CELEX: 52012PC0362
Language: en
Date: 2012-07-16
Title: Proposal for a COUNCIL DECISION on the association of the overseas countries and territories with the European Union (&quot;Overseas Association Decision&quot;)

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		52012PC0362
		
			Proposal for a COUNCIL DECISION on the association of the overseas countries and territories with the European Union ("Overseas Association Decision") /* COM/2012/0362 final - 2012/0195 (CNS) */
			
				
		
		
			
			   	EXPLANATORY MEMORANDUM
1.           CONTEXT OF THE PROPOSAL
1.1.        General
context
OCTs have been associated to the European
Union since the entry into force in 1958 of the Treaty of Rome. They are
islands located in the Atlantic, Antarctic, Arctic, Caribbean, Indian Ocean and
Pacific regions. They are not sovereign countries but depend on four Member
States of the EU: Denmark, France, the Netherlands and the United Kingdom. The
association of the OCTs with the Union flows from the constitutional relations
that these countries and territories have with the four Member States.
In general, OCTs have wide ranging
autonomy, covering areas such as economic affairs, employment market, public
health, home affairs and customs. Defence and foreign affairs usually remain
within the remit of the Member States. The OCTs are not part of the Union's
customs territory and are outside the Internal Market. The Union legislation
therefore does not apply.
Being nationals of the EU Member States to
which their countries and territories are constitutionally linked, OCT
inhabitants hold EU citizenship. The OCTs' total population represents only
0.02% of the world population (1.2 million).Their total land mass represents
only 80,000 sq km[1].
Since the adoption in 2001 of the current
Overseas Association Decision, the regional and international environments in
which OCTs operate has considerably changed. New political priorities have
emerged at European and international level, (such as environment, climate
change, sustainable management of natural resources) as well as changes in
global trade patterns. With the Europe 2020 Agenda, the European Commission
proposed a strategy[2] articulated around three priorities: smart
growth, sustainable growth and inclusive growth as a response to the economic and
financial crisis.
For their part, the OCTs continue to face
economic and social problems and/or struggle to found their economies on a
sustainable basis. They are confronted with a number of difficulties linked to
their fragile environments and the need to secure the environmental pillar of
sustainable development.
The main challenge that OCTs face consists
in putting their economies and societies on a sustainable development path by
increasing their competitiveness, reducing their vulnerability, increasing
environmental resilience, and cooperating with their neighbours and integrating
in the regional and/or world economies, where this is possible. For the Union,
the challenge resides in supporting the OCTs with the accomplishment of these
goals and of the purpose of the association as defined in Article 198 of the
Treaty on the functioning of the European Union, via a framework that is
adapted to OCT needs, realities, particularities and diversity.
1.2.        Existing provisions
The current rules and procedures of the EU-OCT
association are laid down in Decision 2001/822/EC of the Council of 27 November
2001 on the association of the overseas countries and territories with the
European Community, (OJ L 314/1, 30.11.2001), as amended by Decisions
2007/249/EC (OJ L 109/33, 26.04.2007) and XXXXXXX (Decision regarding
Saint-Barthélemy).
1.3.        Consistency with other EU
policies
"Europe
2020" provides the benchmark against which the coherence of EU policies
and the promotion of EU values, standards and interest need to be checked[3].
Coherence with the Europe 2020 strategy should be
sought as far as its smart growth and sustainable priorities are concerned,
promoting support to research, innovation as well as to information and
communication technologies (ICT) and sustainable growth capacities as catalysts
for socio-economic development.
The 2014-2020 OAD will play an important role in that respect.
Indeed, the idea of establishing ‘centres of experience and expertise’ could
relate to the implementation and promotion of high standards, including
international standards, e.g. in the fields of environment and food safety and
consumer health. The OCTs are all characterised by rich biodiversity. The
sustainable use and protection of this biodiversity would benefit from better scientific
documentation and access to research and innovation results. Likewise, the
implementation of international standards within the area of food safety,
animal and plant health could facilitate trade between OCTs and their trading
partners, including EU Member States. The Union's commitment to environmental
standards as well as its role as a global player in the fight against climate
change could be of great value to both the Union and the OCTs. The Commission
believes that biodiversity and other natural assets of the OCTs could be the
object of a strengthened cooperation in the field of research, innovation and
conservation. A partnership in the area of environment could be of mutual
interest to both parties.
2.           RESULTS OF CONSULTATIONS WITH THE INTERESTED
PARTIES AND IMPACT ASSESSMENTS
The revision of the Overseas Association
Decision has been the subject of various stakeholders' consultations throughout
the period 2008-2011. These include public consultations, but also regular ad
hoc meetings between the OCTs, the Member States to which they are
constitutionally linked and the European Commission, as well as dialogue in the
context of the instances foreseen under Article 7 of the current Overseas
Association Decision: annual fora , regular trilateral meetings and partnership
working parties dedicated to environmental issues, trade issues, regional
integration of the OCTs, financial services in the OCTs and the future EU-OCT
relations.
2.1. Consultations
The outcome of stakeholders' consultation
highlighted the following issues:
In their replies to the 2008 Green Paper[4],
stakeholders called for a change of the association's current focus on poverty
reduction and development cooperation to a more reciprocal relationship focused
on the sustainable development of the OCTs (i.e. a development model that
conciliates economic activities and social well-being in the long run while
preserving natural resources and ecosystems for future generations), which
could, at the same time, support the promotion of EU values and standards in
the wider world. 
This was highlighted during the
interventions at the stakeholders' conference in October 2008 which gathered
over 100 interested parties from the OCTs' authorities, their Member States,
the Union's institutions and bodies and civil society at large. 
The Council of the European Union[5]
also welcomed and expressed support to the change of paradigm.
In a Joint Position Paper[6]
adopted in February 2011, the OCTs and their Member States called for a better
recognition of the OCTs as part of the European family, an association further
based on the mutual interests of the Union and the OCTs and a focus on
potential and vulnerabilities of the OCTs. The document also calls the
attention to the necessity to recognize and take the interests of the OCTs in
the following areas: erosion of preferences and trade related issues, and
building capacity. 
It was also underlined that issues relating
to environment, climate change and disaster risk reduction should constitute a
priority for the future EU-OCT relations: sustainable use and protection of
OCTs biodiversity and natural resources, environmental security, energy and
renewable energy, ecosystems conservation, fight against climate change impacts
and mitigation, preparedness and response to disasters, invasive species,
sustainable fisheries. Stakeholders[7] called for an enhanced cooperation of the Union
with the OCTs and outermost regions in the field of conservation of
biodiversity and ecosystems services.
Solidarity between the Union and OCTs
should be based on the fact that OCT inhabitants, as nationals of the related
Member States, were also EU citizens. It was underlined that by helping OCTs to
strengthen their competitiveness and resilience, reduce their vulnerability and
implant themselves in their regional environment, the Union would actually be
investing in strategic outposts able to promote Union’s values in the world. 
2.2. Collection and use of expertise:
The EU-OCT association was analysed in
various studies, commissioned either by the Commission or by the OCTs. These
studies covered topics such as the trade regime contained in the OAD, the OCTs'
environmental profiles, OCT statistical systems and capacities, OCT disaster
preparedness as well as the cooperation of the Union with the OCTs during the
period 1999-2009[8]. The latter was presented
and discussed with the stakeholders on the occasion of the annual OCT-EU Forum
in March 2011. 
The main recommendations of the different
studies with regard to the Union’s financial assistance to OCTs were the
following:
(1)                   
to incorporate the political priorities that
emerged in the last decade in the programming of EU-OCT cooperation;
(2)                   
to adapt rules and procedures of the programming
of financial assistance so as to reduce response time of assistance;
(3)                   
to promote cooperation between OCTs and their
neighbouring countries, amongst others through a better coordination of the
respective financial instruments available to OCTs, ACP States and the outermost
regions;
(4)                   
to facilitate access to Union’s horizontal
programmes for which OCTs are eligible.
The main recommendations of the different
studies with regard to trade and trade related aspects of the Overseas
Association Decision were the following:
(1)                   
to adapt the arrangements concerning trade in
goods so as to take structural difficulties better into account, amongst others
by introducing more flexible rules of origin for OCT goods exports to the Union;
(2)                   
to allow for the possibility for OCTs to engage
in more favourable trade relations with other OCTs and developing countries, so
as to reflect the increasing importance that trade in services has gained in
world and regional economies in the last decade and to facilitate regional
integration in this area;
(3)                   
to foresee support and capacity building for the
development of OCT trade related policies as well as to assist OCTs in
regulatory reform; 
(4)                   
to support dissemination within OCTs of
information regarding the conditions defining access to the EU market;
(5)                   
to maintain the direct dialogue between the
European Commission and the OCTs on e.g. trade and trade related issues and
ensure that OCT interests are taken into account in the context of EU trade
negotiations.
With regard to environmental issues, the
different studies recommended that the Union and the OCTs cooperate more in the
following areas:
(1)                   
climate change,
(2)                   
natural disasters,
(3)                   
threats to wildlife and biodiversity, habitat
destruction,
(4)                   
illegal, unregulated and unreported fishing,
(5)                   
waste management,
(6)                   
water supply and sanitation.
2.3. Impact assessment
In the impact assessment three policy
options were examined in detail. 
Policy option 1: Status Quo Renewal of the current Overseas Association Decision
without any changes.
Under Policy option 1, the structure and
the content of the currently into force Association Decision would be
maintained for the period 2014-2020.
Maintaining the status quo could
legitimately be considered as a valid option for the future EU-OCT association
as current arrangements were found to have been beneficial for the OCTs' social
and economic development, amongst others by providing free access to the large
EU market and the possibility of support for exploiting the export
opportunities this represents. The EU-OCT cooperation in the period 1999-2009
was considered by external studies to have been coherent with both the
association's objectives and the OCTs' political priorities and concluded that
no marked contradictions or inconsistencies had occurred between EU-OCT
cooperation and other Union policies. Though consistent with Part Four of the TFEU
and its Preamble, option 1 would not accomplish the shared ambition of OCTs,
their Member States and the Commission to reshape and modernise the EU-OCT
relations on a reciprocal basis. Rather than modernising the relations and
introducing a more reciprocal partnership, in which mutual interests could be
better taken into account, the donor/beneficiary rationale which has
traditionally underpinned EU-OCT relations would be maintained.
OCT goods and services access to the Union
would remain subject to the existing rules and would lead to loss of market
access for the OCTs (due to preference erosion). This would have a negative
impact on the social and economic position of OCTs.
Policy option 2: Modernisation of the Overseas Association Decision and alignment
with EU policy framework
Option 2 would modernise and align the OAD
with the Union policy framework. Its objectives and principles would be
revised, taking into account the political orientations of the Council of the
EU, the requests the OCTs and their Member States expressed on different
occasions as well as the results of external studies.
Policy option 2 would enhance an EU-OCT
cooperation based on the mutual interests the stakeholders identified
throughout the consultation process. It would also promote a more efficient
cooperation through a more focus and coordinated action between the Union, the
OCTs and their Member States. Areas of cooperation recognized as priorities by
the OCTs would receive an enhanced support from the Union (e.g.: conservation
of biodiversity and ecosystem services, research and innovation).
Under policy option 2, the Union would
support the OCTs to address sensitive issues undermining their sustainable
development, such as climate change which they cannot tackle alone. For such
challenges, insular territories cannot develop successful measures alone, they
need to find partners and be integrated in global responses.
Policy option 2 would offer to the OCTs a
modernised trade regime with the Union that would 1) entail improved rules and
origins and 2) guarantee a treatment for trade in services and establishment
that would not be less favourable than the one given by the Union to other
third partners, which is not the case under the current framework. 
Policy option 2 would be consistent with
Part Four of the TFEU and its Preamble. It would also translate the political
orientations of the Council of the EU on the three objectives of
competitiveness, resilience and cooperation. Under policy option 2, the
association framework would take into account recent policy developments and
would take stock of discussions that emerged in the last decade. Policy
coherence would be ensured under this option and would be strengthened. The
social, economic and environmental impacts would be more positive than under
options 1.
Policy option 2 would better reflect the
notion of mutual interests than it is currently the case. It would allow the
integration of Union policy agenda priorities in the relations between the Union
and the OCTs and the EU added value as a global partner in emerging global
issues would be enhanced. In doing so, the OCTs better promote Union's values
and standards in the wider world.
Policy option 3: Several partnership agreements concluded
Option 3 would entail a diversification of
EU-OCT relations. In the area of trade and economic cooperation two approaches
would be adopted. Certain OCTs could be included in other EU bilateral trade
arrangements, namely Economic Partnership agreements (EPAs) or FTAs, where
relevant and possible. For the remaining OCTs, an OCT trade regime equivalent
to policy option 1 or 2 would be foreseen under the association framework.
Whilst this would not cover the trade and economic cooperation with those OCTs
which would have been included in other trade agreements, it could cover
cooperation with all OCTs in all other areas. An alternative option would
consist in having all cooperation with OCTs that would fall under an EPA or FTA
take place in the context of these agreements. This would include that financial
assistance would also take place outside of the association framework.
By integrating or associating OCTs to other
trade agreements, some of the objectives of the EU-OCT association could be
met. However, this would be done outside of the association as such.
Furthermore, option 3 may not be fully adapted to the needs and realities of
most or even all OCTs. There may be negative impacts also for the Union itself
if significant compensation is required in order to incorporate the OCTs into
existing agreements. By integrating OCTs in other trade agreements the
associated countries and territories with constitutional links to Member States
would legally and effectively cease to be OCTs. As the implementation of policy
option 3 may result in the Union having to work out solutions for setting up
different types of relations with each of the OCTs, the legal process would be
very complicated and would need to be reiterated for every OCT. It would likely
increase confusion as regards to their status and that of their inhabitants.
Certain rules currently contained or being considered in the different
agreements may not apply to OCT inhabitants to the extent that they are EU
citizens. Thus, the implementation of policy option 3 may amplify the tension
that exists between the territorial and personal scope of the TFEU. The
confusion might be further increased by the provision of different types of
cooperation under different kinds of frameworks.
3.           LEGAL ELEMENTS OF THE PROPOSAL
3.1.        Legal basis
The EU-OCT association is based on Part
Four of the Treaty on the Functioning of the European Union. The detailed rules
and procedures of the OCT-EU association are laid down in Decisions of the
Council on the basis of Article 203 of the Treaty on the Functioning of the European
Union, which foresees that such acts are adopted through a special legislative
procedure:
3.2.        Subsidiarity
The detailed arrangements of the provisions
in Part Four of the TFEU necessarily have to take place at Union level as the
purpose of the association, the social and economic development and close
economic ties between the OCTs and the Union as a whole, cannot be achieved via
actions at Member State level. Moreover, with regard to the OCT trade regime,
Member States' actions would not be possible as the common commercial policy
falls within the domain of the Union's exclusive competence (Part Five, Title
II of the TFEU).
The approach towards cooperation with the
OCTs contained in the Commission's legislative proposal respects the principles
of partnership, complementarity and subsidiarity. It proposes that the Union
financial assistance to OCTs be based on programming documents, for which the
competent OCT authorities and the Commission would be jointly responsible and
which would define the cooperation strategies between the Union and the OCTs.
These cooperation strategies would be based on the development objectives,
strategies and priorities adopted by the competent OCT authorities. Activities
would be decided upon in close consultation between the Commission, the OCTs
and their Member States, in full respect of the respective institutional, legal
and financial powers of each of the partners.
Without prejudice to the Commission's
powers, the OCT authorities would have primary responsibility for implementing
the operations agreed upon under the cooperation strategy. The Commission would
be responsible for establishing the general rules and conditions regarding
these programmes and projects.
3.3.        Proportionality
The objectives of the association, as mentioned
in Articles 198 and 199, call for a comprehensive partnership, which comprises
an institutional framework and trade arrangements and covers many areas of
cooperation as well as the basic principles governing Union financial
assistance to OCTs. This calls for a wide ranging and far reaching legal
instrument.
The objectives set out by the Treaty
project themselves into the long term. This calls for a Decision of which the
duration is sufficiently long. As during the 2014-2020 Multiannual Financial Framework
OCTs will benefit from both the 11th European Development Fund and from the Union's
general budget, an alignment of the duration of the Decision on that of the
Multiannual Financial Framework is appropriate.
The Commission proposal puts forward an approach
that is flexible and tailored to the situation of each OCT. It is proposed that
the effectiveness of the EU-OCT cooperation be monitored through audits, ex ante,
mid-term and ex post evaluations. 
4.           BUDGETARY IMPLICATION
In the Commission Communication[9]
on "Preparation of the multiannual financial framework regarding the
financing of Union cooperation for African, Caribbean and Pacific States and
Overseas Countries and Territories for the 2014-2020 period (11th European
Development Fund)", an amount of EUR 343.4 million is foreseen for
cooperation with the OCTs.
The amount of EUR 343.4 million shall be
allocated according to a Council Decision to be taken before 31 December 2013
for implementing the Association with the OCTs, of which EUR 338.4 million to
finance territorial and regional programmes, and EUR 5 million in the form of
an allocation to the EIB to finance interest subsidies and technical assistance
in accordance with the Overseas Association Decision.
2012/0195 (CNS)
Proposal for a
COUNCIL DECISION
on the association of the overseas
countries and territories with the European Union ("Overseas Association
Decision")
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 203 thereof,
Having regard to the proposal from the
European Commission,
After transmission of the draft legislative
act to the national Parliaments,
Having regard to the opinion of the
European Parliament
Acting in accordance with a special legislative
procedure,
Whereas:
(1)       Council Decision
2001/822/EC of 27 November 2001 on the association of the overseas countries
and territories with the European Community[10] applies until
31 December 2013. Pursuant to Article 62 thereof, the Council must establish
the provisions to be laid down for the subsequent application of the principles
set out in Articles 198 to 202 of the Treaty on the functioning of the European
Union.
(2)       In its conclusions of 22
December 2009on the EU’s relations with Overseas Countries and Territories
(OCTs)[11], the Council invited the
Commission to submit a legislative proposal to revise the Overseas Association
Decision before July 2012. The Council endorsed the Commission's proposal to
base the future partnership between the Union and the OCTs on three key pillars
comprising enhancing competitiveness, strengthening resilience and reducing
vulnerability and promoting cooperation and integration between the OCTs and
other partners and neighbouring regions.
(3)       The Commission held a public
consultation between June and October 2008 and proposed a number of
orientations for a new association decision. The results of this consultation
were synthesised in a Communication entitled 'Elements for a new partnership
between the European Union and the Overseas Countries and Territories (OCTs)'[12].

(4)       The Treaty and its
secondary legislation do not automatically apply to the OCTs, except for some
provisions explicitly establishing the contrary. Although not third countries,
the OCTs do not form part of the single market and must comply with the
obligations imposed on third countries in respect of trade, notably rules of
origin, health and plant health standards and safeguard measures.
(5)       The special relationship
between the Union and the OCTs should move away from a classic development
cooperation approach to a reciprocal partnership to support the OCTs'
sustainable development. Moreover, the solidarity between the Union and the
OCTs should be based on their unique relationship and their belonging to the
same 'European family'.
(6)       The contribution of civil
society to OCT development can be enhanced by strengthening civil society
organisations in all spheres of cooperation.
(7)       Given the OCTs
geographical position, cooperation between them and their neighbours, despite
the different status vis-à-vis Union law of each actor in a given geographical
area, shall be pursued in the interests of all sides, and with a particular
focus on areas of common interest and the promotion the Union's values and
standards.
(8)       The Union shall support
the policies and strategies of an OCT in an area of mutual interest on the
basis of the specific need, potential and choice of the OCT concerned.
(9)       The association should aim
at ensuring the conservation, restoration and sustainable use of biological
diversity and ecosystem services as a key element for the achievement of
sustainable development. 
(10)     The OCTs are host to wide
terrestrial and marine biodiversity. Climate change can impact on OCTs' natural
environment and constitutes a threat undermining their sustainable development.
Actions in the fields of conservation of biodiversity and ecosystem services,
disaster risk reduction, sustainable management of natural resources and
promotion of sustainable energy will contribute to adaptation and mitigation of
climate change in the OCTs.
(11)     The significant role which OCTs
could play in contributing to the Union's commitments under Multilateral
Environmental Agreements should be recognised in the relations between the
Union and the OCTs.
(12)     It is important to support
the OCTs in their efforts in becoming less dependent on fossil fuels, with a
view to reducing their vulnerability to fuels access and price volatility, thus
making their economy more resilient and less vulnerable to external shocks.
(13)     The Union may assist the
OCTs to reduce their vulnerability to disasters and support the actions and
measures they undertake for this purpose.
(14)     The effects of the OCTs'
remoteness constitute a barrier to their competitiveness and thus it is
important to improve the accessibility of the OCTs.
(15)     The Union and the OCTs
recognise the importance of education as a lever for the OCTs' sustainable
development. 
(16)     Further economic and social
development of the OCTs should be mutually supportive and aim at strengthening
competitiveness of the OCTs' economy, as well as attaining social welfare and
inclusion, in particular as regards vulnerable groups and persons with
disabilities. To that end, cooperation between the Union and OCTs should
include exchange of information and best practice in the relevant areas,
including skills development and social protection, and promote the rights of
persons with disabilities, bearing in mind the principles of the UN Convention
on the Rights of Persons with Disabilities. Moreover, the association between
the Union and OCTs should contribute to the promotion of decent work, including
best practice in social dialogue, as well as respect for core labour standards,
equal opportunities, non-discrimination and accessibility in the OCTs and
regions where they are located.
(17)     The incidence of
communicable diseases in the OCTs, such as dengue in the Caribbean and the
Pacific and Chikungunya in the Indian Ocean region, can have significant
negative health and economic impacts. Beyond decreasing the productivity of
affected populations, epidemics in OCTs are likely to heavily impact tourism,
which is a mainstay of many OCTs’ economies. With large numbers of tourists and
migrant workers travelling to OCTs, they are vulnerable to importation of
infectious diseases. Inversely, the large flow of people travelling back from
OCTs could be a vector of introduction of communicable diseases in Europe.
Ensuring a “safe tourism” is therefore a critical factor for the sustainability
of the OCT economies that heavily rely on tourism.
(18)     The association between the
Union and the OCTs shall take into account and contribute to the preservation
of the cultural diversity and identity of OCTs.
(19)     The Union recognises the
importance to develop a more active partnership with the OCTs as regards to
good governance and the fight against organised crime, trafficking in human
beings, terrorism and corruption.
(20)     Trade and trade-related
cooperation between the Union and the OCTs should contribute to the objective
of sustainable development in economic development, social development and
environmental protection dimensions. 
(21)     Global changes, reflected
in the continuing process of trade liberalisation, broadly implicate the Union,
the principal trading partner of the OCTs, their ACP neighbours and other
economic partners. 
(22)     The OCTs are fragile island
environments requiring adequate protection, including in respect of waste
management. In respect of radioactive waste, Article 198 of the Euratom Treaty
and the related secondary legislation provide for this, except with regard to
Greenland, to which the Euratom Treaty does not apply. For other waste, it
should be specified which Union rules are to apply in respect of the OCTs.
(23)     This
Decision should provide for more flexible rules of origin, including new
possibilities of cumulation of origin. Cumulation should be possible not only
with OCTs and Economic Partnership Agreement (EPA) countries, but under certain
conditions, also with products originating in countries with which the Union is
applying a free trade agreement, and for products entering the Union duty-free
quota-free under the Union's General System of Preferences[13], also subject to
conditions. These conditions are necessary to prevent trade circumvention and
ensure the proper functioning of the cumulation arrangements.
(24)     The
procedures for certification of OCT origin should be updated, in the interests
of the operators and administrations concerned in the OCTs. Provisions on
administrative cooperation between the Union and the OCTs should also be
updated accordingly. 
(25)     Methods
of administrative cooperation and a possibility to withdraw temporarily
preferential treatment in respect of all or of certain products originating in
the OCTs in cases of fraud, irregularities or systematic failure to comply with
the rules concerning the origin of the products, or failure to provide
administrative cooperation have to be established. In addition, sufficiently
detailed safeguard and surveillance provisions should
be laid down. This should allow OCTs and Union competent authorities as well as
economic operators to rely on clear and transparent rules and procedures.
Finally, it is a common interest to ensure the proper application of the
procedures and arrangements that allow the OCTs to export goods to the EU
duty-free quota-free. Therefore, it is appropriate to include a provision
clarifying the consequences of administrative errors in the application of such
procedures and arrangements leading to losses for the Union budget in terms of
import duties. Such a provision should explicitly confirm that the financial
burden of such losses incurred is not to be borne by the Union budget but by
the Member State that has special relations with the OCT whose authorities have
committed the error. That provision should not distinguish between goods coming
from OCTs and goods coming from third countries and should cover both
situations.
(26)     Taking into account the
aims of integration and the developments of global trade in the area of
services and establishment, it is necessary to support the development of
services markets and investment possibilities by improving the market access of
OCT services and investment to the Union market. In this regard the Union
should offer to OCTs the best possible treatment offered to any other trading
partner through comprehensive most favoured nation clauses, while ensuring more
flexible possibilities for trade relations for OCTs by limiting the treatment offered
by OCTs to the Union to what has been offered to other major trading economies.
(27)     Intellectual property
rights are a crucial component for stimulating innovation and are a tool to
promote economic and social development. They benefit countries by allowing
them to protect intellectual creations and assets. Their protection and
enforcement helps to facilitate trade, growth and foreign investment, as well
as to combat the health and safety risks of counterfeit products. OCTs can
benefit from a policy on intellectual property rights, in particular in the
context of the preservation of biodiversity and the development of technology.
(28)     Sanitary and phyto-sanitary
measures and technical barriers to trade may have an impact on trade and
require cooperation. Trade and trade-related cooperation also should address
competition policies and intellectual property rights, which affect the
equitable distribution of the gains of trade.
(29)     To ensure that OCTs may
participate under the best conditions in the Union's internal market as well as
regional, sub-regional and international markets, it is important to develop
the capacity of OCTs in relevant areas. These include the development of human
resources and their skills, the development of small and medium enterprises,
the diversification of economic sectors and the implementation of an
appropriate legal framework in order to achieve a business climate conducive to
investment. 
(30)     Cooperation in the area of
financial services between the Union and OCTs should contribute to build a
safer, sounder, more transparent financial system that is essential to enhance
global financial stability and to underpin sustainable growth. Efforts in that
area should focus towards convergence with internationally agreed standards and
approximation of OCT legislation with Union acquis on financial services.
Adequate attention should be paid to strengthening administrative capacity of
OCT authorities, including supervisors.
(31)     Financial assistance to the
OCTs should be allocated on the basis of uniform, transparent and effective
criteria, taking into account the needs and performances of the OCTs. Such
criteria should take into account the size of the population, the level of
Gross Domestic Product (GDP), the level of previous allocations from the
European Development Fund (EDF) and constraints due to the geographical
isolation of OCTs.
(32)     In the interest of
efficiency, simplification and recognition of the management capacities of the
OCT authorities, the financial resources granted to the OCTs should be managed
on the basis of a reciprocal partnership. Moreover, the authorities of the OCTs
should assume the responsibility for the formulation and implementation of the
policies agreed upon between the parties as cooperation strategies.
(33)     The procedures regarding
financial assistance provided for in Articles 9 and 82 delegate the main
responsibility for 11th EDF programming and implementing cooperation to the
OCTs in particular. Cooperation will be conducted predominantly in conformity
with OCT territorial regulations and will underpin support for the monitoring,
evaluation and audit of the operations programmed. In addition, it is necessary
to clarify that OCTs are eligible to different sources of funding provided for
in Article 76.
(34)     In
order to adopt detailed rules for the preparation of
the programming documents, their follow-up, audit, evaluation, review and
implementation, as well as for reporting and financial corrections, the power to adopt acts in accordance with Article 290 of the Treaty
on the Functioning of the European Union should be delegated to the Commission
in respect of Part IV of this Decision. In order to
take into account technological developments and changes in customs
legislation, the power to adopt acts amending the Appendices to Annex VI, in accordance with Article 290 of the Treaty on the Functioning of
the European Union, should also be delegated to the Commission. It is of particular importance that the Commission carry out
appropriate consultations during its preparatory work, including at expert
level. The Commission, when preparing and drawing up delegated acts, should
ensure a simultaneous, timely and appropriate transmission of relevant
documents to the Council. 
(35)     [The arrangements for
association laid down in this Decision should not be applied to Bermuda in
accordance with the wishes of the Government of Bermuda.]
(36)     By virtue of this Decision,
the Council should be able to produce an innovative response to all the factors
mentioned above, which is both consistent and tailored to the variety of
situations. 
(37)     This
Decision should replace Decision 2001/822/EC,
HAS ADOPTED THIS DECISION: 
Part One
General provisions of the Association of the Overseas Countries and Territories
with the Union
Chapter 1
General provisions
Article 1
Purpose
1.           The association of the
overseas countries and territories (OCTs) with the Union (hereinafter referred
to as the "association") constitutes a partnership, based on Article
198 of the Treaty on the functioning of the European Union, to support the
OCTs' sustainable development as well as to promote the values and standards of
the Union in the wider world. 
2.           The partners to the association
are the Union, the OCTs and the Member States to which they are linked.
Article 2
Objectives,
principles and values
1.           The association between the
Union and the OCTs shall be based on objectives, principles and values shared
by the OCTs, the Member States to which they are linked and the Union.
2.           The association shall
pursue the overall objectives laid down in Article 199 of the Treaty, by the
enhancement of the OCT's competitiveness, the strengthening of the OCTs'
resilience, the reduction of their vulnerability and the promotion of
cooperation between them and other partners.
3.           In pursuing those
objectives, the association shall respect the fundamental principles of
liberty, democracy, human rights and fundamental freedoms, the rule of law,
good governance and sustainable development, all of which are common to the
OCTs and the Member States to which they are linked
4.           There shall be no
discrimination based on sex, racial or ethnic origin, religion or belief,
disability, age or sexual orientation in the areas of cooperation referred to
in this Decision.
5.           The partners recognise
each other's rights to determine their sustainable development policies and
priorities, to establish their own levels of domestic environmental and labour
protection, and to adopt or modify accordingly the relevant laws and policies,
consistently with commitment to the internationally recognised standards and
agreements. In doing so, they shall strive to ensure high levels of
environmental and labour protection.
6.           In implementing this
Decision, the partners shall be guided by the principles of transparency,
subsidiarity and the need for efficiency and shall equally address the three
pillars of OCTs' sustainable development: economic development, social
development and environmental protection.
Article 3
Management
of the association
Management of the association shall
be conducted by the Commission and the OCT authorities and, where necessary, by
the Member State to which the OCT is linked, in accordance with respective
institutional, legal and financial competences.
Article 4
Territorial
application
The association shall apply to the OCTs
listed in Annex II to the Treaty [except for Bermuda].
Article 5
Mutual
interests, complementarity and priorities
1.           The association is the
framework for policy dialogue and cooperation on issues of mutual interest.
2.           Priority shall be given to
cooperation in areas of mutual interest, such as:
(a)         
the economic diversification of OCT economies,
including their further integration in world and regional economies;
(b)         
the promotion of green growth;
(c)         
the sustainable management of natural resources,
including the conservation and sustainable use of biodiversity and ecosystem
services;
(d)         
the adaptation to and mitigation of impacts of
climate change;
(e)         
the promotion of disaster risk reduction;
(f)           
the promotion of research, innovation and scientific
cooperation activities;
(g)         
the promotion of social, cultural and economic
exchanges between the OCTs, their neighbours and other partners.
3.           Cooperation in the areas
of mutual interest aims at the promotion of OCT self-reliance and of the
development of OCTs' capacities to formulate, implement and monitor strategies
and policies set out in paragraph 2.
Article 6
Promotion
of the association
1.           With an aim to strengthen
the relations between themselves, the Union and the OCTs endeavour to make the
association known among their citizens, in particular by promoting the
development of the links and cooperation between the authorities, academic
community, civil society and businesses of OCTs on the one hand and their
interlocutors within the Union on the other.
2.           The Member States shall support
the OCTs' efforts to strengthen and promote their relations with the Union as a
whole.
Article 7
Regional
cooperation, regional integration and cooperation with other partners
1.           Subject to Article 3 of
this Decision, the association aims at supporting the OCTs in their efforts to
take part in relevant international, regional and/or sub-regional cooperation
initiatives as well as regional or sub-regional integration processes, in line
with their own aspirations and in accordance with objectives and priorities
defined by the competent OCT authorities.
2.           To this end, the Union and
the OCTs may exchange information and best practices or establish any other
form of close cooperation and coordination with other partners in the context
of the OCTs' participation in regional and international organisations, where
appropriate by means of international agreements.
3.           The association aims at
supporting cooperation between the OCTs and other partners in the areas of
cooperation set out in Parts Two and Three of this Decision. In that respect, the
objective of the association is to promote the cooperation between the OCTs and
the outermost regions, referred to in Article 349 of the Treaty, their
neighbouring African, Caribbean and Pacific (ACP) and non-ACP States. In order
to achieve that objective, the Union shall improve coordination and synergies
between cooperation programmes supported by different EU financial instruments.
4.           The support to OCTs'
participation in relevant regional integration organisations shall focus in
particular on:
(a)         
capacity building of relevant regional
organisations and institutions of which OCTs are members;
(b)         
regional or sub-regional initiatives such as the
implementation of sectoral reform policies relating to the areas of cooperation
identified in Parts Two and Three of this Decision;
(c)         
the awareness and knowledge of the OCTs on the
impacts of regional integration processes in different areas;
(d)         
OCT participation in the development of regional
markets within the context of regional integration organisations;
(e)         
cross-border investment between OCTs and their
neighbours.
Article 8
Specific
treatment
1.           The association shall take
into account the diversity of the OCTs in terms of economic development and capacity
to fully benefit from regional cooperation and regional integration referred to
in Article 7.
2.           A specific treatment shall
be established for isolated OCTs.
3.           In order to enable isolated
OCTs to overcome structural and other obstacles to their development, this specific
treatment shall take account of their specific difficulties, inter alia, when
determining the volume of financial assistance and the conditions attached
thereto.
4.           The OCTs which shall be considered
to be isolated are listed in Annex I.
Chapter 2
Actors of Cooperation 
Article 9
General
approach
1.           The association shall be
based on a broad dialogue and consultations on issues of mutual interest
between the OCTs, the Member States to which they are linked and the Commission,
and, if appropriate, the European Investment Bank (EIB). 
2.           The OCTs shall organise,
where appropriate, a dialogue and consultations with authorities and bodies
such as:
(a)         
the competent local and other public
authorities;
(b)         
the economic and social partners;
(c)         
any other appropriate body representing civil
society, environmental partners, non-governmental organisations, and bodies
responsible for promoting of equality between men and women.
Article 10
Actors
of cooperation
1.           Actors of cooperation in
the OCTs shall include:
(a)         
the OCTs' governmental authorities;
(b)         
the local authorities within the OCTs;
(c)         
public service providers and civil society
organisations, such as social, business, employers' and trade union
associations, and local, national or international non-governmental organisations;
(d)         
regional and sub-regional organisations.
2.           The Member States to which
the OCTs are linked shall inform the Commission within three months of the
entry into force of this Decision of the governmental and local authorities
referred to in the paragraphs 1(a) and (b).
Article 11
Responsibilities
of the Non-governmental actors
1.           Non-governmental actors
may play a role in the exchange of information and consultations concerning the
cooperation, and in particular for the preparation and implementation of cooperation
assistance, projects or programmes. They may receive a delegation of financial
management powers for implementing such projects or programmes for the purpose
of supporting local development initiatives.
2.           Non-governmental actors eligible
for decentralised management of projects or programmes shall be identified by
agreement between the OCT authorities, the Commission and the Member State to
which the OCT is linked, taking into account the subject concerned, their
expertise and field of activity. The process of identification shall be
conducted in each OCT as part of the broad dialogue and consultations referred
to in Article 9.
3.           The association aims at contributing
to the efforts of the OCTs to strengthen civil society organisations, concerning
in particular their creation and development, and the development of the
arrangements necessary for opening their involvement in the design,
implementation and evaluation of development strategies and programmes. 
Chapter 3
Institutional
framework of the Association
Article 12
Guiding
principles for dialogue
1.           The Union, the OCTs and
the Member States to which they are linked, shall regularly engage in a
comprehensive and political dialogue.
2.           The dialogue shall be
conducted in full compliance with the respective institutional, legal and
financial powers of the Union, of the OCTs and of the Member States to which
they are linked. The dialogue shall be conducted in a flexible manner: it may
be formal or informal, at an appropriate level or format and conducted within
the framework referred to in Article 13.
3.           The dialogue shall enable
the OCTs to take a full part in the implementation of the association.
4.           The dialogue shall focus,
inter alia, on specific political issues of mutual concern or of general significance
for the attainment of the objectives of the association.
Article 13
Instances
of the association
1.           The association shall establish
the following instances of dialogue:
(a)         
an OCT-EU forum for dialogue (the OCT-EU Forum),
shall meet annually to bring together OCT authorities, representatives of the
Member States and the Commission. Members of the European Parliament,
representatives of the EIB, and representatives of the outermost regions shall
be associated with the OCT-EU Forum, where appropriate;
(b)         
on a regular basis, the Commission, the OCTs and
the Member States to which they are linked shall hold trilateral consultations.
These consultations shall be organised as a rule four times a year on the
initiative of the Commission or at the request of the OCTs and of the Member
States to which they are linked. 
(c)         
in agreement between the OCTs, the Member States
to which they are linked and the Commission, working parties, acting in an
advisory capacity, shall be set up to follow the implementation of the association,
in a form appropriate to the issues to be addressed. These working parties
shall provide for technical discussions on matters which are of specific
concern to the OCTs and the Member States to which they are linked,
complementing the work that is being done in the OCT-EU Forum and / or in the
trilateral consultations.
2.           The Commission shall chair
the OCT-EU Forum, the trilateral consultations and the working parties and
shall provide their secretariat.
Part Two
Areas of cooperation for sustainable development in the framework of the
Association
Chapter 1
Environmental issues, climate change and disaster risk reduction
Article 14
General objectives and principles
In the context of the association, cooperation
in the field of environment, climate change and disaster risk reduction may
concern: 
(a)                   
support to the OCTs efforts to define and
implement policies, strategies, action plans and measures;
(b)                   
support to OCTs' efforts to integrate in regional
networks and initiatives;
(c)                   
the promotion of sustainable resource use and
resource efficiency, and encouragement to the decoupling of economic growth
from environmental degradation. 
Article 15
Sustainable management and conservation of biodiversity and ecosystem services
In the context of the association, cooperation
in the field of sustainable management and conservation of biodiversity and
ecosystem services may concern:
(a)                   
the promotion of the establishment and effective
management of marine and terrestrial protected areas and improved management of
existing protected areas;
(b)                   
the encouragement of sustainable management of
marine and terrestrial resources, which contribute to protecting important
species, habitats and ecosystem functions outside protected areas;
(c)                   
the strengthening of conservation and
sustainable use of marine and terrestrial biodiversity and ecosystems by:
(i) addressing the wider ecosystem challenge of
climate change by maintaining healthy, resilient ecosystems and fostering green
infrastructure and ecosystem- based approaches to climate change adaptation and
mitigation which often bring multiple benefits;
(ii) strengthening capacities at a local,
regional and/or international scale, by promoting exchange of information,
knowledge and best practice amongst all stakeholders including public authorities,
landowners, private sector, researchers and civil society;
(iii) strengthening existing nature
conservation programmes and related efforts within and outside conservation
areas;
(iv) broadening the knowledge base and filling
the knowledge gaps, including quantifying the value of ecosystem functions and
services;
(d)                   
the encouragement and facilitation of regional
cooperation in order to address issues such as invasive alien species or the
impacts of climate change;
(e)                   
the development of mechanisms to lever resources
including payments for ecosystem services.
Article 16
Sustainable forest management
In the context of the association,
cooperation in the field of sustainable forest management may concern the
promotion, the conservation and sustainable management
of forests, including the use of trees to conserve the environment for erosion
protection and desertification control, afforestation and management of timber
exports.
Article 17
Integrated coastal zone management
In the context of the association, cooperation
in the field of integrated coastal zone management may concern:
(a)                   
the support to the
efforts of the OCTs towards an effective sustainable management of marine and
coastal zones in defining strategic and integrated approaches to marine and
coastal zone planning and management; 
(b)                   
conciliation of economic and social activities
such as fisheries and aquaculture, tourism, maritime transports with the
potential of marine and coastal zones in terms of renewable energy, raw
materials, whilst taking into account impacts of climate change and human
activities.
Article 18
Maritime Affairs
In the context of the association,
cooperation in the field of maritime affairs may concern:
(a)                   
the strengthening of the dialogue on issues of
common interest in that field;
(b)                   
the promotion of marine knowledge and
biotechnology, ocean energy, maritime surveillance, coastal zone management and
an ecosystem based management;
(c)                   
the promotion of integrated approaches at
international level.
Article 19
Sustainable management of fish stocks
1.           In
the context of the association, cooperation in the field of sustainable
management of fish stocks shall be based on the following principles:
(a)         
commitment to responsible fisheries management
and fishing practices;
(b)         
refraining from measures or activities that are
inconsistent with the principles of sustainable exploitation of fisheries
resources;
(c)         
without prejudice to
existing or future bilateral fisheries partnership agreements between the Union
and the OCTs, the Union and the OCTs shall aim to regularly consult each other
on the conservation and management of the living marine resources and to
exchange information on the ongoing state of resources within the context of
the relevant instances of the association provided for in Article 13.
2.           Cooperation
in the field referred to in
paragraph 1 may concern: 
(a)         
the active promotion of good governance, best
practices and responsible fisheries management in the conservation and
sustainable management of fish stocks, including fish stocks of common interest
and those managed by regional fisheries management organisations;
(b)         
dialogue and cooperation regarding the
conservation of fish stocks including measures to fight illegal, unreported and
unregulated fishing and effectively cooperating with and within regional
fisheries management organisations. Dialogue and cooperation shall include control
and inspection schemes, incentives and obligations for a more effective
management of fisheries and coastal environments in the long term.
Article 20
Sustainable water management
1.           In
the context of the association, the Union and the OCTs may cooperate in the
area of sustainable water management through water policy and institution
building, protecting water resources, water supplies in rural and urban areas
for domestic, industrial or agricultural purposes, storage, distribution and
management of water resources and waste water management.
2.           In
the field of water supply and sanitation sector, particular attention shall be
given to access in under-served areas to drinking water supply and sanitation
services, which contribute directly to human resources development by improving
the state of health and increasing productivity. 
3.           Cooperation
in these areas shall be guided by the principle that the continuing need to
extend the provision of basic services in water and sanitation to both urban
and rural populations must be addressed in environmentally sustainable ways.
Article 21
Waste management
In the context of the association,
cooperation in the field of waste management may concern the promotion of the
use of the best environmental practice in all operations related to waste
management, including the reduction of waste, recycling or other processes for
the extraction of secondary raw materials and the disposal of the waste. 
Article 22
Sustainable energy
In the context of the association,
cooperation in the field of sustainable energy may concern: 
(a)                   
energy production, in particular the
development, promotion, use and storage of sustainable energies such as solar,
hydro-electric, biomass, geothermal, wave, marine and wind energies;
(b)                   
energy policies and regulations, in particular the
formulation of policies and adoption of regulations guaranteeing affordable and
sustainable energy tariffs;
(c)                   
energy efficiency, in particular the development
and introduction of energy efficiency standards and implementation of energy
efficiency measures in different sectors (industrial, commercial, public and
households), as well as accompanying educational and awareness activities;
(d)                   
transport, in particular the development,
promotion and use of more environmental-friendly public and private transport
means such as hybrid, electric or hydrogen vehicles, carpooling and cycling
schemes;
(e)                   
town planning and construction, in particular the
promotion and introduction of high environment quality standards and high
energy performance in urban planning and construction;
(f)                     
tourism, in particular the promotion of energy
self-sufficient (renewable energy based) and/or green tourism infrastructures.
Article 23
Climate change
In the context of the association,
cooperation in the field of climate change aims at supporting the initiatives
of the OCTs concerning adaptation to climate change and its mitigation, and may
cover:
(a)                   
the identification of territorial, regional
and/or international actions, plans, or measures in view of adapting to climate
change;
(b)                   
the integration of adaptation to climate change and
its mitigation in public policies and strategies;
(c)                   
the elaboration and identification of
statistical data and indicators, essential tools for policy making and
implementation;
(d)                   
the promotion of the participation of the OCTs
in regional and international instances of dialogue in order to foster exchange
of knowledge and experience.
Article 24
Disaster risk reduction
In the context of the association,
cooperation in the field of disaster risk reduction may concern:
(a)                   
the development or perfection of systems of
disaster prevention and preparedness, including prediction and early-warning
systems, with a view to reducing the consequences of disasters;
(b)                   
the development of detailed knowledge of the
exposure to the disasters and the current response capacities in the OCTs and
in the regions where they are located;
(c)                   
the strengthening of existing measures of
disaster prevention and preparation at local, national and regional levels;
(d)                   
the improvement of response capacities of the
actors concerned, to render them more coordinated, effective and efficient;
(e)                   
the improvement of awareness-raising and
information to the population regarding the exposure to risks, prevention,
preparation and the response in the event of disaster, with due attention to
the specific needs of persons with disabilities;
(f)                     
the strengthening of collaboration between key
actors involved in civil protection;
(g)                   
the promotion of the participation of the OCTs
in regional, European and/or international instances in order to allow a more
regular exchange of information and a closer cooperation among the different
partners in the event of disaster.
Chapter 2
Accessibility
Article 25
General objectives
1.           In the context of the association,
cooperation in the field of accessibility aims at:
(a)         
ensuring greater access of OCTs to global
transport networks;
(b)         
ensuring greater access of OCTs to information
and communication technologies and services.
2.           Cooperation in the context
referred to in paragraph 1 may encompass:
(a)         
policy and institution building;
(b)         
transport by road, rail, air, sea or inland
waterway;
(c)         
storage facilities in sea- and airports.
Article 26
Maritime transport
1.           In the context of the association,
cooperation in the field of maritime transport aims at the development and
promotion of cost-effective and efficient maritime transport services in the
OCTs and may concern:
(a)         
the promotion of efficient shipment of cargo at
economically and commercially meaningful rates;
(b)         
the facilitation of greater OCT participation in
international shipping services;
(c)         
the encouragement of regional programmes;
(d)         
the support to local private sector involvement
in shipping activities;
2.           The Union and the OCTs
shall promote shipping safety, security of crews and the prevention of
pollution.
Article 27
Air transport
In the context of the association,
cooperation in the field of air transport may concern:
(a)                   
the reform and modernisation of the OCT air
transport industries;
(b)                   
the promotion of their commercial viability and
competitiveness;
(c)                   
the facilitation of private sector investment
and participation;
(d)                   
the promotion of exchange of knowledge and good
business practice.
Article 28
Air transport safety
In the context of the association,
cooperation in the field of air transport safety aims at supporting the OCTs in
their efforts to comply with the relevant international standards and may cover
inter alia:
(a)                   
the implementation of air navigation safety
systems;
(b)                   
the implementation of airport security and
strengthening of the capacity of civil aviation authorities to manage all
aspects of operational security placed under their control;
(c)                 
the development of infrastructures and human
resources.
Article 29
Information and communication technologies services
In the context of the association,
cooperation in the field of information and
communication technology (ICT) services aims at spurring, in the OCTs, innovation, economic growth and improvements
in daily life for both citizens and businesses, including the promotion of
accessibility for persons with disabilities. Cooperation
shall, in particular, be directed at enhancing OCTs' regulatory
capacity and may support the expansion of ICT networks and services through the following measures:
(a)                   
creation of a
predictable regulatory environment that keeps pace with technological
developments, stimulates growth and innovation and fosters competition and
consumer protection;
(b)                   
dialogue on the various policy aspects regarding
the promotion and monitoring of the information society;
(c)                   
exchange of information on standards and
interoperability issues;
(d)                   
promotion of cooperation in the field of ICT
research and in the field of ICT-based research infrastructures;
(e)                   
development of services and applications in
domains of high societal impact.
Chapter 3
Research and innovation
Article 30
Cooperation in research and innovation
In the context of the association,
cooperation in the field of research and innovation may cover science,
technology, including information and communication technologies, with the aim to contribute to the OCTs' sustainable
development and to promote excellence and industrial competitiveness within
OCTs. In particular, cooperation may concern:
(a)                   
dialogue, coordination and creation of synergies
between OCT and Union policies and initiatives with regard to science,
technology and innovation;
(b)                   
policy and institutional building within OCTs
and concerted actions at local, national or regional level, with a view to developing
science, technology and innovation activities and their application;
(c)                   
cooperation between legal entities from the OCTs,
the Union, the Member States and the third countries;
(d)                   
participation of individual OCT researchers,
research bodies and legal entities from OCTs in the framework for cooperation
related to research and innovation programmes within the Union;
(e)                   
training and international mobility of OCT researchers and exchange.
Chapter 4
Youth, education, training, health, employment and social policy
Article 31
Youth
1.           The Union shall ensure
that natural persons from OCTs, as defined in Article 49, can participate in
initiatives of the Union concerning youth on the same basis as nationals of
Member States. 
2.           The association aims at strengthening
the ties between young people living in the OCTs and the Union, among others by
promoting learning mobility of OCT youth and by fostering mutual understanding
between young people.
Article 32
Education and training
1.           In the context of the
association, cooperation in the field of education and training may cover:
(a)         
the provision of high quality, inclusive
education at primary, secondary and higher education level and in the area of
vocational education and training; 
(b)         
the support to the OCTs in defining and
implementing education policies. 
2.           The Union shall ensure
that natural persons from the OCTs, as defined in Article 49, can participate
in education initiatives of the Union on the same basis as nationals of Member
States. 
3.           The Union shall ensure
that educational bodies and institutes from OCTs can take part in education
related cooperation initiatives of the Union on the same basis as the
educational bodies and institutes of the Member States.
Article 33
Employment and social policy
1.           The Union and the OCTs shall
maintain dialogue in the area of employment and social policy in order to contribute
to the economic and social development of the OCTs and the promotion of decent work in the OCTs and
regions where they are located. Such a dialogue shall also aim at supporting
the efforts of the OCTs' authorities to develop policies and legislation in
this area.
2.           The dialogue shall mainly
consist of exchange of information and best practices relating to policies and
legislation in the area of employment and social policy that are of mutual
interest to the Union and the OCTs. In this regard, areas such as skills
development, social protection, social dialogue, equal opportunities, non-discrimination
and accessibility for persons with disabilities, health and safety at work and
other labour standards shall be taken into consideration.
Article 34
Public health
In the context of the association,
cooperation in the field of public health aims at strengthening the OCTs'
capacity for surveillance, early detection and response to outbreaks of
communicable diseases through measures including:
(a)                   
actions to strengthen preparedness and response
capacity against cross-border health threats such as infectious diseases which
should be built on existing structures and should target unusual events;
(b)                   
capacity building through strengthening public
health networks at regional level, facilitating exchange of information among
experts and promoting adequate training;
(c)                   
development of tools and communication platforms
as well as e-learning programs adapted to OCTs’ particular needs.
Chapter 5
Culture
Article 35
Cultural exchanges and dialogue
1.           In the context of the association,
cooperation in the field of cultural exchanges and dialogue may concern:
(a)         
the self-reliant development of the OCTs, this
being a process centred on people themselves and rooted in each people's
culture;
(b)         
the support to the policies and measures adopted
by the competent authorities of OCTs to enhance their human resources, increase
their own creative capacities and promote their cultural identities;
(c)         
the participation by the population in the
process of development.
(d)         
the development of a common understanding and
enhanced exchange of information on cultural and audiovisual matters through
dialogue. 
2.           Through their cooperation
the Union and the OCTs shall seek to stimulate cultural exchanges between each
other through:
(a)         
cooperation between the cultural and creative
sectors of all partners;
(b)         
promotion of the circulation of cultural and
creative works and operators between them;
(c)         
policy cooperation in order to foster policy
development, innovation, audience building and new business models.
Article 36
Audiovisual cooperation
1.           In the context of the
association, cooperation in the audiovisual field aims at promoting each
other's audiovisual productions and may cover the following actions:
(a)         
cooperation and exchange between the respective
broadcasting industries; 
(b)         
encouraging exchange of audiovisual works; 
(c)         
exchange of information and views on audiovisual
and broadcasting policy and regulatory framework between competent authorities;

(d)         
encouraging visits to and participation in
international events held in each other's territory as well as in third
countries.
2.           Co-produced audiovisual
works shall be entitled to benefit from any scheme for the promotion of local
or regional cultural content set up in the Union, the OCTs and the Member
States to which they are linked.
Article 37
Performing arts 
In the context of the association, cooperation
in the field of performing arts may concern:
(a)                   
the facilitation of increased contacts between
practitioners of performing arts in areas such as professional exchanges and
training including participation in auditions, development of networks and
promotion of networking. 
(b)                   
the encouragement of joint productions between
producers of one or several Member States of the Union and one or several OCTs.

(c)                   
the encouragement of the development of
international theatre technology standards and the use of theatre stage signs,
including through appropriate standardisation bodies. 
Article 38
Protection of cultural heritage sites and historic monuments 
In the context of the association, cooperation
in the field of cultural heritage sites and historic monuments aims at allowing
the promotion of exchanges of expertise and best practices through: 
(a)                   
the facilitation of exchanges of experts;
(b)                   
the collaboration on professional training;
(c)                   
the awareness of the local public;
(d)                   
the counselling on the protection of the
historic monuments and protected spaces and on the legislation and
implementation of measures related to heritage, in particular its integration
into local life.
Chapter 6
Fight against organised crime
Article 39
Fight against organised crime, trafficking in human beings, child sexual abuse
and sexual exploitation, terrorism and corruption
1.           In the context of the
association, cooperation in the field of organised crime may include:
(a)         
the development of innovative and effective
means of police and judicial cooperation, including cooperation with other
stakeholders such as civil society, in the prevention of and fight against organised
crime, trafficking in human beings, child sexual abuse and sexual exploitation,
terrorism and corruption;
(b)         
support in order to increase the efficiency of
OCTs' policies to prevent and fight against organised crime, trafficking in
human beings, child sexual abuse and sexual exploitation, terrorism and
corruption, as well as the production, distribution and trafficking of all
kinds of narcotic drugs and psychotropic substances, preventing and reducing
drug use and drug-related harms, taking into account work carried out in these
areas by international bodies, through inter alia:
(i) training and capacity building in
preventing and fighting organised crime, including trafficking in human beings,
child sexual abuse and sexual exploitation, terrorism and corruption;
(ii) prevention including training, education and
health promotion, treatment and rehabilitation of dependent drug users,
including projects for the reintegration of dependent drug users into work and
social environments;
(iii) development of effective enforcement
measures;
(iv) technical, financial and administrative
assistance on the development of effective policies and legislation on
trafficking in human beings, in particular awareness raising campaigns,
referral mechanisms and victim protection systems, involving all relevant
stakeholders and civil society;
(v) technical, financial and administrative
assistance relating to the prevention, treatment and reduction of harms related
to drug use;
(vi) technical assistance to support the
development of legislation and of policy against child sexual abuse and sexual
exploitation;
(vii) technical assistance and training to
support capacity building and encourage compliance with minimum international
anti-corruption standards, and notably bearing in mind those set out in the UN
Convention against Corruption.
2.           In the context of the
association, the OCTs shall cooperate with the Union as regards the combat against
money laundering in accordance with Articles 69 and 70.
Part Three
Trade and trade related cooperation
Title I
General provisions
Article 40
General objectives
The general objectives of the trade and
trade related cooperation between the Union and the OCTs are to:
(a)                   
promote the economic and social development of
the OCTs by establishing close economic relations between them and the Union as
a whole;
(b)                   
stimulate the OCTs' effective integration in the
regional and world economies and the development of trade in goods and
services;
(c)                   
support OCTs in creating a favourable investment
climate to support social and economic development of OCTs;
(d)                   
promote the stability, integrity and
transparency of the global financial system, and good governance in the tax
area;
(e)                   
support the process of diversification of OCT
economies;
(f)                     
support OCT capacities to formulate and
implement policies necessary for the development of their trade in goods and
services;
(g)                   
support the OCTs' export and trading capacities;
(h)                   
support OCTs' efforts to converge their local
legislation with Union legislation, where relevant;
(i)                     
provide possibilities for targeted cooperation
and dialogue with the Union on trade and trade related areas.
Title II
Arrangements for trade in goods and services and establishment
Chapter 1
Arrangements for trade in goods
Article 41
Free access for originating goods
1.           Products originating in
the OCTs shall be imported into the Union free of import duty.
2.           The definition of
originating products and the methods of administrative cooperation relating
thereto are laid down in Annex VI.
Article 42
Quantitative restrictions and measures having equivalent effect
1.           The Union shall not apply
to imports of products originating in the
OCTs any quantitative restrictions or measures having equivalent effect.
2.           Paragraph 1 shall not
preclude prohibitions or restrictions on imports, exports or goods in transit
justified on grounds of public morality or public policy, the protection of health and life of humans, animals and plants,
the protection of national treasures
possessing artistic, historic or archaeological value, the conservation of exhaustible natural resources or the protection
of industrial and commercial property.
Such prohibitions or restrictions shall in no
case constitute a means of arbitrary or unjustifiable discrimination or a
disguised restriction of trade generally.
Article 43
Measures adopted by the OCTs
1.           The authorities of the
OCTs may retain or introduce in respect of imports of products originating in
the Union, such customs duties or quantitative restrictions as they consider
necessary in view of their respective development needs.
2.           For the fields covered by
this chapter, the OCTs shall grant to the Union a treatment no less favourable
than the most favourable treatment applicable to any major trading economy as
defined in paragraph 4.
3.           The provisions of
paragraph 2 shall not preclude an OCT from granting certain other OCTs or other
developing countries more favourable treatment than that accorded to the Union.
4.           For the purposes of this
Title, a "major trading economy" means any developed country, or any
country accounting for a share of world merchandise exports above one percent ,
or, without prejudice to paragraph 3, any group of countries acting
individually, collectively or through an economic integration agreement
accounting collectively for a share of world merchandise exports above 1.5
percent. For this calculation the latest available official data by the WTO on
leading exporters in world merchandise trade (excluding intra-EU trade) shall
be used. 
5.           The authorities of the
OCTs shall communicate to the Commission within a period of three months
following the entry into force of this Decision, the customs tariffs and lists
of quantitative restrictions which they apply in compliance with this Decision.
The authorities of the OCTs shall also
communicate to the Commission any subsequent amendments to such measures as and
when they are adopted.
Article 44
Non- discrimination
1.           The Union shall not
discriminate between OCTs and the OCTs shall not discriminate between Member
States of the Union.
2.           In compliance with Article
64, the implementation of the specific provisions in this Decision and in
particular its Articles 42(2) and 43, 46, 48, 50 and 58(3) shall not be deemed
to constitute a discrimination.
Article 45
Conditions for movements of waste
1.           Movements of waste between
the Member States and the OCTs shall be controlled in accordance with international
and Union law. The Union shall support the establishment and development of
effective international cooperation in this area with a view to protecting the
environment and public health.
2.           The Union shall prohibit
all direct or indirect export of waste to the OCTs, with the exception of
exports of non-hazardous waste destined for recovery operations while at the same
time the OCT authorities shall prohibit the direct or indirect import into
their territory of such waste from the Union or any third country, without
prejudice to specific international undertakings concerning these areas that
have been made, or may be made in future, in the competent international fora.
3.           As regards those OCTs,
which, due to their constitutional status, are not Party to the Basel
Convention, their relevant authorities shall expedite adoption of the necessary
internal legislation and administrative regulations to implement the provisions
of the Basel Convention[14] in those OCTs.
4.           In addition, the Member
States to which OCTs are linked shall promote the adoption by the OCTs of the
necessary internal legislation and administrative regulations to implement the
following acts: 
(a)         
Regulation (EC) No 1013/2006 of the European
Parliament and of the Council[15], as follows:
–              
Article 40 as regards exports of waste to
overseas countries or territories;
–                              
Article 46 as regards imports of waste from
overseas countries or territories;
(b)                     
Council Regulation (EC) No 1420/1999[16];
(c)                      
Commission Regulation (EC) No 1547/1999[17];
(d)                     
Directive
2000/59/EC of the European Parliament and of the Council[18] subject to the
time limits for transposition laid down in Article 16 thereof.
5.           One or more OCTs and the
Member States to which they are linked may apply their own procedures to export
of waste from the OCTs to that Member State.
6.           In this case, the Member
State to which the OCT is linked shall notify to the Commission the applicable
legislation within six months from the entry into force of this Decision as
well as any future relevant national legislation, and any subsequent amendments
to such legislation.
Article 46
Temporary withdrawal of preferences
In order to ensure the proper
implementation of this Decision, the Union may temporarily withdraw preferences
from an OCT in accordance with the provisions set out in Annex VII.
Article 47
Management of administrative errors
In case of error by the competent OCT
authorities in the issuance of certificates and methods of administrative
cooperation, and where this error leads to losses affecting Union import
duties, the Member State with whom the OCT that has committed the error has
special relations, shall compensate the Union budget for the loss incurred. 
Article 48
Safeguard and surveillance measures
In order to ensure the proper
implementation of this Decision, the Union may take safeguard and surveillance
measures set out in Annex VIII.
Chapter 2
Arrangements for trade in services and for establishment
Article 49
Definitions
For the purposes of this Chapter: 
(a)                   
'natural person from an OCT' means persons
ordinarily resident in an OCT who are nationals of a Member State or who enjoy
a legal status specific to an OCT. This definition is without prejudice to the
rights conferred by citizenship of the Union within the meaning of the Treaty;
(b)                   
'legal person of an OCT' means a legal person of
the OCT set up in accordance with the laws applicable in a given OCT, and
having its registered office, its central administration, or its principal
place of business in the territory in this OCT; should the legal person have
only its registered office or central administration in the OCT, it shall not
be considered as a legal person of the OCT, unless it engages in an activity
which has a real and continuous link with the economy of that country or
territory;
(c)                   
the respective definitions laid down in the
economic integration agreements referred to in Article 50(1) shall apply to the
treatment accorded between the Union and the OCTs.
Article 50
Most favourable treatment
1.           With respect to any
measures affecting trade in services and establishment in economic activities:
(a)         
the Union shall accord to natural and legal
persons of the OCTs a treatment no less favourable than the most favourable
treatment applicable to like natural and legal persons of any third country
with whom the Union concludes or has concluded an economic integration
agreement;
(b)         
An OCT shall accord to the natural and legal
persons of the Union a treatment no less favourable than the most favourable
treatment applicable to like natural and legal persons of any major trading
economy with whom it has concluded an
economic integration agreement after the entry into force of this Decision.
2.           The obligations set out in
paragraph 1 of this Article shall not apply to treatment granted: 
(a)         
in the framework of an internal market requiring
the parties thereto to significantly approximate their legislation with a view
to removing non-discriminatory obstacles to establishment and to trade in
services 
(b)         
under measures providing for recognition of
qualifications, licences or prudential measures in accordance with Article VII
of the General Agreement on Trade in Services (GATS) or the GATS Annex on
Financial Services. This is without prejudice to OCT specific measures under
this Article;
(c)         
under any international agreement or arrangement
relating wholly or mainly to taxation;
(d)         
under measures benefiting from the coverage of a
most-favoured nation exemption listed in accordance with Article II.2 of the
GATS.
3.           The authorities of an OCT
may with a view to promoting or supporting local employment, adopt regulations
to aid their natural persons and local activities. In this event, the OCT
authorities shall notify the Commission of the regulations they adopt so that
it may inform the Member States.
Article 51
Professional qualifications
With regard to the professions of doctor,
dentist, midwife, general nurse, pharmacist and veterinary surgeon, the
Council, acting unanimously on a proposal from the Commission, shall adopt the
list of professional qualifications specific to the OCTs which are to be
recognised in the Member States.
Title III
trade related Areas
Chapter 1
Trade and sustainable development
Article 52
General approach
Trade and trade related cooperation under
the association aims at contributing to sustainable development in its
economic, social and environmental dimensions. 
In this context, the domestic environmental
or labour laws and regulations of OCTs shall not be lowered in order to
encourage trade or investment. 
Article 53
Environmental and climate change standards in trade
1.           Trade and trade related
cooperation under the association aims at enhancing the mutual supportiveness
between trade and environmental policies and obligations. Trade and trade
related cooperation under the association shall take into account the
principles of international environmental governance and multilateral
environmental agreements.
2.           The ultimate objective of
the United Nations Framework Convention on Climate Change (UNFCCC) and its
Kyoto Protocol shall be pursued. Cooperation shall be based on the development
of the future international climate change framework in accordance with the
Bali Action Plan and the implementation of decisions emanating from the UNFCCC
Conferences of the Parties related to global temperature and emissions targets.
3.           Measures to implement
multilateral environmental agreements shall not be applied in a manner that
would constitute a means of arbitrary or unjustifiable discrimination between
the partners or a disguised restriction of trade. 
Article 54
Labour standards in trade
1.           The association aims at
promoting trade in such a way that it is conducive to full and productive
employment and decent work for all.
2.           The internationally
recognised core labour standards, as defined by the relevant International
Labour Organisation Conventions, shall be respected and implemented in law and
practice. Such labour standards include in particular respect for freedom of
association, right to collective bargaining, abolition of all forms of forced
or compulsory labour, elimination of the worst forms of child labour, the
minimum age for admission to employment and non-discrimination in respect to
employment. 
3.           The violation of core
labour standards cannot be invoked or otherwise used as a legitimate
comparative advantage. They shall not be used for protectionist purposes.
Article 55
Sustainable trade in fisheries products
With a view to promoting the sustainable
management of fish stocks, the association may include cooperation regarding
the combat of illegal, unreported and unregulated fishing and related trade.
Cooperation in this field aims at:
(a)                   
promoting the implementation of measures to
combat illegal, unreported and unregulated fishing and related trade in OCTs;
(b)                   
facilitating cooperation between OCTs and
regional fisheries management organisations, in particular with respect to the
development and effective implementation of control and inspection schemes,
incentives and measures for effective long term management of fisheries and
marine ecosystems.
Article 56
Sustainable timber trade
In the context of the association,
cooperation in the field of timber trade aims at promoting
trade in legally harvested timber. Such cooperation may include dialogue on
regulatory measures as well as exchange of information on market-based or
voluntary measures such as forest certification or green procurement policies.
Article 57
Sustainable development in trade
1.           In the context of the
association, cooperation in the of field sustainable development may be pursued
by:
(a)         
facilitating and promoting trade and investment
in environmental goods and services and goods that contribute to the
improvement of social conditions in OCTs;
(b)         
facilitating the removal of obstacles to trade
or investment regarding goods and services of particular relevance for climate
change mitigation, such as sustainable renewable energy and energy efficient
products and services, including through the adoption of policy frameworks
conducive to the deployment of best available technologies and through the
promotion of standards that respond to environmental and economic needs and
minimise technical obstacles to trade;
(c)         
promoting trade in goods that contribute to
social conditions and environmentally sound practices, including goods that are
the subject of voluntary sustainability assurance schemes such as fair and
ethical trade schemes, eco-labels, and certification schemes for natural
resource-based products;
(d)         
promoting internationally recognised principles
and guidelines in the area of corporate social responsibility, and encourage
companies operating in the territory of OCTs to implement them;
(e)         
exchanging information and best practices in the
area of corporate social responsibility.
2.           In the design and
implementation of measures aimed at protecting the environment or labour
conditions that may affect trade or investment, the Union and the OCTs shall
take account of available scientific and technical information, and relevant
international standards, guidelines or recommendations, including the
precautionary principle.
3.           The Union and the OCTs
shall apply full transparency to develop, introduce and implement any measures
aimed at protecting the environment and labour conditions affecting trade or
investment. 
Chapter 2
Other trade related areas
Article 58
Current payments and capital movements
1.           No restrictions shall be
imposed on any payments in freely convertible currency on the current account
of balance of payments between residents of the Union and of the OCTs.
2.           With regard to
transactions on the capital account of balance of payments, the Member States
and the OCT authorities shall impose no restrictions on the free movement of
capital for direct investments in companies formed in accordance with the laws
of the host Member State, country or territory and to ensure that the assets
formed by such investment and any profit stemming therefrom can be realised and
repatriated.
3.           The Union and the OCTs
shall be entitled to take the measures referred to in Articles 64, 65, 66, 75
and 215 of the Treaty on the Functioning of the European Union in accordance
with the conditions laid down therein mutatis mutandis.
4.           The OCT authorities, the
Member State concerned or the Union shall inform one another immediately of any
such measures and submit a timetable for their elimination as soon as possible.
Article 59
Competition policies
The elimination of distortions to
competition, with due consideration to the different levels of development and
economic needs of the OCTs, shall involve the implementation of local, national
or regional rules and policies including the control and, under certain
conditions, the prohibition of agreements between undertakings, decisions by
associations of undertakings and concerted practices between undertakings which
have as their object or effect the prevention, restriction or distortion of
competition. Such prohibition also relates to the abuse by one or more
undertakings of a dominant position in the territory of the Union or of the
OCTs.
Article 60
Protection of intellectual property rights
1.           An adequate and effective
level of protection of intellectual property rights, including means for
enforcing such rights, shall be ensured in line with the highest international
standards, where appropriate, with a view to reducing distortions and
impediments to bilateral trade.
2.           In the context of the
association, cooperation in this field may concern the preparation of laws and
regulations for the protection and enforcement of intellectual property rights,
the prevention of the abuse of such rights by right holders and the
infringement of such rights by competitors and support for regional
intellectual property organisations involved in enforcement and protection,
including the training of personnel. 
Article 61
Technical barriers to trade
The association may include cooperation in
the fields of technical regulation for goods, standardisation, conformity
assessment, accreditation, market surveillance and quality assurance with a
view to removing unnecessary technical barriers to trade between the Union and
the OCTs and to reduce differences in those areas.
Article 62
Consumer policy, consumer health protection and trade
In the context of the association,
cooperation in the field of consumer policy, consumer health protection and
trade may include the preparation of laws and regulations in the area of
consumer policy and consumer health protection, with a view to avoiding
unnecessary barriers to trade.
Article 63
Sanitary and phyto-sanitary measures
In the context of the association,
cooperation in the field of sanitary and phyto-sanitary measures aims at:
(a)                   
facilitating trade between the Union and the
OCTs as a whole and between OCTs and third countries, whilst safeguarding human,
animal and plant health or life in accordance with the WTO SPS Agreement;
(b)                   
addressing problems arising from sanitary and
phyto-sanitary measures;
(c)                   
ensuring transparency as regards sanitary and
phyto-sanitary measures applicable to trade between the Union and the OCTs;
(d)                   
promoting the harmonisation of measures with
international standards, in accordance with the WTO SPS Agreement;
(e)                   
supporting the effective participation of OCTs
in organisations that set international sanitary and phyto-sanitary standards;
(f)                     
promoting consultation and exchanges between
OCTs and European institutes and laboratories;
(g)                   
establishing and enhancing OCTs technical
capacity to implement and monitor sanitary and phyto-sanitary measures;
(h)                   
promoting technology transfer in the area of
sanitary and phyto-sanitary measures.
Article 64
Prohibition of protectionist measures 
The provisions of Chapters 1 and 2 shall
not be used as a means of arbitrary discrimination or a disguised restriction
on trade.
Chapter 3
Monetary and tax matters
Article 65
Tax carve out
1.           Without prejudice to the
provisions of Article 66, the most favoured- nation treatment granted in
accordance with the provisions of this Decision shall not apply to tax
advantages which the Member States or OCT authorities are providing or may
provide in the future on the basis of agreements to avoid double taxation or
other tax arrangements, or domestic tax legislation in force.
2.           Nothing in this Decision
may be construed so as to prevent the adoption or enforcement of any measure aimed
at preventing tax fraud or avoidance or evasion of taxes pursuant to the tax
provisions of agreements to avoid double taxation or other tax arrangements, or
domestic tax legislation in force.
3.           Nothing in this Decision
shall be construed so as to prevent the respective competent authorities from
distinguishing, in the application of the relevant provisions of their tax
legislation, between taxpayers who are not in the same situation, in particular
with regard to their place of residence, or with regard to the place where
their capital is invested.
Article 66
Tax and customs arrangements for Union funded contracts
1.           The
OCTs shall apply to contracts
funded by the Union tax and customs arrangements no less favourable than those
applied by them to the Member State to which the OCT is linked or to the states
to which the most-favoured nation treatment is granted, or to international development organisations with which they
have relations, whichever treatment is the most favourable.
2.           Subject
to paragraph 1, the following arrangements shall apply to contracts financed by
the Union:
(a)         
the contract shall not be subject in the
beneficiary OCT to stamp or registration duties or to fiscal charges having
equivalent effect, whether such charges already exist or are to be instituted
in the future; however, such contracts shall be registered in accordance with
the laws in force in the OCT and a fee corresponding to the service rendered
may be charged for it;
(b)         
profits and/or income arising from the
performance of contracts shall be taxable according to the internal fiscal
arrangements of the beneficiary OCT, provided that the natural or legal persons
who realise such profit and/or income have a permanent place of business in
that OCT, or that the performance of the contract takes longer than six months;
(c)         
enterprises which must import equipment in order
to carry out works contracts shall, if they so request, benefit from the system
of temporary admission as laid down by the legislation of the beneficiary OCT
in respect of that equipment;
(d)         
professional equipment necessary for carrying
out tasks defined in a service contract shall be temporarily admitted into the
beneficiary OCT free of fiscal, import and customs duties and of other charges
having equivalent effect where these duties and charges do not constitute
remuneration for services rendered;
(e)         
imports under supply contracts shall be admitted
into the beneficiary OCT without customs duties, import duties, taxes or fiscal
charges having equivalent effect. The contract for supplies originating in the
OCT concerned shall be concluded on the basis of the ex-works price of the
supplies, to which may be added such internal fiscal charges as may be
applicable to those supplies in the OCT;
(f)           
fuels, lubricants and hydrocarbon binders and
all materials used in the performance of works contracts shall be deemed to
have been purchased on the local market and shall be subject to fiscal rules
applicable under the legislation in force in the beneficiary OCT;
(g)         
personal and household effects imported for use
by natural persons, other than those recruited locally, engaged in carrying out
tasks defined in a service contract and members of their families, shall be
exempt from customs or import duties, taxes and other fiscal charges having
equivalent effect, within the limits of the legislation in force in the
beneficiary OCT.
3.           Any
contractual matter not covered by paragraphs 1 and 2 shall remain subject to
the legislation of the OCT concerned. 
Chapter 4
Trade capacity development
Article 67
General approach
With a view to ensuring that OCTs derive
the maximum benefit from the provisions of this Decision and that they may
participate under the best possible conditions in the Union's internal market
as well as regional, sub-regional and international markets, the association aims
at contributing to the development of the OCTs' trade capacities by: 
(a)                   
increasing the OCTs' competitiveness,
self-reliance and economic resilience, through diversifying the range and
increasing the value and volume of OCT trade in goods and services and by
strengthening the OCTs' ability to attract private investments in various
sectors of economic activity;
(b)                   
improving cooperation in trade in goods,
services and establishment between the OCTs and neighbouring countries.
Article 68
Trade dialogue, cooperation and capacity development
In the context of the association, trade
dialogue, cooperation and capacity development initiatives may include:
(a)                   
strengthening the OCTs' capacities to define and
implement policies necessary for the development of trade in goods and
services;
(b)                   
encouraging the efforts of OCTs to put into
place appropriate legal, regulatory and institutional frameworks as well as the
necessary administrative procedures;
(c)                   
promoting private sector development, in
particular SMEs;
(d)                   
facilitating market and product development,
including product quality improvement;
(e)                   
contributing to the development of human
resources and professional skills relevant to trade in goods and services;
(f)                     
enhancing the capacity of business intermediaries
to provide OCT enterprises services pertinent to their exporting activities,
such as market intelligence;
(g)                   
contributing to the creation of a business
climate conducive to investment.
Chapter 5
Cooperation in the area of financial services and taxation matters
Article 69
Cooperation on international financial services
With a view to promote the stability,
integrity and transparency of the global financial system, the association may
include cooperation on international financial services. Such cooperation may
concern:
(a)                   
the provision of effective and adequate
protection of investors and other consumers of financial services;
(b)                   
the prevention and combat of money laundering
and financing of terrorism;
(c)                   
the promotion of co-operation between different
actors of the financial system, including regulators and supervisors;
(d)                   
the setup of independent and effective
mechanisms for supervision of financial services.
Article 70
Regulatory convergence in financial services
The Union and the
OCTs shall promote regulatory convergence with recognised international
standards on regulation and supervision in the area of financial services
including: the Basel Committee's “Core Principle for Effective Banking
Supervision”, the International Association of Insurance Supervisors' “Insurance
Core Principles”, the International Organisation of Securities Commissions'
“Objectives and Principles of Securities Regulation”, the OECD's “Agreement on
exchange of information on tax matters”, the G20 “Statement on Transparency and
exchange of information for tax purposes", the Financial Stability Board's
"Key Attributes of Effective Resolution Regimes for Financial
Institutions" and the Financial Action Task Force's “Forty Recommendations
on Money Laundering and Terrorist Financing".
The Union and the OCTs shall also promote
convergence of OCT legislation with Union legislation on financial services.
Article 71
Cooperation between regulatory and supervisory authorities
The Union and the OCTs shall encourage the
cooperation between relevant regulatory and supervisory authorities, including
information exchange, sharing of expertise on financial markets and other such
measures. Special attention shall be given to the development of administrative
capacity of such authorities, inter alia through personnel exchange and joint
training.
Article
72
Cooperation in taxation matters
The Union and the OCTs shall promote cooperation in the tax area in order to facilitate
the collection of legitimate tax revenues and to develop measures for the
effective implementation of the principles of good governance in the tax area,
including transparency, exchange of information and fair tax competition.
Part Four
Instruments for sustainable development
Chapter 1
General provisions
Article 73
General objectives
The Union shall contribute to the
achievement of the association's overall objectives through the provision of:
(a)                   
adequate financial resources and appropriate
technical assistance aimed at strengthening the OCTs' capacities to formulate
and implement strategic and regulatory frameworks;
(b)                   
long term financing to promote private sector
growth.
Article 74
Definitions
For the purposes of this Decision, the following
definitions shall apply:
'programmable aid' means the non-repayable
aid under the European Development Fund allocated to the OCTs in order to
finance territorial or regional strategies and priorities set out in
programming documents.
'programming' means the process of
organisation, decision-making and allocation of indicative financial resources
intended to implement, on a multi-annual basis, in an area referred to in Part
II of this Decision, the action to achieve the association's objectives for the
sustainable development of the OCTs.
'programming document' means the document which sets out the OCT's strategy, priorities and
arrangements and translates the objectives and targets of the OCT for its
sustainable development in an effective and efficient way to pursue the
objectives of the association.
‘development plans' referred to in Article 82
of this Decision means a coherent set of operations defined and financed
exclusively by the OCTs in the framework of their own policies and strategies
of development, and those agreed upon between an OCT and the Member State to
which it is linked.
'territorial allocation' is the amount allocated
to individual OCTs for the programmable aid under the European Development Fund
in order to finance territorial strategies and priorities set out in
programming documents.
'regional allocation' is the amount
allocated for the programmable aid under the European Development Fund in order
to finance regional cooperation strategies or thematic priorities common to
several OCTs and set out in programming documents.
'financing decision' means the act adopted
by the Commission specifying the details of the Union's financial contribution
and authorizing to grant financial aid from the European Development Fund.
Article 75
Principles of finance cooperation
1.           Union financial assistance
shall be based on the principles of partnership, ownership, alignment on
territorial systems, complementarity and subsidiarity.
2.           Operations funded within
the framework of this Decision can take the form of programmable or
non-programmable aid. 
3.           Union financial assistance
shall:
(a)         
be implemented with due regard to the OCTs
respective geographical, social and cultural characteristics, as well as their
specific potential;
(b)         
ensure that resource flows are accorded on a
predictable and regular basis;
(c)         
be flexible and tailored to the situation in
each OCT;
(d)         
be conducted in full compliance with the
respective institutional, legal and financial powers of each of the partners.
4.           The authorities of the OCT
concerned shall be responsible for implementing operations without prejudice to
the powers of the Commission to ensure sound financial management in the use of
Union funds.
Chapter 2
Financial resources 
Article 76
Sources of financing
OCTs shall be eligible for the following
sources of funding:
(a)                   
resources allocated for the OCTs under the
Internal Agreement between the Member States of the Union establishing the 11th
European Development Fund (EDF);
(b)                   
the Union programmes and instruments provided
for in the Union's general budget;
(c)                   
funds managed by the European Investment Bank
under the European Investment Bank's own resources, and the resources allocated
to the EDF Investment Facility, in accordance with the conditions of the
Internal Agreement between the Member States of the Union establishing the 11th
EDF.
Chapter 3
Specific provisions for the financial assistance under the 11th EDF
Article 77
Subject- matter and scope
Within the framework of the strategy and priorities
established by the OCT concerned at local or regional level, and without
prejudice to humanitarian and emergency aid, financial support may be given to
the following activities helping to achieve the objectives set out in this
Decision:
(a)         
sector policies and reforms as well as projects
that are in coherence with them;
(b)         
institutional development, capacity building and
integration of environmental aspects;
(c)         
technical cooperation;
(d)         
additional support in the event of fluctuations
in export earnings from exports of goods and services referred in Article 81.
Article 78
Humanitarian and emergency aid
1.           Humanitarian and emergency
aid shall be granted in the OCTs faced with serious economic and social
difficulties of an exceptional nature resulting from natural disasters or
extraordinary circumstances having comparable effects. Humanitarian and
emergency aid shall be maintained as long as necessary to deal with the urgent
problems which arise in such situations. 
Humanitarian and emergency aid shall be granted
solely on the basis of the needs and interests of disaster victims.
2.           The aim of humanitarian
and emergency aid shall be to:
(a)         
save human lives in crisis and post-crisis
situations;
(b)         
contribute to the financing and delivery of
humanitarian aid and to the direct access to it of its intended beneficiaries
by all logistical means available;
(c)         
carry out short-term rehabilitation and
reconstruction to enable the victims to benefit from a minimum of
socio-economic integration and, as soon as possible, create the conditions for
a resumption of development on the basis of long-term objectives;
(d)         
address the needs arising from the displacement
of people (refugees, displaced persons and returnees) following natural or
man-made disasters so as to meet, for as long as necessary, all the needs of
refugees and displaced persons (wherever they may be) and facilitate action for
their voluntary repatriation and re-integration in their country of origin;
(e)         
assist the OCTs in setting up short term
disaster prevention and preparedness mechanisms, including for prediction and
early warning, with a view to reducing the consequences of disasters.
3.           Similarly aid may be
granted to OCTs taking in refugees or returnees to meet acute needs not covered
by emergency assistance.
4.           Aid provided for by this
Article shall be financed from the Union budget. However, it may exceptionally
be financed from the allocations laid down in Annex II, in addition to the
funding from the budget heading concerned.
5.           Humanitarian and emergency
aid operations shall be undertaken at the request of the OCT affected, the
Commission, the Member State to which the OCT is linked, international
organisations or local or international non-governmental organisations. Such
aid shall be administered and implemented under procedures that facilitate
rapid, flexible and effective operations.
Article 79
Capacity development
1.           Financial assistance shall
be used to support the OCTs with developing the necessary capacities to define,
implement and monitor territorial and/or regional strategies and actions in
view of achieving the general objectives for the areas of cooperation mentioned
in Parts Two and Three.
2.           The Union shall support the
efforts of the OCTs in developing reliable statistical data regarding those
areas.
Article 80
Technical assistance
1.           On
the initiative of the Commission, studies or technical assistance measures may
be financed in order to ensure the preparation, monitoring, evaluation and
supervision necessary for implementing this Decision and for its overall
evaluation. Technical assistance provided locally shall be implemented in all
instances in accordance with the rules applicable to decentralised financial management.
2.           On
the initiative of the OCTs, studies or technical assistance measures may be
financed in relation to the implementation of the activities scheduled in the
programming documents. The Commission may decide to finance such action either
from the programmable aid or from the envelope earmarked for technical cooperation
measures.
Article 81
Additional support in the event of fluctuations in export earnings
1.           In order to mitigate the
adverse effects of any short-term fluctuations in export earnings, in
particular in the agricultural and mining sectors, which might jeopardise the
attainment of the development objectives of the OCT concerned, a system of
additional support shall be instituted within the financial allocation referred
to in Annex II.
2.           Support in the event of
short-term fluctuations in export earnings shall be aimed to safeguard
macroeconomic and sectoral reforms and policies that are at risk as a result of
a drop in revenue and remedy the adverse effects of instability of export earnings
in particular from agricultural and mining products.
The dependence of the OCT economies on exports,
in particular in the agricultural and mining sectors, shall be taken into
account in the allocation of resources referred to in Annex V. In this context
the isolated OCTs referred to in Annex I shall receive more favourable
treatment in accordance with the criteria set out in Annex V.
3.           The additional resources
shall be provided in accordance with the specific modalities of the support
mechanism as set out in Annex V.
4.           The Union shall also
provide support for market-based insurance schemes designed for OCTs seeking to
protect themselves against the risk of fluctuations in export earnings.
Article 82
Programming
1.           For the purpose of this
Decision, programmable aid shall be based on a programming document.
2.           The programming document
may take into account the territorial development plans or other plans agreed
upon between the OCTs and the Member States to which they are linked.
3.           Pursuant to article 9, the
OCT authorities shall assume the primary responsibility for the formulation of strategies, priorities and arrangements through
the preparation of programming documents in coordination with the Commission
and the Member State to which the OCT is linked.
4.           The OCT authorities shall
be responsible for:
(a)         
establishing their priorities on which the
strategy shall be based;
(b)         
formulating project and programme proposals
submitted to and examined with the Commission.
5.           The OCT authorities and
the Commission shall be jointly responsible for approving the programming
document.
6.           The Commission shall adopt
the financing decision corresponding to a programming document in accordance
with the procedure provided for in Article 84.
7.           The procedure provided in
Article 84 shall also apply to substantial reviews which have the effect of
modifying significantly the content of the programming and the corresponding
financing decision. It shall not apply to non-substantial modifications such as
technical adjustments or increasing or decreasing the size of the initial financial
allocations by less than 20%, provided that these modifications do not affect
the priority areas and objectives set out in the programming document. The
Committee provided for in Article 84 shall be informed of such non-substantial
modifications within one month after such modifications are introduced.
Article 83
Implementation
1.           The Commission shall
implement OCT 11th EDF resources in any of the ways set out in the
11th EDF financial regulation and in accordance with the conditions
set out in this Decision and in the measures implementing that Decision. To
this end, it shall conclude financing agreements with the relevant authorities
of the OCTs.
2.           The OCT authorities shall
be responsible for:
(a)         
preparing, negotiating and concluding contracts;
(b)         
implementing and managing projects and
programmes;
(c)         
maintaining projects and programmes and ensuring
their sustainability.
3.           The relevant authorities
of the OCTs and the Commission shall be jointly responsible for:
(a)         
ensuring equality of conditions for
participation in invitations to tender and contracts;
(b)         
monitoring and evaluating the effects and
results of projects and programmes;
(c)         
ensuring the proper, prompt and efficient
execution of projects and programmes.
Article 84
EDF-OCT Committee
1.           The Commission shall,
where appropriate, be assisted by the Committee created by the 11th
EDF Internal Agreement.
2.           When exercising the powers
conferred on it by this Decision, the Committee shall be known as the ‘EDF-OCT
Committee’. The procedures of the Committee laid down in the Internal Agreement
shall apply to the EDF-OCT Committee.
3.           The Committee shall focus
its work on the substantive issues of cooperation at OCT and regional level. In
the interests of coherence, coordination and complementarity, it shall monitor
the implementation of the Programming documents.
4.           The Committee shall give
its opinion on:
(a)         
draft programming documents and any amendments
to them;
(b)         
the financing decisions for implementing this
Part of the Decision.
5.           The representative of the
Commission shall submit to the Committee a draft of the measures to be taken.
The Committee shall deliver its opinion on the draft within a time limit laid
down by the chairman. The opinion shall be delivered by the majority laid down
in Article 8 of the Internal Agreement. The votes of the representatives of the
Member States within the Committee shall be weighted in the manner set out in
paragraph 2 of that Article. The chairman shall not vote.
6.           The Commission shall adopt
the measures, which shall apply immediately. However, if the measures are not
in accordance with the opinion of the Committee they shall be communicated by
the Commission to the Council forthwith. In that event, the Commission may
defer application of the measures which it has decided on for a period of not
more than three months from the date of such communication.
7.           The Council, acting by the
majority and in accordance with the weighting referred to in paragraph 5, may
take a different decision within the period provided for in paragraph 6.
8.           The Commission shall
inform the Committee of the follow-up, evaluation and audit of Programming
documents.
9.           For the implementation of
the 11th EDF, the respective provisions of the Internal Agreement establishing
the 11th EDF shall be applicable.
Article 85
Protecting
the Union's financial interests and financial controls
1.           The
Commission shall take appropriate measures ensuring that, when actions financed
under this Decision are implemented, the financial interests of the Union are
protected by the application of preventive measures against fraud, corruption
and any other illegal activities, by effective checks and, if irregularities
are detected, by the recovery of the amounts wrongly paid and, where appropriate,
by effective, proportionate and deterrent penalties. 
2.           The
Commission and the Court of Auditors shall have the power of audit, on the
basis of documents and on-the-spot, over all grant beneficiaries, contractors
and subcontractors who have received Union funds. 
The European Anti-fraud Office (OLAF) may carry
out on-the-spot checks and inspections on economic operators concerned directly
or indirectly by such funding in accordance with the procedures laid down in Council
Regulation (Euratom, EC) No 2185/96[19] with a view to
establishing whether there has been fraud, corruption or any other illegal
activity in connection with a grant agreement or grant decision or a contract
concerning Union funding.
Without prejudice to the first and second
subparagraphs, agreements with third countries and international organisations
and grant agreements and grant decisions and contracts resulting from the
implementation of this Decision shall expressly empower the Commission, the
Court of Auditors and OLAF to conduct such audits, on-the-spot checks and
inspections, in accordance with the relevant EDF Financial Regulation.
3.           OCTs
shall bear primary responsibility for the financial supervision of the Union
funds. This shall be carried out, where appropriate, in coordination with the
Member State to which the OCT is linked in accordance with the applicable
national legislation. 
4.           The
Commission shall be responsible for: 
(a)         
ensuring that management and control systems
exist and function properly in the OCT concerned so as to ensure that the Union funds are used correctly and
effectively;
(b)         
in the event of irregularities, sending recommendations or requests for corrective measures to
remedy those irregularities and rectify any management shortcomings found.
5.           The
Commission, the OCT and, where appropriate, the Member State to which it is
linked, shall cooperate on the basis of administrative arrangements at annual
or biannual meeting to coordinate programmes, methodologies and the
implementation of controls.
6.           With
regard to financial corrections:
(a)         
the OCT shall be responsible in the first
instance for detecting and correcting financial irregularities;
(b)         
however, in the event of shortcomings by the OCT
concerned, the Commission shall take action, if the OCT fails to remedy the
situation and attempts at conciliation are unsuccessful, to reduce or withdraw
the balance of the overall allocation corresponding to the financing decision
of the Programming Document.
Chapter 4
Principles of eligibility
Article 86
Eligibility for territorial financing
1.           The OCTs public
authorities shall be eligible for financial support provided for in this
Decision.
2.           Subject to the agreement
of the authorities of the OCTs concerned, the following entities or bodies
shall also be eligible for financial support provided for in this Decision:
(a)         
local, national and/or regional public or
semi-public agencies, departments or local authorities of the OCTs and in
particular their financial institutions and development banks;
(b)         
companies and firms of the OCTs and of regional
groups;
(c)         
companies and firms of a Member State, so as to
enable them, in addition to their own contribution, to undertake productive
projects in the territory of an OCT;
(d)         
OCT or Union financial intermediaries promoting
and financing private investments in the OCTs;
(e)         
actors of decentralised cooperation and other
non-governmental actors from OCTs and from the Union, to enable them to
undertake economic, cultural, social and educational projects and programmes in
the OCTs in the framework of decentralised cooperation, as referred to in
Article 11.
Article 87
Eligibility for regional financing
1.           A regional allocation
shall be used for operations benefiting and involving: 
(a)         
two or more OCTs;
(b)         
one or more OCTs and one or more outermost regions
referred to in Article 349 of the Treaty;
(c)         
one or more OCTs and one or more neighbouring
ACP and/or non-ACP States;
(d)         
one or more OCTs, one or more outermost regions
and one or more ACP and/or non-ACP States;
(e)         
two or more regional bodies of which OCTs are
members;
(f)           
one or more OCTs and regional bodies of which
OCTs, ACP States or one or more of the outermost regions are members;
(g)         
the OCTs and the Union as a whole.
2.           The funding to enable
participation of the ACP States, outermost regions and other countries shall be
additional to funds allocated to the OCTs under this Decision. 
3.           The participation of ACP
States, outermost regions and other countries to programmes established
pursuant to this Decision shall be envisaged only to the extent that: 
(a)         
the centre of gravity of the projects and
programmes funded under the multi‑annual financial framework of cooperation
remains in an OCT;
(b)         
equivalent provisions exist in the framework of the
EU's financial instruments;
(c)         
the principle of proportionality is respected.
4.           Appropriate measures will
allow for matching of funding of credits from the EDF and the Union budget to
finance cooperation projects between the OCTs, the ACP Countries, the outermost
regions as well as other countries, in particular simplified mechanisms for
joint management of such projects.
Article 88
Eligibility for Union programmes
1.           Natural persons from an
OCT, as defined in Article 49, and, where applicable, the relevant public
and/or private bodies and institutions in an OCT, shall be eligible for participation
in and funding from all Union programmes, subject to the rules and objectives
of the programmes and possible arrangements applicable to the Member State to
which the OCT is linked.
2.           OCTs shall also be
eligible for support under programmes of the Union for cooperation with other countries,
notably developing countries, subject to the rules, objectives and arrangements
of these programmes. 
Part Five
Final provisions
Article 89
Delegation of powers to the Commission
1.           The Commission shall be
empowered to adopt delegated acts complementing the rules in this Decision
within 12 months of its entry into force, and amending the Appendices of Annex VI
for the purpose of taking into account technological development and changes in
customs legislation, in accordance with the procedure laid down in Article 90. 
2.           The additional provisions
shall include:
(a)         
the procedure for programming;
(b)         
the procedures and criteria for the follow-up,
audit, evaluation, review and implementation of the programming of this
Decision, including the preparation of periodical or other reports;
(c)         
the detailed rules for implementing the
financial corrections referred to in Article 85.
Article 90
Exercise of the delegation
1.           The power to adopt
delegate acts is conferred on the Commission subject to the conditions laid
down in this Article.
2.           The delegation of power
referred to in Article 89 shall be conferred on the Commission for an
indeterminate period of time from the date of entry into force of this
Decision. 
3.           The delegation of power
referred to in Article 89 may be revoked at any time by the Council. A decision
of revocation shall put an end to the delegation of power specified in that Decision. It shall take effect the day following
the publication of the decision in the Official Journal of the European Union
or at a later date specified therein. It shall not affect the validity of any
delegated acts already in force.
4.           As
soon as it adopts a delegated act, the Commission shall notify it to the
Council.
5.           A
delegated act adopted pursuant to Article 89 shall enter into force only if no objection has been expressed by
the Council within a period of 2 months of notification of the act to the
Council or if, before the expiry of that period, the Council has informed the
Commission that it will not object. That period shall be extended by 2 months
at the initiative of the Council.
Article 91
Change of status
The Council, acting according to the Treaty,
shall decide on any necessary adjustments to this Decision when: 
(a)                   
an OCT becomes independent;
(b)                   
an OCT leaves the association;
(c)                   
an OCT becomes an outermost region;
(d)                   
an outermost region becomes an OCT.
Article 92
Repeal
Council Decision 2001/822/EC is hereby
repealed. References to the repealed Decision shall be construed as references
to this Decision.
Article 93
Entry into force
This Decision shall enter into force on 1
January 2014. 
Annex VI shall apply as provided for in
Article 65 of that Annex. 
Article 94
Publication
This Decision shall be published in the Official
Journal of the European Union.
Done at Brussels, 
                                                                       For
the Council
                                                                       The
President
ANNEX I
LIST OF THE ISOLATED OCTs

–              
Falkland Islands
–              
Saint Helena, Ascension Island, Tristan da Cunha
–              
St Pierre and Miquelon
ANNEX II
Union Financial Assistance: 11th
EDF
Article 1
Allocation between the various instruments
1.           For the purposes of this
Decision, for the seven-year period from 1 January 2014 to 31 December 2020,
the overall amount of the EU financial assistance of EUR [343.4 million] under
the 11th EDF fixed by the Internal Agreement establishing the 11th
EDF shall be allocated as follows:
(a)         
EUR [330.4 million] in the form of grants for
programmable support for long-term development, humanitarian aid, emergency
aid, refugee aid and additional support in the event of fluctuations in export
earnings as well as for support for regional cooperation and integration;
(b)         
EUR [5 million] to finance interest subsidies
and technical assistance in the context of the OCT Investment Facility referred
to in Annex IV;
(c)         
EUR [8 million] to studies or technical assistance
measures in accordance with Article 79 of this Decision, and to an overall
evaluation of the Decision to be made four years before it expires at the
latest.
2.           The funds of the 11th EDF
may not be committed after 31 December 2020, unless the Council decides
otherwise unanimously, on a proposal from the Commission.
3.           Should the funds provided
for in paragraph 1 be exhausted before this Decision expires, the Council shall
take the appropriate measures.
Article 2
Administration of resources
The EIB shall administer the loans made
from its own resources referred to in Annex III, as well as the operations
financed under the OCT Investment Facility referred to in Annex IV. All other
financial resources under this Decision shall be administered by the Commission.
Article 3
Allocation between the OCTs
The amount of EUR [330.4 million] mentioned
in Article 1(1)(a) shall be allocated on the basis of the needs and performance
of the OCTs in accordance with the following criteria:
1.           An amount A of EUR [205.3
million] shall be allocated to the OCTs other than Greenland [and Bermuda] in
particular to finance the initiatives referred to in the programming document.
Where appropriate, the programming document shall pay particular attention to
actions aimed at strengthening governance and the institutional capacities of
the beneficiary OCTs and, where relevant, the likely timetable of the envisaged
actions.
The allocation of amount A shall take into
account the size of the population, the level of Gross Domestic Product (GDP),
the level of previous EDF allocations and constraints due to the geographical
isolation of OCTs as mentioned in Article 8 of this Decision. Any allocation
shall be such as to allow its effective use. It should be decided in conformity
with the principle of subsidiarity.
2.           EUR [105 million] shall be
allocated to support regional cooperation and integration in accordance with
Article 7 of this Decision, in particular regarding the priorities and areas of
mutual interests mentioned in Article 5 and through consultation via the
instances of the EU-OCT partnership mentioned in Article 13. It shall seek
coordination with other Union financial instruments, cooperation between the
OCTs and the outermost regions referred to in Article 349 of the Treaty.
3.           A non-allocated reserve B
of EUR [20 million] shall be set aside to:
(a)         
finance humanitarian and emergency assistance
for the OCTs and, if necessary, the additional support in the event of
fluctuations in export earnings, in accordance with Annex IV;
(b)         
make new allocations in accordance with the
development of the needs and performance of the OCTs referred to under
paragraph 1.
Performance shall be evaluated in an objective
and transparent way, taking into account inter alia the use of the allocated
resources, the effective implementation of the ongoing operations and the
sustainable development measures adopted.
4.           The Commission, following
a mid-term review, may decide on the allocation of any non-allocated funds
mentioned in this Article. The procedures for this review and the decision on
any new allocation shall be adopted in accordance with Article 84 of this
Decision.
ANNEX III
Union financial assistance: Loans from the
European Investment Bank's own resources
Article 1
Amount
An amount of up to EUR [100 million] shall
be provided by the EIB for financing from its own resources in accordance with
its own rules and procedures and the conditions provided for by its statutes
and this Annex.
Article 2
European Investment Bank
1.           The EIB shall:
(a)         
contribute, through the resources it manages, to
the economic and industrial development of the OCTs on a territorial and
regional basis; and to this end, finance as a priority productive projects or
other investments aimed at promoting the private sector in all economic
sectors;
(b)         
establish close cooperation links with national
and regional development banks and with banking and financial institutions of
the OCTs and of the Union;
(c)         
in consultation with the OCT concerned, adapt
the arrangements and procedures for implementing development finance
cooperation, as set out in this Decision, if necessary, to take account of the
nature of the projects and to act in accordance with the objectives of this
Decision, within the framework of the procedures laid down by its statute.
2.           Financing from the EIB's
own resources shall be granted under the following terms and conditions:
(a)         
the reference rate of interest shall be the rate
applied by the EIB for a loan with the same conditions as to currency,
repayment period and securities on the day of signature of the contract or on
the date of disbursement;
(b)         
however:
–              
in principle, public sector projects shall be
eligible for an interest rate subsidy of 3%;
–              
for private sector projects which involve
restructuring operations in the framework of privatisation or for projects with
substantial and clearly demonstrable social or environmental benefits, loans
may be extended with an interest rate subsidy the amount and form of which will
be decided with respect to the particular characteristics of the project.
However, the interest rate subsidy shall not be higher than 3 %.
–              
The final interest rate shall, in any case,
never be less than 50 % of the reference rate.
(c)         
the amount of the interest rate subsidy
calculated in terms of its value at the times of disbursement of the loan shall
be charged against the interest subsidy allocation laid down in Annex IV,
Article 2(11), and paid directly to the EIB;
Interest subsidies may be capitalised or used
in the form of grants to support project-related technical assistance,
particularly for financial institutions in the OCTs.
(d)         
the repayment period of loans made by the EIB
from its own resources shall be determined on the basis of the economic and
financial characteristics of the project, but may not exceed 25 years. These
loans shall normally comprise a grace period fixed by reference to the
construction period of the project.
3.           For investments financed
by the EIB from its own resources in public sector companies, specific
project-related guarantees or undertakings may be required from the OCT
concerned.
Article 3
Conditions for foreign exchange transfer
1.           The OCT concerned shall,
in respect of operations under this Decision and in respect of which they have
given their written approval:
(a)         
grant exemption from all national or local
duties, fiscal charges on interest, commission and amortisation of loans due in
accordance with the law or laws of the OCTs concerned;
(b)         
place at the disposal of the beneficiaries the
currency necessary for the payment of interest, commission and the amortisation
of loans due in terms of financing contracts granted for the implementation of
projects on their territories;
(c)         
make available to the EIB the foreign currency
necessary for the transfer of all sums received by it in national currency at the
exchange rate applicable between the Euro or other currencies of transfer and
the national currency at the date of the transfer. These include all forms of
remuneration, such as, inter alia, interest, dividends, commissions and fees,
as well as the amortisation of loans and the proceeds from the sale of shares
due in terms of financing contracts granted for the implementation of projects
on their territories.
2.           For the purposes of this
Article, "OCTs concerned" shall mean the OCT benefitting from the operation.
ANNEX IV
Union Financial Assistance: EIB investment
facility
Article 1
Objective
The OCT Investment Facility (the Facility)
set up by Decision 2001/822/EC with EDF funds to promote commercially viable
enterprises is maintained.
The terms and conditions of financing in
relation to the operations of the Facility and the loans from own resources of
the EIB shall be as laid down in the Internal Agreement establishing the 11th
EDF and in Annex III and in this Annex.
These resources may be channelled to
eligible enterprises, either directly or indirectly, through eligible
investment funds and/or financial intermediaries.
Article 2
Resources of the Facility
1.           The resources of the
Facility may be used, inter alia, to:
(a)         
provide risk capital in the form of:
–              
equity participation in OCT enterprises, based
or not in an OCT, including financial institutions;
–              
quasi-capital assistance to OCT enterprises,
including financial institutions;
–              
guarantees and other credit enhancements which
may be used to cover political and other investment-related risks, both for
foreign and local investors or lenders;
(b)         
provide ordinary loans.
2.           Equity participation
shall, in general, be for non-controlling minority holdings and shall be
remunerated on the basis of the performance of the project concerned.
3.           Quasi-capital assistance
may consist of shareholders’ advances, convertible bonds, conditional,
subordinated and participating loans or any other similar form of assistance.
Such assistance may consist in particular of:
(a)         
conditional loans, the servicing and/or the
duration of which shall be linked to the fulfilment of certain conditions with
regard to the performance of the project; in the specific case of conditional
loans for pre-investment studies or other project-related technical assistance,
servicing may be waived if the investment is not carried out;
(b)         
participating loans, the servicing and/or the
duration of which shall be linked to the financial return of the project;
(c)         
subordinated loans, which shall be repaid only
after other claims have been settled.
4.           The remuneration of each
operation shall be specified when the loan is made.
5.           However:
(a)         
in the case of conditional or participating
loans, the remuneration shall normally comprise a fixed interest rate of not
more than 3% and a variable component related to the performance of the
project;
(b)         
in the case of subordinated loans, the interest
rate shall be market related.
6.           Guarantees shall be priced
so as to reflect the risks insured and the particular characteristics of the
operation.
7.           The interest rate of
ordinary loans shall comprise a reference rate applied by the EIB for
comparable loans with the same terms and conditions as to grace and repayment
periods and a mark up determined by the EIB.
8.           Ordinary loans may be
extended on concessional terms and conditions in the following cases:
(a)         
for infrastructure projects in the least
developed OCTs, in post-conflict OCTs or in post-natural disaster OCTs that are
prerequisites for private sector development. In such cases, the interest rate
of the loan will be reduced by 3%;
(b)         
for projects which involve restructuring
operations in the framework of privatisation or for projects with substantial
and clearly demonstrable social or environmental benefits. In such cases, loans
may be extended with an interest rate subsidy the amount and form of which will
be decided with respect to the particular characteristics of the project.
However, the interest rate subsidy shall not be higher than 3%.
9.           The final rate of loans
falling under (a) or (b) shall, in any case, never be less than 50% of the
reference rate.
10.         The funds to be provided
for these concessional purposes will be made available from the Facility and
shall not exceed the overall allocation for investment financing by the
Facility and by the EIB from its own resources.
11.         Interest subsidies may be
capitalised or may be used in the form of grants to support project-related
technical assistance, particularly for financial institutions in the OCTs.
Article 3
Operations of the Facility
1.           The Facility shall operate
in all economic sectors and support investments of private and commercially run
public sector entities, including revenue generating economic and technological
infrastructure critical for the private sector. The Facility shall:
(a)         
be managed as a revolving fund and aim at being
financially sustainable. Its operations shall be on market-related terms and
conditions and shall avoid creating distortions on local markets and displacing
private sources of finances;
(b)         
support the OCT financial sector and have a
catalytic effect by encouraging the mobilisation of long-term local resources
and attracting foreign private investors and lenders to projects in the OCTs;
(c)         
bear part of the risk of the projects it funds,
its financial sustainability being ensured through the portfolio as a whole and
not from individual operations;
(d)         
seek to channel funds through OCT institutions
and programmes that promote the development of small and medium-sized
enterprises (SMEs).
2.           The EIB shall be
remunerated for the cost incurred in managing the Facility. The remuneration of
the EIB shall include a fixed component of 0.5% a year of the initial endowment
and a variable component of an amount of up to 1.5% a year of the portfolio of
the Facility that is invested in projects in OCTs. The remuneration shall be
financed out of the Facility.
3.           On expiry of this
Decision, and in the absence of a specific decision by the Council, the
cumulative net reflows to the Facility shall be carried over to the next OCT
Financial Instrument.
Article 4
Conditions for foreign exchange rate risk
In order to minimise the effects of
exchange rate fluctuations, the problems of exchange rate risk shall be dealt
with in the following way:
(a)                   
in the case of equity participation designed to
strengthen an enterprise’s own funds, the exchange rate risk shall, as a
general rule, be borne by the Facility;
(b)                   
in the case of risk capital financing for SMEs,
the exchange rate risk shall as a general rule be shared, on the one hand, by
the Union, and on the other hand, by the other parties involved. On average,
the foreign exchange rate risk shall be shared equally;
(c)                   
where feasible and appropriate, particularly in
countries characterised by macroeconomic and financial stability, the Facility
will endeavour to extend loans in local OCT currencies, thus taking the foreign
exchange risk.
Article 5
Financial controls
1.           Investment Facility
operations shall be subject to the control and discharge procedure laid down in
the Statutes of the EIB for all of its operations.
2.           The ECA’s supervision of
Investment Facility operations shall be carried out in accordance with the
procedures agreed upon between the Commission, the Bank and the ECA, and in
particular the Tripartite Agreement, entered into by the aforementioned parties
on 27 October 2003, as amended, supplemented or modified from time to time.
Article 6
Privileges and immunities
1.           The representatives of the
EIB, while they are engaged in activities connected with or in implementation
of this Decision, shall enjoy in the OCTs the customary privileges, immunities
and facilities while carrying out their duties and while travelling to or from
the place at which they are required to carry out such duties.
2.           For its official
communications and the transmission of all its documents, the EIB shall enjoy
in the territory of the OCTs the treatment accorded to international
organisations.
3.           Official correspondence
and other official communications of the EIB shall not be subject to
censorship.
ANNEX V
EU
FINANCIAL ASSISTANCE: ADDITIONAL SUPPORT IN THE EVENT OF SHORT-TERM
FLUCTUATIONS IN EXPORT EARNINGS
Article 1
Principles
1.           The degree of dependence
of an OCT economy on the export of goods, and in particular from agricultural
and mining products shall be a criterion for determining the allocation of
long-term development.
2.           In order to mitigate the
adverse effects of instability of export earnings and safeguard the development
programme jeopardised by the drop in revenue, additional financial support may
be mobilised from the programmable resources for the country's long-term
development on the basis of Articles 2 and 3.
Article 2
Eligibility criteria
1.           Eligibility for additional
resources shall be established by:
(a)         
a 10 %, or 2 % in the case of isolated OCTs as
mentioned in Annex I, loss of export earnings from goods compared with the
arithmetical average of the earnings in the first three years of the first four
years preceding the application year; or
(b)         
a 10 %, or 2 % in the case of isolated OCTs as
mentioned in Annex I, loss of export earnings from the total of agricultural or
mineral products compared with the arithmetical average of the earnings in the
first three years of the first four years preceding the application year for
countries where the agricultural or mineral export revenues represent more than
40 % of total export revenues from goods.
2.           Entitlement to additional
support shall be limited to four successive years.
3.           The additional resources
shall be reflected in the public accounts of the country concerned. They shall
be utilised in accordance with the implementing provisions to be laid down
pursuant to Article 83 of this Decision. By agreement of both Parties the
resources may be used to finance programmes included in the national budget.
However a part of the additional resources may also be set aside for specific
sectors.
Article 3
Advances
The system for allocating additional
resources shall provide for advances to cover any delays in obtaining
consolidated trade statistics and to ensure that the resources in question can
be included in the budget of the year following the application year. Advances
shall be mobilised on the basis of provisional export statistics drawn up by
the authorities of the OCTs and submitted to the Commission in advance of the
official final consolidated statistics. The maximum advance shall be 80 % of
the estimated amount of additional resources for the application year. The
amounts thus mobilised shall be adjusted by common agreement between the
Commission and the authorities of the OCT in the light of final consolidated
export statistics and the final figure of the public deficit.
Article 4
Revision
The provisions in this Annex shall be
subject to review at the latest after two years from the entry into force of
the implementing provisions referred to in Article 84 of this Decision and
subsequently at the request of the Commission, a Member State or an OCT.
ANNEX VI
[
Concerning the definition of the concept of
"originating products" and methods of administrative cooperation
INDEX
TABLE OF CONTENTS
Title I General
provisions............................................................................................................. 64
Title II Definition
of the concept of originating products................................................................ 64
Title III Territorial
requirements................................................................................................... 64
Title IV Proofs of
origin Section 1 Rules applying from the entry into
force of the OAD................ 64
Title V Arrangements
for Administrative cooperation................................................................... 64
Title VI Ceuta and Melilla........................................................................................................... 64
Title VII Final Provisions............................................................................................................. 64
Appendices I to XIII................................................................................................................... 64
Title I
General provisions
Article 1
Definitions
For the purposes of this Annex the
following definitions shall apply:
(a)                   
'EPA countries' means regions or states which are part of the African, Caribbean and Pacific
(ACP) Group of States and which have concluded agreements establishing, or
leading to the establishment of, Economic Partnership Agreements
(EPA), when such an EPA is
either provisionally applied, or enters into force, whichever is the earlier. 
(b)                   
'manufacture' means any kind of working or
processing including assembly;
(c)                   
'material' means any ingredient, raw material,
component or part, etc., used in the manufacture of the product;
(d)                   
'product' means the product being manufactured,
even if it is intended for later use in another manufacturing operation;
(e)                   
'goods' means both materials and products;
(f)                     
'fungible materials' means materials that are of
the same kind and commercial quality, with the same technical and physical
characteristics, and which cannot be distinguished from one another once they
are incorporated into the finished product;
(g)                   
'customs value' means the value as determined in
accordance with the 1994 Agreement on Implementation of Article VII of the
General Agreement on Tariffs and Trade (WTO Agreement on Customs Valuation);
(h)                   
'value of materials' in the list in Appendix II
means the customs value at the time of importation of the non-originating
materials used, or, if this is not known and cannot be ascertained, the first
ascertainable price paid for the materials in the OCT. Where the value of the
originating materials used needs to be established, this point shall be applied
mutatis mutandis;
(i)                     
'ex-works price' means the price paid for the
product ex-works to the manufacturer in whose undertaking the last working or
processing is carried out, provided that the price includes the value of all
the materials used and all other costs related to its production, minus any
internal taxes which are, or may be, repaid when the product obtained is
exported.
Where the actual price paid does not reflect
all costs related to the manufacturing of the product which are actually
incurred in the OCT, the ex-works price means the sum of all those costs, minus
any internal taxes which are, or may be, repaid when the product obtained is
exported.
For the purpose of this definition, where the
last working or processing has been subcontracted to a manufacturer, the term
‘manufacturer’ referred to in the first sub-paragraph of this paragraph may
refer to the enterprise that has employed the subcontractor.
(j)                     
'maximum content of non-originating materials'
means the maximum content of non-originating materials which is permitted in
order to consider a manufacture as working or processing sufficient to confer
originating status on the product. It may be expressed as a percentage of the
ex-works price of the product or as a percentage of the net weight of these
materials used falling under a specified group of chapters, chapter, heading or
sub-heading;
(k)                   
'net weight' means the weight of the goods
themselves without packing materials and packing containers of any kind;
(l)                     
'chapters', 'headings' and ‘sub-headings’ mean
the chapters, the headings and sub-headings (four- or six-digit codes) used in
the nomenclature which makes up the Harmonised System with the changes pursuant
to the Recommendation of 26 June 2004 of the Customs Cooperation Council;
(m)                 
'classified' refers to the classification of a
product or material under a particular heading or sub-heading of the Harmonised
System;
(n)                   
'consignment' means products which are either:
–              
sent simultaneously from one exporter to one consignee;
or
–              
covered by a single transport document covering
their shipment from the exporter to the consignee or, in the absence of such
document, by a single invoice.
(o)                   
'exporter' means a person exporting the goods to
the Union or to an OCT who is able to prove the origin of the goods, whether or
not the person is the manufacturer and whether or not they themselves carry out
the export formalities;
(p)                   
'registered exporter' means an exporter who is
registered with the competent authorities of the OCT concerned for the purpose
of making out statements on origin for the purpose of exporting under this
Decision;
(q)                   
'statement on origin' means a statement made out
by the exporter indicating that the products covered by it comply with the
rules of origin of this Annex, for the purpose of allowing either the person
declaring the goods for release for free circulation in the Union to claim the
benefit of preferential tariff treatment or the economic operator in a OCT
importing materials for further processing in the context of cumulation rules
to prove the originating status of such goods.
Title II
Definition of the concept of originating products
Article 2
General Requirements
1.           The following products
shall be considered as originating in an OCT:
(a)         
products wholly obtained in an OCT within the
meaning of Article 3;
(b)         
products obtained in an OCT incorporating
materials which have not been wholly obtained there, provided that such
materials have undergone sufficient working or processing within the meaning of
Article 4.
2.           Originating products made
up of materials wholly obtained or sufficiently worked or processed in two or
more OCTs shall be considered as products originating in the OCT where the last
working or processing took place.
Article 3
Wholly obtained products
1.           The following shall be
considered as wholly obtained in an OCT:
(a)         
mineral products extracted from its soil or from
its seabed;
(b)         
plants and vegetable products grown or harvested
there;
(c)         
live animals born and raised there;
(d)         
products from live animals raised there;
(e)         
products from slaughtered animals born and
raised there;
(f)           
products obtained by hunting or fishing
conducted there;
(g)         
products of aquaculture where the fish,
crustaceans and molluscs are born and raised there;
(h)         
products of sea fishing and other products taken
from the sea outside any territorial sea by its vessels;
(i)           
products made on board its factory ships
exclusively from the products referred to in point (h);
(j)           
used articles collected there fit only for the
recovery of raw materials;
(k)         
waste and scrap resulting from manufacturing
operations conducted there;
(l)           
products extracted from the seabed or below the
seabed which is situated outside any territorial sea but where it has exclusive
exploitation rights;
(m)       
goods produced there exclusively from products
specified in points (a) to (l).
2.           The terms 'its vessels'
and 'its factory ships' in paragraph 1(h) and (i) shall apply only to vessels
and factory ships which meet each of the following requirements:
(a)         
they are registered in an OCT or in a Member
State,
(b)         
they sail under the flag of an OCT or of a
Member State,
(c)         
 they meet one of the following conditions:
–              
they are at least 50% owned by nationals of the
OCTs or of Member States; or
–              
they are owned by companies;
(i) which have their head office and their main
place of business in the OCTs or in Member States; and
(ii) which are at least 50% owned by OCTs,
public entities of that country, nationals of that country or of Member States.
3.           The conditions of
paragraph 2 may each be fulfilled in Member States or in different OCTs. In this
case, the products shall be deemed to have the origin of the OCT where the
vessel or factory ship is registered in accordance with point (a) of paragraph
2.
Article 4
Sufficiently worked or processed products
1.           Without prejudice to
Articles 5 and 6, products which are not wholly obtained in an OCT within the
meaning of Article 3 shall be considered to originate there, provided that the
conditions laid down in the list in Appendix II for the goods concerned are
fulfilled.
2.           If a product which has
acquired originating status in an OCT in accordance with paragraph 1 is
further processed in that OCT and used as a material in the manufacture of
another product, no account shall be taken of the non-originating materials
which may have been used in its manufacture.
3.           The determination of
whether the requirements of paragraph 1 are met, shall be carried out for each
product.
However, where the relevant rule is based on
compliance with a maximum content of non-originating materials, in order to
take into account fluctuations in costs and currency rates, the value of the
non-originating materials may be calculated on an average basis as set out in
paragraph 4.
4.           In the case referred to in
the second sub-paragraph of paragraph 3, an average ex-works price of the product
and average value of non-originating materials used shall be calculated
respectively on the basis of the sum of the ex-works prices charged for all
sales of the products carried out during the preceding fiscal year and the sum
of the value of all the non-originating materials used in the manufacture of
the products over the preceding fiscal year as defined in the country of
export, or, where figures for a complete fiscal year are not available, a
shorter period which should not be less than three months.
5.           Exporters having opted for
calculations on an average basis shall consistently apply such a method during
the year following the fiscal year of reference, or, where appropriate, during
the year following the shorter period used as a reference. They may cease to
apply such a method where during a given fiscal year, or a shorter
representative period of no less than three months, they record that the
fluctuations in costs or currency rates which justified the use of such a
method have ceased.
6.           The averages referred to
in paragraph 4 shall be used as the ex-works price and the value of
non-originating materials respectively, for the purpose of establishing
compliance with the maximum content of non-originating materials.
Article 5
Insufficient working or processing operations
1.           Without prejudice to
paragraph 3, the following operations shall be considered as insufficient
working or processing to confer the status of originating products, whether or
not the requirements of Article 4 are satisfied:
(a)         
preserving operations to ensure that the
products remain in good condition during transport and storage;
(b)         
breaking-up and assembly of packages;
(c)         
washing, cleaning; removal of dust, oxide, oil,
paint or other coverings;
(d)         
ironing or pressing of textiles and textile
articles;
(e)         
simple painting and polishing operations;
(f)           
husking and partial or total milling of rice;
polishing and glazing of cereals and rice;
(g)         
operations to colour or flavour sugar or form
sugar lumps; partial or total milling of crystal sugar;
(h)         
peeling, stoning and shelling, of fruits, nuts
and vegetables;
(i)           
sharpening, simple grinding or simple cutting;
(j)           
sifting, screening, sorting, classifying,
grading, matching (including the making-up of sets of articles);
(k)         
simple placing in bottles, cans, flasks, bags,
cases, boxes, fixing on cards or boards and all other simple packaging
operations;
(l)           
affixing or printing marks, labels, logos and
other like distinguishing signs on products or their packaging;
(m)       
simple mixing of products, whether or not of
different kinds; mixing of sugar with any material;
(n)         
simple addition of water or dilution or
dehydration or denaturation of products;
(o)         
simple assembly of parts of articles to
constitute a complete article or disassembly of products into parts;
(p)         
a combination of two or more of the operations
specified in points (a) to (o);
(q)         
slaughter of animals.
2.           For the purposes of
paragraph 1, operations shall be considered simple when neither special skills
nor machines, apparatus or tools especially produced or installed for those
operations are required for their performance.
3.           All the operations carried
out in an OCT on a given product shall be taken into account when determining
whether the working or processing undergone by that product is to be regarded
as insufficient within the meaning of paragraph 1.
Article 6
Tolerances
1.           By way of derogation from
Article 4 and subject to paragraphs 2 and 3 of this Article, non-originating
materials which, according to the conditions set out in the list in Appendix II
are not to be used in the manufacture of a given product may nevertheless be
used, provided that their total value or net weight assessed for the product
does not exceed:
(a)         
15% of the weight of the product for products
falling within Chapters 2 and 4 to 24, other than processed fishery products of
chapter 16;
(b)         
15% of the ex-works price of the product for
other products, except for products falling within Chapters 50 to 63 of the
Harmonised System, for which the tolerances mentioned in Notes 6 and 7 of
Appendix I shall apply.
2.           Paragraph 1 shall not
allow that any of the percentages for the maximum content of non-originating
materials as specified in the rules laid down in the list in Appendix II are
exceeded.
3.           Paragraphs 1 and 2 shall
not apply to products wholly obtained in an OCT within the meaning of Article
3. However, without prejudice to Article 5 and 11(2), the
tolerance provided for in those paragraphs shall nevertheless apply to the sum
of all the materials which are used in the
manufacture of a product and for which the rule laid down
in the list in Appendix I for that product requires
that such materials be wholly obtained.
Article 7
Bilateral cumulation
1.           Without prejudice to Article 2, materials originating in the Union
shall be considered as materials originating in an OCT when
incorporated into a product obtained there, provided that they have undergone
working or processing which goes beyond the operations referred to in Article 5(1).
2.           Without
prejudice to Article 2, working or processing carried out in the Union shall be
considered as having been carried out in an OCT, when the materials undergo
subsequent working or processing there.
3.           For
the purpose of cumulation provided for in this Article, the origin of the
materials shall be established in accordance with this Annex. 
Article 8
Cumulation with EPA countries
1.           Without
prejudice to Article 2, materials originating in the EPA countries shall be
considered as materials originating in an OCT when incorporated into a product
obtained there, provided that they have undergone working or processing which
goes beyond the operations referred to in Article 5 (1).
2.           Without
prejudice to Article 2, working or processing carried out in the EPA countries
shall be considered as having been carried out in an OCT, when the materials
undergo subsequent working or processing there.
3.           For
the purpose of paragraph 1 of this Article, the origin of the materials
originating in an EPA country shall be determined in accordance with the rules
of origin applicable to the EPA concerned and relevant provisions on proofs of
origin and administrative cooperation.
The cumulation provided for in this Article
shall not apply to the following: 
(a)         
materials originating in the Republic of South
Africa which cannot be imported directly in the Union duty-free-quota-free in
the framework of theEPA between the Union and the Southern African Development
Community (SADC). 
(b)         
materials listed in Appendix XIII. 
4.           The cumulation
provided for in this Article may only be applied provided that:
(a)         
The EPA country supplying the materials and the
OCT manufacturing the final product have undertaken to:
–              
comply or ensure compliance with this Annex and,
–              
provide the administrative cooperation necessary
to ensure the correct implementation of this Annex both with regard to the Union
and between themselves;
(b)         
The undertakings referred to in point (a) have
been notified to the Commission by the OCT involved.
5.           Where countries have already complied with
paragraph 4 before the entry into force of this Decision, a new undertaking
shall not be required.
Article 9
Cumulation with other countries benefiting from duty-free quota-free to the
market of the Union under GSP
1.           Without prejudice to
Article 2, materials originating in countries and territories set out in paragraph 2 of this Article shall be considered as
materials originating in an OCT when incorporated into a product obtained
there, provided they have undergone working or processing which goes beyond the
operations referred to in Article 5(1). 
2.           For the purposes of
paragraph 1, materials shall originate from a country
or territory:
(a)         
benefiting from the "Special arrangement
for least developed countries" set out in the Generalised System of
Preferences[20]; 
(b)         
benefiting from duty-free quota-free access to
the market of the Union at HS 6-digit level under the general provisions of the
Generalised System of Preferences[21]; 
3.           The origin of the
materials of the countries or territories concerned shall be determined
according to the rules of origin laid down pursuant to Article 5(2) of Council
Regulation (EC) No 732/2008 and in accordance with Articles 32 or 41.
4.           The cumulation provided
for in this paragraph shall not apply to the following:
(a)         
materials which at importation to the Union are
subject to antidumping or countervailing duties when originating from the
country which is subject to these antidumping or countervailing duties;
(b)         
tuna products classified under Harmonised System
Chapters 3 and 16, which are covered by Article 6 of Council regulation (EC)
N°732/2008 of 22 July 2008 applying a scheme of generalised tariff
preferences for the period from 1 January 2009 to 31 December
2011, and subsequent amending and corresponding legal acts;
(c)         
materials which are covered by Articles 13, 20
and 21 of Council Regulation (EC) No 732/2008[22], and subsequent
amending and corresponding legal acts.
The competent authorities of the OCTs shall
notify yearly to the Commission the materials, if any, to which cumulation
under paragraph 1 has been applied.
5.           The cumulation provided
for in paragraph 1 of this Article may only be applied provided that:
(a)         
the countries or territories involved in the
cumulation have undertaken to comply or ensure compliance with this Annex and
to provide the administrative co-operation necessary to ensure the correct
implementation of this Annex, both with regard to the Union and between
themselves; 
(b)         
the undertaking referred to in point (a) has
been notified to the Commission by the OCT concerned.
6.           The Commission shall
publish in the Official Journal of the European Union (C series) the date on
which the cumulation provided for in this Article may be applied with those
countries or territories listed in this Article which have fulfilled the
necessary requirements.
Article 10
Extended cumulation
1.           The Commission may grant, at
the request of an OCT, cumulation of origin
between an OCT and a country with which the Union has a free trade agreement in
accordance with Article XXIV of the General Agreement on Tariffs and Trade
(GATT) in force, provided that the following conditions are met:
(a)         
the countries or territories involved in the
cumulation have undertaken to comply or ensure compliance with this Annex and
to provide the administrative co-operation necessary to ensure the correct
implementation of this Annex, both with regard to the Union and between
themselves; 
(b)         
the undertaking referred to in point (a) has
been notified to the Commission by the OCT concerned.
2.           The request referred to in
the first subparagraph shall be addressed to the Commission in writing. It
shall indicate the third country or countries concerned, shall contain a list
of the materials subject to cumulation and shall be supported by evidence that
the conditions laid down in paragraphs 1(a) and (b) of this Article are met.
3.           The origin of the
materials used and the documentary proof of origin shall be determined in
accordance with the rules laid down in the relevant free trade agreement. The
origin of the products to be exported to the Union shall be determined in
accordance with the rules of origin laid down in this Annex.
4.           In order for the obtained
product to acquire originating status, it shall not be necessary that the
materials originating in the third country and used in the OCT in the
manufacture of the product to be exported to the Union have undergone sufficient
working or processing, provided that the working or processing carried out in
the OCT concerned goes beyond the operations described in Article 5(1).
5.           The Commission shall
publish in the Official Journal of the European Union (C series) the date on
which the extended cumulation takes effect, the Union's Free Trade Agreement
partner involved in that cumulation, the applicable conditions and the list of
materials in relation to which the cumulation applies.
6.           The Commission shall adopt
a measure granting the cumulation referred to in paragraph 1 by means of
implementing acts. Those implementing acts shall be adopted in accordance with
the examination procedure referred to in Article 64(2)
Article 11
Unit of qualification
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
Harmonized System.
2.           When a consignment
consists of a number of identical products classified under the same heading of
the Harmonised System, each individual item shall be taken into account when
applying the provisions of this Annex.
3.           Where, under general rule
5 of the Harmonised System, packaging is included with the product for
classification purposes, it shall be included for the purposes of determining
origin.
Article 12
Accessories, Spare parts and tools
Accessories, spare parts and tools
dispatched with a piece of equipment, machine, apparatus or vehicle which are
part of the normal equipment and included in the ex-works price thereof, shall
be regarded as one with the piece of equipment, machine, apparatus or vehicle
in question.
Article 13
Sets
Sets, as defined in General Interpretative
Rule 3 of the Harmonised System, shall be regarded as originating when all the
component products are originating products.
When a set is composed of originating and
non-originating products, the set as a whole shall however be regarded as
originating, provided that the value of the non-originating products does not
exceed 15% of the ex-works price of the set.
Article 14
Neutral elements
In order to determine whether a product is
an originating product, no account shall be taken of the origin of the
following which might be used in its manufacture:
(a)                   
energy and fuel;
(b)                   
plant and equipment;
(c)                   
machines and tools;
(d)                   
any other goods which do not enter, and which
are not intended to enter, into the final composition of the product.
Article 15
Accounting segregation
1.           If originating and
non-originating fungible materials are used in the working or processing of a
product, the customs authorities of the Member States may, at the written
request of economic operators, authorise the management of materials in the Union
using the accounting segregation method for the purpose of subsequent export to
an OCT within the framework of bilateral cumulation, without keeping the
materials on separate stocks. 
2.           The customs authorities of
the Member States may make the granting of authorisation referred to in
paragraph 1 subject to any conditions they deem appropriate.
The authorisation shall be granted only if by
use of the method referred to in paragraph 3 it can be ensured that, at any
time, the number of products obtained which could be considered as ‘originating
in the Union’ is the same as the number that would have been obtained by using
a method of physical segregation of the stocks.
If authorised, the method shall be applied and
the application thereof shall be recorded on the basis of the general
accounting principles applicable in the Union.
3.           The beneficiary of the
method referred to in paragraph 2 shall make out or, until the application of
the registered exporter system, apply for proofs of origin for the quantity of
products which may be considered as originating in the Union. At the request of
the customs authorities of the Member States, the beneficiary shall provide a
statement of how the quantities have been managed.
4.           The customs authorities of
the Member States shall monitor the use made of the authorisation referred to
in paragraph 1.
They may withdraw the authorisation in the
following cases:
(a)         
the beneficiary makes improper use of the
authorisation in any manner whatsoever, or
(b)         
the beneficiary fails to fulfil any of the other
conditions laid down in this Annex.
Article 16
Derogations
1.           Upon the Commission's
initiative or in response to a request from a Member State or an OCT, an OCT
may be granted a temporary derogation from the provisions of this Annex in any
of the following cases:
(a)         
internal or external factors temporarily deprive
it of the ability to comply with the rules for the acquisition of origin
provided for in Article 2 where it could do so previously; 
(b)         
it requires time to prepare itself to comply
with the rules for the acquisition of origin provided for in Article 2; 
(c)         
the development of existing industries or the
creation of new industries justifies it.
2.           The request referred to in
paragraph 1 shall be addressed to the Commission in writing, by means of the
form set out in Appendix X. It shall state the reasons for the request and
shall contain appropriate supporting documents.
3.           The examination of
requests shall in particular take into account:
(a)         
the level of development or the geographical
situation of the OCT concerned, having particular regard to the economic and
social impact of the decision to be taken especially in respect of employment;
(b)         
cases where the application of the existing
rules of origin would significantly affect the ability of an existing industry
in the OCT concerned to continue its exports to the Union, with particular
reference to cases where this could lead to cessation of its activities;
(c)         
specific cases where it can be clearly
demonstrated that significant investment in an industry could be deterred by
the rules of origin and where a derogation favouring the realisation of the
investment programme would enable these rules to be satisfied by stages.
4.           The Commission shall
respond positively to all the requests which are duly justified in conformity
with this Article and which cannot cause serious injury to an established Union
industry. 
5.           The Commission shall take
steps necessary to ensure that a decision is reached as quickly as possible and
shall endeavour to adopt its position within 75 working days after the request
is received by the Commission.
6.           The temporary derogation
shall be limited to the duration of the effects of the internal or external
factors giving rise to it or to the length of time needed for the OCT to
achieve compliance with the rules or to fulfil the targets which have been set
by the derogation, taking into account the particular situation of the OCT
concerned and its difficulties.
7.           When a derogation is
granted, it is subject to compliance with any requirements laid down as to
information to be provided to the Commission concerning the use of the
derogation and the management of the quantities for which the derogation was
granted.
8.           The Commission shall adopt
a measure granting a temporary derogation referred to in paragraph 1 by means
of implementing acts. Those implementing acts shall be adopted in accordance
with the examination procedure referred to in Article 64(2).
Title III
Territorial requirements
Article 17
Principle of territoriality
1.           Except as provided for in
Articles 7 to 10, the conditions set out in this Annex for acquiring
originating status shall be fulfilled without interruption in the OCT.
2.           If originating products
exported from the OCT to another country are returned, they shall be considered
as non-originating unless it can be demonstrated to the satisfaction of the
competent authorities that:
(a)         
the products returned are the same as those
which were exported; and
(b)         
they have not undergone any operations beyond
that necessary to preserve them in good condition while in that country or
while being exported.
Article 18
Non-manipulation clause
1.           The products declared for
release for free circulation in the Union shall be the same products as
exported from the OCT in which they are considered to originate. They shall not
have been altered, transformed in any way or subjected to operations other than
operations to preserve them in good condition, prior to being declared for
release for free circulation. Storage of products or consignments and splitting
of consignments may take place where carried out under the responsibility of
the exporter or of a subsequent holder of the goods and the products remain
under customs supervision in the country or countries of transit.
2.           Compliance with paragraph
1 shall be considered as satisfied unless the customs authorities have reason
to believe the contrary; in such cases, the customs authorities may request the
declarant to provide evidence of compliance, which may be given by any means,
including contractual transport documents such as bills of lading or factual or
concrete evidence based on marking or numbering of packages or any evidence
related to the goods themselves.
3.           Paragraphs 1 and 2 shall
apply mutatis mutandis when cumulation under Articles 7 to 10 applies.
Article 19
Exhibitions
1.           Originating products, sent
from an OCT for exhibition in a country other than an OCT, an EPA country or a
Member State and sold after the exhibition for importation in the Union shall
benefit on importation from the provisions of the Decision, provided it is
shown to the satisfaction of the customs authorities that:
(a)         
an exporter has consigned these products from an
OCT to the country in which the exhibition is held and has exhibited them
there; 
(b)         
the products have been sold or otherwise
disposed of by that exporter to a person in the Union;
(c)         
the products have been consigned during the
exhibition or immediately thereafter in the state in which they were sent for
exhibition;
(d)         
the products have not, since they were consigned
for exhibition, been used for any purpose other than demonstration at the
exhibition.
2.           A proof of origin must be
issued or made out in accordance with the provisions of Title IV and submitted
to the customs authorities of the importing country in the normal manner. The
name and address of the exhibition must be indicated thereon. Where necessary,
additional documentary evidence of the conditions under which they have been
exhibited may be required.
3.           Paragraph 1 shall apply to
any trade, industrial, agricultural or crafts exhibition, fair or similar
public show or display which is not organised for private purposes in shops or
business premises with a view to the sale of foreign products, and during which
the products remain under customs control.
Title IV
 Proofs of origin 

Section 1
General Requirements
Article 20
Amounts expressed in euro
1.           For the application of the
provisions of Articles 26, 31, 43 and 44 in cases where products are invoiced
in a currency other than euro, amounts in the national currencies of the Member
States of the Union equivalent to the amounts expressed in euro shall be fixed
annually by each of the countries concerned.
2.           A consignment shall
benefit from the provisions of Articles 26, 31, 43 and 44 by reference to the
currency in which the invoice is drawn up.
3.           The amounts to be used in
any given national currency shall be the equivalent in that currency of the
amounts expressed in euro as at the first working day of October. The amounts
shall be communicated to the Commission by 15 October and shall apply from 1
January the following year. The Commission shall notify all countries concerned
of the relevant amounts.
4.           A Member State of the Union
may round up or down the amount resulting from the conversion into its national
currency of an amount expressed in euro. The rounded-off amount may not differ
from the amount resulting from the conversion by more than 5 per cent. A Member
State of the Union may retain unchanged its national currency equivalent of an
amount expressed in euro if, at the time of the annual adjustment provided for
in paragraph 3, the conversion of that amount, prior to any rounding-off,
results in an increase of less than 15 per cent in the national currency
equivalent. The national currency equivalent may be retained unchanged if the
conversion would result in a decrease in that equivalent value.
5.           The amounts expressed in
euro and their equivalents in national currencies of some Member States shall
be reviewed by the Commission on its own initiative or at the request of a
Member State or an OCT. When carrying out this review, the Commission shall
consider the desirability of preserving the effects of the limits concerned in
real terms. For this purpose, it may decide to modify the amounts expressed in
euro.
Section 2
Procedures before the application of the registered
exporters system
Article 21
Proof of origin
Products originating in the OCT shall, on
importation into the Union benefit from this Decision upon submission of
either:
(a)                   
a movement certificate EUR.1, a specimen of
which appears in Appendix III; or
(b)                   
in the cases specified in Article 26, a
declaration, the text of which appears in Appendix VI, given by the exporter on
an invoice, a delivery note or any other commercial document which describes
the products concerned in sufficient detail to enable them to be identified
(hereinafter referred to as the ‘invoice declaration’).
Article 22
Procedure for the issue of a movement certificate EUR1
1.           A movement certificate
EUR.1 shall be issued by the customs authorities of the exporting OCT on
application having been made in writing by the exporter or, under the
exporter's responsibility, by his authorised representative.
2.           For this purpose, the
exporter or his authorised representative shall fill out both the movement
certificate EUR.1 and the application form, specimens of which appear in
Appendix III and IV. These forms shall be completed in accordance with the
provisions of this Annex. If they are hand-written, they shall be completed in
ink in printed characters. The description of the products must be given in the
box reserved for this purpose without leaving any blank lines. Where the box is
not completely filled, a horizontal line must be drawn below the last line of
the description, the empty space being crossed through.
3.           The exporter applying for
the issue of a movement certificate EUR.1 shall be prepared to submit at any
time, at the request of the customs authorities of the exporting OCT where the
movement certificate EUR.1 is issued, all appropriate documents proving the
originating status of the products concerned as well as the fulfilment of the
other requirements of this Annex.
4.           A movement certificate
EUR.1 shall be issued by the customs authorities of the exporting OCT if the
products concerned can be considered as products originating in an OCT, in the Union
or in an EPA country and fulfil the other requirements of this Annex.
5.           The issuing customs
authorities shall take any steps necessary to verify the originating status of
the products and the fulfilment of the other requirements of this Annex. For
this purpose, they shall have the right to call for any evidence and to carry
out any inspection of the exporter's accounts or any other check considered
appropriate. The issuing customs authorities shall also ensure that the forms
referred to in paragraph 2 are duly completed. In particular, they shall check
whether the space reserved for the description of the products has been
completed in such a manner as to exclude all possibility of fraudulent
additions.
6.           The date of issue of the
movement certificate EUR.1 shall be indicated in Box 11 of the certificate.
7.           A movement certificate
EUR.1 shall be issued by the customs authorities and made available to the
exporter as soon as actual exportation has been effected or ensured.
Article 23
Movement certificate EUR1 issued retrospectively
1.           Notwithstanding Article
22, a movement certificate EUR.1 may exceptionally be issued after exportation
of the products to which it relates if:
(a)         
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 that a movement certificate EUR.1 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 movement certificate EUR.1 relates,
and state the reasons for his request.
3.           The customs authorities
may issue a movement certificate EUR.1 retrospectively only after verifying
that the information supplied in the exporter's application agrees with that in
the corresponding file.
4.           Movement certificates
EUR.1 issued retrospectively must be endorsed with the following phrases in the
‘Remarks’ box (Box 7) of the movement certificate EUR.1.
‘ISSUED RETROSPECTIVELY’ 
5.           The endorsement referred
to in paragraph 4 shall be inserted in the ‘Remarks’ box of the movement
certificate EUR.1.
Article 24
Issue of duplicate movement certificate EUR1 
1.           In the event of theft,
loss or destruction of a movement certificate EUR.1, the exporter may apply to
the customs authorities which issued it for a duplicate made out on the basis
of the export documents in their possession.
2.           The duplicate movement
certificate EUR.1 shall be endorsed in the ‘Remarks’ box (Box 7) with the
following word:
‘DUPLICATE’.
3.           The endorsement referred
to in paragraph 2 shall be inserted in the ‘Remarks’ box of the duplicate
movement certificate EUR.1. 
4.           The duplicate, which must
bear the date of issue of the original movement certificate EUR.1, shall take
effect as from that date.
Article 25
Issue of movement certificates EUR.1 on the basis of a proof of origin issued
or made out previously
When originating products are placed under
the control of a customs office in the Union or in an OCT, it shall be possible
to replace the original proof of origin by one or more movement certificates
EUR.1 for the purpose of sending all or some of these products elsewhere within
the Union or an OCT. The replacement movement certificate(s) EUR.1 shall be
issued by the customs office under whose control the products are placed.
Article 26
Conditions for making out an invoice declaration
1.           An invoice declaration as
referred to in Article 21 (b) may be made out:
(a)         
by an approved exporter within the meaning of
Article 27; or
(b)         
by any exporter for any consignment consisting
of one or more packages containing originating products the total value of
which does not exceed EUR 10,000.
2.           An invoice declaration may
be made out if the products concerned can be considered as products originating
in an OCT, in an EPA country or in the Union and fulfil the other requirements
of this Annex.
3.           The exporter making out an
invoice declaration shall be prepared to submit at any time, at the request of
the customs authorities of the exporting country or territory, all appropriate
documents proving the originating status of the products concerned as well as
the fulfilment of the other requirements of this Annex.
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 VI, using one of the linguistic versions set
out in that Annex and in accordance with the provisions of the domestic law of
the exporting country or territory. If the declaration is hand-written, it
shall be written in ink in printed characters.
5.           Invoice declarations shall
bear the original signature of the exporter in manuscript. However, an approved
exporter within the meaning of Article 27 shall not be required to sign such
declarations provided that he gives the customs authorities of the exporting
country a written undertaking that he accepts full responsibility for any
invoice declaration which identifies him as if it had been signed in manuscript
by him.
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 in the importing country
no longer than two years after the importation of the products to which it
relates.
Article 27
Approved exporter
1.           The customs authorities of
the exporting country may authorise any exporter to make out invoice declarations
irrespective of the value of the products concerned. An exporter seeking such
authorisation must offer to the satisfaction of the customs authorities all
guarantees necessary to verify the originating status of the products as well
as the fulfilment of the other requirements of this Annex.
2.           The customs authorities
may grant the status of approved exporter subject to any conditions which they
consider appropriate.
3.           The customs authorities
shall grant to the approved exporter a customs authorisation number which shall
appear on the invoice declaration.
4.           The customs authorities
shall monitor the use of the authorisation by the approved exporter.
5.           The customs authorities
may withdraw the authorisation at any time. They shall do so where the approved
exporter no longer offers the guarantees referred to in paragraph 1, does not
fulfil the conditions referred to in paragraph 2 or otherwise makes an
incorrect use of the authorisation.
Article 28
Validity of proof of origin
1.           A proof of origin shall be
valid for ten months from the date of issue in the exporting country, and must
be submitted within the said period to the customs authorities of the importing
country.
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 29
Submission of proof of origin
Proofs of origin shall be submitted to the
customs authorities of the importing country in accordance with the procedures
applicable in that country. The said authorities may require a translation of a
proof of origin and may also require the import declaration to be accompanied
by a statement from the importer to the effect that the products meet the
conditions required for the implementation of the Decision.
Article 30
Importation by instalments
Where, at the request of the importer and
on the conditions laid down by the customs authorities of the importing
country, dismantled or non-assembled products within the meaning of General
Rule 2(a) of the Harmonised System falling within Sections XVI and XVII or
tariff headings 7308 and 9406 of the Harmonised System are imported by
instalments, a single proof of origin for such products shall be submitted to
the customs authorities upon importation of the first instalment.
Article 31
Exemptions from proof of origin
1.           Products sent as small
packages from private persons to private persons or forming part of travellers'
personal luggage shall be admitted as originating products without requiring
the submission of a proof of origin, provided that such products are not
imported by way of trade and have been declared as meeting the requirements of
this Annex and where there is no doubt as to the veracity of such a
declaration. In the case of products sent by post, this declaration can be made
on the customs declaration CN22/CN23 or on a sheet of paper annexed to that
document.
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 in view.
3.           Furthermore, the total
value of these products shall not exceed 500 EUR in the case of small packages
or 1 200 EUR in the case of products forming part of travellers' personal
luggage.
Article 32
Information procedure for cumulation purposes
1.           For the purpose of
Articles 2(2) and 7(1), the evidence of originating status within the meaning
of this Annex of the materials coming from another OCT or from the Union shall
be given by means of a movement certificate EUR.1 or by means of a supplier's
declaration, provided by the exporter in the country from which the materials
came. A specimen of a supplier's declaration appears in Appendix VII.
2.           For the purpose of
Articles 2(2) and 7(2), the evidence of working or processing carried out in
another OCT or in the Union shall be given by means of a supplier's
declaration, provided by the exporter in the country from which the materials
came. A specimen of the supplier's declaration appears in Appendix VIII.
3.           For the purpose of
paragraphs 1 and 2, a separate supplier's declaration shall be given by the
supplier for each consignment of materials on the commercial invoice related to
that shipment or in an annex to that invoice, or on a delivery note or other
commercial document related to that shipment which describes the materials
concerned in sufficient detail to enable them to be identified.
The supplier's declaration may be made out
on a pre-printed form.
The suppliers' declarations shall be
signed in manuscript. However, where the invoice and the supplier's declaration
are established using electronic data-processing methods, the supplier's
declaration need not be signed in manuscript, provided that the responsible
officer in the supplying company is identified to the satisfaction of the
customs authorities in the country or territory where the suppliers'
declarations were established. The said customs authorities may lay down
conditions for the implementation of this paragraph.
The supplier's declarations are submitted
to the competent customs office in the exporting OCT requested to issue the
movement certificate EUR.1.
4.           When Articles 8 and 10 are
applied, the evidence of originating status in accordance with the provisions
of the relevant free-trade agreement between the Union and the country
concerned shall be given by the proofs of origin established by the relevant
free-trade agreement.
5.           When Article 9 is applied,
the evidence of originating status in accordance with the provisions laid down
in Commission Regulation (EEC) No 2454/93[23] shall be
given by the proofs of origin established by the same Regulation.
6.           In the cases referred to
in the first, second, fourth and fifth paragraph, Box 7 of movement certificate
EUR.1 or the invoice declaration shall, as the case may be, contain the
indication 'OCT cumulation', ‘EU cumulation’, 'EPA cumulation', 'cumulation
with GSP country' or ‘extended cumulation with country x’ or 'Cumul PTOM',
‘Cumul UE’, 'cumul avec pays APE', ‘cumul avec pays SPG’ or ‘cumul étendu avec
le pays x’.
Article 33
Supporting documents
The documents referred to in Article 22(3)
and Article 26(3) used for the purpose of proving that products covered by a
movement certificate EUR.1 or an invoice declaration can be considered as
products originating in an OCT or in the Union or in an EPA country and fulfil
the other requirements of this Annex may consist inter alia of the following: 
(a)                   
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 an OCT, or in the Union or in an EPA
State where these documents are used in accordance with domestic law;
(c)                   
documents proving the working or processing of
materials in the OCT, in the Union, or in an EPA country, issued or made out in
an OCT, in the Union or in an EPA country, where these documents are used in
accordance with domestic law;
(d)                   
movement certificates EUR.1 or invoice
declarations proving the originating status of materials used, issued or made
out in the OCT, in the Union or in an EPA country and in accordance with this
Annex.
Article 34
Preservation of proof of origin and supporting documents
1.           The exporter applying for
the issue of a movement certificate EUR.1 shall keep for at least three years
the documents referred to in Article 22(3).
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 26(3).
3.           The customs authorities of
the exporting OCT issuing a movement certificate EUR.1 shall keep for at least
three years the application form referred to in Article 22(2).
4.           The customs authorities of
the importing country shall keep for at least three years the movement
certificates EUR.1 and the invoice declarations submitted to them.
Article 35
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.
Section
3
Procedures for the registered exporter system
Sub-section 1
Procedures at export in the OCT
Article 36
General requirements
Benefits from this Decision shall apply in
the following cases:
(a)                   
in cases of goods satisfying the requirements of
this Annex exported by a registered exporter within the meaning of Article 38;
(b)                   
in cases of any consignment of one or more
packages containing originating products exported by any exporter, where the
total value of the originating products consigned does not exceed EUR 10, 000.
Article 37
Record of registered exporters
1.           The competent authorities
of the OCTs shall establish and keep up to date at all times an electronic
record of registered exporters located in that country. The record shall be
immediately updated where an exporter is withdrawn from the register in
accordance with Article 41(2).
2.           The record shall contain
the following information:
(a)         
name and full address of the place where
Registered Exporter is established/resides, including the identifier of the
country or territory (ISO alpha 2 country code);
(b)         
number of Registered Exporter;
(c)         
products intended to be exported under this
Decision (indicative list of Harmonised System chapters or headings as
considered appropriate by the applicant);
(d)         
dates as from and until when the exporter is/was
registered;
(e)         
the reason for withdrawal (registered exporter’s
request / withdrawal by competent authorities). This data shall only be
available to competent authorities.
3.           The competent authorities
of the OCTs shall notify the Commission of the national numbering system used
for designating registered exporters. The number shall begin with an ISO alpha
2 country code.
Article 38
Request for registration
To be registered, exporters shall lodge an
application with the competent authorities of the OCTs referred to in Article
57(1), using the form a model of which is set out in Appendix XI. By the
completion of the form exporters give consent to the storage of the information
provided in the database of the Commission and to the publication of non-confidential
data on the internet.
The application shall be accepted by the
competent authorities only if it is complete.
Article 39
Withdrawal of the registration
1.           Registered exporters who
no longer meet the conditions for exporting any goods benefiting from this
Decision, or no longer intend to export such goods, shall inform the competent
authorities in the OCTs who shall immediately remove them from the record of
registered exporters kept in that OCT.
2.           Without prejudice to the
system of penalties and sanctions applicable in the OCTs, where registered
exporters intentionally or negligently draw up, or cause to be drawn up, a
statement on origin or any supporting document which contains incorrect
information which leads to irregularly or fraudulently obtaining the benefit of
preferential tariff treatment, the OCT competent authorities shall withdraw the
exporter from the record of registered exporters kept by the OCT concerned.
3.           Without prejudice to the
possible impact of irregularities found on pending verifications, withdrawal
from the record of registered exporters shall take effect for the future, i.e.
in respect of statements made out after the date of withdrawal.
4.           Exporters who have been
removed from the record of registered exporters by the competent authorities in
accordance with paragraph 2 may only be re-introduced into the record of
registered exporters once they have proved to the competent authorities in the
OCT that they have remedied the situation which led to their withdrawal.
Article 40
Supporting documents
1.           Exporters, registered or
not, shall comply with the following obligations:
(a)         
they shall maintain appropriate commercial
accounting records for production and supply of goods qualifying for
preferential treatment;
(b)         
they shall keep available all evidence relating
to the material used in the manufacture;
(c)         
they shall keep all customs documentation
relating to the material used in the manufacture;
(d)         
they shall keep for at least three years from
the end of the year in which the statement on origin was made out, or more if
required by national law, records of:
–              
the statements on origin they made out; and
–              
their originating and non-originating materials,
production and stock accounts.
2.           The records referred to in
point (d) of paragraph 1 may be electronic but shall allow the materials used
in the manufacture of the exported products to be traced and their originating
status to be confirmed.
3.           The obligations provided
for in paragraphs 1 and 2 shall also apply to suppliers who provide exporters
with supplier's declarations certifying the originating status of the goods
they supply.
Article 41
Proof of origin
1.           A statement on origin
shall be made out by the exporter when the products to which it relates are
exported, if the goods concerned can be considered as originating in the
OCT.
2.           By derogation from
paragraph 1, a statement on origin may exceptionally be made out after
exportation (retrospective statement) on condition that it is presented in the
Member State of declaration for release for free circulation no longer than two
years after the export.
3.           The statement on origin
shall be provided by the exporter to his customer in the Union and shall
contain the particulars specified in Appendix XII. A statement on origin shall
be made out in either English or French.
It may be made out on any commercial document
allowing to identify the exporter concerned and the goods involved.
4.           When cumulation under
Articles 2 and 7 applies, the exporter of a product in the manufacture of which
materials originating in an OCT or in the EU is used shall rely on the
statement on origin provided by its supplier. 
5.           In these cases, the
statement on origin made out by the exporter shall, as the case may be, contain
the indication ‘EU cumulation’, ‘OCT cumulation’ or ‘Cumul UE’, ‘cumul PTOM’.
6.           When cumulation under
Articles 8 and 10 applies, the exporter of a product in the manufacture of
which materials originating in a country with which extended cumulation is
permitted are used shall rely on the proof of origin provided by its supplier
and issued in accordance with the provisions of the relevant free-trade
agreement between the Union and the country concerned.
In this case, the statement on origin made out
by the exporter shall contain the indication 'cumulation with EPA country' or
‘extended cumulation with country x’ or 'cumul avec pays APE' or ‘cumul étendu
avec le pays x’.
7.           When cumulation of Article
9 applies, the evidence of originating status established in accordance with
the provisions laid down in Regulation (EEC) No 2454/93 , shall be given by the
proofs of origin established by the same Regulation.
In this case, the statement on origin made out
by the exporter shall contain the indication 'cumulation with GSP country' or
‘cumul avec pays SPG’.
Article 42
Submission of a proof of origin
1.           A statement on origin
shall be made out for each consignment.
2.           A statement on origin
shall be valid for twelve months from the date of its making out by the
exporter.
3.           A single statement on
origin may cover several consignments if the goods meet the following
conditions:
(a)         
they are dismantled or non-assembled products
within the meaning of general rule 2(a) of the Harmonized system;
(b)         
they are falling within Section XVI or XVII or
heading 7308 or 9406 of the Harmonized System; and
(c)         
 they are intended to be imported by
instalments.
Sub-section
2
Procedures at release for free circulation in the Union
Article 43
Submission of proof of origin
1.           The customs declaration
for release for free circulation shall make reference to the statement on
origin. The statement on origin shall be kept at the disposal of the customs
authorities, which may request its submission for the verification of the
declaration. Those authorities may also require a translation of the statement
into the official language, or one of the official languages, of the Member
State concerned.
2.           Where the application of
the benefits from this Decision is requested by the declarant, without a
statement on origin being in his possession at the time of the acceptance of
the customs declaration for release for free circulation, that declaration
shall be considered as being incomplete within the meaning of Article 253(1) of
Regulation (EEC) No 2454/93 and treated accordingly.
3.           Before declaring goods for
release for free circulation, the declarant shall take due care that the goods
comply with the rules in this Annex by, in particular, checking:
(a)         
in the database referred to in Article 58 that
the exporter is registered to make statements on origin, except where the total
value of the originating products consigned does not exceed EUR 10,000; and
(b)         
that the statement on origin is made out in
accordance with Appendix XII.
Article 44
Exemption from proof of origin
1.           The following products
shall be exempted from the obligation to make out and produce a statement on
origin:
(a)         
products sent as small packages from private
persons to private persons, the total value of which does not exceed EUR 500;
(b)         
products forming part of travellers' personal
luggage, the total value of which does not exceed EUR 1200.
2.           The products referred to
in paragraph 1 shall meet the following conditions:
(a)         
they are not imported by way of trade;
(b)         
they have been declared as meeting the
conditions for benefiting from this Decision;
(c)         
there is no doubt as to the veracity of the
declaration referred to in point (b).
3.           For the purposes of point
(a) of paragraph 2, imports shall not be considered as imports by way of trade
if all the following conditions are met:
(a)         
the imports are occasional;
(b)         
the imports consist solely of products for the
personal use of the recipients or travellers or their families; 
(c)         
it is evident from the nature and quantity of
the products that no commercial purpose is in view.
Article 45
Discrepancies and formal errors
1.           The discovery of slight
discrepancies between the particulars included in a statement on origin and
those mentioned in the documents submitted to the customs authorities for the
purpose of carrying out the formalities for importing the products shall not
ipso facto render the statement on origin null and void if it is duly
established that that document does correspond to the products concerned.
2.           Obvious formal errors such
as typing errors on a statement on origin shall not cause this document to be
rejected if these errors are not such as to create doubts concerning the
correctness of the statements made in that document.
Article 46
Validity of proof of origin
Statements on origin which are submitted to
the customs authorities of the importing country after the period of validity
mentioned in Article 41(2) may be accepted for the purpose of applying the
tariff preferences, where failure to submit these documents by the final date
set is due to exceptional circumstances. In other cases of belated
presentation, the customs authorities of the importing country may accept the
statements on origin where the products have been presented to customs before
the said final date.
Article 47
Procedure for importation by instalments
1.           The procedure referred to
in Article 42(3) shall apply for a period determined by the customs authorities
of the Member States.
2.           The customs authorities of
the Member States of importation supervising the successive releases for free
circulation shall verify that the successive consignments are part of the dismantled
or non-assembled products for which the statement on origin has been made out.
Article 48
Replacement of a statement of origin
1.           Where products have not
yet been released for free circulation, a statement on origin may be replaced
by one or more replacement statements on origin, made out by the holder of the
goods, for the purpose of sending all or some of the products elsewhere within
the customs territory of the Union. For being entitled to make out replacement
statements on origin, holders of the goods need not be registered exporters
themselves.
2.           Where a statement on
origin is replaced, the original statement on origin shall indicate the
following:
(a)         
the particulars of the replacement statement(s)
on origin;
(b)         
the names and addresses of the consignor;
(c)         
the consignee(s) in the Union.
The original statement on origin shall be
marked as "Replaced" or "Remplacée", as the case may be.
3.           On the replacement
statement on origin the following shall be indicated:
(a)         
all particulars of the re-consigned products;
(b)         
 the date on which the original statement on
origin was made out;
(c)         
all the necessary mentions as specified under Appendix
XII;
(d)         
 the name and address of the consignor of the
products in the Union;
(e)         
 the name and address of the consignee in the Union;
(f)           
 the date and place of the replacement.
The person making out the replacement statement
on origin may attach a copy of the initial statement on origin to the
replacement statement on origin.
4.           Paragraphs 1, 2 and 3
shall apply mutatis mutandis to statements replacing statements on origin that
are themselves replacement statements on origin. 
5.           Paragraphs 1, 2 and 3
shall apply mutatis mutandis to statements replacing statements on origin
further to the splitting of a consignment carried out in accordance with
Article 18.
Article 49
Verification of statements of origin
1.           The customs authorities
may, where they have doubts with regard to the originating status of the
products request the declarant to produce, within a reasonable time period
which they shall specify, any available evidence for the purpose of verifying
the accuracy of the indication on origin of the declaration or the compliance
with the conditions under Article 18.
2.           The customs authorities
may suspend the application of the preferential tariff measure for the duration
of the verification procedure laid down in Article 64 where:
(a)         
the information provided by the declarant is not
sufficient to confirm the originating status of the products or the compliance
with the conditions laid down in Article 17 (2) or Article 18;
(b)         
the declarant does not reply within the time
period allowed for provision of the information referred to in paragraph 1.
3.           While awaiting either the
information requested from the declarant, referred to in paragraph 1, or the
results of the verification procedure, referred to in paragraph 2, release of
the products shall be offered to the importer subject to any precautionary
measures judged necessary.
Article 50
Denial of preferences
1.           The customs authorities of
the Member State of importation shall refuse entitlement to the benefits of
this Decision, without being obliged to request any additional evidence or send
a request for verification to the OCT where:
(a)         
the goods are not the same as those mentioned in
the statement on origin;
(b)         
the declarant fails to submit a statement on
origin for the products concerned, where such a statement is required;
(c)         
without prejudice to point (b) of Article 36 and
to Article 44 (1), the statement on origin in possession of the declarant has
not been made out by an exporter registered in the OCT;
(d)         
 the statement on origin is not made out in
accordance with Appendix XII;
(e)         
the conditions of Article 18 are not met;
2.           The customs authorities of
the Member State of importation shall refuse entitlement to the benefits of
this Decision, following a request for verification within the meaning of
Article 60 addressed to the competent authorities of the OCTs, where the
customs authorities of the Member State of importation:
(a)         
have received a reply according to which the
exporter was not entitled to make out the statement on origin;
(b)         
have received a reply according to which the
products concerned are not originating in the OCT concerned or the conditions
of Article 17 (2) were not met;
(c)         
had reasonable doubt as to the validity of the
statement on origin or the accuracy of the information provided by the
declarant regarding the true origin of the products in question when they made
the request for verification; and
–              
have received no reply within the time period
permitted in accordance with Article 60;
or
–              
have received a reply not providing adequate
answers to the questions raised in the request.
Title
V
Arrangements for Administrative cooperation
SECTION 1
GENERAL

Article 51
General Principles
1.           In order to ensure the
proper application of the preferences, OCTs shall:
(a)         
put in place and to maintain the necessary
administrative structures and systems required for the implementation and
management in that country of the rules and procedures laid down in this Annex,
including where appropriate the arrangements necessary for the application of
cumulation;
(b)         
cooperate, through their competent authorities
with the Commission and the customs authorities of the Member States.
2.           The cooperation referred
to in point (b) of paragraph 1 shall consist of: 
(a)         
providing all necessary support in the event of
a request by the Commission for the monitoring by it of the proper implementation
of this Annex in the country concerned, including verification visits on the
spot by the Commission or the customs authorities of the Member States;
(b)         
 without prejudice to Articles 49, 50, 55 and
56, verifying the originating status of products and the compliance with the
other conditions laid down in this Annex, including verification visits on the
spot, where requested by the Commission or the customs authorities of the
Member States in the context of origin investigations;
(c)         
where the verification procedure or any other
available information appears to indicate that the provisions of this Annex are
being contravened, the OCT on its own initiative or at the request of the
Commission or the customs authorities of the Member States shall carry out
appropriate enquiries or arrange for such enquiries to be carried out with due
urgency to identify and prevent such contraventions. The Commission and the
customs authorities of the Member States may participate in the enquiries.
3.           OCTs shall submit to the
Commission, before 1 January 2015, a formal undertaking to comply with the
requirements of paragraph 1.
Article 52
Publication requirements and compliance
1.           The Commission shall publish
in the Official Journal of the European Union (C Series) the list of
OCTs and the date on which they are considered to meet the conditions referred
to in Articles 51 and 54, or in Article 57. The Commission shall update this
list when a new OCT fulfils the same conditions.
2.           Products originating
within the meaning of this Annex in an OCT shall benefit, on release for free
circulation in the Union, from the tariff preferences only on condition that
they were exported on or after the date specified in the list referred to in
paragraph 1.
3.           An OCT shall be considered
to comply with Articles 51 and 54, or Article 57 on the date on which it has: 
(a)         
made the notification referred to in Article 54(1)
or 57(1) and, when relevant, Article 54(2) and,
(b)         
submitted the undertaking referred to in Article
51(1).
4.           For the implementation of
Section 3 of Title IV and Section 3 of Title V, OCTs shall submit information
referred to in Article 57(1)(b) to the Commission at least three months before
the actual application in their territories of the registered exporter system. 
Article 53
Penalties
Penalties shall be imposed on any person
who draws up, or causes to be drawn up, a document which contains incorrect information
for the purpose of obtaining a preferential treatment for products.
SECTION 2
METHODS
OF ADMINISTRATIVE COOPERATION BEFORE THE APPLICATION OF THE REGISTERED EXPORTER
SYSTEM
Article 54
Communication of stamps and addresses
1.           The OCTs shall notify to
the Commission the names and addresses of the authorities situated in their
territory which are:
(a)         
part of the governmental authorities of the
country concerned and empowered to support the Commission and the customs
authorities of the Member States through the administrative co-operation as
provided for in this Title;
(b)         
customs authorities competent to issue movement
certificates EUR.1 and carry out the subsequent verification of movement
certificates EUR.1 and invoice declarations;
2.           OCTs shall send to the
Commission specimens of the stamps used.
3.           The OCTs shall inform the
Commission immediately of any changes to the information notified under
paragraphs 1 and 2.
4.           The Commission shall send
this information to the customs authorities of the Member States.
Article 55
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 2, the customs authorities of the
importing country shall return the movement certificate EUR.1 and the invoice,
if it has been submitted, the invoice declaration, or a copy of these
documents, to the customs authorities of the exporting country giving, where
appropriate, the reasons for the enquiry. Any documents and information obtained
suggesting that the information given on the proof or origin is incorrect shall
be forwarded in support of the request for verification.
3.           The verification shall be
carried out by the customs authorities of the exporting country. For this
purpose, they shall have the right to call for any evidence and to carry out
any inspection of the exporter's accounts or any other check considered
appropriate.
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 an OCT, in the Union or in an EPA country
and fulfil the other requirements of this Annex.
6.           If in cases of reasonable
doubt there is no reply within ten months of the date of the verification
request or if the reply does not contain sufficient information to determine
the authenticity of the document in question or the real origin of the
products, the requesting customs authorities shall, except in exceptional
circumstances, refuse entitlement to the preferences. 
Article 56
Verification of suppliers' declarations
1.           Verification of suppliers'
declaration may be carried out at random or whenever the customs authorities of
the importing country have reasonable doubts as to the authenticity of the
document or the accuracy or completeness of the information concerning the true
origin of the materials in question.
2.           The customs authorities to
which a supplier's declaration is submitted may request the customs authorities
of the country where the declaration was made to issue an information
certificate, a specimen of which appears in Appendix IX. Alternatively, the
customs authorities to which a supplier's declaration is submitted may request
the exporter to produce an information certificate issued by the customs
authorities of the State where the declaration was made.
A copy of the information certificate shall be
preserved by the office which has issued it for at least three years. 
3.           The requesting customs
authorities shall be informed of the results of the verification as soon as
possible. The results must be such as to indicate positively whether the
declaration concerning the status of the materials is correct.
4.           For the purpose of
verification, suppliers shall keep for not less than three years a copy of the
document containing the declaration together with all necessary evidence
showing the true status of the materials.
5.           The customs authorities in
the State where the supplier's declaration is established shall have the right
to call for any evidence or to carry out any check which they consider
appropriate in order to verify the correctness of any supplier's declaration.
6.           Any movement certificate
EUR.1 issued or made out on the basis of an incorrect supplier's declaration
shall be considered null and void.
SECTION 3
METHODS
OF ADMINISTRATIVE COOPERATION APPLICABLE FOR THE REGISTERED EXPORTER SYSTEM
Article 57
Communication of stamps and addresses
1.           The OCTs shall notify to
the Commission the names and addresses of the authorities situated in their
territory which are:
(a)         
part of the governmental authorities of the
country concerned and empowered to support the Commission and the customs
authorities of the Member States through the administrative co-operation as
provided for in this Title;
(b)         
part of the governmental authorities of the
country concerned, or act under the authority of the government, and empowered
to register exporters and to withdraw them from the record of registered
exporters;
2.           The OCTs shall inform the
Commission immediately of any changes to the information notified under
paragraphs 1 and 2.
3.           The Commission shall send
this information to the customs authorities of the Member States.
Article 58
Establishment of a database of registered exporters
1.           The Commission shall
establish an electronic database of registered exporters on the basis of the
information supplied by the governmental authorities of OCTs and the customs
authorities of Member States.
2.           Only the Commission shall
have an access to the database and the data contained therein. The authorities
referred to in paragraph 1 shall ensure that data communicated to the
Commission are kept up to date, and are complete and accurate.
3.           The data processed in the
database referred to in paragraph 1 shall be disclosed to the public via the
internet, with the exception of the confidential information contained in boxes
2 and 3 of the application to become a registered exporter referred to in
Article 28.
4.           Personal data processed in
the database referred to in paragraph 1 shall be transferred or made available
to third countries or international organisations only in accordance with
Article 9 of Regulation (EC) N° 45/2001.
5.           This Decision shall in no
way affect the level of protection of individuals with regard to the processing
of personal data under the provisions of Union and national law, and in
particular does not alter either the obligations of Member States relating to
their processing of personal data under Directive 95/46/EC or the obligations
of the Union institutions and bodies relating to their processing of personal
data under Regulation (EC) No 45/2001 when fulfilling their responsibilities.
6.           Identification and
registration data of exporters, constituted by the set of data listed in points
1, 3 (relating to description of activities), 4 and 5 of Appendix XI shall be
published by the Commission on the internet only if the exporters concerned
have freely given prior specific and informed written consent.
7.           Exporters shall be
provided with the information laid down in Article 11 of Regulation (EC) No
45/2001. 
8.           The rights of persons with
regard to their registration data listed in Appendix XI and processed in
national systems shall be exercised in accordance with the law of the Member
State which stored their personal data implementing Directive 95/46/EC.
9.           The rights of persons with
regard to the processing of personal data in the central database referred to
in paragraphs 1 to 4 shall be exercised in accordance with Regulation (EC) No
45/2001.
10.         The national supervisory
data protection authorities and the European Data Protection Supervisor, each
acting within the scope of their respective competences, shall cooperate
actively and ensure coordinated supervision of the database referred to in
paragraphs 1 to 4.
Article 59
Control of origin
1.           For the purpose of
ensuring compliance with the rules concerning the originating status of
products, the competent authorities of the OCT shall carry out
(a)         
verifications of the originating status of
products at the request of the customs authorities of the Member States;
(b)         
regular controls on exporters on their own
initiative.
Extended cumulation shall only be permitted
under Article 10, if a country with which the Union has a free-trade agreement
in force has agreed to provide the OCTs with its support in matters of
administrative cooperation in the same way as it would provide such support to
the customs authorities of the Member States in accordance with the relevant
provisions of the free-trade agreement concerned.
2.           The controls referred to
in point (b) of paragraph 1 shall ensure the continued compliance of exporters
with their obligations. They shall be carried out at intervals determined on
the basis of appropriate risk analysis criteria. For that purpose, the
competent authorities of the OCTs shall require exporters to provide copies or
a list of the statements on origin they have made out.
3.           The competent authorities
of the OCTs shall have the right to call for any evidence and to carry out any
inspection of the exporter's accounts and, where appropriate, those of
producers supplying the exporter, including at the premises, or any other check
considered appropriate.
Article 60
Verifications of proof of origin
1.           Subsequent verifications
of statements on origin shall be carried out at random or whenever the customs
authorities of the Member States have reasonable doubts as to their
authenticity, the originating status of the products concerned or the
fulfilment of other requirements of this Annex.
Where the customs authorities of a Member State
request the cooperation of the competent authorities of an OCT to carry out a
verification of the validity of statements on origin, the originating status of
products, or of both, it shall, where appropriate, indicate on its request the
reasons why it has reasonable doubts on the validity of the statement on origin
or the originating status of the products.
A copy of the statement on origin and any
additional information or documents suggesting that the information given on
that statement is incorrect may be forwarded in support of the request for
verification.
The requesting Member State shall set a 6-month
initial deadline to communicate the results of the verification, starting from
the date of the verification request.
2.           If in cases of reasonable
doubt there is no reply within the period specified in paragraph 1 or if the
reply does not contain sufficient information to determine the real origin of
the products, a second communication shall be sent to the competent
authorities. This communication shall set a further deadline of not more than 6
months.
Article 61
Other provisions
1.           Section III of Title V and
Section III of Title VI shall apply mutatis mutandis to:
(a)         
exports from the Union to an OCT for the purpose
of bilateral cumulation;
(b)         
exports from one OCT to another for the purpose
of OCT cumulation as provided for in Article 2 (2).
2.           Union exporters shall be
considered by the customs authority of a Member State at their request as
registered exporters for the purposes of the benefits from this Decision where
they fulfil the following conditions:
(a)         
they have an EORI number in accordance with
Articles 4k to 4t of Regulation (EEC) No 2454/93;
(b)         
they have the status of 'approved exporter'
under a preferential arrangement;
(c)         
they provide in their request addressed to the
customs authority of the Member State the following data set out in the form a
model of which appears in Appendix XI:
–              
the details set out in boxes 1 and 4;
–              
the undertaking set out in box 5.
Title
VI
Ceuta and Melilla
Article 62
1.           The provisions of this
Annex concerning the issue, use and subsequent verification of proofs of origin
shall apply mutatis mutandis to products exported from an OCT to Ceuta and
Melilla and to products exported from Ceuta and Melilla to an OCT for the
purposes of bilateral cumulation.
2.           Ceuta and Melilla shall be
considered as a single territory.
3.           The Spanish customs
authorities shall be responsible for the application of this Annex in Ceuta and
Melilla.
Title
VII
FinAl Provisions
Article 63
Derogation to the registered exporter
system
1.           By way of derogation, the
Commission may adopt decisions allowing to apply Articles 21 to 35 and Articles
54 to 56 on exports from one or several OCTs after 1 January 2017. 
The derogation shall be limited to the duration
necessary for the OCT concerned to be in a position to apply Articles 38 to 50
and Articles 57 to 61.
2.           The OCTs wishing to take
advantage of the derogation provided for in paragraph 1 shall address a request
to the Commission. The request shall indicate the time needed until the OCT
concerned is considered to be in a position to apply Articles 38 to 50 and
Articles 57 to 61. 
3.           The Commission shall adopt
a measure granting a temporary derogation referred to in paragraph 1 by means
of implementing acts. Those implementing acts shall be adopted in accordance
with the examination procedure referred to in Article 64(2).
Article 64
Committee procedures
1.           The Commission shall be
assisted by the Customs Code Committee established by Article 247a of
Regulation (EEC) No 2913/92.
2.           Where reference is made to
this paragraph, Article 5 of regulation (EU) No 182/2011 shall apply.
Article 65
Application
1.           This Annex shall apply
from the date of entry into force of this Decision. 
2.           Article 52(3)(b) shall
apply from 1 January 2015. 
3.           Article 8(3)(b) shall
apply until 30 September 2015. 
4.           Articles 21 to 35 and
Articles 54 to 56 shall apply until 31 December 2016.
5.           Articles 38 to 50 and
Articles 57 to 61 shall apply from 1 January 2017.
Appendix I
INTRODUCTORY
NOTES 
Note 1 – General introduction
This Annex lays down the conditions
pursuant to Article 4 under which products shall be considered to originate in
the OCT concerned. There are four different types of rules, which vary
according to the product:
(a)                   
through working or processing a maximum content
of non-originating materials is not exceeded;
(b)                   
through working or processing the 4-digit
Harmonized System heading or 6-digit Harmonized System sub-heading of the
manufactured products becomes different from the 4-digit Harmonized System
heading or 6-digit sub-heading respectively of the materials used;
(c)                   
a specific working and processing operation is
carried out;
(d)                   
working or processing is carried out on certain
wholly obtained materials.
Note 2 – The
structure of the list
2.1.        Columns 1 and 2 describe the
product obtained. Column 1 gives the chapter number, 4-digit heading or 6-digit
sub-heading number used in the Harmonised System, as appropriate. Column 2
gives the description of goods used in that system for that heading or chapter.
For each entry in columns 1 and 2, subject to Note 2.4, one or more rules ("qualifying
operations") are set out in column 3. These qualifying operations concern
only non-originating materials. Where, in some cases, the entry in column 1 is
preceded by “ex”, this signifies that the rule in column 3 applies only to the
part of that heading as described in column 2.
2.2.        Where several Harmonised System
headings or sub-headings are grouped together in column 1 or a chapter number
is given and the description of products in column 2 is therefore given in
general terms, the adjacent rule in column 3 applies to all products which,
under the Harmonised System, are classified in headings of the chapter or in
any of the headings or sub-headings grouped together in column 1.
2.3.        Where there are different rules in
the list applying to different products within a heading, each indent contains
the description of that part of the heading covered by the adjacent rule in
column 3.
2.4         Where two alternative rules are
set out in column 3, separated by "or", it is at the choice of
the exporter which one to use.
Note 3 – Examples of how to apply the
rules
3.1.        Article 4(2), concerning products
having acquired originating status which are used in the manufacture of other
products, shall apply, regardless of whether this status has been acquired
inside the factory where these products are used or in another factory in the
OCT or in the Union.
3.2.        Pursuant to Article 5, the working
or processing carried out must go beyond the list of operations mentioned in
that Article. If it does not, the goods shall not qualify for the granting of
the benefit of preferential tariff treatment, even if the conditions set out in
the list below are met.
Subject to the provision referred to in the
first sub-paragraph, the rules in the list represent the minimum amount of working
or processing required, and the carrying-out of more working or processing also
confers originating status; conversely, the carrying-out of less working or
processing cannot confer originating status. Thus, if a rule provides that
non-originating material, at a certain level of manufacture, may be used, the
use of such material at an earlier stage of manufacture is allowed, and the use
of such material at a later stage is not.
3.3.        Without prejudice to Note 3.2,
where a rule uses the expression “Manufacture from materials of any heading”,
then materials of any heading(s) (even materials of the same description and
heading as the product) may be used, subject, however, to any specific
limitations which may also be contained in the rule.
However, the expression “Manufacture from
materials of any heading, including other materials of heading ...” or
“Manufacture from materials of any heading, including other materials of the
same heading as the product” means that materials of any heading(s) may be
used, except those of the same description as the product as given in column 2
of the list.
3.4.        When a rule in the list specifies
that a product may be manufactured from more than one material, this means that
one or more materials may be used. It does not require that all be used.
3.5.        Where a rule in the list specifies
that a product must be manufactured from a particular material, the rule does
not prevent the use also of other materials which, because of their inherent
nature, cannot satisfy this condition.
Note 4 – General
provisions concerning certain agricultural goods
4.1.        Agricultural goods falling within Chapters
6, 7, 8, 9, 10, 12 and heading 2401 which are grown or harvested in the
territory of an OCT shall be treated as originating in the territory of that
country, even if grown from seeds, bulbs, rootstock, cuttings, grafts, shoots,
buds, or other live parts of plants imported from another country.
4.2.        In cases where the content of non-originating
sugar in a given product is subject to limitations, the weight of sugars of
headings 1701 (sucrose) and 1702 (e.g., fructose, glucose, lactose, maltose,
isoglucose or invert sugar) used in the manufacture of the final product and used
in the manufacture of the non-originating products incorporated in the final
product is taken into account for the calculation of such limitations.
Note 5 - Terminology
used in respect of certain textile products
5.1.        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 which have been carded, combed or
otherwise processed, but not spun.
5.2.        The term “natural fibres” includes
horsehair of heading 0503, silk of headings 5002 and 5003, as well as
wool-fibres and fine or coarse animal hair of headings 5101 to 5105, cotton
fibres of headings 5201 to 5203, and other vegetable fibres of headings 5301 to
5305.
5.3.        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.
5.4.        The term “man-made staple fibres”
is used in the list to refer to synthetic or artificial filament tow, staple
fibres or waste, of headings 5501 to 5507.
Note 6 - Tolerances applicable to
products made of a mixture of textile materials
6.1.        Where, for a given product in the
list, reference is made to this Note, the conditions set out in column 3 shall
not be applied to any basic textile materials used in the manufacture of this
product and which, taken together, represent 10% or less of the total weight of
all the basic textile materials used. (See also Notes 6.3 and 6.4)
6.2.        However, the tolerance mentioned
in Note 6.1 may be applied only to mixed products which have been made from two
or more basic textile materials.
The following are the basic textile materials:
–              
silk;
–              
wool;
–              
coarse animal hair;
–              
fine animal hair;
–              
horsehair;
–              
cotton;
–              
paper-making materials and paper;
–              
flax;
–              
true hemp;
–              
jute and other textile bast fibres;
–              
sisal and other textile fibres of the genus
Agave;
–              
coconut, abaca, ramie and other vegetable
textile fibres;
–              
synthetic man-made filaments;
–              
artificial man-made filaments;
–              
current-conducting filaments;
–              
synthetic man-made staple fibres of
polypropylene;
–              
synthetic man-made staple fibres of polyester;
–              
synthetic man-made staple fibres of polyamide;
–              
synthetic man-made staple fibres of
polyacrylonitrile;
–              
synthetic man-made staple fibres of polyimide;
–              
synthetic man-made staple fibres of
polytetrafluoroethylene;
–              
synthetic man-made staple fibres of
poly(phenylene sulphide);
–              
synthetic man-made staple fibres of poly(vinyl
chloride);
–              
other synthetic man-made staple fibres;
–              
artificial man-made staple fibres of viscose;
–              
other artificial man-made staple fibres;
–              
yarn made of polyurethane segmented with
flexible segments of polyether, whether or not gimped;
–              
yarn made of polyurethane segmented with
flexible segments of polyester, whether or not gimped;
–              
products of heading 5605 (metallised yarn)
incorporating strip consisting of a core of aluminium foil or of a core of
plastic film whether or not coated with aluminium powder, of a width not
exceeding 5 mm, sandwiched by means of a transparent or coloured adhesive
between two layers of plastic film;
–              
other products of heading 5605;
–              
glass fibres;
–              
metal fibres.
Example:
A yarn, of heading 5205, made from cotton
fibres of heading 5203 and synthetic staple fibres of heading 5506, is a mixed
yarn. Therefore, non-originating synthetic staple fibres which do not satisfy
the origin rules may be used, provided that their total weight does not exceed
10% of the weight of the yarn.
Example:
A woollen fabric, of heading 5112, made from woollen
yarn of heading 5107 and synthetic yarn of staple fibres of heading 5509, is a
mixed fabric. Therefore, synthetic yarn which does not satisfy the origin
rules, or woollen yarn which does not satisfy the origin rules, or a
combination of the two, may be used, provided that their total weight does not
exceed 10% of the weight of the fabric.
Example:
Tufted textile fabric, of heading 5802, made
from cotton yarn of heading 5205 and cotton fabric of heading 5210, is only a
mixed product if the cotton fabric is itself a mixed fabric made from yarns
classified in two separate headings, or if the cotton yarns used are themselves
mixtures.
Example:
If the tufted textile fabric concerned had been
made from cotton yarn of heading 5205 and synthetic fabric of heading 5407,
then, obviously, the yarns used are two separate basic textile materials and
the tufted textile fabric is, accordingly, a mixed product.
6.3.        In the case of products
incorporating “yarn made of polyurethane segmented with flexible segments of polyether,
whether or not gimped”, the tolerance is 20% in respect of this yarn.
6.4.        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 a transparent or coloured adhesive
between two layers of plastic film”, the tolerance is 30% in respect of this
strip. 
Note 7 - Other tolerances applicable to
certain textile products
7.1.        Where, in the list, reference is
made to this Note, textile materials which do not satisfy the rule set out in
the list in column 3 for the made-up product concerned, may be used, provided
that they are classified in a heading other than that of the product and that
their value does not exceed 8 % of the ex-works price of the product.
7.2.        Without prejudice to Note 7.3,
materials, which are not classified within Chapters 50 to 63, may be used
freely in the manufacture of textile products, whether or not they contain
textiles.
Example:
If a rule in the list provides that, for a
particular textile item (such as trousers), yarn must be used, this does not
prevent the use of metal items, such as buttons, because buttons are not
classified within Chapters 50 to 63. For the same reason, it does not prevent
the use of slide-fasteners, even though slide-fasteners normally contain
textiles.
7.3.        Where a percentage rule applies,
the value of materials which are not classified within Chapters 50 to 63 must
be taken into account when calculating the value of the non-originating
materials incorporated.
Note 8 - Definition
of specific processes and simple operations carried out in respect of certain
products of Chapter 27
8.1.        For the purposes of headings ex
2707 and 2713, the “specific processes” are the following:
(a)         
vacuum-distillation;
(b)         
redistillation by a very thorough
fractionation-process[24];
(c)         
cracking;
(d)         
reforming;
(e)         
extraction by means of selective solvents;
(f)           
the process comprising all of the following
operations: processing with concentrated sulphuric acid, oleum or sulphuric
anhydride; neutralisation with alkaline agents; decolourisation and
purification with naturally-active earth, activated earth, activated charcoal
or bauxite;
(g)         
polymerisation;
(h)         
alkylation;
(i)           
isomerisation.
8.2.        For the purposes of headings 2710,
2711 and 2712, the “specific processes” are the following:
(a)         
vacuum-distillation;
(b)         
redistillation by a very thorough
fractionation-process[25];
(c)         
cracking;
(d)         
reforming;
(e)         
extraction by means of selective solvents;
(f)           
the process comprising all of the following
operations: processing with concentrated sulphuric acid, oleum or sulphuric
anhydride; neutralisation with alkaline agents; decolourisation and
purification with naturally-active earth, activated earth, activated charcoal
or bauxite;
(g)         
polymerisation;
(h)         
alkylation;
(i)           
 isomerisation;
(j)           
in respect of heavy oils of heading ex 2710
only, desulphurisation with hydrogen, resulting in a reduction of at least 85%
of the sulphur-content of the products processed (ASTM D 1266-59 T method);
(k)         
in respect of products of heading 2710 only,
deparaffining by a process other than filtering;
(l)           
in respect of heavy oils of heading ex 2710
only, treatment with hydrogen, at a pressure of more than 20 bar and a
temperature of more than 250°C, with the use of a catalyst, other than to
effect desulphurisation, when the hydrogen constitutes an active element in a
chemical reaction. The further treatment, with hydrogen, of lubricating oils of
heading ex 2710 (e.g. hydrofinishing or decolourisation), in order, more
especially, to improve colour or stability shall not, however, be deemed to be
a specific process;
(m)       
in respect of fuel oils of heading ex 2710 only,
atmospheric distillation, on condition that less than 30% of these products
distils, by volume, including losses, at 300 °C, by the ASTM D 86 method;
(n)         
in respect of heavy oils other than gas oils and
fuel oils of heading ex 2710 only, treatment by means of a high-frequency
electrical brush-discharge.
(o)         
in respect of crude products (other than
petroleum jelly, ozokerite, lignite wax or peat wax, paraffin wax containing by
weight less than 0.75% of oil) of heading ex 2712 only, de-oiling by fractional
crystallisation.
8.3.        For the purposes of headings ex
2707 and 2713, simple operations, such as cleaning, decanting, desalting,
water-separation, filtering, colouring, marking, obtaining a sulphur-content as
a result of mixing products with different sulphur-contents, or any combination
of these operations or like operations, do not confer origin.
Appendix II
LIST
OF PRODUCTS AND WORKING OR PROCESSING OPERATIONS WHICH CONFER ORIGINATING
STATUS
 Harmonised System heading || Description of product || Qualifying operation (Working or processing, carried out on non-originating materials, which confers originating status) 
 (1)  (2) || (3) 
 Chapter 1 || Live animals || All the animals of Chapter 1 are wholly obtained 
 Chapter 2 || Meat and edible meat offal || Manufacture in which all the meat and edible meat offal in the products of this chapter is wholly obtained 
 ex Chapter 3 || Fish and crustaceans, molluscs and other aquatic invertebrates, except for: || All fish and crustaceans, molluscs and other aquatic invertebrates are wholly obtained 
 0304 || Fish fillets and other fish meat (whether or not minced), fresh, chilled of frozen || Manufacture in which all the materials of Chapter 3 used are wholly obtained 
 0305 || Fish, dried, salted or in brine; smoked fish, whether or not cooked before or during the smoking process; flours, meals and pellets of fish, fit for human consumption || Manufacture in which all the materials of Chapter 3 used are wholly obtained 
 ex 0306 || Crustaceans, whether in shell or not, dried, salted or in brine; crustaceans, in shell, cooked by steaming or by boiling in water, whether or not chilled, frozen, dried, salted or in brine; flours, meals and pellets of crustaceans, fit for human consumption || Manufacture in which all the materials of Chapter 3 used are wholly obtained 
 ex 0307 || Molluscs, whether in shell or not, dried, salted or in brine; aquatic invertebrates other than crustaceans and molluscs, dried, salted or in brine; flours, meals and pellets of crustaceans, fit for human consumption || Manufacture in which all the materials of Chapter 3 used are wholly obtained 
 Chapter 4 || Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included; || Manufacture in which: –                          all the materials of Chapter 4 used are wholly obtained; and –                         the weight of sugar[26] used does not exceed 40% of the weight of the final product 
 ex Chapter 5 || Products of animal origin, not elsewhere specified or included , except for: || Manufacture from materials of any heading 
 ex 0511 91 || Inedible fish eggs and roes || All the eggs and roes are wholly obtained 
 Chapter 6 || Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage || Manufacture in which all the materials of Chapter 6 used are wholly obtained 
 Chapter 7 || Edible vegetables and certain roots and tubers || Manufacture in which all the materials of Chapter 7 used are wholly obtained 
 Chapter 8 || Edible fruit and nuts; peel of citrus fruits or melons || Manufacture in which: –                          all the fruit, nuts and peels of citrus fruits or melons of Chapter 8 used are wholly obtained, and –                          the weight of sugar[27] used does not exceed 40% of the weight of the final product 
 Chapter 9 || Coffee, tea, maté and spices; || Manufacture from materials of any heading 
 Chapter 10 || Cereals || Manufacture in which all the materials of Chapter 10 used are wholly obtained 
 ex Chapter 11 || Products of the milling industry; malt; starches; inulin; wheat gluten; except for: || Manufacture in which all the materials of Chapters 10 and 11, headings 0701 and 2303, and sub-heading 0710 10 used are wholly obtained 
 ex 1106 || Flour, meal and powder of the dried, shelled leguminous vegetables of heading 0713 || Drying and milling of leguminous vegetables of heading 0708 
 Chapter 12 || Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder || Manufacture from materials of any heading, except that of the product 
 Chapter 13 || Lac; gums, resins and other vegetable saps and extracts || Manufacture from materials of any heading, in which the weight of sugar [28] used does not exceed 40% of the weight of the final product 
 Chapter 14 || Vegetable plaiting materials; vegetable products not elsewhere specified or included || Manufacture from materials of any heading 
 ex Chapter 15 || Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes; except for: || Manufacture from materials of any sub-heading, except that of the product 
 1501 to 1504 || Fats from pig, poultry, bovine, sheep or goat, fish, etc || Manufacture from materials of any heading except that of the product 
 1505, 1506 and 1520 || Wool grease and fatty substances derived therefrom (including lanolin). Other animal fats and oils and their fractions, whether or not refined, but not chemically modified.. Glycerol, crude; glycerol waters and glycerol lyes. || Manufacture from materials of any heading 
 1509 and 1510 || Olive oil and its fractions || Manufacture in which all the vegetable materials used are wholly obtained 
 1516 and 1517 || Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared Margarine; edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this Chapter, other than edible fats or oils or their fractions of heading 1516 || Manufacture from materials of any heading, except that of the product 
 Chapter 16 || Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates || Manufacture: –                          from materials of any heading, except meat and edible meat offal of Chapter 2 and materials of Chapter 16 obtained from meat and edible meat offal of Chapter 2, and –                          in which all the materials of Chapter 3 and materials of Chapter 16 obtained from fish and crustaceans, molluscs and other aquatic invertebrates of Chapter 3 used are wholly obtained 
 ex Chapter 17 || Sugars and sugar confectionery; except for: || Manufacture from materials of any heading, except that of the product 
 1702 || Other sugars, including chemically pure lactose and glucose, in solid form; sugar syrups; artificial honey, whether or not mixed with natural honey; caramel || Manufacture from materials of any heading, except that of the product, in which the weight of the materials of headings 1101 to 1108, 1701 and 1703 used does not exceed 30% of the weight of the final product 
 1704 || Sugar confectionery (including white chocolate), not containing cocoa || Manufacture from materials of any heading, except that of the product, in which: –                          the individual weight of sugar[29] and of the materials of Chapter 4 used does not exceed 40% of the weight of the final product, and –                          the total combined weight of sugar[30] and the materials of Chapter 4 used does not exceed 60% of the weight of final product 
 Chapter 18 || Cocoa and cocoa preparations || Manufacture from materials of any heading, except that of the product, in which –                          the individual weight of sugar[31] and of the materials of Chapter 4 used does not exceed 40% of the weight of the final product, and –                          the total combined weight of sugar[32] and the materials of Chapter 4 used does not exceed 60% of the weight of final product 
 Chapter 19 || Preparations of cereals, flour, starch or milk; pastrycooks' products || Manufacture from materials of any heading, except that of the product, in which: –                          the weight of the materials of Chapters 2, 3 and 16 used does not exceed 20% of the weight of the final product, and –                          the weight of the materials of headings 1006 and 1101 to 1108 used does not exceed 20% of the weight of the final product, and –                          the individual weight of sugar[33] and of the materials of Chapter 4 used does not exceed 40% of the weight of the final product, and –                          the total combined weight of sugar[34] and the materials of Chapter 4 used does not exceed 60% of the weight of final product 
 ex Chapter 20 || Preparations of vegetables, fruit, nuts or other parts of plants; except for: || Manufacture from materials of any heading, except that of the product, in which the weight of sugar[35] used does not exceed 40% of the weight of the final product 
 2002 and 2003 || Tomatoes, mushrooms and truffles prepared or preserved otherwise than by vinegar of acetic acid || Manufacture in which all the materials of Chapters 7 used are wholly obtained 
 Chapter 21 || Miscellaneous edible preparations; except for: || Manufacture from materials of any heading, except that of the product, in which: –                          - the individual weight of sugar[36] and of the materials of Chapter 4 used does not exceed 40% of the weight of the final product, and –                          - the total combined weight of sugar[37] and the materials of Chapter 4 used does not exceed 60% of the weight of final product 
 Chapter 22 || Beverages, spirits and vinegar || Manufacture from materials of any heading, except that of the product and headings 2207 and 2208, in which: –                          all the materials of sub-headings 0806 10, 2009 61, 2009 69 used are wholly obtained, and 
   ||   || –                          the individual weight of sugar[38] and of the materials of Chapter 4 used does not exceed 40% of the weight of the final product, and –                          the total combined weight of sugar[39] and the materials of Chapter 4 used does not exceed 60% of the weight of final product 
 ex Chapter 23 || Residues and waste from the food industries; prepared animal fodder; except for: || Manufacture from materials of any heading, except that of the product 
 ex 2302 ex 2303 || Residues of starch manufacture || Manufacture from materials of any heading, except that of the product, in which the weight of the materials of Chapter 10 used does not exceed 20% of the weight of the final product 
 2309 || Preparations of a kind used in animal feeding || Manufacture from materials of any heading, except that of the product, in which: –                          all the materials of Chapters 2 and 3 used are wholly obtained, and –                          the weight of materials of Chapter 10 and 11 and headings 2302 and 2303 used does not exceed 20% of the weight of the final product, and –                          the individual weight of sugar[40] ) and of the materials of Chapter 4 used does not exceed 40% of the weight of the final product, and –                          the total combined weight of sugar and the materials of Chapter 4 used does not exceed 60% of the weight of final product 
 ex Chapter 24 || Tobacco and manufactured tobacco substitutes; except for: || Manufacture from materials of any heading in which the weight of materials of Chapter 24 used does not exceed 30% of the total weight of materials of Chapter 24 used 
 2401   2402 || Unmanufactured tobacco; tobacco refuse Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes || All unmanufactured tobacco and tobacco refuse of Chapter 24 is wholly obtained   Manufacture from materials of any heading, except that of the product and of heading 2403, and in which the weight of materials of heading 2401 used does not exceed 50% of the total weight of materials of heading 2401 used 
 ex Chapter 25 || Salt; sulphur; earths and stone; plastering materials, lime and cement; except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 ex 2519 || Crushed natural magnesium carbonate (magnesite), in hermetically-sealed containers, and magnesium oxide, whether or not pure, other than fused magnesia or dead-burned (sintered) magnesia || Manufacture from materials of any heading, except that of the product. However, natural magnesium carbonate (magnesite) may be used 
 Chapter 26 || Ores, slag and ash || Manufacture from materials of any heading, except that of the product 
 ex Chapter 27 || Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes, except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 ex 2707 || Oils in which the weight of the aromatic constituents exceeds that of the non-aromatic constituents, being oils similar to mineral oils obtained by distillation of high temperature coal tar, of which more than 65% by volume distils at a temperature of up to 250°C (including mixtures of petroleum spirit and benzole), for use as power or heating fuels || Operations of refining and/or one or more specific process(es)[41] or Other operations in which all the materials used are classified within a heading other than that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 50% of the ex-works price of the product 
 2710 || Petroleum oils and oils obtained from bituminous materials, other than crude; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous materials, these oils being the basic constituents of the preparations; waste oils || Operations of refining and/or one or more specific process(es) [42] or Other operations in which all the materials used are classified within a heading other than that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 50% of the ex-works price of the product 
 2711 || Petroleum gases and other gaseous hydrocarbons || Operations of refining and/or one or more specific process(es)[43] or Other operations in which all the materials used are classified within a heading other than that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 50% of the ex-works price of the product 
 2712 || Petroleum jelly; paraffin wax, microcrystalline petroleum wax, slack wax, ozokerite, lignite wax, peat wax, other mineral waxes, and similar products obtained by synthesis or by other processes, whether or not coloured || Operations of refining and/or one or more specific process(es)[44] or Other operations in which all the materials used are classified within a heading other than that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 50% of the ex-works price of the product 
 2713 || Petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous materials || Operations of refining and/or one or more specific process(es)[45] or Other operations in which all the materials used are classified within a heading other than that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 50% of the ex-works price of the product 
 ex Chapter 28 || Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes; except for: || Manufacture from materials of any heading, except that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 20% of the ex-works price of the product or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 ex Chapter 29 || Organic chemicals; except for: || Manufacture from materials of any heading, except that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 20% of the ex-works price of the product or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 ex 2905 || Metal alcoholates of alcohols of this heading and of ethanol; except for: || Manufacture from materials of any heading, including other materials of heading 2905. However, metal alcoholates of this heading may be used, provided that their total value does not exceed 20% of the ex-works price of the product or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 2905 43;  2905 44;  2905 45 || Mannitol; D-glucitol (sorbitol); Glycerol || Manufacture from materials of any sub-heading, except that of the product. However, materials of the same sub-heading as the product may be used, provided that their total value does not exceed 20% of the ex-works price of the product or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 Chapter 30 || Pharmaceutical products || Manufacture from materials of any heading 
 Chapter 31 || Fertilisers || Manufacture from materials of any heading, except that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 20% of the ex-works price of the product or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 Chapter 32 || Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks || Manufacture from materials of any heading, except that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 20% of the ex-works price of the product or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 Chapter 33 || Essential oils and resinoids; perfumery, cosmetic or toilet preparations; except for: || Manufacture from materials of any heading, except that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 20% of the ex-works price of the product or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 3302? ||   ||   
 ex Chapter 34 || Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, "dental waxes" and dental preparations with a basis of plaster, except for: || Manufacture from materials of any heading, except that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 20% of the ex-works price of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 ex 3404 || Artificial waxes and prepared waxes: – With a basis of paraffin, petroleum waxes, waxes obtained from bituminous minerals, slack wax or scale wax || Manufacture from materials of any heading 
 Chapter 35 || Albuminoidal substances; modified starches; glues; enzymes || Manufacture from materials of any heading, except that of the product, in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 Chapter 36 || Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations || Manufacture from materials of any heading, except that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 20% of the ex-works price of the product or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 Chapter 37 || Photographic or cinematographic goods || Manufacture from materials of any heading, except that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 20% of the ex-works price of the product or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 ex Chapter 38 || Miscellaneous chemical products; except for: || Manufacture from materials of any heading, except that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 20% of the ex-works price of the product or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 3824 60 || Sorbitol other than that of sub-heading 2905 44 || Manufacture from materials of any sub-heading, except that of the product and except materials of sub-heading 2905 44. However, materials of the same sub-heading as the product may be used, provided that their total value does not exceed 20% of the ex-works price of the product or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 ex Chapter 39 || Plastics and articles thereof; except for: || Manufacture from materials of any heading, except that of the product. or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 ex 3907 || - Copolymer, made from polycarbonate and acrylonitrile-butadiene-styrene copolymer (ABS) || Manufacture from materials of any heading, except that of the product. However, materials of the same heading as the product may be used, provided that their total value does not exceed 50% of the ex-works price of the product[46] or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
   || – Polyester || Manufacture from materials of any heading, except that of the product or Manufacture from polycarbonate of tetrabromo-(bisphenol A) or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 ex Chapter 40 || Rubber and articles thereof; except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 4012 || Retreaded or used pneumatic tyres of rubber; solid or cushion tyres, tyre treads and tyre flaps, of rubber: ||   
   || – Retreaded pneumatic, solid or cushion tyres, of rubber || Retreading of used tyres 
   || – Other || Manufacture from materials of any heading, except those of headings 4011 and 4012 or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 ex Chapter 41 || Raw hides and skins (other than furskins) and leather; except for: || Manufacture from materials of any heading, except that of the product   
 4101 to 4103 || Raw hides and skins of bovine (including buffalo) or equine animals (fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment dressed or further prepared), whether or not dehaired or split; raw skins of sheep or lambs (fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment dressed or further prepared), whether or not with wool on or split, other than those excluded by note 1(c) to Chapter 41; other raw hides and skins (fresh, or salted, dried, limed, pickled or otherwise preserved, but not tanned, parchment dressed or further prepared), whether or not dehaired or split, other than those excluded by note 1(b) or 1(c) to Chapter 41 || Manufacture from materials of any heading 
 4104 to 4106 || Tanned or crust hides and skins, without wool or hair on, whether or not split, but not further prepared || Re-tanning of tanned or pre-tanned hides and skins of sub-headings 4104 11, 4104 19, 4105 10, 4106 21, 4106 31 or 4106 91,   or Manufacture from materials of any heading, except that of the product 
 4107, 4112, 4113 || Leather further prepared after tanning or crusting || Manufacture from materials of any heading, except that of the product. However, materials of sub-headings 4104 41, 4104 49, 4105 30, 4106 22, 4106 32 and 4106 92 may be used only if a re-tanning operation of the tanned or crust hides and skins in the dry state takes place 
 Chapter 42 || Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk worm gut) || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 ex Chapter 43 || Furskins and artificial fur; manufactures thereof; except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 4301 || Raw furskins (including heads, tails, paws and other pieces or cuttings, suitable for furrier’s use), other than raw hides and skins of heading 4101, 4102 or 4103 || Manufacture from materials of any heading 
 ex 4302 || Tanned or dressed furskins, assembled: ||   
   || – Plates, crosses and similar forms || Bleaching or dyeing, in addition to cutting and assembly of non-assembled tanned or dressed furskins 
   || – Other || Manufacture from non-assembled, tanned or dressed furskins 
 4303 || Articles of apparel, clothing accessories and other articles of furskin || Manufacture from non-assembled tanned or dressed furskins of heading 4302 
 ex Chapter 44 || Wood and articles of wood; wood charcoal; except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 ex 4407 || Wood sawn or chipped lengthwise, sliced or peeled, of a thickness exceeding 6 mm, planed, sanded or end-jointed || Planing, sanding or end-jointing 
 ex 4408 || Sheets for veneering (including those obtained by slicing laminated wood) and for plywood, of a thickness not exceeding 6 mm, spliced, and other wood sawn lengthwise, sliced or peeled of a thickness not exceeding 6 mm, planed, sanded or end-jointed || Splicing, planing, sanding or endjointing 
 ex 4410 to ex 4413 || Beadings and mouldings, including moulded skirting and other moulded boards || Beading or moulding 
 ex 4415 || Packing cases, boxes, crates, drums and similar packings, of wood || Manufacture from boards not cut to size 
 ex 4418 || – Builders' joinery and carpentry of wood || Manufacture from materials of any heading, except that of the product. However, cellular wood panels, shingles and shakes may be used 
   || – Beadings and mouldings || Beading or moulding 
 ex 4421 || Match splints; wooden pegs or pins for footwear || Manufacture from wood of any heading, except drawn wood of heading 4409 
 Chapter 45 || Cork and articles of cork || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 Chapter 46 || Manufactures of straw, of esparto or of other plaiting materials; basketware and wickerwork || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 Chapter 47 || Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 Chapter 48 || Paper and paperboard; articles of paper pulp, of paper or of paperboard || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 Chapter 49 || Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 ex Chapter 50 || Silk; except for: || Manufacture from materials of any heading, except that of the product 
 ex 5003 || Silk waste (including cocoons unsuitable for reeling, yarn waste and garnetted stock), carded or combed || Carding or combing of silk waste 
 5004 to ex 5006 || Silk yarn and yarn spun from silk waste || Spinning of natural fibres or extrusion of man-made fibres accompanied by spinning or twisting([47]) 
 5007 || Woven fabrics of silk or of silk waste: || Spinning of natural and/or man-made staple fibres or extrusion of man-made filament yarn or twisting, in each case accompanied by weaving or Weaving accompanied by dyeing or Yarn dyeing accompanied by weaving or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product([48]) 
 ex Chapter 51 || Wool, fine or coarse animal hair; horsehair yarn and woven fabric; except for: || Manufacture from materials of any heading, except that of the product 
 5106 to 5110 || Yarn of wool, of fine or coarse animal hair or of horsehair || Spinning of natural fibres or extrusion of man-made fibres accompanied by spinning([49]) 
 5111 to 5113 || Woven fabrics of wool, of fine or coarse animal hair or of horsehair: || Spinning of natural and/or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by weaving or Weaving accompanied by dyeing or Yarn dyeing accompanied by weaving or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product([50]) 
 ex Chapter 52 || Cotton; except for: || Manufacture from materials of any heading, except that of the product 
 5204 to 5207 || Yarn and thread of cotton || Spinning of natural fibres or extrusion of man-made fibres accompanied by spinning([51]) 
 5208 to 5212 || Woven fabrics of cotton: || Spinning of natural and/or man-made staple fibres or extrusion of man-made filament yarn , in each case accompanied by weaving or Weaving accompanied by dyeing or by coating or Yarn dyeing accompanied by weaving or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product([52]) 
 ex Chapter 53 || Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn; except for: || Manufacture from materials of any heading, except that of the product 
 5306 to 5308 || Yarn of other vegetable textile fibres; paper yarn || Spinning of natural fibres or extrusion of man-made fibres accompanied by spinning([53]) 
 5309 to 5311 || Woven fabrics of other vegetable textile fibres; woven fabrics of paper yarn: || Spinning of natural and/or man-made staple fibres or extrusion of man-made filament yarn , in each case accompanied by weaving or Weaving accompanied by dyeing or by coating or Yarn dyeing accompanied by weaving or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product([54]) 
 5401 to 5406 || Yarn, monofilament and thread of man-made filaments || Extrusion of man-made fibres accompanied by spinning OR spinning of natural fibres([55]) 
 5407 and 5408 || Woven fabrics of man-made filament yarn: || Spinning of natural and/or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by weaving or Weaving accompanied by dyeing or by coating or Twisting or texturing accompanied by weaving provided that the value of the non-twisted/non-textured yarns used does not exceed 47.5% of the ex-works price of the product or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product([56]) 
 5501 to 5507 || Man-made staple fibres || Extrusion of man-made fibres 
 5508 to 5511 || Yarn and sewing thread of man-made staple fibres || Spinning of natural fibres or extrusion of man-made fibres accompanied by spinning([57]) 
 5512 to 5516 || Woven fabrics of man-made staple fibres: || Spinning of natural and/or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by weaving or Weaving accompanied by dyeing or by coating or Yarn dyeing accompanied by weaving or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product([58]) 
 Ex Chapter 56 || Wadding, felt and non-wovens; special yarns; twine, cordage, ropes and cables and articles thereof; except for: || Extrusion of man-made fibres accompanied by spinning or spinning of natural fibres or Flocking accompanied by dyeing or printing ([59]) 
 5602 || Felt, whether or not impregnated, coated, covered or laminated: ||   
   || - Needleloom felt || Extrusion of man-made fibres accompanied by fabric formation, However: –                          polypropylene filament of heading 5402, –                          polypropylene fibres of heading 5503 or 5506, or –                          polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used, provided that their total value does not exceed 40% of the ex-works price of the product or Fabric formation alone in the case of felt made from natural fibres ([60]) 
   || - Other || Extrusion of man-made fibres accompanied by fabric formation, or Fabric formation alone in the case of other felt made from natural fibres([61]) 
 5603 || Nonwovens, whether or not impregnated, coated, covered or laminated || Extrusion of man-made fibres, or use of natural fibres, accompanied by nonwoven techniques including needle punching 
 5604 || Rubber thread and cord, textile covered; textile yarn, and strip and the like of heading 5404 or 5405, impregnated, coated, covered or sheathed with rubber or plastics: ||   
   || - Rubber thread and cord, textile covered || Manufacture from rubber thread or cord, not textile covered 
   || - Other || Extrusion of man-made fibres accompanied by spinning or spinning of natural fibres ([62]) 
 5605 || Metallised yarn, whether or not gimped, being textile yarn, or strip or the like of heading 5404 or 5405, combined with metal in the form of thread, strip or powder or covered with metal || Extrusion of man-made fibres accompanied by spinning or spinning of natural and/or man-made staple fibres ([63]) 
 5606 || Gimped yarn, and strip and the like of heading 5404 or 5405, gimped (other than those of heading 5605 and gimped horsehair yarn); chenille yarn (including flock chenille yarn); loop wale-yarn || Extrusion of man-made fibres accompanied by spinning or spinning of natural and/or man-made staple fibres or Spinning accompanied with flocking or Flocking accompanied by dyeing([64]) 
 Chapter 57 || Carpets and other textile floor coverings: || Spinning of natural and/or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by weaving or Manufacture from coir yarn or sisal yarn or jute yarn or Flocking accompanied by dyeing or by printing Or Tufting accompanied by dyeing or by printing Extrusion of man-made fibres accompanied by non-woven techniques including needle punching[65] However: –                          polypropylene filament of heading 5402, –                          polypropylene fibres of heading 5503 or 5506, or –                          polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used, provided that their total value does not exceed 40% of the ex-works price of the product Jute fabric may be used as a backing 
 Ex Chapter 58 || Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery; except for: || Spinning of natural and/or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by weaving or Weaving accompanied by dyeing or flocking or coating or Flocking accompanied by dyeing or by printing or Yarn dyeing accompanied by weaving or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product([66]) 
 5805 || Hand-woven tapestries of the types Gobelins, Flanders, Aubusson, Beauvais and the like, and needle-worked tapestries (for example, petit point, cross stitch), whether or not made up || Manufacture from materials of any heading, except that of the product 
 5810 || Embroidery in the piece, in strips or in motifs || Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 5901 || Textile fabrics coated with gum or amylaceous substances, of a kind used for the outer covers of books or the like; tracing cloth; prepared painting canvas; buckram and similar stiffened textile fabrics of a kind used for hat foundations || Weaving accompanied by dyeing or by flocking or by coating or Flocking accompanied by dyeing or printing 
 5902 || Tyre cord fabric of high tenacity yarn of nylon or other polyamides, polyesters or viscose rayon: ||   
   || - Containing not more than 90% by weight of textile materials || Weaving 
   || - Other || Extrusion of man-made fibres accompanied by weaving 
 5903 || Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 5902 || Weaving accompanied by dyeing or by coating or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product 
 5904 || Linoleum, whether or not cut to shape; floor coverings consisting of a coating or covering applied on a textile backing, whether or not cut to shape || Weaving accompanied by dyeing or by coating ([67]) 
 5905 || Textile wall coverings: ||   
   || - Impregnated, coated, covered or laminated with rubber, plastics or other materials || Weaving accompanied by dyeing or by coating 
   || - Other || Spinning of natural and/or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by weaving or Weaving accompanied by dyeing or by coating or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product ([68]): 
 5906 || Rubberised textile fabrics, other than those of heading 5902: ||   
   || - Knitted or crocheted fabrics || Spinning of natural and/or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by knitting or Knitting accompanied by dyeing or by coating or Dyeing of yarn of natural fibres accompanied by knitting ([69])- 
   || - Other fabrics made of synthetic filament yarn, containing more than 90% by weight of textile materials || Extrusion of man-made fibres accompanied by weaving 
   || - Other || Weaving accompanied by dyeing or by coating or Dyeing of yarn of natural fibres accompanied by weaving 
 5907 || Textile fabrics otherwise impregnated, coated or covered; painted canvas being theatrical scenery, studio back-cloths or the like || Weaving accompanied by dyeing or by flocking or by coating or Flocking accompanied by dyeing or by printing or Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product 
 5908 || Textile wicks, woven, plaited or knitted, for lamps, stoves, lighters, candles or the like; incandescent gas mantles and tubular knitted gas mantle fabric therefor, whether or not impregnated: ||   
   || - Incandescent gas mantles, impregnated || Manufacture from tubular knitted gas-mantle fabric 
   || - Other || Manufacture from materials of any heading, except that of the product 
 5909 to 5911 || Textile articles of a kind suitable for industrial use: ||   
   || - Polishing discs or rings other than of felt of heading 5911 || Weaving 
   || - Woven fabrics, of a kind commonly used in papermaking or other technical uses, felted or not, whether or not impregnated or coated, tubular or endless with single or multiple warp and/or weft, or flat woven with multiple warp and/or weft of heading 5911 || Extrusion of man-made fibres or Spinning of natural and/or of man-made staple fibres, in each case accompanied by weaving or Weaving accompanied by dyeing or coating Only the following fibres may be used: – –- coir yarn – – yarn of polytetrafluoroethylene[70], – – yarn, multiple, of polyamide, coated impregnated or covered with a phenolic resin, – – yarn of synthetic textile fibres of aromatic polyamides, obtained by polycondensation of m-phenylenediamine and isophthalic acid, – – monofil of polytetrafluoroethylene[71], – – yarn of synthetic textile fibres of poly(p-phenylene terephthalamide), – – glass fibre yarn, coated with phenol resin and gimped with acrylic yarn[72], – – copolyester monofilaments of a polyester and a resin of terephthalic acid and 1,4-cyclohexanediethanol and isophthalic acid 
   || - Other || Extrusion of man-made filament yarn OR spinning of natural or man-made staple fibres, accompanied by weaving ([73]) or Weaving accompanied by dyeing or coating 
 Chapter 60 || Knitted or crocheted fabrics || Spinning of natural and/or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by knitting or Knitting accompanied by dyeing or by flocking or by coating or Flocking accompanied by dyeing or by printing or Dyeing of yarn of natural fibres accompanied by knitting or Twisting or texturing accompanied by knitting provided that the value of the non-twisted/non-textured yarns used does not exceed 47.5% of the ex-works price of the product 
 Chapter 61 || Articles of apparel and clothing accessories, knitted or crocheted: ||   
   || - Obtained by sewing together or otherwise assembling, two or more pieces of knitted or crocheted fabric which have been either cut to form or obtained directly to form || Knitting and making-up (including cutting) ([74])([75]) 
   || - Other || Spinning of natural and/or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by knitting (knitted to shape products) or Dyeing of yarn of natural fibres accompanied by knitting (knitted to shape products) ([76]) 
 Ex Chapter 62 || Articles of apparel and clothing accessories, not knitted or crocheted; except for: || Weaving accompanied by making-up (including cutting) or Making-up preceded by printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product ([77])([78]) 
 ex 6202, ex 6204, ex 6206, ex 6209 and ex 6211 || Women's, girls' and babies' clothing and clothing accessories for babies, embroidered || Weaving accompanied by making-up (including cutting) or Manufacture from unembroidered fabric, provided that the value of the unembroidered fabric used does not exceed 40% of the ex-works price of the product ([79]) 
 ex 6210 and ex 6216 || Fire-resistant equipment of fabric covered with foil of aluminised polyester || Weaving accompanied by making-up (including cutting) or Coating provided that the value of the uncoated fabric used does not exceed 40% of the ex-works price of the product accompanied by making-up (including cutting) ([80]) 
 ex 6212 || Brassieres, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, knitted or crocheted ||   
   || - Obtained by sewing together or otherwise assembling, two or more pieces of knitted or crocheted fabric which have been either cut to form or obtained directly to form || Knitting and making-up (including cutting) ([81])([82]) 
   || - Other || Spinning of natural and/or man-made staple fibres or extrusion of man-made filament yarn, in each case accompanied by knitting (knitted to shape products) or Dyeing of yarn of natural fibres accompanied by knitting (knitted to shape products) ([83]) 
 6213 and 6214 || Handkerchiefs, shawls, scarves, mufflers, mantillas, veils and the like: ||   
   || - Embroidered || Weaving accompanied by making-up (including cutting) or Manufacture from unembroidered fabric, provided that the value of the unembroidered fabric used does not exceed 40% of the ex-works price of the product([84]) or Making-up preceded by printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product ([85])([86]) 
   || - Other || Weaving accompanied by making-up (including cutting) or Making-up followed by printing accompanied by at least two preparatory finishing operations (such as scouring, bleaching, mercerising, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatising, impregnating, mending and burling), provided that the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product ([87])([88]) 
 6217 || Other made up clothing accessories; parts of garments or of clothing accessories, other than those of heading 6212: ||   
   || - Embroidered || Weaving accompanied by making-up (including cutting) or Manufacture from unembroidered fabric, provided that the value of the unembroidered fabric used does not exceed 40% of the ex-works price of the product ([89]) 
   || - Fire-resistant equipment of fabric covered with foil of aluminised polyester || Weaving accompanied by making-up (including cutting) or Coating provided that the value of the uncoated fabric used does not exceed 40% of the ex-works price of the product accompanied by making-up (including cutting) ([90]) 
   || - Interlinings for collars and cuffs, cut out || Manufacture from materials of any heading, except that of the product, and in which the value of all the materials used does not exceed 40% of the ex-works price of the product 
   || - Other || Weaving accompanied by making-up (including cutting) ([91]) 
 Ex Chapter 63 || Other made-up textile articles; sets; worn clothing and worn textile articles; rags; except for: || Manufacture from materials of any heading, except that of the product 
 6301 to 6304 || Blankets, travelling rugs, bed linen etc.; curtains etc.; other furnishing articles: ||   
   || - Of felt, of nonwovens || Extrusion of man-made fibres or use of natural fibres in each case accompanied by non-woven process including needle punching and making-up (including cutting) ([92]) 
   || - Other: ||   
   || --  Embroidered || Weaving or knitting accompanied by making-up (including cutting) (reference to tolerance to be added)[93] or Manufacture from unembroidered fabric, provided that the value of the unembroidered fabric used does not exceed 40% of the ex-works price of the product ([94])   
   || --  Other || Weaving or knitting accompanied by making-up (including cutting) 
 6305 || Sacks and bags, of a kind used for the packing of goods || Extrusion of man-made fibres or spinning of natural and/or man-made staple fibres accompanied by weaving or knitting and making-up (including cutting) ([95]) 
 6306 || Tarpaulins, awnings and sunblinds; tents; sails for boats, sailboards or landcraft; camping goods: ||   
   || - Of nonwovens || Extrusion of man-made fibres or natural fibres in each case accompanied by any non-woven techniques including needle punching 
   || - Other || Weaving accompanied by making-up (including cutting) ([96])([97]) or Coating provided that the value of the uncoated fabric used does not exceed 40% of the ex-works price of the product accompanied by making-up (including cutting) 
 6307 || Other made-up articles, including dress patterns || Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product 
 6308 || Sets consisting of woven fabric and yarn, whether or not with accessories, for making up into rugs, tapestries, embroidered table cloths or serviettes, or similar textile articles, put up in packings for retail sale || Each item in the set must satisfy the rule which would apply to it if it were not included in the set. However, non-originating articles may be incorporated, provided that their total value does not exceed 15% of the ex-works price of the set 
 Ex Chapter 64 || Footwear, gaiters and the like; parts of such articles; except for: || Manufacture from materials of any heading, except from assemblies of uppers affixed to inner soles or to other sole components of heading 6406 
 6406 || Parts of footwear (including uppers whether or not attached to soles other than outer soles); removable in-soles, heel cushions and similar articles; gaiters, leggings and similar articles, and parts thereof || Manufacture from materials of any heading, except that of the product 
 Chapter 65 || Headgear and parts thereof || Manufacture from materials of any heading, except that of the product 
 Chapter 66 || Umbrellas, sun umbrellas, walking-sticks, seat-sticks, whips, riding-crops, and parts thereof: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 Chapter 67 || Prepared feathers and down and articles made of feathers or of down; artificial flowers; articles of human hair || Manufacture from materials of any heading, except that of the product 
 ex Chapter 68 || Articles of stone, plaster, cement, asbestos, mica or similar materials, except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 ex 6803 || Articles of slate or of agglomerated slate || Manufacture from worked slate 
 ex 6812 || Articles of asbestos; articles of mixtures with a basis of asbestos or of mixtures with a basis of asbestos and magnesium carbonate || Manufacture from materials of any heading 
 ex 6814 || Articles of mica, including agglomerated or reconstituted mica, on a support of paper, paperboard or other materials || Manufacture from worked mica (including agglomerated or reconstituted mica) 
 Chapter 69 || Ceramic products || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 ex Chapter 70 || Glass and glassware, except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 7006 || Glass of heading 7003, 7004 or 7005,bent, edge-worked, engraved, drilled, ||   
   || – Glass-plate substrates, coated with a dielectric thin film, and of a semiconductor grade in accordance with SEMII-standards[98] || Manufacture from non-coated glass-plate substrate of heading 7006 
   || – Other || Manufacture from materials of heading 7001 
 7010 || Carboys, bottles, flasks, jars, pots, phials, ampoules and other containers, of glass, of a kind used for the conveyance or packing of goods; preserving jars of glass; stoppers, lids and other closures, of glass || Manufacture from materials of any heading, except that of the product or Cutting of glassware, provided that the total value of the uncut glassware used does not exceed 50% of the ex-works price of the product 
 7013 || Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes (other than that of heading 7010 or 7018) || Manufacture from materials of any heading, except that of the product or Cutting of glassware, provided that the total value of the uncut glassware used does not exceed 50% of the ex-works price of the product or Hand-decoration (except silk-screen printing) of hand-blown glassware, provided that the total value of the hand-blown glassware used does not exceed 50% of the ex-works price of the product 
 ex Chapter 71 || Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin, except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 7106, 7108 and 7110 || Precious metals: ||   
   || - Unwrought || Manufacture from materials of any heading, except those of headings 7106, 7108 and 7110 or Electrolytic, thermal or chemical separation of precious metals of heading 7106, 7108 or 7110 or Fusion and/or alloying of precious metals of heading 7106, 7108 or 7110 with each other or with base metals 
   || - Semi-manufactured or in powder form || Manufacture from unwrought precious metals 
 ex 7107, ex 7109 and ex 7111 || Metals clad with precious metals, semi-manufactured || Manufacture from metals clad with precious metals, unwrought 
 7115 || Other articles of precious metal or of metal clad with precious metal || Manufacture from materials of any heading, except that of the product 
 7117 || Imitation jewellery || Manufacture from materials of any heading, except that of the product or Manufacture from base metal parts, not plated or covered with precious metals, provided that the value of all the materials used does not exceed 50% of the ex-works price of the product 
 ex Chapter 72 || Iron and steel; except for: || Manufacture from materials of any heading, except that of the product 
 7207 || Semi-finished products of iron or non-alloy steel || Manufacture from materials of heading 7201, 7202, 7203, 7204, 7205 or 7206 
 7208 to 7216 || Flat-rolled products, bars and rods, angles, shapes and sections of iron or non-alloy steel || Manufacture from ingots or other primary forms or semi-finished materials of heading 7206 or 7207 
 7217 || Wire of iron or non-alloy steel || Manufacture from semi-finished materials of heading 7207 
 7218 91 and 7218 99 || Semi-finished products || Manufacture from materials of heading 7201, 7202, 7203, 7204, 7205 or sub-heading 7218 10 
 7219 to 7222 || Flat-rolled products, bars and rods, angles, shapes and sections of stainless steel || Manufacture from ingots or other primary forms or semi-finished materials of heading 7218 
 7223 || Wire of stainless steel || Manufacture from semi-finished materials of heading 7218 
 7224 90 || Semi-finished products || Manufacture from materials of heading 7201, 7202, 7203, 7204, 7205 or sub-heading 7224 10 
 7225 to 7228 || Flat-rolled products, hot-rolled bars and rods, in irregularly wound coils; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or non-alloy steel || Manufacture from ingots or other primary forms or semi-finished materials of heading 7206, 7207, 7218 or 7224 
 7229 || Wire of other alloy steel || Manufacture from semi-finished materials of heading 7224 
 ex Chapter 73 || Articles of iron or steel; except for: || Manufacture from materials of any heading, except that of the product 
 ex 7301 || Sheet piling || Manufacture from materials of heading 7207 
 7302 || Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (cross-ties), fish-plates, chairs, chair wedges, sole pates (base plates), rail clips, bedplates, ties and other material specialised for jointing or fixing rails || Manufacture from materials of heading 7206 
 7304, 7305 and 7306 || Tubes, pipes and hollow profiles, of iron (other than cast iron) or steel || Manufacture from materials of heading 7206, 7207, 7208, 7209, 7210, 7211, 7212, 7218, 7219, 7220 or 7224 
 ex 7307 || Tube or pipe fittings of stainless steel || Turning, drilling, reaming, threading, deburring and sandblasting of forged blanks, provided t hat the total value of the forged blanks used does not exceed 35 % of the ex-works price of the product 
 7308 || Structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge-sections, lock-gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel || Manufacture from materials of any heading, except that of the product. However, welded angles, shapes and sections of heading 7301 may not be used 
 ex 7315 || Skid chain || Manufacture in which the value of all the materials of heading 7315 used does not exceed 50% of the ex-works price of the product 
 ex Chapter 74 || Copper and articles thereof; except for: || Manufacture from materials of any heading, except that of the product 
 7403 || Refined copper and copper alloys, unwrought || Manufacture from materials of any heading 
 Chapter 75 || Nickel and articles thereof || Manufacture from materials of any heading, except that of the product 
 ex Chapter 76 || Aluminium and articles thereof; except for: || Manufacture from materials of any heading, except that of the product 
 7601 || Unwrought aluminium || Manufacture from materials of any heading 
 7607 || Aluminium foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0,2 mm || Manufacture from materials of any heading, except that of the product and heading 7606 
 Chapter 77 || Reserved for possible future use in the Harmonised System ||   
 ex Chapter 78 || Lead and articles thereof, except for: || Manufacture from materials of any heading, except that of the product 
 7801 || Unwrought lead: ||   
   || - Refined lead || Manufacture from materials of any heading 
   || - Other || Manufacture from materials of any heading, except that of the product. However, waste and scrap of heading 7802 may not be used 
 Chapter 79 || Zinc and articles thereof: || Manufacture from materials of any heading, except that of the product 
 Chapter 80 || Tin and articles thereof || Manufacture from materials of any heading, except that of the product 
 Chapter 81 || Other base metals; cermets; articles thereof || Manufacture from materials of any heading 
 ex Chapter 82 || Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal; except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 8206 || Tools of two or more of the headings 8202 to 8205, put up in sets for retail sale || Manufacture from materials of any heading, except those of headings 8202 to 8205. However, tools of headings 8202 to 8205 may be incorporated into the set, provided that their total value does not exceed 15% of the ex-works price of the set 
 8211 || Knives with cutting blades, serrated or not (including pruning knives), other than knives of heading 8208 , and blades therefor || Manufacture from materials of any heading, except that of the product. However, knife blades and handles of base metal may be used 
 8214 || Other articles of cutlery (for example; hair clippers, butchers' or kitchen cleavers, choppers and mincing knives, paper knives); manicure or pedicure sets and instruments (including nail files) || Manufacture from materials of any heading, except that of the product. However, handles of base metal may be used 
 8215 || Spoons, forks, ladles, skimmers, cake-servers, fish-knives, butter-knives, sugar tongs and similar kitchen or tableware || Manufacture from materials of any heading, except that of the product. However, handles of base metal may be used   
 ex Chapter 83 || Miscellaneous articles of base metal; except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 ex 8302 || Other mountings, fittings and similar articles suitable for buildings, and automatic door closers || Manufacture from materials of any heading, except that of the product. However, other materials of heading 8302 may be used, provided that their total value does not exceed 20% of the ex-works price of the product 
 ex 8306 || Statuettes and other ornaments, of base metal || Manufacture from materials of any heading, except that of the product. However, other materials of heading 8306 may be used, provided that their total value does not exceed 30% of the ex-works price of the product 
 ex Chapter 84 || Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof; except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 8401 || Nuclear reactors; fuel elements (cartridges), non-irradiated, for nuclear reactors; machinery and apparatus for isotopic separation || Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 8407 || Spark-ignition reciprocating or rotary internal combustion piston engines || Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8408 || Compression-ignition internal combustion piston engines (diesel or semi-diesel engines || Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8427 || Fork-lift trucks; other works trucks fitted with lifting or handling equipment || Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 8482 || Ball or roller bearings || Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 ex Chapter 85 || Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles; except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 8501, 8502 || Electric motors and generators; Electric generating sets and rotary converters || Manufacture from materials of any heading, except that of the product and of heading 8503 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8513 || Portable electric lamps designed to function by their own source of energy (for example, dry batteries, accumulators, magnetos), other than lighting equipment of heading 8512 || Manufacture from materials of any heading, except that of the product. or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8519 || Sound recording and sound reproducing apparatus   || Manufacture from materials of any heading, except that of the product and of heading 8522 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8521 || Video recording or reproducing apparatus, whether or not incorporating a video tuner || Manufacture from materials of any heading, except that of the product and of heading 8522 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8523 || Prepared unrecorded media for sound recording or similar recording of other phenomena, other than products of Chapter 37 || Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8525 || Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and other video camera recorders || Manufacture from materials of any heading, except that of the product and of heading 8529 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8526 || Radar apparatus, radio navigational aid apparatus and radio remote control apparatus || Manufacture from materials of any heading, except that of the product and of heading 8529 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8527 || Reception apparatus for radio-broadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock || Manufacture from materials of any heading, except that of the product and of heading 8529 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8528 || Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus || Manufacture from materials of any heading, except that of the product and of heading 8529 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8535 to 8537 || Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits; connectors for optical fibres, optical fibre bundles or cables; boards, panels, consoles, desks, cabinets and other bases, for electric control or the distribution of electricity || Manufacture from materials of any heading, except that of the product and of heading 8538 or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8540 11 and 8540 12 || Cathode ray television picture tubes, including video monitor cathode ray tubes || Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8542 31 to 8542 33 and 8542 39 || Monolithic integrated circuits || Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product or The operation of diffusion, in which integrated circuits are formed on a semi-conductor substrate by the selective introduction of an appropriate dopant, whether or not assembled and/or tested in a non-party 
 8544 || Insulated (including enamelled or anodised) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors || Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8545 || Carbon electrodes, carbon brushes, lamp carbons, battery carbons and other articles of graphite or other carbon, with or without metal, of a kind used for electrical purposes || Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 8546 || Electrical insulators of any material ||   Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8547 || Insulating fittings for electrical machines, appliances or equipment, being fittings wholly of insulating materials apart from any minor components of metal (for example, threaded sockets) incorporated during moulding solely for purposes of assembly, other than insulators of heading 8546; electrical conduit tubing and joints therefore, of base metal lined with insulating material || Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8548 || Waste and scrap of primary cells, primary batteries and electric accumulators; spent primary cells, spent primary batteries and spent electric accumulators; electrical parts of machinery or apparatus, not specified or included elsewhere in this Chapter || Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 Chapter 86 || Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds: || Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 ex Chapter 87 || Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof; except for: || Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 8711 || Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 ex Chapter 88 || Aircraft, spacecraft, and parts thereof, except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 ex 8804 || Rotochutes || Manufacture from materials of any heading, including other materials of heading 8804 or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 Chapter 89 || Ships, boats and floating structures || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 ex Chapter 90 || Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof, except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 9002 || Lenses, prisms, mirrors and other optical elements, of any material, mounted, being parts of or fittings for instruments or apparatus, other than such elements of glass not optically worked || Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 9033 || Parts and accessories (not specified or included elsewhere in this Chapter) for machines, appliances, instruments or apparatus of Chapter 90 || Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 Chapter 91 || Clocks and watches and parts thereof || Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 Chapter 92 || Musical instruments; parts and accessories of such articles || Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 Chapter 93 || Arms and ammunition; parts and accessories thereof || Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 
 Chapter 94 || Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 ex Chapter 95 || Toys, games and sports requisites; parts and accessories thereof, except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 ex 9506 || Golf clubs and parts thereof || Manufacture from materials of any heading, except that of the product. However, roughly-shaped blocks for making golf-club heads may be used 
 ex Chapter 96 || Miscellaneous manufactured articles, except for: || Manufacture from materials of any heading, except that of the product or Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 9601 and 9602 || Worked ivory, bone, tortoiseshell, horn, antlers, coral, mother-of-pearl and other animal carving material, and articles of these materials (including articles obtained by moulding. Worked vegetable or mineral carving material and articles of these materials; moulded or carved articles of wax, of stearin, of natural gums or natural resins or of modelling pastes, and other moulded or carved articles, not elsewhere specified or included; worked, unhardened gelatine (except gelatine of heading 3503) and articles of unhardened gelatine || Manufacture from materials of any heading 
 9603 || Brooms, brushes (including brushes constituting parts of machines, appliances or vehicles), hand-operated mechanical floor sweepers, not motorized, mops and feather dusters; prepared knots and tufts for broom or brush making; paint pads and rollers, squeegees (other than roller squeegees) || Manufacture in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 9605 || Travel sets for personal toilet, sewing or shoe or clothes cleaning || Each item in the set must satisfy the rule which would apply to it if it were not included in the set. However, non-originating articles may be incorporated, provided that their total value does not exceed 15% of the ex-works price of the set 
 9606 || Buttons, press-fasteners, snap-fasteners and press-studs, button moulds and other parts of these articles; button blanks || Manufacture: - from materials of any heading, except that of the product, and - in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 9608 || Ball-point pens; felt-tipped and other porous-tipped pens and markers; fountain pens, stylograph pens and other pens; duplicating stylos; propelling or sliding pencils; pen-holders, pencilholders and similar holders; parts (including caps and clips) of the foregoing articles, other than those of heading 9609 || Manufacture from materials of any heading, except that of the product. However, nibs or nib-points of the same heading as the product may be used 
 9612 || Typewriter or similar ribbons, inked or otherwise prepared for giving impressions, whether or not on spools or in cartridges; ink-pads, whether or not inked, with or without boxes || Manufacture: - from materials of any heading, except that of the product, and - in which the value of all the materials used does not exceed 70% of the ex-works price of the product 
 9613 20 || Pocket lighters, gas fuelled, refillable || Manufacture in which the total value of the materials of heading 9613 used does not exceed 30% of the ex-works price of the product 
 9614 || Smoking pipes (including pipe bowls) and cigar or cigarette holders, and parts thereof || Manufacture from materials of any heading 
 Chapter 97 || Works of art, collectors' pieces and antiques || Manufacture from materials of any heading, except that of the product 
Appendix III
Form
for movement certificate EUR.1
1.           Movement certificates
EUR.1 shall be made out on the form of which a specimen appears in this
Appendix. This form shall be printed in one or more of the languages in which
this Decision is drawn up. Certificates shall be made out in one of these
languages and in accordance with the provisions of the domestic law of the
exporting State if they are handwritten, they shall be completed in ink and in
capital letters.
2.           Each certificate shall
measure 210 x 297mm, a tolerance of up to plus 8mm or minus 5mm in the length
may be allowed. The paper used must be white, sized for writing, not containing
mechanical pulp and weighing not less than 25g/m2. It shall have a printed
green guilloche pattern background making any falsification by mechanical or
chemical means apparent to the eye.
3.           The exporting States may
reserve the right to print the certificates themselves or may have them printed
by approved printers. In the latter case each certificate must include a
reference to such approval. Each certificate must bear the name and address of
the printer or a mark by which the printer can be identified. It shall also
bear a serial number, either printed or not, by which it can be identified.
(1) If goods are not packed, indicate number of
articles or state "In bulk" as appropriate
(2) Complete only where the regulations of the
exporting country or territory require
NOTES
1.             Certificates must not contain erasures
or words written over one another. Any alterations must be made by deleting the
incorrect particulars and adding any necessary corrections. Any such alteration
must be initialled by the person who completed the certificate and endorsed by
the customs authorities of the issuing country or territory.
2.             No spaces must be left between the items
entered on the certificate and each item must be preceded by an item number. A
horizontal line must be drawn immediately below the last item. Any unused space
must be struck through in such a manner as to make any later additions
impossible.
3.             Goods must be described in accordance
with commercial practice and with sufficient detail to enable them to be
identified.
Appendix IV
Application
for a movement certificate EUR.1
(1) If goods are not packed, indicate number of
articles or state 'in bulk' as appropriate.
Appendix V
Declaration
by the exporter
(1) For example, import documents, movement certificates,
manufacturer's declarations, etc. referring to the products used in manufacture
or to the goods re-exported in the same state.
APPENDIX VI
INVOICE
DECLARATION
The invoice declaration, the text of which is given
below, must be made out in accordance with the footnotes. However, the
footnotes do not have to be reproduced.
Spanish version 
El exportador de los productos incluidos en el presente documento
(autorización aduanera n° .. …(1).) declara que, salvo indicación en
sentido contrario, estos productos gozan de un origen preferencial . …(2).
Czech version
Vývozce výrobků uvedených v tomto dokumentu (číslo povolení …(1))
prohlašuje, že kromě zřetelně označených, mají tyto výrobky preferenční původ v
…(2).
Danish version 
Eksportøren af varer, der er omfattet af nærværende dokument,
(toldmyndighedernes tilladelse nr. ...(1)), erklærer, at varerne,
medmindre andet tydeligt er angivet, har præferenceoprindelse i ...(2).
German version 
Der Ausführer (Ermächtigter Ausführer; Bewilligungs-Nr. ...(1))
der Waren, auf die sich dieses Handelspapier bezieht, erklärt, dass diese
Waren, soweit nicht anderes angegeben, präferenzbegünstigte ...(2)
Ursprungswaren sind.
Estonian version
Käesoleva dokumendiga
hõlmatud toodete eksportija (tolliameti kinnitus nr. ...(1))
deklareerib, et need tooted on ...(2) sooduspäritoluga, välja
arvatud juhul kui on selgelt näidatud teisiti.
Greek version 
Ο εξαγωγέας των
προϊόντων που καλύπτονται από το παρόν έγγραφο (άδεια τελωνείου υπ' αριθ. ...(1))
δηλώνει ότι, εκτός εάν δηλώνεται σαφώς άλλως, τα προϊόντα αυτά είναι
προτιμησιακής καταγωγής ...(2).
English version
The exporter of the products covered by this document
(customs authorization No ...(1)) declares that, except where
otherwise clearly indicated, these products are of ...(2)
preferential origin.
French version
L'exportateur des produits couverts par le
présent document (autorisation douanière n° ...(1)) déclare que,
sauf indication claire du contraire, ces produits ont l'origine préférentielle
... (2)).
Italian version
L'esportatore delle merci contemplate nel presente documento (autorizzazione
doganale n. ... (1)) dichiara che,
salvo indicazione contraria, le merci sono di origine preferenziale .... (2)).
Latvian version
Eksportētājs produktiem, kuri ietverti šajā dokumentā
(muitas pilnvara Nr. …(1)), deklarē, ka, iznemot tur, kur ir citādi
skaidri noteikts, šiem produktiem ir priekšrocību izcelsme no …(2).
Lithuanian version
Šiame dokumente išvardintų prekių eksportuotojas (muitinès
liudijimo Nr …(1)) deklaruoja, kad, jeigu kitaip nenurodyta, tai yra
…(2) preferencinès kilmés prekés.
Hungarian version
A jelen okmányban szereplő áruk exportőre (vámfelhatalmazási szám: …(1))
kijelentem, hogy eltérő jelzés hianyában az áruk kedvezményes …(2)
származásúak.
Maltese version
L-esportatur tal-prodotti koperti b’dan id-dokument (awtorizzazzjoni
tad-dwana nru. …(1)) jiddikjara li, ħlief fejn indikat b’mod ċar li
mhux hekk, dawn il-prodotti huma ta’ oriġini preferenzjali …(2).
Dutch version
De exporteur van de goederen waarop dit document van toepassing is
(douanevergunning nr. ...(1)), verklaart dat, behoudens
uitdrukkelijke andersluidende vermelding, deze goederen van preferentiële ...
oorsprong zijn (2).
Polish version
Eksporter produktów objętych tym dokumentem (upoważnienie władz celnych
nr …(1)) deklaruje, że z wyjątkiem gdzie jest to wyraźnie określone,
produkty te mają …(2) preferencyjne pochodzenie.
Portuguese version
O abaixo assinado, exportador dos produtos cobertos pelo presente
documento (autorização aduaneira n°. ...(1)), declara que, salvo
expressamente indicado em contrário, estes produtos são de origem preferencial
...(2).
Slovenian version
Izvoznik blaga, zajetega s tem dokumentom
(pooblastilo carinskih organov št …(1)) izjavlja, da, razen če ni
drugače jasno navedeno, ima to blago preferencialno …(2) poreklo.
Slovak version
Vývozca výrobkov uvedených v tomto dokumente (číslo povolenia …(1))
vyhlasuje, že okrem zreteľne označených, majú tieto výrobky preferenčný pôvod v
…(2).
Finnish version
Tässä asiakirjassa mainittujen tuotteiden viejä (tullin lupa n:o ...(1))
ilmoittaa, että nämä tuotteet ovat, ellei toisin ole selvästi merkitty,
etuuskohteluun oikeutettuja ... alkuperätuotteita (2).
Swedish version
Exportören av de varor som omfattas av detta dokument (tullmyndighetens
tillstånd nr. ...(1)) försäkrar att dessa varor, om inte annat
tydligt markerats, har förmånsberättigande ... ursprung (2).
Bulgarian version
Износителят на продуктите, обхванати от този документ (митническо разрешение № … (1))
декларира, че освен кьдето е отбелязано друго, тези продукти са с … преференциален произход (2).
Romanian version
Exportatorul
produselor ce fac ojiectul acestui document (autorizaţia vamalâ nr. …(1))
declará cá, exceptând cazul în care în mod expres este indicat altfel, aceste
produse sunt de origine preferenţialā …(2).
1 When the invoice declaration is made out by an approved exporter,
the authorisation number of the approved exporter must be entered in this
space. When the invoice declaration is not made out by an approved exporter,
the words in brackets shall be omitted or the space left blank.
2 Origin of products to be indicated. When the invoice declaration
relates in whole or in part, to products originating in Ceuta and Melilla, the
exporter must clearly indicate them in the document on which the declaration is
made out by means of the symbol "CM".
3 These indications may be omitted if the information is contained
on the document itself.
4 In cases where the exporter is not required to sign, the exemption
of signature also implies the exemption of the name of the signatory.
APPENDIX VII
SUPPLIER'S DECLARATION FOR PRODUCTS HAVING
PREFERENTIAL ORIGIN STATUS
(1)            - If only some of the goods
listed on the invoice are concerned they should be clearly indicated or marked
and this marking entered on the declaration as
follows:"............................ listed on this invoice and marked
....................were produced ..............................."
- If a document other than an invoice or an
annex to the invoice is used (see Article 32(3)), the name of the document
concerned shall be mentioned instead of the word "invoice"
(2)            The European Union, Member
State, EPA country or OCT. Where an EPA country or an OCT is given, a reference
must also be made to the European Union customs office holding any EUR.1 (s)
concerned, giving the No of the certificate(s) concerned and, if possible, the
relevant customs entry No involved.
(3)            Place and date
(4)            Name and function in company
(5)            Signature
APPENDIX VIII
SUPPLIER'S DECLARATION FOR PRODUCTS NOT
HAVING PREFERENTIAL ORIGINAL STATUS

Note
The above mentioned
text, suitably completed in conformity with the footnotes below, constitutes a
supplier's declaration. The footnotes do not have to be reproduced.

(1)            -
If only some of the goods listed on the invoice are concerned they should be
clearly indicated or marked and this marking entered on the declaration as
follows:"............................ listed on this invoice and marked …....................
were produced ..............................."
                - If a document other than an invoice
or an annex to the invoice is used (see Article 32(3)), the name of the
document concerned shall be mentioned instead of the word "invoice"
(2)            The European Union, Member
State, APE country or OCT.
(3)            Description is to be given in
all cases. The description must be adequate and should be sufficiently detailed
to allow the tariff classification of the goods concerned to be determined.
(4)            Customs values to be given
only if required
(5)            Country of origin to be given
only if required. The origin to be given must be a preferential origin, all
other origins to be given as "third country".
(6)            "and have undergone the
following processing in [the European Union] [Member State] [APE country] [OCT]
[] ................................., to be added with a description of the
processing carried out if this information is required.
(7)            Place and date
(8)            Name and function in company
(9)            Signature
APPENDIX IX
Information Certificate
1.             The
form of information certificate given in this Annex shall be used and be
printed in one or more of the official languages in which the Agreement is
drawn up and in accordance with the provisions of the domestic law of the
exporting State. Information certificates shall be completed in one of those
languages; if they are handwritten, they shall be completed in ink in capital
letters. They shall bear a serial number, whether or not printed, by which they
can be identified.
2.             The
information certificate shall measure 210 x 297mm, a tolerance of up to plus
8mm or minus 5mm in the length may be allowed. The paper must be white, sized
for writing, not containing mechanical pulp and weighing not less than 25g/m2.
3.             The
national administrators may reserve the right to print the forms themselves or
may have them printed by printers approved by them. In the latter case, each
form must include a reference to such approval. The forms shall bear the name
and address of the printer or a mark by which the printer can be identified.
EUROPEAN UNION            
(1) (2) (3) (4) (5) See footnotes overleaf.
                                                                                          
APPENDIX X
Form for application for a
derogation
1.           Commercial
description of the finished product
1.1 Customs
classification (H.S. code)
2.           Commercial
description of non-originating materials
2.1 Customs
classification (H. S. code)
3.           Anticipated
annual quantity of exports to the Union (expressed in weight, n° of articles,
meters or other unit)
4.           Value
of finished products
5.           Value
of the non-originating materials  
6.           Origin
of non-originating materials
7.           Reasons
why the rule of origin for the finished product cannot be fulfilled
8.           Duration
requested for derogation
 From dd/mm/yyyy to dd/mm/yyyy     
9.           Possible
developments to overcome the need for a derogation
10.         Information
about the company
 Capital structure of the firm concerned/Amount of investments made or foreseen/Staff employed or expected to be employed       
APPENDIX XI
APPLICATION TO BECOME A REGISTERED EXPORTER

 1. Exporter's name, full address and country (Non Confidential)       
 2. Contact details including telephone and fax number as well as e-mail address where available (Confidential)       
 3. Description of your activities, specifying whether your main activity is producing or trading (Non Confidential) and, where applicable, industrial process (Confidential).           
 4. Indicative description of goods which qualify for preferential treatment, including indicative list of Harmonised System four-digit headings (or chapters where goods traded fall within more than twenty Harmonised System headings).     
 5. Undertaking by exporter   The undersigned hereby declares that the above details are correct and: –                          certifies not to have had a previous registration withdrawn and, should this be the case, certifies to have remedied the situation which led to such withdrawal; –                          undertakes to make out statements on origin only for goods which qualify for preferential treatment and comply with the origin rules specified for those goods in this Annex; –                          undertakes to maintain appropriate commercial accounting records for production / supply of goods qualifying for preferential treatment and to keep them for at least three years from the date of making out of the statement on origin; –                          undertakes to accept any control on the accuracy of his statements on origin, including verification of accounting records and visits to his premises by the Commission or Member States' authorities; –                          undertakes to request his removal from the record of registered exporters should he no longer meet the conditions for exporting any goods under this Decision or no longer intend to export such goods.       ____________________________________________________   Place, date and signature of authorised signatory; designation and/or title       
 6. Prior specific and informed consent of exporter to the publication of his/her personal data on the internet   The undersigned is hereby informed that the information supplied may be stored on a database of the Commission and that the particulars may be disclosed to the public via the internet, with the exception of the information which is marked in this application as confidential. He accepts the publication and disclosure of this information via the internet. The undersigned may withdraw his consent to the publication of this information via the internet by sending [electronic mail, fax, written correspondence] to the following address:   ____________________________________________________   Place, date and signature of authorised signatory; designation and/or title   
 7. Box for official use by governmental authority   The applicant is registered under the following number:   Registered Number: ______________________________   Date of registration _______________________________   Period of validity from_____________________________       Signature and stamp_______________________________     Important remark to the attention of the applicant: Please note that all data marked "non confidential" will be included in a database accessible to the public; data marked "confidential" will be accessible to your competent governmental authorities and competent authorities of the Union and its Member States   
APPENDIX XII
STATEMENT ON ORIGIN 
To be made out on any commercial documents
showing the name and full address of the exporter and consignee as well as a
description of the goods and the date of issue (1)
French version
L'exportateur (Numéro d’exportateur
enregistré – excepté lorsque la valeur des produits originaires contenus dans
l’envoi est inférieure à EUR 10.000 (2)) des produits couverts par le présent
document déclare que, sauf indication claire du contraire, ces produits ont
l'origine préférentielle . . . (3) au sens des règles d'origine de la Décision
d'association des pays et territoires d'outre-mer et que le critère d’origine
satisfait est … …(4)
English version
The exporter (Number of Registered Exporter
– unless the value of the consigned originating products does not exceed EUR
10,000 (2)) of the products covered by this document declares that, except
where otherwise clearly indicated, these products are of . . . preferential
origin (3) according to rules of origin of the Decision on the association of
the overseas countries and territories and that the origin criterion met is …
…(4)
__________________________________
(1)          Where the statement on origin
replaces another statement in accordance with Article 51, this shall be
indicated and the date of issue of the original statement shall also always be
mentioned.
(2)          Where the statement on origin
replaces another statement, the subsequent holder of the goods establishing
such a statement shall indicate his name and full address followed by the
mention ‘acting on the basis of the statement on origin made out by [name and
full address of the exporter in the OCT], registered under the following number
[Number of Registered Exporter of the exporter in the OCT]’.
(3)          Country of origin of products to
be indicated. When the statement on origin relates, in whole or in part, to
products originating in Ceuta and Melilla within the meaning of Article 67, the
exporter must clearly indicate them in the document on which the statement is
made out by means of the symbol "CM".
(4)          Products wholly obtained: enter
the letter “P”; Products sufficiently worked or processed: enter the letter “W”
followed by the Harmonized Commodity Description and coding System (Harmonised
System) heading at the four-digit level of the exported product (example “W”
9618); where appropriate, the above mention shall be replaced with one of the
following indications: ‘EU cumulation’, ‘OCT cumulation’, 'cumulation with EPA
country' ‘extended cumulation with country x’ or ‘Cumul UE’, ‘cumul OCT’,
'cumul avec pays APE', ‘cumul étendu avec le pays x’.
APPENDIX XIII
PRODUCTS EXCLUDED FROM CUMULATION
PROVISIONS REFERRED TO IN ARTICLE 8 UNTIL 1 OCTOBER 2015
 HS/CN-Code || Description 
 1701 || Cane or beet sugar and chemically pure sucrose, in solid form. 
 1702 || Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel. 
 Ex 1704 90 corresponding to 1704 90 99 || Sugar confectionery, not containing cocoa (excl. chewing gum; liquorice extract containing more than 10% by weight of sucrose but not containing other added substances; white chocolate; pastes, including marzipan in immediate packings of a net content of 1 kg or more; throat pastilles and cough drops; sugar-coated (panned) goods; gum confectionery and jelly confectionery, including fruit pastes in the form of sugar confectionery; boiled sweets; toffees; caramels and similar sweet; compressed tablets) 
 Ex 1806 10 corresponding to 1806 10 30 || Cocoa powder, containing 65% or more but less than 80% by weight of sucrose (inlcluding invert sugar expressed as sucrose) or isoglucose expressed as sucrose 
 Ex 1806 10 corresponding to 1806 10 90 || Cocoa powder containing 80 % or more by weight of sucrose (including invert sugar expressed as sucrose) or isoglucose expressed as sucrose 
 Ex 1806 20 corresponding to 1806 20 95 || Food preparations containing cocoa in blocks, slabs or bars weighing more than 2 kg or in liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg (excl. cocoa powder, preparations containing 18% or more by weight of cocoa butter or containing a combined weight of 25% or more of cocoa butter and milkfat; chocolate milk crumb; chocolate flavour coating; chocolate and chocolate products; sugar confectionery and substitutes thereof made from sugar substitution products, containing cocoa; spreads containing cocoa; preparations containing cocoa for making beverages) 
 Ex 1901 90 corresponding to 1901 90 99 || Food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 40% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included, food preparations of goods of headings 0401 to 0404, not containing cocoa or containing less than 5% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included (excl. food preparations containing nor or less than 1.5% milkfat, 5% sucrose (including invert sugar) or isoglucose, 5% glucose or starch; food preparations in powder form of goods of headings 0401 to 0404; preparations for infant use, put up for retail sale; mixes and doughs for the preparation of bakers' wares of heading 1905) 
 Ex 2101 12 corresponding to 2101 12 98 || Products with a basis of coffee (excl. extracts, essences and concentrates of coffee and preparations with a basis of these extracts, essences or concentrates) 
 Ex 2101 20 corresponding to 2101 20 98 || Products with a basis of tea or maté (excl. extracts, essences and concentrates of tea or maté and preparations with a basis of these extracts, essences or concentrates) 
 Ex 2106 90 corresponding to 2106 90 59 || Flavoured or coloured sugar syrups (excl. isoglucose syrups, lactose syrup, glucose syrup and maltodextrine syrup) 
 Ex 2106 90 corresponding to 2106 90 98 || Food preparations not elsewhere specified or included (excl. protein concentrates and textured protein substances; compound alcoholic preparations, other than those based on odoriferous substance, of a kind used for the manufacture of beverages; flavoured or coloured sugar syrups; preparations containing no less than 1.5% milkfat; 5% sucrose or isoglucose, 5% glucose or starch) 
 Ex3302 10 corresponding to 3302 10 29 || Preparations based on odoriferous substances of a kind used as raw materials in the drinks industries containing all flavouring agents characterising a beverage with an actual alcoholic strength by volume not exceeding 0.5% (excl. preparations containing no less than 1.5% milkfat, 5% sucrose or isoglucose, 5 glucose or starch) 
ANNEX VII
Temporary Withdrawal of Preferences
Article 1
Principles concerning the withdrawal of preferences
1.           The preferential
arrangements provided for under Article 41 of this Decision may be withdrawn
temporarily, in respect of all or of certain products originating in an OCT, in
cases of:
(a)         
fraud;
(b)         
irregularities or systematic failure to comply
with or to ensure compliance with the rules concerning the origin of the
products and with the procedures related thereto;
(c)         
or failure to provide the administrative
cooperation referred to in paragraph 2 and Title V of Annex VI as required for
the implementation and policing of the arrangements referred to in Articles 41
to 48 of this Decision.
2.           The administrative
cooperation referred to in paragraph 1 requires, inter alia, that an OCT: 
(a)         
communicates to the Commission and updates the
information necessary for the implementation of the rules of origin and the
policing thereof;
(b)         
assist the Union by carrying out, at the request
of the customs authorities of the Member States, subsequent verification of the
origin of the goods, and communicate its results in time;
(c)         
carry out or arrange for appropriate inquiries
to identify and prevent contravention of the rules of origin;
(d)         
assist the Union by allowing the Commission, in
coordination and close cooperation with the competent authorities of the Member
States, to conduct Union inquiries on its territory, in order to verify the authenticity
of documents or the accuracy of information relevant for granting the benefit
of the arrangements referred to in Article 41 of this Decision;
(e)         
comply with or ensure compliance with the rules
of origin in respect of cumulation, within the meaning of Articles 7 to 10 of
Annex VI;
(f)           
assist the Union in the verification of conduct
where there is the presumption of origin-related fraud. The existence of fraud
may be presumed where imports of products under the preferential arrangements
provided for in this Decision massively exceed the usual levels of the
beneficiary OCT's exports.
Article 2
Withdrawal of preferential arrangements
1.           The Commission may
temporarily withdraw the preferential arrangements provided for in this
Decision, in respect of all or of certain products originating in a beneficiary
country, where it considers that there is sufficient evidence that a temporary
withdrawal would be justified for the reasons referred to in paragraphs 1 and 2
of Article 1 of this Annex, provided that it has first: 
(a)         
consulted the Committee referred to in Article
10 of Annex VIII in accordance with the procedure referred to in Article 3
paragraph 2;
(b)         
called on the Member States to take such
precautionary measures as are necessary, in order to safeguard the Union’s
financial interests and/or secure compliance by the beneficiary country with
its obligations; and
(c)         
published a notice in the Official Journal of
the European Union stating that there are grounds for reasonable doubt
about the application of the preferential arrangements and/or compliance by the
beneficiary country with its obligations, which may call into question its
right to continue to enjoy the benefits granted by this Decision.
The Commission shall inform the OCT(s)
concerned of any decision taken in accordance with this paragraph, before it
becomes effective. The Commission shall also notify the Committee referred to
in Article 10 of Annex VIII.
2.           The period of temporary
withdrawal shall not exceed six months. On conclusion of the period, the Commission
shall decide either to terminate the temporary withdrawal after informing the
Committee referred to in Article 10 of Annex VIII or to extend the period of temporary
withdrawal in accordance with the procedure referred to in paragraph 1 of this
Article.
3.           Member States shall
communicate to the European Commission all relevant information that may
justify the withdrawal of preferences or its extension.
Article 3
Committee procedure
1.           For the purpose of the
implementation of Article 2, the Commission shall be assisted by the Committee
referred to in Article 10 of Annex VIII.
2.           When reference is made to
this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.
ANNEX VIII
Safeguard and surveillance procedures
Article 1
Definitions relative to surveillance and safeguard measures
For the purpose of the Articles 2 to 10 of this Annex relating to surveillance and
safeguard measures:
(a)                   
‘like product’ means a product which is
identical, i.e. alike in all respects, to the product under consideration, or,
in the absence of such a product, another product which, although not alike in
all respects, has characteristics closely resembling those of the product under
consideration;
(b)                   
‘interested parties’ means those parties
involved in the production, distribution and/or sale of the imports mentioned
in paragraph 1 and of like or directly competing products;
(c)                   
‘serious difficulties’ shall exist where Union
producers suffer deterioration in their economic and/or financial situation.
Article 2
Principles of safeguard measures
1.           Where a product
originating in an OCT referred to in Article 41 of this Decision is imported in
volumes and/or at prices which cause, or threaten to cause, serious
difficulties to Union producers of like or directly competing products, the
necessary safeguard measures may be taken in accordance with the paragraphs.
2.           For the purpose of
implementing paragraph 1, priority shall be given to such measures as would
least disturb the functioning of the Association. These measures shall not
exceed the limits of what is strictly necessary to remedy the difficulties that
have arisen. They cannot exceed the withdrawal of the preferential treatment
granted by this Decision.
3.           When safeguard measures
are taken or modified, particular attention shall be paid to the interests of
the OCTs involved.
Article 3
Initiation of proceedings
1.           The Commission shall
investigate whether safeguard measures should be taken if there is sufficient prima
facie evidence that the conditions of Article 2 of this Annex are met.
2.           An investigation shall be
initiated upon request by a Member State, by any legal person or any
association not having legal personality, acting on behalf of Union producers,
or on the Commission’s own initiative if it is apparent to the Commission that
there is sufficient prima facie evidence, as determined on the basis of factors
referred to in Article 2 of this Annex, to justify such initiation. The request
to initiate an investigation shall contain evidence that the conditions for
imposing the safeguard measure set out in Article 2 of this Annex are met. The
request shall be submitted to the Commission. The Commission shall, as far as
possible, examine the accuracy and adequacy of the evidence provided in the
request to determine whether there is sufficient prima facie evidence to
justify the initiation of an investigation.
3.           Where it is apparent that
there is sufficient prima facie evidence to justify the initiation of a
proceeding the Commission shall publish a notice in the Official Journal of the
European Union. Initiation shall take place within one month of the request
received pursuant to paragraph 2. Should an investigation be initiated, the
notice shall provide all necessary details about the procedure and deadlines,
including the possibility of recourse to the Hearing Officer of the Directorate
General for Trade of the European Commission.
4.           The rules and procedures
concerning the conduct of the investigation are laid down in Article 4.
5.           If the OCT authorities so
require and without prejudice to the deadlines referred to in this Article, a
trilateral consultation referred to in Article 13 of this Decision shall be
organised. The outcome of the trilateral consultation shall be transmitted to
the consultative committee.
Article 4
Investigations
1.           Following the initiation
of the proceeding, the Commission shall commence an investigation. The period
as set out in paragraph 3 shall start on the day the decision to initiate the
investigation is published in the Official Journal of the European Union.
2.           The Commission may request
Member States to supply information and Member States shall take whatever
steps are necessary in order to give effect to any such request. If that
information is of general interest and is not confidential within the meaning
of Article 11 of this Annex, it shall be added to the non-confidential files as
provided for in paragraph 8.
3.           The investigation shall be
concluded within twelve months of its initiation.
4.           The Commission shall seek
all information it considers necessary to make a determination with regard to
the conditions set out in Article 2 of this Annex, and, where it considers it
appropriate, endeavour to verify that information.
5.           In the investigation the
Commission shall evaluate all relevant factors of an objective and quantifiable
nature having a bearing on the situation of the Union industry, in particular,
the market share, changes in the level of sales, production, productivity,
capacity utilisation, profits and losses, and employment. This list is not
exhaustive and other relevant factors may also be taken into consideration by
the Commission.
6.           Interested parties who
have come forward within the period laid down in the notice published in the
Official Journal of the European Union and representatives of the OCT concerned
may, upon written request, inspect all information made available to the
Commission in connection with the investigation other than internal documents
prepared by the Union authorities or those of the Member States, provided that that
information is relevant to the presentation of their case and not confidential
within the meaning of Article 11 and that it is used by the Commission in the
investigation. Interested parties who have come forward may communicate their
views on the information to the Commission. Those views shall be taken into
consideration where they are backed by sufficient prima facie evidence.
7.           The Commission shall
ensure that all data and statistics which are used for the investigation are
available, comprehensible, transparent and verifiable.
8.           The Commission shall hear
the interested parties, in particular where they have made a written
application within the period laid down in the notice published in the Official
Journal of the European Union, showing that they are actually likely to be
affected by the outcome of the investigation and that there are special reasons
for them to be heard orally. The Commission shall hear such parties on further
occasions if there are special reasons for them to be heard again.
9.           When information is not
supplied within the time limits set by the Commission, or the investigation is
significantly impeded, findings may be made on the basis of the facts
available. Where the Commission finds that any interested party or third party
has supplied it with false or misleading information, it shall disregard that
information and may make use of the facts available.
10.         The Commission shall notify
the OCT concerned in writing of the initiation of an investigation. 
Article 5
Prior surveillance measures
1.           The products originating
in the OCTs referred to in Article 41 of this Decision may be subject to
special surveillance.
2.           Prior surveillance
measures shall be adopted by the Commission in accordance with the advisory
procedure referred to in Article 6 of this Annex.
3.           Prior surveillance
measures shall have a limited period of validity. Unless otherwise provided,
they shall cease to be valid at the end of the second six-month period
following the first six months after the measures were introduced.
4.           The Commission and the
competent OCT authorities shall ensure the effectiveness of the surveillance
measures by introducing the methods of administrative cooperation set out in
Annexes VI and VII. 
Article 6
Imposition of provisional safeguard measures
1.           On duly justified grounds
of urgency relating to deterioration of the economic and/or financial situation
of Union producers which would be difficult to repair, provisional measures may
be imposed. Provisional measures shall be shall not apply for more than 200
days. Provisional measures shall be adopted by the Commission in accordance
with the advisory procedure referred to in Article 10 of this Annex. In cases
of imperative grounds of urgency, the Commission shall adopt immediately
applicable provisional safeguard measures in accordance with the procedure
referred to in Article 10 of this Annex.
2.           Should
the provisional safeguard measures be repealed because the investigation shows
that the conditions set out in
Article 2 of this Annex are not met, any customs duty collected as a result of
those provisional measures shall be refunded automatically.
Article 7
Imposition of definitive measures
1.           Where the facts as finally
established show that the conditions set out in Article 2 of this Annex are not
met, the Commission shall adopt a decision terminating the investigation and
proceeding in accordance with the examination procedure referred to in Article
4 of this Annex. The Commission shall make public, with due regard to the
protection of confidential information within the meaning of Article 9 of this
Annex, a report setting forth its findings and reasoned conclusions reached on
all pertinent issues of fact and law.
2.           Where the facts as finally
established show that the conditions set out in Article 2 of this Annex are
met, the Commission shall adopt a decision imposing definitive safeguard
measures in accordance with the examination procedure referred to in Article 4.
The Commission shall make public, with due regard to the protection of confidential
information within the meaning of Article 9 of this Annex, a report containing
a summary of the material facts and considerations relevant to the
determination, and notify the OCT authorities immediately of the decision to
take the necessary safeguard measures
Article 8
Duration and review of safeguard measures
1.           A safeguard measure shall
remain in force only for such period of time as may be necessary to prevent or
remedy the serious injury and to facilitate adjustment. That period shall not
exceed three years, unless it is extended under paragraph 2.
2.           The initial period of
duration of a safeguard measure may exceptionally be extended by up to two
years provided it is determined that the safeguard measure continues to be
necessary to prevent or remedy serious difficulties.
3.           Any extension pursuant to
paragraph 3 shall be preceded by an investigation upon a request by a Member
State, by any legal person or any association not having legal personality,
acting on behalf of the Union industry, or on the Commission's own initiative
if there is sufficient prima facie evidence that safeguard measure continues to
be necessary.
4.           The initiation of an
investigation shall be published in accordance with Article 4 and the safeguard
measure shall remain in force, pending the outcome of the investigation. The
investigation and any decision regarding an extension pursuant to paragraph 2
shall be done in accordance with the provisions of Article 6 and 7. 
Article 9
Confidentiality
1.           Information received
pursuant to this Decision shall be used only for the purpose for which it was
requested. Neither information of a confidential nature nor any information
provided on a confidential basis received pursuant to this Decision shall be
disclosed without specific permission from the supplier of such information.
2.           Each request for
confidentiality shall state the reasons why the information is confidential.
However, if the supplier of the information wishes neither to make it public
nor to authorise its disclosure in general terms or in the form of a summary,
and if it appears that the request for confidentiality is unjustified, the
information concerned may be disregarded.
3.           Information shall in any
case be considered to be confidential if its disclosure is likely to have a
significantly adverse effect upon the supplier or the source of such
information.
4.           Paragraphs 1 to 4 shall
not preclude reference by the Union authorities to general information and in
particular to reasons on which decisions taken pursuant to this Decision are
based. Those authorities shall, however, take into account the legitimate
interest of natural and legal persons concerned that their business secrets
should not be divulged.
Article 10
Committee procedure
1.           The Commission shall be
assisted by the Committee established by Article 4(1) of Council Regulation
(EC) No 260/2009 of 26 February 2009 on the common rules for imports[99].
That Committee shall be a Committee within the meaning of Regulation (EU)
No 182/2011.
2.           Where reference is made to
this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.
3.           Where reference is made to
this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.
4.           Where reference is made to
this paragraph, Article 8 of Regulation (EU) No 182/2011, in conjunction
with Article 4 thereof, shall apply.
LEGISLATIVE FINANCIAL STATEMENT
1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE
              1.1.    Title of the proposal/initiative 
              1.2.    Policy
area(s) concerned in the ABM/ABB structure
              1.3.    Nature
of the proposal/initiative
              1.4.    Objective(s)
              1.5.    Grounds
for the proposal/initiative
              1.6.    Duration
and financial impact
              1.7.    Management
method(s) envisaged
2.           MANAGEMENT MEASURES
              2.1.    Monitoring
and reporting rules
              2.2.    Management
and control system
              2.3.    Measures
to prevent fraud and irregularities
              2.4.    Estimate of the costs and benefits of the
controls
3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE
LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS
1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE
1.1.        Title of the proposal/initiative
Council Decision on the Association of the Overseas Countries and
Territories with the European Union (Overseas Association Decision)
1.2.        Policy area(s) concerned
in the ABM/ABB structure[100]
Title 21 : Development and relations with African, Caribbean and
Pacific (ACP) States
21 04: Environment and sustainable management of natural resources,
including energy
21 05: Human and social development
21 06: Geographical cooperation with African, Caribbean and Pacific
(ACP) States
21 07: Development cooperation actions and ad-hoc programmes
1.3.        Nature of the
proposal/initiative
¨ The
proposal/initiative relates to a new action
¨ The
proposal/initiative relates to a new action following a pilot
project/preparatory action[101] 
x The proposal/initiative relates to the
extension of an existing action
¨ The
proposal/initiative relates to an action redirected towards a new action
1.4.        Objectives
1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative
To promote the economic and social development of the OCTs and to
establish close economic relations between them and the European Union as a
whole.
To further the interests and prosperity of the inhabitants of these
countries and territories in order to lead them to the economic, social and
cultural development to which they aspire.
To enhance the OCTs' competitiveness, to strengthen the OCTs'
resilience, to reduce their vulnerability and to promote cooperation between
them and other partners.
1.4.2.     Specific objective(s) and ABM/ABB
activity(ies) concerned initiative
The objectives shall be to;
a) help
promote EU's values and standards in the wider world;
b) establish
a more reciprocal relationship between EU and OCTs based on mutual interests;
c) enhance
OCTs' competitiveness;
d) strengthen
OCTs' resilience and reduce their economic and environmental vulnerabilities;
e) promote cooperation of OCTs with third partners;
f) integrate
EU policy agenda priorities;
g) take into
account changes in global trade patterns and EU trade agreements with third
partners;
Through the intention to;
a) promote the economic and social development of the OCTs by
establishing close economic relations between them and the European Union as a
whole;
b) support the OCTs' capacities to define and implement policies,
strategies, action plans and measures in theareas chosen for cooperation
between the parties. Establish a coordinated cooperation in the field of
environment, climate change and disaster risk reduction, in support of the
OCTs' sustainable development;
c) promote sustainable resource use and resource efficiency, and to
encourage decoupling economic growth from environmental degradation;
d) support the process of diversification of OCT economies;
e) contribute to the OCTs' sustainable development and to promote
excellence and industrial competitiveness within OCTs, through cooperation
between the European Union and
OCTs in the field of science, technology, including information and communication technologies, research and
innovation;
f) support OCTs' efforts to converge their local legislation with
European Union legislation, where relevant;
g) strengthen the ties between young people living in the OCTs and
the European Union; promote the provision of high quality education and decent
work in the OCTs and regions where they are located; and contribute to the
strengthening of OCTs' capacity for surveillance, detection and response to
outbreaks of communicable diseases;
h) take into account and contribute to the preservation of the
cultural diversity and identity of OCTs;
i) stimulate the OCTs' effective integration in the regional and
world economies and the development of trade in goods and services;
j) mitigate the effects of the OCTs' remoteness, which constitutes a
barrier to the OCTs competitiveness;
k) support OCT capacities to formulate and implement policies
necessary for the development of their trade in goods and services;
l) support OCTs in creating a favourable investment climate to
support their social and economic development;
m) promote the stability, integrity and transparency of the
financial system, and good governance in the tax area;
n) support the OCTs in the development of innovative and effective
means of police and judicial cooperation and in their fight against the
trafficking of human beings, terrorism and other forms of organised crime;
o) support the OCTs' export and trading capacities;
p) provide possibilities for targeted cooperation and dialogue on
trade and trade related areas.
ABM/ABB activity(ies) concerned
Title 21 : Development and relations with African, Caribbean and
Pacific (ACP) States
21 04: Environment and sustainable management of natural resources,
including energy
21 05: Human and social development
21 06: Geographical cooperation with African, Caribbean and Pacific
(ACP) States
21 07: Development cooperation actions and ad-hoc programmes (see
point 1.2).
1.4.3.     Expected result(s) and impact
Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.
The expected impact are:
a) closer economic relations between the OCTs and the EU;
b) increased OCTs' capacity to define and implement policies,
strategies, action plans and measures in the areas chosen for cooperation
between the parties;
c) better resource use and resource efficiency;
d) further diversification of OCT economies;
e) increased cooperation in the field of science, technology,
including information and communication technologies, research and innovation, as well as environment, climate change and disaster risk reduction;
f) increased convergence between OCTs and EU legislation;
g) increased exchanges between EU-OCT young people; improved quality
of education and better work conditions in the OCTs; and stronger capacity to
deal with outbreaks of communicable diseases;
h) increased awareness of the cultural diversity and identity of
OCTs;
i) further integration of the OCTs in the regional and world
economies;
j) Improved accessibility of OCTs;
k) better capacities to formulate and implement policies necessary
for the development of trade;
l) favourable investment climate in the
OCTs;
m) more stable, trustworthy and transparent financial
systems in the OCTs;
n) innovative and effective means of police and judicial cooperation
namely in the fight against the trafficking of human beings, terrorism and
other forms of organised crime;
o) increased export and trading capacities;
p) increased dialogue and targeted cooperation on trade and trade
related areas;
1.4.4.     Indicators of results and
impact
Specify the
indicators for monitoring implementation of the proposal/initiative.
The OAD is a political decision that provides the legislative
framework for cooperation between the EU and the OCTs as stipulated in the
Treaty.
The OAD will be further complemented by a Commission Implementing
Regulation and by programming documents where the strategies for cooperation
(focal sector(s)) between the EU and the OCTs and respective financial
allocations are jointly agreed upon.
The programming documents and the subsequent Commission Financing
Decisions will include the respective indicators to be used in the monitoring
of the strategy. The indicators will range from input, output, outcome and
impact depending on the specificities of the OCT and the sector of cooperation.
In certain cases where the implementing modality for the EU support is budget
support, it is not excluded that annual targets are defined and the EU support
is disbursed against the levels of performance against the targets.
1.5.        Grounds for the
proposal/initiative 
1.5.1.     Requirement(s) to be met in
the short or long term
The treaty specifies the need for detailed provisions to be laid
down for the association of the OCTs with the EU. The current OAD expires 31
December 2013 and there is a need for a legislative framework to ensure the
appropriate support and assistance to be available to the OCTs.
1.5.2.     Added value of EU
involvement
In view of increasingly complex challenges, none of the EU's
internal priorities – security, smart, inclusive and sustainable growth and job
creation, climate change, access to energy, resource efficiency, including the
protection of biodiversity, safe management of water or waste, health and
pandemics, education - will be achieved in isolation from the wider world.
With 27 Member States acting within common policies and strategies,
the EU alone has the critical mass to respond to global challenges, such as
climate change. The action of individual Member States can be limited and
fragmented. This critical mass also puts the EU in a better position to conduct
policy dialogue with partner OCT governments.
Through its external action, the EU is committed to promoting its
standards, and sharing its expertise. The OCTs have the potential for becoming
strategic outposts of the EU throughout the world. Upgrading the OCTs'
legislation and standards to EU levels could increase both the influence of the
OCTs and subsequently the EU in their respective regions. 
1.5.3.     Lessons learned from
similar experiences in the past 
Through the launching of a public consultation a number of general
issues was defined , such as the change of focus from poverty reduction in
development cooperation, to a more reciprocal relationship. This shift was
supported by the OCTs and the Member states in their Joint Position Paper, which,
while recognising that the current association framework has made a significant
contribution to the economic and social development of the OCTs, there was a
need for differentiation of the EU approach towards OCTs from the one towards
ACP States and other developing countries. Instead, a reciprocal approach is
proposed to take into account the specificities of OCTs, their diversity and
vulnerability and based on mutual interests and shared values. The paradigm
shift would also have to take into account the political priorities that
emerged in OCTs and the EU.
An external evaluation study conducted in 2011 found that in the
context of the OCT/EU financial cooperation in the period 1999-2009, the
response time of assistance to OCTs funded from the EDF resources, reserved to
respond to natural disasters and unforeseen events, had been too long.
The necessity to foster cooperation between OCTs and their
neighbouring countries has also been identified as a means to reach efficiency.
In this respect, the study highlights that cooperation between the OCTs and
their neighbours (third countries, ACP States or outermost regions of the EU)
is insufficiently facilitated by the EU, notably because the partners must
mobilize different EU funds.
Access to EU programmes and horizontal budget lines has, despite the
full eligibility of the OCTs to these programmes, proven difficult to materialise
due primarily to lack of administrative capacity in most OCTs either to
participate or to submit winner projects. As regards the trade regime, a number
of issues were identified in external studies and during stakeholder
consultations and/or were flagged by the European Commission. In their overall
assessments of the OCT trade regime, OCTs, their Member States as well as
external evaluators all agreed that the trade and economic component of the
OCT/EU association has contributed to the sustainable social and economic
development of OCTs by providing OCTs a secure access to the large EU market
and numerous export opportunities, and by supporting local economies. Despite
these positive results, external evaluators have pointed out that the wide
market access offered to OCTs has not always resulted in actual trade
opportunities, as OCTs faced several challenges in effectively exploiting this
market access.
Regarding OCT/EU trade and economic cooperation, external studies
recommend that the revised OCT/EU association would: review the respective
arrangements concerning trade in services and rules of origin; foresee enough
support and capacity building for the development of OCT trade related policies
as well as to assist OCTs in regulatory reform.
1.5.4.     Coherence and possible
synergy with other relevant instruments
The 'Europe 2020' provides the benchmark against which the coherence
of EU policies and the promotion of EU values, standards and interest need to
be checked. Coherence with the Europe 2020 strategy
should be sought as far as its smart growth and sustainable priorities are
concerned, promoting support to research, innovation as well as to information
and communication technologies (ICT) and sustainable growth capacities as
catalysts for socio-economic development.
The 2014-2020 OAD will play an important role in that respect.
Indeed, the idea of establishing ‘centres of experience and expertise’ could
relate to the implementation and promotion of high standards, including
international standards, e.g. in the fields of environment and food safety and consumer
health. The OCTs are all characterised by rich biodiversity. In that context
the sustainable use and protection of this biodiversity would benefit from
better scientific documentation and access to research results. Likewise, the
implementation of international standards within the area of food safety,
animal and plant health could facilitate trade between OCTs and their trading
partners, including EU Member States. The EU's commitment to environmental
standards as well as its role as a global player in the fight against climate
change could be of great value to both the EU and the OCTs. The European
Commission believes that biodiversity and other natural assets of the OCTs
could be the object of a strengthened cooperation in the field of research and
conservation. A partnership in the area of environment could be of mutual interest
to both parties.
1.6.        Duration and financial
impact
x Proposal/initiative of limited
duration
–     
x Proposal/initiative in effect from 01/01/2014 to 31/12/2020
–     
x Financial impact from 01/01/2014 to 31/12/2020
–     
¨ Proposal/initiative of unlimited
duration
–     
Implementation with a start-up period from YYYY
to YYYY,
–     
followed by full-scale operation.
1.7.        Management mode(s) envisaged[102] 
x Centralised direct management by the Commission
x Centralised indirect management with the delegation of implementation tasks to:
–     
x executive agencies
–     
x bodies set up by the Communities[103]
–     
x national public-sector bodies/bodies with public-service mission
–     
¨  persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation
x Shared management with the Member States
xDecentralised management with third
countries
¨ Joint management with international organisations (to be specified)
If more than one
management mode is indicated, please provide details in the
"Comments" section.
Comments 
As the OAD is a Framework for the
cooperation between the OCTs and the EU the implementing modalities to be
foreseen in the financing decisions will be determined on a case by case basis
depending on the strategy agreed and on the specificities of the OCT concerned.
2.           MANAGEMENT MEASURES 
2.1.        Monitoring and reporting
rules 
Specify frequency
and conditions.
The Overseas Association Decision
sets the legislative framework for the association of the OCTs with the EU. It
is by nature a text defining the EU external relations with these countries and
territories and as such, its implementation cannot be assessed through core
indicators. Nevertheless, the strategies of cooperation agreed between the EU
and the OCTs to pursue the sustainable development of the OCTs will be
subjected to evaluation by the means of input and output indicators defined in
the framework of each program.
2.2.        Management and control
system 
2.2.1.     Risk(s) identified
Risk environment
The operational environment of aid under this Decision is
characterised by the following risks of not achieving the objectives,
suboptimal financial management and/or of not complying with the applicable
rules (legality and regularity errors):
–              
economic/political instability and/or natural disaster may lead to difficulties and
delays in the design and implementation of interventions, particularly in
fragile states;
–              
a lack of institutional and administrative capacity in partner countries may lead to
difficulties and delays in the design and implementation of interventions; 
–              
geographically dispersed projects and programmes
(covering approximately many states/territories/regions) may pose
logistical/resource challenges to monitoring - particularly any 'on-the-spot'
follow-up of activities;
–              
diversity of potential partners / beneficiaries with their diverse internal control
structures and capacities can fragment and therefore reduce the effectiveness
and efficiency of the Commission's available resources to support and monitor
implementation;
–              
poor quality and quantity of available data on the outcomes and impact of external aid /
national development plan implementation in partner countries may hinder the
Commission's ability to report on and be accountable for results;
–              
a lack of administrative credits may lead to
insufficient resources to properly manage the Decision.
Expected level of risk of non-compliance with applicable rules
The compliance objective for the instrument is to maintain the historic level of risk of
non-compliance (error rate) for DEVCO portfolio which is a residual 'net' level
of error (on a multi-annual basis after all planned controls and corrections
have been executed on closed contracts) of less than 2%. This has traditionally
implied an estimated error range of 2-5% in terms of an annual randomised
sample of transactions undertaken by the European Court of Auditors for the
purposes of the annual Statement of Assurance (DAS). DEVCO considers this to be
the lowest risk of non compliance achievable in relation to its high risk
environment and taking into account the administrative burden and necessary
cost effectiveness of compliance controls.
2.2.2.     Control method(s) envisaged

Directorate General for Development and Cooperation - EuropeAid
Internal Control architecture
Directorate General for Development and Cooperation – EuropeAid's
internal control / management process is designed to provide reasonable
assurance regarding the achievement of objectives in the effectiveness and
efficiency of its operations, the reliability of its financial reporting and
compliance with the relevant legislative and procedural framework.
Effectiveness and efficiency
To ensure the effectiveness and efficiency of its operations (and to mitigate the high level of
risk in its external aid environment), in addition to all the elements of the
Commission wide Strategic Policy and Planning process, internal audit
environment and other requirements of the Commission's Internal Control
Standards, the Commission will continue to have a tailored aid management
framework in operation under all its instruments which will include:
–              
A devolved management of the majority of
external aid by EU Delegations in the field;
–              
Clear and formalised lines of financial
accountability (from the Delegated Authorising officer (Director General)) by
means of a subdelegation from the Subdelegated Authorising Officer (Director)
at HQ to the Head of the EU Delegation;
–              
Regular reporting from EU Delegations to HQ (External
Assistance Management Reports) including an annual Statement of Assurance by
the Head of the EU Delegation;
–              
Provision of a substantial programme of training
for staff both at HQ and in the relevant EU Delegations;
–              
Significant HQ/Delegation support and guidance
(including via internet);
–              
Regular 'verification' visits to 'devolved'
delegations every 3 to 6 years;
–              
A project and programme cycle management methodology
including;
–              
Quality support tools for the design of the
intervention, its delivery method, financing mechanism, management system,
assessment and selection of any implementing partners, etc;
–              
Programme and project management, monitoring and
reporting tools for effective implementation including regular external
on-the-spot monitoring of projects;
–              
Significant evaluation and audit components;
Financial Reporting and Accounting
The Commission will continue to pursue the highest standards of
accounting and financial reporting using the Commission's accruals based
accounting system (ABAC) as well as external aid specific tools such as the
Common Relex Information System (CRIS).
In relation to compliance with the relevant legislative and procedural
framework, compliance control methods are set out in section 2.2 (measures to
prevent fraud and irregularities).
2.3.        Measures to prevent fraud
and irregularities
Specify existing or
envisaged prevention and protection measures.
–              
Given the high risk environment in which
EuropeAid operates, its systems need to anticipate a significant occurrence of
potential compliance errors (irregularities) in transactions and build in a
high level of prevention, detection and correction controls as early as
possible in the payment process. This means in practice that EuropeAid's
compliance controls will place most reliance on significant ex-ante checks on a
multi-annual basis by both external auditors and Commission staff in the field
before final project payments (while still executing some ex-post audits and
checks), going well beyond the financial safeguards required by the Financial
Regulation. EuropeAid's compliance framework is made up inter alia of the
following significant components:
–              
Preventative measures;
–              
Compulsory core training covering fraud issues
for aid management staff and auditors;
–              
Provision of guidance (including via internet)
including the Practical Guide to Contracts, the EuropeAid Companion and the
Financial Management Toolkit (for implementing partners);
–              
Ex-ante assessment to ensure that appropriate
anti-fraud measures to prevent and detect fraud in the management of EU funds
are in place in the authorities managing the relevant funds under joint and
decentralised management);
–              
Ex-ante screening of the anti-fraud mechanisms
available in the partner country as part of the assessment of the eligibility
criterion of public finance management for receiving budget support (i.e.
active commitment to fight fraud and corruption, adequate inspection
authorities, sufficient judicial capacity and efficient response and sanction
mechanisms);
–              
The Commission signed the International Aid
Transparency Initiative (IATI) in Accra in 2008, agreeing on a standard for aid
transparency which ensures more timely, detailed and regular data on aid flows
and documents;
–              
The Commission implements since 14 October 2011
the first phase of the IATI standard for publishing aid information transparency
before the next High Level Forum on aid effectiveness in Busan in November
2011. In addition, the Commission will work in cooperation with the EU Member
States on a joint web-based IT application called TR-AID which transforms the
EU aid data provided through the IATI and other sources into user-friendly aid
information;
–              
Detective and corrective measures;
–              
External audits and verifications (both
mandatory and risk based) including the European Court of Auditors;
–              
Retrospective checks (on a risk basis) and
recoveries;
–              
Suspension of EU funding where there is a
serious fraud case, including large scale corruption, until the authorities
have taken appropriate action with a view to correcting and preventing such
fraud in the future;
–              
EuropeAid will further devise its anti-fraud
strategy in line with the Commission's new anti-fraud strategy (CAFS) adopted
on 24 June 2011 in order to ensure inter alia that;
–              
The Commission's internal anti-fraud related
controls are fully aligned with the CAFS;
–              
The Commission's fraud risk management approach
is geared to identify fraud risk areas and adequate responses;
–              
The systems used for spending EU funds in third
countries enable relevant data to be retrieved with a view to feeding this data
into fraud risk management (e.g. double funding);
–              
Where necessary, networking groups and adequate
IT tools dedicated to analysing fraud cases related to the external aid sector
could be set up.
2.4.        Estimate of the costs and
benefits of the controls
For the EuropeAid portfolio as a whole, internal control /
management costs total an estimated annual average of €658 million in
commitments in the 2014-2020 budget planning. This figure includes the
management of the EDF which operates in an integrated way within the management
structure of EuropeAid. These 'non operational' costs represent approximately 6.4
% of the estimated annual average of € 10.2 billion planned for the overall
(operational + administrative) commitments by EuropeAid on its expenditure
portfolio financed by the General Budget of the EU and the European Development
Fund for the period 2014-2020.
These management costs take into account all EuropeAid staff at HQ
and in Delegations, infrastructure, travel, training, monitoring, evaluation
and audit contracts (including those launched by beneficiaries).
EuropeAid plans to reduce the management / operational activities
ratio over time under the improved and simplified arrangements of the new
instruments, building on changes likely to come in under the revised Financial
Regulation. The key benefits of these management costs are realised in terms of
meeting policy objectives, efficient and effective use of resources, and the
exercise of robust cost-effective preventative measures and other checks to
ensure the legal and regular use of funds.
While improvements in the nature and targeting of management
activities and compliance checks in relation to the portfolio will continue to
be pursued, these costs are globally necessary to effectively and efficiently achieve
the objectives of the instruments at a minimal risk of non compliance (below 2%
residual error). They are significantly less than risks involved in removing or
scaling back internal controls in this high risk area.
3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE 
Nota bene:
The Communication from the Commission to
the European Parliament and the Council: "Preparation of the multiannual
financial framework regarding the financing of EU cooperation for ACPs and OCTs
for the 2014-2020 period (11th European Development Fund)" also
included the proposed financial allocation for the OCTs under the 11th
EDF.
For that purpose, a simplified financial
statement: "ASSESSMENT OF THE IMPACT OF THE 11TH EDF ON HEADING
V" was prepared (COM(2011) 837 final, Brussels, 7.12.2011).
[1]               Not counting Greenland (the world's largest island)
and the British Antarctic Territory, which respectively account for 2.2 million
and 1.7 million sq. km.
[2]               Communication COM(2010) 2020 final of 3 March 2010
"Europe 2020 – A strategy for smart, sustainable and inclusive
growth"
[3]               COM (2010) 2020, 3 March 2010.
[4]               COM(2008) 383 of 25 June 2008
[5]               Conclusions 17801/09 of 22 December 2009
[6]               See:
http://www.octassociation.org/Visual%20Identity%20and%20Publications/Reports/joint%20position%20280211.pdf
[7]               In July 2008 a conference on "The European Union
and its Overseas Entities: Strategies to counter Climate Change and
Biodiversity Loss" was held in La Réunion Island gathered representatives
of the European Commission, European Parliament, public authorities and civil
stakeholders from the OCTs, outermost regions of the EU and EU Member States.
[8]               ECO Consult et al., Region Level Evaluation: Overseas
Countries and Territories (OCT), contract N° EVA 2004/geo-acp, Final Report,
July 2011 (hereafter ECO conult et al. (2011)).
[9]               COM(2011) 837 of 7 December 2011
[10]             OJ L 314, 30.11.2001, p. 1..
[11]             Council document number: 17801/09.
[12]             COM(2009) 623 final
[13]             Council Regulation (EC) No 732/2008 of 22 July applying
a scheme of generalised tariff preferences from 1 January 2009 and amending
Regulations (EC) No 552/97, (EC) No 1933/2006 and Commission Regulations (EC)
No 1100/2006 and (EC) No 964/2007 (OJ L 211, 6.8.2008, p. 1).
[14]             OJ L 39,
16.2.1993, p. 1.
[15]             OJ L 190, 12.7.2006, p.1.
[16]             OJ L 244, 14.9.2001, p. 19.
[17]             OJ L 185,
17.7.1999, p. 1.
[18]             OJ L 332, 28.12.2000, p. 81.
[19]             OJ L 292, 15.11.1996, p. 2.
[20]             Articles 11 and 12 of Council Regulation
(EC) No 732/2008 of 22 July 2008 (OJ L 211, 6.8.2008, p. 1.).
[21]             Article 6 of Regulation (EC) No
732/2008. Materials that benefit from duty free treatment by virtue of the
special incentive arrangement for sustainable development and good governance
of Articles 7 to 10 of the same Council Regulation, but not under the general
arrangement of Article 6 of the same Council Regulation, are not covered by
this provision. 
[22]             OJ L 211, 6.8.2008, p. 1.
[23]             OJ
L 302, 19.10.1992, p. 1.
[24]             See additional explanatory Note
4(b) to Chapter 27 of the Combined Nomenclature.
[25]             See additional explanatory Note
4(b) to Chapter 27 of the Combined Nomenclature.
[26]             See
Introductory Note 4.2. 
[27]             See
Introductory Note 4.2.
[28]             See
Introductory Note 4.2.
[29]             See
Introductory Note 4.2.
[30]             See
Introductory Note 4.2.
[31]             See Introductory Note 4.2.
[32]             See
Introductory Note 4.2.
[33]             See
Introductory Note 4.2.
[34]             See
Introductory Note 4.2.
[35]             See
Introductory Note 4.2.
[36]             See
Introductory Note 4.2.
[37]             See
Introductory Note 4.2.
[38]             See
Introductory Note 4.2.
[39]             See
Introductory Note 4.2.
[40]             See
Introductory Note 4.2.
[41]             For the special conditions
relating to “specific processes”, see Introductory Notes 8.1 and 8.3.
[42]             For the special conditions
relating to “specific processes”, see Introductory Note 8.2.
[43]             For the special conditions
relating to “specific processes”, see Introductory Note 8.2.
[44]             For the special conditions
relating to “specific processes”, see Introductory Note 8.2.
[45]             For the special conditions
relating to “specific processes”, see Introductory Notes 8.1 and 8.3.
[46]             In the case of the products
composed of materials classified within both headings 3901 to 3906, on the one
hand, and within headings 3907 to 3911, on the other hand, this restriction
only applies to that group of materials which predominates by weight in the
product.
[47]             For special conditions relating
to products made of a mixture of textile materials, see Introductory Note 6.
[48]             For special conditions relating
to products made of a mixture of textile materials, see Introductory Note 6.
[49]             For special conditions relating
to products made of a mixture of textile materials, see Introductory Note 6.
[50]             For special conditions relating
to products made of a mixture of textile materials, see Introductory Note 6.
[51]             For special conditions relating
to products made of a mixture of textile materials, see Introductory Note 6.
[52]             For special conditions relating
to products made of a mixture of textile materials, see Introductory Note 6.
[53]             For special conditions relating
to products made of a mixture of textile materials, see Introductory Note 6.
[54]             For special conditions relating
to products made of a mixture of textile materials, see Introductory Note 6.
[55]             For special conditions relating
to products made of a mixture of textile materials, see Introductory Note 6.
[56]             For special conditions relating
to products made of a mixture of textile materials, see Introductory Note 6.
[57]             For special conditions relating
to products made of a mixture of textile materials, see Introductory Note 6.
[58]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[59]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[60]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[61]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[62]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[63]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[64]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[65]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[66]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[67]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[68]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[69]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[70]                    The use of this material is restricted to
the manufacture of woven fabrics of a kind used in paper-making machinery.
[71]                    The use of this material is restricted to
the manufacture of woven fabrics of a kind used in paper-making machinery.
[72]                    The use of this material is restricted to
the manufacture of woven fabrics of a kind used in paper-making machinery.
[73]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[74]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[75]                    See Introductory Note 7.
[76]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[77]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[78]                    See Introductory Note 7.
[79]                    See Introductory Note 7.
[80]                    See Introductory Note 7.
[81]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[82]                    See Introductory Note 7.
[83]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[84]                    See Introductory Note 7.
[85]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[86]             See Introductory Note 7.
[87]             For special conditions relating
to products made of a mixture of textile materials, see Introductory Note 6.
[88]             See Introductory Note 7.
[89]             See Introductory Note 7.
[90]             See Introductory Note 7.
[91]             See Introductory Note 7.
[92]                    For special conditions relating to products
made of a mixture of textile materials, see Introductory Note 6.
[93]             See
Introductory Note 7.
[94]             See Introductory Note 7.
[95]             For special conditions relating
to products made of a mixture of textile materials, see Introductory Note 6.
[96]             For special conditions relating
to products made of a mixture of textile materials, see Introductory Note 6.
[97]             See Introductory Note 7.
[98]             SEMII – Semiconductor Equipment
and Materials Institute Incorporated
[99]             OJ L 84, 31.3.2009,
p. 1.
[100]            ABM: Activity-Based Management – ABB: Activity-Based
Budgeting.
[101]            As referred to in Article 49(6)(a) or (b) of the
Financial Regulation.
[102]            Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html
[103]            As referred to in Article 185 of the Financial
Regulation.