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**Decision No 2/2000 of the EC-Mexico Joint Council of 23 March 2000 - Joint Declarations** 
  
*Official Journal L 157 , 30/06/2000 P. 0010 - 0029  
 Official Journal L 245 29/09/2000 P. 0001 - 1168*

  

Decision No 2/2000 of the EC-Mexico Joint Council

of 23 March 2000

(2000/415/EC)

THE JOINT COUNCIL,

Having regard to the Interim Agreement on trade and trade-related matters between the European Community, of the one part, and the United Mexican States, of the other part, signed in Brussels on 8 December 1997 (hereinafter the "Interim Agreement"), and in particular Articles 3, 4, 5, 6 and 12, in conjunction with Article 9 thereof,

Mindful of their rights and obligations under the Marrakesh Agreement establishing the World Trade Organisation (hereinafter "the WTO"),

Whereas:

(1) Article 3 of the Interim Agreement provides that the Joint Council shall decide on the arrangements and timetable for a bilateral, progressive and reciprocal liberalisation of tariff and non-tariff barriers to trade in goods, in accordance with Article XXIV of the General Agreement on Tariffs and Trade 1994 (hereinafter "the GATT 1994").

(2) Article 4 of the Interim Agreement provides that the Joint Council shall decide on the appropriate arrangements and timetable for the gradual and mutual opening of agreed government procurement markets on a reciprocal basis.

(3) Article 5 of the Interim Agreement stipulates that the Joint Council shall establish mechanisms of cooperation and coordination among the authorities of the Parties with responsibility for the implementation of competition rules.

(4) Article 6 of the Interim Agreement provides that the Joint Council shall establish a mechanism of consultation with a view to reaching mutually satisfactory solutions in the event of difficulties in the protection of intellectual property.

(5) Article 12 of the Interim Agreement mandates the Joint Council to establish a specific trade or trade related dispute settlement procedure,

HAS DECIDED AS FOLLOWS:

TITLE I

GENERAL PROVISIONS

Article 1

Objectives

The Joint Council hereby lays down the necessary arrangements for implementing the following objectives of the Interim Agreement:

(a) the progressive and reciprocal liberalisation of trade in goods, in conformity with Article XXIV of GATT 1994;

(b) opening the agreed government procurement markets of the Parties;

(c) establishing a cooperation mechanism in the field of competition;

(d) setting up a consultation mechanism in respect of intellectual property matters; and

(e) establishing a dispute settlement mechanism.

TITLE II

FREE MOVEMENT OF GOODS

Article 2

Objective

The Community and Mexico shall establish a Free Trade Area over a transitional period lasting a maximum of 10 years starting from the entry into force of this Decision, in accordance with the provisions of this Decision and in conformity with Article XXIV of the GATT 1994.

CHAPTER I

Elimination of customs duties

Section 1

Common provisions

Article 3

1. The provisions of this Chapter concerning the elimination of customs duties on imports shall apply to products originating in the territory of the Parties. For purposes of this Chapter, "originating" means qualifying under the rules of origin set out in Annex III.

2. The provisions of this Chapter concerning the elimination of customs duties on exports shall apply to all goods exported from the territory of one Party into the territory of the other Party.

3. Customs duties on imports between the Community and Mexico shall be eliminated in accordance with the provisions of Articles 4 to 10. Customs duties on exports between the Community and Mexico shall be eliminated as from the date of entry into force of this Decision.

4. No new customs duties on imports or exports shall be introduced, nor shall those already applied be increased in trade between the Community and Mexico as from the date of entry into force of this Decision.

5. Each Party declares its readiness to reduce its customs duties more rapidly than is provided for in Articles 4 to 10, or otherwise improve the conditions of access under such Articles, if its general economic situation and the situation of the economic sector concerned so permit. A Decision by the Joint Council to accelerate the elimination of a customs duty or otherwise improve conditions of access shall supersede the terms established in Articles 4 to 10 for the product concerned.

6. The classification of goods in trade between the Community and Mexico shall be that set out in each Party's respective tariff regimes in conformity with the Harmonised Commodity Description and Coding System.

7. For each product, the basic customs duty to which the successive reductions are to be applied pursuant to Articles 4 to 10 shall be that specified in each Party's Tariff Elimination Schedule (Annexes I and II). Unless otherwise specified, the base rates are expressed in ad valorem terms.

8. A customs duty includes any duty or charge of any kind imposed in connection with the importation or exportation of a good, including any form of surtax or surcharge in connection with such importation or exportation, but does not include any:

(a) charge equivalent to an internal tax imposed consistently with Article 13;

(b) antidumping or countervailing duty;

(c) fee or other charge, provided that it is limited in amount to the approximate cost of services rendered and does not represent an indirect protection for domestic products or a taxation of imports or exports for fiscal purposes.

9. Upon entry into force of this Decision, the Parties shall eliminate any fee or other charge referred to in paragraph 8(c) which is applied on originating goods on an ad valorem basis.

Section 2

Industrial products

Article 4

This Section applies to all products not covered by the definition of agricultural and fisheries products contained in Article 7.

Article 5

Customs duties on imports originating in Mexico

1. On the date of entry into force of this Decision, the Community shall eliminate all customs duties on imports of products originating in Mexico listed in Annex I (Tariff Elimination Schedule of the Community) under category "A".

2. Customs duties on imports into the Community of products originating in Mexico listed in Annex I (Tariff Elimination Schedule of the Community) under category "B" shall be eliminated in four equal stages, the first one taking place on the date of entry into force of this Decision, and the other three on 1 January of each successive year, so that these custom duties are completely eliminated by 1 January 2003.

Article 6

Customs duties on imports originating in the Community

1. On the date of entry into force of this Decision, Mexico shall eliminate all customs duties on imports of products originating in the Community listed in Annex II (Tariff Elimination Schedule of Mexico) under category "A".

2. Customs duties on imports into Mexico of products originating in the Community listed in Annex II (Tariff Elimination Schedule of Mexico) under category "B" shall be eliminated in four equal stages, the first one taking place on the date of entry into force of this Decision, and the other three on 1 January of each successive year, so that these custom duties are completely eliminated by 1 January 2003.

3. Customs duties on imports into Mexico of products originating in the Community listed in Annex II (Tariff Elimination Schedule of Mexico) under category "B+" shall be eliminated in accordance with the following schedule, so that these custom duties are completely eliminated by 1 January 2005:

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4. Customs duties on imports into Mexico of products originating in the Community listed in Annex II (Tariff Elimination Schedule of Mexico) under category "C" shall be eliminated in accordance with the following schedule, so that these custom duties are completely eliminated by 1 January 2007:

>TABLE>

Section 3

Agricultural products and fisheries

Article 7

Definition

1. This Section applies to products listed in Chapters 1 to 24 of the Harmonised Commodity Description and Coding System with the addition of any product listed in Annex I to the WTO Agreement on Agriculture.

2. This definition includes fish and fisheries products covered by Chapter 3, headings 1604 and 1605, and sub-headings 0511 91, 2301 20 and ex 1902 20(1).

Article 8

Customs duties on imports originating in Mexico

1. On the date of entry into force of this Decision, the Community shall eliminate all customs duties on imports of products originating in Mexico and listed in Annex I (Tariff Elimination Schedule of the Community) under category "1".

2. Customs duties on imports into the Community of products originating in Mexico listed in Annex I (Tariff Elimination Schedule of the Community) under category "2" shall be eliminated in accordance with the following schedule:

(a) on the date of entry into force of this Decision, each duty shall be reduced to 75 per cent of the basic duty;

(b) one year after the date of entry into force of this Decision, each duty shall be reduced to 50 per cent of the basic duty;

(c) two years after the date of entry into force of this Decision, each duty shall be reduced to 25 per cent of the basic duty; and

(d) three years after the date of entry into force of this Decision, the remaining duties shall be completely eliminated.

3. Customs duties on imports into the Community of products originating in Mexico listed in Annex I (Tariff Elimination Schedule of the Community) under category "3" shall be eliminated in accordance with the following schedule:

(a) on the date of entry into force of this Decision, each duty shall be reduced to 89 per cent of the basic duty;

(b) one year after the date of entry into force of this Decision, each duty shall be reduced to 78 per cent of the basic duty;

(c) two years after the date of entry into force of this Decision, each duty shall be reduced to 67 per cent of the basic duty;

(d) three years after the date of entry into force of this Decision, each duty shall be reduced to 56 per cent of the basic duty;

(e) four years after the date of entry into force of this Decision, each duty shall be reduced to 45 per cent of the basic duty;

(f) five years after the date of entry into force of this Decision, each duty shall be reduced to 34 per cent of the basic duty;

(g) six years after the date of entry into force of this Decision, each duty shall be reduced to 23 per cent of the basic duty;

(h) seven years after the date of entry into force of this Decision, each duty shall be reduced to 12 per cent of the basic duty; and

(i) eight years after the date of entry into force of this Decision, the remaining duties shall be completely eliminated.

4. Customs duties on imports into the Community of products originating in Mexico listed in Annex I (Tariff Elimination Schedule of the Community) under category "4" shall be eliminated in accordance with the following schedule:

(a) three years after the date of entry into force of this Decision, each duty shall be reduced to 87 per cent of the basic duty;

(b) four years after the date of entry into force of this Decision, each duty shall be reduced to 75 per cent of the basic duty;

(c) five years after the date of entry into force of this Decision, each duty shall be reduced to 62 per cent of the basic duty;

(d) six years after the date of entry into force of this Decision, each duty shall be reduced to 50 per cent of the basic duty;

(e) seven years after the date of entry into force of this Decision, each duty shall be reduced to 37 per cent of the basic duty;

(f) eight years after the date of entry into force of this Decision, each duty shall be reduced to 25 per cent of the basic duty;

(g) nine years after the date of entry into force of this Decision, each duty shall be reduced to 12 per cent of the basic duty; and

(h) 10 years after the date of entry into force of this Decision, the remaining duties shall be completely eliminated.

5. Customs duties on imports into the Community of products originating in Mexico listed in Annex I (Tariff Elimination Schedule of the Community) under category "4a" shall be eliminated in accordance with the following schedule:

(a) on the date of entry into force of this Decision, each duty shall be reduced to 90 per cent of the basic duty;

(b) one year after the date of entry into force of this Decision, each duty shall be reduced to 80 per cent of the basic duty;

(c) two years after the date of entry into force of this Decision, each duty shall be reduced to 70 per cent of the basic duty;

(d) three years after the date of entry into force of this Decision, each duty shall be reduced to 60 per cent of the basic duty;

(e) four years after the date of entry into force of this Decision, each duty shall be reduced to 50 per cent of the basic duty;

(f) five years after the date of entry into force of this Decision, each duty shall be reduced to 40 per cent of the basic duty;

(g) six years after the date of entry into force of this Decision, each duty shall be reduced to 30 per cent of the basic duty;

(h) seven years after the date of entry into force of this Decision, each duty shall be reduced to 20 per cent of the basic duty;

(i) eight years after the date of entry into force of this Decision, each duty shall be reduced to 10 per cent of the basic duty; and

(j) nine years after the date of entry into force of this Decision, the remaining duties shall be completely eliminated.

6. Customs duties on imports into the Community of products originating in Mexico listed in Annex I (Tariff Elimination Schedule of the Community) under category "5" shall be reduced in accordance with the provisions of Article 10.

7. Tariff quotas with reduced customs duties on imports into the Community of certain agricultural and fisheries products originating in Mexico listed in Annex I (Tariff Elimination Schedule of the Community) under category "6" shall be applied as from entry into force of this Decision, in accordance with the conditions mentioned in that Annex. These quotas shall be managed on the basis of specific export documents issued by the exporting Party. The import licenses will be issued by the importing Party automatically within the agreed limit on the basis of export certificates issued by the other Party.

8. Customs duties on imports into the Community of processed agricultural products originating in Mexico listed in Annex I (Tariff Elimination Schedule of the Community) under category "7" shall be applied in accordance with the conditions mentioned in Annex I.

The Joint Council may decide on:

(a) the extension of the list of processed agricultural products listed in Annex I (Tariff Elimination Schedule of the Community) under category "7"; and

(b) the reduction of the duties on imports of processed agricultural products and on the level of quotas.

This reduction of duties may take place when, in trade between the Community and Mexico, duties applicable to basic products are reduced or in response to reductions resulting from the mutual concessions relating to processed agricultural products.

9. Paragraphs 1 to 8 shall apply only to the customs duties which are expressed in the "Base Rate" column in ad valorem terms for products listed in Annex I (Tariff Elimination Schedule of the Community) under category "EP" and shall not apply to the specific duties resulting from the application of entry price systems. In case of non-respect of the entry price level for a given product, no differentiation shall be made between specific duties paid on imports into the Community of products originating in Mexico and identical products imported into the Community and originating in other third countries.

10. Tariff concessions shall not apply to imports into the Community of products listed in Annex I (Tariff Elimination Schedule of the Community) under category "O" as these products are covered by denominations protected in the Community.

11. For certain products indicated in Annex I (Tariff Elimination Schedule of the Community) a duty free quota shall apply, in accordance with the conditions mentioned in Annex I, as from entry into force of the Decision until the end of the tariff phase out for these products.

Article 9

Customs duties on imports originating in the Community

1. On the date of entry into force of this Decision, Mexico shall eliminate all customs duties on imports of products originating in the Community listed in Annex II (Tariff Elimination Schedule of Mexico) under category "1".

2. Customs duties on imports into Mexico of products originating in the Community listed in Annex II (Tariff Elimination Schedule of Mexico) under category "2" shall be eliminated in accordance with the following schedule:

(a) on the date of entry into force of this Decision, each duty shall be reduced to 75 per cent of the basic duty;

(b) one year after the date of entry into force of this Decision, each duty shall be reduced to 50 per cent of the basic duty;

(c) two years after the date of entry into force of this Decision, each duty shall be reduced to 25 per cent of the basic duty; and

(d) three years after the date of entry into force of this Decision, the remaining duties shall be completely eliminated.

3. Customs duties on imports into Mexico of products originating in the Community listed in Annex II (Tariff Elimination Schedule of Mexico) under category "3" shall be eliminated in accordance with the following schedule:

(a) on the date of entry into force of this Decision, each duty shall be reduced to 89 per cent of the basic duty;

(b) one year after the date of entry into force of this Decision, each duty shall be reduced to 78 per cent of the basic duty;

(c) two years after the date of entry into force of this Decision, each duty shall be reduced to 67 per cent of the basic duty;

(d) three years after the date of entry into force of this Decision, each duty shall be reduced to 56 per cent of the basic duty;

(e) four years after the date of entry into force of this Decision, each duty shall be reduced to 45 per cent of the basic duty;

(f) five years after the date of entry into force of this Decision, each duty shall be reduced to 34 per cent of the basic duty;

(g) six years after the date of entry into force of this Decision, each duty shall be reduced to 23 per cent of the basic duty;

(h) seven years after the date of entry into force of this Decision, each duty shall be reduced to 12 per cent of the basic duty; and

(i) eight years after the date of entry into force of this Decision, the remaining duties shall be completely eliminated.

4. Customs duties on imports into Mexico of products originating in the Community listed in Annex II (Tariff Elimination Schedule of Mexico) under category "4" shall be eliminated in accordance with the following schedule:

(a) three years after the date of entry into force of this Decision, each duty shall be reduced to 87 per cent of the basic duty;

(b) four years after the date of entry into force of this Decision, each duty shall be reduced to 75 per cent of the basic duty;

(c) five years after the date of entry into force of this Decision, each duty shall be reduced to 62 per cent of the basic duty;

(d) six years after the date of entry into force of this Decision, each duty shall be reduced to 50 per cent of the basic duty;

(e) seven years after the date of entry into force of this Decision, each duty shall be reduced to 37 per cent of the basic duty;

(f) eight years after the date of entry into force of this Decision, each duty shall be reduced to 25 per cent of the basic duty;

(g) nine years after the date of entry into force of this Decision, each duty shall be reduced to 12 per cent of the basic duty; and

(h) 10 years after the date of entry into force of this Decision, the remaining duties shall be completely eliminated.

5. Customs duties on imports into Mexico of products originating in the Community listed in Annex II (Tariff Elimination Schedule of Mexico) under category "4a" shall be eliminated in accordance with the following schedule:

(a) on the date of entry into force of this Decision, each duty shall be reduced to 90 per cent of the basic duty;

(b) one year after the date of entry into force of this Decision, each duty shall be reduced to 80 per cent of the basic duty;

(c) two years after the date of entry into force of this Decision, each duty shall be reduced to 70 per cent of the basic duty;

(d) three years after the date of entry into force of this Decision, each duty shall be reduced to 60 per cent of the basic duty;

(e) four years after the date of entry into force of this Decision, each duty shall be reduced to 50 per cent of the basic duty;

(f) five years after the date of entry into force of this Decision, each duty shall be reduced to 40 per cent of the basic duty;

(g) six years after the date of entry into force of this Decision, each duty shall be reduced to 30 per cent of the basic duty;

(h) seven years after the date of entry into force of this Decision, each duty shall be reduced to 20 per cent of the basic duty;

(i) eight years after the date of entry into force of this Decision, each duty shall be reduced to 10 per cent of the basic duty; and

(j) nine years after the date of entry into force of this Decision, the remaining duties shall be completely eliminated.

6. Customs duties on imports into Mexico of products originating in the Community listed in Annex II (Tariff Elimination Schedule of Mexico) under category "5" shall be reduced in accordance with the provisions of Article 10.

7. Tariff quotas with reduced customs duties on imports into Mexico of certain agricultural and fisheries products originating in the Community listed in Annex II (Tariff Elimination Schedule of Mexico) under category "6" shall be applied as from entry into force of this Decision in accordance with the conditions mentioned in that Annex. These quotas shall be managed on the basis of specific export documents issued by the exporting Party. The import licenses will be issued by the importing Party automatically within the agreed limit on the basis of export certificates issued by the other Party.

8. Customs duties on imports into Mexico of processed agricultural products originating in the Community listed in Annex II (Tariff Elimination Schedule of Mexico) under category "7" shall be applied in accordance with the conditions mentioned in that Annex.

The Joint Council may decide on:

(a) the extension of the list of processed agricultural products listed in Annex II (Tariff Elimination Schedule of Mexico) under category "7"; and

(b) the reduction of the duties on imports of processed agricultural products and on the level of quotas.

This reduction of duties may take place when in trade between Mexico and the Community, duties applicable to basic products are reduced or in response to reductions resulting from the mutual concessions relating to processed agricultural products.

Article 10

Review Clause

Agricultural and Fisheries Products

1. No later than three years after the entry into force of this Decision and in accordance with the provisions of Article 3(5), the Joint Council shall consider further steps in the process of liberalisation of trade between the Community and Mexico. For this purpose, a review shall be undertaken, on a case by case basis, of the customs duties applicable on products listed in Annexes I and II (Tariff Elimination Schedule of the Community and of Mexico, respectively) under category "5". Where appropriate, the relevant rules of origin shall also be reviewed.

2. No later than three years after the entry into force of this Decision and in accordance with the provisions of Article 3(5), the Joint Council shall review the tariff quota quantities set out for agricultural products in Annexes I and II (Tariff Elimination Schedules of the Community and Mexico, respectively) under category "6". For this purpose, a review shall be undertaken, on a case by case basis, of the products listed in these Annexes.

3. No later than three years after the entry into force of this Decision and in accordance with the provisions of Article 3(5), the Joint Council shall review the relevant elements in the process of liberalisation of trade between the Community and Mexico for fisheries products set out in Annexes I and II (Tariff Elimination Schedules of the Community and Mexico, respectively) under category "6".

4. Products listed in Annex I (Tariff Elimination Schedule of the Community) under category "O" shall be reviewed in accordance with developments in intellectual property rights.

5. No later than 1 September 2001, both Parties shall enter into discussions to examine the possibility of opening a preferential tariff rate quota for tuna loins before 1 January 2002.

CHAPTER II

Non tariff measures

Article 11

Scope

The provisions of this Chapter shall apply to products of the territory of a Party.

Article 12

Prohibition of quantitative restrictions

1. All import or export prohibitions or restrictions in trade between the Community and Mexico, other than customs duties and taxes, whether made effective through quotas, import or export licenses or other measures, shall be eliminated upon the entry into force of this Decision. No new such measures shall be introduced.

2. Paragraph 1 shall not apply to measures set out in Annex IV.

Article 13

National treatment on internal taxation and regulation

1. The imported products of the territory of the other Party shall not be subject, either directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to like domestic products. Moreover, the Parties shall not otherwise apply internal taxes or other internal charges so as to afford protection to domestic production(2).

2. The imported products of the territory of the other Party shall be accorded treatment no less favourable than that accorded to like domestic products in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use.

3. The provisions of this Article shall not prevent the payment of subsidies exclusively to domestic producers, including payments to domestic producers derived from the proceeds of internal taxes or charges applied consistently with the provisions of this Article and subsidies effected through governmental purchases of domestic products.

4. The provisions of this Article shall not apply to laws, regulations, procedures or practices governing public procurement, which shall be subject exclusively to the provisions of Title III.

5. Paragraphs 1 and 2 shall not apply to the measures set out in Annex V until the date mentioned in that Annex.

Article 14

Antidumping and countervailing measures

The Community and Mexico confirm their rights and obligations arising from the WTO Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 and from the WTO Agreement on Subsidies and Countervailing Measures.

Article 15

Safeguard clause

1. Where any product of one Party is being imported into the territory of the other Party in such increased quantities and under such conditions as to cause or threaten to cause:

(a) serious injury to the domestic industry of like or directly competitive products in the territory of the importing Party; or

(b) serious disturbances in any sector of the economy or difficulties which could bring about serious deterioration in the economic situation of a region of the importing Party,

the importing Party may take appropriate measures under the conditions and in accordance with the procedures laid down in this Article.

2. Safeguard measures shall not exceed what is necessary to remedy the difficulties which have arisen and should normally consist of the suspension of the further reduction of any applicable rate of duty provided for under this Decision for the product concerned or the increase of the rate of duty for that product.

3. Such measures shall contain clear elements progressively leading to their elimination at the end of the set period, at the latest. Measures shall not be taken for a period exceeding one year. In very exceptional circumstances, measures may be taken up to a total maximum period of three years. No safeguard measure shall be applied to the import of a product which has previously been subject to such a measure for a period of, at least, three years since the expiry of the measure.

4. The Party intending to take safeguard measures under this Article shall offer the other Party compensation in the form of substantially equivalent trade liberalisation in relation to the imports from the latter. The offer of liberalisation shall normally consist of concessions having substantially equivalent trade effects or concessions substantially equivalent to the value of the additional duties expected to result from the safeguard measure.

5. The offer shall be made prior to the adoption of the safeguard measure and simultaneously with the supply of information and referral to the Joint Committee, as provided for in this Article. Should the offer not be considered satisfactory by the Party against whose product the safeguard measure is intended to be taken, both Parties may agree, in the consultations referred to in this Article, on other means of trade compensation.

6. If the Parties concerned are unable to agree on compensation, the Party against whose product the safeguard measure is taken may take compensatory tariff action having trade effects substantially equivalent to the safeguard measure taken under this Article. The Party taking compensatory tariff action shall apply it, as a maximum, for the period necessary to achieve equivalent trade effects.

7. In the cases specified in this Article, before taking the measures provided for therein or, in the cases to which paragraph 8(b) of this Article applies, as soon as possible, the Community or Mexico, as the case may be, shall supply the Joint Committee with all relevant information, with a view to seeking a solution acceptable to the two Parties.

8. For the implementation of the above paragraphs the following provisions shall apply:

(a) The difficulties arising from the situation referred to in this Article shall be referred for examination to the Joint Committee, which may take any decisions needed to put an end to such difficulties.

If the Joint Committee or the exporting Party has not taken a decision putting an end to the difficulties or no other satisfactory solution has been reached within 30 days of the matter being referred to the Joint Committee, the importing Party may adopt the appropriate measures to remedy the problem, and, in the absence of mutually agreed compensation, the Party against whose product the measure is taken may take compensatory tariff action in accordance with this Article. Such compensatory tariff action shall be immediately notified to the Joint Committee. In the selection of safeguard measures and compensatory tariff action, priority must be given to those which least disturb the functioning of the arrangements established in this Decision.

(b) Where exceptional and critical circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Party concerned may, in the situations specified in this Article, apply forthwith precautionary measures necessary to deal with the situation and shall inform the other Party immediately thereof.

(c) The safeguard measures shall be notified immediately to the Joint Committee and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their abolition as soon as circumstances permit.

9. In the event of the Community or Mexico subjecting imports of products liable to give rise to the difficulties referred to in this Article to an administrative procedure having at its purpose the rapid provision of information on the trend of trade flows, it shall inform the other Party.

Article 16

Shortage clause

1. Where compliance with the provisions of Chapter I or Article 12 leads to:

(a) a critical shortage, or threat thereof, of foodstuffs or other products essential to the exporting Party; or

(b) a shortage of essential quantities of domestic materials to a domestic processing industry during periods when the domestic price of such materials is held below the world price as part of a governmental stabilisation plan; or

(c) re-export to a third country of a product against which the exporting Party maintains export customs duties or export prohibitions or restrictions,

and where the situations referred to above give rise, or are likely to give rise to major difficulties for the exporting Party, that Party may adopt export restrictions or export customs duties.

2. In the selection of measures, priority must be given to those which least disturb the functioning of the arrangements in this Decision. Such measures shall not be applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination where the same conditions prevail, or a disguised restriction on trade and shall be eliminated when the conditions no longer justify their maintenance. In addition, the measures which may be adopted pursuant to paragraph 1(b) of this Article shall not operate to increase the exports of or the protection afforded to the domestic processing industry concerned, and shall not depart from the provisions of this Decision relating to non-discrimination.

3. Before taking the measures provided for in paragraph 1 of this Article or, as soon as possible in cases to which paragraph 4 of this Article applies the Community or Mexico, as the case may be, shall supply the Joint Committee with all relevant information, with a view to seeking a solution acceptable to the two Parties. The Parties within the Joint Committee may agree on any means needed to put an end to the difficulties. If no agreement is reached within 30 days of the matter being referred to the Joint Committee, the exporting Party may apply measures under this Article on the exportation of the product concerned.

4. Where exceptional and critical circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Community or Mexico, whichever is concerned, may apply forthwith the precautionary measures necessary to deal with the situation and shall inform the other Party immediately thereof.

5. Any measures applied pursuant to this Article shall be immediately notified to the Joint Committee and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their elimination as soon as circumstances permit.

Article 17

Customs cooperation

1. The Parties shall cooperate in order to guarantee compliance with the provisions of Title II, as they relate to customs matters, and Annex III, and with a view to achieving the necessary coordination of their customs systems.

2. Cooperation may include the following in particular:

(a) the exchange of information;

(b) the organisation of seminars and placements;

(c) the introduction of the single administrative document (SAD);

(d) the simplification of inspection and formalities in respect of the carriage of goods;

(e) the improvement of working methods;

(f) the respect of transparency, efficiency, integrity and accountability of operations; and

(g) technical assistance where appropriate.

3. The administrations of both Parties shall provide mutual administrative assistance in customs matters in accordance with the provisions of an Annex on mutual administrative assistance on customs matters to be adopted by the Joint Council no later than one year from the entry into force of this Decision.

4. The Joint Council hereby establishes a Special Committee on Customs Cooperation and Rules of Origin composed of representatives of the Parties. Its functions shall include:

(a) monitoring the implementation and administration of this Article and of Annex III;

(b) providing a forum to consult and discuss on all issues concerning customs, including in particular customs procedures, tariff regimes, customs nomenclature, customs cooperation and mutual administrative assistance in customs matters;

(c) providing a forum to consult and discuss on issues relating to rules of origin and administrative cooperation;

(d) enhancing cooperation on the development, application and enforcement of customs procedures, mutual administrative assistance in customs matters, rules of origin and administrative cooperation.

5. The Special Committee shall be comprised of representatives of the Parties. The Special Committee shall meet at least once a year, on a date and with an agenda agreed in advance by the Parties. The office of chairman of the Special Committee shall be held alternatively by each of the Parties. The Special Committee shall report annually to the Joint Committee.

6. The Parties may agree to hold ad hoc meetings for customs cooperation or for rules of origin and mutual administrative assistance.

Article 18

Customs valuation

From 1 January 2003, each Party shall not afford less favourable treatment in respect of customs valuation to imports of products originating in the other Party than to imports of products originating in any other country, including countries with which it has concluded an agreement notified under Article XXIV of GATT 1994.

Article 19

Standards, technical regulations and conformity assessment procedures

1. This Article applies to standards, technical regulations and conformity assessment procedures as defined in the WTO Agreement on Technical Barriers to Trade (hereinafter "the TBT Agreement") that may directly or indirectly affect trade in products. It does not apply to sanitary and phytosanitary measures, which are covered by Article 20 of this Decision.

2. The Parties confirm their rights and obligations relating to standards, technical regulations and conformity assessment procedures under the TBT Agreement.

3. The Parties shall intensify their bilateral cooperation in this field in light of their mutual interest to facilitate access to both Parties markets and to increase mutual understanding and awareness of their respective systems.

4. To this end, the Parties shall work towards:

(a) exchanging information on standards, technical regulations and conformity assessment procedures;

(b) holding bilateral consultations concerning specific technical barriers to trade;

(c) promoting the use of international standards, technical regulations and conformity assessment procedures; and

(d) facilitating the adoption of their respective standards, technical regulations and conformity assessment procedures on the basis of international requirements.

5. Each Party shall, on request of the other Party, provide to that Party technical advice and assistance on mutually agreed terms and conditions to enhance that Party's standards, technical regulations or conformity assessment procedures, and related activities, processes and systems.

6. In order to achieve the objectives set out in paragraph 4, the Joint Council hereby establishes a Special Committee on Standards and Technical Regulations. The Special Committee shall be comprised of representatives of the Parties. The Special Committee shall meet once a year on a date and with an agenda agreed in advance by the Parties. The office of chairman of the Special Committee shall be held alternatively by each of the Parties. The Special Committee shall report annually to the Joint Committee.

7. The Special Committee's functions shall include:

(a) monitoring the implementation and administration of this Article;

(b) providing a forum to consult and discuss on issues relating to standards, technical regulations and conformity assessment procedures;

(c) working towards the approximation and simplification of labelling requirements, including voluntary schemes, the use of pictograms and symbols, and the convergence of the terms applied to leather products with international practices; and

(d) enhancing cooperation on the development, application and enforcement of standards, technical regulations and conformity assessment procedures.

Article 20

Sanitary and phytosanitary measures

1. The Parties shall cooperate in the area of sanitary and phytosanitary measures with the objective of facilitating trade. The Parties reaffirm their rights and obligations set out in the WTO Agreement on the Application of Sanitary and Phytosanitary Measures.

2. The Joint Council hereby establishes a Special Committee on Sanitary and Phytosanitary Measures. The Special Committee shall be comprised of representatives of both Parties. The Special Committee shall meet once a year, on a date and with an agenda agreed in advance by the Parties. The office of chairman of the Special Committee shall be held alternatively by a representative of each Party. The Special Committee shall report annually to the Joint Committee.

3. The functions of the Special Committee shall include:

(a) monitoring the application of the provisions of this Article;

(b) to provide a forum to identify and address problems that may arise from the application of specific sanitary or phytosanitary measures, with a view to reaching mutually acceptable solutions;

(c) to consider, as necessary, the development of specific provisions for the application of regionalisation, or for the assessment of equivalence; and

(d) to consider the development of specific arrangements for information exchange.

4. The Special Committee may establish contact points.

5. Each Party shall contribute to the work of the Special Committee, and consider the outcome of its work in accordance with its own internal procedures.

Article 21

Balance of payments difficulties

1. The Parties shall endeavour to avoid the imposition of restrictive measures relating to imports for balance of payments purposes. In the event of their introduction, the Party having introduced the same shall present to the other Party, as soon as possible, a time schedule for their removal.

2. Where one or more Member States or Mexico is in serious balance of payments difficulties, or under imminent threat thereof, the Community or Mexico, as the case may be, may in accordance with the conditions established under the GATT 1994, adopt restrictive measures relating to imports, which shall be of limited duration and may not go beyond what is necessary to remedy the balance of payments situation. The Community or Mexico, as the case may be, shall inform the other Party forthwith.

Article 22

General exceptions

Nothing in this Decision shall preclude the adoption or enforcement by any Party of measures which:

(a) are necessary to protect public morals;

(b) are necessary to protect human, animal or plant life or health;

(c) are necessary to secure compliance with laws or regulations which are not inconsistent with this Decision, including those relating to customs enforcement, the protection of intellectual property rights; and the prevention of deceptive practices;

(d) relate to the importation or exportation of gold or silver;

(e) relate to the protection of national treasures of artistic, historic or archaeological value; or

(f) relate to the conservation of exhaustible natural resources if such measures are made effective in conjunction with restrictions on domestic production or consumption.

Such measures shall not, however, be applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination where the same conditions prevail or a disguised restriction on trade between the Parties.

Article 23

Customs unions and free trade areas

1. Nothing in this Decision shall preclude the maintenance or establishment of customs unions, free trade areas or other arrangements between either of the Parties and third countries, except insofar as they do not alter the rights and obligations provided for in this Decision.

2. At the request of a Party, consultations between the Community and Mexico shall take place within the Joint Committee concerning agreements establishing or adjusting customs unions or free trade areas and, where required, on other major issues related to the Parties' respective trade policies with third countries.

Article 24

Special Committee on Steel Products

1. The Joint Council hereby establishes a Special Committee on Steel Products comprising representatives of the Parties with expertise or experience on the steel sector and in particular on trade in steel. The Special Committee may invite representatives of each Party's industry to its meetings. It shall meet at least twice a year and, at the request of either Party, on a date and with an agenda agreed in advance by the Parties. The office of chairman of the Special Committee shall be held alternatively by a representative of each Party.

2. The Special Committee shall analyse relevant matters on the steel sector, including trade in steel. It shall report annually to the Joint Committee.

TITLE III

GOVERNMENT PROCUREMENT

Article 25

Coverage

1. This Title applies to any law, regulation, procedure or practice regarding any procurement:

(a) by entities set out in Annex VI;

(b) of goods in accordance with Annex VII, services in accordance with Annex VIII, or construction services in accordance with Annex IX;

(c) where the value of the contract to be awarded is estimated to be equal to or greater than a threshold as set out in Annex X(3).

2. Paragraph 1 is subject to the provisions set out in Annex XI.

3. Subject to paragraph 4, where a contract to be awarded by an entity is not covered by this Title, this Title shall not be construed to cover any good or service component of that contract.

4. No Party may prepare, design or otherwise structure any procurement contract in order to avoid the obligations of this Title.

5. Procurement includes procurement by such methods as purchase, lease or rental, with or without an option to buy.

6. Procurement does not include:

(a) non-contractual agreements or any form of government assistance, including cooperative agreements, grants, loans, equity infusions, guarantees, fiscal incentives, and government provision of goods and services to persons or state, provincial and regional governments; and

(b) the acquisition of fiscal agency or depository services, liquidation and management services for regulated financial institutions and sale and distribution services for government debt.

Article 26

National treatment and non-discrimination

1. With respect to all laws, regulations, procedures and practices regarding government procurement covered by this Title, each Party shall provide immediately and unconditionally to the products, services and suppliers of the other Party treatment no less favourable than that accorded to domestic products, services and suppliers.

2. With respect to all laws, regulations, procedures and practices regarding government procurement covered by this Title, each Party shall ensure:

(a) that its entities do not treat a locally-established supplier less favourably than another locally-established supplier on the basis of the degree of foreign affiliation to, or ownership by, a person of the other Party; and,

(b) that its entities do not discriminate against locally-established suppliers on the basis of the country of production of the good or service being supplied, provided that the country of production is the other Party.

3. The provisions of paragraphs 1 and 2 shall not apply to customs duties and charges of any kind imposed on, or in connection with, importation, the method of levying such duties and charges, other import regulations and formalities, and measures affecting trade in services other than laws, regulations, procedures and practices regarding government procurement covered by this Title.

Article 27

Rules of origin

1. No Party may apply rules of origin to goods imported from the other Party for purposes of government procurement covered by this Title that are different from, or inconsistent with, the rules of origin which that Party applies in the normal course of trade.

2. A Party may deny the benefits of this Title to a service supplier of the other Party, subject to prior notification and consultation, where the Party establishes that the service is being provided by an enterprise that is owned or controlled by persons of a non-Party and that has no substantial business activities in the territory of either Party.

Article 28

Prohibition of offsets

Each Party shall ensure that its entities do not, in the qualification and selection of suppliers, goods or services, in the evaluation of bids or the award of contracts, consider, seek or impose offsets. For purposes of this Article, offsets means conditions imposed or considered by an entity prior to, or in the course of, its procurement process that encourage local development or improve its Party's balance of payments accounts, by means of requirements of local content, licensing of technology, investment, counter-trade or similar requirements.

Article 29

Procurement procedures and other provisions

1. Mexico shall apply the rules and procedures specified in Part A of Annex XII and the Community shall apply the rules and procedures specified in Part B of Annex XII. Both sets of rules and procedures are considered to provide equivalent treatment.

2. The rules and procedures specified in Annex XII may only be modified by the Party concerned in order to reflect amendments to the corresponding provisions of the North American Free Trade Agreement (hereinafter NAFTA) and the WTO Agreement on Government Procurement (hereinafter GPA), respectively, provided that the rules and procedures applied by that Party, as modified, continue to afford equivalent treatment.

3. If a Party modifies its respective rules and procedures contained in Annex XII, pursuant to paragraph 2, it shall previously consult with the other Party and shall bear the burden of proving that the rules and procedures, as modified, continue to afford equivalent treatment.

4. The Party concerned shall notify the other Party of any modification to the rules and procedures specified in Annex XII no later than 30 days prior to their date of entry into force.

5. Where a Party considers that such a modification affects access to the other Party's procurement market considerably, it can request consultations. If no satisfactory solution can be found the Party may have recourse to dispute settlement procedures under Title VI, with a view to maintaining an equivalent level of access to the other Party's procurement market.

6. No entity of a Party may make it a condition for the qualification of suppliers and for the awarding of a contract that the supplier has previously been awarded one or more contracts by an entity of that Party or that the supplier has prior work experience in the territory of that Party.

Article 30

Bid challenge

1. In the event of a complaint by a supplier that there has been a breach of this Title in the context of a procurement, each Party shall encourage the supplier to seek resolution of its complaint in consultation with the procuring entity. In such instances the procuring entity shall accord impartial and timely consideration to any such complaint, in a manner that is not prejudicial to obtaining corrective measures under the challenge system.

2. Each Party shall provide non-discriminatory, timely, transparent and effective procedures enabling suppliers to challenge alleged breaches of this Title arising in the context of procurements in which they have, or have had, an interest.

3. Each Party shall provide its challenge procedures in writing and make them generally available.

4. Each Party shall ensure that documentation relating to all aspects of the process concerning procurements covered by this Title shall be retained for three years.

5. The interested supplier may be required to initiate a challenge procedure and notify the procuring entity within specified time-limits from the time when the basis of the complaint is known or reasonably should have been known, but in no case within a period of less than 10 days from that time.

6. A Party may require under its legislation that a bid challenge be initiated only after the notice of procurement has been published or, where a notice is not published, after tender documentation has been made available. Where a Party imposes such a requirement, the 10-day period described in paragraph 5 shall begin no earlier than the date that the notice is published or the tender documentation is made available. Nothing in this provision precludes the right of interested suppliers to judicial review.

7. Challenges shall be heard by an impartial and independent reviewing authority with no interest in the outcome of the procurement and the members of which are secure from external influence during the term of appointment. A reviewing authority which is not a court shall either be subject to judicial review or shall have procedures which provide that:

(a) participants can be heard before an opinion is given or a decision is reached;

(b) participants can be represented and accompanied;

(c) participants shall have access to all proceedings;

(d) proceedings can take place in public;

(e) opinions or decisions are given in writing with a statement describing the basis for the opinions or decisions;

(f) witnesses can be presented; and

(g) documents are disclosed to the reviewing authority.

8. Challenge procedures shall provide for:

(a) rapid interim measures to correct breaches of this Title and to preserve commercial opportunities. Such action may result in suspension of the procurement process. However, procedures may provide that overriding adverse consequences for the interests concerned, including the public interest, may be taken into account in deciding whether such measures should be applied. In such circumstances, just cause for not acting shall be provided in writing; and

(b) where appropriate, correction of the breach of this Title or compensation for the loss or damages suffered, which may be limited to costs for tender preparation or protest.

9. With a view to the preservation of the commercial and other interests involved, the challenge procedure shall normally be completed in a timely fashion.

Article 31

Provision of information

1. Each Party shall promptly publish any law, regulation, precedential judicial decision, administrative ruling of general application and any procedure regarding government procurement covered by this Title in the appropriate publications referred to in Annex XIII.

2. Each Party shall designate at the entry into force of this Decision one or more contact points to:

(a) facilitate communication between the Parties;

(b) answer all reasonable inquiries from the other Party to provide relevant information on matters covered by this Title; and

(c) on request of a supplier of a Party, provide in writing within a reasonable time period a reasoned answer to the supplier and the other Party as to whether a specific entity is covered by this Title.

3. A Party may seek such additional information on the award of the contract as may be necessary to determine whether the procurement was made fairly and impartially, in particular with respect to unsuccessful tenders. To this end, the Party of the procuring entity shall provide information on the characteristics and relative advantages of the winning tender and the contract price. Where release of this information would prejudice competition in future tenders, the information shall not be released by the requesting Party, except after consultation with, and agreement of, the Party that provided the information.

4. On request, each Party shall provide to the other Party information available to that Party and its entities concerning covered procurement of its entities and the individual contracts awarded by its entities.

5. No Party may disclose confidential information the disclosure of which would prejudice the legitimate commercial interests of a particular person or might prejudice fair competition between suppliers, without the formal authorisation of the person that provided the information to that Party.

6. Nothing in this Title shall be construed as requiring any Party to disclose confidential information, the disclosure of which would impede law enforcement or otherwise be contrary to the public interest.

7. Each Party shall collect and exchange on an annual basis statistics on its procurements covered by this Title(4). Such reports shall contain the following information with respect to contracts awarded by all procurement entities covered under this Title:

(a) for entities in Annexes VI.A.1 and VI.B.1, statistics on the estimated value of contracts awarded, both above and below the threshold value, on a global basis and broken down by entities; for entities in Annexes VI.A.2 and VI.B.2, statistics on the estimated value of contracts awarded above the threshold value on a global basis and broken down by categories of entities;

(b) for entities in Annexes VI.A.1 and VI.B.1, statistics on the number and total value of contracts awarded above the applicable threshold value, broken down by entities and categories of products and services; for entities in Annexes VI.A.2 and VI.B.2, statistics on the estimated value of contracts awarded above the threshold value broken down by categories of entities and categories of products and services;

(c) for entities in Annexes VI.A.1 and VI.B.1, statistics broken down by entity and by categories of products and services, on the number and total value of contracts awarded under limited tendering procedures; for categories of entities in Annexes VI.A.2 and VI.B.2, statistics on the total value of contracts awarded above the threshold value under each of the cases of limited tendering procedures; and

(d) for entities in Annexes VI.A.1 and VI.B.1, statistics broken down by entities, on the number and total value of contracts awarded under derogations to the Title contained in the relevant Annexes; for categories of entities in Annexes VI.A.2 and VI.B.2, statistics on the total value of contracts awarded under derogations to the Title contained in the relevant Annexes.

8. To the extent that such information is available, each Party shall provide statistics on the country of origin of products and services purchased by its entities. With a view to ensuring that such statistics are comparable, the Special Committee established under Article 32 shall provide guidance on the methods to be used. With a view to ensuring effective monitoring of procurements covered by this Title, the Joint Council may decide to modify the requirements of subparagraphs (a) to (d) of paragraph 7 as regards the nature and the extent of statistical information to be exchanged.(5)

Article 32

Technical cooperation

1. The Joint Council hereby establishes a Special Committee on Government Procurement. The Special Committee shall be comprised of representatives of the Parties and may invite procurement officials of the covered entities and representatives of their respective suppliers. The Special Committee shall meet once a year, or when necessary, to discuss the operation of this Title and, where necessary, make recommendations for the improvement and amendment of its scope. The Special Committee shall report annually to the Joint Committee.

2. Its functions shall include:

(a) analysing available information on each Party's procurement market including the statistical information provided under paragraph 7 of Article 31;

(b) evaluating the effective access of suppliers of a Party to procurements of the other Party covered under this Title and recommending, where necessary, appropriate measures to enhance the conditions for effective access to a Party's procurement market;

(c) promoting government procurement opportunities for suppliers from both Parties; and

(d) monitoring the application of the provisions of this Title and providing a forum to identify and address any problems or other issues that may arise.

3. The Parties shall cooperate, on mutually agreed terms, to increase the understanding of their respective government procurement systems, with a view to maximise the access to government procurement opportunities for the suppliers of both Parties.

4. Each Party shall take reasonable measures to provide to the other Party and to the suppliers of the other Party, on a cost recovery basis, information concerning training and orientation programs regarding its government procurement system, and access on a non-discriminatory basis to any program it conducts.

5. The training and orientation programs referred to in paragraph 4 include:

(a) training of government personnel directly involved in government procurement procedures;

(b) training of suppliers interested in pursuing government procurement opportunities;

(c) an explanation and description of specific elements of each Party's government procurement system, such as its bid challenge mechanism; and

(d) information about government procurement market opportunities.

6. Each Party shall establish at least one contact point to provide information on the training and orientation programs referred to in this Article at the entry into force of this Decision.

Article 33

Information technology

1. The Parties shall cooperate with a view to ensuring that the type of procurement information, notably in tender notices and documentation, held on their respective databases is comparable in terms of quality and accessibility. The Parties shall also cooperate with a view to ensuring that the type of information exchanged through their respective electronic means between interested parties for the purposes of public procurement is comparable in terms of quality and accessibility.

2. Paying due attention to issues of interoperability and interconnectivity, and after having agreed that the type of procurement information referred to in paragraph 1 is comparable, the Parties shall grant access to suppliers of the other Party to relevant procurement information, such as tender notices, held on their respective databases, and to their respective electronic procurement systems, such as electronic tendering, in accordance with Article 26.

Article 34

Exceptions

Provided that such measures are not applied in a manner that would constitute a means of arbitrary or unjustifiable discrimination between the Parties or a disguised restriction on trade between the Parties, nothing in this Title shall be construed to prevent any Party from adopting or maintaining measures:

(a) necessary to protect public morals, order or safety;

(b) necessary to protect human, animal or plant life or health;

(c) necessary to protect intellectual property; or

(d) relating to goods or services of handicapped persons, of philanthropic institutions or of prison labour.

Article 35

Rectifications or modifications

1. Each Party may modify its coverage under this Title only in exceptional circumstances.

2. Where a Party modifies its coverage under this Title, that Party shall:

(a) notify the other Party of the modification;

(b) reflect the change in the appropriate Annex; and

(c) propose to the other Party appropriate compensatory adjustments to its coverage in order to maintain a level of coverage comparable to that existing prior to the modification.

3. Notwithstanding paragraphs 1 and 2, a Party may make rectifications of a purely formal nature and minor amendments to Annexes VI to IX and XI, provided that it notifies such rectifications to the other Party and the other Party does not object to such proposed rectification within 30 days. In such cases, compensation need not be proposed.

4. Notwithstanding any other provision of this Title, a Party may undertake reorganisations of its government procurement entities covered by this Title, including programs through which the procurement of such entities is decentralised or the corresponding government functions cease to be performed by any government entity whether or not subject to this Title, provided that it notifies such reorganisations to the other Party. In such cases, compensation need not be proposed. No Party may undertake such reorganisations or programs to avoid the obligations of this Title.

5. Where a Party considers that:

(a) an adjustment proposed under paragraph 2(c) is not adequate to maintain a comparable level of mutually agreed coverage; or

(b) a rectification or amendment does not meet the requirements of paragraph 3 and should be compensated,

the Party may have recourse to dispute settlement procedures under Title VI.

6. Where a Party considers that a reorganisation of procurement entities does not meet the requirements of paragraph 4 and should be compensated, it may have recourse to dispute settlement procedures under Title VI, provided that it has objected to such reorganisation within 30 days from the date of the notification.

Article 36

Privatisation of entities

1. Where a Party wishes to withdraw an entity from Section 2 of Annex VI.A or VI.B, as appropriate, on the grounds that government control over it has been effectively eliminated, that Party shall notify the other Party(6).

2. Where a Party objects to the withdrawal on the grounds that the entity remains subject to government control, the Parties will enter into consultations to restore the balance of their offers.

Article 37

Further negotiations

In the case that the Community or Mexico offer a GPA or NAFTA Party, respectively, additional advantages with regard to the access to their respective procurement markets beyond what has been agreed under this Title, they shall agree to enter into negotiations with the other Party with a view to extending these advantages to the other Party on a reciprocal basis.

Article 38

Final provisions

1. The Joint Council may adopt appropriate measures to enhance the conditions for effective access to a Party's covered procurement or, as the case may be, adjust a Party's coverage so that such conditions for effective access are maintained on an equitable basis.

2. Both Parties shall provide each other with illustrative information on their respective government enterprise markets in accordance with the format contained in Annex XIV subject to any applicable confidentiality provisions existing in their respective legal systems.

3. This Title shall enter into force once the Joint Council, upon recommendation of the Special Committee, determines that the information referred to in paragraph 2 has been exchanged in accordance with Annex XIV. By way of exception, Article 32 shall enter into force in accordance with Article 49.

TITLE IV

COMPETITION

Article 39

Mechanism of cooperation

1. A mechanism of cooperation between the authorities of the Parties with responsibility for implementation of competition rules is established in Annex XV.

2. The competition authorities of both Parties shall present to the Joint Committee an annual report on the implementation of the mechanism referred to in paragraph 1.

TITLE V

CONSULTATION MECHANISM FOR INTELLECTUAL PROPERTY MATTERS

Article 40

Special Committee on Intellectual Property Matters

1. The Joint Council hereby establishes a Special Committee on Intellectual Property Matters. The Special Committee shall be comprised of representatives of the Parties. The Special Committee shall be convened within 30 days following a request of either Party with a view to reaching mutually satisfactory solutions to difficulties arising in the protection of intellectual property. The office of chairman of the Special Committee shall be held alternatively by each of the Parties. The Special Committee shall report to the Joint Committee.

2. For purposes of paragraph 1, "protection" shall include matters affecting the availability, acquisition, scope, maintenance and enforcement of intellectual property rights as well as those matters affecting the use of intellectual property rights.

TITLE VI

DISPUTE SETTLEMENT

CHAPTER I

Scope and coverage

Article 41

Scope and coverage

1. The provisions of this Title shall apply with respect to any matter arising from this Decision or from Articles 2, 3, 4, and 5 of the Interim Agreement (hereinafter the "covered legal instruments").

2. By way of exception, the arbitration procedure laid down in Chapter III shall not be applicable in the case of disputes concerning Articles 14, 19(2), 20(1), 21, 23, and 40 of this Decision.

CHAPTER II

Consultation

Article 42

Consultation

1. The Parties shall at all times endeavour to agree on the interpretation and application of the covered legal instruments and shall make every attempt through cooperation and consultations to arrive to a mutually satisfactory resolution of any matter that might affect their operation.

2. Each Party may request consultations within the Joint Committee with respect to any matter relating to the application or interpretation of the covered legal instruments or any other matter that it considers might affect their operation.

3. The Joint Committee shall convene within 30 days of delivery of the request and shall endeavour to resolve the dispute promptly by means of a decision. That decision shall specify the implementing measures to be taken by the Party concerned, and the period of time to do so.

CHAPTER III

Arbitration procedure

Article 43

Establishment of an arbitration panel

1. In case a Party considers that a measure applied by the other Party violates the covered legal instruments and such matter has not been resolved within 15 days after the Joint Committee has convened pursuant to Article 42(3) or 45 days after the delivery of the request for a Joint Committee meeting, either Party may request in writing the establishment of an arbitration panel. 2.

2. The requesting Party shall state in the request the measure and indicate the provisions of the covered legal instruments that it considers relevant, and shall deliver the request to the other Party and to the Joint Committee.

Article 44

Appointment of arbitrators

1. The requesting Party shall notify the other Party of the appointment of an arbitrator, and propose up to 3 candidates to serve as a chair. The other Party must then appoint a second arbitrator within 15 days, and propose up to 3 candidates to serve as a chair.

2. Both Parties shall endeavour to agree on the chair within 15 days after the second arbitrator has been appointed.

3. The date of establishment of the arbitration panel shall be the date on which the chair is appointed.

4. If a Party fails to appoint its arbitrator pursuant to paragraph 1, such arbitrator shall be selected by lot from the candidates proposed. If the Parties are unable to agree on the chair within the time period referred to in paragraph 2, it shall be selected by lot within one week from the candidates proposed.

5. If an arbitrator dies, withdraws or is removed, a replacement shall be selected within 15 days in accordance with the selection procedure followed to select him or her. In such a case, any time period applicable to the arbitration panel proceeding shall be suspended for a period beginning on the date the arbitrator dies, withdraws or is removed and ending on the date the replacement is selected.

Article 45

Panel reports

1. The arbitration panel should, as a general rule, submit an initial report containing its findings and conclusions to the Parties not later than three months from the date of establishment of the arbitration panel. In no case should it do so later than five months from this date. Any Party may submit written comments to the arbitration panel on its initial report within 15 days of presentation of the report.

2. The arbitration panel shall present to the Parties a final report within 30 days of presentation of the initial report.

3. In cases of urgency, including those involving perishable goods, the arbitration panel shall make every effort to issue its final report to the Parties within three months from the date of establishment of the arbitration panel. In no case should it do so later than four months. The arbitration panel may give a preliminary ruling on whether a case is urgent.

4. All decisions of the arbitration panel, including the adoption of the final report and of any preliminary ruling, shall be taken by majority vote, each arbitrator having one vote.

5. The complaining Party may withdraw its complaint at any time before the final report has been issued. Such withdrawal is without prejudice to its right to introduce a new complaint regarding the same issue at a later point in time.

Article 46

Implementation of panel reports

1. Each Party shall be bound to take the measures involved in carrying out the final report referred to in Article 45(2).

2. The Party concerned shall inform the other Party within 30 days after the final report has been issued of its intentions in respect of its implementation.

3. The Parties shall endeavour to agree on the specific measures that are required for implementing the final report.

4. The Party concerned shall promptly comply with the final report. If it is impracticable to comply immediately, the Parties shall endeavour to agree on a reasonable period of time to do so. In the absence of such agreement, either Party may request the original arbitration panel to determine the length of the reasonable period of time, in light of the particular circumstances of the case. The ruling of the arbitration panel shall be given within 15 days from that request.

5. The Party concerned shall notify to the other Party the measures adopted in order to implement the final report before the expiry of the reasonable period of time determined in accordance with paragraph 4. Upon that notification, any of the Parties may request the original arbitration panel to rule on the conformity of those measures with the final report. The ruling of the arbitration panel shall be given within 60 days from that request.

6. If the Party concerned fails to notify the implementing measures before the expiry of the reasonable period of time determined in accordance with paragraph 4, or if the arbitration panel rules that the implementing measures notified by the Party concerned are inconsistent with the final report, such Party shall, if so requested by the complaining Party, enter into consultations with a view to agree on a mutually acceptable compensation. If no such agreement has been reached within 20 days from the request, the complaining Party shall be entitled to suspend only the application of benefits granted under the covered legal instruments equivalent to those affected by the measure found to violate the covered legal instruments.

7. In considering what benefits to suspend, a complaining Party should first seek to suspend benefits in the same sector or sectors as that affected by the measure that the panel has found to violate the covered legal instruments. A complaining Party that considers it is not practicable or effective to suspend benefits in the same sector or sectors may suspend benefits in other sectors.

8. The complaining Party shall notify the other Party of the benefits which it intends to suspend no later than 60 days before the date on which the suspension is due to take effect. Within 15 days from that notification, any of the Parties may request the original arbitration panel to rule on whether the benefits which the complaining Party intends to suspend are equivalent to those affected by the measure found to violate the covered legal instruments, and whether the proposed suspension is in accordance with paragraphs 6 and 7. The ruling of the arbitration panel shall be given within 45 days from that request. Benefits shall not be suspended until the arbitration Panel has issued its ruling.

9. The suspension of benefits shall be temporary and shall only be applied by the complaining Party until the measure found to violate the covered legal instruments has been withdrawn or amended so as to bring it into conformity with the covered legal instruments, or the Parties have reached agreement on a resolution of the dispute.

10. At the request of any of the Parties, the original arbitration panel shall rule on the conformity with the final report of any implementing measures adopted after the suspension of benefits and, in light of such ruling, whether the suspension of benefits should be terminated or modified. The ruling of the arbitration panel shall be given within 30 days from the date of that request.

11. The rulings provided for in paragraphs 4, 5, 8 and 10 shall be binding.

Article 47

General provisions

1. Any time period mentioned in this Title may be extended by mutual agreement of the Parties.

2. Unless the Parties otherwise agree, the arbitration panel proceedings shall be conducted in accordance with the Model Rules of Procedure set out in Annex XVI. The Joint Committee may amend the Model Rules of Procedure.

3. Arbitration proceedings established under this Title will not consider issues relating to each Party's rights and obligations under the Agreement establishing the World Trade Organisation (WTO).

4. Recourse to the dispute settlement provisions of this Title shall be without prejudice to any possible action in the WTO framework, including dispute settlement action. However, where a Party has, with regard to a particular matter, instituted a dispute settlement proceeding under either Article 43(1) of this Title or the WTO Agreement, it shall not institute a dispute settlement proceeding regarding the same matter under the other forum until such time as the first proceeding has ended. For purposes of this paragraph, dispute settlement proceedings under the WTO Agreement are deemed to be initiated by a Party's request for a panel under Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes of the WTO.

TITLE VII

SPECIFIC DUTIES OF THE JOINT COMMITTEE WITH RESPECT TO TRADE AND OTHER RELATED MATTERS

Article 48

1. The Joint Committee shall:

(a) supervise the implementation and proper operation of this Decision, as well as of any other decision concerning trade and other trade related matters;

(b) oversee the further elaboration of the provisions of this Decision;

(c) undertake consultations pursuant to Article 42 (2) and (3), to Articles 15, 16 and 23, and to the Joint Declarations to this Decision;

(d) carry out any functions assigned to it under this Decision or under any other decision concerning trade or trade related matters;

(e) assist the Joint Council in the performance of its functions regarding trade and other trade related matters;

(f) supervise the work of all the special committees established under this Decision; and

(g) report annually to the Joint Council.

2. The Joint Committee may:

(a) set up any special committees or bodies to deal with matters falling within its competence, and determine their composition and duties, and how they shall function;

(b) meet at any time by agreement of the Parties;

(c) consider any issues regarding trade and other trade related matters, and take appropriate action in the exercise of its functions; and

(d) take decisions or make recommendations on trade and other trade related matters, in accordance with Article 10(2) of the Interim Agreement.

3. When the Joint Committee meets in order to perform any of the tasks conferred upon it by this Decision, it shall be composed of representatives of the European Community and the Mexican government with a responsibility for trade and trade related matters, normally at senior civil servant level.

TITLE VIII

FINAL PROVISIONS

Article 49

Entry into force

This Decision shall enter into force on 1 July 2000 or on the first day of the month following that in which it is adopted by the Joint Council, whichever of these dates is the latest.

Article 50

The Annexes

The Annexes to this Decision, including the Appendixes to those Annexes, are an integral part thereof(7).

Done at Lisbon, 23 March 2000.

For the Joint Council

The President

J. Gama

(1) ex 1902 20 is "stuffed pasta containing more than 20 % by weight of fish, crustaceans, molluscs or other aquatic invertebrates"

(2) A tax conforming to the requirements of the first sentence shall be considered inconsistent with the provisions of the second sentence only in cases where competition is involved between, on the one hand, a taxed product and, on the other hand, a directly competitive or substitutable product which is not similarly taxed.

(3) The threshold value shall be calculated and adjusting according to the provisions set out in Annex X.

(4) The first exchange of information under paragraph 7 of Article 31 will take place two years after the entry into force of this Decision. In the meantime, the Parties will communicate to each other all available and comparable relevant data on a reciprocal basis.

(5) The Joint Council shall modify this provision taking into account the future revisions of the GPA or NAFTA.

(6) Where both Parties have adopted rules that allow a covered entity to derogate from procurement procedures if such entity intends to purchase exclusively to enable it to provide goods or services where other market participants are free to offer the same goods or services in the same geographical area and under substantially the same conditions, the parties shall review the wording of this provision accordingly. In case Article XXIV(b) of the GPA or Article 1023 of NAFTA is amended, the parties shall review the wording of this provision accordingly. The amended provision of the GPA or NAFTA shall not apply between the parties until it has been incorporated in accordance with this paragraph.

(7) These Annexes will be published in the Official Journal as soon as posssible.

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Joint Declarations I to XV of the Decision of the EC-Mexico Joint Council(1)

(1) Joint Declarations I to XI will be published in the Official Journal as soon as possible.

Joint Declaration XII concerning Articles 8 and 9 of the Decision

In drawing up the trade components of the Decision, the Parties have examined on a case-by-case basis the potential impact of export refund mechanisms on the process of trade liberalisation, therefore:

Notwithstanding Article 8 (Customs duties on imports originating in Mexico), the reductions in customs duties set out in that Article shall only apply to exports of Mexican origin to the Community not receiving export subsidies.

Notwithstanding Article 9 (Customs duties on imports originating in the Community), the reduction in customs duties set out in that Article for the products under Community tariff codes 1509 10, 1509 90, 1510 00, 1517 10, 1517 90 02, 1517 90 99, 2204 10, 2204 21, 2204 29, 2207, 2208 20, 2208 90 91, 2208 90 99, 2905 43, 2905 44, 3502 20, 3505 10 50, 3505 20, 3809 10 and 3824 60 shall only apply to exports of Community origin to Mexico not receiving export refunds as these are understood in the Community's export refund system as set out in Commission Regulation (EC) No 800/1999 of 15 April 1999.

Joint Declaration XIII concerning Article 15 of the Decision

The Community and Mexico shall only apply safeguard measures between themselves in accordance with the provisions of this Decision.

Joint Declaration XIV concerning alternative dispute resolution

1. The Parties shall, to the maximum extent possible, encourage, and facilitate the use of arbitration and other means of alternative dispute resolution of the settlement of international commercial disputes between private parties in the free trade area.

2. The Parties confirm the importance they attach to the 1958 United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

Joint Declaration XV by the Community and Mexico

The Community and Mexico confirm that references in this Decision to a Party, apply, with respect to the Community, to the outermost regions, which are part of its territory.

Annexes to Decision No 2/2000 of the EC-Mexico Joint Council

of 23 March 2000(1)

(1) OJ L 157, 30.6.2000, p. 10.

ANNEX I

TARIF ELIMINATION SCHEDULE OF THE COMMUNITY

(Referred to in Article 3)

SECTION A

Tariff - Quota concessions for products under category 6 in accordance with Article 8 of the Decision

The following tariff concessions shall apply each year after the date of entry into force of the Decision to imports into to the Community of products originating in Mexico:

1. The Community shall allow the importation of a quantity of 300 tonnes of products originating in Mexico classified in item 0407 00 19 with a preferential customs duty no greater than 50 % of the lower of:

(a) the most-favoured-nation (as this term is understood in the GATT 1994, hereinafter "MFN") customs duty applicable at the time of importation; or

(b) the generalised system of preferences (as this term is understood in the relevant Community legislation, hereinafter "GSP") customs duty applicable at the time of importation to imports from Mexico of such products.

The preferential treatment established in this paragraph shall apply only to specific patogenous free eggs.

2. The Community shall allow the importation of an aggregate quantity of 1000 tonnes (shell egg equivalent) of products originating in Mexico classified in items 0408 11 80, 0408 19 81, 0408 19 89, 0408 91 80 and 0408 99 80, with a preferential customs duty no greater than 50 % of the lower of:

(a) the MFN customs duty applicable at the time of importation; or

(b) the GSP customs duty applicable at the time of importation to imports from Mexico of such products.

3. The Community shall allow the importation of a quantity of 30000 tonnes of products originating in Mexico classified in item 0409 00 00, with a preferential customs duty no greater than 50 % of the lower of:

(a) the MFN customs duty applicable at the time of importation; or

(b) the GSP customs duty applicable at the time of importation to imports from Mexico of such products.

4. The Community shall allow the importation of an aggregate quantity of 350 tonnes of products originating in Mexico classified in items 0603 10 11, 0603 10 13, 0603 10 15, 0603 10 21 and 0603 10 25. For this quantity, the customs duty shall be 0 % ad valorem as from the entry into force of the Decision.

5. The Community shall allow the importation of a quantity of 400 tonnes of products originating in Mexico classified in item 0603 10 29. For this quantity, the customs duty shall be 0 % ad valorem as from the entry into force of the Decision.

6. The Community shall allow the importation of an aggregate quantity of 350 tonnes of products originating in Mexico classified in items 0603 10 51, 0603 10 53, 0603 10 55, 0603 10 61 and 0603 10 65. For this quantity, the customs duty shall be 0 % ad valorem as from the entry into force of the Decision.

7. The Community shall allow the importation of a quantity of 400 tonnes of products originating in Mexico classified in item 0603 10 69. For this quantity, the customs duty shall be 0 % ad valorem as from the entry into force of the Decision.

8. The Community shall allow the importation of a quantity of 600 tonnes of products originating in Mexico classified in item 0709 20 00. For this quantity, the customs duty shall be 0 % ad valorem as from the entry into force of the Decision. The preferential treatment established in this paragraph shall apply only to products imported into the Community after the last day of February and before 1 December of each calendar year.

9. The Community shall allow the importation of a quantity of 500 tonnes of products originating in Mexico classified in item 0710 21 00, with a preferential customs duty no greater than 50 % of the lower of:

(a) the MFN customs duty applicable at the time of importation; or

(b) the GSP customs duty applicable at the time of importation to imports from Mexico of such products.

10. The Community shall allow the importation of a quantity of 1000 tonnes of products originating in Mexico classified in item 0807 19 00, with a preferential customs duty no greater than 50 % of the lower of:

(a) the MFN customs duty applicable at the time of importation; or

(b) the GSP customs duty applicable at the time of importation to imports from Mexico of such products.

The preferential treatment established in this paragraph shall apply only to products imported into the Community during the months of January, April, May, October, November and December of each calendar year,

11. The Community shall allow the importation of a quantity of 1000 tonnes of products originating in Mexico classified in item 0811 10 90, with a preferential customs duty no greater than 50 % of the lower of:

(a) the MFN customs duty applicable at the time of importation; or

(b) the GSP customs duty applicable at the time of importation to imports from Mexico of such products.

12. The Community shall allow the importation of a quantity of 2000 tonnes of products originating in Mexico classified in item 1604 14 11, 1604 14 18, 1604 14 90, 1604 19 39 and 1604 20 70, with a preferential customs duty no greater than 33,33 % of the lower of:

(a) the MFN customs duty applicable at the time of importation; or

(b) the GSP customs duty applicable at the time of importation to imports from Mexico of such products.

The quota established in this paragraph shall grow by 500 tonnes each year. This quota shall be reviewd in accordance with Article 10 of the Decision.

13. The Community shall allow the importation of a quantity of 275000 tonnes of products originating in Mexico classified in item 1703 10 00. For this quantity, the customs duty shall be 0 % ad valorem as from the entry into force of the Decision.

14. The Community shall allow the importation of a quantity of 1000 tonnes of products originating in Mexico classified in item 2005 60 00, with a preferential customs duty no greater than 50 % of the lower of:

(a) the MFN customs duty applicable at the time of importation; or

(b) the GSP customs duty applicable at the time of importation to imports from Mexico of such products.

15. The Community shall allow the importation of an aggregate quantity of 1500 tonnes of products originating in Mexico classified in items 2008 92 51, 2008 92 74, 2008 92 92, 2008 92 93, 2008 92 94, 2008 92 96, 2008 92 97 and 2008 92 98, with a preferential customs duty no greater than 50 % of the lower of:

(a) the MFN customs duty applicable at the time of importation; or

(b) the GSP customs duty applicable at the time of importation to imports from Mexico of such products.

16. The Community shall allow the importation of an aggregate quantity of 1000 metric tonnes of products originating in Mexico classified in items 2009 11 11, 2009 11 19, 2009 11 91, 2009 19 11, 2009 19 19, 2008 19 91 and 2009 19 99, with a preferential customs duty no greater than 50 % of the lower of:

(a) the MFN customs duty applicable at the time of importation; or

(b) the GSP customs duty applicable at the time of importation to imports from Mexico of such products.

17. The Community shall allow the importation of a quantity of 30000 tonnes of products originating in Mexico classified in item 2009 11 99, with a preferential customs duty no greater than 25 % of the lower of:

(a) the MFN customs duty applicable at the time of importation; or

(b) the GSP customs duty applicable at the time of importation to imports from Mexico of such products.

The preferential treatment established in this paragraph shall apply only to products with a degree of concentration higher than 20 brix (with a density exceeding 1,083 grams per cubic centimetre at 20 °C).

18. The Community shall allow the importation of an aggregate quantity of 2500 tonnes of products originating in Mexico classified in items 2009 40 11, 2009 40 19, 2009 40 30, 2009 40 91 and 2009 40 99 with a preferential customs duty no greater than 50 % of the lower of:

(a) the MFN customs duty applicable at the time of importation; or

(b) the GSP customs duty applicable at the time of importation to imports from Mexico of such products.

19. The Community shall allow the importation of an aggregate quantity of 3000 tonnes (shell egg equivalent) of products originating in Mexico classified in items 3502 11 90 and 3502 19 90. For this quantity, the customs duty shall be 0 % ad valorem as from the entry into force of the Decision.

SECTION B

Tariff concessions for products under category 7 in accordance with Article 8 of the Decision

The following tariff concessions shall apply each year after the date of entry into force of the Decision to imports into the Community of products originating in Mexico:

1. For imports into the Community of products originating in Mexico classified in items 0403 10 51, 0403 10 53, 0403 10 59, 0403 10 91, 0403 10 93, 0403 10 99, 0403 90 71, 0403 90 73, 0403 90 79, 0403 90 91, 0403 90 93 and 0403 90 99 the Community shall not apply any MFN or GSP customs duty expressed in ad valorem terms, but may apply the MFN or GSP customs duty expressed in specific terms applicable at the time of importation to imports of such products from Mexico.

2. For imports into the Community of products originating in Mexico classified in items 1517 10 10 and 1517 90 10 the Community shall not apply any MFN or GSP customs duty expressed in ad valorem terms, but may apply the MFN or GSP customs duty expressed in specific terms applicable at the time of importation to imports of such products from Mexico.

3. The Community shall allow the importation of an aggregate quantity of 1000 tonnes of products originating in Mexico classified in items 1704 10 11, 1704 10 19, 1704 10 91 and 1704 10 99 with a preferential customs duty that shall be no greater than 6 per cent ad valorem. For imports into the Community of products originating in Mexico referred to in this paragraph which are not imported unter the tariff quota established in this paragraph, the Community shall not apply any MFN or GSP customs duty expressed in ad valorem terms, but may apply the MFN or GSP customs duty expressed in specific terms applicable at the time of importation to imports of such products from Mexico.

4. For imports into the Community of products originating in Mexico classified in items 1704 90 10, 1704 90 30, 1704 90 51, 1704 90 55, 1704 90 61, 1704 90 65, 1704 90 71, 1704 90 75, 1704 90 81 and 1704 90 99, the Community shall not apply any MFN or GSP customs duty expressed in ad valorem terms, but may apply the MFN or GSP customs duty expressed in specific terms applicable at the time of importation to imports of such products from Mexico.

5. For imports into the Community of products originating in Mexico classified in items 1901 20 00, 1901 90 11, 1901 90 19, 1904 10 10, 1904 10 30, 1904 10 90, 1904 20 91, 1905 90 10 and 1905 90 20, the Community shall not apply any MFN or GSP customs duty expressed in ad valorem terms but may apply the MFN or GSP customs duty expressed in specific terms applicable at the time of importation to imports of such products from Mexico.

6. The Community shall allow the importation of products originating in Mexico classified in item 2101 12 92 with a preferential customs duty no greater than 50 % of the lower of the MFN or GSP cutstoms duty applicable at the time of importation to imports from Mexico of such products.

7. For imports into the Community of products originating in Mexico classified in items 2101 12 98 and 2101 20 98, the Community shall not apply any MFN or GSP customs duty expressed in ad valorem terms, but may apply the MFN or GSP customs duty expressed in specific terms applicable at the time of importation to imports of such products from Mexico.

8. The Community shall allow the importation of products originating in Mexico classified in items 2102 10 10, 2102 10 31, 2102 10 39, 2102 10 90 and 2102 20 11 with a preferential customs duty no greater than 50 % of the lower of the MFN or GSP customs duty applicable at the time of importation to imports from Mexico of such products.

9. For imports into the Community of products originating in Mexico clasified in item 3302 10 29, the Community shall not apply any MFN or GSP customs duty expressed in ad valorem terms, but may apply the MFN or GSP customs duty expressed in specific terms applicable at the time of importation to imports of such products from Mexico.

10. Tariff concessions on products under category 7 not specified in paragraphs 1 to 9 shall be considered in accordance with the relevant provisions of Article 8 of the Decision.

SECTION C

Notes

(1) Each year from the date of entry into force of the Decision until eight years thereafter, the Community shall alow the importation of a quantity of 20000 tonnes of products originating in Mexico classified under this item (ex 0804 40 90). For this quantity, the customs duty shall be 0 % ad valorem as from the entry into force of the Decision. The preferential treatment established in this paragraph shall apply only to products imported into the Community during the months of June, July, August and September of each calendar year.

(2) For vehicles classified under these items with a weight per vehicle less than 8864 kilograms, the basic customs duty to which the successive reductions are to be applied pursuant to this Annex shall be 4,4 % ad valorem.

TARIFF ELIMINATION SCHEDULE OF THE COMMUNITY

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ANNEX II

TARIFF ELIMINATION SCHEDULE OF MEXICO

(referred to in Article 3)

SECTION A

Tariff - Quota concessions for products under category 6 in accordance with Article 8 of the Decision

The following tariff concessions shall apply each year after the date of entry into force of the Decision to imports into Mexico of products originating in the Community:

Mexico shall allow the importation of an aggregate quantity of 2000 tonnes of products originating in the Community classified under items 1604 14 01 and 1604 14 99, as well as processed tuna classified under items 1604 19 99 and 1604 20 99 with a preferential customs duty no greater than 33,33 % of the MFN customs duty applicable at the time of importation. The quota established in this paragraph shall grow by 500 tonnes each year. This quota shall be reviewed in accordance with Article 10 of the Decision. The quota established in this paragraph shall not apply to tuna loins and skipjack loins classified under items 1604 14 01, 1604 14 99, 1604 19 99 and 1604 20 99.

SECTION B

Tariff concessions for products under category 7 in accordance with Article 9 of the Decision

The following tariff concessions shall apply each year after the date of entry into force of the Decision to imports into Mexico of products originating in the Community:

1. Mexico shall allow the importation of products originating in the Community classified in items 1704 10 01 and 1704 90 99, with a preferential customs duty no greater than 16 % ad valorem, plus 0,39586 United States dollars/kg of content of sugar.

2. Mexico shall allow the importation of products originating in the Community classified in items 2904 44 01 and 3824 60 01, with a preferential customs duty no greater than 50 % of the MFN customs duty applicable at the time of importation to imports from the Community of such products.

3. Tariff concessions on products in category "7" not specified in paragraphs 1 and 2 shall be considered in accordance with the relevant provisions of Article 9.

SECTION C

Automotive tariff quota

1. Tariff quota

1.1. From the entry into force of the Decision, Mexico shall apply a tariff quota on imports of motor vehicles listed in paragraph 5 originating in the Community. The tariff quota shall be fixed in units.

1.2. The minimum size of the tariff quota shall be:

(i) for each year until 31 December 2003, a quantity equivalent to 14 % of the total number of motor vehicles listed in paragraph 5 sold in Mexico during the previous year;

(ii) for each year until 31 December 2004 until 31 December 2006, a quantity equivalent to 15 % of the total number of motor vehicles listed in paragraph 5 sold in Mexico during the previous year;

2. Preferential customs duties

2.1. The preferential customs duty applicable on imports into Mexico of motor vehicles listed in paragraph 5 originating in the Community under the atiff quota shall be:

(i) 3,3 % ad valorem from the date of entry into force the Decision until 31 December 2000;

(ii) 2,2 % ad valorem from 1 January 2001 until 31 December 2001;

(iii) 1,1 % ad valorem from 1 January 2002 until 31 December 2002; and

(iv) these customs duties shall be completely eliminated by 1 January 2003.

2.2. The preferential customs duty applicable on imports into Mexico of motor vehicles listed in paragraph 5 originating in the Community which are not imported under the tariff quota shall be no greater than 10 % ad valorem from the date of entry into force of this Decision until 31 December 2006.

2.3. Customs duties on imports into Mexico of motor vehicles listed in paragraph 5 originating in the Community shall be completely eliminated by 1 January 2007.

3. Quota management

3.1. The tariff quota shall be managed by Mexico in accordance with one of the following methods or any combination thereof:

(i) method based on the chronological order of the filing of applications (i.e. the "first come, first served" method);

(ii) method of distribution in proportion to the quantities requested when the applications were filed (i.e. the "simultaneous examination" method);

(iii) method based on taking traditional trade patterns into account (i.e. the "traditional importers/new arrivals" method).

3.2. Until 31 December 2003, Mexico may reserve part of the tariff quota for manufacturers established in Mexico which comply with the provisions of the Decreto para el Fomento y Modernización de la Industria Automotriz of 11 December 1989, and its amendments of 31 May 1995, provided that at least an amount equivalent to 4 % of the total sales in Mexico is offered first to other operators.

3.3. Notwithstanding paragraph 3.1, any share of the tariff quota reserved for the manufacturers in accordance with paragraph 3.2 shall be allocated on a non-discriminatory basis among all such manufacturers according to the quantity of motor vehicles listed in paragraph 5 manufactured by each each of them in Mexico during the previous year.

3.4. Any method or combination of methods chosen to manage the tariff quota shall allow the full utilisation of the tariff quota and avoid any discrimination between the operators concerned.

4. General provisions

4.1. The Joint Committee may modifiy the provisions regarding the management of the tariff quota.

4.2. Mexico shall communicate to the European Commission the detailed rules adopted for the management of the tariff quota, and detailed information on each allocation.

4.3. The Parties shall hold consultations on a regular basis, but at least once a year. On the request of either Party, they shall meet immediately.

5. Product coverage

Motor vehicles classified under headings 8703 and 8706 of the Harmonised System, and under headings 8702, 8704 and 8705 of the Harmonised System with a weight of less than 8864 kg, as specified in notes 3 and 4 of this Annex.

SECTION D

Notes

(1) Customs duties on imports into Mexico of products originationg in the Community classified under these tariff items shall be no greater than 8 % ad valorem as of the day of entry into force of the Decision until 31 December 2002, and these customs duties shall be completely eliminated by 1 January 2003.

(2) Customs duties on imports into Mexico of products originating in the Community classified under these tariff items shall be no greater than:

(a) 5 % ad valorem as of the day of entry into force of the Decision until 31 December 2003;

(b) 4 % ad valorem as of 1 January 2004 until 31 December 2005; and

(c) 3 % ad valorem as of 1 January 2006 until 31 December 2006.

These customs duties shall be completely eliminated by 1 January 2007.

(3) For products imported into Mexico originating in the Community which are classified under these items, Section C shall apply only to vehicles that weigh less than 8864 kg.

(4) For products imported into Mexico originating in the Community which are classified under these items, Section C shall apply.

(5) Notwithstanding paragraph 4 Article 6, between 1 January 2002 and 31 December 2006, the customs duty applicable to imports of products originating in the Community classified under this item shall be 10 % ad valorem for as long as bilateral trade between the United States and Mexico remains subject to customs duties. This customs duty shall be completely eliminated no later than 1 January 2007.

TARIF ELIMINATION SCHEDULE OF MEXICO

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ANNEX III

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

(Referred to in Article 3)

TITLE I

GENERAL PROVISIONS

Article 1

Definitions

For the purposes of this Annex:

(a) "manufacture": means any kind of working or processing, including assembly or specific operations;

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

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

(d) "goods": means both materials and products;

(e) "non-originating goods": means products or materials which do not qualify as originating under this Annex;

(f) "customs value": means the calculated value determined in accordance with the Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (WTO Agreement on Customs Valuation);

(g) "ex-works price": means the price paid for the product ex-works to the manufacturer in Mexico or the Community in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used, minus any internal taxes returned or repaid when the product obtained is exported;

(h) "value of materials": means the customs value at the time of importation of the non-originating materials used, or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in Mexico or the Community;

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

(j) "chapters" and "headings": means the chapters and the headings (four-digit codes) used in the nomenclature of the Harmonised System;

(k) "classified": refers to the classification of a product or material under a particular heading;

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

(m) "Parties": means the United Mexican States (Mexico) and the European Community (Community);

(n) "territories": includes territorial waters;

(o) "Harmonised System": means the Harmonised commodity description and coding system in force, including its general rules and legal notes of section, chapter, heading and subheading, as adopted by the Parties in their respective laws;

(p) "competent governmental authority": means in the case of Mexico, the designated authority within the "Secretaría de Comercio y Fomento Industrial" (Ministry of Trade and Industrial Development), or its successor.

TITLE II

DEFINITION OF THE CONCEPT "ORIGINATING PRODUCTS"

Article 2

General requirements

1. For the purpose of this Decision, the following products shall be considered as originating in the Community:

(a) products wholly obtained in the Community within the meaning of Article 4;

(b) products obtained in the Community incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in the Community within the meaning of Article 5.

2. For the purpose of this Decision, the following products shall be considered as originating in Mexico:

(a) products wholly obtained in Mexico within the meaning of Article 4;

(b) products obtained in Mexico incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in Mexico within the meaning of Article 5.

Article 3

Bilateral cumulation of origin

1. Materials originating in the Community shall be considered as materials originating in Mexico when incorporated into a product obtained there. It shall not be necessary that such materials have undergone sufficient working or processing, provided they have undergone working or processing going beyond that referred to in Article 6(1).

2. Materials originating in Mexico shall be considered as materials originating in the Community when incorporated into a product obtained there. It shall not be necessary that such materials have undergone sufficient working or processing, provided they have undergone working or processing going beyond that referred to in Article 6(1).

Article 4

Wholly obtained products

1. The following shall be considered as wholly obtained in the Community or Mexico:

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

(b) vegetable products harvested there;

(c) live animals born and raised there;

(d) products from live animals raised there;

(e) products obtained by hunting or fishing conducted there;

(f) products of sea fishing and other products taken from the sea outside the territorial waters of the Community or Mexico by their vessels;

(g) products manufactured aboard their factory ships, exclusively from products referred to in subparagraph (f);

(h) used articles collected there fit only for the recovery of raw materials, including used tyres fit only for retreading or for use as waste, provided that these articles are under the supervision of the customs authorities of the importing country;

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

(j) products extracted from the seabed or beneath the seabed outside their territorial waters, provided that they have sole rights to exploit such seabed;

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

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

(a) which are registered or recorded in Mexico or in a Member State of the Community;

(b) which sail under the flag of Mexico or of a Member State of the Community;

(c) which are owned to an extent of at least 50 % by nationals of a Member States of the Community or of Mexico, or by a company with its head office in one of the Member States of the Community or Mexico, of which the manager or managers, chairman of the board of directors or the supervisory board, and the majority of the members of such boards are nationals of Member States of the Community or of Mexico and of which, in addition, in the case of partnerships or limited companies, at least half the capital belongs to those States or Mexico or to public bodies or nationals(1) of the Member States of the Community or of Mexico;

(d) of which the master and officers are nationals of Member States of the Community or of Mexico;

(e) of which at least 75 % of the crew are nationals of Member States of the Community or of Mexico.

Article 5

Sufficiently worked or processed products

1. For the purposes of Article 2, products which are not wholly obtained are considered to be sufficiently worked or processed when the conditions set out in Appendix II are fulfilled.

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

2. Notwithstanding paragraph 1, the products which are not wholly obtained and which are listed in Appendix II(a) shall be considered to be sufficiently worked or processed, for the purposes of Article 2, when the conditions set out in the list in that Appendix are fulfilled.

The provisions of this paragraph shall apply for the periods or to the products listed in Appendix II(a).

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

(a) their total value does not exceed 10 % of the ex-works price of the product;

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

This paragraph shall not apply to products falling within Chapters 50 to 63 of the Harmonised System. Appendix I shall apply to these products.

4. Paragraphs 1 to 3 shall apply except as provided in Article 6.

Article 6

Insufficient working or processing operations

1. Notwithstanding paragraph 2, the following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 5 are satisfied:

(a) operations to ensure the preservation of products in good condition during transport and storage (ventilation, spreading out, drying, freezing, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations);

(b) dilution with water or another substance that does not materially alter the characteristics of the product;

(c) simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making-up of sets of articles), washing, painting, husking or unshelling, removing of grains and cutting up;

(d) (i) changes of packaging and breaking up and assembly of packages,

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

(e) affixing marks, labels and other like distinguishing signs on products or their packaging;

(f) cleaning, including the removal of oxide, oil, paint or other coverings;

(g) simple mixing of products, whether or not of different kinds, where one or more components of the mixtures do not meet the conditions laid down in Appendix II to enable them to be considered as originating in the Community or Mexico;

(h) simple assembly of parts to constitute a complete product;

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

(j) slaughter of animals.

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

Article 7

Unit of qualification

1. 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 nomenclature of the Harmonised System.

Accordingly, it follows that:

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

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

2. 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 8

Accounting segregation

1. Where there is considerable cost involved in keeping separate stocks of originating and non-originating materials which are identical and interchangeable, the competent governmental authority or the customs authorities may, at the written request of those concerned, authorise the "accounting segregation" method to be used for managing such stocks.

2. This method must be able to ensure that, for a specific reference period, the number of products obtained which could be considered as "originating" is the same as that which would have been obtained if there had been physical segregation of the stocks.

3. This method shall be recorded and maintained in accordance with the general accepted accounting principles applicable in the territory of the Party in which the product is manufactured.

4. The competent governmental authority or the customs authorities may grant such authorisation, subject to any conditions deemed appropriate.

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

6. The competent governmental authority or the customs authorities shall monitor the use made of the authorisation and may withdraw it at any time whenever the beneficiary makes improper use of the authorisation in any manner whatsoever or fails to fulfil any of the other conditions laid down in this Annex.

Article 9

Accessories, spare parts and tools

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

Article 10

Sets

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

Article 11

Neutral elements

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

(a) energy and fuel;

(b) plant and equipment, including goods to be used for their maintenance;

(c) machines, tools, dies and moulds;

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

TITLE III

TERRITORIAL REQUIREMENTS

Article 12

Principle of territoriality

1. The conditions set out in Title II relative to the acquisition of originating status must be fulfilled without interruption in Mexico or the Community.

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

(a) the goods returned are the same goods as those exported;

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

Article 13

Direct transport

1. The preferential treatment provided for under this Decision applies only to products satisfying the requirements of this Annex, which are transported directly between Mexico and the Community. However, products constituting one single consignment may be transported through other territories with, should the occasion arise, transhipment or temporary warehousing in such territories, provided that they remain under the surveillance of the customs authorities in the country of transit or warehousing and do not undergo operations other than unloading, reloading or any operation designed to preserve them in good condition.

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

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

(b) a certificate issued by the customs authorities of the country of transit:

(i) giving an exact description of the products,

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

(iii) certifying the conditions under which the products remained in the transit country, or

(c) failing these, any other substantiating documents.

TITLE IV

DRAWBACK OR EXEMPTION

Article 14

Prohibition of drawback of, or exemption from, import duties

1. Non-originating materials, used in the manufacture of products originating in the Community or in Mexico within the meaning of this Annex for which a proof of origin is issued or made out in accordance with the provisions of Title V shall not be subject in the Community or Mexico to drawback of, or exemption from, import duties.

2. For the purpose of this Article, the term "import duties" shall include customs duties, as defined in Article 3(8) of the Decision, and anti-dumping and countervailing duties applied in conformity with Article 14 of the Decision.

3. The prohibition in paragraph 1 shall apply to any arrangement for refund, remission or non-payment, partial or complete, of import duties applicable in the Community or Mexico to materials used in the manufacture, where such refund, remission or non-payment applies, expressly or in effect, when products obtained from the said materials are exported and not when they are retained for home use there(2).

4. The exporter of products covered by a proof of origin shall be prepared to submit at any time, on request from the customs authorities, all appropriate documents proving that no drawback has been obtained in respect of the non-originating materials used in the manufacture of the products concerned and that all import duties applicable to such materials have actually been paid.

5. The provisions of paragraphs 1 to 3 shall apply also to the packaging within the meaning of Article 7(2), accessories, spare parts and tools within the meaning of Article 9 and products in a set within the meaning of Article 10, when such items are non-originating.

6. The provisions of paragraphs 1 to 4 shall apply only to exported products which benefit from any preferential tariff treatment in the other Party. Furthermore, they shall not preclude the application of an export-refund system for agricultural products.

7. This Article shall apply from 1 January 2003.

TITLE V

PROOF OF ORIGIN

Article 15

General requirements

1. Products originating in the Community shall, on importation into Mexico and products originating in Mexico shall, on importation into the Community benefit from this Decision on submission of either:

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

(b) in the cases specified in Article 20(1), a declaration, the text of which appears in Appendix IV, given by the exporter on an invoice, a delivery note or any other commercial document which describes the products concerned in sufficient detail to enable them to be identified (hereinafter referred to as the "invoice declaration").

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

Article 16

Procedure for the issue of an EUR.1 movement certificate

1. An EUR.1 movement certificate shall be issued by the customs authorities or the competent governmental authority of the exporting country on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorised representative.

2. For this purpose, the exporter or his authorised representative shall fill out both the EUR.1 movement certificate and the application form, specimens of which appear in Appendix III. These forms shall be completed in one of the languages in which this Decision is drawn up and in accordance with the provisions of the domestic law of the exporting country. If they are handwritten, 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 lines blank. Where the box is not completely filled, a horizontal line must be drawn below the last line of the description and the empty space must be crossed through.

3. The exporter applying for the issue of an EUR.1 movement certificate shall be prepared to submit at any time, at the request of the customs authorities or the competent governmental authority of the exporting country where the EUR.1 movement certificate 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.

4. An EUR.1 movement certificate shall be issued by the customs authorities or competent governmental authority if the products concerned can be considered as products originating in Mexico or the Community and fulfil the other requirements of this Annex.

5. The issuing customs authorities or the competent governmental authority 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 request any evidence and to carry out any inspection of the exporter's accounts or any other check considered appropriate. The issuing customs authorities or competent governmental authority 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.

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

7. An EUR.1 movement certificate shall be issued by the customs authority or the competent governmental authority and made available to the exporter as soon as actual exportation has been effected or ensured.

Article 17

EUR.1 movement certificates issued retrospectively

1. Notwithstanding Article 16(7), an EUR.1 movement certificate may exceptionally be issued after exportation of the products to which it relates if:

(a) it was not issued at the time of exportation because of errors or involuntary omissions or special circumstances, or

(b) it is demonstrated to the satisfaction of the customs authorities or the competent governmental authority that an EUR.1 movement certificate was issued but was not accepted at importation for technical reasons.

2. 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 EUR.1 movement certificate relates, and state the reasons for his request.

3. The customs authorities or the competent governmental authority may issue an EUR.1 movement certificate retrospectively only after verifying that the information supplied in the exporter's application agrees with that in the corresponding file, and will be accepted by the customs authority of the importing country, in accordance with the domestic law of each Party, as set out under Appendix V.

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

"NACHTRÄGLICH AUSGESTELLT", "DÉLIVRÉ A POSTERIORI", "RILASCIATO A POSTERIORI", "AFGEGEVEN A POSTERIORI", "ISSUED RETROSPECTIVELY", "UDSTEDT EFTERFØLGENDE", "ΕΚΔΟΘΕΝ ΕΚ ΤΩΝ ΥΣΤΕΡΩΝ", "EXPEDIDO A POSTERIORI", "EMITIDO A POSTERIORI", "ANNETTU JÄLKIKÄTEEN", "UTFÄRDAT I EFTERHAND".

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

Article 18

Issue of a duplicate EUR.1 movement certificate

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

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

"DUPLIKAT", "DUPLICATA", "DUPLICATO", "DUPLICAAT", "DUPLICATE", "ΑΝΤΙΓΡΑΦΟ", "DUPLICADO", "SEGUNDA VIA", "KAKSOISKAPPALE".

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

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

Article 19

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

1. It shall at any time be possible to replace one or more EUR.1 movement certificates by one or more other certificates provided that this is done by the customs office or the competent governmental authority responsible for controlling the goods.

2. The replacement certificate shall be regarded as a definitive EUR.1 movement certificate for the purpose of the application of this Annex, including the provisions of this Article.

3. The replacement certificate shall be issued on the basis of a written request from the re-exporter, after the authorities concerned have verified the information supplied in the applicant's request.

Article 20

Conditions for making out an invoice declaration

1. An invoice declaration as referred to in Article 15(1)(b) may be made out:

(a) by an approved exporter within the meaning of Article 21, or

(b) by any exporter for any consignment consisting of one or more packages containing originating products whose total value does not exceed EUR 6000.

2. An invoice declaration may be made out if the products concerned can be considered as products originating in Mexico or the Community and fulfil the other requirements of this Annex.

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

4. 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 IV, using one of the linguistic versions set out in that Appendix and in accordance with the provisions of the domestic law of the exporting country. If the declaration is handwritten, it shall be written in ink in printed characters.

5. Invoice declarations shall bear the original signature of the exporter in manuscript. However, an approved exporter within the meaning of Article 21 shall not be required to sign such declarations provided that he gives the customs authorities or the competent governmental authority 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.

6. 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 to the customs authority of the importing country no longer than the period established in the domestic law of each Party, as set out under Appendix V.

Article 21

Approved exporter

1. The customs authorities or the competent governmental authority of the exporting country may authorise any exporter who makes frequent shipments of products under this Decision to make out invoice declarations irrespective of the value of the products concerned. An exporter seeking such authorisation must offer to the satisfaction of the customs authorities or the competent governmental authority all guarantees necessary to verify the originating status of the products as well as the fulfilment of the other requirements of this Annex.

2. The customs authorities or the competent governmental authority may grant the status of approved exporter subject to any conditions which they consider appropriate.

3. The customs authorities or the competent governmental authority shall grant to the approved exporter an authorisation number which shall appear on the invoice declaration.

4. The customs authorities or the competent governmental authority shall monitor the use of the authorisation by the approved exporter.

5. The customs authorities or the competent governmental authority 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 22

Validity of proof of origin

1. A proof of origin shall be valid for 10 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.

2. 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.

3. 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 23

Submission of proof of origin

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

Article 24

Import by instalments

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

Article 25

Exemptions from proof of origin

1. Products sent as small packages from private persons to private persons or forming part of travellers' personal luggage shall be admitted as originating products without requiring the submission of a proof of origin, provided that such products are not imported by way of trade and have been declared as meeting the requirements of this 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 customs declaration CN22/CN23 or on a sheet of paper annexed to that document.

2. 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 intended.

3. Furthermore, the total value of these products shall not exceed EUR 500 in the case of small packages or EUR 1200 in the case of products forming part of travellers' personal luggage.

Article 26

Supporting documents

The documents referred to in Articles 16(3) and 20(3) used for the purpose of proving that products covered by an EUR.1 movement certificate or an invoice declaration can be considered as products originating in Mexico or the Community and fulfil the other requirements of this Annex may consist of inter alia:

(a) 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;

(b) documents proving the originating status of materials used, issued or made out in Mexico or the Community where these documents are used, as it shall be provided in its domestic law;

(c) documents proving the working or processing of materials in Mexico or the Community, issued or made out in Mexico or the Community where these documents are used, as it shall be provided in its domestic law; or

(d) EUR.1 movement certificates or invoice declarations proving the originating status of materials used, issued or made out in Mexico or the Community in accordance with this Annex.

Article 27

Preservation of proof of origin and supporting documents

1. The exporter applying for the issue of an EUR.1 movement certificate shall keep for at least three years the documents referred to in Article 16(3).

2. 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 20(3).

3. The customs authorities or the competent governmental authority of the exporting country issuing an EUR.1 movement certificate shall keep for at least three years the application form referred to in Article 16(2).

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

Article 28

Discrepancies and formal errors

1. 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.

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

Article 29

Amounts expressed in euro

1. Amounts in the national currency of the exporting country equivalent to the amounts expressed in euro in this Annex shall be fixed by the exporting country and communicated to importing countries through the European Commission.

2. When the amounts exceed the corresponding amounts fixed by the importing country, the latter shall accept them if the products are invoiced in the currency of the exporting country. When the products are invoiced in the currency of another Member State of the Community or of Mexico, the importing country shall recognise the amount notified by the country concerned.

3. The amounts to be used in any given national currency shall be the equivalent in that national currency of the amounts expressed in euro as at the first working day of June 2000.

4. The amounts expressed in euro in this Annex and their equivalents in the national currencies of the Member States of the Community and Mexico shall be reviewed by the Joint Committee at the request of Mexico or the Community. When carrying out this review, the Joint Committee shall ensure that there will be no decrease in the amounts to be used in any national currency and shall furthermore consider the desirability of preserving the effects of the limits concerned in real terms. For this purpose, it may decide to modify the amounts expressed in euro in this Annex.

TITLE VI

ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

Article 30

Mutual assistance

1. The customs authorities of Mexico and the Members States of the Community or the competent governmental authority of Mexico shall provide each other, through the European Commission, with specimen impressions of stamps used in their customs offices for the issue of EUR.1 movement certificates and with the addresses of the customs authorities or the competent governmental authority responsible for verifying those certificates and invoice declarations.

2. In order to ensure the proper application of this Annex, Mexico and the Community shall assist each other, through their respective administrations, to verify the authenticity of the EUR.1 movement certificates or the invoice declarations and the correctness of the information given in these documents.

Article 31

Verification of proofs of origin

1. 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.

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

3. The verification shall be carried out by the customs authorities or the competent governmental authority 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.

4. 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.

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

6. If in cases of reasonable doubts there is no reply within 10 months of the date of the verification request or if the reply does not contain sufficient information to determine the authenticity of the document in question or the real origin of the products, the requesting customs authorities are entitled, save in exceptional circumstances, to refuse to grant preferential treatment.

Article 32

Dispute settlement

1. Disputes arising in relation to the verification procedures pursuant to Article 31 which cannot be settled between the customs authorities requesting a verification and the customs authorities or the competent governmental authority responsible for carrying out such verification, or which raise a question as to the interpretation of this Annex shall be submitted to the Special Committee on Customs Cooperation and Rules of Origin.

2. Disputes between the importer and the customs authorities of the importing country shall be governed by the legislation of that country.

Article 33

Confidentiality

All information which is by nature confidential or which is provided on a confidential basis shall be covered by the obligation of professional secrecy, in accordance with the respective laws of each party. It shall not be disclosed by the customs authorities or competent governmental authority without the express permission of the person or authority providing it; the communication of information shall be permitted where the customs authorities or competent governmental authority may be obliged or authorised to do so pursuant to the provisions in force, particularly in respect of data protection, or in connection with legal proceedings.

Article 34

Penalties

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

Article 35

Free zones

1. Mexico and the Community shall take all necessary steps to ensure that products traded under cover of a proof of origin which in the course of transport use a free zone situated in their territory, are not substituted by other goods and do not undergo handling other than normal operations designed to prevent their deterioration.

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

TITLE VII

CEUTA AND MELILLA

Article 36

Application of the Annex

1. The term "Community" used in Article 2 does not cover Ceuta and Melilla.

2. Products originating in Mexico, when imported into Ceuta or Melilla shall enjoy in all respects the same customs regime as that which is applied to products originating in the customs territory of the Community under Protocol 2 of the Act of Accession of the Kingdom of Spain and the Portuguese Republic to the European Communities. Mexico shall grant to imports of products covered by the Decision and originating in Ceuta and Melilla the same customs regime as that which is granted to products imported from and originating in the Community.

3. This Annex shall apply mutatis mutandis to products originating in Ceuta and Melilla, subject to the special conditions set out in Article 37.

Article 37

Special conditions

1. Provided that they have been transported directly in accordance with the provisions of Article 13, the following shall be considered as:

1. products originating in Ceuta and Melilla:

(a) products wholly obtained in Ceuta and Melilla;

(b) products obtained in Ceuta and Melilla in the manufacture of which products other than those referred to in (a) are used, provided that:

(i) the said products have undergone sufficient working or processing within the meaning of Article 5, or that

(ii) those products originate in Mexico or the Community within the meaning of this Annex, provided that they have been submitted to working or processing which goes beyond the insufficient working or processing referred to in Article 6(1);

2. products originating in Mexico:

(a) products wholly obtained in Mexico;

(b) products obtained in Mexico, in the manufacture of which products other than those referred to in (a) are used, provided that:

(i) the said products have undergone sufficient working or processing within the meaning of Article 5, or that

(ii) those products originate in Ceuta and Melilla or the Community within the meaning of this Annex, provided that they have been submitted to working or processing which goes beyond the insufficient working or processing referred to in Article 6(1).

2. Ceuta and Melilla shall be considered as a single territory.

3. The exporter or his authorised representative shall enter "Mexico" and "Ceuta and Melilla" in Box 2 of EUR.1 movement certificates or on invoice declarations. In addition, in the case of products originating in Ceuta and Melilla, this shall be indicated in Box 4 of EUR.1 movement certificates or on invoice declarations.

4. The Spanish customs authorities shall be responsible for the application of this Annex in Ceuta and Melilla.

TITLE VIII

FINAL PROVISIONS

Article 38

Amendments to the Annex

The Joint Committee may amend this Annex.

Article 39

Explanatory Notes

1. The Parties shall agree "explanatory notes" regarding the interpretation, application and administration of this Annex within the Special Committee on Customs Cooperation and Rules of Origin.

2. The Parties shall implement simultaneously the explanatory notes so agreed, in accordance with their respective internal procedures.

Article 40

Goods in transit or storage

The provisions of this Decision may be applied to goods which comply with the provisions of this Annex and which on the date of entry into force of this Decision are either in transit or are in Mexico or the Community or, in temporary storage in bonded warehouse or in free zones, subject to the submission to the customs authorities of the importing country, within four months of the date, of an EUR.1 certificate endorsed retrospectively by the customs authorities or the competent governmental authorities of the exporting country together with the documents showing that the goods have been transported directly.

(1) For purposes of this paragraph the term "nationals" includes companies.

(2) The Parties agree that payment of import duties can be deferred until after the final products is exported so that the final destination of the product can be known by authorities.

Appendix I

INTRODUCTORY NOTES TO THE LIST IN APPENDICES II AND II(a)

Note 1

The list sets out the conditions required for all products to be considered as sufficiently worked or processed within the meaning of Article 5 of Annex III.

Note 2

2.1. The first two columns in the list describe the product obtained. The first column contains the Harmonised System heading number or chapter number and the second column contains the description of goods used in that system for that heading or chapter. For each entry in the first two columns, a rule is specified in columns 3 or 4. Where, in some cases, the entry in the first column is preceded by "ex", this signifies that the rules in columns 3 or 4 apply only to the part of that heading as described in column 2.

2.2. Where several heading numbers are grouped together in column 1 or a chapter number is given and the description of products in column 2 is therefore given in general terms, the adjacent rules in columns 3 or 4 apply to all products which in the Harmonised System are classified under such headings of the chapter, or in any of the 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 rules in columns 3 or 4.

2.4. Where, for an entry in the first two columns, a rule is specified in both columns 3 and 4, the exporter may opt, as an alternative, to apply either the rule set out in column 3 or that set out in column 4. If no origin rule is given in column 4, the rule set out in column 3 has to be applied.

Note 3

3.1. The provisions of Article 5 of Annex III concerning products having acquired originating status which are used in the manufacture of other products apply, regardless of whether this product has been manufactured in the same factory or in another factory in Mexico or in the Community.

Example:

An engine of heading No 8407, for which the rule states that the value of the non-originating materials which may be incorporated may not exceed 40 %(1) of the ex-works price, is made from "other alloy steel roughly shaped by forging" of heading No ex 7224.

If this forging has been forged in the Community from a non-originating ingot, it has already acquired originating status by virtue of the rule for heading No ex 7224 in the list. The forging can then count as originating in the value calculation for the engine regardless of whether it was produced in Mexico or the Community. The value of the non-originating ingot is thus not taken into account when adding up the value of the non-originating materials used.

3.2. The rule in the list represents the minimum amount of working or processing required and the carrying out of more working or processing also confers originating status; conversely, the carrying out of less working or processing cannot confer originating status. Thus if a rule provides that non-originating material at a certain level of manufacture may be used, the use of such material at an earlier stage of manufacture is allowed and the use of such material at a later stage is not.

3.3. Without prejudice to note 3.2 where a rule states that "materials of any heading" may be used, materials of the same heading as the product may also be used, subject, however, to any specific limitations which may also be contained in the rule. However, the expression "manufacture from materials of any heading, including other materials of heading No ..." means that only materials classified in the same heading as the product of a different description than that of the product as given in column 2 of the list may be used.

3.4. The unit of qualification for the determination of origin is the particular product as classified under the nomenclature of the Harmonised System. It follows that packaging classified with the goods, for example the boxes in which a product is packed for presentation for retail sale, must be included as part of the product when determining the origin of the product. Packaging designed only for the transportation of the goods to the Party of importation shall be disregarded.

Example:

Computers of heading No 8471 have a rule where the value of the non-originating materials used does not exceed 40 % of the ex-works price. They are packed in boxes for retail sale and are exported in wooden containers with 10 computers in each container. In order to determine whether the computers comply with the percentage given for the product, the value of the wooden containers should be disregarded. However, the value of the retail packaging shall be included.

3.5. When a rule in the list specifies that a product may be manufactured from more than one material, this means that any one or more materials may be used. It does not require that all be used.

Example:

The rule for fabrics of heading Nos 5208 to 5212 provides that natural fibres may be used and that chemical materials, among other materials, may also be used. This does not mean that both have to be used; it is possible to use one or the other or both.

3.6. Where a rule in the list specifies that a product must be manufactured from a particular material, the condition obviously does not prevent the use of other materials which, because of their inherent nature, cannot satisfy the rule (See also note 6.2 in relation to textiles).

However, this does not apply to products which, although they cannot be manufactured from the particular materials specified in the list, can be produced from a material of the same nature at an earlier stage of manufacture.

Example:

The rule for prepared foods of heading No 1904 which specifically excludes the use of cereals and their derivatives does not prevent the use of mineral salts, chemicals and other additives which are not products from cereals.

Example:

In the case of an article of apparel of ex Chapter 62(2) made from non-woven materials, if the use of only non-originating yarn is allowed for this class of article, it is not possible to start from non-woven cloth even if non-woven cloth cannot normally be made from yarn. In such cases, the starting material would normally be at the stage before yarn, that is the fibre stage.

3.7. Where, in a rule in the list, two percentages are given for the maximum value of non-originating materials that can be used, then these percentages may not be added together. In other words, the maximum value of all the non-originating materials used may never exceed the highest of the percentages given. Furthermore, the individual percentages must not be exceeded in relation to the particular materials they apply to.

Note 4

4.1. The term "natural fibres" is used in the list to refer to fibres other than artificial or synthetic fibres. It is restricted to the stages before spinning takes place, including waste, and, unless otherwise specified, includes fibres that have been carded, combed or otherwise processed, but not spun.

4.2. The term "natural fibres" includes horsehair of heading No 0503, silk of heading Nos 5002 and 5003 as well as wool fibres, fine or coarse animal hair of heading Nos 5101 to 5105, cotton fibres of heading Nos 5201 to 5203 and other vegetable fibres of heading Nos 5301 to 5305.

4.3. 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.

4.4. The term "man-made staple fibres" is used in the list to refer to synthetic or artificial filament tow, staple fibres or waste, of heading Nos 5501 to 5507.

Note 5

5.1. Where for a given product in the list a reference is made to this note, the conditions set out in column 3 shall not apply to any basic textile materials used in the manufacture of this product, which, taken together, represent 8 % or less of the total weight of all the basic textile materials used. (See also notes 5.3 and 5.4).

5.2. However, the tolerance mentioned in note 5.1 may only apply 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,

- coconut, abaca, ramie and other vegetable textile fibres,

- synthetic man-made filaments,

- artificial man-made filaments,

- current conducting filaments,

- synthetic man-made staple fibres of polypropylene,

- synthetic man-made staple fibres of polyester,

- synthetic man-made staple fibres of polyamide,

- synthetic man-made staple fibres of polyacrylonitrile,

- synthetic man-made staple fibres of polyimide,

- synthetic man-made staple fibres of polytetrafluoroethylene,

- synthetic man-made staple fibres of polyphenylene sulphide,

- synthetic man-made staple fibres of polyvinyl chloride,

- other synthetic man-made staple fibres,

- artificial man-made staple fibres of viscose,

- other artificial man-made staple fibres,

- yarn made of polyurethane segmented with flexible segments of polyether whether or not gimped,

- yarn made of polyurethane segmented with flexible segments of polyester whether or not gimped,

- products of heading No 5605 (metallised yarn) incorporating strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive between two layers of plastic film,

- other products of heading No 5605.

Example:

A yarn of heading No 5205 made from cotton fibres of heading No 5203 and synthetic staple fibres of heading No 5506 is a mixed yarn. Therefore, non-originating synthetic staple fibres that do not satisfy the origin rules (which require manufacture from chemical materials or textile pulp) may be used up to a weight of 8 % of the yarn.

Example:

A woollen fabric of heading No 5112 made from woollen yarn of heading No 5107 and synthetic yarn of staple fibres of heading No 5509 is a mixed fabric. Therefore synthetic yarn which does not satisfy the origin rules (which require manufacture from chemical materials or textile pulp) or woollen yarn that does not satisfy the origin rules (which require manufacture from natural fibres, not carded or combed or otherwise prepared for spinning) or a combination of the two may be used provided their total weight does not exceed 8 % of the weight of the fabric.

Example:

Tufted textile fabric of heading No 5802 made from cotton yarn of heading No 5205 and cotton fabric of heading No 5210 is only a mixed product if the cotton fabric is itself a mixed fabric being made from yarns classified in two separate headings or if the cotton yarns used are themselves mixtures.

Example:

If the tufted textile fabric concerned had been made from cotton yarn of heading No 5205 and synthetic fabric of heading No 5407, then, obviously, the yarns used are two separate basic textile materials and the tufted textile fabric is accordingly a mixed product.

5.3. In the case of products incorporating "yarn made of polyurethane segmented with flexible segments of polyether whether or not gimped" this tolerance is 8 % in respect of this yarn.

5.4. In the case of products incorporating "strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of an adhesive between two layers of plastic film", this tolerance is 30 % in respect of this strip.

Note 6

6.1. In the case of those textile products which are marked in the list by a footnote referring to this note, textile materials, with the exception of linings and interlinings, 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.

6.2. Without prejudice to note 6.3, materials which are not classified in 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 in Chapters 50 to 63. For the same reason, it does not prevent the use of slide-fasteners even though slide-fasteners normally contain textiles.

6.3. Where a percentage rule applies, the value of materials which are not classified in Chapters 50 to 63 must be taken into account when calculating the value of the non-originating materials incorporated.

Note 7

7.1. For the purposes of heading Nos ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403, the "specific processes" are the following:

(a) vacuum distillation;

(b) redistillation by a very thorough fractionation process(3);

(c) cracking;

(d) reforming;

(e) extraction by means of selective solvents;

(f) the process comprising all the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with alkaline agents; decolorisation and purification with naturally active earth, activated earth, activated charcoal or bauxite;

(g) polymerisation;

(h) alkylation;

(i) isomerisation.

7.2. For the purposes of heading Nos 2710, 2711 and 2712, the "specific processes" are the following:

(a) vacuum distillation;

(b) redistillation by a very thorough fractionation process(4);

(c) cracking;

(d) reforming;

(e) extraction by means of selective solvents;

(f) the process comprising all the following operations: processing with concentrated sulphuric acid, oleum or sulphuric anhydride; neutralisation with alkaline agents; decolorisation and purification with naturally active earth, activated earth, activated charcoal or bauxite;

(g) polymerisation;

(h) alkylation;

(i) isomerisation;

(k) in respect of heavy oils falling of heading No 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);

(l) in respect of products of heading No 2710 only, deparaffining by a process other than filtering;

(m) in respect of heavy oils of heading No 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 No ex 2710 (e.g. hydrofinishing or decolorisation) in order, more especially, to improve colour or stability shall not, however, be deemed to be a specific process;

(n) in respect of fuel oils of heading No ex 2710 only, atmospheric distillation, on condition that less than 30 % of these products distil, by volume, including losses, at 300 °C by the ASTM D 86 method;

(o) in respect of heavy oils other than gas oils and fuel oils of heading No ex 2710 only, treatment by means of a high-frequency electrical brush-discharge.

7.3. For the purposes of heading Nos ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403, simple operations such as cleaning, decanting, desalting, water separation, filtering, colouring, marking, obtaining a sulphur content as a result of mixing products with different sulphur content, any combination of these operations or like operations do not confer origin.

7.4. Redistillation by a very thorough fractionation process means distillation (other than topping) by a continuous or batch process employed in industrial installations using distillates of subheading Nos 2710 00, 2711 11, 2711 12 to 2711 19, 2711 21 and 2711 29 (other than propane of a purity of 99 % or more) to obtain:

1. isolated high-purity hydrocarbons (90 % or more in the case of olefins and 95 % or more in the case of other hydrocarbons), mixtures of isomers having the same organic composition being regarded as isolated hydrocarbons;

only those process by means of which at least three different products are obtained are admissible, but this restriction does not apply in any instance where the process consists in the separation of isomers. In so far this concerns xylenes, ethylbenzene is included with xylene isomers;

2. Products of subheading Nos 2707 10 to 2707 30, 2707 50 and 2710 00:

(a) with no overlapping of the final boiling point of one fraction and the initial boiling point of the succeeding fraction and a difference of not more than 60 °C between the temperatures at which 5 and 90 % by the volume (including losses) distil by the ASTM D 86-67 method (reapproved 1972);

(b) with an overlapping of the final boiling point of one fraction and the initial boiling point of the succeeding fraction and a difference of not more than 30 °C between the temperatures at which 5 and 90 % by volume (including losses) distil by the ASTM D 86-67 method (reapproved 1972).

(1) See note 11 Appendix II(a).

(2) See note 6 Appendix II(a).

(3) See introductory note 7.4.

(4) See introductory note 7.4.

Appendix II

LIST OF WORKING OR PROCESSING REQUIRED TO BE CARRIED OUT ON NON-ORIGINATING MATERIALS IN ORDER THAT THE PRODUCT MANUFACTURED CAN OBTAIN ORIGINATING STATUS

The products mentioned in the list may not all be covered by the Decision. It is therefore necessary to consult the other parts of the Decision

>TABLE>

Appendix II (a)

LIST OF WORKING OR PROCESSING REQUIRED TO BE CARRIED OUT ON NON-ORIGINATING MATERIALS IN ORDER THAT THE PRODUCT MANUFACTURED CAN OBTAIN ORIGINATING STATUS

The products mentioned in the list may not all be covered by the Decision. It is therefore necessary to consult the other parts of the Decision.

Note 1

Until 31 December 2002, the exception concerning durum wheat and its derivatives will also apply to Zea indurata maize.

Note 2

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Note 3

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Note 4

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Note 5

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Note 6

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Note 7

This rule shall apply after 31 December 2002.

Note 8

This rule shall apply(1) after 31 December 2003.

Note 9

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These quotas will be allocated by Mexico through auction(2).

Note 10

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Note 11

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Note 12

12.1.

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Mexico will assign the quota.

12.2.

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(1) See Joint Declaration VIII.

(2) See Joint Declarations IX and X.

Appendix III

EUR.1 MOVEMENT CERTIFICATE AND APPLICATION FOR AN EUR.1 MOVEMENT CERTIFICATE

1. Each form shall measure 210 × 297 mm; a tolerance of up to minus 5 mm or plus 8 mm in the length may be allowed. The paper used must be white, sized for writing, not containing mechanical pulp and weighting not less than 25 g/m2. It shall have a printed green guilloche pattern background making any falsification by mechanical or chemical means apparent to the eye.

2. The public authorities of the parties may reserve the right to print the forms themselves or may have them printed by approved printers. In the latter case, each form must include a reference to such approval. Each form 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.

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Appendix IV

INVOICE DECLARATION

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Appendix V

PERIOD OF TIME TO SUPPLY INFORMATION FOR ISSUING AN EUR.1 MOVEMENT CERTIFICATE RETROSPECTIVELY AND FOR DRAWING UP AN INVOICE DECLARATION REFERRED TO IN ARTICLE 17(3) AND 20(6) OF ANNEX III

1. For the European Community, two years.

2. For Mexico, one year.

ANNEX IV

(referred to in Article 12)

1. Notwithstanding Article 12, Mexico may maintain the measures specified in this Annex, provided that such measures are applied consistently with Mexico's rights and obligations under the WTO Agreement and in a manner that does not afford more favourable treatment to imports of any third country, including countries with which Mexico has concluded an agreement notified under Article XXIV of the GATT 1994.

2. For only those products listed below, Mexico may restrict the granting of import and export licenses for the sole purpose of reserving foreign trade in these products to itself:

(For purposes of reference only, descriptions are provided next to the corresponding item.)

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3. Mexico may maintain prohibitions or restrictions on the importation of the products listed below until 31 December 2003:

(For purposes of reference only, descriptions are provided next to the corresponding item.)

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4. Until 31 December 2003, Mexico may maintain prohibitions or restrictions on the importation of used products classified in headings and subheadings 8426 91, 8427 20, 8429 20, 8452 29, 8471, 8474 20, 8504 40, 8701 90, 8705, 8711, 8712 and 8716 of the Harmonised System.

5. Mexico may maintain prohibitions or restrictions on the importation of used products classified under heading 6309 of the Harmonised System.

6. Mexico may maintain import prohibitions or restrictions on used vehicles classified under headings of the Harmonised System listed below, provided that they are applied consistently with Mexico's rights and obligations under the WTO Agreement.

(For purposes of reference only, descriptions are provided next to the corresponding item.)

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ANNEX V

(referred to in Article 13)

Notwithstanding Article 13, until 31 December 2003, Mexico may maintain the "Decreto para el fomento y modenización de la industria automotriz" (Decree for development and modernisation of the automotive industry) of 11 December 1989, and its amendments of 31 May 1995, provided that it is applied consistently with Mexico's rights and obligations under the WTO Agreement and in a manner that does not afford less favourable treatment to imported products of the Community than to imported products of any third country, including countries with which Mexico has concluded an agreement notified under Article XXIV of GATT 1994.

ANNEX VI

COVERED ENTITIES UNDER TITLE III

(Referred to in Article 25)

PART A

COVERED ENTITIES OF MEXICO

Section 1

Federal government entities

(Only the Spanish text is authentic)

1. Secretaría de Gobernación (Ministry of Government); includes:

- Centro Nacional de Desarrollo Municipal (National Centre for Municipal Studies)

- Comisión Calificadora de Publicaciones y Revistas Ilustradas (Illustrated Periodicals and Publications Classification Commission)

- Consejo Nacional de Población (National Population Council)

- Archivo General de la Nación (General Archives of the Nation)

- Instituto Nacional de Estudios Históricos de la Revolución Mexicana (National Institute for Historical Studies on the Mexican Revolution)

- Patronato para la Reincorporación Social por el Empleo en el Distrito Federal (Social Reintegration Assistance Foundation)

- Centro Nacional de Prevención de Desastres (National Disaster Prevention Centre)

2. Secretaría de Relaciones Exteriores (Ministry of Foreign Relations)

3. Secretaría de Hacienda y Crédito Público (Ministry of Finance and Public Credit); includes:

- Comisión Nacional Bancaria y de Valores (National Banking and Securities Commission)

- Comisión Nacional de Seguros y Fianzas (National Insurance and Bonds Commission)

- Instituto Nacional de Estadística, Geografía e Informática (National Institute for Statistics, Geography and Informatics)

4. Secretaría de Agricultura, Ganadería y Desarrollo Rural (Ministry of Agriculture, Livestock and Rural Development); includes:

- Apoyos y Servicios a la Comercialización Agropecuaria (ASERCA) (Support Services for Agricultural Marketing)

- Instituto Nacional de Investigaciones Forestales y Agropecuarias (National Forestry and Agricultural Research Institute)

5. Secretaría de Comunicaciones y Transportes (Ministry of Communication and Transport); includes:

- Comisión Federal de Telecomunicaciones (Telecommunications Federal Commission)

- Instituto Mexicano de Transporte (Mexican Institute for Transport)

6. Secretaría de Comercio y Fomento Industrial (Ministry of Commerce and Industrial Development)

7. Secretaría de Educación Pública (Ministry of Public Education); includes:

- Instituto Nacional de Antropología e Historia (National Institute for Anthropology and History)

- Instituto Nacional de Bellas Artes y Literatura (National Institute for Fine Arts and Literature)

- Radio Educación (Radio Education)

- Centro de Ingeniería y Desarrollo Industrial (Engineering and Industrial Development Centre)

- Consejo Nacional para la Cultura y las Artes (National Council for Culture and the Arts)

- Comisión Nacional del Deporte (National Sports Commission)

8. Secretaría de Salud (Ministry of Health); includes:

- Administración del Patrimonio de la Beneficencia Pública (Public Charity Fund Administration)

- Centro Nacional de la Transfusión Sanguínea (National Blood Transfusion Centre)

- Laboratorios de Biológicos y Reactivos de México S.A. de C.V. (Office for General Management of Biologicals and Reagents)

- Centro Nacional de Rehabilitación (National Rehabilitation Centre)

- Consejo para la Prevención y Control de Síndrome de la Inmunodeficiencia Adquirida (Conasida) (Council for the Prevention and Control of the Acquired Immuno-Deficiency Syndrome)

9. Secretaría del Trabajo y Previsión Social (Ministry of Labour and Social Welfare); includes:

- Procuraduría Federal de la Defensa del Trabajo (Office of the Federal Attorney for Labour Defence)

10. Secretaría de la Reforma Agraria (Ministry of Agrarian Reform); includes:

- Instituto Nacional de Desarrollo Agrario (National Institute for Agrarian Development)

11. Secretaría de Medio Ambiente, Recursos Naturales y Pesca (Ministry of Environment, Natural Resources and Fisheries); includes:

- Instituto Nacional de la Pesca (National Institute for Fisheries)

- Instituto Mexicano de Tecnología del Agua (Mexican Institute for Water Technology)

12. Procuraduría General de la República (Office of the Attorney-General of the Republic)

13. Secretaría de Energía (Ministry of Energy); includes:

- Comisión Nacional de Seguridad Nuclear y Salvaguardias (National Commission for Nuclear Safety and Safeguards)

- Comisión Nacional para el Ahorro de Energía (National Commission for Energy Conservation)

14. Secretaría de Desarrollo Social (Ministry of Social Development)

15. Secretaría de Turismo (Ministry of Tourism)

16. Secretaría de Contraloría y Desarrollo Administrativo (Ministry of Comptroller and Administrative Development)

17. Secretaría de la Defensa Nacional (Ministry of National Defence)

18. Secretaría de Marina (Ministry of the Navy)

Section 2

Government enterprises

(Only the Spanish text is authentic)

1. Talleres Gráficos de México (National Printers)

2. Aeropuertos y Servicios Auxiliares (ASA) (Airports and Auxiliary Services)

3. Caminos y Puentes Federales de Ingresos y Servicios Conexos (CAPUFE) (Federal Toll Roads and Bridges and Related Services)

4. Servicio Postal Mexicano (Mexican Postal Service)

5. Ferrocarriles Nacionales de México (FERRONALES) (National Railways of Mexico)

6. Telecomunicaciones de México (TELECOM) (Telecommunications of Mexico)

7. Petróleos Mexicanos (Mexican Petroleum) (PEMEX Corporativo) (No incluye las compras de combustibles y gas.) (PEMEX Corporative) (Not including procurements of fuels or gas)

- PEMEX Exploración y Producción (PEMEX Exploration and Production)

- PEMEX Refinación (PEMEX Refining)

- PEMEX Gas y Petroquímica Básica (PEMEX Gas and Basic Petrochemicals)

- PEMEX Petroquímica (PEMEX Petrochemical).

8. Comisión Federal de Electricidad (Federal Electricity Commission)

9. Consejo de Recursos Minerales (Mineral Resources Council)

10. Distribuidora e Impulsora Comercial Conasupo S.A. de C.V. (DICCONSA) (Commercial Distributor and Trade Promotion S.A. de C.V)

11. Leche Industrializada Conasupo, S.A. de C.V. (LICONSA) (No incluye las compras de bienes agrícolas adquiridos para programas de apoyo a la agricultura o bienes para la alimentación humana.) (Conasupo Industrialised Milk, S.A. de C.V.) (Not including procurements of agricultural goods made in furtherance of agricultural support programmes or goods for human feeding programmes)

12. Procuraduría Federal del Consumidor (Office of the Federal Attorney for Consumers)

13. Servicio Nacional de Información de Mercados (National Markets Information Service)

14. Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado (ISSSTE) (Social Security and Services Institute for Government Workers)

15. Instituto Mexicano del Seguro Social (IMSS) (Mexican Social Security Institute)

16. Sistema Nacional para el Desarrollo Integral de la Familia (DIF) (No incluye las compras de bienes agrícolas adquiridos para programas de apoyo a la agricultura o bienes para la alimentación humana.) (National System for Integrated Family Development) (Not including procurements of agricultural goods made in furtherance of agricultural support programmes or goods for human feeding programmes)

17. Instituto de Seguridad Social para las Fuerzas Armadas Mexicanas (Social Security Institute for the Mexican Armed Forces)

18. Instituto Nacional Indigenista (INI) (National Institute for Indian Peoples)

19. Instituto Nacional para la Educación de los Adultos (National Institute for Adult Education)

20. Centros de Integración Juvenil (Youth Integration Centres)

21. Instituto Nacional de la Senectud (National Institute for Old Age)

22. Comité Administrador del Programa Federal de Construcción de Escuelas (CAPFCE) (Administrative Committee of the School Construction Federal Programme)

23. Comisión Nacional del Agua (CNA) (National Water Commission)

24. Comisión para la Regularización de la Tenencia de la Tierra (Commission for the Regularisation of Land Tenure)

25. Consejo Nacional de Ciencia y Tecnología (CONACYT) (National Science and Technology Council)

26. NOTIMEX S.A. de C.V.

27. Instituto Mexicano de Cinematografía (Mexican Institute for Cinematography)

28. Lotería Nacional para la Asistencia Pública (National Lottery for Public Assistance)

29. Pronósticos para la Asistencia Pública (Sports Lottery)

30. Comisión Nacional de Zonas Áridas (National Commission on Arid Zones)

31. Comisión Nacional de los Libros de Texto Gratuitos (National Commission for Free Textbooks)

32. Comisión Nacional de Derechos Humanos (National Commission on Human Rights)

33. Consejo Nacional de Fomento Educativo (National Educational Development Council)

Section 3

Sub-federal Government entities

None.

PART B

COVERED ENTITIES OF THE COMMUNITY

Section 1

Central Government entities

A. European Communities entities

1. The Council of the European Union

2. The European Commission

B. Austria

(Only the English text is authentic)

A. Present coverage of entities

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B. All other central public authorities including their regional and local subdivisions provided that they do not have an industrial or commercial character

C. Belgium

(Only the French text is authentic)

A. L'État fédéral (the federal State)

1. Services du premier ministre

2. Ministère des affaires économiques

3. Ministère des affaires étrangères, du commerce extérieur et de la coopération au développement

4. Ministère des affaires sociales, de la santé publique et de l'environnement

5. Ministère des classes moyennes et de l'agriculture

6. Ministère des communications et de l'infrastructure

7. Ministère de la défense nationale(1)

8. Ministère de l'emploi et du travail

9. Ministère des finances

10. Ministère de la fonction publique

11. Ministère de l'intérieur

12. Ministère de la justice

B. Autres (others)

1. La Poste(2)

2. La Régie des bâtiments

3. L'Office national de sécurité sociale

4. L'Institut national d'assurances sociales pour travailleurs indépendants

5. L'Institut national d'assurance maladie-invalidité

6. L'Office national des pensions

7. La Caisse auxiliaire d'assurance maladie-invalidité

8. Le Fonds des maladies professionnelles

9. L'Office national de l'emploi

D. Denmark

(Only the English text is authentic)

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E. Germany

(Only the English text is authentic)

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Note:

According to existing national obligations, the entities contained in this list must, in conformity with special procedures, award contracts to certain groups in order to remove difficulties caused by the last war.

F. Spain

(Only the Spanish text is authentic)

1. Ministerio de Asuntos Exteriores

2. Ministerio de Justicia

3. Ministerio de Defensa(3)

4. Ministerio de Economía y Hacienda

5. Ministerio del Interior

6. Ministerio de Fomento

7. Ministerio de Educación y Cultura

8. Ministerio de Trabajo y Asuntos Sociales

9. Ministerio de Industria y Energía

10. Ministerio de Agricultura, Pesca y Alimentación

11. Ministerio de la Presidencia

12. Ministerio para las Administraciones Públicas

13. Ministerio de Sanidad y Consumo

14. Ministerio de Medio Ambiente

G. Finland

(Only the English text is authentic)

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H. France

(Only the French text is authentic)

A. Principales entités acheteuses (principal procuring entities)

(a) Budget général

1. Services du premier ministre

2. Ministère des affaires sociales, de la santé et de la ville

3. Ministère de l'intérieur et de l'aménagement du territoire

4. Ministère de la justice

5. Ministère de la défense

6. Ministère des affaires étrangères

7. Ministère de l'éducation nationale

8. Ministère de l'économie

9. Ministère de l'industrie, des Postes et télécommunications et du commerce extérieur

10. Ministère de l'équipement, des transports et du tourisme

11. Ministère des entreprises et du développement économique, chargé des petites et moyennes entreprises et du commerce et de l'artisanat

12. Ministère du travail, de l'emploi et de la formation professionnelle

13. Ministère de la culture et de la francophonie

14. Ministère du budget

15. Ministère de l'agriculture et de la pêche

16. Ministère de l'enseignement supérieur et de la recherche

17. Ministère de l'environnement

18. Ministère de la fonction publique

19. Ministère du logement

20. Ministère de la coopération

21. Ministère des départements et territoires d'outre-mer

22. Ministère de la jeunesse et des sports

23. Ministère de la communication

24. Ministère des anciens combattants et victimes de guerre

(b) Budget annexe

On peut notamment signaler:

1. Imprimerie nationale

(c) Comptes spéciaux du Trésor

On peut notamment signaler:

1. Fonds forestier national

2. Soutien financier de l'industrie cinématographique et de l'industrie des programmes audiovisuels

3. Fonds national d'aménagement foncier et d'urbanisme

4. Caisse autonome de la reconstruction

B. Établissements publics nationaux à caractère administratif (national public establishment of administrative character)

1. Académie de France à Rome

2. Académie de marine

3. Académie des sciences d'outre-mer

4. Agence centrale des organismes de sécurité sociale (Acoss)

5. Agences financières de bassins

6. Agence nationale pour l'amélioration des conditions de travail (Anact)

7. Agence nationale pour l'amélioration de l'habitat (Anah)

8. Agence nationale pour l'emploi (ANPE)

9. Agence nationale pour l'indemnisation des Français d'outre-mer (Anifom)

10. Assemblée permanente des chambres d'agriculture (Apca)

11. Bibliothèque nationale

12. Bibliothèque nationale et universitaire de Strasbourg

13. Bureau d'études des Postes et télécommunications d'outre-mer (Beptom)

14. Caisse des dépôts et consignations

15. Caisse nationale des allocations familiales (Cnaf)

16. Caisse nationale d'assurance maladie des travailleurs salariés (Cnam)

17. Caisse nationale d'assurance-vieillesse des travailleurs salariés (CNAVTS)

18. Caisse nationale des autoroutes (CNA)

19. Caisse nationale militaire de sécurité sociale (CNMSS)

20. Caisse nationale des monuments historiques et des sites

21. Caisse nationale des télécommunications(4)

22. Caisse de garantie du logement social

23. Casa de Velázquez

24. Centre d'enseignement zootechnique de Rambouillet

25. Centre d'études du milieu et de pédagogie appliquée du ministère de l'agriculture

26. Centre d'études supérieures de sécurité sociale

27. Centres de formation professionnelle agricole

28. Centre national d'art et de culture Georges-Pompidou

29. Centre national de la cinématographie française

30. Centre national d'études et de formation pour l'enfance inadaptée

31. Centre national d'études et d'expérimentation du machinisme agricole, du génie rural, des eaux et des forêts

32. Centre national de formation pour l'adaptation scolaire et l'éducation spécialisée (CNEFASES)

33. Centre national de formation et de perfectionnement des professeurs d'enseignement ménager agricole

34. Centre national des lettres

35. Centre national de documentation pédagogique

36. Centre national des oeuvres universitaires et scolaires (Cnous)

37. Centre national d'opthalmologie des Quinze-Vingts

38. Centre national de préparation au professorat de travaux manuels éducatifs et d'enseignement ménager

39. Centre national de promotion rurale de Marmilhat

40. Centre national de la recherche scientifique (CNRS)

41. Centre régional d'éducation populaire d'Île-de-France

42. Centres d'éducation populaire et de sport (Creps)

43. Centres régionaux des oeuvres universitaires (Crous)

44. Centres régionaux de la propriété forestière

45. Centre de sécurité sociale des travailleurs migrants

46. Chancelleries des universités

47. Collège de France

48. Commission des opérations de bourse

49. Conseil supérieur de la pêche

50. Conservatoire de l'espace littoral et des rivages lacustres

51. Conservatoire national des arts et métiers

52. Conservatoire national supérieur de musique

53. Conservatoire national supérieur d'art dramatique

54. Domaine de Pompadour

55. École centrale - Lyon

56. École centrale des arts et manufactures

57. École française d'archéologie d'Athènes

58. École française d'Extrême-Orient

59. École française de Rome

60. École des hautes études en sciences sociales

61. École nationale d'administration

62. École nationale de l'aviation civile (Enac)

63. École nationale des chartes

64. École nationale d'équitation

65. École nationale du génie rural des eaux et des forêts (Engref)

66. Écoles nationales d'ingénieurs

67. École nationale d'ingénieurs des industries des techniques agricoles et alimentaires

68. Écoles nationales d'ingénieurs des travaux agricoles

69. École nationale des ingénieurs des travaux ruraux et des techniques sanitaires

70. École nationale des ingénieurs des travaux des eaux et forêts (Enitef)

71. École nationale de la magistrature

72. Écoles nationales de la marine marchande

73. École nationale de la santé publique (ENSP)

74. École nationale de ski et d'alpinisme

75. École nationale supérieure agronomique - Montpellier

76. École nationale supérieure agronomique - Rennes

77. École nationale supérieure des arts décoratifs

78. École nationale supérieure des arts et industries - Strasbourg

79. École nationale supérieure des arts et industries textiles - Roubaix

80. Écoles nationales supérieures d'arts et métiers

81. École nationale supérieure des beaux-arts

82. École nationale supérieure des bibliothécaires

83. École nationale supérieure de céramique industrielle

84. École nationale supérieure de l'électronique et de ses applications (ENSEA)

85. École nationale supérieure d'horticulture

86. École nationale supérieure des industries agricoles alimentaires

87. École nationale supérieure du paysage (rattachée à l'École nationale supérieure d'horticulture)

88. École nationale supérieure des sciences agronomiques appliquées (ENSSA)

89. Écoles nationales vétérinaires

90. École nationale de voile

91. Écoles normales d'instituteurs et d'institutrices

92. Écoles normales nationales d'apprentissage

93. Écoles normales supérieures

94. École polytechnique

95. École technique professionnelle agricole et forestière de Meymac (Corrèze)

96. École de sylviculture - Crogny (Aube)

97. École de viticulture et d'oenologie de la Tour-Blanche (Gironde)

98. École de viticulture - Avize (Marne)

99. Établissement national de convalescents de Saint-Maurice

100. Établissement national des invalides de la marine (Enim)

101. Établissement national de bienfaisance Koenigs-Wazter

102. Fondation Carnegie

103. Fondation Singer-Polignac

104. Fonds d'action sociale pour les travailleurs immigrés et leurs familles

105. Hôpital-hospice national Dufresne-Sommeiller

106. Institut de l'élevage et de médicine vétérinaire des pays tropicaux (IEMVPT)

107. Institut français d'archéologie orientale du Caire

108. Institut géographique national

109. Institut industriel du Nord

110. Institut international d'administration publique (IIAP)

111. Institut national agronomique de Paris-Grignon

112. Institut national des appellations d'origine des vins et eaux-de-vie (INAOVEV)

113. Institut national d'astronomie et de géophysique (Inag)

114. Institut national de la consommation (INC)

115. Institut national d'éducation populaire (Inep)

116. Institut national d'études démographiques (Ined)

117. Institut national des jeunes aveugles - Paris

118. Institut national des jeunes sourdes - Bordeaux

119. Institut national des jeunes sourds - Chambéry

120. Institut national des jeunes sourds - Metz

121. Institut national des jeunes sourds - Paris

122. Institut national de physique nucléaire et de physique des particules (INPNPP)

123. Institut national de promotion supérieure agricole

124. Institut national de la propriété industrielle

125. Institut national de la recherche agronomique (Inra)

126. Institut national de recherche pédagogique (INRP)

127. Institut national de la santé et de la recherche médicale (Inserm)

128. Institut national des sports

129. Instituts nationaux polytechniques

130. Instituts nationaux des sciences appliquées

131. Instituts national supérieur de chimie industrielle de Rouen

132. Institut national de recherche en informatique et en automatique (Inria)

133. Institut national de recherche sur les transports et leur sécurité (INRTS)

134. Instituts régionaux d'administration

135. Institut supérieur des matériaux et de la construction mécanique de Saint-Ouen

136. Musée de l'armée

137. Musée Gustave Moreau

138. Musée de la marine

139. Musée national J.-J. Henner

140. Musée national de la Légion d'honneur

141. Musée de la Poste

142. Muséum national d'histoire naturelle

143. Musée Auguste Rodin

144. Observatoire de Paris

145. Office de coopération et d'accueil universitaire

146. Office français de protection des réfugiés et apatrides

147. Office national des anciens combattants

148. Office national de la chasse

149. Office national d'information sur les enseignements et les professions (Oniep)

150. Office national d'immigration (Oni)

151. ORSTOM - Institut français de recherche scientifique pour le développement en coopération

152. Office universitaire et culturel français pour l'Algérie

153. Palais de la découverte

154. Parcs nationaux

155. Réunion des musées nationaux

156. Syndicat des transports parisiens

157. Thermes nationaux - Aix-les-Bains

158. Universités

C. Autre organisme public national (other public national bodies)

1. Union des groupements d'achats publics (Ugap)

I. Greece

(Only the English text is authentic)

List of entities

1. Ministry of the Interior, Public Administration and Decentralisation

2. Ministry of Foreign Affairs

3. Ministry of the National Economy

4. Ministry of Finance

5. Ministry of Development

6. Ministry of the Environment, Planning and Public Works

7. Ministry of Education and Religion

8. Ministry of Agriculture

9. Ministry of Labour and Social Security

10. Ministry of Health and Social Welfare

11. Ministry of Justice

12. Ministry of Culture

13. Ministry of the Merchant Marine

14. Ministry of Macedonia and Thrace

15. Ministry of the Aegean

16. Ministry of Transport and Communications

17. Ministry of the Press and Media

18. Ministry to the Prime Minister

19. Army General Staff

20. Navy General Staff

21. Airforce General Staff

22. General Secretariat for Equality

23. General Secretariat for Greeks Living Abroad

24. General Secretariat for Commerce

25. General Secretariat for Research and Technology

26. General Secretariat for Industry

27. General Secretariat for Public Works

28. General Secretariat for Youth

29. General Secretariat for Further Education

30. General Secretariat for Social Security

31. General Secretariat for Sport

32. General State Laboratory

33. National Centre of Public Administration

34. National Printing Office

35. National Statistical Service

36. National Welfare Organisation

37. University of Athens

38. University of Thessaloniki

39. University of Patras

40. University of Ioannina

41. University of Thrace

42. University of Macedonia

43. University of the Aegean

44. Polytechnic School of Crete

45. Sivitanidios Technical School

46. Eginitio Hospital

47. Areteio Hospital

48. Greek Atomic Energy Commission

49. Greek Highway Fund

50. Hellenic Post (ELTA)

51. Workers' Housing Organisation

52. Farmers' Insurance Organisation

53. Public Material Management Organisation

54. School Building Organisation

J. Ireland

(Only the English text is authentic)

A. Main purchasing entities

1. Office of Public Works

B. Other departments

1. President's Establishment

2. Houses of the Oireachtas (Parliament)

3. Department of the Taoiseach (Prime Minister)

4. Office of the Tánaiste (Deputy Prime Minister)

5. Central Statistics Office

6. Department of Arts, Culture and the Gaeltacht

7. National Gallery of Ireland

8. Department of Finance

9. State Laboratory

10. Office of the Comptroller and Auditor-General

11. Office of the Attorney-General

12. Office of the Director of Public Prosecutions

13. Valuation Office

14. Civil Service Commission

15. Office of the Ombudsman

16. Office of the Revenue Commissioners

17. Department of Justice

18. Commissioners of Charitable Donations and Bequests for Ireland

19. Department of the Environment

20. Department of Education

21. Department of the Marine

22. Department of Agriculture, Food and Forestry

23. Department of Enterprise and Employment

24. Department of Tourism and Trade

25. Department of Defence(5)

26. Department of Foreign Affairs

27. Department of Social Welfare

28. Department of Health

29. Department of Transport, Energy and Communications

K. Italy

(Only the English text is authentic)

Purchasing Entities

>TABLE>

L. Luxembourg

(Only the French text is authentic)

1. Ministère du budget: service central des imprimés et des fournitures de l'État

2. Ministère de l'agriculture: administration des services techniques de l'agriculture

3. Ministère de l'éducation nationale: lycées d'enseignement secondaire et d'enseignement secondaire technique

4. Ministère de la famille et de la solidarité sociale: maisons de retraite

5. Ministère de la force publique: armée(6) - gendarmerie - police

6. Ministère de la justice: établissements pénitentiaires

7. Ministère de la santé publique: hôpital neuropsychiatrique

8. Ministère des travaux publics: bâtiments publics - ponts et chaussées

9. Ministère des communications: centre informatique de l'État

10. Ministère de l'environnement: administration de l'environnement

M. Netherlands

(Only the English text is authentic)

List of Entities

Ministries and Central Governmental Bodies

>TABLE>

N. Portugal

(Only the English text is authentic)

>TABLE>

O. Sweden

(Only the English text is authentic)

>TABLE>

P. United Kingdom

(Only the English text is authentic)

1. CABINET OFFICE

Civil Service College

Office of Public Services

The Buying Agency

Parliamentary Counsel Office

Central Computer and Telecommunications Agency (CCTA)

2. CENTRAL OFFICE OF INFORMATION

3. CHARITY COMMISSION

4. CROWN PROSECUTION SERVICE

5. CROWN ESTATE COMMISSIONERS (vote expenditure only)

6. CUSTOMS AND EXCISE DEPARTMENT

7. DEPARTMENT OF INTERNATIONAL DEVELOPMENT

8. DEPARTMENT OF NATIONAL SAVINGS

9. DEPARTMENT OF EDUCATION AND EMPLOYMENT

Higher Education Funding Council for England

Office of Manpower Economics

10. DEPARTMENT OF HEALTH

Central Council for Education and Training in Social Work

Dental Practice Board

English National Board for Nursing, Midwifery and Health Visitors

National Health Service Authorities and Trusts

Prescription Pricing Authority

Public Health Laboratory Service Board

UK Central Council for Nursing, Midwifery and Health Visiting

11. DEPARTMENT OF NATIONAL HERITAGE

British Library

British Museum

Historic Buildings and Monuments Commission for England (English Heritage)

Imperial War Museum

Museums and Galleries Commission

National Gallery

National Maritime Museum

National Portrait Gallery

Natural History Museum

Royal Commission on Historical Manuscripts

Royal Commission on Historical Monuments of England

Royal Fine Art Commission (England)

Science Museum

Tate Gallery

Victoria and Albert Museum

Wallace Collection

12. DEPARTMENT OF SOCIAL SECURITY

Medical Boards and Examining Medical Officers (War Pensions)

Regional Medical Service

Independent Tribunal Service

Disability Living Allowance Advisory Board

Occupational Pensions Board

Social Security Advisory Committee

13. DEPARTMENT OF THE ENVIRONMENT

Building Research Establishment Agency

Commons Commission

Countryside Commission

Valuation Tribunal

Rent Assessment Panels

Royal Commission on Environmental Pollution

14. DEPARTMENT OF THE PROCURATOR-GENERAL AND TREASURY SOLICITOR

Legal Secretariat to the Law Officers

15. DEPARTMENT OF TRADE AND INDUSTRY

National Weights and Measures Laboratory

Domestic Coal Consumers' Council

Electricity Committees

Gas Consumers' Council

Central Transport Consultative Committees

Monopolies and Mergers Commission

Patent Office

Employment Appeal Tribunal

Industrial Tribunals

16. DEPARTMENT OF TRANSPORT

Coastguard Services

17. EXPORT CREDITS GUARANTEE DEPARTMENT

18. FOREIGN AND COMMONWEALTH OFFICE

Wilton Park Conference Centre

19. GOVERNMENT ACTUARY'S DEPARTMENT

20. GOVERNMENT COMMUNICATIONS HEADQUARTERS

21. HOME OFFICE

Boundary Commission for England

Gaming Board for Great Britain

Inspectors of Constabulary

Parole Board and Local Review Committees

22. HOUSE OF COMMONS

23. HOUSE OF LORDS

24. INLAND REVENUE, BOARD OF

25. INTERVENTION BOARD FOR AGRICULTURAL PRODUCE

26. LORD CHANCELLOR'S DEPARTMENT

Combined Tax Tribunal

Council on Tribunals

Immigration Appellate Authorities

Immigration Adjudicators

Immigration Appeal Tribunal

Lands Tribunal

Law Commission

Legal Aid Fund (England and Wales)

Pensions Appeal Tribunals

Public Trust Office

Office of the Social Security Commissioners

Supreme Court Group (England and Wales)

Court of Appeal, Criminal

Circuit Offices and Crown, County and Combined Courts (England and Wales)

Transport Tribunal

27. MINISTRY OF AGRICULTURE, FISHERIES AND FOOD

Agricultural Dwelling House Advisory Committees

Agricultural Land Tribunals

Agricultural Wages Board and Committees

Cattle Breeding Centre

Plant Variety Rights Office

Royal Botanic Gardens, Kew

28. MINISTRY OF DEFENCE(7)

Meteorological Office

Procurement Executive

29. NATIONAL AUDIT OFFICE

30. NATIONAL INVESTMENT AND LOANS OFFICE

31. NORTHERN IRELAND COURT SERVICE

Coroners Courts

County Courts

Court of Appeal and High Court of Justice in Northern Ireland

Crown Court

Enforcement of Judgments' Office

Legal Aid Fund

Magistrates Court

Pensions Appeals Tribunals

32. NORTHERN IRELAND, DEPARTMENT OF AGRICULTURE

33. NORTHERN IRELAND, DEPARTMENT OF ECONOMIC DEVELOPMENT

34. NORTHERN IRELAND, DEPARTMENT OF EDUCATION

35. NORTHERN IRELAND, DEPARTMENT OF THE ENVIRONMENT

36. NORTHERN IRELAND, DEPARTMENT OF FINANCE AND PERSONNEL

37. NORTHERN IRELAND, DEPARTMENT OF HEALTH AND SOCIAL SERVICES

38. NORTHERN IRELAND OFFICE

Crown Solicitor's Office

Department of the Director of Public Prosecutions for Northern Ireland

Northern Ireland Forensic Science Laboratory

Office of Chief Electoral Officer for Northern Ireland

Police Authority for Northern Ireland

Probation Board for Northern Ireland

State Pathologist Service

39. OFFICE OF FAIR TRADING

40. OFFICE FOR NATIONAL STATISTICS

National Health Service Central Register

41. OFFICE OF THE PARLIAMENTARY COMMISSIONER FOR ADMINISTRATION AND HEALTH SERVICE COMMISSIONERS

42. PAYMASTER GENERAL'S OFFICE

43. POSTAL BUSINESS OF THE POST OFFICE

44. PRIVY COUNCIL OFFICE

45. PUBLIC RECORD OFFICE

46. REGISTRY OF FRIENDLY SOCIETIES

47. ROYAL COMMISSION ON HISTORICAL MANUSCRIPTS

48. ROYAL HOSPITAL, CHELSEA

49. ROYAL MINT

50. SCOTLAND, CROWN OFFICE AND PROCURATOR

Fiscal Service

51. SCOTLAND, REGISTERS OF SCOTLAND

52. SCOTLAND, GENERAL REGISTER OFFICE

53. SCOTLAND, LORD ADVOCATE'S DEPARTMENT

54. SCOTLAND, QUEEN'S AND LORD TREASURER'S REMEMBRANCER

55. SCOTTISH COURTS ADMINISTRATION

Accountant of Court's Office

Court of Justiciary

Court of Session

Lands Tribunal for Scotland

Pensions Appeal Tribunals

Scottish Land Court

Scottish Law Commission

Sheriff Courts

Social Security Commissioners' Office

56. THE SCOTTISH OFFICE CENTRAL SERVICES

57. THE SCOTTISH OFFICE AGRICULTURE AND FISHERIES DEPARTMENT

Crofters Commission

Red Deer Commission

Royal Botanic Gardens, Edinburgh

58. THE SCOTTISH OFFICE INDUSTRY DEPARTMENT

59. THE SCOTTISH OFFICE EDUCATION DEPARTMENT

National Galleries of Scotland

National Library of Scotland

National Museums of Scotland

Scottish Higher Education Funding Council

60. THE SCOTTISH OFFICE ENVIRONMENT DEPARTMENT

Rent Assesment Panel and Committees

Royal Commission on the Ancient and Historical Monuments of Scotland

Royal Fine Art Commission for Scotland

61. THE SCOTTISH OFFICE HOME AND HEALTH DEPARTMENTS

HM Inspectorate of Constabulary

Local Health Councils

National Board for Nursing, Midwifery and Health Visiting for Scotland

Parole Board for Scotland and Local Review Committees

Scottish Council for Postgraduate Medical Education

Scottish Crime Squad

Scottish Criminal Record Office

Scottish Fire Service Training School

Scottish National Health Service Authorities and Trusts

Scottish Police College

62. SCOTTISH RECORD OFFICE

63. HM TREASURY

64. WELSH OFFICE

Royal Commission of Ancient and Historical Monuments in Wales

Welsh National Board for Nursing, Midwifery and Health Visiting

Local Government Boundary Commission for Wales

Valuation Tribunals (Wales)

Welsh Higher Education Funding Council

Welsh National Health Service Authorities and Trusts

Welsh Rent Assessment Panels

Section 2

Government enterprises

Contracting entities within the meaning of Article 2 of Directive 93/38/EEC which are public authorities or public undertakings and which have as one of their activities any of those referred to below or any combination thereof:

(a) the provision or operation of fixed networks intended to provide a service to the public in connection with the production, transport or distribution of drinking water or the supply of drinking water to such networks;

(b) the provision or operation of fixed networks intended to provide a service to the public in connection with the production, transport or distribution of electricity or the supply of electricity to such networks;

(c) the provision of airport or other terminal facilities to carriers by air;

(d) the provision of maritime or inland port or other terminal facilities to carriers by sea or inland waterway;

(e) the operation of networks providing a service to the public in the field of urban transport by railway(8), automated systems, tramway, trolleybus, bus or cable in accordance with Directive 93/38/EEC.

The public authorities or public undertakings listed in Annex I (production, transport or distribution of drinking water), Annex II (production, transport or distribution of electricity), Annex VII (contracting entities in the field of urban railway, tramway, trolleybus or bus services), Annex VIII (contracting entities in the field of airport facilities) and Annex IX (contracting entities in the field of maritime or inland port or other terminal facilities) to Directive 93/38/EEC fulfil the criteria set out above. Those lists are indicative only (see Official Journal of the European Communities L 199 of 9 August 1993 and C 241 of 29 August 1994).

Attachment to Annex VI Part B, Section 2

LISTS OF BODIES AND CATEGORIES OF BODIES REFERRED TO IN ANNEXES I, II, VII, VIII AND IX TO DIRECTIVE 93/38 EEC

Annex I: Production, transport or distribution of drinking water

AUSTRIA

Entities of local authorities (Gemeinden) and associations of local authorities (Gemeindeverbände) producing, transporting or distributing drinking water pursuant to the Wasserversorgungsgesetze of the nine Länder.

BELGIUM

- Entity set up pursuant to the décret du 2 juillet 1987 de la région wallonne érigeant en entreprise régionale de production et d'adduction d'eau le service du ministère de la région chargé de la production et du grand transport d'eau.

- Entity set up pursuant to the arrêté du 23 avril 1986 portant constitution d'une société wallonne de distribution d'eau.

- Entity set up pursuant to the arrêté du 17 juillet 1985 de l'exécutif flamand portant fixation des statuts de la société flamande de distribution d'eau.

- Entities producing or distributing water and set up pursuant to the loi relative aux intercommunales du 22 décembre 1986.

- Entities producing or distributing water set up pursuant to the code communal, article 47 bis, ter et quater sur les régies communales.

DENMARK

Entities producing or distributing water referred to in Article 3, paragraph 3 of lovbekendtgørelse om vandforsyning mv. af 4. juli 1985.

GERMANY

- Entities producing or distributing water pursuant to the Eigenbetriebsverordnungen or Eigenbetriebsgesetze of the Länder (Kommunale Eigenbetriebe).

- Entities producing or distributing water pursuant to the Gesetze über die kommunale Gemeinschaftsarbeit oder Zusammenarbeit of the Länder.

- Entities producing water pursuant to the Gesetz über Wasser- und Bodenverbände vom 10. Februar 1937 and the Erste Verordnung über Wasser- und Bodenverbände vom 3. September 1937.

- (Regiebetriebe) producing or distributing water pursuant to the Kommunalgesetze and notably with the Gemeindeordnungen der Länder.

- Entities set up pursuant to the Aktiengesetz vom 6. September 1965, zuletzt geändert am 19. Dezember 1985, or GmbH-Gesetz vom 20. Mai 1898, zuletzt geändert am 15. Mai 1986, or having the legal status of a Kommanditgesellschaft, producing or distributing water on the basis of a special contract with regional or local authorities.

GREECE

- The Water Company of Athens/Εταιρεία Ύδρευσης - Αποχέτευσης Πρωτευούσης (Etaireia Ydrefsis Apochetefsis Protevousis) set up pursuant to Law 1068/80 of 23 August 1980.

- The Water Company of Salonica/Οργανισμός Ύδρευσης Θεσσαλονίκης (Organismos Ydrefsis Thessalonikis) operating pursuant to Presidential Decree 61/1988.

- The Water Company of Voios/Εταιρεία Ύδρευσης Βόλου (Etaireia Ydrefsis Volou) operating pursuant to Law 890/1979.

- Municipal companies/Δημοτικές Επιχειρήσεις ύδρευσης - αποχέτευσης (Dimotikes Epicheiriseis ydrefsis apochetefsis) producing or distributing water and set up pursuant to Law 1059/80 of 23 August 1980.

- Associations of local authorities/Σύνδεσμοι ύδρευσης (Syndesmoi ydrefsys) operating pursuant to the Code of local authorities Κώδικας Δήμων και Κοινοτήτων (Kodikas Dimon kai Koinotiton) implemented by Presidential Decree 76/1985.

SPAIN

- Entities producing or distributing water pursuant to Ley n° 7/1985 de 2 de abril de 1985. Reguladora de las bases del Régimen local, and to Real Decreto n° 781/1986. Texto refundido Régimen local.

- Canal de Isabel II. Ley de la Comunidad Autónoma de Madrid de 20 de diciembre de 1984.

- Mancomunidad de los Canales de Taibilla, Ley de 27 de abril de 1946.

FINLAND

Entities producing, transporting or distributing drinking water pursuant to Article 1 of Laki yleisistä vesi- ja viemärilaitoksista (982/77) of 23 December 1977.

FRANCE

Entities producing or distributing water pursuant to the:

- dispositions générales sur les régies, code des communes L 323-1 à L 328-8, R 323-1 à R 323-6 (dispositions générales sur les régies), or

- code des communes L 323-8 R 323-4 [régies directes (ou de fait)], or

- décret-loi du 28 décembre 1926, règlement d'administration publique du 17 février 1930, code des communes L 323-10 à L 323-13, R 323-75 à 323-132 (régies à simple autonomie financière), or

- code des communes L 323-9, R 323-7 à R 323-74, décret du 19 octobre 1959 (régies à personnalité morale et à autonomie financière), or

- code des communes L 324-1 à L 324-6, R 324-1 à R 324-13 (gestion déléguée, concession et affermage), or

- jurisprudence administrative, circulaire intérieure du 13 décembre 1975 (gérance), or

- code des communes R 324-6, circulaire intérieure du 13 décembre 1975 (régie intéressée), or

- circulaire intérieure du 13 décembre 1975 (exploitation aux risques et périls), or

- décret du 20 mai 1955, loi du 7 juillet 1983 sur les sociétés d'économie mixte (participation à une société d'économie mixte), or

- code des communes L 322-1 à L 322-6, R 322-1 à R 322-4 (dispositions communes aux régies, concessions et affermages).

IRELAND

Entities producing or distributing water pursuant to the Local Government (Sanitary Services) Act 1878 to 1964.

ITALY

- Entities producing or distributing water pursuant to the Testo unico delle leggi sull'assunzione diretta dei pubblici servizi da parte dei comuni e delle province approvato con Regio Decreto 15 ottobre 1925, n. 2578 and to Decreto del P.R. n. 902 del 4 ottobre 1986.

- Ente Autonomo Acquedotto Pugliese set up pursuant to RDL 19 ottobre 1919, n. 2060.

- Ente Acquedotti Siciliani set up pursuant to leggi regionali 4 settembre 1979, n. 2/2, e 9 agosto 1980, n. 81.

- Ente Sardo Acquedotti e Fognature set up pursuant to legge 5 luglio 1963 n. 9.

LUXEMBOURG

- Local authorities distributing water.

- Associations of local authorities producing or distributing water set up pursuant to the loi du 14 février 1900 concernant la création des syndicats de communes telle qu'elle a été modifiée et complétée par la loi du 23 décembre 1958 et par la loi du 29 juillet 1981 and pursuant to the loi du 31 juillet 1962 ayant pour objet le renforcement de l'alimentation en eau potable du Grand-Duché de Luxembourg à partir du réservoir d'Esch-sur-Sûre.

NETHERLANDS

Entities producing or distributing water pursuant to the Waterleidingwet van 6 april 1957, amended by the wetten van 30 juni 1967, 10 september 1975, 23 juni 1976, 30 september 1981, 25 januari 1984, 29 januari 1986.

PORTUGAL

- Empresa pública das águas livres producing or distributing water pursuant to the Decreto-Lei n.o 190/81 de 4 de Julho de 1981.

- Local authorities producing or distributing water.

SWEDEN

Local authorities and municipal companies which produce, transport or distribute drinking water pursuant to lagen (1970:244) om allmänna vatten- och avloppsanläggningar.

UNITED KINGDOM

- Water companies producing or distributing water pursuant to the Water Acts 1945 and 1989.

- The Central Scotland Water Development Board producing water and the water authorities producing or distributing water pursuant to the Water (Scotland) Act 1980.

- The Department of the Environment for Northern Ireland responsible for producing and distributing water pursuant to the Water and Sewerage (Northern Ireland) Order 1973.

Annex II: Production, transport or distribution of electricity

AUSTRIA

Entities producing, transporting or distributing electricity pursuant to the second Verstaatlichungsgesetz (BGBl. Nr. 81/1947), and the Elektrizitätswirtschaftsgesetz (BGBl. Nr. 260/1975), including the Elektrizitätswirtschaftsgesetze of the nine Länder.

BELGIUM

- Entities producing, transporting or distributing electricity pursuant to Article 5: Des régies communales et intercommunales of the loi du 10 mars 1925 sur les distributions d'énergie électrique.

- Entities transporting or distributing electricity pursuant to the loi relative aux intercommunales du 22 décembre 1986.

- EBES, Intercom, Unerg and other entities producing, transporting or distributing electricity and granted a concession for distribution pursuant to Article 8 - les concessions communales et intercommunales of the loi du 10 mars 1952 sur les distributions d'énergie électrique.

- The société publique de production d'électricité (SPÉ).

DENMARK

- Entities producing or transporting electricity on the basis of a licence pursuant to § 3, stk. 1, of the lov nr. 54 af 25. februar 1976 om elforsyning, jf. bekendtgørelse nr. 607 af 17. december 1976 om elforsyningslovens anvendelsesområde.

- Entities distributing electricity as defined in § 3, stk. 2, of the lov nr. 54 af 25. februar 1976 om elforsyning, jf. bekendtgørelse nr. 607 af 17. december 1976 om elforsyningslovens anvendelsesområde and on the basis of authorisations for expropriation pursuant to Articles 10 to 15 of the lov om elektriske stærkstrømsanlæg, jf. lovbekendtgørelse nr. 669 af 28. december 1977.

GERMANY

Entities producing, transporting or distributing electricity as defined in § 2 Absatz 2 of the Gesetz zur Förderung der Energiewirtschaft (Energiewirtschaftsgesetz) of 13 December 1935. Last modified by the Gesetz of 19 December 1977, and auto-production of electricity so far as this is covered by the field of application of the Directive pursuant to Article 2, paragraph 5.

GREECE

Δημόσια Επιχείρηση Ηλεκτρισμού (Dimosia Epicheirisi Ilektrismou) (Public Power Corporation) set up pursuant to law 1468 of 2 August 1950 Περί ιδρύσεως Δημοσίας Επιχειρήσεως Ηλεκτρισμού (Peri idryseos Dimosias Epicheiriseos Ilektrismou), and operating pursuant to law 57/85: Δομή, ρόλος και τρόπος διοίκησης και λειτουργίας της κοινωνικοποιημένης Δημόσιας Επιχείρησης Ηλεκτρισμού (Domi, rolos kai tropos dioikisis kai leitourgias tis koinonikopoiimenis Dimosias Epicheiriseos Ilektrismou).

SPAIN

- Entities producing, transporting or distributing electricity pursuant to Article 1 of the Decreto de 12 de marzo de 1954, approving the Reglamento de verificaciones eléctricas y regularidad en el suministro de energía and pursuant to Decreto 2617/1966, de 20 de octubre, sobre autorización administrativa en materia de instalaciones eléctricas.

- Red Eléctrica de España SA, set up pursuant to Real Decreto 91/1985 de 23 de enero.

FINLAND

Entities producing, transporting or distributing electricity on the basis of a concession pursuant to Article 27 of Sähkölaki (319/79) of 16 March 1979.

FRANCE

- Électricité de France, set up and operating pursuant to the loi 46/6288 du 8 avril 1946 sur la nationalisation de l'électricité et du gaz.

- Entities (sociétés d'économie mixte or régies) distributing electricity and referred to in Article 23 of loi 48/1260 du 12 août 1948 portant modification des lois 46/6288 du 8 avril 1946 et 46/2298 du 21 octobre 1946 sur la nationalisation de l'électricité et du gaz.

- Compagnie nationale du Rhône.

IRELAND

The Electricity Supply Board (ESB) set up and operating pursuant to the Electricity Supply Act 1927.

ITALY

- Ente nazionale per l'energia elettrica set up pursuant to legge n. 1643, 6 dicembre 1962 approvato con Decreto n. 1720, 21 dicembre 1965.

- Entities operating on the basis of a concession pursuant to Article 4(5) or (8) of legge 6 dicembre 1962, n. 1643 - Istituzione dell'Ente nazionale per l'energia elettrica e trasferimento ad esso delle imprese esercenti le industrie elettriche.

- Entities operating on the basis of concession pursuant to Article 20 of Decreto del Presidente delle Repubblica 18 marzo 1965, n. 342 norme integrative della legge 6 dicembre 1962, n. 1643 e norme relative al coordinamento e all'esercizio delle attività elettriche esercitate da enti ed imprese diverse dell'Ente nazionale per l'energia elettrica.

LUXEMBOURG

- Compagnie grand-ducale d'électricité de Luxembourg, producing or distributing electricity pursuant to the convention du 11 novembre 1927 concernant l'établissement et l'exploitation des réseaux de distribution d'énergie électrique dans le Grand-Duché de Luxembourg approuvée par la loi du 4 janvier 1928.

- Société électrique de l'Our (SEO).

- Syndicat de communes SIDOR.

NETHERLANDS

- Elektriciteitsproduktie Oost-Nederland.

- Elektriciteitsbedrijf Utrecht-Noord-Holland-Amsterdam (UNA).

- Elektriciteitsbedrijf Zuid-Holland (EZH).

- Elektriciteitsproduktiemaatschappij Zuid-Nederland (EPZ).

- Provinciale Zeeuwse Energie Maatschappij (PZEM).

- Samenwerkende Elektriciteitsbedrijven (SEP).

- Entities distributing electricity on the basis of a licence (vergunning) granted by the provincial authorities pursuant to the Provinciewet.

PORTUGAL

- Electricidade de Portugal (EDP), set up pursuant to the Decreto-Lei n.o 502/76 de 30 de Junho de 1976.

- Entities distributing electricity pursuant to artigo 1.o do Decreto-Lei n.o 344-B/82 de 1 de Setembro de 1982, amended by Decreto-Lei n.o 297/86 de 19 de Setembro de 1986. Entities producing electricity pursuant to Decreto-Lei n.o 189/88 de 27 de Maio de 1988.

- Independent producers of electricity pursuant to Decreto-Lei n.o 189/88 de 27 de Maio de 1988.

- Empresa de electricidade dos Açores - EDA, EP, created pursuant to the Decreto regional n.o 16/80 de 21 de Agosto de 1980.

- Empresa de electricidade da Madeira, EP, created pursuant to the Decreto-Lei n.o 12/74 de 17 de Janeiro de 1974 and regionalised pursuant to the Decreto-Lei n.o 31/79 de 24 de Fevereiro de 1979, Decreto-Lei n.o 91/79 de 19 de Abril de 1979.

SWEDEN

Entities which transport or distribute electricity on the basis of a concession pursuant to lagen (1902:71, s. 1) innefattande vissa bestämmelser om elektriska anläggningar.

UNITED KINGDOM

- Central Electricity Generating (CEGB), and the Area Electricity Boards producing, transporting or distributing electricity pursuant to the Electricity Act 1947 and the Electricity Act 1957.

- The North of Scotland Hydro-Electricity Board (NSHB), producing, transporting and distributing electricity pursuant to the Electricity (Scotland) Act 1979.

- The South of Scotland Electricity Board (SSEB) producing, transporting and distributing electricity pursuant to the Electricity (Scotland) Act 1979.

- The Northern Ireland Electricity Service (NIES), set up pursuant to the Electricity Supply (Northern Ireland) Order 1972.

Annex VII: Contracting entities in the field of urban railway, tramway, trolleybus or bus services

AUSTRIA

Entities providing transport services pursuant to the Eisenbahngesetz 1957 (BGBl. Nr. 60/1957) and the Kraftfahrliniengesetz 1952 (BGBl. Nr. 84/1952).

BELGIUM

- Societé nationale des chemins de fer vicinaux (SNCV)/Nationale Maatschappij van Buurtspoorwegen (NMB).

- Entities providing transport services to the public on the basis of a contract granted by SNCV pursuant to Articles 16 and 21 of the arrêté du 30 décembre 1946 relatif aux transports rémunérés de voyageurs par route effectués par autobus et par autocars.

- Société des transports intercommunaux de Bruxelles (STIB).

- Maatschappij van het Intercommunaal Vervoer te Antwerpen (MIVA).

- Maatschappij van het Intercommunaal Vervoer te Gent (MIVG).

- Société des transports intercommunaux de Charleroi (STIC).

- Société des transports intercommunaux de la région liégeoise (STIL).

- Société des transports intercommunaux de l'agglomération verviétoise (STIAV), and other entities set up pursuant to the loi relative à la création de sociétés de transports en commun urbains/Wet betreffende de oprichting van maatschappijen voor stedelijk gemeenschappelijk vervoer of 22 February 1962.

- Entities providing transport services to the public on the basis of a contract with STIB pursuant to Article 10 or with other transport entities pursuant to Article 11 of the arrêté royal 140 du 30 décembre 1982 relatif aux mesures d'assainissement applicables à certains organismes d'intérêt public dépendant du ministère des communications.

DENMARK

- Danske Statsbaner (DSB).

- Entities providing bus services to the public (almindelig rutekørsel) on the basis of an authorisation pursuant to lov nr. 115 af 29. marts 1978 om buskørsel.

GERMANY

Entities providing, on the basis of an authorisation, short-distance transport services to the public (Öffentlicher Personennahverkehr) pursuant to the Personenbeförderungsgesetz vom 21. März 1961, as last amended on 25 July 1989.

GREECE

- Ηλεκτροκίνητα Λεωφορεία Περιοχής Αθηνών-Πειραιώς (Ilektrokinita Leoforeia Periochis Athinon-Peiraios, Electric buses of the Athens-Piraeus area) operating pursuant to Decree 768/1970 and Law 588/1977.

- Ηλεκτρικοί Σιδηρόδρομοι Αθηνών-Πειραιώς (Ilektrikoi Sidirodromoi Athinon-Peiraios, Athen-Piraeus electric railways) operating pursuant to Laws 352/1976 and 588/1977.

- Επιχείρηση Αστικών Συγκοινωνιών (Epicheirisi Astikon Sygkoinonion, Enterprise of urban transport) operating pursuant to Law 588/1977.

- Κοινό Ταμείο Εισπράξεως Λεωφορείων (Koino Tameio Eispraxeos Leoforeion, Joint receipts fund of buses) operating pursuant to Decree 102/1973.

- ΡΟΔΑ (Δημοτική Επιχείρηση Λεωφορείων Ρόδου) (Dimotiki Epicheirisi Leoforeion Rodou): Municipal bus enterprise in Rhodes.

- Οργανισμός Αστικών Συγκοινωνιών Θεσσαλονίκης (Organismos Astikon Sygkoinonion Thessalonikis, Urban transport organisation of Thessaloniki) operating pursuant to Decree 3721/1957 and Law 716/1980.

SPAIN

- Entities providing transport services to the public pursuant to the Ley de régimen local.

- Corporación metropolitana de Madrid.

- Corporación metropolitana de Barcelona.

- Entities providing urban or interurban bus services to the public pursuant to Articles 113 to 118 of the Ley de ordenación de transportes terrestres de 31 de julio de 1987.

- Entities providing bus services to the public, pursuant to Article 71 of the Ley de ordenación de transportes terrestres de 31 de julio de 1987.

- FEVE, RENFE (or Empresa Nacional de Transportes de Viajeros por Carretera) providing bus services to the public pursuant to the Disposiciones adicionales. Primera, de la Ley de ordenación de transportes terrestres de 31 de julio de 1957.

- Entities providing bus services to the public pursuant to Disposiciones transitorias, Tercera, de la Ley de ordenación de transportes terrestres de 31 de julio de 1957.

FINLAND

Public or private entities operating bus services according to Laki (343/91) luvanvaraisesta henkilöliikenteestä tiellä and Helsingin kaupungin liikennelaitos / Helsingfors stads trafikverk (Helsinki Transport Board), which provides metro and tramway services to the public.

FRANCE

- Entities providing transport services to the public pursuant to Articles 7 to 11 of loi n° 82-1153 du 30 décembre 1982, transports intérieurs, orientation.

- Régie autonome des transports parisiens, société nationale des chemins de fer français, APTR, and other entities providing transport services to the public on the basis of an authorisation granted by the syndicat des transports parisiens pursuant to the ordonnance de 1959 et ses décrets d'application relatifs à l'organisation des transports de voyageurs dans la région parisienne.

IRELAND

- Iarnrod Éireann (Irish Rail).

- Bus Éireann (Irish Bus).

- Bus Átha Cliath (Dublin Bus).

- Entities providing transport services to the public pursuant to the amended Road Transport Act 1932.

ITALY

- Entities providing transport services of a concession pursuant to Legge 28 settembre 1939, n. 1822 - Disciplina degli autoservizi di linea (autolinee per viaggiatori, bagagli e pacchi agricoli in regime di concessione all'industria privata) - Article 1 as modified by Article 45 of Decreto del Presidente della Repubblica 28 giugno 1955, n. 771.

- Entities providing transport services to the public pursuant to Article 1(15) of Regio Decreto 15 ottobre 1925, n. 2578 - Approvazione del Testo unico della legge sull'assunzione diretta dei pubblici servizi da parte dei comuni e delle province.

- Entities operating on the basis of a concession pursuant to Article 242 or 255 of Regio Decreto 9 maggio 1912, n. 1447, che approva il Testo unico delle disposizioni di legge per le ferrovie concesse all'industria privata, le tramvie a trazione meccanica e gli automobili.

- Entities or local authorities operating on the basis of a concession pursuant to Article 4 of Legge 14 giugno 1949, n. 410, concorso dello Stato per la riattivazione dei pubblici servizi di trasporto in concessione.

- Entities operating on the basis of a concession pursuant to Article 14 of Legge 2 agosto 1952, n. 1221 - Provvedimenti per l'esercizio ed il potenziamento di ferrovie e di altre linee di trasporto in regime di concessione.

LUXEMBOURG

- Chemins de fer du Luxembourg (CFL).

- Service communal des autobus municipaux de la ville de Luxembourg.

- Transports intercommunaux du canton d'Esch-sur-Alzette (TICE).

- Bus service undertakings operating pursuant to the règlement grand-ducal du 3 février 1978 concernant les conditions d'octroi des autorisations d'établissement et d'exploitation des services de transports routiers réguliers de personnes rémunérés.

NETHERLANDS

Entities providing transport services to the public pursuant to Chapter II (Openbaar vervoer) of the Wet Personenvervoer van 12 maart 1987.

PORTUGAL

- Rodoviária nacional, EP.

- Companhia Carris de ferro de Lisboa.

- Metropolitano de Lisboa, EP.

- Serviços de transportes colectivos do Porto.

- Serviços municipalizados de transporte do Barreiro.

- Serviços municipalizados de transporte de Aveiro.

- Serviços municipalizados de transporte de Braga.

- Serviços municipalizados de transporte de Coimbra.

- Serviços municipalizados de transporte de Portalegre.

SWEDEN

Entities operating urban railway or tramway services according to lagen (1978:438) om huvudmannaskap för viss kollektiv persontrafik and lagen (1990:1157) om järnvägssäkerhet. Public or private entities operating a trolley bus or bus service in accordance with lagen (1978:438) om huvudmannaskap för viss kollektiv persontrafik and lagen (1983:293) om yrkestrafik.

UNITED KINGDOM

- Entities providing bus services to the public pursuant to the London Regional Transport Act 1984.

- Glasgow Underground.

- Greater Manchester Rapid Transit Company.

- Docklands Light Railway.

- London Underground Ltd.

- British Railways Board.

- Tyne and Wear Metro.

Annex VIII: Contracting entities in the field of airport facilities

AUSTRIA

- Austro Control GmbH.

- Entities as defined in Articles 60 to 80 of the Luftfahrtgesetz 1957 (BGBl. Nr. 253/1957).

BELGIUM

Régie des voies aériennes set up pursuant to the arrêté-loi du 20 novembre 1946 portant création de la régie des voies aériennes amended by arrêté royal du 5 octobre 1970 portant refonte du statut de la règie des voies aériennes.

DENMARK

Airports operating on the basis of an authorisation pursuant to § 55, stk. 1, i lov om luftfart, jf. lovbekendtgørelse nr. 408 af 11. september 1985.

GERMANY

Airports as defined in Article 38(2) of the Luftverkehrszulassungsordnung vom 19. März 1979, as last amended by the Verordnung vom 21. Juli 1986.

GREECE

- Airports operating pursuant to law 517/1931 setting up the civil aviation service [Υπηρεσία Πολιτικής Αεροπορίας (ΥΠΑ) (Ypiresia Politikis Aeroporias (YPA)].

- International airports operating pursuant to presidential decree 647/981.

SPAIN

Airports managed by Aeropuertos Nacionales operating pursuant to the Real Decreto 278/1982 de 15 de octubre de 1982.

FINLAND

Airports managed by Ilmailulaitos/Luftfartsverket pursuant to Ilmailulaki (595/64).

FRANCE

- Aéroports de Paris operating pursuant to titre V, articles L 251-1 à 252-1 du code de l'aviation civile.

- Aéroport de Bâle-Mulhouse, set up pursuant to the convention franco-suisse du 4 juillet 1949.

- Airports as defined in article L 270-1, code de l'aviation civile.

- Airports operating pursuant to the cahier des charges type d'une concession d'aéroport, décret du 6 mai 1955.

- Airports operating on the basis of a convention d'exploitation pursuant to article L 221, code de l'aviation civile.

IRELAND

- Airports of Dublin, Cork and Shannon managed by Aer Rianta-Irish Airports.

- Airports operating on the basis of a Public-use Licence granted, pursuant to the Air Navigation and Transport Act No 23 1936, the Transport Fuel and Power Transfer of Departmental, Administration and Ministerial Functions Order 1959 (SI No 125 of 1959) and the Air Navigation (Aerodromes and Visual Ground Aids) Order 1970 (SI No 291 of 1970).

ITALY

- Civil Stat. airports (aerodroal civili istituiti dallo Stato referred to in Article 692 of the Codice della navigazione, Regio Decreto 30 marzo 1942, n. 327.

- Entities operating airport facilities on the basis of a concession granted pursuant to Article 694 of the Codice della navigazione, Regio Decreto 30 marzo 1942, n. 327.

LUXEMBOURG

Aéroport de Findel.

NETHERLANDS

Airports operating pursuant to Articles 18 and following of the Luchtvaartwet of 15 January 1958, amended on 7 June 1978.

PORTUGAL

- Airports managed by Aeroportos de navegação aérea (ANA), EP pursuant to Decreto-Lei n.o 246/79.

- Aeroporto do Funchal and Aeroporto de Porto Santo, regionalised pursuant to the Decreto-Lei n.o 284/81.

SWEDEN

- Publicly owned and operated airports in accordance with lagen (1957:297) om luftfart.

- Privately owned and operated airports with an exploitation permit under the act, where this permit corresponds to the criteria of Article 2(3) of the Directive.

UNITED KINGDOM

Airports managed by British Airports Authority plc. Airports which are public limited companies (plc) pursuant to the Airports Act 1986.

Annex IX: Contracting entities in the field of maritime or inland port or other terminal facilities

AUSTRIA

Inland ports owned totally or partially by Länder and/or Gemeinden.

BELGIUM

- Société anonyme du canal et des installations maritimes de Bruxelles.

- Port autonome de Liège.

- Port autonome de Namur.

- Port autonome de Charleroi.

- Port de la ville de Gand.

- Compagnie des installations maritimes de Bruges - Maatschappij der Brugse haveninrichtingen.

- Société intercommunale de la rive gauche de l'Escaut - Intercommunale maatschappij van de linker Scheldeoever (Port d'Anvers).

- Port de Nieuwport.

- Port d'Ostende.

DENMARK

Ports as defined in Article 1, I to III of the bekendtgørelse nr. 604 af 16. december 1985 om, hvilke havne der er omfattet af lov om trafikhavne, jf. lov nr. 239 af 12. maj 1976 om trafikhavne.

GERMANY

- Seaports owned totally or partially by territorial authorities (Länder, Kreise, Gemeinden).

- Inland ports subject to the Hafenordnung pursuant to the Wassergesetze der Länder.

GREECE

- Οργανισμός Λιμένος Πειραιώς/Piraeus port (Organismos Limenos Peiraios) set up pursuant to Emergency Law 1559/1950 and Law 1630/1951.

- Οργανισμός Λιμένος Θεσαλονίκης/Thessaloniki port (Organismos Limenos Thessalonikis) set up pursuant to Decree N.A. 2251/1953.

- Other ports governed by presidential Decree 649/1977 (NA. 649/1977) Εποπτεία, οργάνωση λειτουργίας, διοικητικός έλεγχος λιμένων (Epopteia, organosi leitourgias dioikitikos elenchos limenon, supervision, organisation of functioning and administrative control).

SPAIN

- Puerto de Huelva set up pursuant to the Decreto de 2 de octubre de 1969, n° 2380/69. Puertos y Faros. Otorga Régimen de Estatuto de Autonomía al Puerto de Huelva.

- Puerto de Barcelona set up pursuant to the Decreto de 25 de agosto de 1978, n° 2407/78. Puertos y Faros. Otorga al de Barcelona Régimen de Estatuto de Autonomía.

- Puerto de Bilbao set up pursuant to the Decreto de 25 de agosto de 1978, n° 2048/78. Puertos y Faros. Otorga al de Bilbao Régimen de Estatuto de Autonomía.

- Puerto de Valencia set up pursuant to the Decreto de 25 de agosto de 1978, n° 2409/78. Puertos y Faros. Otorga al de Valencia Régimen de Estatuto de Autonomía.

- Juntas de Puertos operating pursuant to the Ley 27/68 de 20 de junio de 1968. Puertos y Faros. Juntas de Puertos y Estatutos de Autonomía and to the Decreto de 9 de abril de 1970, n° 1350/70. Juntas de Puertos. Reglamento.

- Ports managed by the Comisión Administrativa de Grupos de Puertos, operating pursuant to the Ley 27/68 de 20 de junio de 1968, Decreto 1958/78 de 23 de junio de 1978 and Decreto 571/81 de 6 de mayo de 1981.

- Ports listed in the Real Decreto 989/82 de 14 de mayo de 1982. Puertos. Clasificación de los de interés general.

FINLAND

- Ports operating pursuant to Laki kunnallisista satamajärjestyksistä ja liikennemaksuista (955/76).

- Saimaa Canal (Saimaan kanavan hoitokunta).

FRANCE

- Port autonome de Paris set up pursuant to loi 68-917 du 24 octobre 1968 relative au port autonome de Paris.

- Port autonome de Strasbourg set up pursuant to the convention du 20 mai 1923 entre l'État et la ville de Strasbourg relative à la constitution du port rhénan de Strasbourg et à l'exécution de travaux d'extension de ce port, approved by the loi du 26 avril 1924.

- Other inland waterway ports set up or managed pursuant to Article 6 (navigation intérieure) of the décret 69-140 du 6 février 1969 relatif aux concessions d'outillage public dans les ports maritimes.

- Ports autonomes operating pursuant to articles L 111-1 et suivants of the code des ports maritimes.

- Ports non autonomes operating pursuant to articles R 121-1 et suivants of the code des ports maritimes.

- Ports managed by regional authorities (départements) or operating pursuant to a concession granted by the regional authorities (départements) pursuant to Article 6 of loi 86-663 du 22 juillet 1983 complétant la loi 83-8 du 7 janvier 1983 relative à la répartition de compétences entre les communes, les départements et l'État.

IRELAND

- Ports operating pursuant to the Harbour Acts 1946 to 1976.

- Port of Dun Laoghaire operating pursuant to the State Harbours Act 1924.

- Port of Rosslare Harbour operating pursuant to the Finguard and Rosslare Railways and Harbours Act 1899.

ITALY

- State ports and other ports managed by the Capitaneria di Porto pursuant to the Codice della navigazione, Regio Decreto 30 marzo 1942, n. 32.

- Autonomous ports (enti portuali) set up by special laws pursuant to Article 19 of the Codice della navigazione, Regio Decreto 30 marzo 1942, n. 327.

LUXEMBOURG

Port de Mertert set up and operating pursuant to loi du 22 juillet 1963 relative à l'aménagement et à l'exploitation d'un port fluvial sur la Moselle.

NETHERLANDS

- Havenbedrijven, set up and operating pursuant to the Gemeentewet van 29 juni 1851.

- Havenschap Vlissingen, set up by wet van 10 september 1970 houdende een gemeenschappelijke regeling tot oprichting van het Havenschap Vlissingen.

- Havenschap Terneuzen, set up by wet van 8 april 1970 houdende een gemeenschappelijke regeling tot oprichting van het Havenschap Terneuzen.

- Havenschap Delfzijl, set up by wet van 31 juli 1957 houdende een gemeenschappelijke regeling tot oprichting van het Havenschap Delfzijl.

- Industrie- en havenschap Moerdijk, set up by gemeenschappelijke regeling tot oprichting van het Industrie- en havenschap Moerdijk van 23 oktober 1970, approved by Koninklijk Besluit nr. 23 van 4 maart 1972.

PORTUGAL

- Porto de Lisboa set up pursuant to Decreto real de 18 de Fevereiro de 1907 and operating pursuant to Decreto-Lei n.o 36976 de 20 de Julho de 1948.

- Porto do Douro e Leixões set up pursuant to Decreto-Lei n.o 36977 de 20 de Julho de 1948.

- Porto de Sines set up pursuant to Decreto-Lei n.o 508/77 de 14 de Dezembro de 1977.

- Portos de Setúbal, Aveiro, Figueira da Foz, Viana do Castelo, Portimão e Faro operating pursuant to Decreto-Lei n.o 37754 de 18 de Fevereiro de 1950.

SWEDEN

Ports and terminal facilities according to lagen (1983:293) om inrättande, utvidgning och avlysning av allmän farled och allmän hamn förordningen (1983:744) om trafiken på Göta kanal.

UNITED KINGDOM

Harbour Authorities within the meaning of Section 57 of the Harbours Act 1964 providing port facilities to carriers by sea or inland waterway.

Section 3

Subcentral government entities

None.

(1) Only non-warlike materials listed in Annex VII, Part B.

(2) Postal services referred to in the Law of 24 December 1993.

(3) Only non-warlike materials listed in Annex VII, Part B.

(4) Only Post Offices ("Postes").

(5) Only non-warlike materials listed in Annex VII, Part B.

(6) Only non-warlike materials listed in Annex VII, Part B.

(7) Only non-warlike materials listed in Annex VII, Part B.

(8) Entities listed in Annex VI to Council Directive 93/38/EEC are not included.

ANNEX VII

COVERED GOODS

(referred to in Article 25)

PART A

LIST OF GOODS COVERED BY MEXICO

This Title applies to all goods. However, for procurement by the Secretaría de la Defensa Nacional and the Secretaría de Marina only the following goods are included in the coverage of this Title:

>TABLE>

Note:

numbers refer to the Federal Supply Classification codes

PART B

LIST OF GOODS COVERED BY THE COMMUNITY

This Title applies to all goods, unless otherwise indicated elsewhere in this Title or its Annexes. However, for procurement by the Ministries of Defence in Austria, Belgium, Denmark, the Federal Republic of Germany, Spain, Finland, France, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Sweden and the United Kingdom, only the following list of supplies and equipment is covered by this Title:

>TABLE>

(Harmonised System codes)

ANNEX VIII

COVERED SERVICES

(referred to in Article 25)

PART A

LIST OF SERVICES COVERED BY MEXICO

This Title applies to all services set out below that are procured by the entities listed in Part A of Annex VI.

>TABLE>

Note:

Based on the United Nations Central Product Classification (CPC)

PART B

LIST OF SERVICES COVERED BY THE COMMUNITY

This Title applies to all services set out below that are procured by the entities listed in Part B of Annex VI.

>TABLE>

ANNEX IX

COVERED CONSTRUCTION SERVICES

(referred to in Article 25)

Part A

LIST OF CONSTRUCTION SERVICES COVERED BY MEXICO

This Title applies to all construction services set out below that are procured by the entities listed in Part A of Annex VI.

Construction work codes

Note:

Based on the United Nations Central Product Classification (CPC) Division 51.

Definition of construction work: pre-erection work; new construction and repair, alteration, restoration and maintenance work on residential buildings, non-residential buildings or civil engineering works. This work can be carried out either by general contractors who do the complete construction work for the owner of the project, or on own account; or by subcontracting parts of the construction work to contractors specialising, e.g., in installation work, where the value of work done by subcontractors becomes part of the main contractor's work. The products classified here are services which are essential in the production process of the different types of constructions, the final output of construction activities.

>TABLE>

PART B

LIST OF CONSTRUCTION SERVICES COVERED BY THE COMMUNITY

This Title applies to all construction services set out below that are procured by the entities listed in Part B of Annex VI.

Definition: For the purposes of Part B of this Annex, a construction service contract is a contract which has as its objective the execution by whatever means of civil or building works, in the sense of Division 51 of the Central Product Classification.

List of Division 51 OF THE CPC

>TABLE>

ANNEX X

THRESHOLDS

(referred to in Article 25)

PART A

THRESHOLDS APPLICABLE TO MEXICO

1. The thresholds for procurement, by entities listed under Section 1 of Annex VI.A (Federal Government entities) are:

- USD 100000 for goods or services specified in Annexes VII, VIII, or any combination thereof, and

- USD 6500000 for construction services specified in Annex IX.

2. The thresholds for procurements by entities listed under Section 2 of Annex VI.A (Government enterprises) are:

- USD 250000 for goods or services specified in Annexes VII, VIII, or any combination thereof, and

- USD 8000000 for construction services specified in Annex IX.

3. However, in order to provide equivalence to the current value of the thresholds applied in the context of the North American Free Trade Agreement (NAFTA), Mexico shall, from the entry into force of this Decision, apply the actual NAFTA thresholds instead of those mentioned in points 1 and 2.

PART B

THRESHOLDS APPLICABLE TO THE COMMUNITY

1. The thresholds for procurements by entities listed under Section 1 of Annex VI.B (Central Government entities) are:

- SDR 130000 for supplies,

- SDR 130000 for services specified in Annex VIII, and

- SDR 5000000 for works specified in Annex IX.

2. The thresholds for procurement by entities listed under Section 2 of Annex VI.B are:

- SDR 400000 for supplies,

- SDR 400000 for services specified in Annex VIII, and

- SDR 5000000 for works specified in Annex IX.

PART C

GENERAL NOTES

1. Mexico shall calculate and convert the value of the thresholds into pesos using the the conversion rate of the Banco de Mexico. Its conversion rate shall be the existing value of the Mexican peso in terms of the US dollar as of 1 December and 1 June of each year, or the first working day thereafter. The conversion rate as of 1 December shall apply from 1 January to 30 June of the following year, and the conversion rate as of 1 June shall apply from 1 July to 31 December of that year.

2. The Community shall calculate and convert the value of the thresholds into euros using the conversion rate of the European Central Bank. Its conversion rate shall be the existing value of the euro in terms of SDRs as of 1 December and 1 June of each year, or the first working day thereafter. The conversion rate as of 1 December shall apply from 1 January to 30 June of the following year, and the conversion rate as of 1 June shall apply from 1 July to 31 December of that year.

3. Mexico and the Community shall notify each other of the value, in their respective currencies, of the newly calculated thresholds no later than one month before the respective thresholds take effect.

ANNEX XI

GENERAL NOTES

(referred to in Article 25)

PART A

GENERAL NOTES AND DEROGATIONS GOVERNING MEXICO'S OFFER SET OUT IN ANNEXES VI THROUGH X

Section 1

Transitional provisions

Notwithstanding any other provision of this Title, Annexes VI to X are subject to the following transitional provisions:

Pemex, CFE and non-energy construction

1. Mexico may set aside from the obligations of this Title for each calendar year following the entry into force of this Title the respective percentage specified in paragraph 2 of:

(a) the total value of procurement contracts for goods and services and any combination thereof and construction services procured by Pemex in the year that are above the thresholds set out in Annex X;

(b) the total value of procurement contracts for goods and services and any combination thereof and construction services procured by CFE in the year that are above the thresholds set out in Annex X; and

(c) the total value of procurement contracts for construction services procured in the year that are above the thresholds set out in Annex X, excluding procurement contracts for construction services procured by Pemex and CFE.

2.

>TABLE>

3. The value of procurement contracts that are financed by loans from regional and multilateral financial institutions shall not be included in the calculation of the total value of procurement contracts under paragraphs 1 and 2. Procurement contracts that are financed by such loans shall also not be subject to any restrictions set out in this Title.

4. Mexico shall ensure that the total value of the procurement contracts under any single FSC class (or other classification system agreed by the Parties) that are set aside by Pemex or CFE under paragraphs 1 and 2 for any calendar year does not exceed 15 % of the total value of the procurement contracts that may be set aside by Pemex or CFE for that year.

5. Mexico shall ensure that after 31 December of the fourth year following the entry into force of this Title, Pemex and CFE each shall make all reasonable efforts to assure that the total value of procurement contracts under any single FSC class (or other classification system as agreed by the Parties) that are set aside by Pemex or CFE under paragraphs 1 and 2 for any year does not exceed 50 % of the total value of all Pemex or CFE procurement contracts under that FSC class (or other classification system as agreed by the Parties) for that year.

Pharmaceuticals

6. Until 1 January of the eighth year following its entry into force, this Title shall not apply to the procurement by the Secretaría de Salud, IMSS, ISSSTE, Secretaría de la Defensa Nacional and the Secretaría de Marina of drugs that are not currently patented in Mexico or whose Mexican patents have expired. Nothing in this paragraph shall prejudice protection of intellectual property rights.

Section 2

Permanent provisions

1. This Title does not apply to procurements made:

(a) with a view to commercial resale by Government owned retail stores;

(b) pursuant to loans from regional or multilateral financial institutions to the extent that different procedures are imposed by such institutions (except for national content requirements);

(c) by one entity from another entity of Mexico; or

(d) for the purchase of water and for the supply of energy or of fuels for the production of energy.

2. This Title does not apply to public utility services (including telecommunication, transmission, water and energy services).

3. This Title does not apply to any transportation services including: land transportation (CPC 71); water transport (CPC 72); air transport (CPC 73); supporting and auxiliary transport (CPC 74); post and telecommunication (CPC 75); repair services of other transport equipment, on a fee or contractual basis (CPC 8868).

4. This Title does not apply to the procurement of transportation services that form a part of, or are incidental to, a procurement contract.

5. This Title does not apply to financial services; research and development services; and management and operation contracts awarded to federally funded research and development centres or related to carrying out government, sponsored research programs.

6. Notwithstanding any other provision in this Title, Mexico may set aside procurement contracts from the obligations of this Title, subject to the following:

(a) the total value of the contracts set aside may not exceed the Mexican peso equivalent of:

(i) USD 1,0 billion in each year until 31 December of the seventh year following the entry into force of this Title, which may be allocated by all entities except Pemex and CFE;

(ii) USD 1,8 billion in each year beginning 1 January of the eighth year following the entry into force of this Title, which may be allocated by all entities;

(b) no entity subject to subparagraph (a) may set aside contracts in any year of a value of more than 20 % of the total value of contracts that may be set aside for that year.

(c) the total value of the contracts set aside by Pemex or CFE may not exceed the Mexican peso equivalent of USD 720 million in each calendar year, beginning 1 January of the eighth year following the entry into force of this Title.

7. Beginning one year after the date of entry into force of this Title, the dollar values referred to in paragraph 6 shall be adjusted annually for cumulative inflation from the date of entry into force of this Title, based on the implicit price deflator for the United States Gross Domestic Product (USGDP) or any successor index published by the Council of Economic Advisors in Economic Indicators.

The dollar values adjusted for cumulative inflation up to January of each year following 2000 shall be equal to the original dollar values multiplied by the ratio of:

(a) the implicit USGDP price deflator or any successor index published by the Council of Economic Advisors in Economic Indicators, current as of January of that year, to

(b) the implicit USGDP price deflator or any successor index published by the Council of Economic Advisors in Economic Indicators, current as of the date of entry into force of this Title,

provided that the price deflators under subparagraph (a) and (b) have the same base year. The resulting adjusted dollar values shall be rounded to the nearest million dollars.

8. The national security exception provided for in Article 13 of the Agreement covers procurements made in support of safeguarding nuclear materials or technology.

9. Notwithstanding any other provision of this Title, an entity may impose a local content requirement of no more than:

(a) 40 % for labour-intensive turnkey or major integrated projects; or

(b) 25 % for capital-intensive turnkey or major integrated projects.

For purposes of this paragraph, a "turnkey or major integrated project" means, in general, a construction, supply or installation project undertaken by a person pursuant to a right granted by an entity with respect to which:

(a) the prime contractor is vested with the authority to select the general contractors or subcontractors;

(b) neither the Government of Mexico nor its entities fund the project;

(c) the person bears the risks associated with non-performance; and

(d) the facility will be operated by an entity or through a procurement contract of that entity.

10. Notwithstanding the thresholds set out in Annex X, Article 26 applies to any procurement from locally-established suppliers of oil and gas field supplies or equipment by Pemex at any project site where it performs works.

11. In the event that Mexico exceeds in any given year the total value of contracts it may set aside for that year in accordance with point 6 or points 1, 2 and 4 of Section 1, Mexico shall consult with the Community with a view to agreement on compensation in the form of additional procurement opportunities during the following year. The consultations shall be without prejudice to the rights of any Party under Title VI.

12. Nothing in this Title shall be construed to require Pemex to enter into risk-sharing contracts.

PART B

GENERAL NOTES AND DEROGATIONS GOVERNING THE COMMUNITY'S OFFER SET OUT IN ANNEXES VI TO X

1. This Title shall not apply to contracts awarded under:

(a) an international agreement and intended for the joint implementation or exploitation of a project by the signatory Parties;

(b) an international agreement relating to the stationing of troops;

(c) the particular procedure of an international organisation; or

(d) aid programmes maintained by the Community or its Member States to the benefit of third countries.

2. This Title shall not apply to procurement of agricultural products made in furtherance of agricultural support programmes and human feeding programmes.

3. This Title shall not apply to procurements by entities in Sections 1 and 3 of Annex VI.B in connection with activities in the fields of drinking water, energy, transport or telecommunications.

4. This Title shall not apply to contracts awarded by entities in Section 2 of Annex VI.B:

(a) for the purchase of water and for the supply of energy or of fuels for the production of energy;

(b) for purposes other than the pursuit of their activities as described in this Annex or for the pursuit of such activities in a non-member country;

(c) for purposes of resale or hire to third parties, provided that the contracting entity enjoys no special or exclusive right to sell or hire the subject of such contracts and other entities are free to sell or hire it under the same conditions as the contracting entity.

5. This Title shall not apply to contracts:

(a) for the acquisition or rental of land, existing buildings, or other immovable property or concerning rights thereon;

(b) for the acquisition, development, production or coproduction of programme material by broadcasters and contracts for broadcasting time.

6. The provision of services, including construction services, in the context of procurement procedures according to this Title is subject to the conditions and qualifications for market access and national treatment as will be required by Austria in conformity with its commitments under the General Agreement on trade in services of the WTO.

7. This Title shall not apply to contracts awarded to an entity in Finland which itself is a contracting authority within the meaning of the Public Procurement Act: "Laki julkisista hankinnoista" (1505/92), or in Sweden within the meaning of the "Lag om offentlig upphandling" (1992:1528), on the basis of an exclusive right which it enjoys pursuant to a law, regulation or administrative provision or to contracts of employment in Finland and Sweden, respectively.

8. When a specific procurement may impair important national policy objectives, the Finnish or Swedish Governments, respectively, may consider it necessary in singular procurement cases to deviate from the principle of national treatment in this Title. A decision to this effect will be taken at Cabinet level. Finland also reserves its position with regard to the application of this Title to the Åland Islands (Ahvenanmaa).

ANNEX XII

PROCUREMENT PROCEDURES AND OTHER PROVISIONS

(Referred to in Article 29)

Part A

NAFTA PROVISIONS APPLICABLE TO MEXICO

>TABLE>

Part B

GPA PROVISIONS APPLICABLE TO THE COMMUNITY

>TABLE>

ANNEX XIII

PUBLICATIONS

(Referred to in Article 31)

This Annex contains the publications utilised by Parties for the publication of laws, regulations, judicial decisions, administrative rulings of general application, including invitations to participate and qualification of suppliers and any procedure regarding government procurement covered by this Decision.

PART A

MEXICO

Diario Oficial de la Federación

Semanario Judicial de la Federación (sólo para jurisprudencia)

PART B

EUROPEAN COMMUNITY

European Communities

Official Journal of the European Communities

Austria

Österreichisches Bundesgesetzblatt, Amtsblatt zur Wiener Zeitung

Sammlung von Entscheidungen des Verfassungsgerichtshofes

Sammlung der Entscheidungen des Verwaltungsgerichtshofes - administrativrechtlicher und finanzrechtlicher Teil

Amtliche Sammlung der Entscheidungen des OGH in Zivilsachen

Belgium

Laws, royal regulations, ministerial regulations, ministerial circulars: Le Moniteur belge

Jurisprudence: Pasicrisie

Denmark

Laws and regulations: Lovtidende

Judicial decisions: Ugeskrift for Retsvaesen

Administrative rulings and procedures: Ministerialtidende

Rulings by the Appeal Board for Public Procurement: Konkurrencerådets Dokumentation

Germany

Legislation and regulations: Bundesanzeiger, Herausgeber: der Bundesminister der Justiz

Judicial decisions: Entscheidungssammlungen des Bundesverfassungsgerichts, Bundesgerichtshofs, Bundesverwaltungsgerichts, Bundesfinanzhofs sowie der Oberlandesgerichte

Spain

Legislation: Boletín Oficial del Estado

Judicial rulings: no official publication

France

Legislation: Journal officiel de la République française

Jurisprudence: Recueil des arrêts du Conseil d'État

Revue des marchés publics

Greece

Government Gazette of Greece: Επίσημη Εφημερίδα των Ευρωπαϊκών Κοινοτήτων

Ireland

Legislation and regulations: Iris Oifigiúil (Official Gazette of the Irish Government)

Italy

Legislation: Gazzetta ufficiale

Jurisprudence: no official publication

Luxembourg

Legislation: Mémorial

Jurisprudence: Pasicrisie

Netherlands

Legislation: Nederlandse Staatscourant and/or Staatsblad

Jurisprudence: no official publication

Portugal

Legislation: Diário da República Portuguesa 1a Série A e 2a série

Judicial Publications: Boletim do Ministério da Justiça

Colectânea de Acordos do Supremo Tribunal Administrativo;

Colectânea de Jurisprudência das Relações

Finland

Suomen Säädöskokoelma - Finlands Författningssamling (The collection of the statutes of Finland)

Sweden

Svensk författningssamling (Swedish code of statutes)

United Kingdom

Legislation: HM Stationery Office

Jurisprudence: Law Reports

Public Bodies: HM Stationery Office

ANNEX XIV

FORMAT FOR INFORMATION TO BE EXCHANGED IN ACCORDANCE WITH ARTICLE 38(2)

(referred to in Article 38)

1. The Community shall complete an indicative list of 150 public authorities or public undertakings covered by Annex VI.B.2 and provide the statistical information for those entities in accordance with the format contained in this Annex. The entities contained in this list shall be representative of the coverage offered under that Annex in terms of geographical location and sectorial distribution.

2. After having received this information, Mexico shall provide information on the entities covered in Annex VI.A.2 in the format established in this Annex.

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ANNEX XV

(referred to in Article 39)

CHAPTER I

GENERAL PROVISIONS

Article 1

Objectives

1. The Parties undertake to apply their respective competition laws so as to avoid that the benefits of this Decision may be diminished or cancelled out by anti-competitive activities.

2. The objectives of this mechanism are:

(a) to promote cooperation and coordination between the Parties regarding the application of their competition laws in their respective territories and to provide mutual assistance in any fields of competition they consider necessary;

(b) to eliminate anticompetitive activities by applying the appropriate legislation, in order to avoid adverse effects on trade and economic development, as well as the possible negative impact that such activities may have on the other Party's interests; and

(c) to promote cooperation in order to clarify any differences in the application of their respective competition laws.

3. The Parties shall give the following aspects particular attention in implementing the present mechanism, with a view to preventing distortions or restrictions on competition which may affect trade conducted between the Community and Mexico:

(a) for the Community: the agreements between companies, decisions to form an association between companies and concerted practices between companies, the abuse of a dominant position and mergers; and

(b) for Mexico the absolute or relative monopolistic practices and mergers.

Article 2

Definitions

For the purpose of this Annex:

(a) "competition laws"; include:

(i) for the Community, Articles 81, 82, 85 and 86 of the Treaty establishing the European Community, Council Regulation (EEC) No 4064/89 on the control of concentrations between undertakings, Articles 65 and 66 of the Treaty establishing the European Coal and Steel Community (ECSC), and their implementing Regulations, including High Authority Decision No 24/54;

(ii) for Mexico, the Ley Federal de Competencia of December 24, 1992, Reglamento Interior de la Comisión Federal de Competencia of August 28, 1998 and the Reglamento de la Ley Federal de Competencia of March 4, 1998; and

(iii) any amendments that the above mentioned legislation may undergo; and

(iv) it may also include additional legislation to the extent it may have implications to competition in terms of this mechanism;

(b) "competition authority" means:

(i) for the Community, the Commission of the European Communities, and

(ii) for Mexico, Comisión Federal de Competencia;

(c) "enforcement activities" means any application of competition law by way of investigation or proceeding conducted by the competition authorities of a Party, which may result in penalties or remedies;

(d) "anticompetitive activities" and "conduct and practices which restrict competition" mean any conduct, transaction or act as defined under the competition laws of a Party, which is subject to penalties or remedies.

CHAPTER II

COOPERATION AND COORDINATION

Article 3

Notification

1. Each competition authority shall notify the competition authority of the other Party an enforcement activity if:

(a) it is relevant to enforcement activities of the other Party;

(b) it may affect the other Party's important interests;

(c) it relates to restrictions on competition which may affect the territory of the other Party; and

(d) decisions may be adopted conditioning or prohibiting action in the territory of the other Party.

2. To the extent possible, and provided that this is not contrary to the Parties' competition laws and does not adversely affect any investigation being carried out, notification shall take place during the initial phase of the procedure, to enable the notified competition authority to express its opinion. The opinions received may be taken into consideration by the other competition authority when taking decisions.

3. The notifications provided for in paragraph 1 shall be detailed enough to permit an evaluation in the light of the interests of the other Party. Notifications shall include, inter alia the following information:

(a) a description of the restrictive effects of the transaction on competition and the applicable legal basis;

(b) the relevant market for the product or service and its geographical scope, the characteristics of the economic sector concerned and data on the economic agents involved in the transaction; and

(c) the estimated deadlines for resolution, in cases in which the procedure has been initiated, and to the extent possible an indication of its probable outcome, and of the measures which may be taken or provided for.

4. Each competition authority shall notify the competition authority of the other Party as soon as possible of the existence of measures, other than enforcement activities, which could affect that other Party important interests, bearing in mind the provision laid down in paragraph 1. In particular they shall do so in the following cases:

(a) administrative or judicial proceedings; and

(b) measures taken by other governmental agencies, including current or future regulatory bodies, which may have an impact to enhance competition in specific-regulated sectors.

Article 4

Exchange of information

1. With a view to facilitating the effective application of their respective competition laws and promoting a better understanding of their respective legal frameworks, the competition authorities shall exchange the following types of information:

(a) to the extent practicable, texts on legal theory, case-law or market studies in the public domain, or in the absence of such documents, non-confidential data or summaries;

(b) information related to the application of competition legislation provided that it does not adversely affect the person providing such information, and for the sole purpose of helping to resolve the procedure; and

(c) information concerning any known anticompetitive activities and any innovations introduced into the respective legal systems in order to improve the application of their respective competition laws.

2. The competition authorities shall help each other to collect other types of information in their respective territories, if circumstances so require.

3. Representatives of each Party's competition authorities shall meet in order to promote knowledge on both sides of their respective competition laws and policies, and to evaluate the results of the cooperation mechanism. They may meet informally, as well as at institutional meetings in a multilateral context, when circumstances allow.

Article 5

Coordination of enforcement activities

1. A competition Authority may notify its willingness to coordinate enforcement activities with respect to a specific case. This coordination shall not prevent the Parties from taking autonomous decisions.

2. In determining the extent of coordination, the Parties shall consider:

(a) the effective results which coordination could produce;

(b) the additional information to be obtained;

(c) the reduction in costs for the competition authorities and the economic agents involved; and

(d) the applicable deadlines under their respective legislation.

Article 6

Consultations when important interests of one Party are adversely affected in the territory of the other Party

1. A competition authority which considers that an investigation or proceeding being conducted by the competition authority of the other Party may affect such Party's important interests should transmit its views on the matter to, or request consultation with, the other competition authority. Without prejudice to the continuation of any action under its competition law and to its full freedom of ultimate decision, the competition authority so addressed should give full and sympathetic consideration to the views expressed by the requesting competition authority, and in particular, to any suggestions as to alternative means of fulfilling the needs or objectives of the competition investigation or proceeding.

2. The competition authority of a Party, which considers that the interests of that Party are being substantially and adversely affected by anticompetitive practices of whatever origin that are or have been engaged in by one or more enterprises situated in the other Party may request consultation with the other competition authority, recognising that entering into such consultations is without prejudice to any action under its competition law and to the full freedom of ultimate decision of the competition authority concerned. A competition authority so addressed should give full and sympathetic consideration to such views and factual materials as may be provided by the requesting competition authority and, in particular, to the nature of the anticompetitive practices in question, the enterprises involved and the alleged harmful effects on the interests of the requesting competition authority.

Article 7

Avoidance of conflicts

1. Each Party shall, wherever possible, and in accordance with its own legislation, take into consideration the important interests of the other Party in the course of its enforcement activities.

2. If adverse effects for one Party result, even if the above considerations are respected, the competition authorities shall seek a mutually acceptable solution. In this context, the following may be considered:

(a) the importance of the measure and the impact which it has on the interests of one Party, by comparing the benefits to be obtained by the other Party;

(b) the presence or absence, in the actions of the economic agents concerned, of the intention to affect consumers, suppliers or competitors;

(c) the degree of any inconsistencies between the legislation of one Party and the measures to be applied by the other Party;

(d) whether the economic agents involved will be subject to incompatible requests by both Parties;

(e) the initiation of the procedure or the imposition of penalties or remedies;

(f) the location of the assets of the economic agents involved; and

(g) the importance of the penalty to be imposed in the territory of the other Party.

Article 8

Confidentiality

The exchange of information shall be subject to the standards of confidentiality applicable in each Party. Confidential information whose dissemination is expressly prohibited or which, if disseminated, could adversely affect the Parties, shall not be provided without the express consent of the source of the information. Each competition authority shall maintain the confidentiality of any information provided to it in confidence by the other competition authority under this mechanism, and oppose any application for disclosure of such information by a third party that is not authorised by the competition authority that supplied the information.

Article 9

Technical cooperation

1. The Parties shall provide each other technical assistance in order to take advantage of their respective experience and to strengthen the implementation of their competition laws and policies.

2. The cooperation shall include the following activities:

(a) training of officials of both Parties' competition authorities, to enable them to gain practical experience; and

(b) seminars, in particular for civil servants.

3. The Parties may carry out joint studies of competition or competition laws and policies, with a view to supporting their development.

4. The Parties acknowledge that developments in communication and computer systems are relevant to the activities they wish to develop and that they should be used to promote communication and facilitate access to information on competition policies as far as possible. To this end they shall seek to:

(a) extend their respective home pages so as to provide information on developments in their activities;

(b) promote the dissemination of subjects relating to competition studies through publications such as the Boletín Latinoamericano de Competencia, the Competition Policy Newsletter of the Directorate General for Competition of the European Community, and the annual reports and the Gaceta de Competencia Económica published by the Comisión Federal de Competencia of Mexico; and

(c) develop an electronic archive of case-law pertaining to the cases investigated, which would enable the identification of individual cases, the nature of the practice or conduct analysed, its legal framework and the outcomes and dates of resolution.

Article 10

Amendments

The Joint Committee may amend this Annex.

ANNEX XVI

MODEL RULES OF PROCEDURE

(referred to in Article 47)

Definitions

1. In these rules:

"adviser" means a person retained by a party to advise or assist the Party in connection with the arbitration panel proceeding;

"complaining Party" means any Party that requests the establishment of an arbitration panel under Chapter III of Title VI of the Decision;

"arbitration panel" means an arbitration panel established pursuant to Chapter III of Title VI of the Decision;

"representative of a Party" means an employee of a government department or agency or of any other government entity of a Party.

2. The Parties may designate a specialised entity to administer the dispute settlement proceedings.

3. Unless the Parties otherwise agree, the Parties shall meet with the arbitration panel within 15 days of the date of establishment of the arbitration panel in order to determine matters such as:

(a) remuneration and expenses that will be paid to the arbitrators which normally shall conform to the WTO standards;

(b) the administration of proceedings, where the Parties have not designated a specialised entity pursuant to Rule 2; and

(c) such other matters that the Parties deem appropriate.

Qualification of arbitrators

4. Arbitrators should be selected with a view to ensuring the independence and impartiality of the members, a sufficiently diverse background and a wide spectrum of experience. Arbitrators shall serve in their individual capacities and not as government representatives, nor as representatives of any organisation. They shall comply with a code of conduct established in Appendix I.

Terms of reference

5. Unless the Parties otherwise agree within 20 days from the date of the delivery of the request for the establishment of the arbitration panel, the terms of reference shall be: "To examine, in the light of the relevant provisions of the covered legal instruments, the matter referred to the Joint Committee (as set out in the request for a Joint Committee meeting), and to rule on the consistency of the measures at issue with the covered legal instruments."

6. The parties shall promptly deliver any agreed terms of reference to the arbitration panel.

Written submissions and other documents

7. Where the Parties have designated an entity pursuant to Rule 2, a Party or the arbitration panel, respectively, shall deliver any request, notice, written submissions or other document to that entity. An entity designated under Rule 2 that receives a written submission shall forward it to the recipients by the most expeditious means practicable.

8. Where the Parties have not designated an entity pursuant to Rule 2, a Party or the arbitration panel, respectively, shall deliver any request, notice, written submission or other document in accordance with the agreement reached under Rule 3.

9. A Party shall, to the extent practicable, provide a copy of the document in magnetic format.

10. Unless otherwise agreed pursuant to Rule 3 a Party shall provide a copy of each of its written submissions for the other Party and each of the arbitrators.

11. A complaining Party shall deliver its initial written submission no later than 25 days after the date of establishment of the arbitration panel. The Party complained against shall deliver its written counter-submission no later than 20 days after the date of delivery of the initial written submission.

12. Unless otherwise agreed pursuant to Rule 3 in the case of any request, notice or other document related to the arbitration panel proceeding that is not covered by Rule 10 or 11, the Party shall deliver to the other Party and to each of the arbitrators a copy of the document by facsimile or other means of electronic transmission.

13. Minor errors of a clerical nature in any request, notice, written submission or other document related to the arbitration panel proceeding may be corrected by delivery of a new document clearly indicating the changes.

14. If the last day for delivery of a document falls on a legal holiday or on any other day on which the offices are closed by order of the government or by force majeure, the document may be delivered on the next business day.

Operation of arbitration panels

15. The chair of the arbitration panel shall preside at all of its meetings. An arbitration panel may delegate to the chair authority to make administrative and procedural decisions.

16. Except as otherwise provided in these Rules, the arbitration panel may conduct its business by any means, including by telephone, facsimile transmissions or computer links.

17. Only arbitrators may take part in the deliberations of the arbitration panel but the arbitration panel may permit assistants, administration personnel, interpreters or translators to be present during such deliberations.

18. Where a procedural question arises that is not covered by these Rules, an arbitration panel may adopt an appropriate procedure that is not inconsistent with the Decision.

19. When the arbitration panel considers there is a need to modify any time period applicable in the proceeding or to make any other procedural or administrative adjustment in the proceeding, it shall inform the Parties in writing of the reasons for the modification or adjustment with an estimate of the period or adjustment needed.

Hearings

20. Where the Parties have designated an entity pursuant to Rule 2, the chair shall fix the date and time of the hearing in consultation with the Parties, the other members of the arbitration panel and such entity. That entity shall notify in writing to the Parties of the date, time and location of the hearing.

21. Where the Parties have not designated an entity pursuant to Rule 2, the chair shall fix the date and time of the hearing in consultation with the Parties and the other members of the arbitration panel, in accordance with the agreement reached under Rule 3. The Parties shall be notified in writing of the date, time and location of the hearing in accordance with the agreement reached under Rule 3.

22. Unless the Parties otherwise agree the hearing shall be held in Brussels, where the complaining Party is Mexico, or in Mexico City, where the complaining Party is the Community.

23. The arbitration panel may convene additional hearings if the Parties so agree.

24. All arbitrators shall be present at hearings.

25. The following persons may attend a hearing:

(a) representatives of a Party;

(b) advisers to a Party, provided that they do not address the arbitration panel and provided further that neither they nor their employers, partners, business associates or family members have a financial or personal interest in the proceeding;

(c) administration personnel, interpreters, translators and court reporters; and

(d) arbitrators' assistants.

26. No later than five days before the date of a hearing, each Party shall deliver a list of the names of those persons who will make oral arguments or presentations at the hearing on behalf of that Party and of other representatives or advisers who will be attending the hearing.

27. The hearing shall be conducted by the arbitration panel in the following manner, ensuring that the complaining Party and the Party complained against are afforded equal time:

Argument

(a) Argument of the complaining Party,

(b) Argument of the Party complained against;

Rebuttal argument

(a) Reply of the complaining Party,

(b) Counter-reply of the Party complained against.

28. The arbitration panel may direct questions to either Party at any time during a hearing.

29. Where the Parties have designated an entity pursuant to Rule 2, such entity shall arrange for a transcript of each hearing to be prepared and shall, as soon as possible after it is prepared, deliver a copy of the transcript to the Parties and the arbitration panel.

30. Where the Parties have not designated an entity pursuant to Rule 2, a transcript of each hearing shall be prepared in accordance with the agreement reached under Rule 3 and shall, as soon as possible after it is prepared, be delivered to the Parties and the arbitration panel.

31. The arbitration panel may at any time during a proceeding address questions in writing to one or both Parties. The arbitration panel shall deliver the written questions to the Party or Parties to whom the questions are addressed.

32. A Party to whom the arbitration panel addresses written questions shall deliver a copy of any written reply. Each Party shall be given the opportunity to provide written comments on the reply within five days after the date of delivery.

33. Within 10 days after the date of the hearing, each Party may deliver a supplementary written submission responding to any matter that arose during the hearing.

Rules of interpretation and burden of proof

34. Arbitration panels shall interpret the provisions of the covered legal instruments in accordance with rules of customary international public law.

35. A Party asserting that a measure of the other Party is inconsistent with the provisions of the covered legal instruments shall have the burden of establishing such inconsistency.

36. A Party asserting that a measure is subject to an exception under the covered legal instruments shall have the burden of establishing that the exception applies.

Confidentiality

37. The Parties shall maintain the confidentiality of the panel's hearings, deliberations and initial report, and all written submissions to and communications with the arbitration panel.

Ex parte contacts

38. The arbitration panel shall not meet or contact one Party in the absence of the other Party.

39. No arbitrator may discuss an aspect of the subject matter of the proceeding with a Party or both Parties in the absence of the other arbitrators.

Role of Experts

40. On request of a Party or on its own initiative, the arbitration panel may seek information and technical advice from any person or body that it deems appropriate, provided that the Parties so agree and subject to such terms and conditions as the Parties may agree.

41. Where in accordance with Rule 40 a request is made for a written report of an expert, any time period applicable to the arbitration panel proceeding shall be suspended for a period beginning on the date of delivery of the request and ending on the date the report is delivered to the arbitration panel.

Arbitration panel reports

42. Unless the Parties otherwise agree, the arbitration panel shall base its report on the submissions and arguments of the Parties and on any information before it pursuant to Rule 40.

43. After considering written comments to the initial report by the Parties, the arbitration panel, on its own initiative or on the request of either Party, may:

(a) request the views of either Party;

(b) reconsider its report; and

(c) make any further examination that it considers appropriate.

44. Arbitrators may furnish separate opinions on matters not unanimously agreed. No arbitration panel may, either in its initial report or its final report, disclose which arbitrators are associated with majority or minority opinions.

Cases of urgency

45. In cases of urgency, the arbitration panel shall appropriately adjust the time periods for submission of the initial report and comments by the Parties to such report.

Translation and interpretation

46. Where the Parties have designated an entity pursuant to Rule 2, a Party shall, within a reasonable period of time before it delivers its initial written submission in an arbitration panel proceeding, advise such entity in writing of the language in which its written and oral submissions will be made.

47. Where the Parties have not designated an entity pursuant to Rule 2, a Party shall advise in writing of the language in which its written and oral submissions will be made, no later than at the meeting provided for in Rule 3.

48. Each Party shall arrange for, and bear the costs of, the translation of its written submissions into the language chosen by the other Party in accordance with Rule 46 or 47. Upon request of a Party that has filed a submission, the arbitration panel may suspend the proceeding for the time necessary to allow that Party to complete the translation.

49. The Parties shall arrange for the interpretation of oral submissions into the language chosen by both Parties.

50. Arbitration panel reports shall be issued in the language or languages chosen by the Parties in accordance with Rule 46 or 47.

51. The costs incurred to prepare a translation of an arbitration report shall be borne equally by the Parties.

52. Any Party may provide comments on a translated version of a document that is prepared in accordance with these Rules.

Computation of time

53. Where anything under the Decision or these Rules is to be done, or the arbitration panel requires anything to be done, within a number of days after, before or of a specified date or event, the specified date or the date on which the specified event occurs shall not be included in calculating that number of days.

54. Where, by reason of the operation of Rule 14 a Party receives a document on a date other than the date on which the same document is received by the other Party any period of time the calculation of which is dependent on such receipt shall be calculated from the date of receipt of the last such document.

Other proceedings

55. These rules shall apply to the proceedings established under paragraphs 4, 5, 8 and 10 of Article 46 of Title VI except that:

(a) the Party making a request under paragraph 4 of Article 46 shall deliver its initial written submission within three days after the date the request is submitted and the responding Party shall deliver its written counter-submission within four days after the date of delivery of the initial written submission;

(b) the Party making a request under paragraph 5 of Article 46 shall deliver its initial written submission within 10 days after the date the request is submitted and the responding Party shall deliver its written counter-submission within 20 days after the date of delivery of the initial written submission;

(c) the Party making a request under paragraph 8 Article 46 shall deliver its initial written submission within 10 days after the date the request is submitted and the responding Party shall deliver its written counter-submission within 15 days after the date of delivery of the initial written submission; and

(d) the Party making a request under paragraph 10 Article 46 shall deliver its initial written submission within five days after the date the request is submitted is selected and the responding Party shall deliver its written counter-submission within 10 days after the date of delivery of the initial written submission.

56. If appropriate, the arbitration panel shall fix the time limit for delivering any further written submissions, including rebuttal written submissions, so as to provide each Party with the opportunity to make an equal number of written submissions subject to the time limits for arbitration panel proceedings set out in the Decision and these rules.

57. Unless the Parties disagree, the arbitration panel may decide not to convene a hearing.

Appendix I

CODE OF CONDUCT

Definitions

A. In this Code of Conduct,

"assistant" means a person who, under the terms of appointment of a member, conducts research or provides support for the member;

"candidate" means an individual who is under consideration for appointment as a member of an arbitration panel pursuant to paragraph 1 of Article 44 of Title VI;

"member" means a member of an arbitration panel constituted pursuant to paragraph 1 of Article 43 of Title VI;

"Party" means a Party to the Agreement;

"proceeding", unless otherwise specified, means an arbitration panel proceeding under this Title;

"staff", in respect of a member, means persons under the direction and control of the member, other than assistants.

B. Any reference made in this Code of Conduct to a paragraph or Title is a reference to the appropriate paragraph, Annex or Title on Dispute Settlement under the Decision.

I. Responsibilities to the process

Every candidate, member and former member shall avoid impropriety and the appearance of impropriety and shall observe high standards of conduct so that the integrity and impartiality of the dispute settlement process is preserved.

II. Disclosure obligations

Introductory note

The governing principle of this Code of Conduct is that a candidate or member must disclose the existence of any interest, relationship or matter that is likely to affect the candidate's or member's independence or impartiality or that might reasonably create an appearance of impropriety or an apprehension of bias. An appearance of impropriety or an apprehension of bias is created where a reasonable person, with knowledge of all the relevant circumstances that a reasonable inquiry would disclose, would conclude that a candidate's or member's ability to carry out the duties with integrity, impartiality and competence is impaired.

These disclosure obligations, however, should not be interpreted so that the burden of detailed disclosure makes it impractical for persons in the legal or business community to serve as members, thereby depriving the Parties and participants of the services of those who might be best qualified to serve as members. Thus, candidates and members should not be called upon to disclose interests, relationships or matters whose bearing on their role in the proceeding would be trivial.

Throughout the proceeding, candidates and members have a continuing obligation to disclose interests, relationships and matters that may bear on the integrity or impartiality of the dispute settlement process.

This Code of Conduct does not determine whether or under what circumstances the Parties will disqualify a candidate or member from being appointed to, or serving as a member of, arbitration panel or committee on the basis of disclosures made.

A. A candidate shall disclose any interest, relationship or matter that is likely to affect the candidate's independence or impartiality or that might reasonably create an appearance of impropriety or an apprehension of bias in the proceeding. To this end, a candidate shall make all reasonable efforts to become aware of any such interests, relationships and matters.

The candidate shall disclose such interests, relationships and matters by completing an initial disclosure statement provided by the Joint Committee and sending it to the Joint Committee.

Without limiting the generality of the foregoing, candidates shall disclose the following interests, relationships and matters:

1. any financial interest of the candidate:

(a) in the proceeding or in its outcome; and

(b) in an administrative proceeding, a domestic court proceeding or another arbitration panel or committee proceeding that involves issues that may be decided in the proceeding for which the candidate is under consideration;

2. any financial interest of the candidate's employer, partner, business associate or family member:

(a) in the proceeding or in its outcome; and

(b) in an administrative proceeding, a domestic court proceeding or another arbitration panel or committee proceeding that involves issues that may be decided in the proceeding for which the candidate is under consideration;

3. any past or existing financial, business, professional, family or social relationship with any interested parties in the proceeding, or their counsel, or any such relationship involving a candidate's employer, partner, business associate or family member; and

4. public advocacy or legal or other representation concerning an issue in dispute in the proceeding or involving the same goods.

B. Once appointed, a member shall continue to make all reasonable efforts to become aware of any interests, relationships or matters referred to in Section A and shall disclose them. The obligation to disclose is a continuing duty which requires a member to disclose any such interests, relationships and matters that may arise during any stage of the proceeding.

The member shall disclose such interests, relationships and matters by communicating them in writing to the Joint Committee for consideration by the Parties.

III. The performance of duties by candidates and members

A. A candidate who accepts an appointment as a member shall be available to perform, and shall perform, a member's duties thoroughly and expeditiously throughout the course of the proceeding.

B. A member shall carry out all duties fairly and diligently.

C. A member shall comply with this Title and the applicable Model Rules of Procedure established in Annex XVI or any other.

D. A member shall not deny other members the opportunity to participate in all aspects of the proceeding.

E. A member shall consider only those issues raised in the proceeding and necessary to a decision and shall not delegate the duty to decide to any other person, except as provided in the Model Rules of Procedure established in Annex XVI or other applicable rules.

F. A member shall take all reasonable steps to ensure that the member's assistant and staff comply with Parts I, II and VI of this Code of Conduct.

G. A member shall not engage in ex parte contacts concerning the proceeding.

H. A candidate or member shall not communicate matters concerning actual or potential violations of this Code of Conduct unless the communication is to the Joint Committee or is necessary to ascertain whether that candidate or member has violated or may violate the Code.

IV. Independence and impartiality of members

A. A member shall be independent and impartial. A member shall act in a fair manner and shall avoid creating an appearance of impropriety or an apprehension of bias.

B. A member shall not be influenced by self-interest, outside pressure, political considerations, public clamour, loyalty to a Party or fear of criticism.

C. A member shall not, directly or indirectly, incur any obligation or accept any benefit that would in any way interfere, or appear to interfere, with the proper performance of the member's duties.

D. A member shall not use the member's position on the arbitration panel or committee to advance any personal or private interests. A member shall avoid actions that may create the impression that others are in a special position to influence the member. A member shall make every effort to prevent or discourage others from representing themselves as being in such a position.

E. A member shall not allow past or existing financial, business, professional, family or social relationships or responsibilities to influence the member's conduct or judgment.

F. A member shall avoid entering into any relationship, or acquiring any financial interest, that is likely to affect the member's impartiality or that might reasonably create an appearance of impropriety or an apprehension of bias.

V. Duties in certain situations

A former member shall avoid actions that may create the appearance that the member was biased in carrying out the member's duties or would benefit from the decision of the arbitration panel or committee.

VI. Maintainance of confidentiality

A. A member or former member shall not at any time disclose or use any non-public information concerning the proceeding or acquired during the proceeding except for the purposes of the proceeding and shall not, in any case, disclose or use any such information to gain personal advantage or advantage for others or to affect adversely the interest of another.

B. A member shall not disclose an arbitration panel report issued under this Title prior to its publication by the Joint Committee. A member or former member shall not at any time disclose which members are associated with majority or minority opinions in a proceeding under this Title.

C. A member or former member shall not at any time disclose the deliberations of an arbitration panel or committee, or any member's view, except as required by law.

VII. Responsibilities of assistants and staff

Parts I (Responsibilities to the process), II (Disclosure obligations) and VI (Maintenance of confidentiality) of this Code of Conduct apply also to assistants and staff.

JOINT DECLARATION I

concerning full cumulation pursuant to Article 2 of Annex III

1. The Parties recognise the important role of cumulation of origin in encouraging the smooth development towards the establishment of a free trade area between the Community and Mexico.

2. For that purpose, the Parties will examine the parameters to be considered in evaluating the economic conditions needed to eventually implement full cumulation. This process will begin no later than three years after entry into force of this Decision.

3. Following a positive assessment pursuant to paragraph 2, the Parties shall take the necessary steps to implement full cumulation.

4. Full cumulation allows to take into account all stages of processing or transformation of a product within the free trade area without the materials used being necessarily originating in one of the partner countries.

JOINT DECLARATION II

relating to Article 2 of Annex III

Products manufactured exclusively from materials which comply with the provisions set out in Articles 4 or 5 of Annex III, shall also be considered as originating in Mexico or the Community.

JOINT DECLARATION III

relating to Article 6 of Annex III

1. The Special Committee on Customs Cooperation and Rules of Origin, established in accordance with Article 17 shall discuss and agree on a definition for simple mixing of products and simple assembly of parts to constitute a complete product. These definitions shall enter into force no later than 1 January 2003.

2. Prior to that date, the Parties agree that for the chemical sector simple mixing of products does not include chemical reaction.

3. For other sectors, simple assembly of parts to constitute a complete product, includes screwdriver operations.

4. For the chemical sector "chemical reaction" means a process (including a biochemical process) which results in a molecule with a new structure by breaking intramolecular bonds and by forming new intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule.

JOINT DECLARATION IV

regarding Appendix I to Annex III

When the ex-works price is not known or is uncertain, the producer or an exporter of goods may use the cost of manufacturing of the product.

JOINT DECLARATION V

regarding Notes 2 and 3 of Appendix II(a) to Annex III for Heading Nos ex 2914 and ex 2915

The Joint Committee shall review the necessity to extend beyond 30 June 2003 the application of the rule established in Notes 2 and 3 of Appendix II(a), if the economic conditions which formed the basis for establishing the rule set out in those Notes continue.

JOINT DECLARATION VI

regarding Note 4 of Appendix II(a) to Annex III for Heading No 4104

1. The Joint Committee shall extend beyond 31 December 2002 the rule established in Note 4 of Appendix II(a), if the multilateral/WTO negotiations continue beyond that date until these negotiations have finished. At that time, in light of the results of these negotiations, the Joint Committee shall determine the rule of origin to be applied.

2. Within the context of the multilateral negotiations, both Parties shall seek to establish disciplines for the elimination of export taxes or restrictions that operate to increase the exports of, or the protection afforded to, domestic industries, such as leather.

JOINT DECLARATION VII

regarding specific textile products of Appendix II to Annex III

1. For heading Nos 5208 to 5212, the Joint Committee shall review, in 2003, the annual quota to adjust it in the light of the experience in managing it and the bilateral trade flows.

2. For heading No 5407 to 5408, the Joint Committee shall review, in 2003, the annual quota to adjust it in the light of the experience in managing it and the bilateral trade flows.

3. For heading Nos 5512 to 5516, the Joint Committee shall review, in 2003, the annual quota to adjust it in the light of the experience in managing it and the bilateral trade flows.

4. For heading Nos 5801, 5806 and 5811, the Joint Committee shall review, in 2003, the annual quota to adjust it in the light of the experience in managing it and the bilateral trade flows.

JOINT DECLARATION VIII

regarding Note 8 of Appendix II(a) of Annex III for Heading Nos 6301 to 6304

Notwithstanding Note 8 of Appendix II(a), the Joint Committee shall review the necessity to extend beyond 31 December 2003 the application of the rule established in that note. The review shall be undertaken on the basis of all relevant factors, including the availability of woven fabrics at the adequate quantities or qualities within the free trade area.

JOINT DECLARATION IX

regarding Note 9 of Appendix II(a) to Annex III

For heading Nos 6402, 6403 and 6404, the Joint Committee shall review, in 2004, the conditions established in Note 9 of Appendix II(a) to adjust it in the light of the quota management experience with a view to allowing effective use of the trading opportunities offered.

JOINT DECLARATION X

regarding Appendix II and Appendix II(a) to Annex III

The Parties agree that the administration of the auctioning system will only require payment of the amount offered if the total sum of all quotas offered by each bidder exceeds the total amount of the quota ("least winning price system").

JOINT DECLARATION XI

regarding Note 12.1 of Appendix II(a) to Annex III for Heading Nos ex 8701, 8702 and 8704

The Parties shall review, at any time after 31 December 2002, the rule set out in Note 12.1 of Appendix II(a), if the Joint Committee determines that the power train (engine, transmission, etc.) is not being supplied in the Community and Mexico, or an investigation regarding anti-competitive practices in one of the Parties has been initiated at the request of manufacturers of vehicles under these headings. In such case, for a period of time to be determined by the Joint Committee, the rule set out in Note 12.1 of Appendix II(a) shall continue to apply as established for the years 2000 to 2002. For this purpose, the manufacturers of vehicles under these headings will provide the necessary information to the Joint Committee.

Note:

Joint Declarations XII to XV were published in Official Journal of the European Communities L 157 of 30 June 2000, page 29.

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