  implementation  of  this  Decision,  shall  enjoy  in  the  OCTs  the  customary 
privileges,  immunities  and  facilities  while  carrying  out  their  duties  and  while 
travelling to or from the place at which they are required to carry out such duties. 

For  its  official  communications  and  the  transmission  of  all  its  documents,  the  EIB 
shall  enjoy  in  the  territory  of  the  OCTs  the  treatment  accorded  to  international 
organisations. 

Official  correspondence  and  other  official  communications  of  the  EIB  shall  not  be 
subject to censorship. 

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ANNEX V 

EU 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 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) 

(b) 

a 10 %, or 2 % in the case of isolated OCTs as mentioned in Annex I, 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; or 

a 10 %, or 2 % in the case of isolated OCTs as mentioned in Annex I, 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. 

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 the implementing provisions to 
be laid down pursuant to Article 83 of this Decision. By agreement of both Parties 
the  resources  may  be  used  to  finance  programmes  included  in  the  national  budget. 
However a part of the additional resources may also be set aside for specific sectors. 

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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  authorities  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  authorities  of  the  OCT  in  the  light  of  final  consolidated 
export statistics and the final figure of the public deficit. 

Article 4 

Revision 

The provisions in this Annex shall be subject to review at the latest after two years from the 
entry into force of the implementing provisions referred to in Article 84 of this Decision and 
subsequently at the request of the Commission, a Member State or an OCT. 

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[ 

ANNEX VI 

CONCERNING THE DEFINITION OF THE CONCEPT OF "ORIGINATING 
PRODUCTS" AND METHODS OF ADMINISTRATIVE COOPERATION 

INDEX 

TABLE OF CONTENTS 

Title I General provisions......................................................................................................... 64 

Title II Definition of the concept of originating products........................................................ 64 

Title III Territorial requirements .............................................................................................. 64 

Title IV Proofs of origin Section 1 Rules applying from the entry into force of the OAD ..... 64 

Title V Arrangements for Administrative cooperation ............................................................ 64 

Title VI Ceuta and Melilla ....................................................................................................... 64 

Title VII Final Provisions......................................................................................................... 64 

Appendices I to XIII................................................................................................................. 64 

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TITLE I 

GENERAL PROVISIONS 

Article 1 

Definitions 

For the purposes of this Annex the following definitions shall apply: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

'EPA countries' means regions or states which are part of the African, Caribbean and 
Pacific (ACP) Group of States and which have concluded agreements establishing, or 
leading  to  the  establishment  of,  Economic  Partnership  Agreements  (EPA),  when 
such  an  EPA  is  either  provisionally  applied,  or  enters  into  force,  whichever  is  the 
earlier.  

'manufacture' means any kind of working or processing including assembly; 

'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; 

'fungible  materials'  means  materials  that  are  of  the  same  kind  and  commercial 
quality,  with  the  same  technical  and  physical  characteristics,  and  which  cannot  be 
distinguished from one another once they are incorporated into the finished product; 

'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); 

'value of materials' in the list in Appendix II 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 OCT. Where 
the value of the originating materials used needs to be established, this point shall be 
applied mutatis mutandis; 

'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  that  the 
price  includes  the  value  of  all  the  materials  used  and  all  other  costs  related  to  its 
production, minus any internal taxes which are, or may be, repaid when the product 
obtained is exported. 

Where the actual price paid does not reflect all costs related to the manufacturing of 
the  product  which  are  actually  incurred  in  the  OCT,  the  ex-works  price  means  the 

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sum of all those costs, minus any internal taxes which are, or may be, repaid when 
the product obtained is exported. 

For  the  purpose  of  this  definition,  where  the  last  working  or  processing  has  been 
subcontracted to a manufacturer, the term ‘manufacturer’ referred to in the first sub-
paragraph  of  this  paragraph  may  refer  to  the  enterprise  that  has  employed  the 
subcontractor. 

'maximum content of non-originating materials' means the maximum content of non-
originating  materials  which  is  permitted  in  order  to  consider  a  manufacture  as 
working or processing sufficient to confer originating status on the  product. It may 
be expressed as a percentage of the ex-works price of the product or as a percentage 
of the net weight of these materials used falling under a specified group of chapters, 
chapter, heading or sub-heading; 

'net weight' means the weight of the goods themselves without packing materials and 
packing containers of any kind; 

'chapters',  'headings'  and  ‘sub-headings’  mean  the  chapters,  the  headings  and  sub-
headings  (four-  or  six-digit  codes)  used  in  the  nomenclature  which  makes  up  the 
Harmonised  System  with  the  changes  pursuant  to  the  Recommendation  of  26  June 
2004 of the Customs Cooperation Council; 

(j) 

(k) 

(l) 

(m) 

'classified'  refers  to  the  classification  of  a  product  or  material  under  a  particular 
heading or sub-heading of the Harmonised System; 

(n) 

'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  document,  by  a  single 
invoice. 

(o) 

(p) 

(q) 

'exporter' means a person exporting the goods to the Union or to an OCT who is able 
to prove the origin of the goods, whether or not the person is the manufacturer and 
whether or not they themselves carry out the export formalities; 

'registered  exporter'  means  an  exporter  who  is  registered  with  the  competent 
authorities of the OCT concerned for the purpose of making out statements on origin 
for the purpose of exporting under this Decision; 

'statement on origin' means a statement made out by the exporter indicating that the 
products covered by it comply with the rules of origin of this Annex, for the purpose 
of  allowing  either  the  person  declaring  the  goods  for  release  for  free  circulation  in 
the  Union  to  claim  the  benefit  of  preferential  tariff  treatment  or  the  economic 
operator  in  a  OCT  importing  materials  for  further  processing  in  the  context  of 
cumulation rules to prove the originating status of such goods. 

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TITLE II 

DEFINITION OF THE CONCEPT OF ORIGINATING PRODUCTS 

Article 2 

General Requirements 

1. 

The following products shall be considered as originating in an OCT: 

(a)  products wholly obtained in an OCT within the meaning of Article 3; 

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

2. 

Originating products made up of materials wholly obtained or sufficiently worked or 
processed  in  two  or  more  OCTs  shall  be  considered  as  products  originating  in  the 
OCT where the last working or processing took place. 

Article 3 

Wholly obtained products 

1. 

The following shall be considered as wholly obtained in an OCT: 

(a)  mineral products extracted from its soil or from its seabed; 

(b)  plants and vegetable products grown or harvested there; 

(c) 

live animals born and raised there; 

(d)  products from live animals raised there; 

(e)  products from slaughtered animals born and raised there; 

(f) 

products obtained by hunting or fishing conducted there; 

(g)  products of aquaculture where the fish, crustaceans and molluscs are born and 

raised there; 

(h)  products  of  sea  fishing  and  other  products  taken  from  the  sea  outside  any 

territorial sea by its vessels; 

(i) 

products made on board its factory ships exclusively from the products referred 
to in point (h); 

(j) 

used articles collected there fit only for the recovery of raw materials; 

(k)  waste and scrap resulting from manufacturing operations conducted there; 

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(l) 

products  extracted  from  the  seabed  or  below  the  seabed  which  is  situated 
outside any territorial sea but where it has exclusive exploitation rights; 

(m)  goods produced there exclusively from products specified in points (a) to (l). 

2. 

The terms 'its vessels' and 'its factory ships' in paragraph 1(h) and (i) shall apply only 
to vessels and factory ships which meet each of the following requirements: 

(a) 

they are registered in an OCT or in a Member State, 

(b) 

they sail under the flag of an OCT or of a Member State, 

(c) 

 they meet one of the following conditions: 

– 

they  are  at  least  50%  owned  by  nationals  of  the  OCTs  or  of  Member 
States; or 

– 

they are owned by companies; 

(i) which have their head office and their main place of business in the OCTs 
or in Member States; and 

(ii)  which  are  at  least  50%  owned  by  OCTs,  public  entities  of  that  country, 
nationals of that country or of Member States. 

The conditions of paragraph 2 may each be fulfilled in Member States or in different 
OCTs.  In  this  case,  the  products  shall  be  deemed  to  have  the  origin  of  the  OCT 
where  the  vessel  or  factory  ship  is  registered  in  accordance  with  point  (a)  of 
paragraph 2. 

Article 4 

Sufficiently worked or processed products 

Without prejudice to Articles 5 and 6, products which are not wholly obtained in an 
OCT within the meaning of Article 3 shall be considered to originate there, provided 
that the conditions laid down in the list in Appendix II for the goods concerned are 
fulfilled. 

If  a  product  which  has  acquired  originating  status  in  an  OCT  in  accordance  with 
paragraph 1  is  further  processed  in  that  OCT  and  used  as  a  material  in  the 
manufacture  of  another  product,  no  account  shall  be  taken  of  the  non-originating 
materials which may have been used in its manufacture. 

The  determination  of  whether  the  requirements  of  paragraph  1  are  met,  shall  be 
carried out for each product. 

However, where the relevant rule is based on compliance with a maximum content of 
non-originating  materials,  in  order  to  take  into  account  fluctuations  in  costs  and 
currency  rates,  the  value  of  the  non-originating  materials  may  be  calculated  on  an 
average basis as set out in paragraph 4. 

3. 

1. 

2. 

3. 

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4. 

5. 

6. 

1. 

In  the  case  referred  to  in  the  second  sub-paragraph  of  paragraph  3,  an  average  ex-
works price of the product and average value of non-originating materials used shall 
be calculated respectively on the basis of the sum of the ex-works prices charged for 
all sales of the products carried out during the preceding fiscal year and the sum of 
the value of all the non-originating materials used in the manufacture of the products 
over the preceding fiscal year as defined in the country of export, or, where figures 
for a complete fiscal year are not available, a shorter period which should not be less 
than three months. 

Exporters having opted for calculations on an average basis shall consistently apply 
such  a  method  during  the  year  following  the  fiscal  year  of  reference,  or,  where 
appropriate,  during  the  year  following  the  shorter  period  used  as  a  reference.  They 
may  cease  to  apply  such  a  method  where  during  a  given  fiscal  year,  or  a  shorter 
representative period of no less than three months, they record that the fluctuations in 
costs or currency rates which justified the use of such a method have ceased. 

The averages referred to in paragraph 4 shall be used as the ex-works price and the 
value  of  non-originating  materials  respectively,  for  the  purpose  of  establishing 
compliance with the maximum content of non-originating materials. 

Article 5 

Insufficient working or processing operations 

Without  prejudice  to  paragraph  3,  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: 

(a)  preserving  operations  to  ensure  that  the  products  remain  in  good  condition 

during transport and storage; 

(b)  breaking-up and assembly of packages; 

(c)  washing, cleaning; removal of dust, oxide, oil, paint or other coverings; 

(d) 

ironing or pressing of textiles and textile articles; 

(e) 

simple painting and polishing operations; 

(f) 

husking and partial or total milling of rice; polishing and glazing of cereals and 
rice; 

(g)  operations  to  colour  or  flavour  sugar  or  form  sugar  lumps;  partial  or  total 

milling of crystal sugar; 

(h)  peeling, stoning and shelling, of fruits, nuts and vegetables; 

(i) 

sharpening, simple grinding or simple cutting; 

(j) 

sifting,  screening,  sorting,  classifying,  grading,  matching  (including  the 
making-up of sets of articles); 

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(k) 

(l) 

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

affixing or printing marks, labels, logos and other like distinguishing signs on 
products or their packaging; 

(m)  simple mixing of products, whether or not of different kinds; mixing of sugar 

with any material; 

(n) 

simple addition of water or dilution or dehydration or denaturation of products; 

(o) 

simple  assembly  of  parts  of  articles  to  constitute  a  complete  article  or 
disassembly of products into parts; 

(p) 

a combination of two or more of the operations specified in points (a) to (o); 

(q) 

slaughter of animals. 

For the purposes of paragraph 1, operations shall be considered simple when neither 
special  skills  nor  machines,  apparatus  or  tools  especially  produced  or  installed  for 
those operations are required for their performance. 

All  the  operations  carried  out  in  an  OCT  on  a  given  product  shall  be  taken  into 
account  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 

Tolerances 

By  way  of  derogation  from  Article  4  and  subject  to  paragraphs  2  and  3  of  this 
Article,  non-originating  materials  which,  according  to  the  conditions  set  out  in  the 
list  in  Appendix  II  are  not  to  be  used  in  the  manufacture  of  a  given  product  may 
nevertheless  be  used,  provided  that  their  total  value  or  net  weight  assessed  for  the 
product does not exceed: 

(a)  15% of the weight of the product for products falling within Chapters 2 and 4 

to 24, other than processed fishery products of chapter 16; 

(b)  15%  of  the  ex-works  price  of  the  product  for  other  products,  except  for 
products falling within Chapters 50 to 63 of the Harmonised System, for which 
the tolerances mentioned in Notes 6 and 7 of Appendix I shall apply. 

Paragraph 1 shall not allow that any of the percentages for the maximum content of 
non-originating materials as specified in the rules laid down in the list in Appendix II 
are exceeded. 

Paragraphs 1 and 2 shall not apply to products wholly obtained in an OCT within the 
meaning  of  Article  3.  However,  without  prejudice  to  Article  5  and  11(2),  the 
tolerance provided for in those paragraphs shall nevertheless apply to the sum of all 
the materials which are used in the manufacture of a product and for which the rule 

2. 

3. 

1. 

2. 

3. 

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laid  down  in  the  list  in  Appendix  I  for  that  product  requires  that  such  materials  be 
wholly obtained. 

Article 7 

Bilateral cumulation 

1. 

2. 

3. 

1. 

2. 

3. 

Without prejudice to Article 2, materials originating in the Union shall be considered 
as materials originating in an OCT when incorporated into a product obtained there, 
provided  that  they  have  undergone  working  or  processing  which  goes  beyond  the 
operations referred to in Article 5(1). 

Without prejudice to Article 2, working or processing carried out in the Union shall 
be  considered  as  having  been  carried  out  in  an  OCT,  when  the  materials  undergo 
subsequent working or processing there. 

For the purpose of cumulation provided for in this Article, the origin of the materials 
shall be established in accordance with this Annex.  

Article 8 

Cumulation with EPA countries 

Without  prejudice  to  Article  2,  materials  originating  in  the  EPA  countries  shall  be 
considered  as  materials  originating  in  an  OCT  when  incorporated  into  a  product 
obtained there, provided that they have undergone working or processing which goes 
beyond the operations referred to in Article 5 (1). 

Without  prejudice  to  Article  2,  working  or  processing  carried  out  in  the  EPA 
countries  shall  be  considered  as  having  been  carried  out  in  an  OCT,  when  the 
materials undergo subsequent working or processing there. 

For the purpose of paragraph 1 of this Article, the origin of the materials originating 
in  an  EPA  country  shall  be  determined  in  accordance  with  the  rules  of  origin 
applicable  to  the  EPA  concerned  and  relevant  provisions  on  proofs  of  origin  and 
administrative cooperation. 

The cumulation provided for in this Article shall not apply to the following:  

(a)  materials originating in the Republic of South Africa which cannot be imported 
directly in the Union duty-free-quota-free in the framework of theEPA between 
the Union and the Southern African Development Community (SADC).  

(b)  materials listed in Appendix XIII.  

4. 

The cumulation provided for in this Article may only be applied provided that: 

(a)  The EPA country supplying the materials and the OCT manufacturing the final 

product have undertaken to: 

– 

comply or ensure compliance with this Annex and, 

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– 

provide  the  administrative  cooperation  necessary  to  ensure  the  correct 
implementation of this Annex both with regard to the Union and between 
themselves; 

(b)  The undertakings referred to in point (a) have been notified to the Commission 

by the OCT involved. 

5. 

Where countries have already complied with paragraph 4 before the entry into force 
of this Decision, a new undertaking shall not be required. 

Article 9 

Cumulation with other countries benefiting from duty-free quota-free to the market of the 
Union under GSP 

1. 

Without  prejudice  to  Article  2,  materials  originating  in  countries  and  territories  set 
out in paragraph 2 of this Article shall  be considered  as materials originating in an 
OCT when incorporated into a product obtained there, provided they have undergone 
working or processing which goes beyond the operations referred to in Article 5(1).  

2. 

For the purposes of paragraph 1, materials shall originate from a country or territory: 

(a)  benefiting from the "Special arrangement for least developed countries" set out 

in the Generalised System of Preferences20;  

(b)  benefiting from duty-free quota-free access to the market of the Union at HS 6-
digit  level  under  the  general  provisions  of  the  Generalised  System  of 
Preferences21;  

3. 

The  origin  of  the  materials  of  the  countries  or  territories  concerned  shall  be 
determined  according  to  the  rules  of  origin  laid  down  pursuant  to  Article  5(2)  of 
Council Regulation (EC) No 732/2008 and in accordance with Articles 32 or 41. 

4. 

The cumulation provided for in this paragraph shall not apply to the following: 

(a)  materials  which  at  importation  to  the  Union  are  subject  to  antidumping  or 
countervailing  duties  when  originating  from  the  country  which  is  subject  to 
these antidumping or countervailing duties; 

(b) 

tuna  products  classified  under  Harmonised  System  Chapters  3  and  16,  which 
are  covered  by  Article  6  of  Council  regulation  (EC)  N°732/2008  of  22 July 
2008  applying  a  scheme  of  generalised  tariff  preferences  for  the  period  from 
1 January  2009 
to 31 December  2011,  and  subsequent  amending  and 
corresponding legal acts; 

20 
21 

Articles 11 and 12 of Council Regulation (EC) No 732/2008 of 22 July 2008 (OJ L 211, 6.8.2008, p. 1.). 
Article 6 of Regulation (EC) No 732/2008. Materials that benefit from duty free treatment by virtue of the special 
incentive arrangement for sustainable development and good governance of Articles 7 to 10 of the same Council 
Regulation, but not under the general arrangement of Article 6 of the same Council Regulation, are not covered by 
this provision.  

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(c)  materials which are covered by Articles 13, 20 and 21 of Council Regulation 

(EC) No 732/200822, and subsequent amending and corresponding legal acts. 

The competent authorities of the OCTs shall notify yearly to the Commission 
the materials, if any, to which cumulation under paragraph 1 has been applied. 

5. 

The  cumulation  provided  for  in  paragraph  1  of  this  Article  may  only  be  applied 
provided that: 

(a) 

the  countries  or  territories  involved  in  the  cumulation  have  undertaken  to 
comply  or  ensure  compliance  with 
the 
administrative co-operation necessary to ensure the correct implementation of 
this Annex, both with regard to the Union and between themselves;  

this  Annex  and 

to  provide 

(b) 

the undertaking referred to in point (a) has been notified to the Commission by 
the OCT concerned. 

The  Commission  shall  publish  in  the  Official  Journal  of  the  European  Union  (C 
series) the date on which the cumulation provided for in this Article may be applied 
with  those  countries  or  territories  listed  in  this  Article  which  have  fulfilled  the 
necessary requirements. 

Article 10 

Extended cumulation 

The Commission may grant, at the request of an OCT, cumulation of origin between 
an  OCT  and  a  country  with  which  the  Union  has  a  free  trade  agreement  in 
accordance  with  Article  XXIV  of  the  General  Agreement  on  Tariffs  and  Trade 
(GATT) in force, provided that the following conditions are met: 

(a) 

the  countries  or  territories  involved  in  the  cumulation  have  undertaken  to 
comply  or  ensure  compliance  with 
the 
administrative co-operation necessary to ensure the correct implementation of 
this Annex, both with regard to the Union and between themselves;  

this  Annex  and 

to  provide 

(b) 

the undertaking referred to in point (a) has been notified to the Commission by 
the OCT concerned. 

The  request  referred  to  in  the  first  subparagraph  shall  be  addressed  to  the 
Commission  in  writing.  It  shall  indicate  the  third  country  or  countries  concerned, 
shall contain a list of the materials subject to cumulation and shall be supported by 
evidence that the conditions laid down in paragraphs 1(a) and (b) of this Article are 
met. 

The  origin  of  the  materials  used  and  the  documentary  proof  of  origin  shall  be 
determined  in  accordance  with  the  rules  laid  down  in  the  relevant  free  trade 

6. 

1. 

2. 

3. 

22 

OJ L 211, 6.8.2008, p. 1. 

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   EN 

 
                                                 
4. 

5. 

6. 

1. 

2. 

3. 

agreement.  The  origin  of  the  products  to  be  exported  to  the  Union  shall  be 
determined in accordance with the rules of origin laid down in this Annex. 

In  order  for  the  obtained  product  to  acquire  originating  status,  it  shall  not  be 
necessary that the materials originating in the third country and used in the OCT in 
the manufacture of the product to be exported to the Union have undergone sufficient 
working  or  processing,  provided  that  the  working  or  processing  carried  out  in  the 
OCT concerned goes beyond the operations described in Article 5(1). 

The  Commission  shall  publish  in  the  Official  Journal  of  the  European  Union  (C 
series)  the  date  on  which  the  extended  cumulation  takes  effect,  the  Union's  Free 
Trade Agreement partner involved in that cumulation, the applicable conditions and 
the list of materials in relation to which the cumulation applies. 

The  Commission  shall  adopt  a  measure  granting  the  cumulation  referred  to  in 
paragraph  1  by  means  of  implementing  acts.  Those  implementing  acts  shall  be 
adopted in accordance with the examination procedure referred to in Article 64(2) 

Article 11 

Unit of qualification 

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

When a consignment consists of a number of identical products classified under the 
same  heading  of  the  Harmonised  System,  each  individual  item  shall  be  taken  into 
account when applying the provisions of this Annex. 

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. 

Article 12 

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 ex-works price thereof, 
shall  be  regarded  as  one  with  the  piece  of  equipment,  machine,  apparatus  or  vehicle  in 
question. 

Article 13 

Sets 

Sets, as defined in General Interpretative Rule 3 of the Harmonised System, shall be regarded 
as originating when all the component products are originating products. 

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When a set is composed of originating and non-originating products, the set as a whole shall 
however  be  regarded  as  originating,  provided  that  the  value  of  the  non-originating products 
does not exceed 15% of the ex-works price of the set. 

Article 14 

Neutral elements 

In order to determine whether a product is an originating product, no account shall be taken of 
the origin of the following which might be used in its manufacture: 

(a) 

(b) 

(c) 

(d) 

1. 

2. 

3. 

energy and fuel; 

plant and equipment; 

machines and tools; 

any  other  goods  which  do  not  enter,  and  which  are  not  intended  to  enter,  into  the 
final composition of the product. 

Article 15 

Accounting segregation 

If  originating  and  non-originating  fungible  materials  are  used  in  the  working  or 
processing  of  a  product,  the  customs  authorities  of  the  Member  States  may,  at  the 
written request of economic operators, authorise the management of materials in the 
Union using the accounting segregation method for the purpose of subsequent export 
to  an  OCT  within  the  framework  of  bilateral  cumulation,  without  keeping  the 
materials on separate stocks.  

The  customs  authorities  of  the  Member  States  may  make  the  granting  of 
authorisation  referred  to  in  paragraph  1  subject  to  any  conditions  they  deem 
appropriate. 

The  authorisation  shall  be  granted  only  if  by  use  of  the  method  referred  to  in 
paragraph  3  it  can  be  ensured  that,  at  any  time,  the  number  of  products  obtained 
which could be considered as ‘originating in the Union’ is the same as the number 
that  would  have  been  obtained  by  using  a  method  of  physical  segregation  of  the 
stocks. 

If  authorised,  the  method  shall  be  applied  and  the  application  thereof  shall  be 
recorded on the basis of the general accounting principles applicable in the Union. 

The beneficiary of the method referred to in paragraph 2 shall make out or, until the 
application  of  the  registered  exporter  system,  apply  for  proofs  of  origin  for  the 
quantity  of  products  which  may  be  considered  as  originating  in  the  Union.  At  the 
request of the customs authorities of the Member States, the beneficiary shall provide 
a statement of how the quantities have been managed. 

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4. 

The  customs  authorities  of  the  Member  States  shall  monitor  the  use  made  of  the 
authorisation referred to in paragraph 1. 

They may withdraw the authorisation in the following cases: 

(a) 

(b) 

the  beneficiary  makes  improper  use  of  the  authorisation  in  any  manner 
whatsoever, or 

the  beneficiary  fails  to  fulfil  any  of  the  other  conditions  laid  down  in  this 
Annex. 

Article 16 

Derogations 

1. 

Upon the Commission's initiative or in response to a request from a Member State or 
an OCT, an OCT may be granted a temporary derogation from the provisions of this 
Annex in any of the following cases: 

(a) 

(b) 

(c) 

internal or external factors temporarily deprive it of the ability to comply with 
the rules for the acquisition of origin provided for in Article 2 where it could 
do so previously;  

it requires time to prepare itself to comply with the rules for the acquisition of 
origin provided for in Article 2;  

the development of existing industries or the creation of new industries justifies 
it. 

2. 

The  request  referred  to  in  paragraph  1  shall  be  addressed  to  the  Commission  in 
writing, by means of the form set out in Appendix X. It shall state the reasons for the 
request and shall contain appropriate supporting documents. 

3. 

The examination of requests shall in particular take into account: 

(a) 

(b) 

(c) 

the level of development or the geographical situation of the OCT concerned, 
having particular regard to the economic and social impact of the decision to be 
taken especially in respect of employment; 

cases where the application of the existing rules of origin would significantly 
affect the ability of an existing industry in the OCT concerned to continue its 
exports to the Union, 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. 

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4. 

5. 

6. 

7. 

8. 

1. 

2. 

The Commission 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 Union industry.  

The  Commission  shall  take  steps  necessary  to  ensure  that  a  decision  is  reached  as 
quickly as possible and shall endeavour to adopt its position within 75 working days 
after the request is received by the Commission. 

The  temporary  derogation  shall  be  limited  to  the  duration  of  the  effects  of  the 
internal  or  external  factors  giving  rise  to  it  or  to  the  length  of  time  needed  for  the 
OCT to achieve compliance with the rules or to fulfil the targets which have been set 
by the derogation, taking into account the particular situation of the OCT concerned 
and its difficulties. 

When a derogation is granted, it is subject to compliance with any requirements laid 
down as to information to be provided to the Commission concerning the use of the 
derogation  and  the  management  of  the  quantities  for  which  the  derogation  was 
granted. 

The Commission shall adopt a measure granting a temporary derogation referred to 
in  paragraph  1  by  means  of  implementing  acts.  Those  implementing  acts  shall  be 
adopted in accordance with the examination procedure referred to in Article 64(2). 

TITLE III 

TERRITORIAL REQUIREMENTS 

Article 17 

Principle of territoriality 

Except as provided for in Articles 7 to 10, the conditions set out in this Annex for 
acquiring originating status shall be fulfilled without interruption in the OCT. 

If originating products exported from the OCT to another country are returned, they 
shall  be  considered  as  non-originating  unless  it  can  be  demonstrated  to  the 
satisfaction of the competent authorities that: 

(a) 

the products returned are the same as those which were exported; and 

(b) 

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

Article 18 

Non-manipulation clause 

1. 

The products declared for release for free circulation in the Union shall be the same 
products as exported from the OCT in which they are considered to originate. They 

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shall not have been altered, transformed in any way or subjected to operations other 
than  operations  to  preserve  them  in  good  condition,  prior  to  being  declared  for 
release  for  free  circulation.  Storage  of  products  or  consignments  and  splitting  of 
consignments  may  take  place  where  carried  out  under  the  responsibility  of  the 
exporter  or  of  a  subsequent  holder  of  the  goods  and  the  products  remain  under 
customs supervision in the country or countries of transit. 

2. 

Compliance  with  paragraph  1  shall  be  considered  as  satisfied  unless  the  customs 
authorities have reason to believe the contrary; in such cases, the customs authorities 
may request the declarant to provide evidence of compliance, which may be given by 
any  means,  including  contractual  transport  documents  such  as  bills  of  lading  or 
factual  or  concrete  evidence  based  on  marking  or  numbering  of  packages  or  any 
evidence related to the goods themselves. 

3. 

Paragraphs 1 and 2 shall apply mutatis mutandis when cumulation under Articles 7 to 
10 applies. 

Article 19 

Exhibitions 

1. 

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

(a) 

(b) 

(c) 

(d) 

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 Union; 

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. 

2. 

3. 

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  organised  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. 

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TITLE IV 

 PROOFS OF ORIGIN  

SECTION 1 
GENERAL REQUIREMENTS 

Article 20 

Amounts expressed in euro 

1. 

2. 

3. 

4. 

5. 

For  the  application  of  the  provisions  of  Articles  26,  31,  43  and  44  in  cases  where 
products  are  invoiced  in  a  currency  other  than  euro,  amounts  in  the  national 
currencies of the Member States of the Union equivalent to the amounts expressed in 
euro shall be fixed annually by each of the countries concerned. 

A  consignment  shall  benefit  from  the  provisions  of  Articles  26,  31,  43  and  44  by 
reference to the currency in which the invoice is drawn up. 

The amounts to be used in any given national currency shall be the equivalent in that 
currency of the amounts expressed in euro as at the first working day of October. The 
amounts  shall  be  communicated  to  the  Commission  by  15  October  and  shall  apply 
from  1  January  the  following  year.  The  Commission  shall  notify  all  countries 
concerned of the relevant amounts. 

A Member State of the Union may round up or down the amount resulting from the 
conversion into its national currency of an amount expressed in euro. The rounded-
off  amount  may  not  differ  from  the  amount  resulting  from  the  conversion  by  more 
than  5  per  cent.  A  Member  State  of  the  Union  may  retain  unchanged  its  national 
currency  equivalent  of  an  amount  expressed  in  euro  if,  at  the  time  of  the  annual 
adjustment provided for in paragraph 3, the conversion of that amount, prior to any 
rounding-off, results in an increase of less than 15 per cent in the national currency 
equivalent.  The  national  currency  equivalent  may  be  retained  unchanged  if  the 
conversion would result in a decrease in that equivalent value. 

The amounts expressed in euro and their equivalents in national currencies of some 
Member States shall be reviewed by the Commission on its own initiative or at the 
request  of  a  Member  State  or  an  OCT.  When  carrying  out  this  review,  the 
Commission  shall  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 euro. 

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SECTION 2 

PROCEDURES BEFORE THE APPLICATION OF THE REGISTERED EXPORTERS 
SYSTEM 

Article 21 

Proof of origin 

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

(a) 

(b) 

1. 

2. 

3. 

4. 

a movement certificate EUR.1, a specimen of which appears in Appendix III; or 

in  the  cases  specified  in  Article  26,  a  declaration,  the  text  of  which  appears  in 
Appendix  VI,  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’). 

Article 22 

Procedure for the issue of a movement certificate EUR1 

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 authorised representative. 

For this purpose, the exporter or his authorised representative shall fill out both the 
movement certificate EUR.1 and the application form, specimens of which appear in 
Appendix  III  and  IV.  These  forms  shall  be  completed  in  accordance  with  the 
provisions of this Annex. 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 Annex. 

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 an OCT, in the Union or in an EPA country and fulfil the other requirements of 
this Annex. 

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5. 

6. 

7. 

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 
Annex.  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. 

Article 23 

Movement certificate EUR1 issued retrospectively 

1. 

Notwithstanding  Article  22,  a  movement  certificate  EUR.1  may  exceptionally  be 
issued after exportation of the products to which it relates if: 

(a) 

(b) 

it  was  not  issued  at  the  time  of  exportation  because  of  errors  or  involuntary 
omissions or special circumstances; or 

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  the 
following phrases in the ‘Remarks’ box (Box 7) of the movement certificate EUR.1. 

‘ISSUED RETROSPECTIVELY’  

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

2. 

3. 

4. 

5. 

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Article 24 

Issue of duplicate movement certificate EUR1  

1. 

2. 

3. 

4. 

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  movement  certificate  EUR.1 shall  be  endorsed  in  the  ‘Remarks’  box 
(Box 7) with the following word: 

‘DUPLICATE’. 

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 25 

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 Union 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 Union or an OCT. The replacement movement certificate(s) EUR.1 shall be issued by the 
customs office under whose control the products are placed. 

Article 26 

Conditions for making out an invoice declaration 

1. 

An invoice declaration as referred to in Article 21 (b) may be made out: 

(a)  by an approved exporter within the meaning of Article 27; or 

(b)  by  any  exporter  for  any  consignment  consisting  of  one  or  more  packages 
containing originating products the total value of which does not exceed EUR 
10,000. 

2. 

3. 

An invoice declaration may be made out if the products concerned can be considered 
as products originating in an OCT, in an EPA country or in the Union and fulfil the 
other requirements of this Annex. 

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 Annex. 

EN 

93 

   EN 

 
 
 
 
4. 

5. 

6. 

1. 

2. 

3. 

4. 

5. 

1. 

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  Appendix  VI,  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  27  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. 

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 27 

Approved exporter 

The customs authorities of the exporting country may authorise any exporter 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 Annex. 

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 28 

Validity of proof of origin 

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

EN 

94 

   EN 

 
 
 
2. 

3. 

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. 

Article 29 

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 30 

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  tariff  headings  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 31 

Exemptions from proof of origin 

1. 

2. 

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 
Annex  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. 

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. 

EN 

95 

   EN 

 
 
 
 
3. 

1. 

2. 

3. 

4. 

5. 

6. 

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 32 

Information procedure for cumulation purposes 

For  the  purpose  of  Articles  2(2)  and  7(1),  the  evidence  of  originating  status  within 
the  meaning  of  this  Annex  of  the  materials  coming  from  another  OCT  or  from  the 
Union shall be given by means of a movement  certificate  EUR.1  or  by  means  of  a 
supplier's  declaration,  provided  by  the  exporter  in  the  country  from  which  the 
materials came. A specimen of a supplier's declaration appears in Appendix VII. 

For  the  purpose  of  Articles  2(2)  and  7(2),  the  evidence  of  working  or  processing 
carried out in another OCT or in the Union shall be given by means of a supplier's 
declaration, provided by the exporter in the country from which the materials came. 
A specimen of the supplier's declaration appears in Appendix VIII. 

For the purpose of paragraphs 1 and 2, a separate supplier's declaration shall be given 
by the supplier for each consignment of materials 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  that 
the  responsible  officer  in  the  supplying  company  is  identified  to  the  satisfaction  of 
the  customs  authorities  in  the  country  or  territory  where  the  suppliers'  declarations 
were  established.  The  said  customs  authorities  may  lay  down  conditions  for  the 
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. 

When Articles 8 and 10 are applied, the evidence of originating status in accordance 
with the provisions of the relevant free-trade agreement between the Union and the 
country concerned shall be given by the proofs of origin established by the relevant 
free-trade agreement. 

When Article 9 is applied, the evidence of originating status in accordance with the 
provisions laid down in Commission Regulation (EEC) No 2454/9323 shall be given 
by the proofs of origin established by the same Regulation. 

In  the  cases  referred  to  in  the  first,  second,  fourth  and  fifth  paragraph,  Box  7  of 
movement  certificate  EUR.1  or  the  invoice  declaration  shall,  as  the  case  may  be, 

23 

OJ L 302, 19.10.1992, p. 1. 

EN 

96 

   EN 

 
 
                                                 
contain  the  indication  'OCT  cumulation',  ‘EU  cumulation’,  'EPA  cumulation', 
'cumulation  with  GSP  country'  or  ‘extended  cumulation  with  country  x’  or  'Cumul 
PTOM',  ‘Cumul  UE’,  'cumul  avec  pays  APE',  ‘cumul  avec  pays  SPG’  or  ‘cumul 
étendu avec le pays x’. 

Article 33 

Supporting documents 

The documents referred to in Article 22(3) and Article 26(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 the Union or in an EPA country and fulfil 
the other requirements of this Annex may consist inter alia of the following:  

(a) 

(b) 

(c) 

(d) 

1. 

2. 

3. 

4. 

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,  or  in  the  Union  or  in  an  EPA  State  where  these  documents  are  used  in 
accordance with domestic law; 

documents proving the working or processing of materials in the OCT, in the Union, 
or  in  an  EPA  country,  issued  or  made  out  in  an  OCT,  in  the  Union  or  in  an  EPA 
country, 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 Union or in an EPA country 
and in accordance with this Annex. 

Article 34 

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 22(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 26(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 22(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. 

EN 

97 

   EN 

 
 
 
Article 35 

Discrepancies and formal errors 

1. 

2. 

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. 

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. 

SECTION 3 

PROCEDURES FOR THE REGISTERED EXPORTER SYSTEM 

SUB-SECTION 1 

PROCEDURES AT EXPORT IN THE OCT 

Article 36 

General requirements 

Benefits from this Decision shall apply in the following cases: 

(a) 

(b) 

1. 

in cases of goods satisfying the requirements of this Annex exported by a registered 
exporter within the meaning of Article 38; 

in cases of any consignment of one or more packages containing originating products 
exported by any exporter, where the total value of the originating products consigned 
does not exceed EUR 10, 000. 

Article 37 

Record of registered exporters 

The competent authorities of the OCTs shall establish and keep up to date at all times 
an electronic record of registered exporters located in that country. The record shall 
be  immediately  updated  where  an  exporter  is  withdrawn  from  the  register  in 
accordance with Article 41(2). 

2. 

The record shall contain the following information: 

EN 

98 

   EN 

 
 
 
 
 
(a)  name  and  full  address  of 

is 
established/resides,  including  the  identifier  of  the  country  or  territory  (ISO 
alpha 2 country code); 

the  place  where  Registered  Exporter 

(b)  number of Registered Exporter; 

(c)  products  intended  to  be  exported  under  this  Decision  (indicative  list  of 
Harmonised  System  chapters  or  headings  as  considered  appropriate  by  the 
applicant); 

(d)  dates as from and until when the exporter is/was registered; 

(e) 

the  reason  for  withdrawal  (registered  exporter’s  request  /  withdrawal  by 
competent  authorities).  This  data  shall  only  be  available  to  competent 
authorities. 

3. 

The competent authorities of the OCTs shall notify the Commission of the national 
numbering system used for designating registered exporters. The number shall begin 
with an ISO alpha 2 country code. 

Article 38 

Request for registration 

To  be  registered,  exporters  shall  lodge  an  application  with  the  competent  authorities  of  the 
OCTs referred to in Article 57(1), using the form a model of which is set out in Appendix XI. 
By  the  completion  of  the  form  exporters  give  consent  to  the  storage  of  the  information 
provided in the database of the Commission and to the publication of non-confidential data on 
the internet. 

The application shall be accepted by the competent authorities only if it is complete. 

Article 39 

Withdrawal of the registration 

1. 

2. 

Registered  exporters  who  no  longer  meet  the  conditions  for  exporting  any  goods 
benefiting from this Decision, or no longer intend to export such goods, shall inform 
the competent authorities in the OCTs who shall immediately remove them from the 
record of registered exporters kept in that OCT. 

Without prejudice to the system of penalties and sanctions applicable in the OCTs, 
where registered exporters intentionally or negligently draw up, or cause to be drawn 
up,  a  statement  on  origin  or  any  supporting  document  which  contains  incorrect 
information  which  leads  to  irregularly  or  fraudulently  obtaining  the  benefit  of 
preferential  tariff  treatment,  the  OCT  competent  authorities  shall  withdraw  the 
exporter from the record of registered exporters kept by the OCT concerned. 

EN 

99 

   EN 

 
 
 
3. 

4. 

Without  prejudice  to  the  possible  impact  of  irregularities  found  on  pending 
verifications, withdrawal from the record of registered exporters shall take effect for 
the future, i.e. in respect of statements made out after the date of withdrawal. 

Exporters  who  have  been  removed  from  the  record  of  registered  exporters  by  the 
competent authorities in accordance with paragraph 2 may only be re-introduced into 
the record of registered exporters once they have proved to the competent authorities 
in the OCT that they have remedied the situation which led to their withdrawal. 

Article 40 

Supporting documents 

1. 

Exporters, registered or not, shall comply with the following obligations: 

(a) 

(b) 

(c) 

(d) 

they shall maintain appropriate commercial accounting records for production 
and supply of goods qualifying for preferential treatment; 

they  shall  keep  available  all  evidence  relating  to  the  material  used  in  the 
manufacture; 

they shall keep all customs documentation relating to the material used in the 
manufacture; 

they  shall  keep  for  at  least  three  years  from  the  end  of  the  year  in  which  the 
statement on origin was made out, or more if required by national law, records 
of: 

– 

– 

the statements on origin they made out; and 

their  originating  and  non-originating  materials,  production  and  stock 
accounts. 

The records referred to in point (d) of paragraph 1 may be electronic but shall allow 
the materials used in the manufacture of the exported products to be traced and their 
originating status to be confirmed. 

The obligations provided for in paragraphs 1 and 2 shall also apply to suppliers who 
provide exporters with supplier's declarations certifying the originating status of the 
goods they supply. 

Article 41 

Proof of origin 

A statement on origin shall be made out by the exporter when the products to which 
it relates are exported, if the goods concerned can be considered as originating in the 
OCT. 

By  derogation  from  paragraph  1,  a  statement  on  origin  may  exceptionally  be  made 
out after exportation (retrospective statement) on condition that it is presented in the 

2. 

3. 

1. 

2. 

EN 

100 

   EN 

 
 
 
3. 

4. 

5. 

6. 

7. 

1. 

2. 

3. 

Member State of declaration for release for free circulation no longer than two years 
after the export. 

The  statement  on  origin  shall  be  provided  by  the  exporter  to  his  customer  in  the 
Union  and  shall  contain  the  particulars  specified  in  Appendix  XII.  A  statement  on 
origin shall be made out in either English or French. 

It may be made out on any commercial document allowing to identify the exporter 
concerned and the goods involved. 

When  cumulation  under  Articles  2  and  7  applies,  the  exporter  of  a  product  in  the 
manufacture of which materials originating in an OCT or in the EU is used shall rely 
on the statement on origin provided by its supplier.  

In  these  cases,  the  statement  on  origin  made  out  by  the  exporter  shall,  as  the  case 
may be, contain the indication ‘EU cumulation’, ‘OCT cumulation’ or ‘Cumul UE’, 
‘cumul PTOM’. 

When  cumulation  under  Articles  8  and  10  applies,  the  exporter  of  a  product  in  the 
manufacture  of  which  materials  originating  in  a  country  with  which  extended 
cumulation  is  permitted  are  used  shall  rely  on  the  proof  of  origin  provided  by  its 
supplier  and  issued  in  accordance  with  the  provisions  of  the  relevant  free-trade 
agreement between the Union and the country concerned. 

In  this  case,  the  statement  on  origin  made  out  by  the  exporter  shall  contain  the 
indication 'cumulation with EPA country' or ‘extended cumulation with country x’ or 
'cumul avec pays APE' or ‘cumul étendu avec le pays x’. 

When cumulation of Article 9 applies, the evidence of originating status established 
in accordance with the provisions laid down in Regulation (EEC) No 2454/93 , shall 
be given by the proofs of origin established by the same Regulation. 

In  this  case,  the  statement  on  origin  made  out  by  the  exporter  shall  contain  the 
indication 'cumulation with GSP country' or ‘cumul avec pays SPG’. 

Article 42 

Submission of a proof of origin 

A statement on origin shall be made out for each consignment. 

A statement on origin shall be valid for twelve months from the date of its making 
out by the exporter. 

A single statement on origin may cover several consignments if the goods meet the 
following conditions: 

(a) 

they are dismantled or non-assembled products within the meaning of general 
rule 2(a) of the Harmonized system; 

EN 

101 

   EN 

 
 
(b) 

they  are  falling  within  Section  XVI  or  XVII  or  heading  7308  or  9406  of  the 
Harmonized System; and 

(c) 

 they are intended to be imported by instalments. 

SUB-SECTION 2 

PROCEDURES AT RELEASE FOR FREE CIRCULATION IN THE UNION 

Article 43 

Submission of proof of origin 

1. 

2. 

3. 

The  customs  declaration  for  release  for  free  circulation  shall  make  reference  to  the 
statement  on  origin.  The  statement  on  origin  shall  be  kept  at  the  disposal  of  the 
customs  authorities,  which  may  request  its  submission  for  the  verification  of  the 
declaration. Those authorities may also require a translation of the statement into the 
official language, or one of the official languages, of the Member State concerned. 

Where  the  application  of  the  benefits  from  this  Decision  is  requested  by  the 
declarant,  without  a  statement  on  origin  being  in  his  possession  at  the  time  of  the 
acceptance of the customs declaration for release for free circulation, that declaration 
shall  be  considered  as  being  incomplete  within  the  meaning  of  Article  253(1)  of 
Regulation (EEC) No 2454/93 and treated accordingly. 

Before  declaring  goods  for  release  for  free  circulation,  the  declarant  shall  take  due 
care that the goods comply with the rules in this Annex by, in particular, checking: 

(a) 

in the database referred to in Article 58 that the exporter is registered to make 
statements  on  origin,  except  where  the  total  value  of  the  originating  products 
consigned does not exceed EUR 10,000; and 

(b) 

that the statement on origin is made out in accordance with Appendix XII. 

Article 44 

Exemption from proof of origin 

1. 

The  following  products  shall  be  exempted  from  the  obligation  to  make  out  and 
produce a statement on origin: 

(a)  products  sent  as  small  packages  from  private  persons  to  private  persons,  the 

total value of which does not exceed EUR 500; 

(b)  products forming part of travellers' personal luggage, the total value of which 

does not exceed EUR 1200. 

2. 

The products referred to in paragraph 1 shall meet the following conditions: 

EN 

102 

   EN 

 
 
 
 
(a) 

they are not imported by way of trade; 

(b) 

they  have  been  declared  as  meeting  the  conditions  for  benefiting  from  this 
Decision; 

(c) 

there is no doubt as to the veracity of the declaration referred to in point (b). 

3. 

For  the  purposes  of  point  (a)  of  paragraph  2,  imports  shall  not  be  considered  as 
imports by way of trade if all the following conditions are met: 

(a) 

the imports are occasional; 

(b) 

(c) 

the imports consist solely of products for the personal use of the recipients or 
travellers or their families;  

it  is  evident  from  the  nature  and  quantity  of  the  products  that  no  commercial 
purpose is in view. 

Article 45 

Discrepancies and formal errors 

1. 

2. 

The discovery of slight discrepancies between the particulars included in a statement 
on origin and those mentioned in the documents submitted to the customs authorities 
for  the  purpose  of  carrying  out  the  formalities  for  importing  the  products  shall  not 
ipso  facto  render the  statement  on  origin null and void  if it  is duly  established  that 
that document does correspond to the products concerned. 

Obvious formal errors such as typing errors on a statement on origin shall 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 that document. 

Article 46 
Validity of proof of origin 

Statements on origin which are submitted to the customs authorities of the importing country 
after  the  period  of  validity  mentioned  in  Article  41(2)  may  be  accepted  for  the  purpose  of 
applying the tariff preferences, where 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 statements on origin where the products 
have been presented to customs before the said final date. 

Article 47 

Procedure for importation by instalments 

1. 

The procedure referred to in Article 42(3) shall apply for a period determined by the 
customs authorities of the Member States. 

EN 

103 

   EN 

 
 
2. 

1. 

The  customs  authorities  of  the  Member  States  of  importation  supervising  the 
successive releases for free circulation shall verify that the successive consignments 
are  part  of  the  dismantled  or  non-assembled  products  for  which  the  statement  on 
origin has been made out. 

Article 48 

Replacement of a statement of origin 

Where products have not yet been released for free circulation, a statement on origin 
may be replaced by one or more replacement statements on origin, made out by the 
holder of the goods, for the purpose of sending all or some of the products elsewhere 
within the customs territory of the Union. For being entitled to make out replacement 
statements  on  origin,  holders  of  the  goods  need  not  be  registered  exporters 
themselves. 

2. 

Where  a  statement  on  origin  is  replaced,  the  original  statement  on  origin  shall 
indicate the following: 

(a) 

the particulars of the replacement statement(s) on origin; 

(b) 

the names and addresses of the consignor; 

(c) 

the consignee(s) in the Union. 

The original statement on origin shall be marked as "Replaced" or "Remplacée", as 
the case may be. 

3. 

On the replacement statement on origin the following shall be indicated: 

(a) 

all particulars of the re-consigned products; 

(b) 

 the date on which the original statement on origin was made out; 

(c) 

all the necessary mentions as specified under Appendix XII; 

(d) 

 the name and address of the consignor of the products in the Union; 

(e) 

 the name and address of the consignee in the Union; 

(f) 

 the date and place of the replacement. 

The person making out the replacement statement on origin may attach a copy of the 
initial statement on origin to the replacement statement on origin. 

4. 

5. 

Paragraphs  1,  2  and  3  shall  apply  mutatis  mutandis  to  statements  replacing 
statements on origin that are themselves replacement statements on origin.  

Paragraphs  1,  2  and  3  shall  apply  mutatis  mutandis  to  statements  replacing 
statements  on  origin  further  to  the  splitting  of  a  consignment  carried  out  in 
accordance with Article 18. 

EN 

104 

   EN 

 
 
1. 

2. 

3. 

1. 

Article 49 

Verification of statements of origin 

The customs authorities may, where they have doubts with regard to the originating 
status  of  the  products  request  the  declarant  to  produce,  within  a  reasonable  time 
period which they shall specify, any available evidence for the purpose of verifying 
the accuracy of the indication on origin of the declaration or the compliance with the 
conditions under Article 18. 

The  customs  authorities  may  suspend  the  application  of  the  preferential  tariff 
measure for the duration of the verification procedure laid down in Article 64 where: 

(a) 

the  information  provided  by  the  declarant  is  not  sufficient  to  confirm  the 
originating  status  of  the  products  or  the  compliance  with  the  conditions  laid 
down in Article 17 (2) or Article 18; 

(b) 

the declarant does not reply within the time period allowed for provision of the 
information referred to in paragraph 1. 

While  awaiting  either  the  information  requested  from  the  declarant,  referred  to  in 
paragraph 1, or the results of the verification procedure, referred to in paragraph 2, 
release of the products shall be offered to the importer subject to any precautionary 
measures judged necessary. 

Article 50 

Denial of preferences 

The customs authorities of the Member State of importation shall refuse entitlement 
to  the  benefits  of  this  Decision,  without  being  obliged  to  request  any  additional 
evidence or send a request for verification to the OCT where: 

(a) 

the goods are not the same as those mentioned in the statement on origin; 

(b) 

the declarant fails to submit a statement on origin for the products concerned, 
where such a statement is required; 

(c)  without prejudice to point (b) of Article 36 and to Article 44 (1), the statement 
on origin in possession of the declarant has not been made out by an exporter 
registered in the OCT; 

(d) 

 the statement on origin is not made out in accordance with Appendix XII; 

(e) 

the conditions of Article 18 are not met; 

2. 

The customs authorities of the Member State of importation shall refuse entitlement 
to  the  benefits  of  this  Decision,  following  a  request  for  verification  within  the 
meaning of Article 60 addressed to the competent authorities of the OCTs, where the 
customs authorities of the Member State of importation: 

EN 

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(a)  have received a reply according to which the exporter was not entitled to make 

out the statement on origin; 

(b)  have  received  a  reply  according  to  which  the  products  concerned  are  not 
originating in the OCT concerned or the conditions of Article 17 (2) were not 
met; 

(c)  had  reasonable  doubt  as  to  the  validity  of  the  statement  on  origin  or  the 
accuracy of the information provided by the declarant regarding the true origin 
of the products in question when they made the request for verification; and 

– 

– 

have  received  no  reply  within  the  time  period  permitted  in  accordance 
with Article 60; 

or 

have  received  a  reply  not  providing  adequate  answers  to  the  questions 
raised in the request. 

TITLE V 

ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION 

SECTION 1 

GENERAL  

Article 51 

General Principles 

1. 

In order to ensure the proper application of the preferences, OCTs shall: 

(a)  put  in  place  and  to  maintain  the  necessary  administrative  structures  and 
systems required for the implementation and management in that country of the 
rules and procedures laid down in this Annex, including where appropriate the 
arrangements necessary for the application of cumulation; 

(b) 

cooperate,  through  their  competent  authorities  with  the  Commission  and  the 
customs authorities of the Member States. 

2. 

The cooperation referred to in point (b) of paragraph 1 shall consist of:  

(a)  providing all necessary support in the event of a request by the Commission for 
the monitoring by it of the proper implementation of this Annex in the country 
concerned, including verification visits on the spot by the Commission or the 
customs authorities of the Member States; 

EN 

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(b) 

 without prejudice to Articles 49, 50, 55 and 56, verifying the originating status 
of  products  and  the  compliance  with  the  other  conditions  laid  down  in  this 
Annex,  including  verification  visits  on  the  spot,  where  requested  by  the 
Commission or the customs authorities of the Member States in the context of 
origin investigations; 

(c)  where the verification procedure or any other available information appears to 
indicate that the provisions of this Annex are being contravened, the OCT on 
its own initiative or at the request of the Commission or the customs authorities 
of the Member States shall carry out appropriate enquiries or arrange for such 
enquiries  to  be  carried  out  with  due  urgency  to  identify  and  prevent  such 
contraventions.  The  Commission  and  the  customs  authorities  of  the  Member 
States may participate in the enquiries. 

3. 

OCTs shall submit to the Commission, before 1 January 2015, a formal undertaking 
to comply with the requirements of paragraph 1. 

Article 52 

Publication requirements and compliance 

1. 

2. 

3. 

4. 

The  Commission  shall  publish  in  the  Official  Journal  of  the  European  Union  (C 
Series)  the  list  of  OCTs  and  the  date  on  which  they  are  considered  to  meet  the 
conditions referred to in Articles 51 and 54, or in Article 57. The Commission shall 
update this list when a new OCT fulfils the same conditions. 

Products originating within the meaning of this Annex in an  OCT  shall benefit, on 
release for free circulation in the Union, from the tariff preferences only on condition 
that  they  were  exported  on  or  after  the  date  specified  in  the  list  referred  to  in 
paragraph 1. 

An OCT shall be considered to comply with Articles 51 and 54, or Article 57 on the 
date on which it has:  

(a)  made the notification referred to in Article 54(1) or 57(1) and, when relevant, 

Article 54(2) and, 

(b) 

submitted the undertaking referred to in Article 51(1). 

For the implementation of Section 3 of Title IV and Section 3 of Title V, OCTs shall 
submit  information  referred  to  in  Article  57(1)(b)  to  the  Commission  at  least  three 
months  before  the  actual  application  in  their  territories  of  the  registered  exporter 
system.  

EN 

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Article 53 

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. 

SECTION 2 

METHODS OF ADMINISTRATIVE COOPERATION BEFORE THE APPLICATION 
OF THE REGISTERED EXPORTER SYSTEM 

Article 54 

Communication of stamps and addresses 

1. 

The OCTs shall notify to the Commission the names and addresses of the authorities 
situated in their territory which are: 

(a)  part of the governmental authorities of the country concerned and empowered 
to support the Commission and the customs  authorities of the  Member  States 
through the administrative co-operation as provided for in this Title; 

(b) 

customs authorities competent to issue movement certificates EUR.1 and carry 
out  the  subsequent  verification  of  movement  certificates  EUR.1  and  invoice 
declarations; 

OCTs shall send to the Commission specimens of the stamps used. 

The  OCTs  shall  inform  the  Commission  immediately  of  any  changes  to  the 
information notified under paragraphs 1 and 2. 

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

Article 55 

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 Annex. 

For  the  purposes  of  implementing  the  provisions  of  paragraph  2,  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 
documents,  to  the  customs  authorities  of  the  exporting  country  giving,  where 

2. 

3. 

4. 

1. 

2. 

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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. 

The  verification  shall  be  carried  out  by  the  customs  authorities  of  the  exporting 
country.  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  an  OCT,  in  the  Union  or  in  an  EPA  country  and  fulfil  the 
other requirements of this Annex. 

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 
in  exceptional 
requesting  customs  authorities  shall,  except 
products, 
circumstances, refuse entitlement to the preferences.  

the 

Article 56 

Verification of suppliers' declarations 

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  country  where  the  declaration  was  made  to  issue  an 
information certificate, a specimen of which appears in Appendix IX. 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. 

3. 

4. 

5. 

6. 

1. 

2. 

3. 

EN 

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   EN 

 
 
4. 

5. 

6. 

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. 

SECTION 3 

METHODS OF ADMINISTRATIVE COOPERATION APPLICABLE FOR THE 
REGISTERED EXPORTER SYSTEM 

Article 57 

Communication of stamps and addresses 

1. 

The OCTs shall notify to the Commission the names and addresses of the authorities 
situated in their territory which are: 

(a)  part of the governmental authorities of the country concerned and empowered 
to support the Commission and the customs  authorities of the  Member  States 
through the administrative co-operation as provided for in this Title; 

(b)  part of the governmental authorities of the country concerned, or act under the 
authority  of  the  government,  and  empowered  to  register  exporters  and  to 
withdraw them from the record of registered exporters; 

The  OCTs  shall  inform  the  Commission  immediately  of  any  changes  to  the 
information notified under paragraphs 1 and 2. 

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

Article 58 

Establishment of a database of registered exporters 

The Commission shall establish an electronic database of registered exporters on the 
basis  of  the  information  supplied  by  the  governmental  authorities  of  OCTs  and  the 
customs authorities of Member States. 

Only  the  Commission  shall  have  an  access  to  the  database  and  the  data  contained 
therein.  The  authorities  referred  to  in  paragraph  1  shall  ensure  that  data 
communicated to the Commission are kept up to date, and are complete and accurate. 

2. 

3. 

1. 

2. 

EN 

110 

   EN 

 
 
 
 
3. 

4. 

5. 

6. 

7. 

8. 

9. 

The data processed in the database referred to in paragraph 1 shall be disclosed to the 
public via the internet, with the exception of the confidential information contained 
in  boxes  2  and  3  of  the  application  to  become  a  registered  exporter  referred  to  in 
Article 28. 

Personal data processed in the database referred to in paragraph 1 shall be transferred 
or made available to third countries or international organisations only in accordance 
with Article 9 of Regulation (EC) N° 45/2001. 

This Decision shall in no way affect the level of protection of individuals with regard 
to  the  processing  of  personal  data  under  the  provisions  of  Union  and  national  law, 
and  in  particular  does  not  alter  either  the  obligations  of  Member  States  relating  to 
their processing of personal data under Directive 95/46/EC or the obligations of the 
Union  institutions  and  bodies  relating  to  their  processing  of  personal  data  under 
Regulation (EC) No 45/2001 when fulfilling their responsibilities. 

Identification and registration data of exporters, constituted by the set of data listed 
in points 1, 3 (relating to description of activities), 4 and 5 of Appendix XI shall be 
published  by  the  Commission  on  the  internet  only  if  the  exporters  concerned  have 
freely given prior specific and informed written consent. 

Exporters  shall  be  provided  with  the  information  laid  down  in  Article  11  of 
Regulation (EC) No 45/2001.  

The rights of persons with regard to their registration data listed in Appendix XI and 
processed  in  national  systems  shall  be  exercised  in  accordance  with  the  law  of  the 
Member State which stored their personal data implementing Directive 95/46/EC. 

The  rights  of  persons  with  regard  to  the  processing  of  personal  data  in  the  central 
database  referred  to  in  paragraphs  1  to  4  shall  be  exercised  in  accordance  with 
Regulation (EC) No 45/2001. 

10. 

The  national  supervisory  data  protection  authorities  and  the  European  Data 
Protection Supervisor, each acting within the scope of their respective competences, 
shall cooperate actively and ensure coordinated supervision of the database referred 
to in paragraphs 1 to 4. 

Article 59 

Control of origin 

1. 

For  the  purpose  of  ensuring  compliance  with  the  rules  concerning  the  originating 
status of products, the competent authorities of the OCT shall carry out 

(a)  verifications of the originating status of products at the request of the customs 

authorities of the Member States; 

(b) 

regular controls on exporters on their own initiative. 

Extended  cumulation  shall  only  be  permitted  under  Article  10,  if  a  country  with 
which the Union has a free-trade agreement in force has agreed to provide the OCTs 

EN 

111 

   EN 

 
 
2. 

3. 

1. 

with its support in matters of administrative cooperation in the same way as it would 
provide such support to the customs authorities of the Member States in accordance 
with the relevant provisions of the free-trade agreement concerned. 

The  controls  referred  to  in  point  (b)  of  paragraph  1  shall  ensure  the  continued 
compliance of exporters with their obligations. They shall be carried out at intervals 
determined  on  the  basis  of  appropriate  risk  analysis  criteria.  For  that  purpose,  the 
competent authorities of the OCTs shall require exporters to provide copies or a list 
of the statements on origin they have made out. 

The competent authorities of the OCTs shall have the right to call for any evidence 
and  to  carry  out  any  inspection  of  the  exporter's  accounts  and,  where  appropriate, 
those  of  producers  supplying  the  exporter,  including  at  the  premises,  or  any  other 
check considered appropriate. 

Article 60 

Verifications of proof of origin 

Subsequent  verifications  of  statements  on  origin  shall  be  carried  out  at  random  or 
whenever the customs authorities of the Member States have reasonable doubts as to 
their authenticity, the originating status of the products concerned or the fulfilment of 
other requirements of this Annex. 

Where  the  customs  authorities  of  a  Member  State  request  the  cooperation  of  the 
competent  authorities  of  an  OCT  to  carry  out  a  verification  of  the  validity  of 
statements  on  origin,  the  originating  status  of  products,  or  of  both,  it  shall,  where 
appropriate, indicate on its request the reasons why it has reasonable doubts on the 
validity of the statement on origin or the originating status of the products. 

A  copy  of  the  statement  on  origin  and  any  additional  information  or  documents 
suggesting  that  the  information  given  on  that  statement  is  incorrect  may  be 
forwarded in support of the request for verification. 

The requesting Member State shall set a 6-month initial deadline to communicate the 
results of the verification, starting from the date of the verification request. 

2. 

If  in  cases  of  reasonable  doubt  there  is  no  reply  within  the  period  specified  in 
paragraph 1 or if the reply does not contain sufficient information to determine the 
real  origin  of the  products, a second communication shall be sent to the  competent 
authorities.  This  communication  shall  set  a  further  deadline  of  not  more  than  6 
months. 

Article 61 

Other provisions 

1. 

Section III of Title V and Section III of Title VI shall apply mutatis mutandis to: 

(a) 

exports from the Union to an OCT for the purpose of bilateral cumulation; 

EN 

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(b) 

exports  from  one  OCT  to  another  for  the  purpose  of  OCT  cumulation  as 
provided for in Article 2 (2). 

2. 

Union exporters shall be considered by the customs authority of a Member State at 
their  request  as  registered  exporters  for  the  purposes  of  the  benefits  from  this 
Decision where they fulfil the following conditions: 

(a) 

they have an EORI number in accordance with Articles 4k to 4t of Regulation 
(EEC) No 2454/93; 

(b) 

they have the status of 'approved exporter' under a preferential arrangement; 

(c) 

they provide in their request addressed to the customs authority of the Member 
State  the  following  data  set  out  in  the  form  a  model  of  which  appears  in 
Appendix XI: 

– 

– 

the details set out in boxes 1 and 4; 

the undertaking set out in box 5. 

TITLE VI 

CEUTA AND MELILLA 

Article 62 

1. 

2. 

3. 

The provisions of this Annex concerning the issue, use and subsequent verification of 
proofs of origin shall apply mutatis mutandis to products exported from an OCT to 
Ceuta  and  Melilla  and  to  products  exported  from  Ceuta  and  Melilla  to  an  OCT  for 
the purposes of bilateral cumulation. 

Ceuta and Melilla shall be considered as a single territory. 

The  Spanish  customs  authorities  shall  be  responsible  for  the  application  of  this 
Annex in Ceuta and Melilla. 

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TITLE VII 

FINAL PROVISIONS 

Article 63 

Derogation to the registered exporter system 

By  way  of  derogation,  the  Commission  may  adopt  decisions  allowing  to  apply 
Articles 21 to 35 and Articles 54 to 56 on exports from one or several OCTs after 1 
January 2017.  

The derogation shall be limited to the duration necessary for the OCT concerned to 
be in a position to apply Articles 38 to 50 and Articles 57 to 61. 

The OCTs wishing to take advantage of the derogation provided for in paragraph 1 
shall address a request to the Commission. The request shall indicate the time needed 
until the OCT concerned is considered to be in a position to apply Articles 38 to 50 
and Articles 57 to 61.  

The Commission shall adopt a measure granting a temporary derogation referred to 
in  paragraph  1  by  means  of  implementing  acts.  Those  implementing  acts  shall  be 
adopted in accordance with the examination procedure referred to in Article 64(2). 

Article 64 

Committee procedures 

The  Commission  shall  be  assisted  by  the  Customs  Code  Committee  established  by 
Article 247a of Regulation (EEC) No 2913/92. 

Where reference is made to this paragraph, Article 5 of regulation (EU) No 182/2011 
shall apply. 

Article 65 

Application 

This Annex shall apply from the date of entry into force of this Decision.  

Article 52(3)(b) shall apply from 1 January 2015.  

Article 8(3)(b) shall apply until 30 September 2015.  

Articles 21 to 35 and Articles 54 to 56 shall apply until 31 December 2016. 

Articles  38  to  50  and  Articles  57  to  61  shall  apply  from  1  January  2017.

1. 

2. 

3. 

1. 

2. 

1. 

2. 

3. 

4. 

5. 

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APPENDIX I 

INTRODUCTORY NOTES  

Note 1 – General introduction 

This  Annex  lays  down  the  conditions  pursuant  to  Article  4  under  which  products  shall  be 
considered to originate in the OCT concerned. There are four different types of rules, which 
vary according to the product: 

(a) 

(b) 

(c) 

(d) 

through  working  or  processing  a  maximum  content  of  non-originating  materials  is 
not exceeded; 

through  working  or  processing  the  4-digit  Harmonized  System  heading  or  6-digit 
Harmonized  System  sub-heading  of  the  manufactured  products  becomes  different 
from the 4-digit Harmonized System heading or 6-digit sub-heading respectively of 
the materials used; 

a specific working and processing operation is carried out; 

working or processing is carried out on certain wholly obtained materials. 

Note 2 – The structure of the list 

2.1. 

Columns 1 and 2 describe the product obtained. Column 1 gives the chapter number, 
4-digit  heading  or  6-digit  sub-heading  number  used  in  the  Harmonised  System,  as 
appropriate.  Column  2  gives  the  description  of  goods  used  in  that  system  for  that 
heading or chapter. For each entry in columns 1 and 2, subject to Note 2.4, one or 
more  rules  ("qualifying  operations")  are  set  out  in  column  3.  These  qualifying 
operations concern only non-originating materials. Where, in some cases, the entry in 
column 1 is preceded by “ex”, this signifies that the rule in column 3 applies only to 
the part of that heading as described in column 2. 

2.2.  Where several Harmonised System headings or sub-headings 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 rule in column 3 applies to all products 
which, under the Harmonised System, are classified in headings of the chapter or in 
any of the headings or sub-headings grouped together in column 1. 

2.3.  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 rule in column 3. 

2.4 

Where  two  alternative  rules  are  set  out  in  column  3,  separated  by  "or",  it  is  at  the 
choice of the exporter which one to use. 

Note 3 – Examples of how to apply the rules 

3.1. 

Article 4(2), concerning products having acquired originating status which are used 
in  the  manufacture  of  other  products,  shall  apply,  regardless  of  whether  this  status 
has  been  acquired  inside  the  factory  where  these  products  are  used  or  in  another 
factory in the OCT or in the Union. 

EN 

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3.2. 

Pursuant to Article 5, the working or processing carried out must go beyond the list 
of operations mentioned in that Article. If it does not, the goods shall not qualify for 
the granting of the benefit of preferential tariff treatment, even if the conditions set 
out in the list below are met. 

Subject  to  the  provision  referred  to  in  the  first  sub-paragraph,  the  rules  in  the  list 
represent 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. 

3.3.  Without prejudice to Note 3.2, where a rule uses the expression “Manufacture from 
materials  of  any  heading”,  then  materials  of  any  heading(s)  (even  materials  of  the 
same description and heading as the product) may 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  ...”  or  “Manufacture  from  materials  of  any  heading, 
including other materials of the same heading as the product” means that materials of 
any heading(s) may be used, except those of the same description as the product as 
given in column 2 of the list. 

3.4.  When a rule in the list specifies that a product may be manufactured from more than 
one material, this means that one or more materials may be used. It does not require 
that all be used. 

3.5.  Where  a  rule  in  the  list  specifies  that  a  product  must  be  manufactured  from  a 
particular  material,  the  rule  does  not  prevent  the  use  also  of  other  materials  which, 
because of their inherent nature, cannot satisfy this condition. 

Note 4 – General provisions concerning certain agricultural goods 

4.1. 

4.2. 

Agricultural goods falling within Chapters 6, 7, 8, 9, 10, 12 and heading 2401 which 
are grown or harvested in the territory of  an  OCT shall  be treated as originating in 
the  territory  of  that  country,  even  if  grown  from  seeds,  bulbs,  rootstock,  cuttings, 
grafts, shoots, buds, or other live parts of plants imported from another country. 

In cases where the content of non-originating sugar in a given product is subject to 
limitations, the weight of sugars of headings 1701 (sucrose) and 1702 (e.g., fructose, 
glucose, lactose, maltose, isoglucose or invert sugar) used in the manufacture of the 
final  product  and  used  in  the  manufacture  of  the  non-originating  products 
incorporated  in  the  final  product  is  taken  into  account  for  the  calculation  of  such 
limitations. 

EN 

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Note 5 - Terminology used in respect of certain textile products 

5.1. 

5.2. 

5.3. 

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  which  have  been  carded, 
combed or otherwise processed, but not spun. 

The term “natural fibres” includes horsehair of heading 0503, silk of headings 5002 
and 5003, as well as wool-fibres and fine or coarse animal hair of headings 5101 to 
5105, cotton fibres of headings 5201 to 5203, and other vegetable fibres of headings 
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. 

5.4. 

The term “man-made staple fibres” is used in the list to refer to synthetic or artificial 
filament tow, staple fibres or waste, of headings 5501 to 5507. 

Note 6 - Tolerances applicable to products made of a mixture of textile materials 

6.1.  Where, for a given product in the list, 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 and which, taken together, represent 10% or less of the 
total weight of all the basic textile materials used. (See also Notes 6.3 and 6.4) 

6.2. 

However,  the  tolerance  mentioned  in  Note  6.1  may  be  applied  only  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; 

flax; 

true hemp; 

jute and other textile bast fibres; 

sisal and other textile fibres of the genus Agave; 

EN 

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– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

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 poly(phenylene sulphide); 

synthetic man-made staple fibres of poly(vinyl 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 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 5605; 

glass fibres; 

metal fibres. 

Example: 

A  yarn,  of  heading  5205,  made  from  cotton  fibres  of  heading  5203  and  synthetic 
staple fibres of heading 5506, is a mixed yarn. Therefore, non-originating synthetic 
staple  fibres  which  do  not  satisfy  the  origin  rules  may  be  used,  provided  that  their 
total weight does not exceed 10% of the weight of the yarn. 

EN 

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Example: 

A  woollen  fabric,  of  heading  5112,  made  from  woollen  yarn  of  heading  5107  and 
synthetic  yarn  of  staple  fibres  of  heading  5509,  is  a  mixed  fabric.  Therefore, 
synthetic yarn which does not satisfy the origin rules, or woollen yarn which does not 
satisfy the origin rules, or a combination of the two, may be used, provided that their 
total weight does not exceed 10% of the weight of the fabric. 

Example: 

Tufted textile fabric, of heading 5802, made from cotton yarn of heading 5205 and 
cotton fabric of heading 5210, is only a mixed product if the cotton fabric is itself a 
mixed  fabric  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 
5205  and synthetic fabric of heading 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”,  the  tolerance  is  20%  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  a  transparent  or  coloured  adhesive 
between two layers of plastic film”, the tolerance is 30% in respect of this strip.  

6.3. 

6.4. 

Note 7 - Other tolerances applicable to certain textile products 

7.1.  Where,  in  the  list,  reference  is  made  to  this  Note,  textile  materials  which  do  not 
satisfy  the  rule  set  out  in  the  list  in  column  3  for  the  made-up  product  concerned, 
may  be  used,  provided  that  they  are  classified  in  a  heading  other  than  that  of  the 
product  and  that  their  value  does  not  exceed  8  %  of  the  ex-works  price  of  the 
product. 

7.2.  Without prejudice to Note 7.3, materials, which are not classified within Chapters 50 
to 63, may be used freely in the manufacture of textile products, whether or not they 
contain textiles. 

Example: 

If a rule in the list provides that, for a particular textile item (such as trousers), yarn 
must be used, this does not prevent the use of metal items, such as buttons, because 
buttons are not classified within Chapters 50 to 63. For the same reason, it does not 
prevent  the  use  of  slide-fasteners,  even  though  slide-fasteners  normally  contain 
textiles. 

EN 

119 

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7.3.  Where  a  percentage  rule  applies,  the  value  of  materials  which  are  not  classified 
within Chapters 50 to 63 must be taken into account when calculating the value of 
the non-originating materials incorporated. 

Note 8 - Definition of specific processes and simple operations carried out in respect of 
certain products of Chapter 27 

8.1. 

For  the  purposes  of  headings  ex  2707  and  2713,  the  “specific  processes”  are  the 
following: 

(a)  vacuum-distillation; 

(b) 

redistillation by a very thorough fractionation-process24; 

(c) 

cracking; 

(d) 

reforming; 

(e) 

extraction by means of selective solvents; 

(f) 

the  process  comprising  all  of  the  following  operations:  processing  with 
concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with 
alkaline  agents;  decolourisation  and  purification  with  naturally-active  earth, 
activated earth, activated charcoal or bauxite; 

(g)  polymerisation; 

(h) 

alkylation; 

(i) 

isomerisation. 

8.2. 

For the purposes of headings 2710, 2711 and 2712, the “specific processes” are the 
following: 

(a)  vacuum-distillation; 

(b) 

redistillation by a very thorough fractionation-process25; 

(c) 

cracking; 

(d) 

reforming; 

(e) 

extraction by means of selective solvents; 

(f) 

the  process  comprising  all  of  the  following  operations:  processing  with 
concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with 
alkaline  agents;  decolourisation  and  purification  with  naturally-active  earth, 
activated earth, activated charcoal or bauxite; 

24

25

See additional explanatory Note 4(b) to Chapter 27 of the Combined Nomenclature. 
See additional explanatory Note 4(b) to Chapter 27 of the Combined Nomenclature. 

EN 

120 

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(g)  polymerisation; 

(h) 

alkylation; 

(i) 

 isomerisation; 

(j) 

(k) 

(l) 

in  respect  of  heavy  oils  of  heading  ex  2710  only,  desulphurisation  with 
hydrogen, resulting in a reduction of at least 85% of the sulphur-content of the 
products processed (ASTM D 1266-59 T method); 

in respect of products of heading 2710 only, deparaffining by a process other 
than filtering; 

in respect of heavy oils of heading ex 2710 only, treatment with hydrogen, at a 
pressure of more than 20 bar and a temperature of more than 250°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  ex  2710  (e.g.  hydrofinishing  or 
decolourisation), in order, more especially, to improve colour or stability shall 
not, however, be deemed to be a specific process; 

(m) 

in  respect  of  fuel  oils  of  heading  ex  2710  only,  atmospheric  distillation,  on 
condition  that  less  than  30%  of  these  products  distils,  by  volume,  including 
losses, at 300 °C, by the ASTM D 86 method; 

(n) 

(o) 

in  respect  of  heavy  oils  other  than  gas  oils  and  fuel  oils  of  heading  ex  2710 
only, treatment by means of a high-frequency electrical brush-discharge. 

in respect of crude products (other than petroleum jelly, ozokerite, lignite wax 
or  peat  wax,  paraffin  wax  containing  by  weight  less  than  0.75%  of  oil)  of 
heading ex 2712 only, de-oiling by fractional crystallisation. 

8.3. 

For the purposes of headings ex 2707 and 2713, 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, or any 
combination of these operations or like operations, do not confer origin. 

EN 

121 

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APPENDIX II 

LIST OF PRODUCTS AND WORKING OR PROCESSING OPERATIONS WHICH 
CONFER ORIGINATING STATUS 

Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

Chapter 1 

Live animals 

All the animals of Chapter 1 are wholly obtained 

Chapter 2 

Meat and edible meat offal 

Manufacture in which all the meat and edible meat offal in the products of this chapter is 
wholly obtained 

ex Chapter 3 

and 

Fish 
crustaceans, 
molluscs  and  other  aquatic 
invertebrates, except for: 

All fish and crustaceans, molluscs and other aquatic invertebrates are wholly obtained 

0304 

0305 

ex 0306 

ex 0307 

Chapter 4 

Manufacture in which all the materials of Chapter 3 used are wholly obtained 

Manufacture in which all the materials of Chapter 3 used are wholly obtained 

Manufacture in which all the materials of Chapter 3 used are wholly obtained 

(whether 

Fish  fillets  and  other  fish 
meat 
not 
minced),  fresh,  chilled  of 
frozen 

or 

Fish,  dried,  salted  or 
in 
brine;  smoked  fish,  whether 
or  not  cooked  before  or 
during the smoking process; 
flours,  meals  and  pellets  of 
fish, 
human 
consumption 

for 

fit 

Crustaceans,  whether 
in 
shell  or  not,  dried,  salted  or 
in  brine;  crustaceans, 
in 
shell, cooked by steaming or 
by boiling in water, whether 
or  not  chilled,  frozen,  dried, 
salted  or  in  brine;  flours, 
meals 
of 
crustaceans,  fit  for  human 
consumption 

pellets 

and 

Molluscs,  whether  in  shell 
or  not,  dried,  salted  or  in 
brine;  aquatic  invertebrates 
other  than  crustaceans  and 
molluscs,  dried,  salted  or  in 
brine; 
flours,  meals  and 
pellets of crustaceans, fit for 
human consumption 

Dairy  produce;  birds'  eggs; 
natural 
edible 
honey; 
products  of  animal  origin, 
not  elsewhere  specified  or 
included; 

Manufacture in which all the materials of Chapter 3 used are wholly obtained 

Manufacture in which: 

– 

– 

all the materials of Chapter 4 used are wholly obtained; and 

the weight of sugar26 used does not exceed 40% of the weight of the final 
product  

ex Chapter 5 

Products  of  animal  origin, 
not  elsewhere  specified  or 
included , except for: 

Manufacture from materials of any heading 

ex 0511 91 

Inedible fish eggs and roes 

All the eggs and roes are wholly obtained 

Chapter 6 

Live  trees  and  other  plants; 
bulbs, roots and the like; cut 
flowers 
ornamental 
foliage 

and 

Manufacture in which all the materials of Chapter 6 used are wholly obtained  

26 

See Introductory Note 4.2.  

EN 

122 

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Harmonised 
System 
heading 

(1) 

Chapter 7 

Chapter 8 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(2) 

Edible 
certain roots and tubers 

vegetables 

and 

Manufacture in which all the materials of Chapter 7 used are wholly obtained  

(3) 

Edible fruit and nuts; peel of 
citrus fruits or melons 

Manufacture in which: 

– 

– 

all the fruit, nuts and peels of citrus fruits or melons of Chapter 8 used are 
wholly obtained, and 

the weight of sugar27 used does not exceed 40% of the weight of the final 
product 

Chapter 9 

Coffee, tea, maté and spices;   Manufacture from materials of any heading 

Chapter 10 

Cereals 

Manufacture in which all the materials of Chapter 10 used are wholly obtained 

ex Chapter 11 

ex 1106 

Chapter 12 

Chapter 13 

Chapter 14 

ex Chapter 15 

1501 to 1504 

1505,  1506  and 
1520 

Manufacture in which all the materials of Chapters 10 and 11, headings 0701 and 2303, 
and sub-heading 0710 10 used are wholly obtained 

Drying and milling of leguminous vegetables of heading 0708 

Manufacture from materials of any heading, except that of the product 

the  milling 
Products  of 
industry;  malt; 
starches; 
inulin;  wheat  gluten;  except 
for: 

Flour,  meal  and  powder  of 
the 
shelled 
leguminous  vegetables  of 
heading 0713 

dried, 

Oil  seeds  and  oleaginous 
fruits;  miscellaneous  grains, 
seeds and fruit; industrial or 
medicinal  plants;  straw  and 
fodder 

Lac;  gums,  resins  and  other 
vegetable saps and extracts 

Manufacture  from  materials  of  any  heading,  in  which  the  weight  of  sugar  28  used  does 
not exceed 40% of the weight of the final product 

Manufacture from materials of any heading  

Manufacture from materials of any sub-heading, except that of the product 

Manufacture from materials of any heading except that of the product 

Manufacture from materials of any heading 

Vegetable plaiting materials; 
not 
vegetable 
or 
elsewhere 
included 

products 
specified 

Animal or vegetable fats and 
oils  and 
their  cleavage 
products;  prepared  edible 
fats;  animal  or  vegetable 
waxes; except for: 

Fats 
from  pig,  poultry, 
bovine,  sheep  or  goat,  fish, 
etc 

and 

fatty 
Wool  grease 
derived 
substances 
therefrom 
(including 
lanolin).  Other  animal  fats 
and  oils  and  their  fractions, 
whether  or  not  refined,  but 
not  chemically  modified.. 
Glycerol,  crude;  glycerol 
waters and glycerol lyes. 

1509 and 1510 

Olive oil and its fractions 

Manufacture in which all the vegetable materials used are wholly obtained 

Manufacture from materials of any heading, except that of the product 

1516 and 1517 

Animal or vegetable fats and 
fractions, 
their 
oils  and 
wholly 
partly 
or 
inter-
hydrogenated, 
esterified, 
re-esterified  or 
elaidinised,  whether  or  not 

27 
28 

See Introductory Note 4.2. 
See Introductory Note 4.2. 

EN 

123 

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Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

refined,  but  not 
prepared 

further 

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 
1516 

Preparations of meat, of fish 
or  of  crustaceans,  molluscs 
or 
aquatic 
invertebrates 

other 

Sugars 
confectionery; except for: 

and 

sugar 

sugars, 

Other 
including 
chemically  pure  lactose  and 
glucose, in solid form; sugar 
syrups; 
honey, 
artificial 
whether  or  not  mixed  with 
natural honey; caramel 

Sugar 
confectionery 
(including  white  chocolate), 
not containing cocoa 

Chapter 16 

ex Chapter 17 

1702 

1704 

Manufacture: 

– 

– 

from  materials  of  any  heading,  except  meat  and  edible  meat  offal  of 
Chapter 2 and materials of Chapter 16 obtained from meat and edible meat 
offal of Chapter 2, and  

in which all the materials of Chapter 3 and materials of Chapter 16 obtained 
from  fish  and  crustaceans,  molluscs  and  other  aquatic  invertebrates  of 
Chapter 3 used are wholly obtained 

Manufacture from materials of any heading, except that of the product 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product,  in  which  the 
weight of the materials of headings 1101 to 1108, 1701 and 1703 used does not exceed 
30% of the weight of the final product 

Manufacture from materials of any heading, except that of the product, in which:  

– 

– 

the individual weight of sugar29 and of the materials of Chapter 4 used does 
not exceed 40% of the weight of the final product, and  

the  total  combined  weight  of  sugar30  and  the  materials  of  Chapter  4  used 
does not exceed 60% of the weight of final product  

Chapter 18 

Cocoa 
preparations 

and 

cocoa 

Manufacture from materials of any heading, except that of the product, in which  

Chapter 19 

of 

Preparations 
flour, 
starch 
pastrycooks' products 

cereals, 
or  milk; 

– 

– 

the individual weight of sugar31 and of the materials of Chapter 4 used does 
not exceed 40% of the weight of the final product, and  

the  total  combined  weight  of  sugar32  and  the  materials  of  Chapter  4  used 
does not exceed 60% of the weight of final product 

Manufacture from materials of any heading, except that of the product, in which: 

– 

– 

– 

– 

the  weight  of  the  materials  of  Chapters 2,  3  and  16  used  does  not  exceed 
20% of the weight of the final product, and 

the  weight  of  the materials  of  headings  1006  and  1101  to  1108 used does 
not exceed 20% of the weight of the final product, and  

the individual weight of sugar33 and of the materials of Chapter 4 used does 
not exceed 40% of the weight of the final product, and 

the  total  combined  weight  of  sugar34  and  the  materials  of  Chapter  4  used 
does not exceed 60% of the weight of final product  

29 
30 
31
32 

See Introductory Note 4.2. 
See Introductory Note 4.2. 
See Introductory Note 4.2. 
See Introductory Note 4.2. 

EN 

124 

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Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

ex Chapter 20 

2002 and 2003 

Chapter 21 

Preparations  of  vegetables, 
fruit,  nuts  or  other  parts  of 
plants; except for: 

Tomatoes,  mushrooms  and 
truffles 
or 
preserved  otherwise  than  by 
vinegar of acetic acid 

prepared 

Miscellaneous 
preparations; except for: 

edible 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product,  in  which  the 
weight of sugar35 used does not exceed 40% of the weight of the final product 

Manufacture in which all the materials of Chapters 7 used are wholly obtained  

Manufacture from materials of any heading, except that of the product, in which: 

– 

– 

-  the  individual  weight  of  sugar36  and  of  the  materials  of  Chapter  4  used 
does not exceed 40% of the weight of the final product, and 

- the total combined weight of sugar37 and the materials of Chapter 4 used 
does not exceed 60% of the weight of final product 

Chapter 22 

Beverages, 
vinegar 

spirits 

and 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product  and  headings 
2207 and 2208, in which: 

ex Chapter 23 

ex 2302 

ex 2303 

2309 

Residues and waste from the 
food 
industries;  prepared 
animal fodder; except for: 

Residues 
manufacture 

of 

starch 

Preparations  of  a  kind  used 
in animal feeding 

– 

– 

– 

all  the  materials  of  sub-headings  0806  10,  2009  61,  2009  69  used  are 
wholly obtained, and 

the individual weight of sugar38 and of the materials of Chapter 4 used does 
not exceed 40% of the weight of the final product, and 

the  total  combined  weight  of  sugar39  and  the  materials  of  Chapter  4  used 
does not exceed 60% of the weight of final product 

Manufacture from materials of any heading, except that of the product 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product,  in  which  the 
weight  of  the  materials  of  Chapter  10  used  does  not  exceed  20%  of  the  weight  of  the 
final product 

Manufacture from materials of any heading, except that of the product, in which: 

– 

– 

– 

– 

all the materials of Chapters 2 and 3 used are wholly obtained, and 

the weight of materials of Chapter 10 and 11 and headings 2302 and 2303 
used does not exceed 20% of the weight of the final product, and 

the  individual  weight  of  sugar40  )  and  of  the  materials  of  Chapter  4  used 
does not exceed 40% of the weight of the final product, and 

the total combined weight of sugar and the materials of Chapter 4 used does 
not exceed 60% of the weight of final product 

ex Chapter 24 

Tobacco  and  manufactured 
tobacco  substitutes;  except 
for: 

Manufacture from materials of any heading in which the weight of materials of Chapter 
24 used does not exceed 30% of the total weight of materials of Chapter 24 used 

2401 

Unmanufactured 
tobacco refuse 

tobacco; 

All unmanufactured tobacco and tobacco refuse of Chapter 24 is wholly obtained 

33 
34 
35 
36 
37 
38 
39 
40 

See Introductory Note 4.2. 
See Introductory Note 4.2. 
See Introductory Note 4.2. 
See Introductory Note 4.2. 
See Introductory Note 4.2. 
See Introductory Note 4.2. 
See Introductory Note 4.2. 
See Introductory Note 4.2. 

EN 

125 

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Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

2402  

Cigars,  cheroots,  cigarillos 
and cigarettes, of tobacco or 
of tobacco substitutes 

ex Chapter 25 

Salt;  sulphur;  earths  and 
stone;  plastering  materials, 
lime and cement; except for: 

ex 2519 

(magnesite), 

Crushed  natural  magnesium 
in 
carbonate 
hermetically-sealed 
containers,  and  magnesium 
oxide,  whether  or  not  pure, 
other than fused magnesia or 
(sintered) 
dead-burned 
magnesia 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product  and  of  heading 
2403, and in which the weight of materials of heading 2401 used does not exceed 50% of 
the total weight of materials of heading 2401 used  

Manufacture from materials of any heading, except that of the product  

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product. However, natural 
magnesium carbonate (magnesite) may be used 

Chapter 26 

Ores, slag and ash 

Manufacture from materials of any heading, except that of the product 

ex Chapter 27 

ex 2707 

2710 

products 

Mineral  fuels,  mineral  oils 
their 
and 
of 
distillation; 
bituminous 
substances;  mineral  waxes, 
except for: 

Oils  in  which  the  weight  of 
the  aromatic  constituents 
exceeds  that  of  the  non-
aromatic  constituents,  being 
oils  similar  to  mineral  oils 
obtained  by  distillation  of 
high temperature coal tar, of 
which  more  than  65%  by 
volume 
a 
distils 
temperature  of  up  to  250°C 
of 
(including  mixtures 
petroleum 
and 
benzole),  for  use  as  power 
or heating fuels 

spirit 

at 

Petroleum  oils  and  oils 
obtained  from  bituminous 
materials,  other  than  crude; 
preparations  not  elsewhere 
specified 
included, 
or 
containing  by  weight  70% 
or more of petroleum oils or 
of 
from 
bituminous  materials,  these 
basic 
oils 
being 
constituents 
the 
preparations; waste oils 

obtained 

the 
of 

oils 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Operations of refining and/or one or more specific process(es)41 

or 

Other  operations  in  which  all  the  materials  used  are  classified  within  a  heading  other 
than that of the product. However, materials of the same heading as the product may be 
used,  provided  that  their  total  value  does  not  exceed  50%  of  the  ex-works  price  of  the 
product 

Operations of refining and/or one or more specific process(es) 42 

or 

Other  operations  in  which  all  the  materials  used  are  classified  within  a  heading  other 
than that of the product. However, materials of the same heading as the product may be 
used,  provided  that  their  total  value  does  not  exceed  50%  of  the  ex-works  price  of  the 
product  

2711 

Petroleum  gases  and  other 
gaseous hydrocarbons 

Operations of refining and/or one or more specific process(es)43 

or 

Other  operations  in  which  all  the  materials  used  are  classified  within  a  heading  other 
than that of the product. However, materials of the same heading as the product may be 
used,  provided  that  their  total  value  does  not  exceed  50%  of  the  ex-works  price  of  the 
product 

41

42

43

For the special conditions relating to “specific processes”, see Introductory Notes 8.1 and 8.3. 
For the special conditions relating to “specific processes”, see Introductory Note 8.2. 
For the special conditions relating to “specific processes”, see Introductory Note 8.2. 

EN 

126 

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Harmonised 
System 
heading 

(1) 

2712 

2713 

ex Chapter 28 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(2) 

jelly;  paraffin 
Petroleum 
microcrystalline 
wax, 
petroleum  wax,  slack  wax, 
ozokerite,  lignite  wax,  peat 
wax,  other  mineral  waxes, 
and 
products 
obtained  by  synthesis  or  by 
other  processes,  whether  or 
not coloured 

similar 

Petroleum  coke,  petroleum 
bitumen  and  other  residues 
of  petroleum  oils  or  of  oils 
obtained  from  bituminous 
materials 

or 

chemicals; 
Inorganic 
inorganic 
organic 
compounds 
precious 
metals,  of  rare-earth  metals, 
of radioactive elements or of 
isotopes; except for: 

of 

Operations of refining and/or one or more specific process(es)44 

(3) 

or 

Other  operations  in  which  all  the  materials  used  are  classified  within  a  heading  other 
than that of the product. However, materials of the same heading as the product may be 
used,  provided  that  their  total  value  does  not  exceed  50%  of  the  ex-works  price  of  the 
product 

Operations of refining and/or one or more specific process(es)45 

or 

Other  operations  in  which  all  the  materials  used  are  classified  within  a  heading  other 
than that of the product. However, materials of the same heading as the product may be 
used,  provided  that  their  total  value  does  not  exceed  50%  of  the  ex-works  price  of  the 
product 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product.  However, 
materials of the same heading as the product may be used, provided that their total value 
does not exceed 20% of the ex-works price of the product 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

ex Chapter 29 

Organic  chemicals;  except 
for: 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product.  However, 
materials of the same heading as the product may be used, provided that their total value 
does not exceed 20% of the ex-works price of the product 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

ex 2905 

alcoholates 

of 
Metal 
alcohols of this heading and 
of ethanol; except for: 

Manufacture from materials of any heading, including other materials of heading 2905. 
However, metal alcoholates of this heading may be used, provided that their total value 
does not exceed 20% of the ex-works price of the product 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

2905 43; 
2905 44; 
2905 45 

Mannitol; 
(sorbitol); Glycerol 

D-glucitol 

Manufacture  from  materials  of  any  sub-heading,  except  that  of  the  product.  However, 
materials of the same sub-heading as the product may be used, provided that their total 
value does not exceed 20% of the ex-works price of the product 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

Chapter 30 

Pharmaceutical products 

Manufacture from materials of any heading 

Chapter 31 

Fertilisers 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product.  However, 
materials of the same heading as the product may be used, provided that their total value 
does not exceed 20% of the ex-works price of the product 

Chapter 32 

Tanning  or  dyeing  extracts; 
tannins and their derivatives; 
dyes,  pigments  and  other 
colouring  matter;  paints  and 
varnishes;  putty  and  other 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product.  However, 
materials of the same heading as the product may be used, provided that their total value 
does not exceed 20% of the ex-works price of the product 

or 

44

45

For the special conditions relating to “specific processes”, see Introductory Note 8.2. 
For the special conditions relating to “specific processes”, see Introductory Notes 8.1 and 8.3. 

EN 

127 

   EN 

 
 
 
                                                 
 
 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

mastics; inks 

Chapter 33 

Essential  oils  and  resinoids; 
perfumery, 
or 
toilet  preparations;  except 
for: 

cosmetic 

(3) 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product.  However, 
materials of the same heading as the product may be used, provided that their total value 
does not exceed 20% of the ex-works price of the product 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

3302? 

ex Chapter 34 

Soap,  organic  surface-active 
agents, 
washing 
lubricating 
preparations, 
preparations, 
artificial 
prepared  waxes, 
waxes, 
scouring 
or 
polishing 
preparations,  candles  and 
similar  articles,  modelling 
pastes,  "dental  waxes"  and 
dental  preparations  with  a 
basis of plaster, except for: 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product.  However, 
materials of the same heading as the product may be used, provided that their total value 
does not exceed 20% of the ex-works price of the product 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

ex 3404 

Artificial 
prepared waxes: 

waxes 

and 

Manufacture from materials of any heading 

–  With  a  basis  of  paraffin, 
petroleum  waxes,  waxes 
obtained  from  bituminous 
minerals, slack wax or scale 
wax 

Albuminoidal 
modified 
enzymes  

substances; 
starches;  glues; 

pyrotechnic 
Explosives; 
products; 
matches; 
pyrophoric  alloys;  certain 
combustible preparations 

Chapter 35 

Chapter 36 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product,  in  which  the 
value of all the materials used does not exceed 50% of the ex-works price of the product 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product.  However, 
materials of the same heading as the product may be used, provided that their total value 
does not exceed 20% of the ex-works price of the product 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

Chapter 37 

Photographic 
cinematographic goods 

or 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product.  However, 
materials of the same heading as the product may be used, provided that their total value 
does not exceed 20% of the ex-works price of the product 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

ex Chapter 38 

Miscellaneous 
products; except for: 

chemical 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product.  However, 
materials of the same heading as the product may be used, provided that their total value 
does not exceed 20% of the ex-works price of the product 

3824 60 

Sorbitol  other  than  that  of 
sub-heading 2905 44 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

Manufacture  from  materials  of  any  sub-heading,  except  that  of  the  product  and  except 
materials  of  sub-heading 2905  44.  However,  materials  of  the  same  sub-heading  as  the 
product  may  be  used,  provided  that  their  total  value  does  not  exceed  20%  of  the  ex-
works price of the product 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

EN 

128 

   EN 

 
 
 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

ex Chapter 39 

Plastics  and  articles  thereof; 
except for: 

Manufacture from materials of any heading, except that of the product. 

or 

ex 3907 

-  Copolymer,  made  from 
and 
polycarbonate 
acrylonitrile-butadiene-
styrene copolymer (ABS) 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product.  However, 
materials of the same heading as the product may be used, provided that their total value 
does not exceed 50% of the ex-works price of the product46 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

– Polyester 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture from polycarbonate of tetrabromo-(bisphenol A) 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Retreading of used tyres 

ex Chapter 40 

Rubber  and  articles  thereof; 
except for: 

4012 

or 

Retreaded 
used 
pneumatic  tyres  of  rubber; 
solid  or  cushion  tyres,  tyre 
treads  and  tyre  flaps,  of 
rubber: 

–  Retreaded 
pneumatic, 
solid  or  cushion  tyres,  of 
rubber 

– Other 

Manufacture from materials of any heading, except those of headings 4011 and 4012 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product  

Manufacture from materials of any heading 

ex Chapter 41 

4101 to 4103 

Raw  hides  and  skins  (other 
than  furskins)  and  leather; 
except for: 

tanned, 

Raw  hides  and  skins  of 
bovine  (including  buffalo) 
or  equine  animals  (fresh,  or 
salted,  dried,  limed,  pickled 
or  otherwise  preserved,  but 
not 
parchment 
dressed or further prepared), 
whether  or  not  dehaired  or 
split;  raw  skins  of  sheep  or 
(fresh,  or 
lambs 
salted, 
dried, 
limed,  pickled  or 
otherwise preserved, but not 
tanned,  parchment  dressed 
prepared), 
or 
whether or not with wool on 

further 

46

In  the  case  of  the  products  composed  of  materials  classified  within  both  headings  3901  to  3906,  on  the  one  hand,  and  within 
headings 3907 to 3911, on the other hand, this restriction only applies to that group of materials which predominates by weight in 
the product. 

EN 

129 

   EN 

 
 
 
 
 
 
                                                 
 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

or  split,  other  than  those 
excluded  by  note  1(c)  to 
Chapter  41;  other  raw  hides 
and  skins  (fresh,  or  salted, 
dried, 
limed,  pickled  or 
otherwise preserved, but not 
tanned,  parchment  dressed 
prepared), 
or 
whether  or  not  dehaired  or 
split,  other 
those 
excluded  by  note  1(b)  or 
1(c) to Chapter 41 

further 

than 

Re-tanning  of  tanned  or  pre-tanned hides  and  skins  of  sub-headings 4104  11, 4104  19, 
4105 10, 4106 21, 4106 31 or 4106 91, 

or 

Manufacture from materials of any heading, except that of the product 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product.  However, 
materials  of  sub-headings  4104  41,  4104  49,  4105  30,  4106  22,  4106  32  and  4106  92 
may be used only if a re-tanning operation of the tanned or crust hides and skins in the 
dry state takes place 

Manufacture from materials of any heading, except that of the product  

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product  

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Manufacture from materials of any heading 

4104 to 4106 

Tanned  or  crust  hides  and 
skins,  without  wool  or  hair 
on,  whether  or  not  split,  but 
not further prepared 

4107, 
4113 

4112, 

Leather 
after tanning or crusting 

further  prepared 

Chapter 42 

ex Chapter 43 

Articles  of  leather;  saddlery 
and  harness;  travel  goods, 
handbags 
similar 
containers; articles of animal 
gut  (other  than  silk  worm 
gut) 

and 

Furskins  and  artificial  fur; 
manufactures 
thereof; 
except for: 

4301 

ex 4302 

furskins 

Raw 
(including 
heads,  tails,  paws  and  other 
pieces  or  cuttings,  suitable 
for  furrier’s  use),  other  than 
raw  hides  and  skins  of 
heading 4101, 4102 or 4103 

Tanned  or  dressed  furskins, 
assembled: 

– Plates, crosses and similar 
forms 

Bleaching  or  dyeing,  in  addition  to  cutting  and  assembly  of  non-assembled  tanned  or 
dressed furskins 

– Other 

Manufacture from non-assembled, tanned or dressed furskins 

4303 

Articles  of  apparel,  clothing 
accessories 
other 
articles of furskin 

and 

ex Chapter 44 

Wood  and  articles  of  wood; 
wood charcoal; except for: 

ex 4407 

ex 4408 

sawn  or  chipped 
Wood 
lengthwise, sliced or peeled, 
of  a  thickness  exceeding  6 
mm,  planed,  sanded  or  end-
jointed 

for 

veneering 
Sheets 
(including those obtained by 
slicing laminated wood) and 

Manufacture from non-assembled tanned or dressed furskins of heading 4302 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Planing, sanding or end-jointing 

Splicing, planing, sanding or endjointing 

EN 

130 

   EN 

 
 
 
 
 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

exceeding 

for  plywood,  of  a  thickness 
not 
6  mm, 
spliced,  and  other  wood 
sawn  lengthwise,  sliced  or 
peeled  of  a  thickness  not 
exceeding  6  mm,  planed, 
sanded or end-jointed 

Beadings  and  mouldings, 
including  moulded  skirting 
and other moulded boards 

Packing cases, boxes, crates, 
drums  and  similar  packings, 
of wood 

Beading or moulding 

Manufacture from boards not cut to size 

–  Builders' 
carpentry of wood 

joinery  and 

Manufacture from materials of any heading, except that of the product. However, cellular 
wood panels, shingles and shakes may be used 

– Beadings and mouldings 

Beading or moulding 

ex  4410  to  ex 
4413 

ex 4415 

ex 4418 

ex 4421 

Match  splints;  wooden  pegs 
or pins for footwear 

Manufacture from wood of any heading, except drawn wood of heading 4409 

Chapter 45 

Cork and articles of cork 

Manufacture from materials of any heading, except that of the product  

Chapter 46 

Chapter 47 

Manufactures  of  straw,  of 
esparto  or  of  other  plaiting 
materials;  basketware  and 
wickerwork 

Pulp  of  wood  or  of  other 
fibrous  cellulosic  material; 
recovered  (waste  and  scrap) 
paper or paperboard 

Chapter 48 

and 

Paper 
paperboard; 
articles  of  paper  pulp,  of 
paper or of paperboard 

Chapter 49 

Printed  books,  newspapers, 
pictures  and  other  products 
of 
industry; 
manuscripts,  typescripts  and 
plans 

the  printing 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product  

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product  

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product  

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product  

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

ex Chapter 50 

Silk; except for: 

Manufacture from materials of any heading, except that of the product 

ex 5003 

waste 

unsuitable 

(including 
Silk 
cocoons 
for 
reeling,  yarn  waste  and 
garnetted  stock),  carded  or 
combed 

Carding or combing of silk waste 

5004 to ex 5006 

Silk  yarn  and  yarn  spun 
from silk waste 

Spinning of natural fibres or extrusion of man-made fibres accompanied by spinning or 
twisting(47) 

5007 

Woven  fabrics  of  silk  or  of 
silk waste: 

Spinning  of  natural  and/or  man-made  staple  fibres  or  extrusion  of  man-made  filament 
yarn or twisting, in each case accompanied by weaving 

47

For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 

EN 

131 

   EN 

 
 
                                                 
 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

or  

Weaving accompanied by dyeing  

or  

Yarn dyeing accompanied by weaving  

or  

Printing  accompanied  by  at  least  two  preparatory  or  finishing  operations  (such  as 
scouring,  bleaching,  mercerising,  heat  setting,  raising,  calendering,  shrink  resistance 
processing,  permanent  finishing,  decatising,  impregnating,  mending  and  burling), 
provided  that  the  value  of  the  unprinted  fabric  used  does  not  exceed  47.5%  of  the  ex-
works price of the product(48) 

Manufacture from materials of any heading, except that of the product 

Spinning of natural fibres or extrusion of man-made fibres accompanied by spinning(49) 

Spinning  of  natural  and/or  man-made  staple  fibres  or  extrusion  of  man-made  filament 
yarn, in each case accompanied by weaving 

or  

Weaving accompanied by dyeing  

or  

Yarn dyeing accompanied by weaving  

or  

ex Chapter 51 

5106 to 5110 

5111 to 5113 

Wool,  fine  or  coarse  animal 
hair;  horsehair  yarn  and 
woven fabric; except for: 

Yarn  of  wool,  of  fine  or 
coarse  animal  hair  or  of 
horsehair 

Woven  fabrics  of  wool,  of 
fine or coarse animal hair or 
of horsehair: 

Printing  accompanied  by  at  least  two  preparatory  or  finishing  operations  (such  as 
scouring,  bleaching,  mercerising,  heat  setting,  raising,  calendering,  shrink  resistance 
processing,  permanent  finishing,  decatising,  impregnating,  mending  and  burling), 
provided  that  the  value  of  the  unprinted  fabric  used  does  not  exceed  47.5%  of  the  ex-
works price of the product(50) 

ex Chapter 52 

Cotton; except for: 

Manufacture from materials of any heading, except that of the product 

5204 to 5207 

Yarn and thread of cotton 

Spinning of natural fibres or extrusion of man-made fibres accompanied by spinning(51) 

5208 to 5212 

Woven fabrics of cotton: 

Spinning  of  natural  and/or  man-made  staple  fibres  or  extrusion  of  man-made  filament 
yarn , in each case accompanied by weaving 

or 

Weaving accompanied by dyeing or by coating 

or 

Yarn dyeing accompanied by weaving  

or 

Printing  accompanied  by  at  least  two  preparatory  or  finishing  operations  (such  as 
scouring,  bleaching,  mercerising,  heat  setting,  raising,  calendering,  shrink  resistance 
processing,  permanent  finishing,  decatising,  impregnating,  mending  and  burling), 
provided  that  the  value  of  the  unprinted  fabric  used  does  not  exceed  47.5%  of  the  ex-
works price of the product(52) 

Manufacture from materials of any heading, except that of the product 

ex Chapter 53 

Other 
fibres;  paper  yarn 

vegetable 

textile 
and 

48

49

50

51

52

For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 

EN 

132 

   EN 

 
                                                                                                                                                         
 
 
 
 
 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

5306 to 5308 

5309 to 5311 

woven fabrics of paper yarn; 
except for: 

Yarn  of  other  vegetable 
textile fibres; paper yarn 

fabrics  of  other 
Woven 
vegetable 
fibres; 
woven fabrics of paper yarn: 

textile 

5401 to 5406 

Yarn,  monofilament 
of 
thread 
filaments 

and 
man-made 

Spinning of natural fibres or extrusion of man-made fibres accompanied by spinning(53) 

Spinning  of  natural  and/or  man-made  staple  fibres  or  extrusion  of  man-made  filament 
yarn , in each case accompanied by weaving 

or 

Weaving accompanied by dyeing or by coating 

or 

Yarn dyeing accompanied by weaving  

or 

Printing  accompanied  by  at  least  two  preparatory  or  finishing  operations  (such  as 
scouring,  bleaching,  mercerising,  heat  setting,  raising,  calendering,  shrink  resistance 
processing,  permanent  finishing,  decatising,  impregnating,  mending  and  burling), 
provided  that  the  value  of  the  unprinted  fabric  used  does  not  exceed  47.5%  of  the  ex-
works price of the product(54) 

Extrusion of man-made fibres accompanied by spinning OR spinning of natural fibres(55) 

5407 and 5408  Woven fabrics of man-made 

filament yarn: 

Spinning  of  natural  and/or  man-made  staple  fibres  or  extrusion  of  man-made  filament 
yarn, in each case accompanied by weaving 

or  

Weaving accompanied by dyeing or by coating 

or  

Twisting  or  texturing  accompanied  by  weaving  provided  that  the  value  of  the  non-
twisted/non-textured  yarns  used  does  not  exceed  47.5%  of  the  ex-works  price  of  the 
product 

or  

Printing  accompanied  by  at  least  two  preparatory  or  finishing  operations  (such  as 
scouring,  bleaching,  mercerising,  heat  setting,  raising,  calendering,  shrink  resistance 
processing,  permanent  finishing,  decatising,  impregnating,  mending  and  burling), 
provided  that  the  value  of  the  unprinted  fabric  used  does  not  exceed  47.5%  of  the  ex-
works price of the product(56) 

5501 to 5507 

Man-made staple fibres 

Extrusion of man-made fibres 

5508 to 5511 

Yarn  and  sewing  thread  of 
man-made staple fibres 

Spinning of natural fibres or extrusion of man-made fibres accompanied by spinning(57) 

5512 to 5516 

Woven fabrics of man-made 
staple fibres: 

Spinning  of  natural  and/or  man-made  staple  fibres  or  extrusion  of  man-made  filament 
yarn, in each case accompanied by weaving 

or  

Weaving accompanied by dyeing or by coating 

or  

Yarn dyeing accompanied by weaving  

or  

53

54

55

56

57

58 

For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 

EN 

133 

   EN 

 
                                                 
 
 
 
 
 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

Ex Chapter 56 

5602 

5603 

5604 

5605 

Printing  accompanied  by  at  least  two  preparatory  or  finishing  operations  (such  as 
scouring,  bleaching,  mercerising,  heat  setting,  raising,  calendering,  shrink  resistance 
processing,  permanent  finishing,  decatising,  impregnating,  mending  and  burling), 
provided  that  the  value  of  the  unprinted  fabric  used  does  not  exceed  47.5%  of  the  ex-
works price of the product(58) 

Extrusion of man-made fibres accompanied by spinning or spinning of natural fibres 

or  

Flocking accompanied by dyeing or printing (59) 

felt  and  non-
Wadding, 
yarns; 
special 
wovens; 
twine,  cordage,  ropes  and 
cables  and  articles  thereof; 
except for: 

Felt,  whether 
impregnated, 
covered or laminated: 

or 

not 
coated, 

-  Needleloom felt 

Extrusion of man-made fibres accompanied by fabric formation,  

However: 

– 

– 

– 

polypropylene filament of heading 5402, 

polypropylene fibres of heading 5503 or 5506, or 

polypropylene filament tow of heading 5501, 

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

may be used, provided that their total value does not exceed 40% of the ex-works price 
of the product 

or 

Fabric formation alone in the case of felt made from natural fibres (60) 

-  Other 

Extrusion of man-made fibres accompanied by fabric formation,  

or 

Fabric formation alone in the case of other felt made from natural fibres(61) 

Extrusion  of  man-made  fibres,  or  use  of  natural  fibres,  accompanied  by  nonwoven 
techniques including needle punching 

Nonwovens,  whether  or  not 
coated, 
impregnated, 
covered or laminated 

Rubber 
thread  and  cord, 
textile  covered;  textile  yarn, 
and  strip  and  the  like  of 
or 5405, 
heading 5404 
impregnated, 
coated, 
covered  or  sheathed  with 
rubber or plastics: 

-  Rubber  thread  and  cord, 

Manufacture from rubber thread or cord, not textile covered 

textile covered 

-  Other 

Metallised  yarn,  whether  or 
not  gimped,  being  textile 
yarn,  or  strip  or  the  like  of 
heading 5404 
or 5405, 
combined  with  metal  in  the 
form  of 
thread,  strip  or 
powder  or  covered  with 

Extrusion of man-made fibres accompanied by spinning or spinning of natural fibres (62) 

Extrusion  of  man-made  fibres  accompanied  by  spinning  or  spinning  of  natural  and/or 
man-made staple fibres (63) 

59 

60 

61 

62 

For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 

EN 

134 

   EN 

 
 
 
 
 
 
 
                                                 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

metal 

(3) 

5606 

Gimped  yarn,  and  strip  and 
the 
like  of  heading 5404 
or 5405,  gimped  (other  than 
those  of  heading 5605  and 
gimped  horsehair  yarn); 
(including 
yarn 
chenille 
flock  chenille  yarn);  loop 
wale-yarn 

Extrusion  of  man-made  fibres  accompanied  by  spinning  or  spinning  of  natural  and/or 
man-made staple fibres 

or 

Spinning accompanied with flocking 

or  

Flocking accompanied by dyeing(64) 

Chapter 57 

Carpets  and  other 
floor coverings: 

textile 

Spinning  of  natural  and/or  man-made  staple  fibres  or  extrusion  of  man-made  filament 
yarn, in each case accompanied by weaving 

or 

Manufacture from coir yarn or sisal yarn or jute yarn  

or 

Flocking accompanied by dyeing or by printing  

Or 

Tufting accompanied by dyeing or by printing 

Extrusion  of  man-made  fibres  accompanied by  non-woven  techniques including  needle 
punching65 

However: 

– 

– 

– 

polypropylene filament of heading 5402, 

polypropylene fibres of heading 5503 or 5506, or 

polypropylene filament tow of heading 5501, 

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

Jute fabric may be used as a backing 

Spinning  of  natural  and/or  man-made  staple  fibres  or  extrusion  of  man-made  filament 
yarn, in each case accompanied by weaving 

or  

Weaving accompanied by dyeing or flocking or coating 

or 

Flocking accompanied by dyeing or by printing 

or  

Yarn dyeing accompanied by weaving  

or  

Ex Chapter 58 

Special  woven 
fabrics; 
tufted  textile  fabrics;  lace; 
tapestries; 
trimmings; 
embroidery; except for: 

Printing  accompanied  by  at  least  two  preparatory  or  finishing  operations  (such  as 
scouring,  bleaching,  mercerising,  heat  setting,  raising,  calendering,  shrink  resistance 
processing,  permanent  finishing,  decatising,  impregnating,  mending  and  burling), 
provided  that  the  value  of  the  unprinted  fabric  used  does  not  exceed  47.5%  of  the  ex-
works price of the product(66) 

5805 

Hand-woven 
types 
the 

tapestries  of 
Gobelins, 

Manufacture from materials of any heading, except that of the product 

63 

64 

65 

66 

For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 

EN 

135 

   EN 

 
                                                                                                                                                         
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

5810 

5901 

5902 

5903 

5904 

Flanders, 
Aubusson, 
Beauvais  and  the  like,  and 
tapestries 
needle-worked 
(for  example,  petit  point, 
cross  stitch),  whether  or  not 
made up 

Embroidery  in  the  piece,  in 
strips or in motifs 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

Weaving accompanied by dyeing or by flocking or by coating 

or 

Flocking accompanied by dyeing or printing 

or 

Textile  fabrics  coated  with 
gum 
amylaceous 
substances,  of  a  kind  used 
for the outer covers of books 
or  the  like;  tracing  cloth; 
prepared  painting  canvas; 
buckram 
similar 
and 
stiffened  textile  fabrics  of  a 
hat 
kind 
foundations 

used 

for 

Tyre  cord  fabric  of  high 
tenacity  yarn  of  nylon  or 
other polyamides, polyesters 
or viscose rayon: 

-  Containing  not  more  than 
90%  by  weight  of  textile 
materials 

Weaving 

-  Other 

Extrusion of man-made fibres accompanied by weaving 

Weaving accompanied by dyeing or by coating 

or  

Printing  accompanied  by  at  least  two  preparatory  or  finishing  operations  (such  as 
scouring,  bleaching,  mercerising,  heat  setting,  raising,  calendering,  shrink  resistance 
processing,  permanent  finishing,  decatising,  impregnating,  mending  and  burling), 
provided  that  the  value  of  the  unprinted  fabric  used  does  not  exceed  47.5%  of  the  ex-
works price of the product 

Weaving accompanied by dyeing or by coating (67) 

Textile  fabrics  impregnated, 
coated, covered or laminated 
with  plastics,  other 
than 
those of heading 5902 

Linoleum,  whether  or  not 
cut to shape; floor coverings 
consisting  of  a  coating  or 
covering applied on a textile 
backing,  whether  or  not  cut 
to shape 

5905 

Textile wall coverings: 

-  Impregnated, 

coated, 
covered  or  laminated  with 
rubber,  plastics  or  other 
materials  

Weaving accompanied by dyeing or by coating 

-  Other 

Spinning  of  natural  and/or  man-made  staple  fibres  or  extrusion  of  man-made  filament 

yarn, in each case accompanied by weaving 

or 

Weaving accompanied by dyeing or by coating  

or  

Printing  accompanied  by  at  least  two  preparatory  or  finishing  operations  (such  as 
scouring,  bleaching,  mercerising,  heat  setting,  raising,  calendering,  shrink  resistance 
processing,  permanent  finishing,  decatising,  impregnating,  mending  and  burling), 
provided  that  the  value  of  the  unprinted  fabric  used  does  not  exceed  47.5%  of  the  ex-

67 

68 

For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 

EN 

136 

   EN 

 
 
 
 
 
 
 
                                                 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

works price of the product (68): 

5906 

Rubberised  textile  fabrics, 
other 
of 
than 
heading 5902: 

those 

-  Knitted 
fabrics 

or 

crocheted 

Spinning  of  natural  and/or  man-made  staple  fibres  or  extrusion  of  man-made  filament 

yarn, in each case accompanied by knitting 

or  

Knitting accompanied by dyeing or by coating 

or 

Dyeing of yarn of natural fibres accompanied by knitting (69)- 

Extrusion of man-made fibres accompanied by weaving 

-  Other 

fabrics  made  of 
synthetic 
filament  yarn, 
containing  more  than  90% 
textile 
by  weight 
materials 

of 

5907 

5908 

-  Other 

Weaving accompanied by dyeing or by coating 

Textile 
impregnated, 
covered;  painted 
theatrical 
being 
studio  back-cloths  or 
like 

fabrics  otherwise 
or 
coated 
canvas 
scenery, 
the 

or 

Dyeing of yarn of natural fibres accompanied by weaving 

Weaving accompanied by dyeing or by flocking or by coating  

or  

Flocking accompanied by dyeing or by printing 

or  

Printing  accompanied  by  at  least  two  preparatory  or  finishing  operations  (such  as 
scouring,  bleaching,  mercerising,  heat  setting,  raising,  calendering,  shrink  resistance 
processing,  permanent  finishing,  decatising,  impregnating,  mending  and  burling), 
provided  that  the  value  of  the  unprinted  fabric  used  does  not  exceed  47.5%  of  the  ex-
works price of the product 

Textile  wicks,  woven, 
plaited or knitted, for lamps, 
stoves,  lighters,  candles  or 
the  like;  incandescent  gas 
mantles  and  tubular  knitted 
gas  mantle  fabric  therefor, 
whether or not impregnated: 

-  Incandescent  gas  mantles, 

Manufacture from tubular knitted gas-mantle fabric 

impregnated 

-  Other 

5909 to 5911 

Textile  articles  of  a  kind 
suitable for industrial use: 

Manufacture from materials of any heading, except that of the product 

-  Polishing  discs  or  rings 
felt  of 
than  of 

other 
heading 5911 

Weaving 

used 
or 

-  Woven  fabrics,  of  a  kind 
in 
commonly 
papermaking 
other 
technical  uses,  felted  or 
not,  whether 
not 
impregnated  or  coated, 
tubular  or  endless  with 
single  or  multiple  warp 
and/or  weft,  or  flat  woven 

or 

Extrusion of man-made fibres or Spinning of natural and/or of man-made staple fibres, in 
each case accompanied by weaving 

or 

Weaving accompanied by dyeing or coating 

Only the following fibres may be used:  

– –- coir yarn 

69 

For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 

EN 

137 

   EN 

 
 
 
 
 
 
 
 
 
 
 
                                                 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

with  multiple  warp  and/or 
weft of heading 5911 

– – yarn of polytetrafluoroethylene70, 

– – yarn, multiple, of polyamide, coated impregnated or covered with a phenolic resin, 

– – yarn of synthetic textile fibres of aromatic polyamides, obtained by polycondensation 
of m-phenylenediamine and isophthalic acid, 

– – monofil of polytetrafluoroethylene71, 

– – yarn of synthetic textile fibres of poly(p-phenylene terephthalamide),  

– – glass fibre yarn, coated with phenol resin and gimped with acrylic 

yarn72, 

–  –  copolyester  monofilaments  of  a  polyester  and  a  resin  of  terephthalic  acid  and  1,4-
cyclohexanediethanol and isophthalic acid 

-  Other 

Extrusion of man-made filament yarn OR spinning of natural or man-made staple fibres, 
accompanied by weaving (73) 

or 

Weaving accompanied by dyeing or coating 

Chapter 60 

Knitted or crocheted fabrics 

Spinning  of  natural  and/or  man-made  staple  fibres  or  extrusion  of  man-made  filament 
yarn, in each case accompanied by knitting 

or 

Knitting accompanied by dyeing or by flocking or by coating 

or 

Flocking accompanied by dyeing or by printing 

or 

Dyeing of yarn of natural fibres accompanied by knitting 

or 

Twisting  or  texturing  accompanied  by  knitting  provided  that  the  value  of  the  non-
twisted/non-textured  yarns  used  does  not  exceed  47.5%  of  the  ex-works  price  of  the 
product 

Knitting and making-up (including cutting) (74)(75) 

Chapter 61 

Articles  of  apparel  and 
clothing  accessories,  knitted 
or crocheted: 

by 

sewing 
-  Obtained 
together 
otherwise 
or 
assembling,  two  or  more 
pieces 
or 
crocheted 
fabric  which 
have  been  either  cut  to 
form  or  obtained  directly 
to form 

knitted 

of 

-  Other  

Spinning  of  natural  and/or  man-made  staple  fibres  or  extrusion  of  man-made  filament 
yarn, in each case accompanied by knitting (knitted to shape products) 

or 

Dyeing of yarn of natural fibres accompanied by knitting (knitted to shape products) (76) 

70 

71 

72 

73 

74 

75 

76 

The use of this material is restricted to the manufacture of woven fabrics of a kind used in paper-making machinery. 
The use of this material is restricted to the manufacture of woven fabrics of a kind used in paper-making machinery. 
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 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
See Introductory Note 7. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 

EN 

138 

   EN 

 
 
 
 
 
                                                                                                                                                         
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

Ex Chapter 62 

Articles  of  apparel  and 
accessories,  not 
clothing 
knitted  or  crocheted;  except 
for: 

ex 6202, 
ex 6204, 
ex 6206, 
ex 6209 
ex 6211 

ex 6210 
ex 6216 

ex 6212 

Women's,  girls'  and  babies' 
clothing 
clothing 
and 
accessories 
babies, 
embroidered 

for 

Fire-resistant  equipment  of 
fabric  covered  with  foil  of 
aluminised polyester 

and 

and 

Brassieres,  girdles,  corsets, 
braces,  suspenders,  garters 
and similar articles and parts 
thereof, knitted or crocheted 

Weaving accompanied by making-up (including cutting) 

or 

Making-up  preceded  by  printing  accompanied  by  at  least  two  preparatory  or  finishing 
operations  (such  as  scouring,  bleaching,  mercerising,  heat  setting,  raising,  calendering, 
shrink  resistance  processing,  permanent  finishing,  decatising,  impregnating,  mending 
and burling), provided that the value of the unprinted fabric used does not exceed 47.5% 
of the ex-works price of the product (77)(78) 

Weaving accompanied by making-up (including cutting) 

or 

Manufacture  from  unembroidered  fabric,  provided  that  the  value  of  the  unembroidered 
fabric used does not exceed 40% of the ex-works price of the product (79) 

Weaving accompanied by making-up (including cutting) 

or 

Coating provided that the value of the uncoated fabric used does not exceed 40% of the 
ex-works price of the product accompanied by making-up (including cutting) (80) 

Knitting and making-up (including cutting) (81)(82) 

by 

-  Obtained 
sewing 
together 
or 
otherwise 
assembling, 
two  or  more 
or 
of 
pieces 
crocheted fabric which have 
been  either  cut  to  form  or 
obtained directly to form 

knitted 

- Other  

Spinning  of  natural  and/or  man-made  staple  fibres  or  extrusion  of  man-made  filament 
yarn, in each case accompanied by knitting (knitted to shape products) 

or 

Dyeing of yarn of natural fibres accompanied by knitting (knitted to shape products) (83) 

6213 and 6214 

shawls, 
Handkerchiefs, 
scarves,  mufflers,  mantillas, 
veils and the like: 

-  Embroidered 

Weaving accompanied by making-up (including cutting) 

or 

Manufacture  from  unembroidered  fabric,  provided  that  the  value  of  the  unembroidered 
fabric used does not exceed 40% of the ex-works price of the product(84) 

or 

Making-up  preceded  by  printing  accompanied  by  at  least  two  preparatory  or  finishing 
operations  (such  as  scouring,  bleaching,  mercerising,  heat  setting,  raising,  calendering, 
shrink  resistance  processing,  permanent  finishing,  decatising,  impregnating,  mending 
and burling), provided that the value of the unprinted fabric used does not exceed 47.5% 
of the ex-works price of the product (85)(86) 

77 

78 

79 

80 

81 

82 

83 

84 

For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
See Introductory Note 7. 
See Introductory Note 7. 
See Introductory Note 7. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
See Introductory Note 7. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
See Introductory Note 7. 

EN 

139 

   EN 

 
 
 
 
 
 
                                                 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

-  Other 

Weaving accompanied by making-up (including cutting) 

or 

Making-up  followed  by  printing  accompanied  by  at  least  two  preparatory  finishing 
operations  (such  as  scouring,  bleaching,  mercerising,  heat  setting,  raising,  calendering, 
shrink  resistance  processing,  permanent  finishing,  decatising,  impregnating,  mending 
and burling), provided that the value of the unprinted fabric used does not exceed 47.5% 
of the ex-works price of the product (87)(88) 

6217 

parts 

Other  made  up  clothing 
accessories; 
of 
garments  or  of  clothing 
accessories, other than those 
of heading 6212: 

-  Embroidered 

Weaving accompanied by making-up (including cutting) 

or 

Manufacture  from  unembroidered  fabric,  provided  that  the  value  of  the  unembroidered 
fabric used does not exceed 40% of the ex-works price of the product (89) 

-  Fire-resistant equipment of 
fabric covered with foil of 
aluminised polyester 

Weaving accompanied by making-up (including cutting) 

or 

Coating provided that the value of the uncoated fabric used does not exceed 40% of the 
ex-works price of the product accompanied by making-up (including cutting) (90) 

-  Interlinings for collars and 

cuffs, cut out 

Manufacture from materials of any heading, except that of the product, and in which the 
value of all the materials used does not exceed 40% of the ex-works price of the product 

-  Other 

Weaving accompanied by making-up (including cutting) (91) 

Ex Chapter 63 

6301 to 6304 

Other  made-up 
textile 
articles;  sets;  worn  clothing 
and  worn 
textile  articles; 
rags; except for: 

travelling 

Blankets, 
rugs, 
bed  linen  etc.;  curtains  etc.; 
other furnishing articles: 

-  Of felt, of nonwovens 

-  Other: 

Manufacture from materials of any heading, except that of the product 

Extrusion of man-made fibres or use of natural fibres in each case accompanied by non-
woven process including needle punching and making-up (including cutting) (92) 

--  Embroidered 

Weaving  or  knitting  accompanied  by  making-up  (including  cutting)  (reference  to 

tolerance to be added)93 

or 

Manufacture  from  unembroidered  fabric,  provided  that  the  value  of  the  unembroidered 
fabric used does not exceed 40% of the ex-works price of the product (94) 

--  Other 

Weaving or knitting accompanied by making-up (including cutting) 

85 

86

87

88

89

90

91

92 
93 
94

For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
See Introductory Note 7. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
See Introductory Note 7. 
See Introductory Note 7. 
See Introductory Note 7. 
See Introductory Note 7. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
See Introductory Note 7. 
See Introductory Note 7. 

EN 

140 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                                                                                                                         
 
 
 
 
 
 
 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

6305 

6306 

6307 

6308 

Sacks  and  bags,  of  a  kind 
the  packing  of 
used  for 
goods 

Extrusion  of  man-made  fibres  or  spinning  of  natural  and/or  man-made  staple  fibres 
accompanied by weaving or knitting and making-up (including cutting) (95) 

awnings 

Tarpaulins, 
and 
sunblinds;  tents;  sails  for 
boats, 
or 
landcraft; camping goods: 

sailboards 

-  Of nonwovens 

Extrusion  of  man-made  fibres  or  natural  fibres  in  each  case  accompanied  by  any  non-
woven techniques including needle punching 

-  Other 

Weaving accompanied by making-up (including cutting) (96)(97) 

or 

Coating provided that the value of the uncoated fabric used does not exceed 40% of the 
ex-works price of the product accompanied by making-up (including cutting) 

Other  made-up 
including dress patterns 

articles, 

Manufacture in which the value of all the materials used does not exceed 40% of the ex-
works price of the product 

Sets  consisting  of  woven 
fabric  and  yarn,  whether  or 
not  with  accessories,  for 
rugs, 
making 
tapestries, embroidered table 
cloths  or 
serviettes,  or 
similar  textile  articles,  put 
up in packings for retail sale 

into 

up 

Each item in the set must satisfy the rule which would apply to it if it were not included 
in  the  set.  However,  non-originating  articles  may  be  incorporated,  provided  that  their 
total value does not exceed 15% of the ex-works price of the set 

Manufacture from materials of any heading, except from assemblies of uppers affixed to 
inner soles or to other sole components of heading 6406 

Manufacture from materials of any heading, except that of the product 

Ex Chapter 64 

6406 

Footwear,  gaiters  and  the 
like;  parts  of  such  articles; 
except for: 

Parts  of  footwear  (including 
uppers  whether  or  not 
attached  to  soles  other  than 
outer  soles);  removable  in-
soles,  heel  cushions  and 
similar 
gaiters, 
articles; 
leggings and similar articles, 
and parts thereof 

Chapter 65 

Headgear and parts thereof 

Manufacture from materials of any heading, except that of the product 

Chapter 66 

Chapter 67 

ex Chapter 68 

Umbrellas,  sun  umbrellas, 
seat-sticks, 
walking-sticks, 
and 
whips, 
parts thereof: 

riding-crops, 

Prepared  feathers  and  down 
and articles made of feathers 
or 
artificial 
down; 
flowers;  articles  of  human 
hair 

of 

Articles  of  stone,  plaster, 
cement,  asbestos,  mica  or 
similar materials, except for: 

Manufacture from materials of any heading, except that of the product  

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product 

Manufacture from materials of any heading, except that of the product  

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

ex 6803 

Articles  of  slate  or  of 
agglomerated slate 

Manufacture from worked slate 

95

96

97

For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6. 
See Introductory Note 7. 

EN 

141 

   EN 

 
 
 
 
                                                 
 
 
 
Harmonised 
System 
heading 

(1) 

ex 6812 

ex 6814 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

Manufacture from materials of any heading 

(3) 

Manufacture from worked mica (including agglomerated or reconstituted mica) 

(2) 

Articles  of  asbestos;  articles 
of  mixtures  with  a  basis  of 
asbestos or of mixtures with 
a  basis  of  asbestos  and 
magnesium carbonate 

Articles  of  mica,  including 
or 
agglomerated 
reconstituted  mica,  on  a 
support of paper, paperboard 
or other materials 

Chapter 69 

Ceramic products 

Manufacture from materials of any heading, except that of the product 

ex Chapter 70 

Glass  and  glassware,  except 
for: 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

7006 

7010 

7013 

Glass of heading 7003, 7004 
or  7005,bent,  edge-worked, 
engraved, drilled, 

–  Glass-plate 
substrates, 
coated  with  a  dielectric  thin 
film, and of a semiconductor 
grade  in  accordance  with 
SEMII-standards98 

Manufacture from non-coated glass-plate substrate of heading 7006 

– Other 

Manufacture from materials of heading 7001 

kind 

Carboys, bottles, flasks, jars, 
pots,  phials,  ampoules  and 
other containers, of glass, of 
a 
the 
used 
conveyance  or  packing  of 
jars  of 
goods;  preserving 
glass;  stoppers, 
lids  and 
other closures, of glass 

for 

Manufacture from materials of any heading, except that of the product 

or 

Cutting of glassware, provided that the total value of the uncut glassware used does not 
exceed 50% of the ex-works price of the product 

Glassware of a kind used for 
table,  kitchen,  toilet,  office, 
indoor  decoration  or  similar 
purposes  (other  than  that  of 
heading 7010 or 7018) 

Manufacture from materials of any heading, except that of the product 

or 

Cutting of glassware, provided that the total value of the uncut glassware used does not 
exceed 50% of the ex-works price of the product 

or 

Hand-decoration  (except  silk-screen  printing)  of  hand-blown  glassware,  provided  that 
the total value of the hand-blown glassware used does not exceed 50% of the ex-works 
price of the product 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

ex Chapter 71 

Natural  or  cultured  pearls, 
precious  or  semi-precious 
stones, 
precious  metals, 
metals  clad  with  precious 
metal,  and  articles  thereof; 
imitation 
jewellery;  coin, 
except for: 

7106,  7108  and 
7110 

Precious metals: 

98

SEMII – Semiconductor Equipment and Materials Institute Incorporated 

EN 

142 

   EN 

 
 
 
 
 
                                                 
 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

- Unwrought 

ex  7107, 
ex 
7109  and  ex 
7111 

7115 

-  Semi-manufactured  or  in 
powder form 

Metals  clad  with  precious 
metals, semi-manufactured 

Other  articles  of  precious 
metal  or  of  metal  clad  with 
precious metal 

(3) 

Manufacture  from  materials  of  any  heading,  except  those  of  headings  7106,  7108  and 
7110 

or 

Electrolytic, thermal or chemical separation of precious metals of heading 7106, 7108 or 
7110 

or 

Fusion and/or alloying of precious metals of heading 7106, 7108 or 7110 with each other 
or with base metals 

Manufacture from unwrought precious metals 

Manufacture from metals clad with precious metals, unwrought 

Manufacture from materials of any heading, except that of the product 

7117 

Imitation jewellery 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture from base metal parts, not plated or covered with precious metals, provided 
that 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 from materials of any heading, except that of the product 

7207 

7208 to 7216 

7217 

7218  91  and 
7218 99 

7219 to 7222 

Semi-finished  products  of 
iron or non-alloy steel 

Flat-rolled  products,  bars 
and rods, angles, shapes and 
sections of iron or non-alloy 
steel 

Wire  of  iron  or  non-alloy 
steel 

Semi-finished products 

Flat-rolled  products,  bars 
and rods, angles, shapes and 
sections of stainless steel 

Manufacture from materials of heading 7201, 7202, 7203, 7204, 7205 or 7206 

Manufacture  from  ingots  or  other  primary  forms  or  semi-finished  materials  of 
heading 7206 or 7207 

Manufacture from semi-finished materials of heading 7207 

Manufacture  from  materials  of  heading 7201,  7202,  7203,  7204,  7205  or  sub-heading 
7218 10 

Manufacture  from  ingots  or  other  primary  forms  or  semi-finished  materials  of 
heading 7218 

7223 

Wire of stainless steel 

Manufacture from semi-finished materials of heading 7218 

7224 90 

Semi-finished products 

Manufacture  from  materials  of  heading 7201,  7202,  7203,  7204,  7205  or  sub-heading 
7224 10 

7225 to 7228 

Flat-rolled  products,  hot-
in 
rolled  bars  and  rods, 
irregularly  wound 
coils; 
angles,  shapes  and  sections, 
of  other  alloy  steel;  hollow 
drill  bars  and  rods,  of  alloy 
or non-alloy steel 

Manufacture  from  ingots  or  other  primary  forms  or  semi-finished  materials  of 
heading 7206, 7207, 7218 or 7224 

7229 

Wire of other alloy steel 

Manufacture from semi-finished materials of heading 7224 

ex Chapter 73 

Articles  of  iron  or  steel; 
except for: 

Manufacture from materials of any heading, except that of the product 

ex 7301 

Sheet piling 

Manufacture from materials of heading 7207 

7302 

Railway  or  tramway  track 
construction material of iron 
or steel, the following: rails, 
check-rails  and  rack  rails, 
crossing 
blades, 
switch 

Manufacture from materials of heading 7206 

EN 

143 

   EN 

 
 
 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

7304,  7305  and 
7306 

ex 7307 

7308 

frogs,  point  rods  and  other 
crossing  pieces, 
sleepers 
fish-plates, 
(cross-ties), 
chairs,  chair  wedges,  sole 
pates (base plates), rail clips, 
ties  and  other 
bedplates, 
material 
for 
specialised 
jointing or fixing rails 

Tubes,  pipes  and  hollow 
profiles,  of  iron  (other  than 
cast iron) or steel 

Tube  or  pipe  fittings  of 
stainless steel 

roofs, 

towers, 

Structures 
(excluding 
prefabricated  buildings  of 
heading 9406)  and  parts  of 
structures 
example, 
(for 
bridges  and  bridge-sections, 
lattice 
lock-gates, 
roofing 
masts, 
and 
frameworks, 
windows  and  their  frames 
and  thresholds  for  doors, 
shutters,  balustrades,  pillars 
and  columns),  of  iron  or 
steel;  plates,  rods,  angles, 
shapes,  sections,  tubes  and 
the  like,  prepared  for  use  in 
structures, of iron or steel 

doors 

Manufacture from materials of heading 7206, 7207, 7208, 7209, 7210, 7211, 7212, 7218, 
7219, 7220 or 7224 

Turning,  drilling,  reaming,  threading,  deburring  and  sandblasting  of  forged  blanks, 
provided t hat the total value of the forged blanks used does not exceed 35 % of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product. However, welded 
angles, shapes and sections of heading 7301 may not be used 

ex 7315 

Skid chain 

Manufacture  in  which  the  value  of  all  the  materials  of  heading  7315  used  does  not 
exceed 50% of the ex-works price of the product 

ex Chapter 74 

Copper  and  articles  thereof; 
except for: 

7403 

Refined  copper  and  copper 
alloys, unwrought 

Manufacture from materials of any heading, except that of the product 

Manufacture from materials of any heading 

Chapter 75 

Nickel and articles thereof 

Manufacture from materials of any heading, except that of the product 

ex Chapter 76 

Aluminium 
and 
thereof; except for: 

articles 

Manufacture from materials of any heading, except that of the product 

7601 

7607 

Chapter 77 

Unwrought aluminium 

Manufacture from materials of any heading 

Manufacture from materials of any heading, except that of the product and heading 7606 

Aluminium  foil  (whether  or 
not  printed  or  backed  with 
paper,  paperboard,  plastics 
or similar backing materials) 
of  a  thickness  (excluding 
any  backing)  not  exceeding 
0,2 mm 

Reserved for possible future 
the  Harmonised 
in 
use 
System 

ex Chapter 78 

Lead  and  articles  thereof, 
except for: 

7801 

Unwrought lead: 

Manufacture from materials of any heading, except that of the product 

- Refined lead 

Manufacture from materials of any heading 

- Other 

Manufacture from materials of any heading, except that of the product. However, waste 
and scrap of heading 7802 may not be used 

Chapter 79 

Zinc and articles thereof: 

Manufacture from materials of any heading, except that of the product 

EN 

144 

   EN 

 
 
 
 
 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

Chapter 80 

Tin and articles thereof 

Manufacture from materials of any heading, except that of the product 

Chapter 81 

ex Chapter 82 

Other  base  metals;  cermets; 
articles thereof 

Tools,  implements,  cutlery, 
spoons  and  forks,  of  base 
metal;  parts  thereof  of  base 
metal; except for: 

Manufacture from materials of any heading 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

8206 

8211 

8214 

8215 

Tools of two or more of the 
headings  8202  to  8205,  put 
up in sets for retail sale 

Manufacture  from  materials  of  any  heading,  except  those  of  headings  8202  to  8205. 
However, tools of headings 8202 to 8205 may be incorporated into the set, provided that 
their total value does not exceed 15% of the ex-works price of the set 

Manufacture from materials of any heading, except that of the product. However, knife 
blades and handles of base metal may be used 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product.  However, 
handles of base metal may be used 

Knives  with  cutting  blades, 
serrated  or  not  (including 
pruning  knives),  other  than 
knives of heading 8208 , and 
blades therefor 

Other articles of cutlery (for 
clippers, 
hair 
example; 
kitchen 
butchers' 
or 
and 
cleavers, 
paper 
mincing 
or 
knives); 
pedicure 
and 
instruments  (including  nail 
files) 

choppers 
knives, 
manicure 
sets 

forks, 

ladles, 
cake-servers, 
butter-knives, 
tongs  and  similar 

Spoons, 
skimmers, 
fish-knives, 
sugar 
kitchen or tableware 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product.  However, 
handles of base metal may be used 

ex Chapter 83 

Miscellaneous  articles  of 
base metal; except for: 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product. However, other 
materials of heading 8302 may be used, provided that their total value does not exceed 
20% of the ex-works price of the product 

Manufacture from materials of any heading, except that of the product. However, other 
materials of heading 8306 may be used, provided that their total value does not exceed 
30% of the ex-works price of the product 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

ex 8302 

ex 8306 

Other  mountings, 
fittings 
and  similar  articles  suitable 
for  buildings,  and automatic 
door closers 

Statuettes 
ornaments, of base metal 

and 

other 

ex Chapter 84 

reactors,  boilers, 
Nuclear 
machinery  and  mechanical 
appliances;  parts 
thereof; 
except for: 

reactors; 

fuel 
Nuclear 
elements  (cartridges),  non-
nuclear 
irradiated, 
and 
reactors;  machinery 
apparatus 
isotopic 
separation 

for 

for 

8401 

8407 

8408 

Spark-ignition  reciprocating 
or 
internal 
combustion piston engines 

rotary 

Compression-ignition 
internal  combustion  piston 
(diesel  or  semi-
engines 

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 

EN 

145 

   EN 

 
 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

diesel engines 

8427 

Fork-lift trucks; other works 
trucks  fitted  with  lifting  or 
handling equipment 

8482 

Ball or roller bearings 

ex Chapter 85 

8501, 8502 

8513 

Electrical  machinery  and 
equipment and parts thereof; 
sound 
and 
recorders 
reproducers, 
television 
image  and  sound  recorders 
and  reproducers,  and  parts 
and  accessories  of  such 
articles; except for: 

motors 

and 
Electric 
Electric 
generators; 
generating  sets  and  rotary 
converters 

Portable 
lamps 
electric 
designed to function by their 
own  source  of  energy  (for 
example, 
batteries, 
dry 
accumulators,  magnetos), 
lighting 
than 
other 
equipment of heading 8512 

(3) 

Manufacture in which the value of all the materials used does not exceed 70% 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 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product  and  of  heading 
8503 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product.  

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

8519 

Sound  recording  and  sound 
reproducing apparatus 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product  and  of  heading 
8522 

8521 

8523 

8525 

8526 

recording 

or 
Video 
apparatus, 
reproducing 
whether or not incorporating 
a video tuner 

sound 

Prepared  unrecorded  media 
for 
recording  or 
similar  recording  of  other 
phenomena, 
than 
products of Chapter 37 

other 

Transmission  apparatus  for 
radio-broadcasting 
or 
television,  whether  or  not 
reception 
incorporating 
apparatus 
sound 
reproducing 
recording  or 
apparatus; 
television 
cameras, digital cameras and 
other 
camera 
video 
recorders 

or 

Radar 
radio 
apparatus, 
navigational  aid  apparatus 
and  radio  remote  control 
apparatus 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product  and  of  heading 
8522 

or 

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 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product  and  of  heading 
8529 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product  and  of  heading 
8529 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

EN 

146 

   EN 

 
 
Harmonised 
System 
heading 

(1) 

8527 

8528 

8535 to 8537 

8540  11  and 
8540 12 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(2) 

(3) 

apparatus 

Reception 
for 
radio-broadcasting,  whether 
or  not  combined, 
the 
same  housing,  with  sound 
recording  or 
reproducing 
apparatus or a clock 

in 

apparatus 

Monitors and projectors, not 
television 
incorporating 
apparatus; 
reception 
reception 
for 
television,  whether  or  not 
radio-
incorporating 
broadcast receivers or sound 
or 
or 
reproducing apparatus 

recording 

video 

Electrical 
apparatus 
for 
protecting 
or 
switching 
electrical  circuits,  or  for 
making  connections  to  or  in 
electrical 
circuits; 
connectors for optical fibres, 
fibre  bundles  or 
optical 
cables; 
panels, 
boards, 
consoles,  desks,  cabinets 
and  other  bases,  for  electric 
control or the distribution of 
electricity 

ray 
tubes, 

television 
Cathode 
picture 
including 
video  monitor  cathode  ray 
tubes 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product  and  of  heading 
8529 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product  and  of  heading 
8529 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

Manufacture  from  materials  of  any  heading,  except  that  of  the  product  and  of  heading 
8538 

or 

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 

8542 31 to 8542 
33 and 8542 39 

Monolithic 
circuits 

integrated 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

or 

The operation of diffusion, in which integrated circuits are formed on a semi-conductor 
substrate  by  the  selective  introduction  of  an  appropriate  dopant,  whether  or  not 
assembled and/or tested in a non-party 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

or 

cable 

(including 
Insulated 
anodised) 
enamelled 
wire, 
(including 
coaxial  cable)  and  other 
insulated 
electric 
conductors,  whether  or  not 
fitted  with 
connectors; 
optical fibre cables, made up 
sheathed 
of 
fibres,  whether  or  not 
assembled  with 
electric 
conductors  or  fitted  with 
connectors 

individually 

Carbon  electrodes,  carbon 
brushes, 
carbons, 
lamp 
battery  carbons  and  other 
articles  of  graphite  or  other 
carbon,  with  or  without 
metal,  of  a  kind  used  for 
electrical purposes 

Electrical  insulators  of  any 
material 

Insulating 
electrical 

fittings 

for 
machines, 

Manufacture in which the value of all the materials used does not exceed 70% 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 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-

8544 

8545 

8546 

8547 

EN 

147 

   EN 

 
 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

appliances  or  equipment, 
being 
fittings  wholly  of 
insulating  materials  apart 
from any minor components 
(for  example, 
of  metal 
sockets) 
threaded 
during 
incorporated 
for 
moulding 
purposes  of  assembly,  other 
than  insulators  of  heading 
8546; 
conduit 
electrical 
tubing  and  joints  therefore, 
of  base  metal  lined  with 
insulating material 

solely 

Waste  and  scrap  of  primary 
cells,  primary  batteries  and 
electric  accumulators;  spent 
primary  cells,  spent  primary 
batteries  and  spent  electric 
electrical 
accumulators; 
parts 
or 
apparatus,  not  specified  or 
included  elsewhere  in  this 
Chapter 

of  machinery 

or 

tramway 
Railway 
locomotives, 
rolling-stock 
and parts thereof; railway or 
tramway  track  fixtures  and 
fittings  and  parts  thereof; 
(including 
mechanical 
electro-mechanical) 
traffic 
signalling  equipment  of  all 
kinds: 

tramway 

Vehicles  other  than  railway 
or 
rolling-stock, 
and  parts  and  accessories 
thereof; except for: 

(including 
Motorcycles 
mopeds)  and  cycles  fitted 
with  an  auxiliary  motor, 
with  or  without  side-cars; 
side-cars 

8548 

Chapter 86 

ex Chapter 87 

8711 

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 

Manufacture in which the value of all the materials used does not exceed 70% 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 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

ex Chapter 88 

Aircraft, 
parts thereof, except for: 

spacecraft, 

and 

Manufacture from materials of any heading, except that of the product 

or 

ex 8804 

Rotochutes 

Manufacture from materials of any heading, including other materials of heading 8804 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Chapter 89 

Ships,  boats  and  floating 
structures 

ex Chapter 90 

Optical, 
photographic, 
cinematographic, measuring, 
checking, precision, medical 
or  surgical  instruments  and 
apparatus; 
and 
accessories  thereof,  except 

parts 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

EN 

148 

   EN 

 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

for: 

(3) 

9002 

9033 

Chapter 91 

Chapter 92 

Chapter 93 

Chapter 94 

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 

Lenses,  prisms,  mirrors  and 
other  optical  elements,  of 
any  material,  mounted, 
being  parts  of  or fittings  for 
instruments  or  apparatus, 
other  than  such  elements  of 
glass not optically worked 

Parts  and  accessories  (not 
specified 
included 
or 
elsewhere  in  this  Chapter) 
for  machines,  appliances, 
instruments  or  apparatus  of 
Chapter 90 

Clocks  and  watches  and 
parts thereof 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Musical  instruments;  parts 
and  accessories  of  such 
articles 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Arms and ammunition; parts 
and accessories thereof 

Manufacture in which the value of all the materials used does not exceed 50% of the ex-
works price of the product 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

cushions 

bedding, 
Furniture; 
mattress 
mattresses, 
supports, 
and 
similar  stuffed  furnishings; 
lamps  and  lighting  fittings, 
not  elsewhere  specified  or 
included;  illuminated  signs, 
illuminated  name-plates  and 
the 
prefabricated 
buildings 

like; 

ex Chapter 95 

Toys,  games  and  sports 
requisites; 
and 
accessories  thereof,  except 
for: 

parts 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

ex 9506 

Golf clubs and parts thereof  Manufacture  from  materials  of  any  heading,  except  that  of  the  product.  However, 

ex Chapter 96 

Miscellaneous manufactured 
articles, except for: 

roughly-shaped blocks for making golf-club heads may be used 

Manufacture from materials of any heading, except that of the product 

or 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

Manufacture from materials of any heading 

9601 and 9602  Worked 

ivory, 

bone, 
tortoiseshell,  horn,  antlers, 
coral,  mother-of-pearl  and 
other 
carving 
animal 
material,  and  articles  of 
these  materials  (including 
articles 
by 
moulding. 

obtained 

vegetable 

Worked 
or 
mineral carving material and 
articles  of  these  materials; 
moulded  or  carved  articles 
of wax, of stearin, of natural 
gums  or  natural  resins  or  of 
modelling  pastes,  and  other 
moulded  or  carved  articles, 
not  elsewhere  specified  or 
worked, 
included; 

EN 

149 

   EN 

 
Harmonised 
System 
heading 

Description of 
product 

Qualifying operation (Working or processing, carried out on non-
originating materials, which confers originating status) 

(1) 

(2) 

(3) 

Manufacture in which the value of all the materials used does not exceed 70% of the ex-
works price of the product 

unhardened  gelatine  (except 
gelatine  of  heading  3503) 
and  articles  of  unhardened 
gelatine 

appliances 

Brooms,  brushes  (including 
brushes constituting parts of 
or 
machines, 
vehicles), 
hand-operated 
mechanical  floor  sweepers, 
not  motorized,  mops  and 
feather  dusters;  prepared 
knots and tufts for broom or 
brush  making;  paint  pads 
and rollers, squeegees (other 
than roller squeegees) 

Travel  sets 
for  personal 
toilet,  sewing  or  shoe  or 
clothes cleaning 

Each item in the set must satisfy the rule which would apply to it if it were not included 
in  the  set.  However,  non-originating  articles  may  be  incorporated,  provided  that  their 
total value does not exceed 15% of the ex-works price of the set 

Manufacture: 

- from materials of any heading, except that of the product, and 

- in which the value of all the materials used does not exceed 70% of the ex-works price 
of the product 

Manufacture from materials of any heading, except that of the product. However, nibs or 
nib-points of the same heading as the product may be used 

Buttons, 
press-fasteners, 
snap-fasteners  and  press-
studs,  button  moulds  and 
other  parts  of  these  articles; 
button blanks 

other 

pens; 

Ball-point  pens;  felt-tipped 
and 
porous-tipped 
pens  and  markers;  fountain 
pens,  stylograph  pens  and 
other 
duplicating 
stylos;  propelling  or  sliding 
pencils; 
pen-holders, 
pencilholders  and  similar 
(including 
holders;  parts 
caps  and  clips)  of 
the 
foregoing articles, other than 
those of heading 9609 

or 

Typewriter 
similar 
ribbons,  inked  or  otherwise 
prepared 
giving 
for 
impressions,  whether  or  not 
on  spools  or  in  cartridges; 
ink-pads,  whether  or  not 
inked, with or without boxes 

Manufacture: 

- from materials of any heading, except that of the product, and 

- in which the value of all the materials used does not exceed 70% of the ex-works price 
of the product 

Pocket  lighters,  gas  fuelled, 
refillable 

Manufacture  in  which  the  total  value  of  the  materials  of  heading 9613  used  does  not 
exceed 30% of the ex-works price of the product 

Smoking  pipes  (including 
pipe  bowls)  and  cigar  or 
cigarette  holders,  and  parts 
thereof 

Works  of  art,  collectors' 
pieces and antiques 

Manufacture from materials of any heading 

Manufacture from materials of any heading, except that of the product 

9603 

9605 

9606 

9608 

9612 

9613 20 

9614 

Chapter 97 

EN 

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APPENDIX III 

Form for movement certificate EUR.1 

1. 

2. 

3. 

Movement  certificates  EUR.1  shall  be  made  out  on  the  form  of  which  a  specimen 
appears in this Appendix. This form shall be printed in one or more of the languages 
in  which  this  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 handwritten, 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  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. 

EN 

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(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 

EN 

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   EN 

 
 
NOTES 

1. 
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. 

2. 
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. 
identified. 

Goods must be described in accordance with commercial practice and with sufficient detail to enable them to be 

EN 

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APPENDIX IV 

Application for a movement certificate EUR.1 

(1) If goods are not packed, indicate number of articles or state 'in bulk' as appropriate. 

EN 

154 

   EN 

 
 
APPENDIX V 

Declaration by the exporter 

(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. 

EN 

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APPENDIX VI 

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. 

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). 

Spanish version  

Vývozce  výrobků  uvedených  v  tomto  dokumentu  (číslo  povolení  …(1))  prohlašuje,  že  kromě  zřetelně 
označených, mají tyto výrobky preferenční původ v …(2). 

Czech version 

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). 

German version  

Der  Ausführer  (Ermächtigter  Ausführer;  Bewilligungs-Nr.  ...(1))  der  Waren,  auf  die  sich  dieses  Handelspapier 
bezieht,  erklärt,  dass  diese  Waren,  soweit  nicht  anderes  angegeben,  präferenzbegünstigte  ...(2)  Ursprungswaren 
sind. 

Käesoleva dokumendiga hõlmatud toodete eksportija (tolliameti kinnitus nr. ...(1)) deklareerib, et need tooted on 
...(2) sooduspäritoluga, välja arvatud juhul kui on selgelt näidatud teisiti. 

Estonian version 

Ο εξαγωγέας των προϊόντων που καλύπτονται από το παρόν έγγραφο (άδεια τελωνείου υπ' αριθ. ...(1)) δηλώνει 
ότι, εκτός εάν δηλώνεται σαφώς άλλως, τα προϊόντα αυτά είναι προτιμησιακής καταγωγής ...(2). 

Greek version  

The  exporter  of  the  products  covered  by  this  document  (customs  authorization  No  ...(1))  declares  that,  except 
where otherwise clearly indicated, these products are of ...(2) preferential origin. 

English 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)). 

French version 

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)). 

Eksportētājs produktiem, kuri ietverti šajā dokumentā (muitas pilnvara Nr. …(1)), deklarē, ka, iznemot tur, kur ir 
citādi skaidri noteikts, šiem produktiem ir priekšrocību izcelsme no …(2). 

Latvian version 

EN 

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Lithuanian version 

Šiame  dokumente  išvardintų  prekių  eksportuotojas  (muitinès  liudijimo  Nr  …(1))  deklaruoja,  kad,  jeigu  kitaip 
nenurodyta, tai yra …(2) preferencinès kilmés prekés. 

A  jelen  okmányban  szereplő  áruk  exportőre  (vámfelhatalmazási  szám:  …(1))  kijelentem,  hogy  eltérő  jelzés 
hianyában az áruk kedvezményes …(2) származásúak. 

Hungarian version 

L-esportatur tal-prodotti koperti b’dan id-dokument (awtorizzazzjoni tad-dwana nru. …(1)) jiddikjara li, ħlief fejn 
indikat b’mod ċar li mhux hekk, dawn il-prodotti huma ta’ oriġini preferenzjali …(2). 

Maltese version 

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). 

Polish version 

Eksporter  produktów  objętych  tym  dokumentem  (upoważnienie  władz  celnych  nr  …(1))  deklaruje,  że  z 
wyjątkiem gdzie jest to wyraźnie określone, produkty te mają …(2) preferencyjne pochodzenie. 

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). 

Izvoznik  blaga,  zajetega  s  tem  dokumentom  (pooblastilo  carinskih  organov  št  …(1))  izjavlja,  da,  razen  če  ni 
drugače jasno navedeno, ima to blago preferencialno …(2) poreklo. 

Slovenian version 

Vývozca  výrobkov  uvedených  v  tomto  dokumente  (číslo  povolenia  …(1))  vyhlasuje,  že  okrem  zreteľne 
označených, majú tieto výrobky preferenčný pôvod v …(2). 

Slovak version 

Finnish version 

Tässä asiakirjassa mainittujen tuotteiden viejä (tullin lupa n: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). 

Bulgarian version 

Износителят на продуктите, обхванати от този документ (митническо разрешение № … (1)) декларира, че 
освен кьдето е отбелязано друго, тези продукти са с … преференциален произход (2). 

Exportatorul  produselor  ce  fac  ojiectul  acestui  document  (autorizaţia  vamalâ  nr.  …(1))  declará  cá,  exceptând 
cazul în care în mod expres este indicat altfel, aceste produse sunt de origine preferenţialā …(2). 

Romanian version 

EN 

157 

   EN 

 
1 When the invoice declaration is made out by an approved exporter, 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, 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. 
4 In cases where the exporter is not required to sign, the exemption of signature also implies the exemption of the name of the signatory. 

EN 

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SUPPLIER'S DECLARATION FOR PRODUCTS HAVING PREFERENTIAL ORIGIN STATUS 

APPENDIX VII 

(1) 
- If only some of the goods listed on the invoice are concerned they should be clearly indicated or marked and this 
marking  entered  on  the  declaration  as  follows:"............................  listed  on  this  invoice  and  marked  ....................were 
produced ..............................." 
-  If  a  document  other  than  an  invoice  or  an  annex  to  the  invoice  is  used  (see  Article  32(3)),  the  name  of  the  document 
concerned shall be mentioned instead of the word "invoice" 
(2) 
The European Union, Member State, EPA country or OCT. Where an EPA country or an OCT is given, a reference 
must also be made to the European Union 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) 
(4) 
(5) 

Place and date 
Name and function in company 
Signature 

EN 

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SUPPLIER'S DECLARATION FOR PRODUCTS NOT HAVING PREFERENTIAL ORIGINAL 
STATUS 

APPENDIX VIII 

The above mentioned text, suitably completed in conformity with the footnotes below, constitutes a supplier's 
declaration. The footnotes do not have to be reproduced. 

Note 

- If only some of the goods listed on the invoice are concerned they should be clearly indicated or marked and this 

(1) 
marking entered on the declaration as follows:"............................ listed on this invoice and marked ….................... were 
produced ..............................." 

-  If  a  document  other  than  an  invoice  or  an  annex  to  the  invoice  is  used  (see  Article  32(3)),  the  name  of  the 

document concerned shall be mentioned instead of the word "invoice" 
(2) 
The European Union, Member State, APE country or OCT. 
(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) 
................................., to be added with a description of the processing carried out if this information is required. 
(7) 
(8) 
(9) 

"and have undergone the following processing in [the European Union] [Member State] [APE country] [OCT] [] 

Place and date 
Name and function in company 
Signature 

EN 

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APPENDIX IX 

Information Certificate 

The form of information certificate given in this Annex shall be used and be printed in one or more of 
1. 
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 
handwritten,  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. 

2. 
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. 

3. 
The  national  administrators  may  reserve  the  right  to  print  the  forms  themselves  or  may  have  them 
printed by printers approved by them. In the latter case, each form  must include a 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.

EN 

161 

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EUROPEAN 

UNION

(1) (2) (3) (4) (5) See footnotes overleaf.

EN 

162 

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EN 

163 

   EN 

 
 
 
 
APPENDIX X 

FORM FOR APPLICATION FOR A DEROGATION 

1. 

COMMERCIAL DESCRIPTION OF THE FINISHED PRODUCT 

1.1 Customs classification (H.S. code) 

2. 

COMMERCIAL DESCRIPTION OF NON-ORIGINATING MATERIALS 

2.1 Customs classification (H. S. code) 

3. 

ANTICIPATED  ANNUAL  QUANTITY  OF  EXPORTS  TO  THE  UNION  (EXPRESSED  IN 
WEIGHT, N° OF ARTICLES, METERS OR OTHER UNIT) 

4. 

VALUE OF FINISHED PRODUCTS 

5. 

VALUE OF THE NON-ORIGINATING MATERIALS 

6. 

ORIGIN OF NON-ORIGINATING MATERIALS 

7. 

REASONS  WHY  THE  RULE  OF  ORIGIN  FOR  THE  FINISHED  PRODUCT  CANNOT  BE 
FULFILLED 

EN 

164 

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8. 

DURATION REQUESTED FOR DEROGATION 

From dd/mm/yyyy to dd/mm/yyyy 

9. 

POSSIBLE DEVELOPMENTS TO OVERCOME THE NEED FOR A DEROGATION 

10. 

INFORMATION ABOUT THE COMPANY 

Capital structure of the firm concerned/Amount of investments made or foreseen/Staff employed or expected to 
be employed 

EN 

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APPENDIX XI 

APPLICATION TO BECOME A REGISTERED EXPORTER 

1. Exporter's name, full address and country (Non Confidential) 

2.  Contact  details  including  telephone  and  fax  number  as  well  as  e-mail  address  where  available 
(Confidential) 

3.  Description  of  your  activities,  specifying  whether  your  main  activity  is  producing  or  trading  (Non 
Confidential) and, where applicable, industrial process (Confidential). 

4.  Indicative  description  of  goods  which  qualify  for  preferential  treatment,  including  indicative  list  of 
Harmonised  System  four-digit  headings  (or  chapters  where  goods  traded  fall  within  more  than  twenty 
Harmonised System headings). 

5. Undertaking by exporter 

The undersigned hereby declares that the above details are correct and: 

– 

– 

– 

certifies not to have had a previous registration withdrawn and, should this be the case, certifies to have 
remedied the situation which led to such withdrawal; 

undertakes to make out statements on origin only for goods which qualify for preferential treatment and 
comply with the origin rules specified for those goods in this Annex; 

undertakes  to  maintain  appropriate  commercial  accounting  records  for  production  /  supply  of  goods 
qualifying for preferential treatment and to keep them for at least three years from the date of making out 
of the statement on origin; 

EN 

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– 

– 

undertakes  to  accept  any  control  on  the  accuracy  of  his  statements  on  origin,  including  verification  of 
accounting records and visits to his premises by the Commission or Member States' authorities; 

undertakes  to  request  his  removal  from  the  record  of  registered  exporters  should  he  no  longer  meet  the 
conditions for exporting any goods under this Decision or no longer intend to export such goods. 

____________________________________________________ 

Place, date and signature of authorised signatory; designation and/or title 

6.  Prior  specific  and  informed  consent  of  exporter  to  the  publication  of  his/her  personal  data  on  the 
internet 

The  undersigned  is  hereby  informed  that  the  information  supplied  may  be  stored  on  a  database  of  the 
Commission and that the particulars may be disclosed to the public via the internet, with the exception of 
the  information  which  is  marked  in  this  application  as  confidential.  He  accepts  the  publication  and 
disclosure  of  this  information  via  the  internet.  The  undersigned  may  withdraw  his  consent  to  the 
publication of this information via the internet by sending [electronic mail, fax, written correspondence] 
to the following address: 

____________________________________________________ 

Place, date and signature of authorised signatory; designation and/or title 

7. Box for official use by governmental authority 

The applicant is registered under the following number: 

Registered Number: ______________________________ 

Date of registration _______________________________ 

EN 

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Period of validity from_____________________________ 

Signature and stamp_______________________________ 

Important remark to the attention of the applicant: Please note that all data marked "non confidential" will be 
included in a database accessible to the public; data marked "confidential" will be accessible to your competent 
governmental authorities and competent authorities of the Union and its Member States 

EN 

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APPENDIX XII 

STATEMENT ON ORIGIN  

To  be  made  out  on  any  commercial  documents  showing  the  name  and  full  address  of  the 
exporter and consignee as well as a description of the goods and the date of issue (1) 

French version 

L'exportateur  (Numéro  d’exportateur  enregistré  –  excepté  lorsque  la  valeur  des  produits 
originaires contenus dans l’envoi est inférieure à EUR 10.000 (2)) des produits couverts par le 
présent  document  déclare  que,  sauf  indication  claire  du  contraire,  ces  produits  ont  l'origine 
préférentielle  .  .  .  (3)  au  sens  des  règles  d'origine  de  la  Décision  d'association  des  pays  et 
territoires d'outre-mer et que le critère d’origine satisfait est … …(4) 

English version 

The exporter (Number of Registered Exporter – unless the value of the consigned originating 
products does not exceed EUR 10,000 (2)) of the products covered by this document declares 
that, except where otherwise clearly indicated, these products are of . . . preferential origin (3) 
according to rules of origin of the Decision on the association of the overseas countries and 
territories and that the origin criterion met is … …(4) 

__________________________________ 

(1) 

(2) 

(3) 

(4) 

Where the statement on origin replaces another statement in accordance with Article 
51,  this  shall  be  indicated  and  the  date  of  issue  of  the  original  statement  shall  also 
always be mentioned. 

Where the statement on origin replaces another statement, the subsequent holder of 
the  goods  establishing  such  a  statement  shall  indicate  his  name  and  full  address 
followed by the mention ‘acting on the basis of the statement on origin made out by 
[name  and  full  address  of  the  exporter  in  the  OCT],  registered  under  the  following 
number [Number of Registered Exporter of the exporter in the OCT]’. 

Country of origin of products to be indicated. When the statement on origin relates, 
in whole or in part, to products originating in Ceuta and Melilla within the meaning 
of Article 67, the exporter must clearly indicate them in the document on which the 
statement is made out by means of the symbol "CM". 

Products  wholly  obtained:  enter  the  letter  “P”;  Products  sufficiently  worked  or 
processed: enter the letter “W” followed by the Harmonized Commodity Description 
and  coding  System  (Harmonised  System)  heading  at  the  four-digit  level  of  the 
exported  product  (example  “W”  9618);  where appropriate,  the  above  mention  shall 
be  replaced  with  one  of  the  following  indications:  ‘EU  cumulation’,  ‘OCT 
cumulation’, 'cumulation with EPA country' ‘extended cumulation with country x’ or 
‘Cumul UE’, ‘cumul OCT’, 'cumul avec pays APE', ‘cumul étendu avec le pays x’. 

EN 

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APPENDIX XIII 

PRODUCTS EXCLUDED FROM CUMULATION PROVISIONS REFERRED TO IN 
ARTICLE 8 UNTIL 1 OCTOBER 2015 

HS/CN-Code 

Description 

1701  

1702 

Cane or beet sugar and chemically pure sucrose, in solid form. 

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. 

Ex 
90 
1704 
corresponding  to 
1704 90 99 

Sugar  confectionery,  not  containing  cocoa  (excl.  chewing  gum;  liquorice  extract  containing  more  than  10%  by 
weight  of  sucrose  but  not  containing  other  added  substances;  white  chocolate;  pastes,  including  marzipan  in 
immediate  packings  of  a  net  content  of  1  kg  or  more;  throat  pastilles  and  cough  drops;  sugar-coated  (panned) 
goods; gum confectionery and jelly confectionery, including fruit pastes in the form of sugar confectionery; boiled 
sweets; toffees; caramels and similar sweet; compressed tablets) 

Ex 
10 
1806 
corresponding  to 
1806 10 30 

Ex 
10 
1806 
corresponding  to 
1806 10 90 

Ex 
20 
1806 
corresponding  to 
1806 20 95 

Ex 
90 
1901 
corresponding  to 
1901 90 99 

Ex 
12 
2101 
corresponding  to 
2101 12 98 

Ex 
20 
2101 
corresponding  to 
2101 20 98 

90 
2106 
Ex 
corresponding  to 
2106 90 59 

Ex 
90 
2106 
corresponding  to 
2106 90 98 

Cocoa powder, containing 65% or more but less than 80% by weight of sucrose (inlcluding invert sugar expressed 
as sucrose) or isoglucose expressed as sucrose 

Cocoa  powder  containing  80  %  or  more  by  weight  of  sucrose  (including  invert  sugar  expressed  as  sucrose)  or 
isoglucose expressed as sucrose 

Food preparations containing cocoa in blocks, slabs or bars weighing more than 2 kg or in liquid, paste, powder, 
granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg (excl. cocoa powder, 
preparations containing 18% or more by weight of cocoa butter or containing a combined weight of 25% or more of 
cocoa butter and milkfat; chocolate milk crumb; chocolate flavour coating; chocolate and chocolate products; sugar 
confectionery and substitutes thereof made from sugar substitution products, containing cocoa; spreads containing 
cocoa; preparations containing cocoa for making beverages) 

Food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 40% by 
weight  of  cocoa  calculated  on  a  totally  defatted  basis,  not  elsewhere  specified  or  included,  food  preparations  of 
goods of headings 0401 to 0404, not containing cocoa or containing less than 5% by weight of cocoa calculated on 
a  totally  defatted  basis,  not  elsewhere  specified  or  included  (excl.  food  preparations  containing  nor  or  less  than 
1.5% milkfat, 5% sucrose (including invert sugar) or isoglucose, 5% glucose or starch; food preparations in powder 
form of goods of headings 0401 to 0404; preparations for infant use, put up for retail sale; mixes and doughs for the 
preparation of bakers' wares of heading 1905)  

Products with a basis of coffee (excl. extracts, essences and concentrates of coffee and preparations with a basis of 
these extracts, essences or concentrates) 

Products with a basis of tea or maté (excl. extracts, essences and concentrates of tea or maté and preparations with a 
basis of these extracts, essences or concentrates) 

Flavoured or coloured sugar syrups (excl. isoglucose syrups, lactose syrup, glucose syrup and maltodextrine syrup) 

Food preparations not elsewhere specified or included (excl. protein concentrates and textured protein substances; 
compound  alcoholic  preparations,  other  than  those  based  on  odoriferous  substance,  of  a  kind  used  for  the 
manufacture of beverages; flavoured or coloured sugar syrups; preparations containing no less than 1.5% milkfat; 
5% sucrose or isoglucose, 5% glucose or starch) 

Ex3302 
10 
corresponding  to 
3302 10 29 

Preparations based on odoriferous substances of a kind used as raw materials in the drinks industries containing all 
flavouring agents characterising a beverage with an actual alcoholic strength by volume not exceeding 0.5% (excl. 
preparations containing no less than 1.5% milkfat, 5% sucrose or isoglucose, 5 glucose or starch) 

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ANNEX VII 

TEMPORARY WITHDRAWAL OF PREFERENCES 

Article 1 

Principles concerning the withdrawal of preferences 

1. 

The preferential arrangements provided for under Article 41 of this Decision may be 
withdrawn temporarily, in respect of all or of certain products originating in an OCT, 
in cases of: 

(a) 

fraud; 

(b) 

irregularities or systematic failure to comply with or to ensure compliance with 
the rules concerning the origin of the products and with the procedures related 
thereto; 

(c)  or failure to provide the administrative cooperation referred to in paragraph 2 
and Title V of Annex VI as required for the implementation and policing of the 
arrangements referred to in Articles 41 to 48 of this Decision. 

2. 

The administrative cooperation referred to in paragraph 1 requires, inter alia, that an 
OCT:  

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

communicates  to  the  Commission  and  updates  the  information  necessary  for 
the implementation of the rules of origin and the policing thereof; 

assist the Union by carrying out, at the request of the customs authorities of the 
Member  States,  subsequent  verification  of  the  origin  of  the  goods,  and 
communicate its results in time; 

carry  out  or  arrange  for  appropriate  inquiries  to  identify  and  prevent 
contravention of the rules of origin; 

assist  the  Union  by  allowing  the  Commission,  in  coordination  and  close 
cooperation  with  the  competent  authorities  of  the  Member  States,  to  conduct 
Union inquiries on its territory, in order to verify the authenticity of documents 
or  the  accuracy  of  information  relevant  for  granting  the  benefit  of  the 
arrangements referred to in Article 41 of this Decision; 

comply  with  or  ensure  compliance  with  the  rules  of  origin  in  respect  of 
cumulation, within the meaning of Articles 7 to 10 of Annex VI; 

assist the Union in the verification of conduct where there is the presumption 
of origin-related fraud. The existence of fraud may be presumed where imports 
of  products  under  the  preferential  arrangements  provided  for  in  this  Decision 
massively exceed the usual levels of the beneficiary OCT's exports. 

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Article 2 

Withdrawal of preferential arrangements 

1. 

The Commission may temporarily withdraw the preferential arrangements provided 
for  in  this  Decision,  in  respect  of  all  or  of  certain  products  originating  in  a 
beneficiary  country,  where  it  considers  that  there  is  sufficient  evidence  that  a 
temporary withdrawal would be justified for the reasons referred to in paragraphs 1 
and 2 of Article 1 of this Annex, provided that it has first:  

(a) 

(b) 

consulted the Committee referred to in Article 10 of Annex VIII in accordance 
with the procedure referred to in Article 3 paragraph 2; 

called  on  the  Member  States  to  take  such  precautionary  measures  as  are 
necessary,  in  order  to  safeguard  the  Union’s  financial  interests  and/or  secure 
compliance by the beneficiary country with its obligations; and 

(c)  published  a  notice  in  the  Official  Journal  of  the  European  Union  stating  that 
there are grounds for reasonable doubt about the application of the preferential 
arrangements  and/or  compliance  by 
its 
obligations,  which  may  call  into  question  its  right  to  continue  to  enjoy  the 
benefits granted by this Decision. 

the  beneficiary  country  with 

The  Commission  shall  inform  the  OCT(s)  concerned  of  any  decision  taken  in 
accordance with this paragraph, before it becomes effective. The Commission shall 
also notify the Committee referred to in Article 10 of Annex VIII. 

The period of temporary withdrawal shall not exceed six months. On conclusion of 
the period, the Commission shall decide either to terminate the temporary withdrawal 
after informing the Committee referred to in Article 10 of Annex VIII or to extend 
the period of temporary withdrawal in accordance with the procedure referred to in 
paragraph 1 of this Article. 

Member  States  shall  communicate  to  the  European  Commission  all  relevant 
information that may justify the withdrawal of preferences or its extension. 

Article 3 

Committee procedure 

For the purpose of the implementation of Article 2, the Commission shall be assisted 
by the Committee referred to in Article 10 of Annex VIII. 

When reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 
shall apply. 

2. 

3. 

1. 

2. 

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ANNEX VIII 

SAFEGUARD AND SURVEILLANCE PROCEDURES 

Article 1 

Definitions relative to surveillance and safeguard measures 

For the purpose of the Articles 2 to 10 of this  Annex relating to surveillance and safeguard 
measures: 

(a) 

(b) 

(c) 

1. 

2. 

3. 

1. 

‘like  product’  means  a  product  which  is  identical,  i.e.  alike  in  all  respects,  to  the 
product  under  consideration,  or,  in  the  absence  of  such  a  product,  another  product 
which, although not alike in all respects, has characteristics closely resembling those 
of the product under consideration; 

‘interested  parties’  means  those  parties  involved  in  the  production,  distribution 
and/or sale of the imports mentioned in paragraph 1 and of like or directly competing 
products; 

‘serious  difficulties’  shall  exist  where  Union  producers  suffer  deterioration  in  their 
economic and/or financial situation. 

Article 2 

Principles of safeguard measures 

Where a product originating in an OCT referred to in Article 41 of this Decision is 
imported  in  volumes  and/or  at  prices  which  cause,  or  threaten  to  cause,  serious 
difficulties to Union producers of like or directly competing products, the necessary 
safeguard measures may be taken in accordance with the paragraphs. 

For  the  purpose  of  implementing  paragraph  1,  priority  shall  be  given  to  such 
measures as would least disturb the functioning of the Association. 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. 

When safeguard measures are taken or modified, particular attention shall be paid to 
the interests of the OCTs involved. 

Article 3 

Initiation of proceedings 

The  Commission  shall  investigate  whether  safeguard  measures  should  be  taken  if 
there is sufficient prima facie evidence that the conditions of Article 2 of this Annex 
are met. 

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2. 

3. 

4. 

5. 

1. 

2. 

3. 

4. 

5. 

An  investigation  shall  be  initiated  upon  request  by  a  Member  State,  by  any  legal 
person  or  any  association  not  having  legal  personality,  acting  on  behalf  of  Union 
producers, or on the Commission’s own initiative if it is apparent to the Commission 
that  there  is  sufficient  prima  facie  evidence,  as  determined  on  the  basis  of  factors 
referred to in Article 2 of this Annex, to justify such initiation. The request to initiate 
an investigation shall contain evidence that the conditions for imposing the safeguard 
measure set out in Article 2 of this Annex are met. The request shall be submitted to 
the Commission. The Commission shall, as far as possible, examine the accuracy and 
adequacy  of  the  evidence  provided  in  the  request  to  determine  whether  there  is 
sufficient prima facie evidence to justify the initiation of an investigation. 

Where  it  is  apparent  that  there  is  sufficient  prima  facie  evidence  to  justify  the 
initiation  of  a  proceeding  the  Commission  shall  publish  a  notice  in  the  Official 
Journal  of  the  European  Union.  Initiation  shall  take  place  within  one  month  of  the 
request  received  pursuant  to  paragraph  2.  Should  an  investigation  be  initiated,  the 
notice  shall  provide  all  necessary  details  about  the  procedure  and  deadlines, 
including the possibility of recourse to the Hearing Officer of the Directorate General 
for Trade of the European Commission. 

The rules and procedures concerning the conduct of the investigation are laid down 
in Article 4. 

If the OCT authorities so require and without prejudice to the deadlines referred to in 
this Article, a trilateral consultation referred to in Article 13 of this Decision shall be 
organised.  The  outcome  of  the  trilateral  consultation  shall  be  transmitted  to  the 
consultative committee. 

Article 4 

Investigations 

Following  the  initiation  of  the  proceeding,  the  Commission  shall  commence  an 
investigation. The period as set out in paragraph 3 shall start on the day the decision 
to  initiate  the  investigation  is  published  in  the  Official  Journal  of  the  European 
Union. 

The  Commission  may  request  Member  States 
information  and 
Member States shall take whatever steps are necessary in order to give effect to any 
such request. If that information is of general interest and is not confidential within 
the  meaning  of  Article  11  of  this  Annex,  it  shall  be  added  to  the  non-confidential 
files as provided for in paragraph 8. 

to  supply 

The investigation shall be concluded within twelve months of its initiation. 

The  Commission  shall  seek  all  information  it  considers  necessary  to  make  a 
determination with regard  to the conditions  set out in  Article  2  of  this Annex,  and, 
where it considers it appropriate, endeavour to verify that information. 

In the investigation the Commission shall evaluate all relevant factors of an objective 
and  quantifiable  nature  having  a  bearing  on  the  situation  of  the  Union  industry,  in 
particular,  the  market  share,  changes  in  the  level  of  sales,  production,  productivity, 

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6. 

7. 

8. 

9. 

capacity  utilisation,  profits  and  losses,  and  employment.  This  list  is  not  exhaustive 
and other relevant factors may also be taken into consideration by the Commission. 

Interested parties who have come forward within the period laid down in the notice 
published  in  the  Official  Journal  of  the  European  Union  and  representatives  of  the 
OCT concerned may, upon written request, inspect all information made available to 
the Commission in connection with the investigation other than internal  documents 
prepared by the Union authorities or those of the Member States, provided that that 
information  is  relevant  to  the  presentation  of  their  case  and  not  confidential  within 
the meaning of Article 11 and that it is used by the Commission in the investigation. 
Interested  parties  who  have  come  forward  may  communicate  their  views  on  the 
information to the Commission. Those views shall be taken into consideration where 
they are backed by sufficient prima facie evidence. 

The  Commission  shall  ensure  that  all  data  and  statistics  which  are  used  for  the 
investigation are available, comprehensible, transparent and verifiable. 

The Commission shall hear the interested parties, in particular where they have made 
a  written  application  within  the  period  laid  down  in  the  notice  published  in  the 
Official  Journal  of the  European  Union, showing that they are actually likely to  be 
affected  by  the  outcome  of  the  investigation  and  that  there  are  special  reasons  for 
them to be heard orally. The Commission shall hear such parties on further occasions 
if there are special reasons for them to be heard again. 

When information is not supplied within the time limits set by the Commission, or 
the investigation is significantly impeded, findings may be made on the basis of the 
facts available. Where the Commission finds that any interested party or third party 
has  supplied  it  with  false  or  misleading  information,  it  shall  disregard  that 
information and may make use of the facts available. 

10. 

The  Commission  shall  notify  the  OCT  concerned  in  writing  of  the  initiation  of  an 
investigation.  

Article 5 

Prior surveillance measures 

1. 

2. 

3. 

4. 

The products originating in the OCTs referred to in Article 41 of this Decision may 
be subject to special surveillance. 

Prior surveillance measures shall be adopted by the Commission in accordance with 
the advisory procedure referred to in Article 6 of this Annex. 

Prior surveillance measures shall have a limited period of validity. Unless otherwise 
provided,  they  shall  cease  to  be  valid  at  the  end  of  the  second  six-month  period 
following the first six months after the measures were introduced. 

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 VI and VII.  

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Article 6 

Imposition of provisional safeguard measures 

On duly justified grounds of urgency relating to deterioration of the economic and/or 
financial situation of Union producers which would be difficult to repair, provisional 
measures  may  be  imposed.  Provisional  measures  shall  be  shall  not  apply  for  more 
than  200  days.  Provisional  measures  shall  be  adopted  by  the  Commission  in 
accordance  with  the  advisory  procedure  referred  to  in  Article  10  of  this  Annex.  In 
cases  of  imperative  grounds  of  urgency,  the  Commission  shall  adopt  immediately 
applicable provisional safeguard measures in accordance with the procedure referred 
to in Article 10 of this Annex. 

Should  the  provisional  safeguard  measures  be  repealed  because  the  investigation 
shows that the conditions set out in Article 2 of this Annex are not met, any customs 
duty  collected  as  a  result  of  those  provisional  measures  shall  be  refunded 
automatically. 

Article 7 

Imposition of definitive measures 

Where the facts as finally established show that the conditions set out in Article 2 of 
this  Annex  are  not  met,  the  Commission  shall  adopt  a  decision  terminating  the 
investigation and proceeding in accordance with the examination procedure referred 
to in Article 4 of this Annex. The Commission shall make public, with due regard to 
the  protection  of  confidential  information  within  the  meaning  of  Article  9  of  this 
Annex,  a  report  setting  forth  its  findings  and  reasoned  conclusions  reached  on  all 
pertinent issues of fact and law. 

Where the facts as finally established show that the conditions set out in Article 2 of 
this  Annex  are  met,  the  Commission  shall  adopt  a  decision  imposing  definitive 
safeguard  measures  in  accordance  with  the  examination  procedure  referred  to  in 
Article  4.  The  Commission  shall  make  public, with  due  regard  to  the  protection  of 
confidential  information  within  the  meaning  of  Article  9  of  this  Annex,  a  report 
containing  a  summary  of  the  material  facts  and  considerations  relevant  to  the 
determination, and notify the OCT authorities immediately of the decision to take the 
necessary safeguard measures 

Article 8 

Duration and review of safeguard measures 

A  safeguard  measure  shall  remain  in  force  only  for  such  period  of  time  as  may  be 
necessary to prevent or remedy the serious injury and to facilitate adjustment. That 
period shall not exceed three years, unless it is extended under paragraph 2. 

The initial period of duration of a safeguard measure may exceptionally be extended 
by up to two years provided it is determined that the safeguard measure continues to 
be necessary to prevent or remedy serious difficulties. 

1. 

2. 

1. 

2. 

1. 

2. 

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3. 

4. 

1. 

2. 

3. 

4. 

1. 

2. 

Any extension pursuant to paragraph 3 shall be preceded by an investigation upon a 
request by a Member State, by any legal person or any association not having legal 
personality,  acting  on  behalf  of  the  Union  industry,  or  on  the  Commission's  own 
initiative if there is sufficient prima facie evidence that safeguard measure continues 
to be necessary. 

The initiation of an investigation shall be published in accordance with Article 4 and 
the  safeguard  measure  shall  remain  in  force,  pending  the  outcome  of  the 
investigation. The investigation and any decision regarding an extension pursuant to 
paragraph 2 shall be done in accordance with the provisions of Article 6 and 7.  

Article 9 

Confidentiality 

Information received pursuant to this Decision shall be used only for the purpose for 
which  it  was  requested.  Neither  information  of  a  confidential  nature  nor  any 
information provided on a confidential basis received pursuant to this Decision shall 
be disclosed without specific permission from the supplier of such information. 

Each  request  for  confidentiality  shall  state  the  reasons  why  the  information  is 
confidential.  However,  if  the  supplier  of  the  information  wishes  neither  to  make  it 
public nor to authorise its disclosure in general terms or in the form of a summary, 
and  if  it  appears  that  the  request  for  confidentiality  is  unjustified,  the  information 
concerned may be disregarded. 

Information  shall  in  any  case  be  considered  to  be  confidential  if  its  disclosure  is 
likely to have a significantly adverse effect upon the supplier or the source of such 
information. 

Paragraphs  1  to  4  shall  not  preclude  reference  by  the  Union  authorities  to  general 
information  and  in  particular  to  reasons  on  which  decisions  taken  pursuant  to  this 
Decision are based. Those authorities shall, however, take into account the legitimate 
interest of natural and legal persons concerned that their business secrets should not 
be divulged. 

Article 10 

Committee procedure 

The  Commission  shall  be  assisted  by  the  Committee  established  by  Article  4(1)  of 
Council Regulation (EC) No 260/2009 of 26 February 2009 on the common rules for 
imports99.  That  Committee  shall  be  a  Committee  within  the  meaning  of  Regulation 
(EU) No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  4  of  Regulation  (EU) 
No 182/2011 shall apply. 

99 

OJ L 84, 31.3.2009, p. 1. 

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3. 

4. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU) 
No 182/2011 shall apply. 

Where  reference  is  made  to  this  paragraph,  Article  8  of  Regulation  (EU) 
No 182/2011, in conjunction with Article 4 thereof, shall apply. 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative 

1.4.  Objective(s) 

1.5.  Grounds for the proposal/initiative 

1.6.  Duration and financial impact 

1.7.  Management method(s) envisaged 

2. 

MANAGEMENT MEASURES 

2.1.  Monitoring and reporting rules 

2.2.  Management and control system 

2.3.  Measures to prevent fraud and irregularities 

2.4.  Estimate of the costs and benefits of the controls 

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1. 

Title of the proposal/initiative 

Council  Decision  on  the  Association  of  the  Overseas  Countries  and  Territories  with  the 
European Union (Overseas Association Decision) 

1.2. 

Policy area(s) concerned in the ABM/ABB structure100 

Title 21 : Development and relations with African, Caribbean and Pacific (ACP) States 

21 04: Environment and sustainable management of natural resources, including energy 

21 05: Human and social development 

21 06: Geographical cooperation with African, Caribbean and Pacific (ACP) States 

21 07: Development cooperation actions and ad-hoc programmes 

1.3. 

Nature of the proposal/initiative 

(cid:133) The proposal/initiative relates to a new action 

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action101  

⌧ The proposal/initiative relates to the extension of an existing action 

(cid:133) The proposal/initiative relates to an action redirected towards a new action 

1.4. 

Objectives 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative 

To  promote  the  economic  and  social  development  of  the  OCTs  and  to  establish  close 
economic relations between them and the European Union as a whole. 

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. 

To  enhance  the  OCTs'  competitiveness,  to  strengthen  the  OCTs'  resilience,  to  reduce  their 
vulnerability and to promote cooperation between them and other partners. 

100 
101 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

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1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned initiative 

The objectives shall be to; 

a) help promote EU's values and standards in the wider world; 

b) establish a more reciprocal relationship between EU and OCTs based on mutual interests; 

c) enhance OCTs' competitiveness; 

d) strengthen OCTs' resilience and reduce their economic and environmental vulnerabilities; 

e) promote cooperation of OCTs with third partners; 

f) integrate EU policy agenda priorities; 

g)  take  into  account  changes  in  global  trade  patterns  and  EU  trade  agreements  with  third 
partners; 

Through the intention to; 

a) promote the economic and social development of the OCTs by establishing close economic 
relations between them and the European Union as a whole; 

b) support the OCTs' capacities to define and implement policies, strategies, action plans and 
measures  in  theareas  chosen  for  cooperation  between  the  parties.  Establish  a  coordinated 
cooperation in the field of environment, climate change and disaster risk reduction, in support 
of the OCTs' sustainable development; 

c)  promote  sustainable  resource  use  and  resource  efficiency,  and  to  encourage  decoupling 
economic growth from environmental degradation; 

d) support the process of diversification of OCT economies; 

e) contribute to the OCTs' sustainable development and to promote excellence and industrial 
competitiveness within OCTs, through cooperation between the European Union and OCTs in 
the  field  of  science,  technology,  including  information  and  communication  technologies, 
research and innovation; 

f)  support  OCTs'  efforts  to  converge  their  local  legislation  with  European  Union  legislation, 
where relevant; 

g)  strengthen  the  ties  between  young  people  living  in  the  OCTs  and  the  European  Union; 
promote  the  provision  of  high  quality  education  and  decent  work  in  the  OCTs  and  regions 
where they are located; and contribute to the strengthening of OCTs' capacity for surveillance, 
detection and response to outbreaks of communicable diseases; 

h) take into account and contribute to the preservation of the cultural diversity and identity of 
OCTs; 

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i)  stimulate  the  OCTs'  effective  integration  in  the  regional  and  world  economies  and  the 
development of trade in goods and services; 

j)  mitigate  the  effects  of  the  OCTs'  remoteness,  which  constitutes  a  barrier  to  the  OCTs 
competitiveness; 

k) support OCT capacities to formulate and implement policies necessary for the development 
of their trade in goods and services; 

l)  support  OCTs  in  creating  a  favourable  investment  climate  to  support  their  social  and 
economic development; 

m)  promote  the  stability,  integrity  and  transparency  of  the  financial  system,  and  good 
governance in the tax area; 

n)  support  the  OCTs  in  the  development  of  innovative  and  effective  means  of  police  and 
judicial cooperation and in their fight against the trafficking of human  beings,  terrorism and 
other forms of organised crime; 

o) support the OCTs' export and trading capacities; 

p) provide possibilities for targeted cooperation and dialogue on trade and trade related areas. 

ABM/ABB activity(ies) concerned 

Title 21 : Development and relations with African, Caribbean and Pacific (ACP) States 

21 04: Environment and sustainable management of natural resources, including energy 

21 05: Human and social development 

21 06: Geographical cooperation with African, Caribbean and Pacific (ACP) States 

21 07: Development cooperation actions and ad-hoc programmes (see point 1.2). 

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1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The expected impact are: 

a) closer economic relations between the OCTs and the EU; 

b)  increased  OCTs'  capacity  to  define  and  implement  policies,  strategies,  action  plans  and 
measures in the areas chosen for cooperation between the parties; 

c) better resource use and resource efficiency; 

d) further diversification of OCT economies; 

e)  increased  cooperation  in  the  field  of  science,  technology,  including  information  and 
communication technologies, research and innovation, as well as environment, climate change 
and disaster risk reduction; 

f) increased convergence between OCTs and EU legislation; 

g)  increased  exchanges  between  EU-OCT  young  people;  improved  quality  of  education  and 
better  work  conditions  in  the  OCTs;  and  stronger  capacity  to  deal  with  outbreaks  of 
communicable diseases; 

h) increased awareness of the cultural diversity and identity of OCTs; 

i) further integration of the OCTs in the regional and world economies; 

j) Improved accessibility of OCTs; 

k)  better  capacities  to  formulate  and  implement  policies  necessary  for  the  development  of 
trade; 

l) favourable investment climate in the OCTs; 

m) more stable, trustworthy and transparent financial systems in the OCTs; 

n)  innovative  and  effective  means  of  police  and  judicial  cooperation  namely  in  the  fight 
against the trafficking of human beings, terrorism and other forms of organised crime; 

o) increased export and trading capacities; 

p) increased dialogue and targeted cooperation on trade and trade related areas; 

1.4.4. 

Indicators of results and impact 

Specify the indicators for monitoring implementation of the proposal/initiative. 

The  OAD  is  a  political  decision  that  provides  the  legislative  framework  for  cooperation 
between the EU and the OCTs as stipulated in the Treaty. 

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The  OAD  will  be  further  complemented  by  a Commission  Implementing  Regulation  and  by 
programming documents where the strategies for cooperation (focal sector(s)) between the EU 
and the OCTs and respective financial allocations are jointly agreed upon. 

The  programming  documents  and  the  subsequent  Commission  Financing  Decisions  will 
include the respective indicators to be used in the monitoring of the strategy. The indicators 
will range from input, output, outcome and impact depending on the specificities of the OCT 
and  the  sector  of  cooperation.  In  certain  cases  where  the  implementing  modality  for  the  EU 
support is budget support, it is not excluded that annual targets are defined and the EU support 
is disbursed against the levels of performance against the targets. 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term 

The treaty specifies the need for detailed provisions to be laid down for the association of the 
OCTs  with  the  EU.  The  current  OAD  expires  31  December  2013  and  there  is  a  need  for  a 
legislative  framework to ensure the appropriate support and assistance to be  available to the 
OCTs. 

1.5.2.  Added value of EU involvement 

In  view  of  increasingly  complex  challenges,  none  of  the  EU's  internal  priorities  –  security, 
smart,  inclusive  and  sustainable  growth  and  job  creation,  climate  change,  access  to  energy, 
resource  efficiency,  including  the  protection  of  biodiversity,  safe  management  of  water  or 
waste, health and pandemics, education - will be achieved in isolation from the wider world. 

With  27  Member  States  acting  within  common  policies and strategies, the EU alone has the 
critical mass to respond to global challenges, such as climate change. The action of individual 
Member States can be limited and fragmented. This critical mass also puts the EU in a better 
position to conduct policy dialogue with partner OCT governments. 

Through  its  external  action,  the  EU  is  committed  to  promoting  its  standards,  and  sharing  its 
expertise. The OCTs have the potential for becoming strategic outposts of the EU throughout 
the world. Upgrading the OCTs' legislation and standards to EU levels could increase both the 
influence of the OCTs and subsequently the EU in their respective regions.  

1.5.3.  Lessons learned from similar experiences in the past  

Through the launching of a public consultation a number of general issues was defined , such 
as  the  change  of  focus  from  poverty  reduction  in  development  cooperation,  to  a  more 
reciprocal relationship. This shift was supported by the OCTs and the Member states in their 
Joint  Position  Paper,  which,  while  recognising  that  the  current  association  framework  has 
made  a  significant  contribution  to  the  economic  and  social  development  of  the  OCTs,  there 
was a need for differentiation of the EU approach towards OCTs from the one towards ACP 
States and other developing countries. Instead, a reciprocal approach is proposed to take into 
account  the  specificities  of  OCTs,  their  diversity  and  vulnerability  and  based  on  mutual 
interests  and  shared  values.  The  paradigm  shift  would  also  have  to  take  into  account  the 
political priorities that emerged in OCTs and the EU. 

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An  external  evaluation  study  conducted  in  2011  found  that  in  the  context  of  the  OCT/EU 
financial cooperation in the period 1999-2009, the response time of assistance to OCTs funded 
from the  EDF  resources, reserved to respond to natural disasters and unforeseen events, had 
been too long. 

The necessity to foster cooperation between OCTs and their neighbouring countries has also 
been  identified  as  a  means  to  reach  efficiency.  In  this  respect,  the  study  highlights  that 
cooperation between the OCTs and their neighbours (third countries, ACP States or outermost 
regions  of  the  EU)  is  insufficiently  facilitated  by  the  EU,  notably  because  the  partners  must 
mobilize different EU funds. 

Access  to  EU  programmes  and  horizontal  budget  lines  has,  despite  the  full  eligibility  of  the 
OCTs  to  these  programmes,  proven  difficult  to  materialise  due  primarily  to  lack  of 
administrative  capacity  in  most  OCTs  either  to  participate  or  to  submit  winner  projects.  As 
regards  the  trade  regime,  a  number  of  issues  were  identified  in  external  studies  and  during 
stakeholder consultations and/or were  flagged  by the European Commission. In their overall 
assessments  of  the  OCT  trade  regime,  OCTs,  their  Member  States  as  well  as  external 
evaluators all agreed that the trade and economic component of the OCT/EU association has 
contributed to the sustainable social and economic development of OCTs by providing OCTs 
a secure access to the large EU market and numerous export opportunities, and by supporting 
local economies. Despite these positive results, external evaluators  have pointed out that the 
wide market access offered to OCTs has not always resulted in actual trade opportunities, as 
OCTs faced several challenges in effectively exploiting this market access. 

Regarding  OCT/EU  trade  and  economic  cooperation,  external  studies  recommend  that  the 
revised  OCT/EU  association  would:  review  the  respective  arrangements  concerning  trade  in 
services and rules of origin; foresee enough support and capacity building for the development 
of OCT trade related policies as well as to assist OCTs in regulatory reform. 

1.5.4.  Coherence and possible synergy with other relevant instruments 

The 'Europe 2020' provides the benchmark against which the coherence of EU policies and the 
promotion  of  EU  values,  standards  and  interest  need  to  be  checked.  Coherence  with  the 
Europe 2020 strategy should be sought as far as its smart growth and sustainable priorities are 
concerned,  promoting  support  to  research,  innovation  as  well  as  to  information  and 
communication  technologies  (ICT)  and  sustainable  growth  capacities  as  catalysts  for  socio-
economic development. 

The  2014-2020  OAD  will  play  an  important  role  in  that  respect.  Indeed,  the  idea  of 
establishing  ‘centres  of  experience  and  expertise’  could  relate  to  the  implementation  and 
promotion  of  high  standards,  including  international  standards,  e.g.  in  the  fields  of 
environment  and  food  safety  and  consumer  health.  The  OCTs  are  all  characterised  by  rich 
biodiversity.  In  that  context  the  sustainable  use  and  protection  of  this  biodiversity  would 
benefit  from  better  scientific  documentation  and  access  to  research  results.  Likewise,  the 
implementation  of  international  standards  within  the  area  of  food  safety,  animal  and  plant 
health could facilitate trade between OCTs and their trading partners, including EU Member 
States. The EU's commitment to environmental standards as well as its role as a global player 
in the fight against climate change could be of great value to both the EU and the OCTs. The 
European Commission believes that biodiversity and other natural assets of the OCTs could be 

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the  object  of  a  strengthened  cooperation  in  the  field  of  research  and  conservation.  A 
partnership in the area of environment could be of mutual interest to both parties. 

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1.6. 

Duration and financial impact 

⌧ Proposal/initiative of limited duration 

–  ⌧ Proposal/initiative in effect from 01/01/2014 to 31/12/2020 

–  ⌧ Financial impact from 01/01/2014 to 31/12/2020 

–  (cid:133) Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Management mode(s) envisaged102  

⌧ Centralised direct management by the Commission 

⌧ Centralised indirect management with the delegation of implementation tasks to: 

–  ⌧ executive agencies 

–  ⌧ bodies set up by the Communities103 

–  ⌧ national public-sector bodies/bodies with public-service mission 

–  (cid:133)  persons entrusted with the implementation of specific actions pursuant to Title V of the 
Treaty  on  European  Union  and  identified  in  the  relevant  basic  act  within  the  meaning  of 
Article 49 of the Financial Regulation 

⌧ Shared management with the Member States 

⌧Decentralised management with third countries 

(cid:133) Joint management with international organisations (to be specified) 

If more than one management mode is indicated, please provide details in the "Comments" section. 

Comments  

As  the  OAD  is  a  Framework  for  the  cooperation  between  the  OCTs  and  the  EU  the  implementing 
modalities  to  be  foreseen  in  the  financing  decisions  will  be  determined  on  a  case  by  case  basis 
depending on the strategy agreed and on the specificities of the OCT concerned. 

102 

103 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the  BudgWeb  site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 
As referred to in Article 185 of the Financial Regulation. 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

The Overseas Association Decision sets the legislative framework for the association of the OCTs with 
the EU. It is by nature a text defining the EU external relations with these countries and territories and 
as such, its implementation cannot be assessed through core indicators. Nevertheless, the strategies of 
cooperation agreed between the EU and the OCTs to pursue the sustainable development of the OCTs 
will be subjected to evaluation by the means of input and output indicators defined in the framework of 
each program. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified 

Risk environment 

The operational environment of aid under this Decision is characterised by the following risks 
of  not  achieving  the  objectives,  suboptimal  financial  management  and/or  of  not  complying 
with the applicable rules (legality and regularity errors): 

– 

– 

– 

– 

– 

– 

economic/political instability and/or natural disaster may lead to difficulties and delays 
in the design and implementation of interventions, particularly in fragile states; 

a  lack  of  institutional  and  administrative  capacity  in  partner  countries  may  lead  to 
difficulties and delays in the design and implementation of interventions;  

geographically  dispersed  projects  and  programmes  (covering  approximately  many 
states/territories/regions)  may  pose  logistical/resource  challenges  to  monitoring  - 
particularly any 'on-the-spot' follow-up of activities; 

diversity of potential partners / beneficiaries with their diverse internal control structures 
and capacities can fragment and therefore reduce the effectiveness and efficiency of the 
Commission's available resources to support and monitor implementation; 

poor quality and quantity of available data on the outcomes and impact of external aid / 
national  development  plan  implementation  in  partner  countries  may  hinder  the 
Commission's ability to report on and be accountable for results; 

a lack of administrative credits may lead to insufficient resources to properly manage the 
Decision. 

Expected level of risk of non-compliance with applicable rules 

The  compliance  objective  for  the  instrument  is  to  maintain  the  historic  level  of  risk  of  non-
compliance  (error  rate)  for  DEVCO  portfolio  which  is  a  residual  'net'  level  of  error  (on  a 
multi-annual  basis  after  all  planned  controls  and  corrections  have  been  executed  on  closed 
contracts) of less than 2%. This has traditionally implied an estimated error range of 2-5% in 

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terms  of  an  annual  randomised  sample  of  transactions  undertaken  by  the  European  Court  of 
Auditors for the purposes of the annual Statement of Assurance (DAS). DEVCO considers this 
to be the lowest risk of non compliance achievable in relation to its high risk environment and 
taking into account the administrative burden and necessary cost effectiveness of compliance 
controls. 

2.2.2.  Control method(s) envisaged  

Directorate  General  for  Development  and  Cooperation  -  EuropeAid  Internal  Control 
architecture 

Directorate  General  for  Development  and  Cooperation  –  EuropeAid's  internal  control  / 
management  process  is  designed  to  provide  reasonable  assurance  regarding  the  achievement 
of objectives in the effectiveness and efficiency of its operations, the reliability of its financial 
reporting and compliance with the relevant legislative and procedural framework. 

Effectiveness and efficiency 

To ensure the effectiveness and efficiency of its operations (and to mitigate the high level of 
risk in its external aid environment), in addition to all the elements of the Commission wide 
Strategic  Policy  and  Planning  process,  internal  audit  environment  and  other  requirements  of 
the Commission's Internal Control Standards, the Commission will continue to have a tailored 
aid management framework in operation under all its instruments which will include: 

– 

– 

– 

– 

– 

– 

– 

– 

– 

A devolved management of the majority of external aid by EU Delegations in the field; 

Clear  and  formalised  lines  of  financial  accountability  (from  the  Delegated  Authorising 
officer  (Director  General))  by  means  of  a  subdelegation  from  the  Subdelegated 
Authorising Officer (Director) at HQ to the Head of the EU Delegation; 

Regular  reporting  from  EU  Delegations  to  HQ  (External  Assistance  Management 
Reports) including an annual Statement of Assurance by the Head of the EU Delegation; 

Provision of a substantial programme of training for staff both at HQ and in the relevant 
EU Delegations; 

Significant HQ/Delegation support and guidance (including via internet); 

Regular 'verification' visits to 'devolved' delegations every 3 to 6 years; 

A project and programme cycle management methodology including; 

Quality  support  tools  for  the  design  of  the  intervention,  its  delivery  method,  financing 
mechanism,  management  system,  assessment  and  selection  of  any  implementing 
partners, etc; 

Programme  and  project  management,  monitoring  and  reporting  tools  for  effective 
implementation including regular external on-the-spot monitoring of projects; 

– 

Significant evaluation and audit components; 

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Financial Reporting and Accounting 

The  Commission  will  continue  to  pursue  the  highest  standards  of  accounting  and  financial 
reporting  using  the  Commission's  accruals  based  accounting  system  (ABAC)  as  well  as 
external aid specific tools such as the Common Relex Information System (CRIS). 

In relation to compliance with the relevant legislative and procedural framework, compliance 
control methods are set out in section 2.2 (measures to prevent fraud and irregularities). 

2.3.  Measures to prevent fraud and irregularities 

Specify existing or envisaged prevention and protection measures. 

– 

– 

– 

– 

– 

– 

– 

– 

Given  the  high  risk  environment  in  which  EuropeAid  operates,  its  systems  need  to 
anticipate  a  significant  occurrence  of  potential  compliance  errors  (irregularities)  in 
transactions and build in a high level of prevention, detection and correction controls as 
early  as  possible  in  the  payment  process.  This  means  in  practice  that  EuropeAid's 
compliance  controls  will  place  most  reliance  on  significant  ex-ante  checks  on  a  multi-
annual  basis  by  both  external  auditors  and  Commission  staff  in  the  field  before  final 
project  payments  (while  still  executing  some  ex-post  audits  and  checks),  going  well 
beyond  the  financial  safeguards  required  by  the  Financial  Regulation.  EuropeAid's 
compliance framework is made up inter alia of the following significant components: 

Preventative measures; 

Compulsory core training covering fraud issues for aid management staff and auditors; 

Provision of guidance (including via internet) including the Practical Guide to Contracts, 
the  EuropeAid  Companion  and  the  Financial  Management  Toolkit  (for  implementing 
partners); 

Ex-ante assessment to ensure that appropriate anti-fraud measures to prevent and detect 
fraud  in  the  management  of  EU  funds  are  in  place  in  the  authorities  managing  the 
relevant funds under joint and decentralised management); 

Ex-ante screening of the anti-fraud mechanisms available in the partner country as part 
of the assessment of the eligibility criterion of public finance management for receiving 
budget  support  (i.e.  active  commitment  to  fight  fraud  and  corruption,  adequate 
inspection  authorities,  sufficient  judicial  capacity  and  efficient  response  and  sanction 
mechanisms); 

The Commission signed the International Aid Transparency Initiative (IATI) in Accra in 
2008, agreeing on a standard for aid transparency which ensures more timely, detailed 
and regular data on aid flows and documents; 

The Commission implements since 14 October 2011 the first phase of the IATI standard 
for  publishing  aid  information  transparency  before  the  next  High  Level  Forum  on  aid 
effectiveness  in  Busan  in  November  2011.  In  addition,  the  Commission  will  work  in 
cooperation with the EU Member States on a joint web-based IT application called TR-

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AID which transforms the EU aid data provided through the IATI and other sources into 
user-friendly aid information; 

Detective and corrective measures; 

External  audits  and  verifications  (both  mandatory  and  risk  based)  including  the 
European Court of Auditors; 

Retrospective checks (on a risk basis) and recoveries; 

Suspension  of  EU  funding  where  there  is  a  serious  fraud  case,  including  large  scale 
corruption, until the authorities have taken appropriate action with a view to correcting 
and preventing such fraud in the future; 

EuropeAid will further devise its anti-fraud strategy in line with the Commission's new 
anti-fraud strategy (CAFS) adopted on 24 June 2011 in order to ensure inter alia that; 

The Commission's internal anti-fraud related controls are fully aligned with the CAFS; 

The Commission's fraud risk management approach is geared to identify fraud risk areas 
and adequate responses; 

The  systems  used  for  spending  EU  funds  in  third  countries  enable  relevant  data  to  be 
retrieved  with  a  view  to  feeding  this  data  into  fraud  risk  management  (e.g.  double 
funding); 

– 

– 

– 

– 

– 

– 

– 

– 

–  Where necessary, networking groups and adequate IT tools dedicated to analysing fraud 

cases related to the external aid sector could be set up. 

2.4. 

Estimate of the costs and benefits of the controls 

For the EuropeAid portfolio as a whole, internal control / management costs total an estimated 
annual average of €658 million in commitments in the 2014-2020 budget planning. This figure 
includes  the  management  of  the  EDF  which  operates  in  an  integrated  way  within  the 
management  structure  of  EuropeAid.  These  'non  operational'  costs  represent  approximately 
6.4 % of the estimated annual average of € 10.2 billion planned for the overall (operational + 
administrative)  commitments  by  EuropeAid  on  its  expenditure  portfolio  financed  by  the 
General Budget of the EU and the European Development Fund for the period 2014-2020. 

These  management  costs  take  into  account  all  EuropeAid  staff  at  HQ  and  in  Delegations, 
infrastructure,  travel,  training,  monitoring,  evaluation  and  audit  contracts  (including  those 
launched by beneficiaries). 

EuropeAid plans to reduce the management / operational activities ratio over time under the 
improved and simplified arrangements of the new instruments, building on changes likely to 
come in under the revised Financial Regulation. The key benefits of these management costs 
are realised in terms of meeting policy objectives, efficient and effective use of resources, and 
the exercise of robust cost-effective preventative measures and other checks to ensure the legal 
and regular use of funds. 

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While  improvements  in  the  nature  and  targeting  of  management  activities  and  compliance 
checks  in  relation  to  the  portfolio  will  continue  to  be  pursued,  these  costs  are  globally 
necessary to effectively and efficiently achieve the objectives of the instruments at a minimal 
risk  of  non  compliance  (below  2%  residual  error).  They  are  significantly  less  than  risks 
involved in removing or scaling back internal controls in this high risk area. 

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3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Nota bene: 

The  Communication  from  the  Commission  to  the  European  Parliament  and  the  Council: 
"Preparation  of  the  multiannual  financial  framework  regarding  the  financing  of  EU 
cooperation  for  ACPs  and  OCTs  for  the  2014-2020  period  (11th  European  Development 
Fund)" also included the proposed financial allocation for the OCTs under the 11th EDF. 

For  that  purpose,  a  simplified  financial  statement:  "ASSESSMENT  OF  THE  IMPACT  OF 
THE  11TH  EDF  ON  HEADING  V"  was  prepared  (COM(2011)  837  final,  Brussels, 
7.12.2011). 

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