A COUNTRY AND TERRITORY JUSTIFIES THEM .
THE MEMBER STATE CONCERNED , OR , WHERE APPROPRIATE , THE COMPETENT AUTHORITY OF THE COUNTRY OR TERRITORY CONCERNED SHALL NOTIFY THE COMMUNITY OF ITS REQUEST FOR A DEROGATION TOGETHER WITH THE REASONS OF THE REQUEST IN ACCORDANCE WITH EXPLANATORY NOTE 10 .
2 . THE EXAMINATION OF REQUESTS SHALL IN PARTICULAR TAKE INTO ACCOUNT :
( A ) THE LEVEL OF DEVELOPMENT OR THE GEOGRAPHICAL SITUATION OF THE COUNTRY OR TERRITORY CONCERNED ;
( B ) CASES WHERE THE APPLICATION OF THE EXISTING RULES OF ORIGIN WOULD AFFECT SIGNIFICANTLY THE ABILITY OF AN EXISTING INDUSTRY IN A COUNTRY OR TERRITORY TO CONTINUE ITS EXPORTS TO THE COMMUNITY , WITH PARTICULAR REFERENCE TO CASES WHERE THIS COULD LEAD TO CESSATION OF ITS ACTIVITIES ;
( C ) 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 REALIZATION OF THE INVESTMENT PROGRAMME WOULD ENABLE THESE RULES TO BE SATISFIED BY STAGES .
3 . IN EVERY CASE AN EXAMINATION SHALL BE MADE TO ASCERTAIN WHETHER THE RULES RELATING TO CUMULATION OF ORIGIN DO NOT PROVIDE A SOLUTION TO THE PROBLEM .
IN ADDITION , WHEN A REQUEST FOR DEROGATION CONCERNS A LEAST-DEVELOPED COUNTRY OR TERRITORY , ITS EXAMINATION SHALL BE CARRIED OUT WITH A FAVOURABLE BIAS HAVING PARTICULAR REGARD TO :
( A ) THE ECONOMIC AND SOCIAL IMPACT OF THE DECISION TO BE TAKEN , ESPECIALLY IN RESPECT OF EMPLOYMENT ;
( B ) THE NEED TO APPLY THE DEROGATION FOR A PERIOD TAKING INTO ACCOUNT THE PARTICULAR SITUATION OF THE LEAST-DEVELOPED COUNTRY OR TERRITORY CONCERNED AND ITS DIFFICULTIES .
4 . THE EXAMINATION OF REQUESTS SHALL IN PARTICULAR TAKE INTO ACCOUNT ON A CASE-BY-CASE BASIS THE POSSIBILITY OF CONFERRING ORIGINATING STATUS ON PRODUCTS WHICH INCLUDE IN THEIR COMPOSITION PRODUCTS ORIGINATING IN NEIGHBOURING DEVELOPING COUNTRIES PROVIDED THAT SATISFACTORY ADMINISTRATIVE COOPERATION CAN BE ESTABLISHED .
5 . THE COUNCIL , ON THE BASIS OF A REPORT FROM THE COMMITTEE ON ORIGIN , SHALL EXAMINE THESE REQUESTS AS SOON AS POSSIBLE AND TAKE THE NECESSARY STEPS TO ENSURE THAT A DECISION IS REACHED AS QUICKLY AS POSSIBLE AND IN ANY CASE NO LATER THAN THREE MONTHS AFTER THE REQUEST HAS BEEN RECEIVED .
6 . ( A ) THE DEROGATIONS SHALL BE VALID FOR A PERIOD WHICH SHALL GENERALLY BE OF TWO YEARS . THIS PERIOD MAY BE EXTENDED TO A MAXIMUM OF THREE YEARS TO TAKE ACCOUNT OF THE PARTICULAR SITUATION OF THE REQUESTING COUNTRY OR TERRITORY .
( B ) THE DEROGATION DECISION MAY PROVIDE FOR RENEWALS FOR PERIODS OF ONE YEAR PROVIDED THAT THE COUNTRIES OR TERRITORIES CONCERNED SUBMIT , THREE MONTHS BEFORE THE END OF EACH PERIOD , PROOF THAT THEY ARE STILL UNABLE TO MEET THE CONDITIONS OF THIS ANNEX WHICH HAVE BEEN DEROGATED FROM .
ARTICLE 29
THE ANNEXES TO THIS ANNEX SHALL FORM AN INTEGRAL PART THEREOF .
(