CELEX: 51995PC0618
Language: en
Date: 1995-11-29
Title: PROPOSAL FOR A DECISION OF THE COUNCIL AND THE COMMISSION ON THE CONCLUSION BY THE EUROPEAN COMMUNITY OF AN INTERIM AGREEMENT ON TRADE AND TRADE RELATED MATTERS BETWEEN THE EUROPEAN COMMUNITY AND THE EUROPEAN COAL AND STEEL COMMUNITY OF THE ONE PART AND THE STATE OF ISRAEL ON THE OTHER PART

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                         COMMISSION OF THE EUROPEAN COMMUNITIES
                                                       Brussels, 29.11.1995
                                                       COM(95) 618 final
                                                       95/0307 (ACQ
                              PROPOSAL FOR A DECISION OF THE COUNCIL
                                         AND THE COMMISSION
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                          ON THE CONCLUSIONBYTHE EUROPEAN COMMUNITY
                  OF AN INTERIM AQREEMENT ON TRADE AND TRADE RELATED MATTERS
                               BETWEEN THE EUROPEAN COMMUNITY AND
                             THE EUROPEAN COAL AND STEEL COMMUNITY
                                         OFTHE ONE PART AND
                               THE STATE OF ISRAEL ON THÉ OTHER PART
                                  (presented by the Commission)
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 ---pagebreak---  ---pagebreak---        COMMISSION OF THE EUROPEAN COMMUNITIES
                                     Brussels, 29.11.1995
                                     COM(95) 618 final
                                     95/0307 (ACC)
           PROPOSAL FOR A DECISION OF THE COUNCIL
                      AND THE COMMISSION
       ON THE CONCLUSIONBYTHE EUROPEAN COMMUNITY
OF AN INTERIM AQREEMENT ON TRADE AND TRADE RELATED MATTERS
            BETWEEN THE EUROPEAN COMMUNITY AND
           THE EUROPEAN COAL AND STEEL COMMUNITY
                      OFTHE ONE PART AND
            THE STATE OF ISRAEL ON THE OTHER PART
               (presented by the Commission)
 ---pagebreak---  ---pagebreak---                           EXPLANATORY MEMORANDUM
1. Following the signature of the Euro-Mediterranean Association Agreement
   between the Community and Israel on 20 November 1995, entry into force will
   await the completion of ratification procedures by the Community, Member States
   and Israel. However, a joint declaration to the Agreement expresses the intention
   to effect advance implementation of the trade and customs cooperation
   provisions of the Agreement at a date to be agreed, if possible on 1 January
   1996. This advance implementation will ensure that both sides receive the
   reciprocal benefits of the additional trade concessions of the Agreement at the
   earliest possible opportunity.
2. In order to achieve the objective stated above, the Commission has, on the basis
   of the joint statement reffered to earlier, negotiated an Interim Agreement on
   trade and trade-related matters containing the relevant provisions of the new
   Association Agreement signed by the Community, the Member States and Israel
   on 20.11.1995. The Commission hereby asks the Council to approve the results
   of this negotiations and to initiate the procedures for signing the Interim
   Agreement. The Commission also hereby presents a proposal for a Decision that
   will allow the Council and the Commision to launch the procedure for the
   conclusion of the Interim Agreement once it has been signed.
3. The Interim Agreement will replace the trade provisions of the cooperation
   Agreement between the EC and Israel and of the Agreement between the ECSC
   and Israel, both signed in 1975.
                                           e
 ---pagebreak---       PROPOSAL FOR A DECISION OF THE COUNCIL AND THE COMMISSION
 on the conclusion by the European Community of an Interim Agreement on
 trade and trade related matters between thé European Community and the
 European Coal and Steel Community, of the one. part and the State of Israel on
 the other part
 THE COUNCIL OF THE EUROPEAN UNION,
 THE COMMISSION OF THE EUROPEAN COMMUNITIES,
 Having regard to the Treaty establishing the European Coal and Steer Community
 and in particular Article 95 thereof,
 Having regard to the Treaty establishing the European Community, and in particular
 Article 113, in conjunction with the first sencence of Article 228 paragraph 2, and the
 first indent of Article 228 paragraph 3 thereof;
 Having regard to the opinion of the European Parliament                            -
•After consulting the Consultative Committee and the unanimous agreement of the
 Council,                          :   .
 Whereas, pending the entry into force of the Euro-Mediterranean Agreement signed
 in Brussels, on 20 November 1995, it is necessary to approve the Interim Agreement
 on trade and trade related matters between the European Community and the
 European Coal and Steel Community of the one part and the State of Israel, of the
 other part, signed in ....... on .. ,
 HAVE DECIDERAS FOLLOWS:
                                         ARTICLE 1
 The Interim Agreement on trade and trade related matters between the European
 Community and the European Coal and Steel Community, of the one part, and the
 State of Israel, of the other part, together with its Annexes, the Protocols, the
  exhange of letters and the declarations are hereby approved on behalf of the
  European Community and the European Coal and Steel Community. The texts are
 attached to this Decision.
                                         ARTÎCLE2
  The President of the Council shall give the notification provided for in Article 40 of the
  Interim Agreement-on behalf of the European Community. The. President of the
  Commission shall deposit that act on behalf of the European Coal arid Steel
  Community. .
  Done at Brussels on
                                              3
 ---pagebreak--- INTERIM AGREEMENT ON TRADE AND TRADE-RELATED MATTERS
         BETWEEN THE EUROPEAN COMMUNITY AND
        THE EUROPEAN COAL AND STEEL COMMUNITY,
                   OF THE ONE PART,
                AND THE STATE OF ISRAEL,
                   OF THE OTHER PART
                     w - ^.
 ---pagebreak---  ---pagebreak---   Interim Agreement on trade and trade-related matters between the European
 Community and the European Coal and Steel Community, of the one part, and
                         the State of Israel, of the other part.
the European Community and the European Coal and Steel Community, hereinafter
referred to as 'the Community*
of the one part and,
the State of Israel, hereinafter referred to as 'Israel',
of the other part,
WHEREAS the EurorMediterrahean Agreement establishing an association between
the Community and ' its Member States of the one part and Israel on the. other part,,
hereinafter reffered to as the Association Agreement, was signed in Brussels on 20
November 1995;
WHEREAS the Association Agreement is intended to strengthen and widerrthe
relations between the Community and its Member States and Israel established by
the existing Cooperation Agreement of 1975;
WHEREAS it is in the mutual interest of the Parties to implement as speedily as
possible, by means of an -Interim Agreement, the provisions of the Association
Agreement on trade and trade-related matters;
WHEREAS it is necessary to ensure that, pending,the entry into force of the
Association Agreement, and the establishment of the Association Council, the
Cooperation Council set up by the existing,.Cooperation Agreement of 1975 can
exercise the powers assigned by the Association Agreement to the Association
Council, which are necessary in order to implement the Interim Agreement,
 HAVE DECIDED to conclude this Agreement and to this end have designated as
their plenipotentiaries,
                                          Z"b>.
 ---pagebreak--- TJHE EUROPEAN COMMUNITY:
Xavier SOLANA
Minister for Foreign Affairs of the Kingdom of Spain,
President-in-Office of the Council of the European Union;
Manuel MARIN,
Vice-President of the Commission of the European Communities;
THE STATE OF ISRAEL:
WHO, having exchanged their full powers, found in good and due form,
                            HAVE AGREED AS FOLLOWS:
                                         ^
 ---pagebreak---                                           TITLE I
                                 GENERAL PRINCIPLES
                                     Article 1 (AA 2)
Relations between the Parties, as well as all the provisions of the Agreement itself,
shall be based on respect for human rights and democratic principles, which guides
their internal and international policy and constitutes an essential element of this
Agreement
                                         TITLE II
                            FREE MOVEMENT OF GOODS
                                       CHAPTER 1
                                   BASIC PRINCIPLES
                                     Article 2 (AA 6)
1. The free trade area between the Community and Israel shall be reinforced
    according to the modalities set out in this Agreement and in conformity with the
    provisions of the General Agreement on Tariffs and Trade of 1994 and of other
    multilateral agreements on trade in goods annexed to the Agreement establishing
    the WTO, hereinafter referred to as GATT.
2. The combined nomenclature and the Israeli Customs tariff shall be used for the
    classification of goods in trade between the Parties.
                                       CHAPTER 2
                                INDUSTRIAL PRODUCTS
                                      Article 3 (AA 7)
The provisions of this Chapter shall apply to products originating in the Community
and in Israel other than those listed in Annex II to the Treaty establishing the
European Community and, as far as products originating in Israel are concerned,
other than those listed in Annex I to this Agreement.
                                     Article 4 (AA 8)
Customs duties on imports and exports, and any charges having equivalent effect,
shall be prohibited between the Community and Israel. This shall also apply to
customs duties of a fiscal nature.
                                               2S
 ---pagebreak---                                 Article 5 (AA 9)
1. (a) The provisions of the present Chapter do not preclude the retention by the '
   Community of an agricultural component in respect of goods originating in
   Israel and listed in Annex II to this Agreement, with the exception of those
   listed in Annex III.
    (b) This agricultural component shall be calculated on the basis of the
   difference between the prices on the Community market of the agricultural
   products considered to have been used in the production of the goods and the
   prices of import from third countries, where the total cost of the basic products
   in question is higher in the Community. The agricultural component may take
   the form of a flat rate amount or an ad valorem duty. In cases where this
   agricultural component has been subject to tarification it will be replaced by
   the respective specific duty.
2. (a) The provisions of the present Chapter do not preclude the retention by
   Israel of an agricultural component in respect of goods originating in the
   Community and listed in Annex IV, with the exception of those listed in Annex
   V.
   (b) This agricultural component is calculated mutatis mutandis on the basis of
   the criteria referred to in paragraph 1 (b). It may take the form of a flat rate
   amount or an ad valorem duty.
    (c) Israel may enlarge the list of goods to which this agricultural component
   applies, provided the goods are other than those listed in Annex V and are
   included in Annex II to this Agreement. Before its adoption, this agricultural
   component shall be notified for examination to the Cooperation Council which
   may take any decision needed.
3. By derogation to Article 4, the Community and Israel may apply to the goods
   listed respectively in Annexes III and V the duties indicated in respect of each
   of the goods.
4. Where, in trade between the Community and Israel, the charge applicable to
   a basic agricultural product is reduced, or as a result of mutual concessions
   for processed agricultural products, the agricultural components applied in
   conformity with paragraphs 1 and 2 may be reduced.
5. The reduction foreseen in paragraph 4, the list of goods concerned and,
   where applicable, the tariff quotas to which the reduction refers, shall be
   established by the Cooperation Council.
6. The list of goods which are subject to a concession in form of a reduced
   agricultural component in trade between the Community and Israel as well as
   the extent of these concessions are set out in Annex VI.
                                   ZG
 ---pagebreak---                                       CHAPTER 3
                             AGRICULTURAL PRODUCTS
                                    Article 6 (AA 10)
The provisions of the present Chapter shall apply to products originating in the
Community and Israel and listed in Annex II to the Treaty establishing the European
Community.
                                    Article 7 (AA 11)
The Community and Israel shall progressively establish a greater liberalization of
their trade in agricultural products of interest to both Parties. From 1 January 2000
the Community and Israel shall examine the situation in order to determine the
measures to be applied by the Community and Israel from 1 January 2001 in
accordance with this objective.
                                    Article 8 (AA 12)
Agricultural products originating in Israel listed in Protocol No. 1 and Protocol No. 3
on importation into the Community shall be subject to the arrangements set out in
those Protocols.
                                    Article 9 (AA 13)
Agricultural products originating in the Community listed in Protocol No. 2 and
Protocol No. 3 on importation into Israel shall be subject to the arrangements set out
in those Protocols:
                                   Article10(AA14)
Without prejudice to the provisions of Article 7 and taking account of the volume of
trade in agricultural products between them and of their particular sensitivity, the
Community and Israel shall examine in the Cooperation Council, product by product
and on an orderly and reciprocal basis, the possibility of granting each other further
concessions.
                                   Article 11 (AA15)
The Community and Israel agree to examine, at the latest three years after entry into
force of the Association Agreement, the possibility of granting each other, on the
basis of reciprocity and mutual interest, concessions in trade in fisheries products.
                                      2 J-
 ---pagebreak---                                          CHAPTER 4
                                 COMMON PROVISIONS
                                      Article 12 (AA 16)
Quantitative restrictions on imports and all measures having equivalent effect shall be
prohibited between the Community and. Israel.
                                      Article 13 (AA 17)  -
Quantitative restrictions on exports and all measures having equivalent effect shall be
prohibited between the Community and Israel.
                                     . Article 14 (AA 18)
1. Products originating in Israel shall not on importation into the-Community be
   accorded a treatment more favourable than that which the Member States apply
   among themselves.
2. Application of the provisions of this Agreement shall be without prejudice to
   Council Regulation (EEC) N° 19f1/91 of 26 June 1991 on the application of the
   provision of Community law to the Canary Islands. .
                                    • Article 15 (AA 19)
1. The Parties shall refrain from any measure or practice of an internal fiscal nature
    establishing, whether directly or indirectly, discrimination between the products of
    one Party and like products originating in the territory of the other Party.
2. Products exported to the territory of one of the Parties may not benefit from
    repayment of indirect internal taxation in excess of the amount of              indirect
    taxation imposed on them directly or indirectly.
                                       Article 16 (AA 20)
1. In the event of specific rules being established as a result of the implementation
    of its agricultural policy or of any alteration of the current rules or in the event of
    any alteration or extension of the provisions relating to the implementation of the
    agricultural policy, the Party in question may amend the arrangements resulting
    from the Agreement in respect of the products which.are the subject of those
     rules or alterations.
2. In such cases the Party in question shall take due account of the interests of the
     other Party. To .this, end the Parties may consult each other within the
     Cooperation Council. -         ,
                                        •2?
 ---pagebreak---                                      Article 17 (AA 21)
1. The Agreement shall not preclude the maintenance or establishment of customs
    unions, free trade areas or arrangements for frontier trade, except insofar as they
    alter the trade arrangements provided for in the Agreement.
2. Consultation between the Community and Israel shall take place within the
    Cooperation Council concerning agreements establishing customs unions or free
    trade areas and, where required, on other major issues related to their respective
    trade policy with third countries. In particular, in the event of a third country
    acceding to the Union, such consultation shall take place so as to ensure that
    account can be taken of the mutual interests of the Community and Israel.
                                     Article 18 (AA 22)
If one of the Parties finds that dumping is taking place in trade with the other Party
within the meaning of Article VI of the GATT, it may take appropriate measures
against this practice in accordance with the Agreement on implementation of Article
VI of the GATT and with its relevant internal legislation, under the conditions and in
accordance with the procedures laid down in Article 21.
                                     Article 19 (AA 23)
Where any product is being imported in such increased quantities and under such
conditions as to cause or threaten to cause:
-. serious injury to domestic producers of like or directly competitive products in the
    territory of one of the Parties, or
-    serious disturbances in any sector of the economy, or
-    difficulties which could bring about serious deterioration in the economic situation
    of a region,
the Community or Israel may take appropriate measures under the conditions and in
accordance with the procedures laid down in Article 21.
                                                  2°)
 ---pagebreak---                      .                   Article 20 (AA 24)
Where compliance with the provisions of Article 13 leads to:
      (i) re-export towards a third country against which the exporting Party maintains,
           for the product concerned, quantitative export restrictions, export duties, or
            measures having equivalent effect, or
      (ii) a serious shortage, or threat thereof, of a product essential to the exporting
            Party;
and where the situations above referred to give rise, or are likely to give rise to major
difficulties for the exporting Party, that Party may take appropriate measures under
the conditions and in accordance with the procedures laid down in Article 21. The
measures shall be non-discriminatory and be eliminated when conditions no longer
justify their maintenance.
                                        Article 21 (AA 25)
1. In the event of the Community or Israel subjecting imports of products liable to
     give rise to the difficulties referred to in Article 19, to an administrative procedure,
     the purpose of which is to provide rapid information on the trend of trade flows, it
     shall inform the other Party.
2. In the cases specified in Articles 18, 19 and 20, before taking the measures
     provided for therein, or, as soon as possible in cases to which paragraph 3(d)
     applies, the Party in question shall supply the Cooperation Council with all
     relevant information required for a thorough examination of the situation with a
     view to seeking a solution acceptable to the Parties.
     In the selection of appropriate measures, priority must be given to those which
     least disturb the functioning of the Agreement.
     The safeguard measures shall be notified immediately to the Cooperation Council
     and shall be the subject of periodical consultations within the Cooperation
     Council, particularly with a view to their abolition as soon as circumstances
     permit.
3. For the implementation of paragraph 2, the following provisions shall apply:
     (a) as regards Article 18, the Cooperation Council shall be informed of the
           dumping case as soon as the authorities of the importing Party have initiated
           an investigation. If no end has been put to the dumping or no other
           satisfactory solution has been reached within thirty days of the notification
           being made, the importing Party may adopt the appropriate measures;
     (b) as regards Article 19, the difficulties arising from the situation referred to in
           that Article shall be referred for examination to the Cooperation Council, which
           may take any decision needed to put an end to such difficulties;
                                                  3o
 ---pagebreak---         if the Cooperation Council or the exporting Party has not taken a decision
        putting an end to the difficulties or no other satisfactory solution has been
        reached within thirty days of the matter being referred, the importing Party
       may adopt the appropriate measures to remedy the problem. These measures
        must not exceed the scope of what is necessary to remedy the difficulties
        which have arisen;
   (c) as regards Article 20, the difficulties arising from the situations referred to in
        that Article shall be referred for examination to the Cooperation Council;
        the Cooperation Council may take any decision needed to put an end to the
        difficulties. If it has not taken such a decision within thirty days of the matter
        being referred to it, the exporting Party may apply appropriate measures on
        the exportation of the product concerned;
    (d) where exceptional circumstances requiring immediate action make prior
        information or examination, as the case may be, impossible, the Party
        concerned may, in the situations specified in Articles 18, 19 and 20 apply
        forthwith such precautionary measures as are strictly necessary to remedy the
        situation, and shall inform the other Party immediately.
                                       Article 22 (AA 26)
When one or more Member States of the Community or Israel is in serious balance of
payments difficulties or under threat thereof, the Community or Israel, as the case
may be, may, in conformity with the conditions laid down within the framework of the
GATT and with Articles VIII and XIV of the Statutes of the International Monetary
Fund, adopt restrictive measures which shall be of limited duration and may not go
beyond what is necessary to remedy the balance of payments situation. The
Community or Israel, as the case may be, shall inform the other Party forthwith and
present to the other Party, as soon as possible, a time schedule for their removal.
                                     ' Article 23 (AA 27)
Nothing in this Agreement shall preclude prohibitions or restrictions on imports,
exports or goods in transit justified on grounds of public morality, public policy or
public security, of the protection of health and life of humans, animals or plants, of
the protection of national treasures possessing artistic, historic or archaeological
value, of the protection of industrial and commercial property and of regulations
concerning gold and silver. Such prohibitions or restrictions shall not, however,
constitute a means of arbitrary discrimination or a disguised restriction on trade
between the Parties.
                                       Article 24 (AA 28)
The concept of "originating products" for the application of the provisions of the
present Title and the methods of administrative cooperation relating to them are set
out in Protocol No. 4.
                                                3-i
 ---pagebreak---                                              TITLE III
                               TRADE RELATED PROVISIONS
                                           CHAPTER 1
                                         COMPETITION
                                            Article 25
1. The following are incompatible with the proper functioning of the Agreement, in so
      far as they may affect trade between the Community and Israel:
(i) all 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;
(ii) abuse by one or more undertakings of a dominant position in the territories of the
      Community or Israel as a whole or in a substantial part thereof;
(iii) any public aid which distorts or threatens to distort competition by favoring certain
      undertakings or the production of certain goods.
2. Until the necessary rules for implementation of paragraph 1 are adopted
      according to the provisions of the Association Agreement, the provisions of the
      Agreement on interpretation and application of Articles VI, XVI and XXIII of the
      General Agreement on Tariffs and Trade shall be applied as the rules for the
      implementation of paragraph 1 (iii).
3. Each Party shall ensure transparency in the area of public aid, inter alia by
      reporting annually to the other Party on the total amount and the distribution of
      the aid given and by providing, upon request, information on aid schemes. Upon
      request by one Party, the other Party shall provide information on particular
      individual cases of public aid.
4. With regard to agricultural products referred to in Title II, Chapter 3, paragraph
      1 (Hi) does not apply.
5. If the Community or Israel considers that a particular practice is incompatible with
      the terms of the first paragraph of this Article, and if such practice causes or
      threatens to cause serious prejudice to the interest of the other Party or material
      injury to its domestic industry, including its services industry, it may take
      appropriate measures after consultation within the Cooperation Council or after
      thirty working days following referral for such consultation.
                                                      3> £
 ---pagebreak---     With reference to practices incompatible with paragraph 1(iii) of the present
    Article, such appropriate measures, when the GATT is applicable to them, may
    only be adopted in accordance with the procedures and under the conditions laid
    down by the GATT or by any other relevant instrument negotiated under its
    auspices and applicable to the Parties.
6. The Parties shall exchange information taking into account the limitations
    imposed by the requirements of professional and business secrecy.
                                   Article 26 (AA 37)
1. The Member States and Israel shall progressively adjust any State monopolies of
    a commercial character, so as to ensure that, by the end of the fifth year following
    the entry into force of the Association Agreement, no discrimination regarding the
    conditions under which goods are procured and marketed exists between
    nationals of the Member States and Israel.
2. The Cooperation Council will be informed about the measures adopted to
    implement this objective.
                                   Article 27 (AA 38)
With regard to public undertakings and undertakings to which special or exclusive
rights have been granted, the Parties take the necessary measures so as to ensure
that as from the fifth year following the date of entry into force of the Association
Agreement there is neither enacted nor maintained any measure distorting trade
between the Community and Israel to an extent contrary to the Parties' interests. This
provision should not obstruct the performance in law or in fact of the particular tasks
assigned to them.
                                      CHAPTER 2
           INTELLECTUAL, INDUSTRIAL AND COMMERCIAL PROPERTY
                                   Article 28 (AA 39)
1. Pursuant to the provisions of this article and of Annex VII, the Parties shall grant
    and ensure adequate and effective protection of intellectual, industrial and
    commercial propertyrightsin accordance with the highest international standards,
    including effective means of enforcing such rights.
 ---pagebreak---    The implementation of this Article and of Annex VII shall be regulariy reviewed by
   the Parties. If problems in the area of intellectual, industrial and commercial
   property affecting trading conditions were to occur, urgent consultation within the
   Cooperation Council shall be undertaken, at the request of either Party, with a
   view to reaching mutually satisfactory solutions.
                                     CHÀPTER3
                             CUSTOMS COOPERATION
                                  Article 29 (AÂ 49)
1.   The Parties commit themselves to developing customs cooperation to ensure
     that the provisions on trade are observed. For this purpose they establish a
     dialogue on customs matters;
2.   Cooperation will focus on the simplification and computerization of customs
     procedures, which will, in particular, take the form of exchange of information
     among experts and vocational training;
3.   Mutual assistance between administrative. authorities in custom matters shall
     take place in accordance with the provisions of Protocol No. 5.
                                       '^7
 ---pagebreak---                                          TITLE IV
                INSTITUTIONAL, GENERAL AND FINAL PROVISIONS
                                         Article 30
The Cooperation Council set up by the Agreement between the European Economic
Community and the State of Israel signed on 11 May 1975, as modified by the
additional protocol signed on 8 February 1977, shall perform the duties assigned to rt
by the present Agreement until the Association Council and the Association
Committee provided for in Articles 67 and 70 of the Association Agreement are
established.
                                    Article 31 (AA68)
1. The Cooperation Council shall consist of the members of the Council of the
    European Union and members of the Commission of the European Communities,.
    on the one hand, and members of the Government of the State of Israel, on thé
    other.
2; The Cooperation Council shall establish its rules of procedure.
3. Members of the Cooperation Council may arrange to be represented in
    accordance with the provisions laid down in its rules of procedure.
4. The Cooperation Goundl shall be presided in turn by a member of the Council of
    the European Union and a member of the Government of. the State of Israel, .fn
    accordance with the provisions laid down in its rules of procedure;
                                    Article 32 (AA 75)
1. Each of the Parties may refer to the Cooperation Cound! any dispute relating to
    the application or interpretation of this Agreement
2. The Cooperation Coundl may settle the dispute by means of a dedsion.
3. Each Party shall be bound to take the measures involved in carrying out the
  . decision referred to in paragraph 2..
4. in the event of it not being possible to settle the dispute in accordance with
     paragraph 2 of this Artidè, either Party may notify the other of the appointment of
     an arbitrator; the other Party must then appoint a second arbitrator within two
     months. For the. application of this procedure, the Community and the Member
     States shall be deemed to be one party to the dispute:
     The Cooperation Council shall appoint a third arbitrator. -
                                         •      3r
 ---pagebreak---     The arbitrators' decisions shall be taken by majority vote.
     Each party to the dispute must take the steps required to implement the decision
    of the arbitrators.
                                      Article 33 (AA 76)
Nothing in the Agreement shall prevent a Party from taking any measures:
(a) which it considers necessary to prevent the disclosure of information contrary to
    its essential security interests;
(b) which relate to the production of, or trade in, arms, munitions or war materials or
    to research, development or production indispensable for defence purposes,
     provided that such measures do not impair the conditions of competition in
     respect of products not intended for specifically military purposes;
(c) which it considers essential to its own security in the event of serious internal
    disturbances affecting the maintenance of law and order, in time of war or serious
     international tension constituting threat of war or in order to carry out obligations it
    has accepted for the purpose of maintaining peace and international security.
                                      Article 34 (AA 77)
In the fields covered by this Agreement and without prejudice to any special
provisions contained therein:
-   the arrangements applied by Israel in respect of the Community shall not give
    rise to any discrimination between the Member States, their nationals or their
    companies or firms;
-   the arrangements applied by the Community in respect of Israel shall not give rise
    to discrimination between Israeli nationals or its companies or firms.
                                      Article 35 (AA 79)
1. The Parties shall take any general or specific measures required to fulfil their
    obligations under the Agreement. They shall see to it that the objectives set out in
    the Agreement are attained.
2. If either Party considers that the other Party has failed to fulfil an obligation under
    the Agreement, it may take appropriate measures. Before so doing, except in
    cases of special urgency, it shall supply the Cooperation Council with all relevant
    information required for a thorough examination of the situation with a view to
    seeking a solution acceptable to the Parties.
                                               36
 ---pagebreak--- In the selection of measures priority must be given to those which least disturb the
functioning of the Agreement. These measures shall be notified immediately to the
Cooperation Coundl and shall be the subject of consultations within the Cooperation
Council if the other Party so requests.
                                     Article 36 (AA 80)
Protocols 1 to 5 and Annexes I to VII shall form an integral part of this Agreement.
Declarations and exchanges of letters shall appear in the Final Act, which shall form
an integral part of this Agreement.
                                          Article 37
This Agreement shall be applicable until the entry in to force of the Euro-
Mediterranean Association Agreement signed on 20 November 1995.
 Each of the Parties may denounce the Agreement by notifying the other Party. The
Agreement shall cease to apply six months after the date of such notification
                                     Article 38 (AA 83)
This Agreement shall apply, on the one hand, to the territories in which the Treaties
establishing the European Community, and the European Coal and Steel Community
are applied and under the conditions laid down in those Treaties and, on the other
hand, to the territory of the State of Israel.
                                          Article 39
This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish,
 French, German, Greek, Italian, Portuguese, Spanish, Swedish,             and Hebrew
languages, each of these texts being equally authentic.
                                          Article 40
This Agreement will be approved by the Parties in accordance with their own
 procedures.
This Agreement shall enter into force on the first day of the second month following
 the date on which the Parties notify each other that the procedures referred to in the
first paragraph have been completed.
 Upon its entry into force this Agreement shall replace Articles 2 to 9,11 to 17 and 20
 paragraph 1, 21 paragraph 1, 22 and 23 to 28 of the Agreement between the
 European Economic Community and the State of Israel, as well as Articles 1 to 8, 10
 to 17,18 to 20 and 21 to 26 of the Agreement between the European Coal and Steel
 Community and the State of Israel, signed in Brussels on 1T May 1975.
                                               S ^
 ---pagebreak---                                    ATTACHEMENTS
Protocols 1 to 5
Annexes I to VII
Joint Declarations on Articles 1,2,5,28,31,32
Joint Declaration on veterinary matters and on Protocol 4
Community Declarations on Articles 24,25
Exchange of letters on bilateral outstanding issues, imports of fresh cut flowers and
flower buds, implementation of the Uruguay Round
                                           1> Z
 ---pagebreak---                                  ANNEX I
                 List of products referred to in Article 3
CN CODE      DESCRIPTION
ex 3502      Albumins, albuminates and other albumin derivatives:
ex 3502 10    Egg albumin:
             -Other:
  350210 91  — dried (for example in sheets, scales, flakes, powder)
  350210 99     Other
ex 3502 90    Other
               Albumins, other than egg albumin:
             — Milk albumin (lactalbumin):
  3502 90 51    dried (for example in sheets, scales, flakes, powder)
  3502 90 59    Other
                                         39
 ---pagebreak---                                            ANNEX H
                  LIST OF PRODUCTS REFERRED TO IN ARTICLE 5
    CN CODE     I          "                              DESCRIPTION
0403               Buttermilk, curdled milk and cream, yogurt, képhir and other fermented or acidified
                   milk and cream, whether or not concentrated or containing added sugar or other
                  sweetening matter or flavoured or containing added fruit, nuts or cocoa :
0403 10 51 to     - Yoghurt, flavoured or containing added fruit, nuts or cocoa
040310 99
0403 90 71 to     - Other, flavoured or containing added fruit, nuts or cocoa
0403 90 99
0710 40 00        Sweet com (uncooked or cooked by steaming or boiling in water), frozen
0711 90 30        Sweet com provisionally preserved (for example, by sulphur dioxide gas, in brine, in
                  sulphur water or in other preservative solution), but unsuitable in that state for
                  immediate consumption
ex 1517           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 n° 1516:
1517 10 10        - Margarine, excluding liquid margarine, containing more than 10% but not more
                  than 15% by weight of milk fats
1517 90 10        - Other, containing more than 10% but not more than 15% by weight of milk fats
ex 1704           Sugar confectionery (including white chocolate), not containing cocoa; excluding
                  liquorice extract containing more than 10% by weight of sucrose but not containing
                  other added substances, falling within CN code 1704 90 10
1806              Chocolate and other food preparation containing cocoa
ex 1901           Malt extract; food preparations of flour, meal, starch or malt extract, not containing
                  cocoa powder or containing cocoa powder in a proportion by weight of less than
                  50%, not elsewhere specified or included; food preparations of goods Nos 0401 to
                  0404, not containing cocoa powder or containing cocoa powder in a proportion by
                  weight of less than 10%, not elsewhere specified or included, excluding
                  preparations falling within CN code 1901 90 91
                                                                                                            •
ex 1902           Pasta, excluding stuffed pasta falling within CN codes 1902 20 10 and 1902 20 30;
                  couscous, whether or ot prepared
1903              Tapioca and substitutes therefor prepared from starch, in the form of flakes, grains,
              .   pearls, sittings or similar forms                    •
1904              Prepared foods obtained by the swelling or roasting of cereals or cereal products
                  (for example cornflakes); cereals other than maize (com), in grain form, precooked
                  or otherwise prepared
1905              Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing
                  cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use,
                  sealing wafers, rice paper and similar products             i                            _ _
                                              40
 ---pagebreak---      CODE NC    I                                      "DESCRIPTION
 2001 90 30       Sweet com (Zea mays var. saccharata), prepared or preserved by vinegar or acetic
                  acid
 2001 90 40       Yams, sweet potatoes and similar edible parts of plants containing 5% or more by.
  •               weight of starch, prepared or preserved by vinegar or acetic acid
.2004 10 91       Potatoes in the form or flour, meal or flakes, prepared or preserved otherwise than
                  by vinegar or acetic acid, frozen           _________„,
 2004 90 10       Sweet com (Zea mays var. saccharata), prepared or preserved otherwise than by
                  vinegar or acetic acid, frozen
 2005 20 10       Potatoes in the form or flour, meal or flakes, prepared or preserved otherwise than
                  by vinegar or acetic acid, not frozen                          '
 2005 80 00       Sweet com (Zea mays var. saccharata), prepared or preserved otherwise than by
                  vinegar or acetic acid, not frozen                      _______
 2008 92 45       Preparations of the Musli type based on unroasted cereal flakes
 2008 99 85       Maize (com), other than sweet com (Zea mays var. saccharata) otherwise prepared
                  or preserved, not containing added spirit or added sugar
 2008 99 91       Yams, sweet potatoes and similar edible parts of plants, containing 5% or more by
                  weight of starch, otherwise prepared or preserved, not containing added spirit or
                  added sugar                                   '
 2101 10 98       Preparations with a basis of coffee
 2101 20 98       Preparations with a basis of tea or maté
 2101 30 19       Roasted coffee substitutes excluding roasted chicory
 2101 30 99       Extracts, essences and concentrates of roasted coffee substitutes excluding those
                  of roasted chicory                 _______________
 2102 10 31 to    Bakers'yeasts
 2102 10 39                                                        _ _ _ _
 ex 2103       * Sauces and preparations therefor
                  —Mayonnaise
 2105             Ice cream and other edible ice, whether or not containing cocoa
 ex 2106          Food preparations not elsewhere specified or included other than those falling within
                  CN codes 2106 10 20 and 2106 90 92 and other than flovoured or coloured sugar
                  syrups                   ;             _______.,_,.._„____„_„
 2202 90 91       Non-alcoholic beverages, not including fruit or vegetable juices of CN code 2009,
 2202 90 95       containing products of CN code 0401 to 0404 or fat obtained from products of CN
 2202 90 99       code 0401 to 0404
 2905 43 00       Mannitol                                            "~     _2___"
 2905 44          D-Glucitol (sorbitol)                                        "      _
 ex 3505 10       Dextrins and other modified starches, excluding esterified and etherified starches of
                  CN code 3505 10 50
 3505 20          Glues based on starches or on dextrins or other modified starches
 3809 10          Finishing agents, dye carriers to accelerate the dyeing or fixing of dyestuffs and
                  other products and preparations (for example, dressings and mordants), of a kind
                   used in the textile, paper, leather or like industries, not elsewhere specified or
                  included
 3823 60           Sorbitol other than that of CN code 2905 44
                                             41
 ---pagebreak---                                                        ANNEXJ11
                           LIST OF PRODUCTS REFERRED TO IN ARTICLE 5
CN Code              Descriptions of goods                                                 Duty applicable (1)
3501                 Casein, caseinates and other casein derivatives;
                     casein glues:                   '
3501 10              - Casein:
3501 1010            - For the manufacture of regenerated textile fibres                  0%
                 _J2)                                   _
350110 50            - For industrial uses other than manufacture of                      3%
                     foodstuffs or fodder (2>
350110 90            -Other                                                                12%
3501 90              - Other:
3501 90 90         | -- Other                                                              I 8%
(1 ) In case where the duties set out in this column exceed the duties notified to GATT the latter rates will apply.
(2) Entry under this subheading is subject to conditions laid down in the relevant Community iprovisions.
                                                             42
 ---pagebreak---                                            ANNEX IV
                 LIST OF PRODUCTS REFERRED TO IN ARTICLE 5 (2)
 CN CODE        1 DESCRIPTION                                          "~
 19.02            Pasta and couscous:                               ___ ___
           A      - of durum wheat
           B      -other
 19.05.10         Crisp bread
 19.05.2090       Gingerbread and the like, not especially for diabetics :
           A      - Containing over 15% by weight of flour from cereals other than
___^                wheat in relation to the total floor content;
           B      -Other                                  _
 ex 3000 A        - Waffles and wafers :
           AI     -- Not filled, whether or not coated :
           A1 a    —Containing over 15% by weight of flour from cereals other than
                      wheat in relation to the total floor content;
           A1b    —Other                                                             .
           A2     -- Other
           A2a    —Containing not less than 1,5% milk fats or not less than 2.5% of
                      milk proteins;
           A2b     —Other
 19.05.4010       Rusks, containing added sugar, honey, other sweetening matter, eggs,
                  fat, cheese, fruit, cocoa or similar
           A      - Containing over 15% by weight of flour from cereals other than
                    wheat in relation to the total flour content;
           B      - Other
 19.05
  ex 3000)B       - Other bakers' wares, containing added sugar, honey, other
 + 9019)             sweetening matter, eggs, fat, cheese, fruit, cocoa or similar :
           B1     - Containing added eggs, not less than 10% by weight;
           B2     - Containing added dried fruits or nuts:
           B2a    — Containing not less than 1,5% milk fats or not less than 2.5%
                       milk proteins; See Annex V;
           B2b    — Other.
           B3     -- Containing less than 10% by weight of added sugar and not
                I     containing added eggs; dried fruits or nuts :
                                                43
 ---pagebreak--- CN CODE            1 DESCRIPTION                                         ~
          B3a(i)     — Containing over 15% by weight or flour from cereals other
                           than wheat in relation to the total flour content;
         B3a(ii)     —Other
          B3b        — Other                ....
         B3b(i)  _• — Containing over 15% by weight of flour from cereals other
                          than wheat in relation to the total flour content;
         B3b(ii)     — Other
           B4        -- Other                                                 "
           B4a       — Containing not less than 1,5% milk fats or not less than 2,5%
                          milk proteins; see Annex V;
           B4b       — Other                                      _______
21.05                Ice cream and other edible ice, wheter or not containing cocoa:
           A         - containing no milk fats or containing less than 3% by weight of
                        such fats;                                                         .
           B         - containing 3% or more by weight of milk fats but less than
                       7%;               ,                                      _____
           C         - containing 7% or more by weight of milk fats.
ex 22.07.1050        Alcohol obtained from grape or grape wine of a stength of 80%
                     or higher, used in the production of alcoholic beverages
       ex 1099       Alcohol obtained from grape or grape wine, of a stength of 80%
                     or higher, other
22.08.2090           Spirits obtained by distilling grape wine or grape marc, the price of which
                     is up to $0.05 per cl. and containing less than 17% alcohol.
35.02.1000           Egg albumin:                                               .
          A          Dried                       ;
           B       I Other                                                 „ _ _
                                                   44
 ---pagebreak---                                                       ANNEX V
                                 LIST OF PRODUCTS REFERRED TO IN ARTICLE 5
Israeli Customs        Descriptions of goods                                                 Duty applicable (3)
code
1704                   Sugar confectionery (including white chocolate), not
                       containing cocoa :
170410                 - Chewing gum, whether or not sugar-coated:
                          - containing 60% or more by weight of
                             sucrose (including invert sugar expressed as
                             sucrose)                                                        0.075 US$/kg(4)
                          - Other
1704 90                  - Other
                           -- Other
1806                   Chocolate and other food preparation containing                       0%
                       cocoa
ex 1901                 Preparations of flour, meal, starch or malt extract, of
ex 2004                 a kind used as infant food or for dietetic or culinary
ex 2005                 purposes containing less than 50% by weight of
ex 2103                 cocoa, excluding dietetic preparations made of soya-
ex 2104                 bean flour, containing soya-bean oil and other
                        vegetable oil, carbohydrates and salt, and dietetic
                        preparations with a basis of flour having no gluten :
                        - of flour, meal, starch or mart extract
 1901.1020              - of flour, meal, starch or malt extract                                8%
 1901.2020              - of flour, meal, starch or malt extract                                8%
 1901.9030                                                                                      8%
                        - products of flour or meal
2004.1010               - products of flour or meal                                             8%
2004.9010                                                                                       8%
                        -  products   of flour or  meal
2005.2010               -  products   of flour or  meal                                         8%
2005.4010               -  products   of flour or  meal                                         8%
2005.5910               -  products   of flour or  meal                                         8%
2005.9010                                                                                       8%
                        - of flour, meal, starch or malt extract
2103.9020               - of flour, meal, starch or mart extract                                8%
 2104.1010                                                                                      8%
 (3) In case where the duties set out In this column exceed the duties notified to GATT the latter rates will apply.
 (4) Within an annual quota of 5,000 tonnes this duty will be reduced to 0.0375 US$/kg
                                                             45
 ---pagebreak---  Israeli Customs        Descriptions of goods                          "                     ["Duty applicable (5)
 code
 1904 10                - prepared foods obtained by the swelling or roasting                  8%
                        of cereals or cereal products
 3505                   Dextrins and other modified starches (for example,
                        pregelatinized or esterified starches) ; glues based
                        on starches, or on dextrins or other modified
                        starches with the exception of starches:
          * . '         - Dextrins and other moified starches:                     '       ,
 3505.10                - Ethzrified or esterified starches;
 3505.10.30             - Other modified starches and dextrins;                                 8%
 3505.10.90            -Glues.                                                                  8%
 3505.20.00                                 ;                                                | 8%
(5) In case where the duties set out in this column exceed the duties notified to GATT the latter rates will apply.
                                                            46
 ---pagebreak---                                                       Annex VI
Table 1 : Imports into the Community of the following goods originating in Israel
              shall be subject to the concessions set out below
CN Code                             Description of good                          Annual           Concession within limits
                                                                                  quota                     of quota
                                                                                 1,000 kg
071010 40                Sweet com, frozen                                   10,600(6)           30% reduction of the
2004 90 10                                                                                       agricultural component
                                                    i
0711 90 30               Sweet com, not frozen                               5,400 (7)           30% reduction of the
2001 90 30                                                                                       agricultural component
2005 80 00
1704 90 30               White chocolate                                      100                30% reduction of the .
                                                                                                 agricultural component
1806                     Chocolate and other food preparation                2,500                15% reduction of the
                         containing cocoa                                                         agricultural component
ex 1901                  Baby food containing milk and milk                   100                 30% reduction of the
ex 2106                  products                                                                 agricultural component
1904                     Prepared foods obtained by the                      200                  30% reduction of the
                         swelling or roasting of cereals or cereal                                agricultural component
                         products (for example cornflakes);
                         cereals other than maize (com), in grain
                         form, precooked or otherwise prepared
1905                     Bread, pastry, cakes, biscuits and other             3,200               30% reduction of the
                         bakers' wares, whether or not                                            agricultural component
                         containing cocoa; communion wafers,
                         empty cachets of a kind suitable for
                         pharmaceutical use, sealing wafers,
                         rice paper and similar products
(6) This quota will be reduced to 9,275 tonnes for thefirstyear of implementation of this concession and
     to 9,940 tonnes for the second year. ~
(7) This quota will be reduced to 4,725 tonnes for the first year of implementation of this concession and
    to 5,060 tonnes for the second year.
                                                              47
 ---pagebreak--- Ia__|fi_2: Imports into Israel of the following goods originating in the Community
           shall be subject to the concessions set out below
CN Code                      Description of good                Annual       Concession within
                                                                 quota          limits of quota
                                                               1,000 kg
1902                Pasta                                    unlimited    binding of agricultural
                                                                          componenent at 0.25
                                                                          US$/kg
ex 1905            Bread, pastry, cakes, biscuits and other  unlimited    Binding at         0.10
                   bakers' wares, whether or not                          US$/kg
                   containing cocoa; communion wafers,
                   empty cachets of a kind suitable for
                   pharmaceutical use, sealing wafers,
                    rice paper and similar products:
                   - not containing dairy products
ex 1905            Bread, pastry, cakes, biscuits and other  unlimited    Binding at         0.25
                   bakers' wares, whether or not                          US$/kg
                   containing cocoa; communion wafers,
                   empty cachets of a kind suitable for
                   pharmaceutical use, sealing wafers,
                   rice paper and similar products:
                   - containing dairy products
2105               Ice-cream                                 500          30% reduction of the
                                                                          agricultural component
ex 2207 10         Undenatu rated ethyl alcohol obtained     unlimited    binding at 2.75 US$/Iitre
                   from grape or grape wine, of an                        of alcohol
                   alcoholic strength by volume of 80% or
                   higher, whether or not used in the
                   production of alcoholic beverages
ex 2208 20         Spirits obtained by distilling grape wine unlimited    binding at 2.75 US$/litre
                   or grape marc of an alcoholic strength                 of alcohol
                   by volume of 17% or higher, at a price
                   which is not higher than US $ 0.05 per
                   cl.
                                                   48
 ---pagebreak--- CN Code                            Description of good                Annual     Concession within
                                                                       quota       limits of quota
                                                                     1,000 kg
ex2208 20                Spirits obtained by distilling grape wine 2000hpa(8) binding at 0%
                         or grape marc of an alcoholic strength
                         by volume of 17% or higher, at a price
                         which is higher than US $ 0.05 per cl.
320510                   Egg albumin                               50         exemption from
                                                                              agricultural component
                                                                              binding at 2 US$/kg
                                                                   unlimited
(8) hectolitres pure alcohol
                                                         49
 ---pagebreak---                                         ANNEX VII
                    Intellectual. Industrial and Commercial Property
1. By the end of the third year after the entry into force of the Association
    Agreement, Israel shall accede the following multilateral conventions on
    intellectual, industrial and commercial property rights to which Member States
    are parties or which are de facto applied by Member States:
     -Berne Convention for the Protection of Literary and Artistic Works (Paris
       Act, 1971);
     -Madrid Agreement concerning the International Registration of Marks
       (Stockholm Act, 1967 and amended in 1979);
     -Protocol relating to the Madrid Agreement concerning the International
       Registration of Marks (Madrid, 1989);
     -Budapest Treaty of the International Recognition of the Deposit of
       Microorganisms for the Purposes of Patent Procedure (1977, amended in
       in 1980).
     -Patent Cooperation Treaty (Washington, 1970, amended in 1979 and
      modified in 1984);
     The Cooperation Council may decide that this paragraph shall! apply to other
     multilateral conventions in this field.
2. Israel shall ratify, by the end of the second year after the entry into force of
   the Agreement, the International Convention for the Protection of Performers,
   Producers of Phonograms and Broadcasting Organisations (Rome, 1961).
3. The Parties confirm the importance they attach to the obligations arising from
   the following multilateral conventions :
    -Paris Convention for the Protection of Industrial Property (Stockholm Act,
      1967, and amended in 1979);
    -Nice Agreement concerning the International Classification of Goods and
      Services for the purposes of the Registration of Marks (Geneva, 1977, and
      amended in 1979);
    -International Convention for the Protection of New Varieties of         Plants
      (UPOV) (Geneva Act, 1991 ).
                                                50
 ---pagebreak---                                     PROTOCOL NO 1
   CONCERNING THE ARANGEMENTS APPLICABLE TO THE IMPORTATION
   JNTOTHE COMMUNITY OF AGRICULTURAL PRODUCTS ORGINATING IN
                                         ISRAEL
                                         Article 1
1.  The products listed in the Annex, originating in Israel, shall be admitted for
    importation into the Community, according to the conditions contained hereafter and
    in the Annex.
2.  a)        Customs duties are eliminated or reduced as indicated in column "a".
    b)        For certain products, for which the Common Customs Tariff foresees the
              application of an ad valorem duty and a specific duty, the rates of reduction,
              indicated in columns "a" and "c", only apply to the ad valorem duty. However,
             for the products corresponding to the Codes 020722, 020742 and 220421,
             the duty reductions are applied as indicated in column "e".
3.  For certain products, customs duties are eliminated within the limit of the tariff quotas
    listed in column "b" for each of them.
    For the quantities imported in excess of the quotas, the common customs duties are,
    according to the product concerned, applied in full or reduced, as indicated in column
4. For certain products exempt from customs duties, reference quantities are fixed as
    indicated in column "d".
    Should the volume of imports of one of the products exceed the reference quantity,
   the Community having regard to an annual review of trade flows which it shall carry
    out, may make the product in question subject to a Community tariff quota, the
    volume of which shall be equal to the reference quantity. In that case, for quantities
    imported in excess of the quota, the common customs duty is, according to the
    product concerned, applied in full or reduced as indicated in column "c".
5.  For some of the products indicated in paragraph 3 and in column "e", the tariff
    quotas are increased from 1st January 1997 to 1st January 2000 on the basis of
    four equal instalments, each corresponding to 3% of these amounts.
6.  As indicated in column "e", for some products other than those indicated in
    paragraphs 3 and 4, the Community may fix a reference quantity as provided for in
    paragraph 4 if, in the light of the annual review of trade flows which it shall carry out,
    it establishes that the volume of imports of a product or products threatens to cause
    difficulties on the Community market. If, subsequently, the product is subjected to a
    tariff quota under the conditions set out in paragraph 4, for quantities imported in
    excess of the quota, the customs duty is, according to the product concerned,
    applied in full or reduced, as indicated in column "c".
                                             51
 ---pagebreak---                                                                                                           ANNEX TO PROTOCOL 1
                                                                                            A                     B                      c                0    ~                                 ,    B .    . •
  CN Cod«(2X3)                              Description^                           Reduction of the         Term" quota          Reduction of        Reference                             Specme provisions
                                                                                          MFN                                 the custom* duty quantify
                                                                                   customs duty(1)                             beyond current
                                                                                                              Volume               or possible
                                                                                                                                t arrff-quota (1)
                                                                                            %                      t                     %                t
                                                                                                                                                                            For 1400 Ions the foflowiiKj duty r«tes will apply:
     0207 2210      Turkey», not cut In pieces, frozen                               son column t!              1400                      0                                                        170rcu/t
     0207 2290                                                                                                                                                                                     I860CU/I
      0207 4221     Turkeys cuts and offal other than liver, frozen                                                                                                                            . 134ecu/1
      0207 4231                                                                                                                                                                                     93ecti/t
      0207 4241                                                                                                                                                                                    339ecu/l
      0207 4251                                                                                                                                                                                    127CCU/I
      0207 4259                                                                                                                                                                                    230ocu/t
      020731 10     Fatty liver of geese                                                   100                                           0                -
         0601        Bulbs and the like and other live plants                              too                                            0                -               Subject to the provisions ol Protocol 1, article 1 a 6
         0602
t                                                                                                                                                                 Subject to compliance with conditions agreed upon by Exchange 0?
        060310       Cut flowers arid flower buds, fresh                                   JOO                 19500                      0               -       Letters
                                                           -
i e*060310 69 Other cut flowers and flower buds, tresh                                     100                  5000                      0
                     from 1 November to 15 April
      060390 00      Dried flowers                                                        100                    too                     0                •
   • x 060410 90 Mosses and lichens other than reindeer moss,
                     fresh                                                                 100                     •                      0                                Subject lo the provisions ol Protocol 1. article 1 à 6
        0604 91      Foliage, branches and other parts of plants,                          too                                            0                                Subject to the provisions of Protocol 1, article 1ft6
                     fresh
       0604 9910
                                                                                 '                     !                                                                   Subject to the provisions ol Protocol 1. article 1 à 6
                     Follage.not further prepared than dried                     j         too          j                  |             0
                                                                                                        t                  i
   88 0701 90 51 New potatoes, from Î January fo 3! March
                                                                                                        i                   I                       !          i
                                                                                           '00          1      20000       j              o        j            !          subject io the provisions of Protocol 1 nrtirle î à 5
                                                                                                       i!                  !i                     !i           i
                                                                                                                                                               1             .            .
        0702 00     Tomatoes, fresh or chilled                                                                                           n
                                                                                          too           j       tooo       1                       1      •    !                                                                   1
                                                                                                        I            I               I             !                                                                        •      !
 (1) • Duty reduction only applies to "ad valorem* customs duties except lor the products corresponding to the following codes 020? 22 : 0207 42 and 2204 21.
 {2): CN codes corresponding to Reg 1359/95. L 142 of 26 June 1995
 (3); Notwithstanding the rules for interpretation ol the combined nomend.i'' -» '*e wording for the d»$cHD?r>^ of tne product?: 1?. \--. be considered as having no more than sn indicative '»atue. the preferential
      scheme being determined, within the context of this Annex, by the coverage oi ihe CN codes Where "ex" CN codes are indicated, the preterenliai scheme is to be determined by the application of
      the CN codes and corresponding description taken tooelher
 ---pagebreak---                                                                                              A                     B                     C         I     D                                        E                            '
   CN Code(2K3)                               Description                            Reduction of the       Tariff quota          Reduction of      Référença                           Specific provisions
                                                                                           M FN                                the customs duty quantity
                                                                                    customs duty (1)                            beyond current
                                                                                                                Volume             or possible
                                                                                                                                 tariff-quota (1)
                                                                                             %                     1                     %               t
    ex 0703 10 11 Onions, from IS February to 15 May                                        100                  13400                   60               •
    ex 0703 1019
    ex 0709 90 90 Wild onions (Muscarl eomosum),
                     from 15 February to 15 May
                                                                                                                                                                                     ,
    ex 0704 90 90    Chinese cabbage, from 1 Nov to 31 March                                100                  1000                     0              - ,            Subject to the provisions ol protocol t. article 1 è 5
      ex 070511      Crisp head cabbage lettuce,                                            100                   300                     0               -             Subject to Ihe provisions ol protocol 1. article 1 è 5
                     from 1 November to 31 March
   ex 0706 10 00 Carrots, from 1 January to 30 April                                        100                  6100                    40              -              Subject to the provisions ol protocol 1, article 1 è 5
    ax 0709 30 00     Aubergines, from 1 December to 30 April                               too                    -                     60            1440
    ex 0709 40 00    Stick celery, from 1 January to 30 April                               100                  13000                  50               •
      07096010       Sweet peppers                                                          100                  6900                   40               •
I
j            "
|     0709 90 90     Other frulta and vegetables                                            100                  2000                    0               -              Subject to the provisions ol protocol 1, article 1 à 5
I     0610 90 95
i
1                    Courgettes, from 1 December to end                                     100                                         60                              Subject to the provisions of protocol 1, article f a 6
      0709 90 71
    ex 0709 90 73 February
    ex 0709 90 79                                                                                                                                        '
  (1) : Duty reduction only applies to *ad vatorom" customs duties except lor the products corresponding to the following codes : 0207 22 ; 0207 42 and 2204 21.
  (2): CN codes œrrespooding to Reg 1359/95, L 142 of 26 June 1995
  (3): Notwithstanding the rules for Interpretation of Ihe combined nomenclature, the wording lor Ihe description ol the products is to be considered as having no more than an indicative value, the prelerenllal
       scheme being determined, within the context of (his Annex, by Ihe coverage of (he CN codes. Where "ex" CN codes are indicated, (he preferential scheme is lo be determined by the application of
      the CN codes and corresponding description taken together.
 ---pagebreak---                                                                                             A                      B                    C                0                '••   •" —     .       E"        —         -
   CN Code(2K3)                              Description^)                          Reduction of the        Tariff quota         Reduction of      Reference                           8pecHtc provisions
                                                                                          MFN                                 the custom* duty quantity
                                                                                   customs duty(1)                             beyond current
                                                                                                               Volume             or possible
                                                                                                                                tariff-quota (1)
                                                                                            %                      t                    %                 t
    ex 0710 90 59 Fruits of the genua Capsicum,                                            100                      -                   30               .-            Subject to the provisions of protocol i , article 1 à 6
                     from IS November to 30 April
     071290 30       Dried tomatoes
     0712 90 50      Dried carrots                                                         100                    100                   0                 -
     0712 90 90      Dried vegetables, other
      0904 10 00     Dates                                                                 100                      -                   0                  -           Subject to the provisions ol protocol 1. article 1 à 6
        0904 40      Avocados                                                              100                      -                   80            37200
s    0604 50 00      Quavas, mangoes and mangosteens                                       100                  •   - •                 40                 •           Subject to the provisions ol protocol t. article t è 6
      ax 090510      Oranges, fresh                                                        100                 290000                   60                 -
         0905 20     Mandarine (Including tangerines                                       100                  21000                   60             •    -
                      and aatsumaa); clémentines,
                     wflklngs and similar cltrua hybride, fresh
    ex 0905 20 21     Mandarine (Including tangerines
    ex 0905 20 23     and aatsumas); Clementines,
    ex 0905 20 25    wllklngs and similar citrus hybrids, fresh
    ex 0905 20 27     from 15 March to 30 September                                        100                  14000                   0                 •
    ex 0905 20 29
      SX 0905 30      Lemons, fresh                                                        100                    7700                  40                •
    ex 0905 30 90 Umes, fresh                                                              100                    1000                   0                •
      ex 0605 40       Grapefruit, fresh                                                   100                      -                   80                -            Subject to the provisions of protocol 1. article 1 à 6
  (1) : Duty reduction only applies to "ad valorem" customs duties except for the products corresponding to the following codes : 0207 22 ; 0207 42 and 2204 21.
  (2): CN codes cormsponding to Reg 1359/95. L 142 ol 26 June 1995.
  (3): Notwithstanding the rules for interpretation of the combined nomenclature. Ihe wording for the description ol Ihe producls is lo bo considered as having no more than en Indicative value, the preferenlial
      schema being determined, within the context ol «his Annex, by the coverage of the CN codes Where "ex" CN codes are indicated, the preferenlial scheme is to be determined by She application of
      the CN codes and corresponding description taken together
 ---pagebreak---                                                                                                        "         ••B-       "             c           TJ
                                                                                    ...   H                                                                                                     C
 CN Cod*(2X3)                              Description^)                           Reduction of the       Tarlff quota          Reduction of      Reference                           Specific provisions
                                                                                         MFN                                 the customs duty quantity
                                                                                  customs duty(1)                             beyond current
                                                                                                              Volume             or possible
                                                                                                                               tariff-quota (1)
                                                                                           %                       t                   % •             t
  ax 0905 90 00 Kumquats                                                                  100                       •                   0             ••              Subject to the provisions ol protocol 1. article 1 à 6
 ex 0906 10 29 Tabla grapea, fresh from 15 May to 15 July                                 100                       •                   0            2280                      '
                                                                                             «
  ax 090710 10 Watermelons, from 1 April to 15 June                                       too                   9400                   50              -
  ax 090710 90 Melons, from 1 November to 31 May                                          100                  11400                   50              •
  ex 091010 90 Strawberries, from 1 November to 31 March                                  100                  2600                    60              •
  ax 0910 90 10 Kiwi fruit, from 1 January to 30 April                                    too                       -                  0              240
  ax 0910 90 95 Pomegranates                                                              100                      •                   0               •              Subject to the provisions of protocol 1. article 1 à 6
  ax 0610 90 95 Persimmons, from 1 November to 31 July                                    100                      -                   0               •              Subject to the provisions ol protocol 1. article 1 è 6
  •«os 11*01 a Qra/Mfnifl segments                                                        BO                       •                   •               •
  ex 0911 90 39 Grapefruit segment*                                                       80                      •                     •              -
  ex 0611 90 95 Dates, frozen                                                            100                      •                    0               -             Subject to the provisions of protocol t. article 1 à 6
  ex 0611 90 95 Grapefruit segments, frozen                                              100                      •                   80               •             Subject to the provisions ol protocol i. article 1 à 6
  ex 0612 90 20 Oranges, comminuted, provisionally preserved                             100                   10000                  80               •
  ex 0912 90 95 Other citrus fruits, comminuted                                          100                                          80             1320
                    provlslonnally preserved
(1 ) : Duty reduction only applies lo "ad valorem" customs duties except lor the products corresponding to Ihe following codes : 0207 22 ; 0207 42 and 2204 21.
(2): CN codes corresponding to Reg 1359/95. L 142 ol 26 June 1995.
(3): Notwithstanding the rules for Interpretation ol the -ombined nomenclature. Ihe wording lor the description ol the products is lo be considered as having no more than an indicative value. Ihe preferential
    scheme being determined, within the context of this Annex, by the coverage of the CN codes. Where "ex" CN codes are indicated, (he preferential scheme is (o be determined by the application of
    the CN codes and corresponding description taken together
 ---pagebreak---                                                                                              A                      B                     C              0                                         k
   CN Coda(2)(3)                             Description^)                          Reduction of the         Tariff quota         Reduction of      Reference                            Specific provision*
                                                                                          M FN                                 the customs duty quantity
                                                                                    customs duty(1)                             beyond current
                                                                                                                Volume             or possible
                                                                                                                                 tariff-quota (1)
                                                                                             %                      t                    %               t
      09041200       Pepper, crushed or ground                                              100                      -                   30            . •               Subject to the provisions of protocol f, article 1 à 6
      0904 2010      Sweet peppers, neither crushed nor ground                              100                    .-                     0               •              Subject to the provisions ol protocol 1. article 1 à 6 .
    ex 0904 20 39 Pimento, neither crushed nor ground,                                      100                      -    -              30               •              Subject to the provisions of protocol 1, article 1 A 6
                     from IS November to 30 April
    * x 0904 20 90 Pimento, crushed or ground                                               100                      -                   30                              Subject to the provisions of protocol 1, article 1 è 6
        130220       Pectlc substances, pectlnates and
                     pactatea                                                               100                      •                   25               •              Subject to the provisions of protocol 1, article 1 a 6
8        1602 31     Prepared or preserved turkey meat                                see column E                300                    0                -                    duty rate : 8,5% lor a 300t tariff-quota
                                                                             i
   ax 2001 20 00 UttJ* onion* having an equatorial diameter                                100                      •                     0               -
    •X 2001 90 99 of less than 30 mm and okraa, prepared                                                                                                                 Subject to the provisions ol protocol 1. article 1 A 6
                     or preserved by vinegar or acetic acid
     ex 2001 90 20 Fruits of the genus Capsicum,                                            100                     •                    30               •              Subject to the provisions of protocol 1. article 1 A 6
                     from IS November to 30 April
       20021010      Peeled tomatoes                                                       100                   3500                    30               -
    *x 2004 90 99 Celeriae, other than In mixture                                          100                      -                    30               -             Subject to the provisions ol protocol 1. article 1 À 6
       200490 99     Other vegetables, frozen                                               100                   1000                    0               -
    ex 200510 00 Celeriae, cabbages (excluding cauliflowers),                              100                      •                    30            •   -            Subject to the provisions ol protocol 1. article 1 A 6
     ex 2005 90 90 gumbos, okraa, other than In mixture
     ex 2005 9010 Fruit* of the genua Capsicum,                                            100                                           30               •             Subject to the provisions ol protocol 1. article 1 A 6 -
                     from 15 November to 30 April
  (1) : Duty reduction only applies to "ad valorem" customs duties except (or the products corresponding to the loltowing codes : 0207 22: 0207 42 and 220
  (2): CN codes corresponding to Reg 1359/95. L 142 ol 26 June 1995.
  (3): Notwithstanding the rules for interpretation of the combined nomenclature, the worditig (or the description of the products is to be considered as having no more than an indicative value, lite preferenlial
       scheme being determined, within the context ol this Annex, by the coverage of the CN codes. Where "ex" CN codes are indicated. Ihe preferential scheme is to be determined by the application of
       the CN codes and corresponding description tnkon together
 ---pagebreak---                                                                                           A                      B                    c               D                                       E
                                                          „
 CN Cod*(2X3)                             Description^)                           Reduction of the "~ TariffquôûT"*            Reduction of " " Reference                           Specific provisions
                                                                                        MFN                                 the custom* duty quantity
                                                                                  customs duty(1)                            beyond current
                                                                                                             Volume             or possible
                                                                                                                              tariff-quota (1)
                                                                                          %                       t               , %•                 t
   20091191        Groundnut*                                                            100                                           0               -             Subject to the provisions ot protocol 1. article 1 A 6
                                                                                                           .  . _...      i
   2009 30 SI      Grapefruit aegments                                                   100                       •                  80             16440        - *
   20093071
  ex 2009 30 SS Mandarin* (Including tangerines                                          100                                          80                             Subject lo the provisions ol protocol 1, article 1 à 6
                   and *ataumas); clémentines
                   wllklngs and other similar citrus
                   hybrids, comminuted
  •X 2009 30 59 Grapefruit, other than segment*                                          100                       •                  80               -             Subject to Ihe provisions ol protocol 1, article 1 A 6
                   Comminuted oranges and lemons
 •X 2009 30 78 Mandarin* (Including tangerines                                           100                       "                  80                "           Subjeci to ihe provisions of proiocoi i. ariicie i A 6
                   and sataumae); Clementines
                   wllklngs and other similar citrus
                   hybrids, comminuted
  ex 2009 30 79 Grapefruit, other than aegments                                          100                       •                  80             2400
  ex 2009 30 79 Comminuted orangea and lemona                                            100                       -                  80
(1) : Duty reduction only applies to "ad vatorem" customs duties except (or tho products corresponding to (he following codes : 0207 22 ; 0207 42 and 2204 2t.
(2): CN codes corresponding to Reg 1359/95. L 142 ol 26 June 1995.
(3): Notwithstanding the rules lor interprétation of the combined nomenclature, the wording for the description ol the products is to be considered as having no more than an indicative value, the preferential
     scheme being determined, within the context of this Annex, by the coverage ol Ihe CN codes. Where "ex" CN codes are indicated, the preferential scheme is to be determined by Ihe application ol
    the CN codes and corresponding description taken together.
 ---pagebreak---                                                                                            A                       B .                 C              D                                            E
  CN Code<2X3)                             Description^)                          Reduction of the        Tariff quota         Reduction of      Reference                            Specific provision*
                                                                                      ^MFN                                  the Customs duty quantity
                                                                                  customs duty(1)                            beyond current
                                                                                                             Volume             or possible
                                                                                                                              tariff-quota (1)
                                                                                           %                       t                  %                t
  ex 2009 30 91 Grapefruit aegments                                                       too                     '•                  80             3480
  ex 2009 30 91 Grapefruit, other then segments                                           100                  •   •  '               60
                                                                                                                                                                        '          .         • " '   * - • '        - - " • • • : . '
  ex 2009 30 91 Citrus fruit pulp                                                         100                      •                  40
  ex 2009 30 91 Comminuted citrus fruits                                                  100                      -                  80   -
  ex 2009 30 99 Grapefruit aegments                                                       100                      -                  80             5000
                                                                                                                                                                          J
  • x 2009 30 99 Grapefruit, other than aegments                                           80                      •                    -               -
                    Citrus fruit comminuted
  ex 2008 40 71     Slices of pears, fried in oil                                         100                    100                   0
  ex 2009 SO 71     Slices of apricots, fried in oil
  ex 2008 70 71     Slices of peaches, fried In oil
  ex 2009 92 74     Mixtures of sliced fruits, fried in oil
  ex 2009 92 79     Mixtures of sliced fruits, fried In oil
  ex 2009 99 68     Slices of apples, fried in oil
    2009 SO 61      Apricot*                                                              100                      •                  20               -      ,       Subject to the provisions of protocol 1, article 1 A 6
     2008 SO 69     Other                                                                 100                      -                  20               -              Subject to the provisions of protocol 1. article 1 A 8
  ex 2006 SO 92 Apricot halves                                                            too                      -                  20               -              Subject to the provisions of protocol 1. article t à 6
  5=2008 50 94
  ex 2008 SO 92 Apricot pulp                                                              100                    180                  0                •
  ex 2009 SO 94
  ex 2009 92 51 Mixtures of fruits                                                        100                    250                  0
  ex 2009 92 59
  ex 2009 92 72
  ex 2009 92 74
  ex 2009 92 76
  CX 2009 92 79
(1) : Duty reduction only applies to "ad valorem" customs duties except lor the products corresponding lo Ihe loltowing codes : 0207 22 ; 0207 42 and 2204 21.
(2): W codes corresponding to Reg 1359/95, L 142 o( 26 June 1995
(3)- Notwithstanding the rules lor interpretation ol the combined nomenclature, the wording (or the description of the products is to be considered as having no more than an Indfcatlve value, the prefereritiai
     scheme being determined, within the context of this Annex, by the coverage of Ihe CN codes. Where "ex" CN codes are indicated, the preferential scheme is to be determined by the applicatton of
     the CN codes and corresponding description taken together
 ---pagebreak---                                                                                          A                     B                     C              D                                         E
 CN Code<2K3)                            Deaeriptlon(3)                          Reduction of the       Tariff quota         Reduction of      Reference                             Specific provisions
                                                                                customs duty(1)                           the custom* duty quantity
                                                                                                                           beyond current
                                                                                                           Volume             or possible
                                                                                                                            tariff-quota (1)
                                                                                         %                     t                    %                1
   2009 11 11     Orange |ulce                                                          100                  92600                  70
   200911 19                                                                                         of which, in packs
   20091191                                                                                             ol 2 lor less,
   20091199                                                                                            not more than
   20091911                                                                                                 22400                                                                                                    • - '
   20091919
   20091991
    200919 99
     2009 2011     Grapefruit juice                                                     100                                         70            34440                       • "  .
    2009 2019
    2009 20 99
    200920 91      Grapefruit Juice                                                      70                    -                     •               -
    20093011       Juice of any other «Ingle citrus fruit                                100                   •                    60               -              Subject to the provisions of protocol 1, article 1 A 6
  ex 2009 30 31 Juice of any other single citrus fruit                                   100                   *                    60               *              Subject to the provisions of protocol 1. article 1 A 6
 ex 2009 30 39 of e density not exceeding 1,33g/cmU et 20ec,
                   of a value exceeding 30 ECU per 100 kg net weight,
                   excluding lemon juice
    2009 30 19     Other Juice of any other single citrus fruit                          60                    •                     -               -
      2009 SO      Tomato Juice                                                         100                  10200                  60               -
      2204 21      Other wine                                                           100                 1610 hi                 0               •                For 16 tOW : 100* reduction of the spocilic duty
(1) : Duty reduction only applies to "ad valorem* customs duties except (or the products corresponding to the following codes : 0207 22 ; 0207 42 and 2204 21.
(2): CN codes corresponding to Reg 1359/95. L 142 of 26 June 1995.
(3): Notwithstanding the rules for Nerpretalton of the combined nomenclature, the wording for (he description of the products is lo be considered as having no more than an indicative value, the preferential
     scheme being determined, within the context ol this Annex, by (he coverage of the CN codes. Where "ex" CN codes are indicated, the preferenlial scheme is to be determined by the appHcalioh of
    the CN codes and corresponding description taken together.
 ---pagebreak---                                      PROTOCOL NO 2
CONCERNING THE ARRANGEMENTS APPLICABLE TO THE IMPORTATION INTO
ISRAEL OF AGRICULTURAL PRODUCTS ORIGINATING IN THE COMMUNITY
                                           Article 1
1     The products listed in the Annex originating in the Community shall be admitted for
     importation Into Israel according to the conditions contained herein and in the Annex.
2,    Import duties on Imports are either eliminated or reduced to the level indicated in
     column "a", within the limit of the tariff quota listed in column "b", and subject to the
      specific provisions indicated in column "c".
3     For the quantities imported in excess of the tariff quotas, the general customs duties
     applied to third countries will apply, subject to the specific provisions indicated in
     column "c .
4    For certain products for which no tariff quota is fixed, reference quantities are fixed
     as indicated in column "c".
     Should the volume of imports of one of the products exceed the reference quantity,
     Israel, having regard to an annual review of trade flows which, if carried out, may
     make the product in question subject to a tariff quota, the volume of which shall be
     equal to the reference quantity. In that case, for quantities imported in excess of the
     quota, the duty referred to in paragraph 3 shall apply.
5.   For products for which neither a tariff quota nor a reference quantity is fixed, Israel
     may fix a reference quantity as provided for in paragraph 4 if, in the light of an
     annual review of trade flows which it shall carry out, it establishes that the volume of
     imports of a product or products threatens to cause difficulties on the Israeli market.
     If, subsequently, the product is subjected to a tariff quota under the conditions set
     out in paragraph 4, the provisions of paragraph 3 shall apply.
6.   For cheese and curd, the tariff quota is increased from 1st January 1997 to 1st
     January 2000 on the basis of four equal instalments, each corresponding to 10% of
     this amount.
                                              60
 ---pagebreak---                   ANNEX TO PROTOCOL 2
                                                                                            B
   Israeli code                      Description                     AOuty            Tariff Quota           Specific provisions
                                                                                            ft)
 0202 30        'Meat of bovine animals.boneleas, frozen               0%                 6000
 0206 29        'Other edible offal of bovine, frozen                  0%                  500
 040210         {Milk powder, fat content < 1.5%                     1.5 S/k              3000
                  Milk powder, fat content > 1.5%, no added
 0402 21          sugar                           '                                       3500
 0404             Why*.                                                0%                  500
 0405 00          Butter and fats derived from milk                  1,6 S/k               350
 0406             Cheese & curd                                       4S/kg                200      Subject to article 1.6
                                                                                                   s
 0601             Bulbs, tubers..., chicory plants and roots           0%                            51JM*fc*to article 1.5.
 0602           I Other live plants                                                                j Subject to article 1.5.
 0603 10        (Cuts flowers, fresh                                                                f l f l SÊ&i. 19Q9L
I0603 90        ! Dried flowers
 ex 0604 10       Mosses and lichens, fresh                                                         Subject to article 1.5.
  0604 91         Foliage, branches and other parts of plants,                                      ^ k [ e ç H o article 1.5.
                :fresh
 ex 0604 99     'Foliage.not further prepared than dried                                           •{Subject to article 1.5.
 0701 10        I Potatoes, seed                                        0%                6000
 0701 90        I Potatoes, other                                                   h-    2500
                                                               25% reduction oil
 0703 20 00     ! Garlic                                       General tariff rate
 0710  21       I Peas, frozen                                         14%          j      7&u
 0710  22         Beans, frozen                                                     1   """250
 0710  29         Other leguminous yegetables.frozcn                                  _ 350
 0710  30       •Spinach, frozen
 0710  80         Other vegetables, frozen                                                  soo
 0712 90          Other dried vegetables and mixtures                  16%                  2ÙÙ
 0713 33        i Kidney beans, inc.whHe pea beans,dried                0%
 0713 39         I Other beans,dried                                                      J 50
 0713 50          Broad beans and horse beans, dried                                      "2500
                                                                                                    «over quota 15% reduction of
 0713 90         I Other dried leguminous vegetables                                        1 (Hi    GeneratTartff rate __
                                                                                                    lover quota 15% reduction of
  0602 90          Other nuts                                           0%                  500      General Tariff rate
                                                                                                      over quota 20% reduction of
  0804 20 90       Figs, dried                                           0%                 500       Genera! Tariff rate
                                                                25% reduction of
  0606 20        1 Grapes, dried                                General tariff rate
  060610                                                                 0%                  750
  0608 20 90     W-
                 | Quinces                                                                   500
  1001 10        I Durum wheat                                           0%                 9500
  100190           Other wheat and meslin                                                 150000
                                                               61
 ---pagebreak---                                                                                    A                 B                     c
      Israeli code                               Description                     Duty          Tariff Quota Specific provisions
                                                                                  (%)              -ft)
          „„        ...,     j
   1002 00                   'Rye                                                 0%              10000
                             i
   1003 00                     Barley                                             0%             210000
   1005 90                     Maize other than seed                              0%              11000
         "       ~           I
   1006 30                     SemMnilied or wholly milked rice                 3,75%             25000
                 """'"'      j
   110313                    «Groats of corn                                      0%             235000
   1103 29                   [Pellets of other cereal                                             7500
                             j
   11041210                  jOat flakes                                         10%                        Subject to article 1.5. -
   110710                      Matt, not roasted                                  0%              7500
                                                                         25% reduction of
   1106                       Starches, Inulin                           General tariff rate
 |
 11208 10                     Flour and meal of aoya beans                        0%               400
   1209 91                    Vegetable seeds                                     0%               500
  1209 99                     Other seeds                                                          500
                                                                                             •
  1214 10                    Lucerne{alfalfa) meal and pellets                    0%              1500
  1404 20                    cotton (inters                                      0%               1000
           "•"""
  1507 10                    Soya bean oil, crude                                13%              7000
  1507 90                    Soya bean oil, other                                                 4000
                                                                                                                '
  1512 11                    Sunflower or safflower oil crude                    9%               1500
 1512 19                     Sunflower or safflower oil, other                                    1500
 1512 21                     Cotton oil other                                                      500
                                                                                                                    .
 1514 10                     Rape oil,crude                                      13%              3000
  1514 90                  !Rapeoil,other
  _,,                     i
                           j
                                                                                                                  "
 1515 19                   ! Linseed oil. other                                  0%                150
 1515 29                   1 Maize oil.other                                     9%                600
                           S
 1604 13 00.,             jJ Sardines, in airtight container                     0%                300
  1604 14 00               iTuna, in airtight container
                           1
  1701                       Cane or beet augar and aucrose
                           ! Other than raw augar.containing flavouring
  1701 91                  [matter                                               0%             265000
  1701 99                  IOther than raw sugar, other
                           I                                                   0,1 SA             1200
  1702 30                  ] Glucose < 20% by weight of fructose                                            15% reduction
                           I                                                                                of General tariff rate
                           î
 1702 60                   IOther fructose, >50% bv weiqfrt of fructoae          0%                200
| ~ _ _ j
 2002 90 20/3             j Tomatoes in powder form                              6%                100
S2003 10 00"                 Mushroom»                                           10%              5000
                          I                                                    7,50%               300
pbO4Ï»010                j D. prepared vegetables, frozen
[20049090                • O. prepared vegetables, frozen                      10,5%                                                  i
                                                                        62
 ---pagebreak---                                                                          A                 B                    C
  Israeli code                     Description                         Duty          Tariff Quota Specific provisions
                                                                        (%)                (t)
200799          Jams & jellies                                         10%                500
2008 5010        Apricots ,                                            12%                150
2006 50 20/90 Apricots                                                13,5%
2008 7010        Peaches                                              12,0%              1600
2006 70 30/90 : Peaches                                               13,5%
                 Mixtures (without strawberries, nuts and
2008 92 20       citrus)                                              12,0%               500
                 Mixtures (without strawberries, nuts and
2006 92 30/90    cttrus)                                              13,5%
200970           Concentrated apple juice, m pack. > 1001               0%                750
                                                              $2,75 per     liter of
220710           Undenatured ethyl alcohol, >80% alcohol      alcohol                    3000
                                                                       -
2301 10          Flours, meals, pellets of meat or meat offal           0%              14000
                          t
2303 10          Residues of starch manufacture                         0%               2200
               I
230410         iSoya bean oil cake                                     10%               1600
               !
2306 40        iRape seed meal                                         10%               3500
               i        "
23091010        Biscuits for dogs                                      25%               1700
230910 20        Containing 15%-35% protein materials and not           8%
                 leaa than 4% fat material
230910 90        Other dog and cat food                                 2%
2309 9010        Biscuits for dogs                                     25%               7000
2309 90 20       Containing 15%-35% protein materials and not           8%
               1 less than 4% fat material
2309 90 30     IFood for ornamental fishes and birds                   40%
2309 90 90     | Other animal food                                      2%
240110           Tobacco not stemmed/stripped                      0.07 nls/k             1700
240120           Tobacco partly or wholly stemmed/stripped
                                                              63
 ---pagebreak---                                          PROTOCOL NO 3
                       CONCERNING PLANT PROTECTION MATTERS
 Without prejudice to the provisions of the Agreement on the Application ot Sanitary and
 Phytosanitary Measures annexed to the Agreement establishing the WTO, and in particular
 Articles 2 and 6 thereof, the Parties agree that from the entry into force of this Agreement :
 a) On their mutual trade, the requirement for phyto-sanitary certification shall apply :
          in respect of cut flowers :
         - only to the genera Dendranthema, Dianthus and Pelargonium for introduction into
             the EU,
         -- and only to Rosa, Dendrenthema, Dianthus. Pelargonium, Gypsophilia and
             Anemone for introduction into Israel, and
         in respect of fruits :
        -    only to citrus, Fortunella, Poncirus and their hybrids Annona, Cydonia, Diospyros,
             Malus, Mangifera, Passiflore, Prunus, Psidium, Pyrus, Ribes, Syzygium and
             Vaccinum for introduction into the EU;
        - and to all the genera for introduction into Israel.
b) On their mutual trade, the requirement for a phyto-sanitary permit for the introduction of
   plants or planî products will only apply to enable the introduction of those plants or plant
   products which would otherwise be prohibited, based on a pest risk analysis.
c) A Party which envisages the introduction of new phyto-sanitary measures which could
   adversely affect specifically existing trade between the parties, shall hold consultations
   with the other Party to examine the envisaged measures and their effect.
                                                  64
 ---pagebreak---                                     PROTOCOL NO 4
 CONCERNING THE DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS"
                    AND METHODS OF ADMINISTRATIVE COOPERATION
                                               TITLE I
                                     GENERAL PROVISIONS
                                               Article 1
                                             Definitions
 For the purposes of this Protocol:
 (a)     'manufacture' means any kind of working or processing including assembly or
         specific operations;
(b)      'material' means any ingredient, raw material, component or part, etc., used in the
        manufacture of the product;
(c)      'product' means the product being manufactured, even if it is intended for later use
        in another manufacturing operation;
(d)     'goods' means both materials and products;
(e)     'customs value* means the value as determined in accordance with the Agreement on
        Implementation of Article VII of the General Agreement on Tariffs and Trade, 1994
        (WTO Agreement on Custom Valuation);
(f)     '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 or to the person
        who arranged for the last working or processing to be carried outside the territories
        of the Parties provided the price includes the value of all the materials used, minus
        all internal taxes which are, or may be, repaid when the product obtained is
        exported;
(g)     'value of materials' means the customs value at the time of importation of the non-
        originating materials used, or, if this is not known and cannot be ascertained, the
       first ascertainable price paid for the materials in the territories concerned;
(h)     Value of originating materials' means the customs value of such materials as
        defined in subparagraph (g) applied mutatis mutandis;
(i)     'chapters' and 'headings' means the chapters and the headings(four-digit codes)
        used in the nomenclature which makes up the Harmonized Commodity
      . Description and Coding System, referred to in this Protocol as 'the Harmonized
        System'or'HS';
(j)     'classified' refers to the classification of a product or material under a particular
        heading;
(k)     'consignment' means products which are either sent simultaneously from one
        exporter to one consignee or covered by a single transport document covering
       their shipment from the exporter to the consignee or, in the absence of such a
       document, by a single invoice.
                                                 65
 ---pagebreak---                                             TITLE II
            DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS"
                                            Article 2
                                         Origin criteria
For the purpose of implementing this Agreement and without prejudice to the provisions
of Article 3 of this Protocol, the following products shall be considered as
1. products originating in the Community:
    a) products wholly obtained in the Community, within the meaning of Article 4 of this
        Protocol;
    b) products obtained in the Community which contain materials not wholly obtained
       there, provided that the said materials have undergone sufficient working and
       processing in the Community within the meaning of Article 5 of this Protocol;
2. products originating in Israel:
   a) products wholly obtained in Israel within the meaning of Article 4 of this Protocol;
   b) oroducts obtained in Israel which contain materials not wholly obtained there,
       provided that the said materials have undergone sufficient working or processing
       in Israel within the meaning of Article 5 of this Protocol.
                                            Article 3
                                     Bilateral cumulation
1. Notwithstanding Article 2 (1) (b), materials originating in Israel within the meaning of
   this Protocol shall be considered as materials originating in the Community and it
   shall not be necessary that such materials have undergone sufficient working or
   processing.
2. Notwithstanding Article 2 (2) (b), materials originating in the Community within the
   meaning of this Protocol shall be considered as materials originating in Israel and it
   shall not be necessary that such materials have undergone working or processing.
                                            Article 4
                                  Wholly obtained products
1. The following shall be considered as wholly obtained either in the Community or in
   Israel.
   (a) mineral products extracted from their soil or from their seabed;
   (b) vegetable products harvested there;
   (c) live animals born and raised there;
   (d) products from live animals raised there;
                                               66
 ---pagebreak---    (e) products obtained by hunting or fishing there;
   (f) products of sea fishing and other products taken from the sea by their vessels;
   (g) products made aboard their factory ships exclusively from products referred to in
   subparagraph (f);
   (h) used articles collected there fit only for the recovery of raw materials, including
   used tyres fit only for retreading or use as waste;
   (i) waste and scrap resulting from manufacturing operations conducted there;
   (j) products extracted from marine soil or subsoil outside their territorial waters
   provided that they have sole rights to work that soil or subsoil;
   (k) goods produced exclusively from products specified in subparagraphs (a) to (j).
2. The terms their vessels' and their factory ships' in paragraph 1 (f) and (g) shall apply
   only to vessels and factory ships:
   -   which are registered or recorded in Israel or in a Member State of the Community,
   - which sail under the flag of Israel or of a Member State of the Community,
   -   which are owned to an extent of at least 50 per cent by nationals of Israel or of a
       Member State of the Community, or by a company with its head office in one of
       these States or in Israel, of which the manager or managers, chairman of the board
       of directors or the supervisory board, and the majority of the members of such
       boards are nationals of Israel or of Member States of the Community and of which,
       in addition, in the case of partnerships or limited companies, at least half the capital
       belongs to these States, to Israel, to their public bodies or to their nationals,
   -   of which the master and officers are nationals of Israel or of Member States of the
       Community.
   -   of which at least 75 per cent of the crew are nationals of Israel or of Member States
       of the Community.
3. The terms "Israel" and the "Community" shall also cover the territorial waters which
   surround Israel and the Member States of the Community.
   Sea-going vessels, including factory ships on which the fish caught is worked or
   processed, shall be considered as part of the territory of the Community or of Israel
   provided that they satisfy the conditions set out in paragraph 2.
                                           Article 5
                         Sufficiently worked or processed products
1. For the purposes of Article 2, products which are not wholly obtained in the
   Community or in Israel are considered to be sufficiently worked or processed there
   when the conditions set out in the list in Annex II, in conjunction with the Notes in
   Annex I, are fulfilled.
                                               67
 ---pagebreak---     These conditions indicate, for all products covered or not by the Agreement, the
    working or processing which must be carried out on the non-originating materials
    used in the manufacture of these products, and apply only in relation to such
    materials. Accordingly, it follows that if a product, which has acquired originating
    status by fulfilling the conditions set out in the list for that product, is used in the
    marufacture of another product, the conditions applicable to the product in which it is
    incorporated do not apply to it, and no account shall be taken of the non-originating
    materials which may have been used in its manufacture.
2. Notwithstanding paragraph 1 and except as provided in Article 12 (4), non-originating
    materials which, according to the conditions set out in the list for a given product,
    should not be used in the manufacture of this product may nevertheless be used,
    provided that:
    (a) their total value does not exceed 10 per cent of the ex-works price of the
    product;
    (b) where, in the list, one or several percentages are given for the maximum value of
    non-originating materials, such percentages are not exceeded through the
   application of this paragraph.
   This paragraph shall not apply to products falling within Chapters 50 to 63 of the
   Harmonized System.
3. Paragraphs 1 and 2 shall apply except as provided in Article 6.
                                           Article 6
                       Insufficient working or processing operations
The following operations shall be considered as insufficient working or processing to
confer the status of originating products, whether or not the requirements of Article 5
are satisfied:
   (a) operations to ensure the preservation of products in good condition during
   transport and storage (ventilation, spreading out, drying, chilling, placing in salt,
   sulphur dioxide or other aqueous solutions, removal of damaged parts, and like
   operation);
   (b) simple operations consisting of removal of dust, sifting or screening, sorting,
   classifying, matching (including the making-up of sets of articles), washing, painting,
   cutting up;
   (c) (i) changes of packaging and breaking up and assembly of packages;
        (ii) simple placing in bottles, flasks, bags, cases, boxes, fixing on cards or
        boards, etc., and all other simple packaging operations;
   (d) affixing marks, labels and other like distinguishing signs on products or their
   packaging;
   (e) simple mixing of products, whether or not of different kinds, where one or more
   components of the mixtures do not meet the conditions laid down in this Protocol to
   enable them to be considered as originating in the Community or in Israel;
                                              68
 ---pagebreak---      (f) simple assembly of parts to constitute a complete product;
     (g) a combination of two or more operations specified in subparagraphs (a) to (f);
    •(h) slaughter of animals.
                                            Article 7
                                      Unit of qualification
 1. The unit of qualification for the application of the provisions of this Protocol shall be
     the particular product which is considered as the basic unit when determining
     classification using the nomenclature of the Harmonized System.
     Accordingly, it follows that:
     (a) when a product composed of a group or assembly of articles is classified under
     the terms of the Harmonized System in a single heading, the whole constitutes the
     unit of qualification;
     (b) when a consignment consists of a number of identical products classified under
     the same heading of the Harmonized System, each product must be taken
     individually when applying the provisions of this Protocol.
2. Where, under general rule 5 of the Harmonized System, packaging is included with
     the product for classification purposes, it shall be included for the purposes of
     determining origin.
                                         » Articled
                              Accessories, spare parts and tools
Accessories, spare parts and tools dispatched with a piece of equipment, machine,
apparatus or vehicle, which are part of the normal equipment and included in the price
thereof or which are not separately invoiced, shall be regarded as one with the piece of
equipment, machine, apparatus or vehicle in question.
                                            Article 9
                                              Sets
Sets, as defined in general rule 3 of the Harmonized System, shall be regarded as
originating when all component products are originating. Nevertheless, when a set is
composed of originating and non-originating products, the set as a whole shall be
regarded as originating, provided that the value of the non-originating products does not
exceed 15 per cent of the ex-works price of the set.
                                            Article 10
                                       Neutral elements
 In order to determine whether a product originates in the Community or in Israel it shall
 not be necessary to establish whether the electrical energy, fuel, plant and equipment
as well as machines and tools used to obtain such product, or whether any goods, used
in the course of production which do not enter and which were not intended to enter into
the final composition of the product, are originating or not.
                                   63- =U
 ---pagebreak---                                              TITLE III
                                 TERRITORIAL REQUIREMENTS
                                              Article 11
                                     Principle of territoriality
The conditions set out in Title II relative to the acquisition of originating status must be
fulfilled without interruption in the Community or in Israel. For this purpose, the
acquisition of originating status shall be considered as interrupted when goods which
have undergone working or processing in the Party concerned have left the territory of
this Party .except as provided in Articles 12 and 13.
                                              Article 12
                 Working or processing carried out outside one of the Parties
1. The acquisition of originating status in one of the Parties under the conditions set out
    in Title II shall not be affected by working or processing carried out outside this Party
    and subsequently reimported there, provided that:
    (a) the said materials are wholly obtained in the Party concerned or have undergone
          there working or processing going beyond the insufficient operations listed in
          Article 6 prior to their exportation; and
    (b) it can be demonstrated to the satisfaction of the customs authorities that:
          (i) the reimported goods result from the working or processing of the exported
        materials; and
           (ii) the total added value acquired outside the Party concerned through the
        application of this Article does not exceed 10 per cent of the ex- works price of the
        final product for which originating status is claimed.
2. For the purposes of paragraph 1, the conditions set out in Title I! relative to the
    acquisition of originating status shall not apply in respect of working or processing
    carried out outside the Party concerned. Nevertheless, where, in the relevant list of
    Annex II, a rule giving the maximum value of all the non-originating materials used is
    applied in determining the originating status of the final product concerned, the total
    value of the non-originating materials used in the Party concerned and the total
    added value acquired outside this Party through the application of this Article taken
    together shall not exceed the percentage given.
3. For the purposes of paragraphs 1 and 2, "total added value" shall mean all costs
    accumulated outside the Party concerned, including all the value of the materials
    added there.
4. Paragraphs 1 and 2 shall not apply to products which do not fulfil the conditions set
    out in the relevant list rule and which can only be considered as sufficiently worked or
    processed as a result of the application of the general tolerance in Article 5(2).
5. Paragraphs 1 and 2 shall not apply to products falling within Chapters 50 to 63 of the
    Harmonized System.
                                              ^M
 ---pagebreak---                                             Article 13
                                     Reimportation of goods
Goods exported from the Community or Israel to a third country and subsequently
returned, shall be considered as never having left the concerned Party if it can be
demonstrated to the satisfaction of the customs authorities that:
(a)      the goods returned are the same goods as those exported; and
(b)      they have not undergone any operation beyond that necessary to preserve them
         in good condition while in that country or while being exported.
                                            Article 14
                                        Direct transport
1. The preferential treatment provided for under the Agreement applies only to products
    or materials which are transported between the territories of the Community and
    Israel without entering any other territory. However, goods originating in Israel or in
    the Community and constituting one single consignment which is not split up may be
    transported through territory other than that of the Community or Israel with, should
    the occasion arise, transhipment or temporary warehousing in such territories,
    provided that the goods have remained under the surveillance of the customs
    authorities in the country of transit or of warehousing and that they have not
    undergone operations other than unloading, reloading or any operation designed to
    preserve them in good condition.
    Products originating in Israel or in the Community may be transported by pipeline
    across territory other than that of the Community or that of Israel.
2. Evidence that the conditions set out in paragraph 1 have been fulfilled may be
    supplied to the customs authorities of the importing country by the production of:
    (a) a through bill of lading issued in the exporting country covering the passage
         through the country of transit; or
    (b) a certificate issued by the customs authorities of the country of transit:
         (i) giving an exact description of the products;
         (ii) stating the dates of unloading and reloading of the products and, where
         applicable, the names of the ships used; and
         (iii) certifying the conditions under which the products remained in the transit
         country; or
    (c) failing these, any substantiating documents.
                                                ^r
 ---pagebreak---                                            Article 15
                                          Exhibitions
1. Products sent from one of the Parties for exhibition in a third country and sold after
   the exhibition for importation in another Party shall benefit on importation from the
   provisions of the Agreement on condition that the products meet the requirements of
   this Protocol entitling them to be recognized as originating in the Community or in
   Israel and provided that it is shown to the satisfaction of the customs authorities that:
   (a) an exporter has consigned these products from one of the Parties 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 another Party;
   (c) the products have been consigned during the exhibition or immediately
   thereafter to the latter Party in the state in which they were sent for exhibition; and
    (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 V 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 nature of the products and
   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 organized 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.
                                                =K
 ---pagebreak---                                          TITLE IV
                              DRAWBACK OR EXEMPTION
                                         Article 16
           Prohibition of drawback of, or exemption from, customs duties
1. Non-originating materials used in the manufacture of products originating in the
   Community or in Israel within the meaning of this protocol for which a proof of origin
   is issued or made out in accordance with the provisions of Title V shall not be subject
   in any of the Parties to drawback of, or exemption from, customs duties of whatever
   kind.
2. The prohibition in paragraph 1 shall apply to any arrangement for refund, remission or
   non-payment, partial or complete, of customs duties or charges having an equivalent
   effect, applicable in any of the Parties to materials used in the manufacture, where
   such refund, remission or non-payment applies, expressly or in effect, when products
   obtained from the said materials are exported and not when they are retained for
    home use in this Party.
3. The exporter of products covered by a proof of origin shall be prepared to submit at
   any time, upon request from the customs authorities, all appropriate documents
   proving that no drawback has been obtained in respect of the non-originating
   materials used in the manufacture of the products concerned and that all customs
   duties or charges having equivalent effect applicable to such materials have actually
   been paid.
4. The provisions of paragraphs 1 to 3 shall also apply in respect of packaging within
   the meaning of Article 7 (2), accessories, spare parts and tools within the meaning of
   Article 8 and products in a set within the meaning of Article 9 when such items are
    non-originating.
5. The provisions of paragraphs 1 to 4 shall apply only in respect of materials which are
   of the kind to which the Agreement applies.
                                           9}
 ---pagebreak---                                            TITLE V
                                     PROOF OF ORIGIN
                                           Article 17
                                    General requirements
1.     Originating products within the meaning of this Protocol shall, on importation into
       one of the Parties, benefit from the Agreement upon submission of either:
       (a)   a movement certificate EUR.1, a specimen of which appears in Annex III; or
       (b)   in the cases specified in Article 22(1), a declaration, the text of which
             appears in Annex IV, given by the exporter on an invoice, a delivery note or
             any other commercial document which describes the products concerned in
             sufficient detail to enable them to be identified (hereinafter referred to as the
             "invoice declaration").
2.     Notwithstanding paragraph 1, originating products within the meaning of this
       Protocol shall, in the cases specified in Article 27, benefit from this Agreement
       without it being necessary to submit any of the documents referred to above.
                                           Article 18
                Procedure for the issue of a movement certificate EUR.1
1. A movement certificate EUR.1 shall be issued by the customs authorities of the
   exporting country on application having been made in writing by the exporter or,
   under the exporter's responsibility, by his authorized representative.
2. For this purpose, the exporter or his authorized representative shall fill out both the
   movement certificate EUR.1 and the application form, specimens of which appear in
   Annex III.
   These forms shall be completed in one of the languages in which the Agreement is
   drawn up, in accordance with the provisions of the domestic law of the exporting
   country. If they are handwritten, they shall be completed in ink in printed characters.
   The description of the products must be given in the box reserved for this purpose
   without leaving any 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 country 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 Protocol.
4. The movement certificate EUR.1 shall be issued by the customs authorities of a
   Member State of the European Community if the goods to be exported can be
   considered as products originating in the Community within the meaning of Article 2
   (1) of this Protocol. The movement certificate EUR.1 shall be issued by the customs
   authorities of Israel if the goods to be exported can be considered as products
   originating in Israel within the meaning of Article 2 (2) of this Protocol.
                                                   }<5
 ---pagebreak--- 5. When the provisions of Article 3 are applied, the customs authorities of the Member
   State of the Community or of Israel may issue movement certificates EUR.1 under
   the conditions laid down in this Protocol if the goods to be exported can be
   considered as originating products within the meaning of this Protocol and provided
   that the goods covered by the movement certificates EUR.1 are in the Community or
   in Israel.
   In these cases movement certificates EUR.1 shall be issued subject to the
   presentation of the proof of origin previously issued or made out. This proof of origin
   must be kept for at least three years by the customs authorities of the exporting
   State.
6. 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
   Protocol. 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 which they
   consider 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.
7. The date of issue of the movement certificate EUR.1 shall be indicated in the part of
   the certificate reserved for the customs authorities.
8. A movement certificate EUR.1 shall be issued by the customs authorities of the
   exporting country when the products to which it relates are exported. It shall be
   made available to the exporter as soon as actual exportation has been effected or
   ensured.
                                           Article 19
                  Movement certificates EUR.1 issued retrospectively
1. Notwithstanding Article 18(8), 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 this 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.
                                                  1 °)
 ---pagebreak--- 4 Movement certificates EUR.1 issued retrospectively must be endorsed with one of the
   following phrases:
       "NACHTRÂGLICH AUSGESTELLT,
       "DELIVRE A POSTERIORI",
       "RILASCIATO A POSTERIORI",
       "AFGEGEVEN A POSTERIORI",
       "ISSUED RETROSPECTIVELY",
       "UDSTEDT EFTERF0LGENDE",
       "EKA08EN EK TON YXTEPaN\
       "EXPEDIDO A POSTERIORI",
       "EMITADO A POSTERIORI"
       "ANNETTU JÂLKIKÂTEEN"
       "UTFÀRDAT I EFTERHAND"
       " text in Hebrew                               "
5. The endorsement referred to in paragraph 4 shall be inserted in the 'Remarks' box of
   the movement certificate EUR.1.
                                                                                   «
                                           Article 20
                     Issue of a duplicate movement certificate EUR.1
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 issued in this way must be endorsed with one of the following words:
       "DUPLIKAT", "DUPLICATA", "DUPLICATO", "DUPLICAAT","DUPLICATE",
       "ANTirPAOO", "DUPLICADOYSECUNDA VIA","KAKSOISKAPPALE",
       "text in Hebrew
3. The endorsement referred to in paragraph 2, the date of issue and the serial number
   of the original certificate 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 21
                                 Replacement of certificates
1. It shall at any time be possible to replace one or more movement certificates EUR.1
   by one or more other certificates provided that this is done by the customs office
    responsible for controlling the goods.
2 The replacement certificate shall be regarded as a definite movement certificate
    EUR.1 for the purpose of the application of this Protocol, including the provisions of
    this Article.
3, The replacement certificate shall be issued on the basis of a written request from the
    re exporter, after the authorities concerned have verified the information supplied in
    the applicant's request. The date and serial number of the original movement
    certificate EUR.1 shall be given in box 7.
                                                     So
 ---pagebreak---                                         Article 22
                Conditions for making out an invoice declaration
1. An invoice declaration as referred to in Article 17(1 )(b) may be made out:
   (a) by an approved exporter within the meaning of Article 23,
   (b) by any exporter for any consignment consisting of one or more packages
        containing originating products whose total value does not exceed
        ECU 6 000.
2. An invoice declaration may be made out if the products concerned can be
   considered as products originating in one of the Parties and fulfil the other
   requirements of this Protocol.
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, all
   appropriate documents proving the originating status of the products concerned
   as well as the fulfilment of the other requirements of this Protocol.
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 Annex IV, using one of the linguistic
   versions set out in that Annex in accordance with the provisions of the domestic
   law of the exporting country. The declaration may also be handwritten; in such a
   case, 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 23 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 exceptionally after exportation). If the invoice
   declaration is made out after the products to which it relates have been declared
   to the customs authorities in the importing country, this invoice declaration must
   bear a reference to the documents already submitted to these authorities.
                                         Article 23
                                   Approved exporter
1. The customs authorities of the exporting country may authorize any exporter,
    hereinafter referred to as 'approved exporter*, who makes frequent shipments of
    products under this Agreement, and who offers to the satisfaction of the customs
    authorities all guarantees necessary to verify the originating status of those
    products as well as the fulfilment of the other requirements of this Protocol, to
    make out invoice declarations irrespective of the value of the products concerned.
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
    authorization number which shall appear on the invoice declaration.
                                                 %1
 ---pagebreak---  4.     The customs authorities shall monitor the use of the authorization by the approved
        exporter.
5.      The customs authorities may withdraw the authorization 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 authorization.
                                          Article 24
                                 Validity of proof of origin
1. A movement certificate EUR.1 shall be valid for four 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.
    An invoice declaration shall be valid for four months from the date it was made out by
    the exporter and must be submitted within the said period to the customs authorities
    of the importing country.
2. Movement certificates EUR.1 and invoice declarations 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
    reasons of force majeure or exceptional circumstances.
3. In other cases of belated presentation, the customs authorities of the importing
    country may accept the movement certificates EUR.1 or invoice declarations where
    the products have been submitted to them before the said final date.
                                          Article 25
                               Submission of proof of origin
Movement certificates EUR.1 and invoice declarations 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 movement
certificate EUR.1 or an invoice declaration. They may also require the import
declaration to be accompanied by a statement from the importer to the effect that the
products meet the^onditions required for the implementation of the Agreement.
                                          Article 26
                                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 Harmonized System falling within Sections XVI and
XVII or heading N°S 7308 and 9406 of the Harmonized 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.
                                                  •se
 ---pagebreak---                                             Article 27
                           Exemptions from formal 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 formal proof of origin, provided that such products are
    not imported by way of trade and have been declared as meeting the requirements of
    this Protocol 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 C2/CP3 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 must not exceed ECU 500 in the case
    of small packages or ECU 1 200 in the case of products forming part of travellers'
    personal luggage.
                                            Article 28
                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 18(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 22(3).
3.       The customs authorities of the exporting country issuing a movement certificate
          EUR.1 shall keep for at least three years the application form referred to in
         Article 18(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 29
                              Discrepancies and formal errors
1. The discovery of slight discrepancies between the statements made in a movement
    certificate EUR.1, or in an invoice declaration 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 movement certificate EUR.1, or
    the invoice declaration 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 movement certificate EUR.1, or an
    invoice declaration 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.
                                                    £3
 ---pagebreak---                                           Article 30
                               Amounts expressed in ECUs
1. Amounts in the national currency of the exporting country equivalent to the amounts
    expressed in ECUs shall be fixed by the exporting country and communicated to the
•" other Parties.
   When the amounts exceed the corresponding amounts fixed by the importing
   country, the latter shall accept them if the products are invoiced in the currency of the
    exporting country.
    If the goods are invoiced in the currency of another Member State of the Community
   the importing State shall recognise the amount notified by the country concerned.
2. Up to and including 30 April 2000 , the amounts to be used in any given national
   currency shall be the equivalent in that national currency of the amounts expressed
   in ECUs as at 1 October 1994.
    For each successive period of five years, the amounts expressed in ECUs and their
   equivalents in the national currencies of the States shall be reviewed by the
   Cooperation Council on the basis of the exchange rates of the ECU as at the first
   working day in October in the year immediately preceding that five-years period.
   When carrying out this review, the Cooperation Council shall ensure that there will be
   no decrease in the amounts to be used in any national currency and shall
   furthermore consider the desirability of preserving the effects of the limits concerned
   in real terms. For this purpose, it may decide to modify the amounts expressed in
   ECUs.
                                             ^7
 ---pagebreak---                                           TITLE VI
                ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION
                                          Article 31
                        Communication of stamps and addresses
The customs authorities of the Member States and of Israel shall provide each other,
through the Commission of the European Communities, with specimen impressions of
stamps used in their customs offices for the issue of EUR.1 certificates and with the
addresses of the customs authorities responsible for issuing movement certificates
EUR.1 and for verifying those certificates and invoice declarations.
                                          Article 32
                               Verification of proof of origin
1. Subsequent verification of movement certificates EUR.1 and of invoice declarations
    shall be, carried out at random or whenever the customs authorities of the importing
    state have reasonable doubt as to the authenticity of such documents, the originating
    status of the products concerned or the fulfilment of the other requirements of this
    Protocol.
2. For the purposes of implementing the provisions of paragraph 1, the customs
   authorities of the importing country shall return the movement certificate EUR.1, and
   the invoice , if it has been submitted, or the invoice declaration, or a copy of these
   documents, to the customs authorities of the exporting country giving, where
   appropriate, the reasons of substance or form for an inquiry.
   They, shall forward, in support of the request for subsequent verification, any
   documents and information that have been obtained suggesting that the information
   given on the movement certificate EUR.1 or the invoice declaration is incorrect.
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 which they
   consider 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, they shall offer to release the products 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 within a maximum period of ten months. These results must indicate
   clearly whether the documents are authentic and whether the products concerned
   can be considered as originating products and fulfil the other requirements of this
   Protocol.
   Where the cumulation provisions of Articles 3.2 and 18.4 were applied, the reply shall
   include a copy (copies) of the movement certificate(s) or invoice declaration(s) relied
   upon.
                                                 2r
 ---pagebreak--- 6. If in cases of reasonable doubt there is no reply within ten months 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 the case of force majeure or in exceptional circumstances, refuse
    entitlement to the preferences.
                                           Article 33
                                     Dispute settlement
Where disputes arise in relation to the verification procedures of Article 31 which cannot
be settled between the customs authorities requesting a verification and the customs
authorities responsible for carrying out this verification or where they raise a question as
to the interpretation of this Protocol, they shall be submitted to the Customs
Cooperation Committee^
In all cases the settlement of disputes between the importer and the customs authorities
of the importing State shall be under the legislation of the said State.
                                           Article 34
                                           Penalties
Penalties shall be imposed on any person who draws up, or causes to be drawn up, a
document which contains incorrect information for the purpose of obtaining a
preferential treatment for products.
                                           Article 35
                                          Free zones
1. The Member States and Israel shall take all necessary steps to ensure that products
   traded under cover of a movement certificate EUR.1, which in the course of transport
    use a free zone situated in their territory, are not substituted by other goods and that
   they do not undergo handling other than normal operations designed to prevent their
   deterioration.
2/By means of an exemption to the provisions contained in paragraiph 1, when products
   originating in the Community or in Israel are imported into a free zone under cover of
   an EUR.1 certificate and undergo treatment or processing, the authorities concerned
   shall issue a new EUR.1 certificate at the exporter's request,, if the treatment or
   processing undergone is in conformity with the provisions of this protocol.
                                                t?Q
 ---pagebreak---                                            TITLE VII
                                     CEUTA AND MELILLA
                                           Article 36
                                  Application of the Protocol
1. The term 'Community* used in this Protocol does not cover Ceuta or Melilla. The
   term 'products originating in the Community' does not cover products originating in
   these zones.
2. This protocol shall apply mutatis mutandis to products originating in Ceuta and
   Melilla, subject to particular conditions set out in Article 37
                                           Article 37
                                       Special conditions
1. The following provisions shall apply instead of Articles 2 and 3 (1) and (2) and
   references to these Articles shall apply mutatis mutandis to this Article.
2. Providing they have been transported directly in accordance with the provisions of
   Article 14, the following shall be considered as:                           (
   (1 ) products originating in Ceuta and Melilla:
         (a) products wholly obtained in Ceuta and Melilla;
         (b) products obtained in Ceuta and Melilla in the manufacture of which products
         other than those referred to in (a) are used, provided that:
             (i) the said products have undergone sufficient working or processing within
             the meaning of Article 5 of this Protocol; or that
             (ii) those products are originating in Israel or the Community within the
             meaning of this Protocol, provided that they have been submitted to working
             or processing which goes beyond the insufficient working or processing
             referred to in Article 6.
   (2) products originating in Israel:
        (a) products wholly obtained in Israel;
        (b) products obtained in Israel, in the manufacture of which products other than
        those referred to in (a) are used, provided that:
             (i) the said products have undergone sufficient working or processing within
             the meaning of Article 5 of this Protocol; or that
             (ii) those products are originating in Ceuta and Melilla or the Community
             within the meaning of this Protocol, provided that they have been submitted
             to working or processing which goes beyond the insufficient working or
             processing referred to in Article 6.
                                                     £?
 ---pagebreak--- 3. Ceuta and Melilla shall be considered as a single territory.
4. The exporter or his authorized representative shall enter 'Israel' and 'Ceuta and
   Melilla' in box 2 of movement certificates EUR.1. In addition, in the case of products
   originating in Ceuta and Melilla, this shall be indicated in box 4 of movement
   certificates EUR.1.
5. The Spanish customs authorities shall be responsible for the application of this
   Protocol in Ceuta and Melilla.
                                               ^ ^       vSi
 ---pagebreak---                                         TITLE VIII
                                   FINAL PROVISIONS
                                        Article 38
                              Amendments to the Protocol
The Cooperation Council may decide to amend the provisions of this Protocol.
                                        Article 39
                            Customs Cooperation Committee
1. A Customs Cooperation Committee shall be set up, charged with carrying out
    administrative cooperation with a view to the correct and uniform application of this
    protocol and with carrying out any other task in the customs field which may be
    entrusted to it.
2. The Committee shall be composed, on the one hand, of experts of the Member
    States and of officials of the department of the Commission of the European
    Communities who are responsible for customs questions and, on the other hand, of
    experts nominated by Israel.
                                        Article 40
                                         Annexes
The Annexes to this Protocol shall form an integral part thereof.
                                        Article 41
                             Implementation of the Protocol
The Community and Israel shall each take the steps necessary to implement this
Protocol.
                                        Article 42
                               Goods in transit or storage
The provisions of the Agreement may be applied to goods which comply with the
provisions of this protocol and which on the date of entry into force of the agreement are
either in transit or are in the Community or in Israel in temporary storage, in bonded
warehouses or in free zones, subject to the submission to the customs authorities of the
importing State, within four months of that date, or a certificate EUR.1 endorsed
retrospectively by the competent authorities of the exporting State together with the
documents showing that the goods have been transported directly.
                                               •?=}^r
 ---pagebreak--- Annexes to Protocol 4
           ?H
 ---pagebreak---                                                 ANNEX I
                                     INTRODUCTORY NOTES
Preliminary remarks
The rules established in the present list are only applicable to products covered by the
Agreement.
Notel
1.1, The first two columns in the list describe the product obtained. The first column gives the
       heading number or chapter number used in the Harmonized System and the second
       column gives the description of goods used in that system for that heading or chapter.
       For each entry in the first two columns a rule is specified in columns 3 or 4. Where, in
       some cases, the entry in the first column is preceded by an "ex", this signifies that the
    • rule in columns 3 or 4 only applies to the part of that heading or chapter as described in
       column 2.
1.2. . Where several heading numbers are grouped together in column 1 or a chapter number
       is given and the description of product in column 2 is therefore given in general terms,
      the adjacent rule in columns 3 or 4 applies to all products which, under the Harmonized
       System, are classified within headings of the chapter or within any of the headings
       grouped together in column 1.
1.3   Where there are different rules in the list applying to different products within a heading,
      each indent contains the description of that part of the heading covered by the adjacent
       rules in column 3 or 4.                                                            ;
1.4   Where, for any entry in the first two columns, a rule is specified in both columns 3 and 4,
      the exporter may opt, as an alternative, to apply either thé rule set out in column 3 or that
       set out in column 4. If no origin rule is given in column 4, the rule set out in column 3 has
       to be applied.
Note 2
2.1. The working or processing required by a rule in column 3 has to be carried out only in
       relation to the non-originating materials used. The restrictions contained in a rule in
       column 3 likewise apply only to the non-originating materials used.
                                                                           r
                                                    87 d
 ---pagebreak---  2.2. Where a rule states that "materials of any heading" may be used, matenals of the sane
       heading as the product may also be used, subject, however, to any specific limitations
       which may also be contained in the rule. However, the expression "manufacture from
       materials of any heading, including other materials of heading No ...." means that only
       materials classified in the same heading as the product of a different description than that
       of the product as given in column 2 of the list may be used.
2.3. If a product made from non-originating materials which has acquired originating status
       during manufacture by virtue of the change of heading rule or its own list rule is used as a
       material in the process of manufacture of another product, then the rule applicable to the
       product in which it is incorporated does not apply to it.
       For example:
       An engine of heading No 8407, for which the rule states that the value of the
       non-originating materials which may be incorporated may not exceed 40% of the
       ex-works price, is made from "other alloy steel roughly shaped by forging" of heading No
      7224.
      If this forging has been forged in the country concerned from a non-originating ingot then
      the forging has already acquired origin by virtue of the rule for heading No ex 7224 in the
      list. It can then count as originating in the value calculation for the engine regardless of
      whether it wa's produced in the same factory or another. The value of the non-originating
      ingot is thus not taken into account when adding up the value of the non-originating
      materials used.
2.4. The rule in the list represents the minimum amount of working or processing required and
      the carrying out of more working or processing also confers originating status;
      conversely, the carrying out of less working or processing cannot confer origin. Thus if a
      rule says 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.
2.5   When a rule in the list specifies that a product may be manufactured from more than one
      material, this means that any one or more materials may be used. It does not require
      that all be used.
                                                 88
 ---pagebreak---       Example:
      The rule for fabrics of ex Chapter 50 to Chapter 55 provides that natural fibres may be
      used and that chemical materials, among other materials, may also be used. This does
      not mean that both have to be used; it is possible to use one or the other or both.
2.6. Where a rule in the list specifies that a product must be manufactured from a particular
      material, the condition obviously does not prevent the use of other materials which,
      because of their inherent nature, cannot satisfy the rule. (See also Note 5.2 below in
      relation to textlies.).
      Example:
     The rule for prepared food of heading No 1904 which specifically excludes the use of
     cereals or their derivatives does not prevent the use of mineral salts, chemicals and other
     additives which are not produced from cereals.
     However, this does not apply to products which, although they cannot be manufactured
     from the particular material specified in the list, can be produced from a material of the
     same nature at an earlier stage of manifacture.
     Example:
     In the case of an article of apparel of ex Chapter 62 made from non-woven materials, if
     the use of only non-originating yarn is allowed for this class of article, it is not possible to
     start from non-woven cloth - even if non-woven cloths cannot normally be made from
     yarn. In such cases, the starting material would normally be at the stage before yarn -
     that is the fibre stage.
2.7. Where, in a rule in the list two or more percentages are given for the maximum value of
     non-originating materials that can be used, then these percentages may not be added
     together. In other words, the maximum value of all the non-originating materials used
     may never exceed the highest of the percentages given. Furthermore, the individual
     percentages must not be exceeded in relation to the particular materials they apply to.
                                                89
 ---pagebreak--- Note 3
3.1. The term "natural fibres" is used in the list to refer to fibres other than artificial or
      synthetic fibres and is restricted to the stages before spinning takes place, including
      waste, and, unless otherwise specified, the term "natural fibres" includes fibres that have
      been carded, combed or otherwise processed but not spun.
3.2. The      term "natural fibres"     includes    horsehair  of   heading   No   0503,   silk of
      heading Nos 5002 and 5003 as well as the wool fibres, fine or coarse animal hair of
      heading Nos 5101 to 5105, the cotton fibres of heading Nos 5201 to 5203 and the other
      vegetable fibres of heading Nos 5301 to 5305.
3.3. 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 yams.
3.4. 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 Nos 5501 to 5507.
Note 4
4.1. Where for a given product in the list a reference is made to this note, the conditions set
      out in column 3        shall not be applied to any basic textile materials, used in the
      manufacture of this product, which, taken together, represent 10% or less of the total
      weight of all the basic textile materials used. (See also Notes 4.3 and 4.4 below).
4.2. However, this tolerance may only be applied 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,
                                                  90
 ---pagebreak---  - 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,
-    synthetic man-made staple fibres,
 -   artificial man-made staple fibres.
 Example:
A yam of heading No 5205 made from cotton fibres of heading No 5203 and synthetic
staple fibres of heading No 5506 is a mixed yarn. Therefore, non-originating synthetic
staple fibres that do not satisfy the origin rules (which require manufacture from chemical
materials or textile pulp) may be used up to a weight of 10% of the yarn.
Example:
A woollen fabric of heading No 5112 made from woollen yarn of heading No 5107 and
synthetic yam of staple fibres of heading No 5509 is a mixed fabric. Therefore synthetic
yam which does not satisfy the origin rules (which require manufacture from chemical
materials or textile pulp) or woollen yarn that does not satisfy the origin rules (which
require manufacture from natural fibres, not carded or combed or otherwise prepared for
spinning) or a combination of the two may be used up to a weight of 10% of the fabric.
Example:
Tufted textile fabric of heading N6 5802 made from cotton yarn of heading No 5205 and
cotton fabric of heading No 5210 is only a mixed product if the cotton fabric is itself a
mixed fabric being made from yarns classified in two separate headings or if the cotton
yarns used are themselves mixtures.
Example:
If the tufted textile fabric concerned had been made from cotton yam of heading'No 5205
and synthetic fabric of heading No 5407, then, obviously, the yams used are two
separate basic textile materials and the tufted textile fabric is accordingly a mixed
product
                                              91
 ---pagebreak---       Example:
      A carpet with tufts made from both artificial yarns and cotton yarns and with a jute
      backing is a mixed product because three basic textile materials are used. Thus, any
      ron-originating materials that are at a later stage of manufacture than the rule allows may
      be used, provided their total weight taken together does not exceed 10% of the weight of
      the textile materials in the carpet. Thus, both the jute backing and/or the artificial yarns
      could be imported at that stage of manufacture, provided the weight conditions are met.
4.3.  In the case of fabrics incorporating "yarn made of polyurethane segmented with flexible
      segments of polyether whether or not gimped" this tolerance is 20% in respect of this
      yam.
4.4. In the case of fabrics incorporating strip consisting of a core of aluminium foil or of a core
     of plastic film whether or not coated with aluminium powder, of a width not exceeding
     5 mm, sandwiched by means of an adhesive between two films of plastic film, this
     tolerance is 30% in respect of this strip.
Note 5
5.1. In the case of those textile products which are marked in the list by a footnote referring to
     this note, textile materials with the exception of linings and interlinings which do not
     satisfy the rule set out in the list in column 3 for the made up products 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.
5.2. Materials which are not classified within Chapters 50 to 63 may be used freely, 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.
5.3. 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.
                                                    92
 ---pagebreak---      Note 6
     6.1. Fo«- the purposes of heading Nos ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex 3403,
           the "specific processes" are the following:
           (a)     vacuum distillation;
           (b)     redistillation by a very thorough fractionation process (1);
           (c)    cracking;
           (d)    reforming;
           (e)    extraction by means of selective solvents;
           (f)    the process comprising all the following operation's: processing with concentrated
                  sulphuric acid, oleum or sulphuric anhydride; neutralization with alkaline agents;
                  decolorization and purification with naturally active earth, activated earth, activated
                  charcoal or bauxite;
          (g)    polymerization;
           (h)   alkylation;
           (i)    isomerization.
    6.2. For the purposes of heading Nos 2710, 2711 and 2712, the "specific processes" are the
          following:
           (a)    vacuum distillation;
           (b)    redistillation by a very thorough fractionation process;
           (c)   cracking;
           (d)   reforming;'
         . (e)    extraction by means of selective solvents;
( ) See Additional Explanatory Note 4(b) to Chapter 27 of the combined nomenclature.
                                                            93
 ---pagebreak---     \ (f)       the process comprising all the followng operations: processing with concentrated
               sulphuric acid, oleum or sulphuric anhydride; neutralization with alkaline agents;
               decolorization and purification with naturally active earth, activated earth, activated
                charcoal or bauxite;
       (g)     polymerization;
       (h)     alkylation;
       (ij)    isomerization;
       (k)     (in respect of heavy oils falling within heading No ex 2710 only) desulphurization
               with hydrogen resulting in a reduction of at least 85% of the sulphur content of the
               products processed (ASTM D1266-59 T method);
      (I)      (in respect of products falling within heading No 2710 only) cleparaffining by a
              process other than filtering;
      (m)     (in respect of heavy oils falling within heading No ex 2710 only) treatment with
              hydrogen at a pressure of more than 20 bar and a temperature of more than 250 c
          (   C with the use of a catalyst, other than to effect desulphurization, when the
              hydrogen constitutes an active element in a chemical reaction. The further
              treatment with hydrogen of lubricating oils of heading No ex 2710
              (e.g. hydrofinishing or decolorization) in order, more especially, to improve colour or
            . stability shall not, however, be deemed to be a specific process;
     (n)      (in respect of fuel oils falling within heading No 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;
     (o)      (in respect of heavy oils other than gas oils and fuel oils falling within heading No ex
              2710 only) treatment by means of a high-frequency electrical brush-discharge.
6.3. For the purposes of heading Nos ex 2707,2713 to 2715, ex 2901, ex 2902 and ex 3403,
     simple operations such as cleaning, decanting, desalting, water separation, filtering,
     colouring, marketing obtaining a sulphur content as a result of mixing products with
     different sulphur contents, any combination of these operations or like operations do not
     confer origin.
                                                      94
 ---pagebreak---                          ANNEX II
List of working or processing required to be carried out on
     non-originating materials In order that the product
         manufactured can obtain originating status
                              95
 ---pagebreak---    HS heading          Description of product               Working or processing carried out on non-onginating
   No                                                       materials that confers originating status
          (1)                        (2)                                          (3)           or     (4)
   Chap. 01            Live animals                         0)
   ex Chap 02          Meat and edible meat offal;          Manufacture in which all the
                       except for heading No.               materials used are
                       0201: 0202:0206; 0210 for            classified within a heading
                       which the rules are set out          other than that of the
                       below                                product
  0201                 Meat of bovine animals,              Manufacture from materials
                      fresh or chilled                      of any heading except meat
                                                            of bovine animals, frozen of
                                                            heading No. 0202
  0202                 Meat of bovine animals,              Manufacture from materials
                      frozen                               of any heading except meat
                                                           of bovine animals, fresh or
                                                            chilled of heading No. 0201
  0206                Edible cftal of bovine                Manufacture from materials
                      animals, swine, sheep,               of any heading except
                      goats, horses, asses, mules          carcases of headings Nos.
                      or ninnies, fresh, chilled or        020lto0205
                      frozen
  0210                Meat and edible meat offal,          Manufacture from materials
                      salted, in brine, dried or           of any heading except meat
                     smoked: edible flours and             and offa! of heading Nos.
                      meals of meat or meat offal          0201 to 0206 and 0208 or
                                                           poultry liver of heading No.
                                                           0207
  ex Chap 03          Live fish and crustaceans,            d)
                      live molluscs and other
                      aquatic invertebrates
  0302 to 0305        Fish, other than live fish           Manufacture in which all the
                                                           materials of Chapter 3 used
                                                           must be wholly obtained
  ex 0306            Crustaceans, except live              Manufacture in which all the
                      crustaceans -                        materials of Chapter 3 used
                                                           must be wholly obtained
  ex 0307             Molluscs: aquatic                     Manufacture in which all the
                      invertebrates other than             materials of Chapter 3 used
                      crustaceans and molluscs             must be wholly obtained
                      except live molluscs
  ex Chap. 04         Dairy produce except for              Manufacture in which all the
                      heading No. 0402; 0403;               materials used are
                      0404 to 0406; edible                  classified within a heading
                      products of animal origin,            other than that of the
                      not elsewhere specified or            product
                      included
f1) For these products the 'Wholly obtained* crrteria. described in article 4 is always applied
                                                                  96
 ---pagebreak---    HS heading         Descnp:ion of product                 Working or processing carried out on non-onginating
   No                                                       materials that confers originating status
           (1)                       (2)                                          (3)            or    (4)
   0402               Dairy products                        Manufacture from materials
   0404 to 0406                                             of any heading except milk
                                                            or cream of heading No.
                                                            0401 or 0402
   0403               Buttermilk, curdled milk and          Manufacture in which :
                      cream, yogurt, képhir and             • all the materials of Chapter
                      other fermented or acidified            4 used must be wholly
                      milk and cream, whether or               obtained
                      not concentrated or                   - any fruit juice (except
                      containing added sugar or               those of pineapple, lime or
                      other sweetening matter or              grapefruit) of heading No.
                     flavoured or containing                  2009 used must be wholly
                      added fruit or cocoa                    obtained, and
                                                            - the value of any materials
                                                              of Chapter 17 used does
                                                              not exceed 30% of the ex-
                                                              works price of the product
  0407                Birds' eggs, in shell, fresh,
                      preserved or cooked
  0408                Birds' eggs, not in shell and         Manufacture from materials
                     egg yolks, fresh, dried,               of any heading except birds'
                      cooked, by steaming or by             eggs of heading No. 0407
                      boiling in water, moulded,
                     frozen or otherwise
                      preserved, whether or not
                     containing added sugar or
                     other sweetening matter
  0409               Natural honey                          d)
  ex Chap. 05        Products of animal origin,             Manufacture in which all the
                     not elsewhere specified or             materials used are
                     included except for heading            classified within a heading
                     No. ex0502; ex0506 for                 other than that of the
                     which the rules a re. set out          product
                     below
  ex 0502            Prepared pigs', hogs' or               Cleaning, disinfecting,
                     boars' bristles and hair               sorting and straightening of
                                                            bristles and hair
  ex 0506             Bones and horn-cores                  Manufacture in which all the
                     unworked                              materials of Chapter 2 used
                                                            must be wholly obtained
  Chap 06            Vegetable products                     (1)
(1 ) For these products the "Wholly obtained* criteria, described in article 4 is always applied
                                                                  97
 ---pagebreak---    HS heading         Description of product                 Workinç or processing carried out on non-onginating
   No                                                        materials that confers originating status
           (V                         (2)                                         (3)            or     (4)
                                                             (i)
   ex Chap 07         Edible vegetables and
                      certain roots and tubers
                      except for heading No. 0710
                      to 0713 for which the rules
                      are set out below
   ex 710 to 713      Edible vegetables, frozen or          Manufacture in which all the
                      dried, provisionally                  vegetable materials used
                      preserved except for                  must be wholly obtained
                      heading Nos. ex 0710 and
                      ex 0711 for which the rules
                      are set out below
   ex 0710            Sweet com (uncooked or                Manufacture from fresh or
                      cooked by steaming or                 chilled sweet corn
                      boiling in water), frozen
   ex 0711            Sweet com, provisionally              Manufacture from fresh or
                      preserved                             chilled sweet corn
  ex Chap 38          Edible fruit and nuts: peel of        0!
                      citrus fruits or melons
                     except for heading No.
                      0811,0812, 0813. 0814 for
                      which the rules are set out
                      below
  0811                Fruit and nuts uncooked or
                      cooked by steaming or
                      boiling in water, whether or
                      not containing added sugar
                      or other sweetening matter :
                      - containing added sugar              Manufacture in which the
                                                            value of any materials of
                                                            Chapter 17 used does not
                                                           exceed 30% of the value of
                                                           the ex-works price of the
                                                            product
                     - other                                Manufacture in which all the
                                                           fruit or nuts used must be
                                                            wholly obtained
  0812                Fruit and nuts provisionally          Manufacture in which all the
                     preserved (for example, by             fruit or nuts used must be
                     sulphur dioxide gas, in                wholly obtained
                      brine, in sulphur water or in
                     other preservative
                      solutions), but unsuitable in
                     that state for immediate
                     consumption
(1 ) For these products the 'Wholly obtained' criteria, described in article 4 is always applied
                                                                  98
 ---pagebreak---    HS heading          Description of product              Working pr processng earned out on non-onginating
   No                                                      materials that confers originating status
          VI                          (2)                                        (3)            or   (4)
   0813                Fruit, dried, other than that       Manufacture in which all the
                      of heading Nos. 0801 to              fruit or nuts used must be
                      0806; mixtures of nuts or            wholly obtained
                      dried fruits of this chapter
   0814               Peel of citrus fruit or melons       Manufacture in wh zh all the
                      (including water-melons).            fruit or nuts used must be
                      fresh, frozen, dried or              wholly obtained
                      provisionally preserved in
                      brine, in sulphur water or in
                      other preservative solutions
   Chap 09            Coffee, tea. maté and                (V
                      spices, excluding the
                      mixtures of spice of 0910
                      for which the rules are set
                      out below
  ex 0910             Mixtures referred to in note         Manufacture in which all
                      1 (b) to this chapter               materials used are
                                                          classified within a heading
                                                          other than that of the
                                                          product
                                                          ID
  Chap 10            Cereals
  ex Chap 11          Products of the milling             Manufacture in which all the
                     industry; malt, starches:            cereals, edible vegetables,
                     inulin; wheat gluten, except         roots and tubers of heading
                     for heading No. ex 1106 for           No. 0714 or fruit used must
                     which the rule is set out             be wholly obtained
                     below
  ex 1106            Flour and meal of the dried,          Drying and milling of
                     shelled leguminous                   leguminous vegetables of
                     vegetables of heading No.            heading No. 0708
                     0713
  Chap 12            Oil seeds and oleaginous              n)
                     fruits; miscellaneous grains,
                     seeds and fruit: industrial or
                     medicinal plants; straw and
                     fodder; excluding flours and
                     meals of oil seeds or
                     oleaginous fruits, other than
                     those of mustard for which
                     the rule is set out below
(1 ) For these products the "Wholly obtained* critena. described in article 4 is always applied
                                                                 99
 ---pagebreak---    HS heading          Description of product                Working or processing carried out on non-originating
   No                                                        materials that confers originating status
           (1)                        (2)                                          (3)          or       (4)
   1208                Flours and meals of oil               Manufacture in which all the
                       seeds or oleaginous fruits,           materials used are
                       other than those of mustard           classified within a heading
                                                             other than that of the
                                                             product
   ex Chap 13          Lac; gums, resins and other           Manufacture in which all the
                       vegetable saps and extracts           materials used are
                       except for heading No. 1301           classified within a heading
                       for which the rule is set out         other than that of the
                       below                                 product
   1301                Lac; natural gums, resins,            Manufacture in which the
                       gum-resins and balsams                value of any materials of
                                                             heading No. 1301 used may
                                                             not exceed 50% of the ex-
                                                             works price of the product
                                                             Oi
  Chap 14              Vegetable planting
                       materials: vegetable
                       products not elsewhere
                       specified or included
  ex Chap 15           Animal or vegetable fats              Manufacture in which all the
                       and oils and their cleavage           materials used are
                       products; prepared edible             classified within a heading
                      fats; animal or vegetable              other than that of the
                      waxes except for heading               product
                       No. 1501; 1502; 1504; ex
                       1505; 1506; ex 1507 to
                       1515; ex 1516; ex 1517 and
                       ex 1519 for which the rules
                       are set out below
  1501                 Lard; other pig fat and
                       poultry fat. rendered,
                      whether or not pressed or
                       solvent-extracted:
                      - Fats from bones or waste             Manufacture from materials
                                                             of any heading except those
                                                             of heading No. 0203, 0206
                                                             or 0207 or bones of heading
                                                             No. 0506
                      •- Other                               Manufacture from meat or
                                                             edible offal of swine of
                                                             heading No. 0203 or 0206
                                                             or of meat and edible offal
                                                             of poultry of heading No.
                                                             0207
^ F o r these products the "Wholly obtained* criteria, described in article 4 is always applied
                                                                  100
 ---pagebreak--- HS heaoing Description of product         Working or processing carried out on non-originating
No                                        materials that confers originating status
      0)                  (2)                              (3)             or         (4)
1502       Fats of bovine animals;
           sheep or goats, raw or
           rendered, whether or not
           pressed or solvent-
           extracted:
           - Fats from bones or waste     Manufacture from materials
                                          of any heading except those
                                          of heading No. 0201. 0202,
                                          0204 or 0206 or bones of
                                          heading No. 0506
           -other                         Manufacture in which all the
                                          animal materials of Chapter
                                          2 used must be wholly
                                          obtained
1504       Fats and oils and their
           fractions, of fish or marine
           mammals, whether or not
           refined, but not chemically
           modified:
           - Solid fractions of fish oils Manufacture from materials
             and fats and oils of marine  of any heading including
             mammals                      other materials of heading
                                          No. 1504
             other                        Manufacture in which all the
                                          anima) materials of
                                          Chapters 2 and 3 used must
                                          be wholly obtained
ex 1505    Refined lanolin                Manufacture from crude
                                          wool grease of heading No.
                                          1505
1506       Other animal fats and oils
           and their fractions, whether
           or not refined, but not
           chemically modified :
           - Solid fractions              Manufacture from materials
                                          of any heading including
                                          other materials of heading
                                          No. 1506
           - other                        Manufacture in which all the
                                          animal materials of Chapter
                                          2 used must be wholly
                                          obtained
ex 1507 to Fixed vegetable oils and
1515       their fractions, whether or
           not refined, but not
           chemically modified:
                                              101
 ---pagebreak---  HS heading   Description of product        Working or processing carried out on non-originating
 No                                         materials that confers originating status
      (1)                    (2)                             (3)             or         (4)
             - Solid fractions, except for  Manufacture from other
                that of Jojoba oil          materials of heading Nos.
                                            1507 to 1515
             - Other, except for :          Manufacture in which all the
                                            vegetable materials used
              •Lung oil; myrtle wax and     must be wholly obtained
               Japan wax
               - Those for technical or
                industrial uses other than
               the manufacture of
               foodstuffs for human
               consumption
ex 1516      Animal or vegetable fats       Manufacture in which all the
             and oils and their fractions,  animal and vegetable
             re-esterified. whether or not  materials used must be
             refined but not further        wholly obtained
             prepared
ex 1517      Edible liquid mixtures of      Manufacture in which all the
             vegetable oils of heading      vegetable materials used
             Nos. 1507 to 1515             must be wholly obtained
ex 1519      Industrial fatty alcohols     Manufacture from materials
            having the character of        of any heading including
            artificial waxes               fatty acids of heading No.
                                            1519
1601        Sausages and similar           Manufacture from animals
            products, of meat, meat        of Chapter 1
            offal or blood; food
            preparations based on
            these products
1602        Other prepared or~             Manufacture from animals
            preserved meat, meat offal     ot Chapter 1
            or blood
1603        Extracts and juices of meat,   Manufacture from animals
            fish or crustaceans,           of Chapter 1. However, all
            molluscs or other aquatic      fish..crustaceans, molluscs
            invertebrates                  or other aquatic
                                           invertebrates used must be
                                           wholly obtained
1604        Prepared or preserved fish;    Manufacture in which all the
            caviar and caviar              fish or fish eggs used must
            substitutes prepared from      be wholly obtained
            fish eggs
1605        Crustaceans, molluscs and      Manufacture in-which all the
            other aquatic invertebrates,   crustaceans, molluscs or
            prepared or preserved          other aquatic invertebrates
                                           used must be wholly
                                           obtained
                                                102
 ---pagebreak---          Description of product       Working or processing carried out on non-onginating
                                      materials that confers originating status
                       (2)                              (3)            or        (4)
ex 1701 Cane or beet sugar and        Manufacture in which all the
        chemically pure sucrose, in   materials used are
        solid form not containing     classified within a heading
        added flavouring or           other than that of the
        colouring matter              product
ex 1701 Cane or beet sugar and        Manufacture in which the
        chemically pure sucrose, in   value of any materials of
        solid form, flavoured or      Chapter 17 used does not
        coloured                      exceed 30% of the ex-works
                                      price of the products
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:
        - Chemically pure maltose     Manufacture from materials
          and fructose                of any heading including
                                      other materials of heading
                                      No. 1702
          Other sugars in solid form, Manufacture in which the
          flavoured or coloured       value of any materials of
                                      Chapter 17 used does not
                                      exceed 30% of the ex-works
                                      price of the product
          Other                       Manufacture in which all the
                                      materials used must already
                                      be originating
ex 1703 Molasses resulting from the   Manufacture in which the
        extraction or refining of     value of any materials of
        sugar, flavoured or coloured  Chapter 17 used does not
                                      exceed 30% of the ex-works
                                      price of the product
ex 1703 Molasses resulting from the   Manufacture in which all the
        extraction or refining of     materials used are
        sugar, not containing added   classified within a heading
        flavouring or colouring       other than that of the
        matters                       product
1704    Sugar confectionery           Manufacture in which all the
        (including white chocolate),  materials used are
        not containing cocos          classified within a heading
                                      other than that of the
                                      product, provided the value
                                      of any other materials of
                                      Chapter 17 used does not
                                      exceed 30% of the ex-works
                                      price of the product
                                           103
 ---pagebreak---    HS heading        Description of product                Working or processing carried out on non-originating
  tslo                                                     materials that confers originating status
        "Or                         (2)                                          (3)           or      (4)
  ex Chap 18         Cocoa and cocoa                       Manufacture in which all the
                     preparations except for               materials used are
                     heading No. 1801 and 1806             classified within a heading
                     for which the rules are set           other than that of the
                     out below:                            product
                                                           HI
  1801               Cocoa beans, whole or
                     broken, raw or roasted
  1806               Chocolate and other food             Manufacture in which all the
                     preparations containing              materials used are
                     coca                                 classified within a heading
                                                          other than that of the
                                                          product, provided the value
                                                          of any other materials of
                                                          Chapter 17 used does not
                                                          exceed 30% of the ex-works
                                                          price of the product
  1901              Malt extract; food
                    preparations of flour, meal,
                    starch or malt extract. not>
                    containing cocoa powder or
                    containing cocoa powder in
                    a proportion by weight of
                    less than 50%, not
                    elsewhere specified or
                    included; food preparations
                    of goods of heading Nos.
                    0401 to 0404, not
                    containing cocoa powder or
                    containing cocoa powder in
                    a proportion by weight of
                    less than 10%. not
                    elsewhere specified or
                    included:
                    - Malt extract                        Manufacture from cereals of
                                                          Chapter 10
                      Other                               Manufacture in which all the
                                                          materials used are
                                                          classified within a heading
                                                          other than that of the
                                                          product, provided the value
                                                          of any materials of Chapter
                                                          17 used does not exceed
                                                          30% of the ex-works price
                                                          of the product
P) For these products the 'Wholly obtained* criteria, described in article 4 is always applied
                                                               104
 ---pagebreak---       Description of product        Working or processing carried out on non-originating
                                    materials that confers originating status
                   (2)                                 (3)           or         (4)
1902  Pasta, whether or not         Manufacture in which all the
     cooked or stuffed (with meat, cereals (except durum
     or other substances} or        wheat), meat, meat offal.
     otherwise prepared, such as fish, crustaceans or
     spaghetti, macaroni,           molluscs used must be
     noodles, lasagne, gnocchi,     wholly obtained
     ravioli, cannelloni;
     couscous, whether or not
      prepared
1903 Tapioca and substitutes        Manufacture from materials
     therefor prepared from         of any heading except
     starch, in the form of flakes, potato starch of heading No.
     grains, pearls, sittings or in 1108
     similar forms
1904  Prepared foods obtained by
     the swelling or roasting of
     cereals or cereal products
     (for example, com flakes):
     cereals, other than maize
     (com), in grain form, pre-
     cooked or otherwise
     prepared :
     - Not containing cocoa         Manufacture in which :
                                    - all the cereals and flour
                                      (except maize of the
                                      species Zea indurata and
                                      durum wheat and their
                                      derivatives) used must be
                                      wholly obtained,
                                    and
                                     - the value of any materials
                                      of Chapter 17 used does
                                      not exceed 30% of the ex-
                                      works price of the product
     - Containing cocoa             Manufacture from materials
                                    not classified in heading No.
                                    1806, provided the value of
                                    any materials of Chapter 17
                                    used does not exceed 30%
                                    of the ex-works price of the
                                    product
1905 Bread, pastry, cakes,          Manufacture from materials
     biscuits and other bakers'     of any heading, except
     wares, whether or not          those of chapter 11
     containing cocoa;
     communion wafers, empty
     cachets of a kind suitable
     for pharmaceutical use,
     sealing wafers, rice paper
     and similar products
                                          105
 ---pagebreak--- HS heading Description of product         Working or processing carried out on non-originating
No                                        matenals that confers originating status
     0)                   (2)                              (3)            or          (4)
2001       Vegetables, fruit nuts and     Manufacture in which all the
           other edible parts of plants, fruit, nuts or vegetables
           prepared or preserved by      used must be wholly
           vinegar or acetic acid        obtained
2002       Tomatoes prepared or          Manufacture in which all the
           preserved otherwise than by   tomatoes used must be
           vinegar or acetic acid        wholly obtained
2003       Mushrooms and truffles,       Manufacture in which all the'
           prepared or preserved         mushrooms or truffles used
           otherwise than by vinegar or  must be wholly obtained
           acetic acid
2004 and   Other vegetables prepared     Manufacture in which all the
2005       or preserved otherwise than   vegetables used must b e .
           by vinegar or acetic acid,    wholly obtained
           frozen or not frozen
2006       Fruit, nuts, fruit-peel and   Manufacture in which the
           other parts of plants,        value of any materials of
           preserved by sugar            Chapter 17 used does not
           (drained, glacé or            exceed 30% of the ex-works
           crystallized)                 price of the product
2007       Jams, fruit jellies,          Manufacture in which the
           marmalades, fruit or nut      value of any materials of
           purée and fruit or nut        Chapter 17 used does not
           pastes, being cooked          exceed 30% of the ex-works
           preparations, whether or not  price of the product
           containing added sugar or
           other sweetening matter
2008       Fruit, nuts and other edible
           parts of plants otherwise
           prepared or preserved,
           whether or not containing
           added sugar or other
           sweetening matter or spirit,
           not elsewhere specified or
           included:
           - Fruit and nuts cooked       Manufacture in which all the
             otherwise than by           fruit and nuts used must be
             steaming or boiling in      wholly obtained
             water, not containing
             added sugar, frozen
                                               106
 ---pagebreak--- HS heading Description of product        Working or processing carried out on non-or.ginatmg
No                                       materials that confers originating status
     ,0).                 (2)                               (3)           or         (4)
             Nuts, not containing added  Manufacture in which tne
             sugar or spirit             value of the originating nuts
                                         and oil seeds of heading
                                         Nos. 0801, 0802 and 1202
                                         to 1207 used exceeds 60%
                                         of the ex-works price of the
                                         product
             Other                       Manufacture in which all the
                                         materials used are
                                         classified in a heading other
                                         than that of the product,
                                         provided the value of any
                                         materials of Chapter 17
                                         used does not exceed 30%
                                         of the ex-works price of the
                                         product
ex 2009    Vegetable juices              Manufacture in which all the
           unfermented and not           materials used are
           containing added spirit,      classified within a heading
           whether or not containing     other than that of the "
           added sugar or other          product
           sweetening matter
ex 2009    Fruit juices (including grape Manufacture in which all the
           must), unfermented and not    materials used are
           containing added spirit,      classified in a heading other
           whether or not containing     than that of the product,
           added sugar or other          provided the value of any
           sweetening matter             materials of Chapter 17
                                         used does not exceed 30%
                                         of the ex-works price of the
                                         product
ex Chap 21 Miscellaneous edible          Manufacture in which all the
           preparations except for       materials used are
           heading Nos. ex 2101. ex      classified within a heading
           2103,2104 and ex 2106 for     other than that of the
           which the rules are set out   product
           below
ex 2101    Roasted chicory and           Manufacture in which all the
           extracts, essences and        chicory used must be wholly
           concentrates thereof          obtained
ex 2103    - Sauces and preparations      Manufacture in which all the
             therefor; mixed             materials used are
             condiments and mixed         classified within a heading
             seasonings                   other than that of the
                                          product. However, mustard
                                          flour or meal or prepared
                                          mustard may be used
           - Prepared mustard             Manufacture from mustard
                                          flour or meal
                                               107
 ---pagebreak--- HS heading  Description of product       Working or processing earned out on non-onginating
No                                        materials that confers originating status
                          (2)                              (3)             or       (4)
ex 2104     - Soups and broths and       Manufacture from materials
              preparations therefor      of any heading, except
                                         rrepared or preserved
                                         vegetables of heading Nos.
                                         2002 to 2005
6x2104        Homogenized composite       The rule for the heading in
              food preparations          which the product would be
                                         classified in bulk shall apply
ex 2106    Sugar syrups, flavoured or    Manufacture in which the
            coloured                     value of any materials of
                                         Chapter 17 used must not
                                         exceed 30% of the ex-works
                                         price of the product
ex Chap 22 Beverages, spirits and        Manufacture in which all the
           vinegar except from           materials used are
           heading Nos. 2201: 2202;      classified within a heading
           ex 2204: 2205, ex 2207. ex    other than that of the
           2208. ex 2209. for which the  product
           rules are set out below :
2201       Waters, including natural or  Manufacture in which all the
           artificial mineral waters and water used must be wholly
           aerated waters, not           obtained
           containing added sugar or
           other sweetening matter not
           flavoured; ice and snow
2202       Waters, including mineral     Manufacture in which all the
           waters and aerated waters,    materials used are
           containing added sugar or     classified in a heading other
           other non-alcohlic            than that of the product,
           beverages, not including      provided the value of any
           fruit or vegetable juices of  materials of Chapter 17
           heading No. 2009              used does not exceed 30%
                                         of the ex-works price of the
                                         product and any fruit juice
                                         used (except for pineapple,
                                         lime and grapefruit juices)
                                         must be wholy obtained
ex 2204    Wine of fresh grapes,         Manufacture from other
           including fortified wines,    grape must
           and grape must with the
           addition of alcohol
           The following, containing
           grape materials :
                                              108
 ---pagebreak---   HS heading         Descnptiôn of product                 Working or processing carried out on non-onginating
  No                                                       materials that confers onginating status
         (1)                        (2)                                          (3)             or   (4)
  2205               Vermouth and other wine of            Manufacture from materials
  ex 2207            fresh grapes flavoured with           of any heading, except
  ex 2208 and        plants or aromatic                    grapes or any material
  ex 2209            substances, ethyl alcohol             derived from grapes
                     and other spirits, denatured
                     or not; spirits, liqueurs and
                     other spirituous beverages;
                     compound alcohol
                     preparations of a kind used
                     for the manufacture of
                     beverages; vinegar
  ex 2206            Whiskies of an alcoholic              Manufacture in which the
                     strength by volume of less            value of any cereal based
                     than 50% vol                          spirits used does not
                                                           exceed 15% of the ex-works
                                                           price of the product
  ex Chap 23         Residues and waste from               Manufacture in which all the
                    the food industries;                   materials used are
                     prepared animal fodder,               classified within a heading
                    except for heading Nos. ex             other than that of the
                    2303; ex 2306; 2309 for                product
                    which the rules are set out
                    below:
 ex 2303            Residues from the                      Manufacture in which all the
                    manufacture of starch from             maize used must be wholly
                    maize (excluding                       obtained
                    concentrated steeping
                    liquors), of a protein
                    content, calculated on the
                    dry product, exceeding 40%
                    by weight
  ex 2306           Oil cake and other solid               Manufacture in which all the
                     residues resulting from the           olives used must be wholly
                    extraction of olive oil,               obtained
                     containing more than 3% of
                     olive oil
  2309               Preparations of a kind used           Manufacture in which all the
                     in animal feeding                     cereals, sugar or molasses,
                                                           must or milk used must be
                                                           wholly obtained
                                                           P)
  2401               Unmanufactured tobacco;
                    tobacco refuse :
(1 ) For these products the 'Wholly obtained* criteria, described in article 4 is always applied
                                                                109
 ---pagebreak---  HS heading  Description of product        Working or processing carried out on non-originating
 No                                        materials that confers originating status
      0)                    (2)                           (3)            or          (4)
 2402        Cigars, cheroots, cigarillos  Manufacture in which at
             and cigarettes, of tobacco   least 70% by weight of the
             or of tobacco substitutes     unmanufactured tobacco
                                           refuse of heading No. 2401
                                          used must be wholly
                                           obtained
ex 2403      Smoking tobacco              Manufacture in which at
                                          least 70% by weight of the
                                          unmanufactured tobacco
                                          refuse of heading No. 2401
                                          used must be wholly
                                          obtained
ex 2403      Other manufactured           Manufacture in which all the
            tobacco and manufactured      materials used are
            substitutes 'homogenized      classified within a heading
             or 'reconstituted' tobacco;  other than that of the
            tobacco extracts and          product
            essences
ex          Salt: sulphur; earths and     Manufacture in which all the
Chap. 25    stone; plastering materials;  materials used are
            lime and cement; except for   classified within a heading
            heading Nos ex 2504,          other than that of the
            ex 2515, ex 2516, ex 2518.    product
            ex 2519, ex 2520. ex 2524.
            ex 2525 and ex 2530 for
            which the rules are set out
            below:
ex 2504     Natural crystalline graphite, Enriching of the carbon
            with enriched carbon          content, purifying and
            content, purified and ground  grinding of crude crystalline
                                          graphite
ex 2515     Marble, merely cut by         Cutting, by sawing or
            sawing or otherwise into      otherwise, of marble (even if
            blocks or slabs of a          already sawn) of a
            rectangular (including        thickness exceeding 25 cm
            square) shape, of a
            thickness not exceeding 25
            cm
ex 2516     Granite, porphyry, basalt,    Cutting, by sawing or
            sandstone and other           otherwise, of stone (even rf
            monumental and building       already sawn) of a
            stone, merely cut by sawing   thickness exceeding 25 cm
            or otherwise, into blocks or
            slabs of a rectangular
            (including square) shape, of
            a thickness not exceeding
            25 cm
ex 2518     Calcined dolomite             Calcination of dolomite not
                                          calcined
                                               110
 ---pagebreak---  HS heading          Description of product         Working or processing earned out on non-originating
 No                                                 materials that confers originating status
       0)                            (2)                              (3)            or        (4)
 ex 2519             Crushed natural magnesium      Manufacture in which all the
                     carbonate (magnesite). in      materials used are
                     hermetically sealed            classified within a heading
                     containers, and magnesium      other than that of the
                     oxide, whether or not pure,    product. However, natural
                     other than fused magnesia      magnesium carbonate
                     or dead burned (sintered)      (magnesite) may be used
                     magnesia
  ex 2520            Plasters specially prepared    Manufacture in which the
                     for dentistry                  value of all the materials
                                                    used does not exceed 50%
                                                    of the ex-works price of the
                                                    product
  ex 2524            Natural asbestos fibres        Manufacture from asbestos
                                                    concentrate
 ex 2525             Mica powder                    Grinding of mica or mica
                                                    waste
 ex 2530             Earth colours, calcined or     Calcination or grinding of
                     powdered                       earth colours
 Chap. 26            Ores, slag and ash             Manufacture in which all the
                                                    materials used are
                                                    classified within a heading
                                                    other than that of the
                                                    product
 ex                  Mineral fuels, mineral oils    Manufacture in which all the
 Chap. 27            and products of their          materials used are
                     distillation; bituminous       classified within a heading
                     substances; mineral waxes;     other than that of the
                     except for                     product
                     heading Nos ex 2707
                     and 2709 to 2715 for which'
                     the rules are set out below:
  ex 2707            Oils in which the weight of     Operations of refining
                     the aromatic constituents       and/or one or more specific
                     exceeds that of the non-        process(es) (i)
                      aromatic constituents, being
                      oils similar to mineral oils   Other operations in which
                      obtained by distillation of    all the materials used are
                      high temperature coal tar, of  classified within a heading
                      which more than 65% by         other than that of the
                      volume distils at a            product. However,
                      temperature of up to 250°C     materials classified within
                      (including mixtures of         the same heading may be
                      petroleum spirit and           used provided their value
                      benzole), for use as power     does not exceed 50% of the
                      or heating fuels               ex-works price of the
                                                     product
  ex 2709             Crude oils obtained from       Destructive distillation of
                      bituminous minerals             bituminous materials
(1) See Introductory Note 6-Annex I
                                                           111
 ---pagebreak---      HS heading          Description of product        Working or processing carried out on non-onginating
     No                                                materials that confers originating status
            (1)                        (2)                              (3)           or         (4)
    2710 to 2712         Petroleum oils and oils       Operations of refining
                         obtained from bituminous      and/or one or more specific
                        materials/other than crude;    process(es) (1 )
                        preparations not elsewhere    Other operations in which
                        specified or included,        all the materials used are
                        containing by weight 70% or   classified within a heading
                        more of petroleum oils or of  other than that of the
                        oils obtained from            product. However,
                        bituminous materials, these   materials classified within
                        oils being the basic          the same heading may be '
                        constituents of the           used provided their value
                        preparations                  does not exceed 50% of the
                                                      ex-works price of the
                         Petroleum gases and other    product
                        gaseous hydrocarbons
                        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
   2713 to 2715         Petroleum coke, petroleum     Operations of refining
                        bitumen and other residues    and/or one or more specific
                        of petroleum oils or of oils  process(es) (1)
                        obtained from bituminous
                        materials                     Other operations in which
                                                      all the materials used are
                       Bitumen and asphalt,           classified within a heading
                        natural; bituminous or oil    other than that of the
                        shale and tar sands;          product. However,
                        asphaltites and asphaltic     materials classified within
                        rocks                         the same heading may be
                                                      used provided their value
                        Bituminous mixtures based     does not exceed 50% of the
                        on natural asphalt, on        ex-works price of the
                        natural bitumen, on           product
                        petroleum bitumen, on
                        mineral tar or on mineral tar
                        pitch
( 1 ) See Introductory Note 6 - Annex
                                                            112
 ---pagebreak---  HS heading  Description of product         Working or processing carried out on non-onginating
 No                                         materials that confers originating status
      (1)                  (2)                              (3)           or               (4)
 ex          Inorganic chemicals;           Manufacture in which all the     Manifacture in which the
 Chap. 28    organic or inorganic           materials used are               value of all the materials
             compounds or precious          classified within a heading      used does not exceed 40%-
             metals, of rare-earth metals,  other than that of the           of the ex-work price of the
             of radioactive elements or of  product. However,                product
             isotopes; except for           materials classified within
             heading Nos ex 2805.           the same heading may be
             ex 2811. ex 2833 and           used provided their value
             ex 2840 for which the rules    does not exceed 20% of the
             are set out below:             ex-works price of the
                                            product
ex 2805      "Mischmetair                   Manufacture by electrolytic
                                            or thermal treatment in
                                           which the value of all the
                                            materials used does not
                                           exceed 20% of the ex-works
                                           price of the product
ex 2811     Sulphur trioxide               Manufacture from sulphur          Manifacture in which the
                                           dioxide                           value of all the materials
                                                                             used does not exceed 4 0 %
                                                                             of the ex-work price of the
                                                                             product
ex 2833     Aluminium sulphate             Manufacture in which the
                                           value of all the materials
                                           used does not exceed 50%
                                           of the ex-works price of the
                                           product
ex 2840     Sodium perborate               Manufacture from disodium         Manifacture in which the
                                           tetraborate pentahydrate          value of all the materials
                                                                             used does not exceed 40%
                                                                             of the ex-work price of the
                                                                             product
ex          Organic chemicals; except      Manufacture in which all the      Manifacture in which the
Chap. 29    for heading Nos ex 2901.       materials used are                value of all the materials
            ex 2902. ex 2905, 2915.        classified within a heading       used does not exceed 40%
            2932. 2933 and 2934. for       other than that of the            of the ex-work price of the
            which the rules are set out    product. However,                 product
            below:                         materials classified within
                                           the same heading may be
                                           used provided their value
                                           does not exceed 20%> of the
                                           ex-works price of the
                                           product
                                                113
 ---pagebreak---   HS heading        Description of product       Working or processing carried out on non-originating
  No                                             materials that confers originating status
       (1)                        (2)                             (3)             or              (4)
  ex 2901           Acyclic hydrocarbons for     Operations of refining
                    use as power or heating     and/or one or more specific
                   fuels                        process(es) (1 )
                                                Other operations in which
                                                all the materials used are
                                                classified within a heading
                                                other than that of the
                                                product. However,
                                                materials classified within '
                                                the same heading may be
                                                used provided their value
                                                does not exceed 50% of the
                                                ex-works price of the
                                                product
                   Cyclanes and cyclenes        Operations ot refining
 ex 2902
                   (other than azulenes).       and/or one or more specific
                   benzene, toluene, xylenes,   process(es) (1)
                   for use as power or heating
                   fuels
                                                Other operations in which
                                                all the materials used are
                                                classified within a heading
                                                other than that of the
                                                product. However,
                                                materials classified within
                                                the same heading may be
                                                used, provided their value
                                                does not exceed 50% of the
                                                ex-works price of the
                                                product
 ex 2905           Metal aicoholates of         Manufacture from materials        Manifacture in which the
                   alcohols of this heading and of any heading, including         value of all the materials
                   of ethanol or glycerol       other materials of                used does not exceed 40°<«
                                                heading No 2905.                  of the ex-work price of the
                                                However, metal aicoholates        product
                                                of this heading may be
                                                used, provided their value
                                                does not exceed 20% of the
                                                ex-works price of the
                                                product
W See Introductory Note 6 - Annex
                                                     114
 ---pagebreak---  HS heading  Description of product        Working or processing carried oui: on non-ongmating
 No                                        materials that confers originating status
      (1                    (2)                               (3)           or              (4;
 2915        Saturated acyclic             Manufacture from materials       Manifacture in which the
             monocarboxylic acids and      of any heading. However,         value of all the materials
             their anhydrides, halides.    the value of all the matenals    used does not exceed 40%
             peroxides and peroxyacids;    of heading Nos 2915              of the ëx-work price of the
             their halogenated.            and 2916 used may not            product
             sulphonated. nitrated or      exceed 20% of the ex-works
             nitrosated derivatives        pnce of the product
 2932        Heterocyclic compounds
             with oxygen hetero-atom(s)
             only:
            - Internal ethers and their   Manufacture from materials        Manifacture in which the
                 halogenated.             of any heading However,           value of all the matenals
                 sulphonated. nitrated or the value of all the materials    used does not exceed 40%
                 nitrosated derivatives   of heading No 2909 used           of the ex-work price of the
                                          may not exceed 20%i of the v      product
                                          ex-works price of the
                                          product
            - Cyclic acetals and internal Manufacture from materials        Manifacture in which the
                hemiacetals and their     of any heading                    value of all the materials
                halogenated.                                                used does not exceed 40%
                sulphonated. nitrated or                                    of the ex-work price of the
                nitrosated derivatives                                      product
            - Other                       Manufacture in which all the      Manifacture in which the
                                          materials used are                value of all the materials
                                          classified within a heading       used does not exceed 40%
                                          other than that of the            of the ex-work price of the
                                          product. However,                 product
                                          materials classified within
                                          the same heading may be
                                          used provided their value
                                          does not exceed 20% of the
                                          ex-works price of the
                                          product
2933        Heterocyclic compounds        Manufacture from materials        Manifacture in which the
            with nitrogen hetero-atom(s)  of any heading. However,          value of all the materials
            only: nucleic acids and their the value of all the materials    used does not exceed 40°'<
            salts                         of heading Nos 2932               of the ex-work price of the
                                          and 2933 used may not             product
                                          exceed 20% of the ex-works
                                          price of the product
                                               115
 ---pagebreak--- HS heaoing  Description of product       Working or processing earned out on non-originating
No                                       materials that confers originating status
                           (2)                            (3)           or              (4)
2934        Other heterocyclic           Manufacture from materials       Manifacture in which the
            compounds                    of any heading. However,         value of all the materials
                                         the value of all the materials   used does not exceed 40°<
                                         of heading Nos 2932, 2933        of the ex-work price of the
                                         and 2934 used may not            product
                                         exceed 20% of the ex-works
                                         price of the product
ex          Pharmaceutical products.     Manufacture in which all the
Chap. 30    except for                  materials used are
            heading Nos 3002. 3003      classified within a heading
            and 3004, for which the     other than that of the
            rules are set out below:    product. However,
                                        materials classified within
                                        the same heading may be
                                        used provided their value
                                        does not exceed 20% of the
                                        ex-works price of the
                                        product
3002       Human blood; animal blood
           prepared for therapeutic,
           prophylactic or diagnostic
           uses; antisera and other
           blood fractions; vaccines,
           toxins, cultures of
           micro-organisms (excluding
           yeasts) and similar
           products:
           -   Products consisting of   Manufacture from materials
              -two or more constituents of any heading, including
               which have been mixed    other materials of
               together for therapeutic heading No 3002. The
               or prophylactic uses or  materials of this description
               unmixed products for     may also be used, provided
               these uses, put up in    their value does not
               measured doses or in     exceed 20% of the ex-works
               forms or packings for    price of the product
               retail sale
           - Other:
           - - human blood              Manufacture from materials
                                        of any heading, including
                                        other materials of
                                        heading No 3002. The
                                        materials of this description
                                        may also be used, provided
                                        their value does not
                                        exceed 20% of the ex-works
                                        price of the product
                                             116
 ---pagebreak--- HS heading Description of product    Working or processing earned out on non-originating
No                                   materials that confers originating status
     0)                 (2)                            (3)            or        (4)
           - - animal blood prepared Manufacture from materials
               for therapeutic or    of any heading, including
               prophylactic uses     other materials of
                                     heading No 3002. The
                                     materials of this description
                                     may also be used, provided
                                     their value does not
                                     exceed 20% of the ex-works
                                     price of the product
               blood fractions other Manufacture from materials
               than antisera,        of any heading, including
               haemoglobin and       other materials of
               serum globulin        heading No 3002. The
                                     materials of this description
                                     may also be used, provided
                                     their value does not
                                     exceed 20% of the ex-works
                                     price of the product
               haemoglobin, blood    Manufacture from materials
               globulin and serum    of any heading, including
               globulin              other materials of
                                     heading No 3002. The
                                     materials of this description
                                     may also be used, provided
                                     their value does not
                                     exceed 20% of the ex-works
                                     price of the product
              other                  Manufacture from materials
                                     of any heading, including
                                     other materials of
                                     heading No 3002. The
                                     materials of this description
                                     may also be used, provided
                                     their value does npt
                                     exceed 20% of the ex-works
                                     price of the product
                                          117
 ---pagebreak---     HS heading  Descnption of product          Working or processing carried out on non-originating
    No                                        materials that confers originating status
         (•)                  (2)                                (3)           or              (4)
   3003         Medicaments (excluding        Manufacture in which:
   and 3004     goods of heading No 3002.
                3005 and 3006)                - all the materials used are
                                                 classified within a
                                                 heading other than that of
                                                 the product. However,
                                                 materials of heading No
                                                 3003 or 3004 may be
                                                 used provided their value,
                                                taken together, does not
                                                 exceed 20% of the
                                                 ex-works price of the
                                                 product, and
                                              - the value of all the
                                                 materials used does not
                                                exceed 50% of the
                                                ex-works price of the
                                                 product
II ex          Fertilizers; except for        Manufacture in which all the     Manifacture in which the
   Chap. 31    heading No ex 3105 for         materials used are               value of all the materials
               which the rule is set out      classified within a heading      used does not exceed 40%
               below:                         other than that of the           of the ex-work price of the
                                              product. However,                product
                                              materials classified within
                                              the same heading may be
                                              used provided their value
                                              does not exceed 20% of the
                                              ex-works price of the
                                              product
   ex 3105     Mineral or chemical            Manufacture in which:            Manifacture in which the
               fertilizers containing two or  - all the materials used are     value of all the materials
               three of the fertilizing          classified within a           used does not exceed 40%
               elements nitrogen,                heading o'ther than that of   of the ex-work price of the
               phosphorous and                  the product. However,          product
               potassium, other fertilizers;    materials classified within
               goods of this Chapter, in        tne same heading may be
               tablets or similar forms or in    used provided their value
               packages of a gross weight        does not exceed 20% of
               not exceeding 10 kg. except      the ex-works price of the
               for:                              product, and
               - sodium nitrate               - the value of all the
               - calcium cyanamide               materials used does not
               - potassium sulphate              exceed 50% of the
               - magnesium potassium             ex-works price of the
                  sulphate                       product
                                                   118
 ---pagebreak---  HS heading         Descnption of product             Working or processing carried out on non-originating
 No                                                   materials that confers originating status
        (D                        (2)                                   (3)            or              (4)
 ex                 Tanning or dyeing extracts;       Manufacture in which all the     Manifacture in which the
 Chap. 32           tannins and their                 materials used are               value of all the materials
                    derivatives; dyes, pigments       classified within a heading      used does not exceed 40%
                    and other colouring matter;       other than that of the           of the ex-work price of the
                    paints and varnishes; putty     l product. However,                product
                    and other mastics; inks;          materials classified within
                    except for:                       the same heading may be
                                                      used provided their value
                                                      does not exceed 20% of the
                                                      ex-works price of the
                                                      product
  ex 3201           Tannins and their salts,          Manufacture from tanning         Manifacture in which the
                    esters, ethers, and other         extracts of vegetable origin     value of all the materials
                    derivatives                                                        used does not exceed 40%
                                                                                       of the ex-work price of the
                                                                                       product
 3205               Colour lakes; preparations        Manufacture from materials       Manifacture in which the
                    as specified in Note 3 to this    of any heading, except           value of all the materials
                    Chapter based on colour           heading Nos 3203. 3204           used does not exceed 40%
                    lakes (1)                         and 3205. However,               of the ex-work price of the
                                                      materials from                   product
                                                      heading No 3205 maybe
                                                      used provided their value
                                                      does not exceed 20% of the
                                                      ex-works price of the
                                                      product
 ex                 Essential oils and resinoids:     Manufacture.in which all the     Manifacture in which the
 Chap. 33           perfumery, cosmetic or toilet     materials used are               value of all the materials
                    preparations; except for          classified within a heading      used does not exceed 40°/i
                    heading No 3301. for which        other than that of the           of the ex-work price of the
                    the rule is set out below:        product. However,                product
                                                      materials classified within
                                                      the same heading may be
                                                      used provided their value
                                                      does' not exceed 20% of the
                                                      ex-wo'ks price of the
                                                      product
(1)    Note 3 to Chapter 32 says that these preparations are those of a kind used for colouring any material or used as
       ingredients in the manufacturing ol colouring preparations, provided they are not classified in another heading in
       Chapter 32.
                                                           119
 ---pagebreak---     HS heading         Description of product              Working or processing carried out on non-originating
    No                                                     materials that confers originating status
         (1)                           (2)                                    (3)             or              (4)
   3301                Essential oils (terpeneless         Manufacture from materials         Manifacture in which the
                       or not), including concretes        of any heading, including          value of all the materials
                       and absolutes; resinoids;           materials of a different           used does not exceed 40%
                       concentrates of essential           "group" (1) in this heading.       of the ex-work price of the
                       oils in fats, in fixed oils, in     However, materials of the          product
                       waxes or the like, obtained         same group may be used,
                       by enfleurage or                   provided their value does
                       maceration; terpenic                not exceed 20% of the
                       by-products of the                 ex-works price of the
                       deterpenation of essential         product
                       oils; aqueous distillates and
                       aqueous solutions of
                       essential oils
   ex                  Soap, organic surface-             Manufacture in which all the        Manifacture in which the
   Chap. 34            active agents, washing             materials used are                  value of all the materials
                       preparations, lubricating          classified within a heading         used does not exceed 40%
                       preparations, artificial           other than that of the              of the ex-work price of the
                      waxes, prepared waxes,              product. However,                   product
                      polishing or scouring               materials classified within
                      preparations, candles and           the same heading may be
                      similar articles, modelling         used provided their value
                      pastes, "dental waxes" and          does not exceed 20% of the
                      dental preparations with a          ex-works price of the
                      basis of plaster: except for        product
                      heading Nos ex 3403
                      and 3404, for which the
                      rules are set out below:
  ex 3403             Lubricating preparations            Operations of refining
                      containing petroleum oils or        and'br one or more specific
                      oils obtained from                  process(es) (2)
                      bituminous minerals,
                      provided they represent less
                      than 70% by weight
                                                          Other operations in which
                                                          all the materials used are
                                                          classified within a heading
                                                          other than that of the
                                                          product. However,
                                                          materials classified within
                                                          the same heading may be
                                                          used provided their value
                                                          does not exceed 50% of the
                                                          ex-works price of the
                                                          product
(1 )    A 'group* is regarded as any part of the heading separated from the rest by 8 semi-colon.
(2)    See Introductory Note 6 - Annex I.
                                                                120
 ---pagebreak--- HS heading Description of product         Working or processing earned out on non-originating
No                                        materials that confers originating status
      0)                 (2)                              (3)            or               (4)
3404       Artificial waxes and
           prepared waxes:
                                        r
           - Artificial waxes and        Manufacture in which all the
             prepared waxes with a       materials used are
             basis of paraffin,          classified within a heading
             petroleum waxes, waxes      other than that of the
             obtained from bituminous    product. However,
             minerals, slack wax or      materials classified within
             scale wax                   the same heading may be
                                         used provided their value
                                         does not exceed 50% of the
                                         ex-works price of the
                                         product
           - Other                       Manufacture from materials        Manifacture in which the
                                         of any heading, except:           value of all the materials
                                         - hydrogenated oils having        used does not exceed 40%
                                            the character of waxes of      of the ex-work price of the
                                            heading No 1516                product
                                         - fatty acids not chemically
                                            defined or industrial fatty
                                            alcohols having the
                                            character of waxes of
                                            heading No 1519
                                         - materials of
                                            heading No 3404
                                         However, these materials
                                         may be used provided their
                                         value does not exceed 20%
                                         of the ex-works price of the
                                         product
ex         Albuminoidal substances;      Manufacture in which all the
Chap. 35   modified starches; glues;     materials used are
           enzymes; except for           classified within a heading
           heading Nos 3505 and          other than that of the
           ex 3507 for which the rules   product. However,
           are set out below:            materials classified within
                                         the same heading may be
                                         used provided their value
                                         does not exceed 20% of the
                                         ex-works price of the
                                          product
3505       Dextrins and other modified
           starches (for example,
           pregelatinized or esterified
           starches); glues based on
           starches, or on dextrins or
           other modified starches:
                                              121
 ---pagebreak--- HS heading Description of product          Working or processing earned out on non-originating
No                                         m a t e r i a l s that
                                           materials         that confers
                                                                  mnlare originating
                                                                          nr.n.nitonn ctatl  IC
                                                                                        status
     V)                    (2)                                      (3)              or              (4)
           - Starch ethers and esters      Manufacture from materials
                                           of any heading, including
                                           other materials of
                                           heading No 3505
           - Other                         Manufacture from materials
                                           of any heading, except
                                           these of heading No 1108
ex 3507    Prepared enzymes not            Manufacture in which the
           elsewhere specified or          value of all the materials
           included                        used does not exceed 50%
                                           of the ex-works price of the
                                           product
Chap. 36   Explosives; pyrotechnic         Manufacture in which all the              Manifacture in which the
           products; matches;              materials used are                        value of all the materials
           pyrophoric alloys; certain      classified within a heading               used does not exceed 40°'«
           combustible preparations        other than that of the                    of the ex-work price of the
                                           product. However,                         product
                                           materials classified within
                                           the same heading may be
                                           used provided their value
                                           does not exceed 20% of the
                                           ex-works price of the
                                           product
ex         Photographic or                 Manufacture in which all the              Manifacture in which the
Chap. 37   cinematographic goods;          materials used are                        value of all the materials
           except for                      classified within a heading               used does not exceed 40°<
           heading Nos 3701. 3702          other than that of the                    of the ex-work price of the
           and 3704 for which the rules    product. However,                         product
           are set out below:              materials classified within
                                           the same heading may be
                                           used provided their value
                                           does not exceed 20% of the
                                           ex-works price of the
                                           product
3701       Photographic plates and
           film in the flat, sensitized,
           unexposed, of any material
           other than paper,
           paperboard or textiles;
           instant print film in the flat,
           sensitized, unexposed,
           whether or not in packs:
                                                  122
 ---pagebreak--- HS heading                                 Working or processing carried out on non-origmating
No                                         materials that confers originating status
     (1)                                                     (3)            or              (4)
           - Instant print film for colour Manufacture in which all the     Manifacture in which the
              photography, in packs        materials used are               value of all the materials
                                           classified within a head'ng      used does not exceed 40%
                                           other than                       of the ex-work price of the
                                           heading Nos 3701 or 3702.        product
                                           However, materials from
                                           heading No 3702 may be
                                           used provided their value
                                           does not exceed 30% of the
                                           ex-works price of the
                                           product
           - Other                         Manufacture in which all the     Manifacture in which the
                                           materials used are               value of all the materials
                                           classified within a heading      used does not exceed 40%
                                           other than heading No 3701       of the ex-work price of the
                                           or 3702. However,                product
                                           materials from
                                           heading Nos 3701 and 3702
                                           may be used provided their
                                           value taken together, does
                                           not exceed 20% of the
                                           ex-works price of the
                                           product
3702       Photographic film in rolls,     Manufacture in which all the     Manifacture in which the
           sensitized, unexposed, of       materials used are               value of all the materials
           any material other than         classified within a heading      used does not exceed 40%
           paper, paperboard or            other than                       of the ex-work price of the
           textiles; instant print film in heading Nos 3701 or 3702         product
           rolls, sensitized, unexposed
3704       Photographic plates, film       Manufacture in which all the '    Manifacture in which the
           paper, paperboard and           materials used are                value of all the materials
           textiles, exposed but not       classified within a heading       used does not exceed 40%
           developed                       other than                        of the ex-work price of the
                                           heading Nos 3701 to 3704          product
ex          Miscellaneous chemical         Manufacture in which all the      Manifacture in which the
Chap. 38    products; except for           materials used are                value of all the materials
            heading Nos 3801. ex 3803.     classified within a heading       used does not exceed 40%
            ex 3805. ex 3806. ex 3807.     other than that of the            of the ex-work price pf the
            3808 to 3814. 3818 to 3820.    product. However,                 product
            3822 and 3823 for which        materials classified within
            the rules are set out below:   the same heading may be
                                            used provided their value
                                            does not exceed 20% of the
                                            ex-works price of the
                                            product
                                                123
 ---pagebreak--- HS heading Description of product         Working or processing earned out on non-originating
No                                        materials that confers onginating status
      (D                  (2)                                (3)          or              (4)
3801       Artificial graphite; colloidal
           or semi-colloidal graphite;
           preparations based on
           graphite or other carbon in
           the form of pastes or other
           semi-manufactures :
           - Colloidal graphite in        Manufacture in which the
             suspension in oil and        value of all the materials
             semi-colloidal graphite;     used does not exceed 50% '
              carbonaceous pastes for     of the ex-works price of the
             electrodes                   product
           - Graphite in paste form,      Manufacture in which the        Manifacture in which the
              being a mixture of more     value of all the materials of   value of all the materials
             than 30% by weight of        heading No 3403 used does       used does not exceed 40%
             graphite with mineral oils   not exceed 20% of the           of the ex-work price of the
                                          ex-works price of the           product
                                          product
           - Other                        Manufacture in which all the    Manifacture in which the
                                          materials used are              value of all the materials
                                          classified within a heading     used does not exceed 40%
                                          other than that of the          of the ex-work price of the
                                          product. However,               product
                                          materials classified within
                                          the same heading may be
                                          used provided their value
                                          does not exceed 20% of the
                                          ex-works price of the
                                          product
ex 3803    Refined tall oil               Refining of crude tall oil      Manifacture in which the
                                                                          value of all the materials
                                                                          used does not exceed 40%
                                                                          of the ex-work price of the
                                                                          product
ex 3805    Spirits of sulphate            Purification by distillation or Manifacture in which the
           turpentine, purified           refining of raw spirits of      value of all the mate-ials
                                          sulphate turpentine              used does not exceed 40%
                                                                          of the ex-work price of the
                                                                          product
ex 3806    Ester gums                      Manufacture from resin          Manifacture in which the
                                          acids                            value of all the materials
                                                                           used does not exceed 40%
                                                                           of the ex-work price of the
                                                                           product
ex 3807    Wood pitch (wood tar pitch)     Distillation of wood tar        Manifacture in which the
                                                                           value of all the materials
                                                                           used does not exceed 40%
                                                                           of the ex-work price of the
                                                                           product
                                               124
 ---pagebreak--- HS heading Description of product         Working or processing carried out on non-originating
No                                        matenals that confers originating status
     (1)                  (2)                               (3)           or          (4)
3808       Insecticides, rodenticides.    Manufacture in which the
           fungicides, herbicides,        value of all the materials
           anti-sprouting products and    used does not exceed 50%
           plant-growth regulators,       of the ex-works price of the
           disinfectants and similar      products
           products, put up in forms of
           packings for retail sale or as
           preparations or articles (for
           example, sulphur-treated
           bands, wicks and candles,
           and fly-papers)
3809       Finishing agents, dye          Manufacture in which the
           carriers to accelerate the     value of all the materials
           dyeing or fixing of dyestuffs  used does not exceed 50%
           and other products and         of the ex-works price of the
           preparations (for example,     products
           dressings and mordants), of
           a kind used in the textile,
           paper, leather or like
           industries, not elsewhere
           specified or included
3810       Pickling preparations for      Manufacture in which the
           metal surfaces: fluxes and     value of al! the materials
           other auxiliary preparations   used does not exceed 50%
           for soldering, brazing or      of the ex-works price of the
           welding: soldering, brazing    products
           or welding powders and
           pastes consisting of metal
           and other materials;
           preparations of a kind used
           as cores or coatings for
           welding electrodes or rods
3811       Anti-knock preparations,
           oxidation inhibitors, gum
           inhibitors, viscosity
           improvers, anti-corrosive
           preparations and other
           prepared additives, for
           mineral oils (including
           gasoline) or for other liquids
           used for the same purposes
           as mineral oils:
                                               125
 ---pagebreak---  HS heaoing  Description of product          Working or processing earned out on non-onginating
 Mo                                          materials that confers originating status
      0                     (2)                              (3)            or         (4)
             - Prepared additives for        Manufacture in which the
                lubricating oil. containing value of all the materials of
                petroleum oils or oils      heading No 3811 used does
                obtained from bituminous    not exceed 50% of the
                minerals                    ex-works price of the
                                            product
             - Other                        Manufacture in which the
                                            value of all the matenals
                                            used does not exceed 50%
                                            of the ex-works price of the
                                            product
 3812        Prepared rubber                Manufacture in which the
             accelerators; compound         value of all the materials
             plasticizers for rubber or     used does not exceed 50%
             plastics, not elsewhere        of the ex-works price of the
             specified or included;         product
             anti-oxidizing preparations
             and other compound
             stabilizers for rubber or
             plastics
3813         Preparations and charges       Manufacture in which the
            for fire-extinguishers;         value of all the materials
            charged fire-extinguishing      used does not exceed 50%
            grenades                        of the ex-works pnce of the
                                            product
3814        Organic composite solvents      Manufacture in which the
            and thinners, not elsewhere     value of all the materials
            specified or included;          used does not exceed 50%
            prepared paint or vanish        of the ex-works price of the
            removers                        product
3818        Chemical elements doped         Manufacture in which the
            for use in electronics, in the  value of all the materials
            form of discs, wafers or        used does not exceed 50%
            similar forms; chemical         of the ex-works price of the
            compounds doped for use         product
            in electronics
3819        Hydraulic brake fluids and      Manufacture in which the
            other prepared liquids for      value of all the materials
            hydraulic transmission, not     used does not exceed 50%
            containing or containing        of the ex-works price of the
            less than 70% by weight of      product
            petroleum oils or oils
            obtained from bituminous
            minerals
                                                 126
 ---pagebreak---      Description of product         Working or processing earned out on non-ongmating
                                    materials that confers originating status
                    (2)                               (3)            or             (4)
3820 Anti-freezing preparations     Manufacture in which the
     and prepared de-icing fluids   value of all the materials
                                    used does not exceed 50%
                                    of the ex-works price of the
                                    product
3822 Composite diagnostic or        Manufacture in which the
     laboratory reagents, other     value of all the materials
     than those of                  used does not exceed 50%
     heading No 3002 or 3006        of the ex-works price of the*
                                    product
3823 Prepared binders for
     foundry moulds or cores;
     chemical products and
     preparations of the chemical
     or allied industries
     (including those consisting
     of mixtures of natural
     products), not elsewhere
     specified or included;
     residual products of the
     chemical or allied
     industries, not elsewhere
     specified or included:
     - The following of this        Manufacture in which all the     Manifacture in which the
        heading:                    materials used are               value of all the materials
                                    classified within a heading      used does not exceed 40%
        — Prepared binders for      other than that of the           of the ex-work price of the
            foundry moulds or       product. However,                product
            cores based on          materials classified within
            natural resinous        the same heading may be
            products                used provided their value
                                    does not exceed 20% of the
                                    ex-works price of the
        — Naphthenic acids,
                                    product
            their water insoluble
            salts and their esters
        — Sorbitol other than
            that of
            heading No 2905
        — Petroleum
            sulphonates,
            excluding petroleum
            sulphonates of alkali
            metals, of ammonium
            or of ethanolamines;
            thiophenated
            sulphonic acids of oils
            obtained from
             bituminous minerals,
             and their salts
        — Ion exchangers
                                         127
 ---pagebreak---  HS heacing  Description of product         Working or processing carried out on non-onginating
 No                                         materials that confers originating status
      0)                   (2)                              (3)            or         (4)
               — Getters for vacuum
                   tubes
               — Alkaline iron oxide for
                   the purification of gas
               — Ammoniacal gas
                   liquors and spent
                   oxide produced in
                   coal gas purification
               — Sulphonaphthenic
                   acids, their water
                   insoluble salts and
                   their esters
               — Fusel oil and Dippel's
                   oil
               — Mixtures of salts
                   having different
                   anions
              — Copying pastes with a
                   basis of gelatin,
                   whether or not on a
                   paper or textile
                   backing
            - Other                        Manufacture in which the
                                           value of all the materials
                                           used does not exceed 50%
                                           of the ex-works price of the
                                           product
ex 3901 to  Plastics in primary forms,
3915        waste, parings and scrap, of
            plastic; except for
            heading No ex 3907 for
            which the rule is set out
            below:
                                                128
 ---pagebreak---   HS heaoing           Descnption of product               Working or processing earned out on non-originating
  No                                                      materials that confers originating status
          (1)                        (2)                                       (3)                or              (4)
                       - Addition                         Manufacture in which:                   Manifacture in which the
                          homopolymenzation               - the value of all the                  value of all the materials
                          products                           materials used does not              used does not exceed 25%
                                                             exceed 50% of the                    of the ex-work price of the
                                                             ex-works price of the                product
                                                             product, and
                                                          - the value of any materials
                                                             of Chapter 39 used does
                                                             not exceed 20% of the •
                                                             ex-works price of the
                                                             product (1)
                      - Other                             Manufacture in which the                Manifacture in which the
                                                          value of the materials of               value of all the materials
                                                          Chapter 39 used does not                used does not exceed 25°-.
                                                          exceed 20% of the ex-works              of the ex-work price of the
                                                          price of the product (i)                product
  ex 3907             Copolymer, made from                Manufacture in which all the
                      polycarbonate and                   materials used are
                      acrylonitrile-butadiene-            classified within a heading
                      styrene copolymer (ABS)             other than that of the
                                                          product. However,
                                                          materials classified within
                                                          the same heading may be
                                                          used provided their value
                                                          does not exceed 50% of the
                                                          ex-works price of the
                                                          product (1)
  ex 3916 to          Semi-manufactures and
  3921                articles of plastics: except
                      for heading Nos ex 3916. ex
                      3917, ex 3920 and ex 3921.
                      for which the rules are set
                      out below:
                      - Flat products, further            Manufacture in which the                Manifacture in which the
                         worked than only                 value of any materials of               value of all the materials
                         surface-worked or cut into       Chapter 39 used does not                used does not exceed 25%
                         forms other than                 exceed 50% of the ex-works              of ihe ex-work price of the
                         rectangular or square;           price of the product                    product
                         other products, further
                         worked than only surface-
                         worked
                      - Other:
(1) In the case of the products composed of materials classified within both heading Nos 3901 to 3906, on the one hand, and
    withirt heading Nos 3907 to 3911. on the other hand, this restriction only applies to that group of materials which predominates
    by weight in the product.
                                                               129
 ---pagebreak---   HS heading          Descnpnon of product               Working or processing earned out on non-onginating
  No                                                     materials that confers originating status
         (D                          (2)                                     (3)               or               (4)
                      — Addition                         Manufacture in which:                  Manifacture in which the
                          homopolymerization             - the value of a!' the                 value of all the materials
                          products                            materials used does not           used does not exceed 25%
                                                              exceed 5C% of the                 of the ex-work price of the
                                                              ex-works price of the             product
                                                              product and
                                                         - the value of any materials
                                                             of Chapter 39 used does
                                                              not exceed 20% of the
                                                             ex-works price of the
                                                              product (1)
                      — Other                            Manufacture in which the               Manifacture in which the
                                                         value of any materials of              value of all the materials
                                                         Chapter 39 used does not               used does not exceed 25%
                                                         exceed 20% of the ex-works             of the ex-work price of the
                                                         price of the product (1)               product
  ex 3916 and         Profile shapes and tubes           Manufacture in which:                  Manifacture in which the
  ex 3917                                                - the value of all the                 value of all the materials
                                                              materials used does not           used does not exceed 25%
                                                              exceed 50% of the                 of the ex-work price of the
                                                             ex-works price of the              product
                                                              product, and
                                                         - the value :»? :ny materials
                                                              classified within the
                                                              same heading as the
                                                              product does not
                                                              exceed 20% of the
                                                              ex-works price of the
                                                              product
  ex 3920             lonomer sheet or film              Manufacture from a                     Manifacture in which the
                                                         thermoplastic partial salt             value of all the.materials
                                                         which is a copolymer of                used does not exceed 25%
                                                         ethylene and metacrylic                of the ex-work price of the
                                                         acid partly neutralized with           product
                                                         metal ions, mainly zinc and
                                                         sodium
  ex 3921             Foils of plastic, metallized       Manufacture f'om highly                Manifacture in which the
                                                         transparent polyester foils            value of all the materials
                                                         with a thickness of less               used does not exceed 25%
                                                         than 23 micron (2)                     of the ex-work price of the
                                                                                                product
  3922 to 3926        Articles of plastics                Manufacture in which the
                                                         value of all the materials
                                                          used does not exceed 50%
                                                          of the ex-works price of the
                                                          product
(1) In the case of the products composed of materials classified within both heading Nos 3901 to 3906. on the one hand, and
    within heading Nos 3907 to 3911. on the other hand, this restnction only applies to that group of matenals which predominates
    by weight in the product.
(2) The following foils shall be considered as highly transparent, foils, the optical dimming o1 which - measured according to
    ASTM-D 1003-16 by Gardner Hazemeter (i.e. Hazelactor) - is less than 2%
                                                               130
 ---pagebreak---                Description of product         Working or processing earned oui: on non-originating
                                              matenals that confers originating status
                             (2)                                (3)           or          (4)
               Rubber and articles thereof;   Manufacture in which all the
               except for                     materials used are
               heading Nos ex 4001. 4005.     classified within a heading
              4012 and ex 4017 for which      other than that of the
              the rules are set out below:    product
 ex 4001       Laminated slabs or crepe       Lamination of sheets of
               rubber for shoes               natural rubber
 4005          Compound rubber,               Manufacture in which the
              unvulcanized. in primary        value of all the materials
              forms or in plates, sheets or   used, except natural rubber,
              strip                          does not exceed 50% of the
                                             ex-works price of the
                                              product
4012          Retreaded or used
              pneumatic tyres of rubber;
              solid or cushion tyres,
              interchangeable tyre treads
              and tyre flaps, of rubber:
             -    Retreaded pneumatic,       Retreading of used tyres
                  solid or cushion tyres, of
                  rubber
             - Other                         Manufacture from materials
                                             of any heading, except
                                             those of heading Nos 4011
                                             or 4012
ex 4017      Articles of hard rubber         Manufacture from hard
                                             rubber
ex           Raw hides and skins (other      Manufacture in which all the
Chap. 41     than furskins) and leather;     matenals used are
             except for                      classified within a heading
             heading Nos ex 4102. 4104       other than that of the
             to 4107 and 4109 for which      product
             the rules are set out below:
ex 4102      Raw skins of sheep or           Removal of wool from
             lambs, without wool on          sheep or lamb skins, with
                                             wool on
4104 to 4107 Leather, without hair or        Retanning of pre-tanned
             wool, other than leather of     leather
             heading Nos 4108 or 4109        or
                                             Manufacture in which all the
                                             materials used are
                                             classified within a heading
                                             other than that of the
                                             product
                                                  131
 ---pagebreak--- HS heading  Description of product        Working or process.ng carried out on non-originating
No                                         matenals that confers originating status
      (1)                  (2)                              (3)            or
4109         Patent leather and patent     Manufacture from leather of
            laminated leather;            heading Nos 4104 to 4107
            metallized leather            provided its value does not
                                          exceed 50% of the ex-works
                                          price of the product
Chap. 42    Articles of leather; saddlery Manufacture in which all the
            and harness; travel goods,    materials used are
            handbags and similar          classified within a heading
            containers; articles of       other than that of the
            animal gut (other than silk   product
            worm gut)
ex          Furskins and artificial fur;  Manufacture in which all the
Chap. 43    manufactures thereof;         materials used are
            except for                    classified within a heading
            heading Nos ex 4302           other than that of the
            and 4303 for which the rules  product
            are set out below
ex 4302     Tanned or dressed furskins.
            assembled:
            - Plates, crosses and         Bleaching or dyeing, in
              similar forms               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 Manufacture from
            accessories and other         non-assembled tanned or
            articles of furskin           dressed furskins of
                                          heading No 4302
ex Chap. 44 Wood and articles of wood;    Manufacture in which all the
            wood charcoal, except for     materials used are
            heading Nos ex 4403,          classified within a heading
            ex 4407. 6x4408,4409.         other than that of the
            ex 44-.0 to ex 4413.          product
            ex 4415, ex 4416. 4418 and
            ex 4421 for which the rules
            are set out below:
ex 4403     Wood roughly squared          Manufacture from wood in
                                          the rough, whether or not
                                          stripped of its bark or
                                          merely roughed down
                                               132
 ---pagebreak---            Description of product        Working or processing earned out on non-origmating
                                         materials that confers originating status
                          (2)                              (3)            or        (4)
ex 4407     Wood sawn or chipped         Planing, sanding or
            lengthwise, sliced or -      finger-jointing
           peeled, of a thickness
           exceeding 6 mm, planed,
           sanded or finger-jointed
ex 4408    Veneer sheets and sheets      Splicing, planing, sanding or
           for plywood, of a thickness   finger-jointing
            not exceeding 6 mm,
            spliced, and other wood
           sawn lengthwise, sliced or
           peeled of a thickness not
           exceeding 6 mm, planed,
           sanded or finger-jointed
ex 4409    Wood (including strips and
           friezes for parquet flooring,
           not assembled)^
           continuously shaped
           (tongued. grooved, rebated,
           chamfered, V-joined.
           beaded, moulded, rounded
           or the like) along any of its
           edges or faces, whether or
           not planed, sanded or
           finger-jointed:
           - Sanded or finger-jointed    Sanding or finger-jointing
           - Beadings and mouldings      Beading or moulding-
           - Other                       Manufacture in which all the
                                         materials used are
                                         classified within a heading
                                         other than of the product
ex 4410 to Beadings and mouldings,       Beading or moulding
ex 4413    including moulded skirting
           and other moulded boards
ex 4415    Packing cases, boxes,         Manufacture from boards
           crates, drums and smilar      not cut to size
           packings, of wood
ex 4416    Casks, barrels, vats, tubs    Manufacture from riven
           and other coopers' products   staves, not further worked
           and parts thereof, of wood    than sawn on the two
                                         principal surfaces
                                             133
 ---pagebreak---  HS heading                               Working or processing earned out on non-onginatmg
No                                        materials that confers originating status
      (1)                                                   (3)            or       (4)
4418         Builders' joinery and
             carpentry of wood, including
             cellular wood panels,
             assembled parquet panels,
             shingles and shakes:
             - Builders' joinery and      Manufacture in which all the
               carpentry of wood          materials used are
                                          classified within a heading
                                          other than that of the
                                          product. However, cellular
                                          wood panels, shingles and
                                          shakes may be used
             -   Beadings and mouldings   Beading or moulding
             -   Other                    Manufacture in which all the
                                          materials used are
                                          classified within a heading
                                          other than that of the
                                          product
ex 4421     Match splints: wooden pegs    Manufacture from wood of
            or pins for footwear          any heading except drawn
                                          wood of heading No 4409
ex          Cork and articles of cork;    Manufacture in which all the
Chap. 45    except for heading No 4503    materials used are
            for which the rule is set out classified within a heading
            below:                        other than that of the
                                          product
4503        Articles of natural cork      Manufacture from cork of
                                          heading No 4501
Chap. 46    Manufactures of straw, of     Manufacture in which all the
            esparto or of other plaiting  materials used are
            materials; basketware and     classified within a heading
            wickerwork                    other than that of the
                                          product.
Chap. 47    Pulp of wood or of other      Manufacture in which all the
            fibrous cellulosic material;  materials used are
            waste and scrap of paper or   classified within a heading
            paperboard                    other than that of the
                                          product
Chap. 48    Paper and paperboard;         Manufacture in which all the
            articles of paper pulp, of    materials used are
            paper or of paperboard;       classified within a heading
            except for                    other than that of the
            heading Nos ex 4811, 4816,    product
            4817, ex 4818. ex 4819.
            ex 4820 and ex 4823 for
            which the rules are set out
            below.
                                              134
 ---pagebreak--- HS heading Description of product        Working or processing earned out on non-onginating
No                                       materials that confers originating status
      0)                  (2)                            (3)           or          (4)
ex 4811    Paper and paperboard,         Manufacture from
           ruled, lined or squared only paper-making materials of
                                        Chapter 47
4816       Carbon paper, self-copy      Manufacture from
           paper and other copying or   paper-making materials of
           transfer papers (other than  Chapter 47
           those of heading No 4809).
           duplicator stencils and
           offset plates, of paper,
           whether or not put up in
           boxes
4817       Envelopes, letter cards,     Manufacturing in which:
           plain postcards and          - all the materials used are
           correspondence cards, of        classified within a
           paper or paperboard;            heading other than that of
           boxes, pouches, wallets         the product, and
           and writing compendiums.     - the value of all the
           of paper or paperboard.         materials used does not
           containing an assortment of     exceed 50% of the
           paper stationery                ex-works price of the
                                           product
ex 4818    Toilet paper                 Manufacture from
                                        paper-making materials of
                                        Chapter 47
ex 4819    Cartons, boxes, cases,       Manufacture in which:
           bags and other packing       - all the materials used are
           containers, of paper,             classified within a
           paperboard. cellulose             heading other than that
           wadding or webs of           > of the product, and
           cellulose fibres             - the value of all the
                                             materials used does not
                                             exceed 50% of the
                                             ex-works price of the
                                             product
ex 4820    Letter pads                  Manufacture in which the
                                        value of all the materials
                                        used does not exceed 50%
                                        of the ex-works price of the
                                        product
ex 4823    Other paper, paperboard.     Manufacture from
           cellulose wadding and webs   paper-making materials of
           of cellulose fibres, cut to  Chapter 47
           size or shape
                                              135
 ---pagebreak---  HS heading  Description of product       Working o r processing carried out on non-ongmating
 No                                       materials that confers originating status
      (1)                   (2)                            (3)             or
 ex          Printed books, newspapers,   Manufacture in which all the
 Chap. 49    pictures and other products materials used are
             of the printing industry;   classified within a heading
             manuscripts, typescripts    other than that of the
            and plans; except for        product
             heading Nos 4909 and 4910
            for which the rules are set
             out below
 4909        Printed or illustrated      Manufacture from materials
             postcards; printed cards    not classified within
             bearing personal greetings, heading Nos 4909 or 4911
             messages or
             announcements, whether or
            not illustrated, with or
            without envelopes or
            trimmings
4910        Calendars of any kind,
            printed, including calendar
            blocks:
            - Calendars of the           Manufacture in which:
               "perpetual" type or with  - all the materials used are
               replaceable blocks            classified within a
               mounted on bases other        heading other than that
              than paper or paperboard       of the product, and
                                         - the value of all the
                                              materials used does not
                                              exceed 50% of the
                                             ex-works price of the
                                              product
            - Other                      Manufacture from materials
                                         not classified in
                                         heading Nos. 4909 or 4911
ex          Silk; except for heading Nos Manufacture in which all the
Chap. 50    ex 5003. 5004 to ex 5006     materials used are
            and 5007 for which the rules classified within a heading
            are set out below            other than that of the
                                         product
ex 5003     Silk waste (including        Carding or combing of silk
            cocoons unsuitable for       waste
            reeling, yarn waste and
            gametted stock), carded or
            combed
                                              136
 ---pagebreak---   HS heaomg          Description of product                Working or processing earned out on non-origmatmg
  No                                                       materials that confers originating status
         0)                           (2)                                       (3)                or             (4)
  5004 to            Silk yam and yam spun                 Manufacture from (1):
  ex 5006            from silk waste                       - raw silk or silk waste
                                                                carded or combed or
                                                                otherwise prepared for
                                                                spinning.
                                                           - other natural fibres not
                                                                carded or combed or
                                                                otherwise prepared for
                                                                spinning,
                                                           - chemical materials or
                                                                textile pulp, or
                                                           - paper-making materials
  5007               Woven fabrics of silk or of
                     silk waste:
                     -   incorporating rubber              Manufacture from single
                          thread                           yam (1)
                     - Other                               Manufacture from (1):
                                                           - coir yam.
                                                           - natural fibres.
                                                           - man-made staple fibres
                                                                not carded or combed or
                                                                otherwise prepared for
                                                                spinning.
                                                           - chemical materials or
                                                                textile pulp, or
                                                           - paper
                                                           or
                                                           Printing accompanied by at
                                                           least two preparatory or
                                                           finishing operations (such
                                                           as scouring, bleaching. ,
                                                           mercenzing. heat setting,
                                                           raising, calendering, shrink
                                                           resistance processing,
                                                           permanent finishing,
                                                           decatizing, impregnating,
                                                           mending and burling) where
                                                           the value of the unprinted
                                                           fabric used does not
                                                           exceed 47.5% of the
                                                           ex-works price of the
                                                           product
(1) For special conditions relating tc products made of a rhixture of textile materials, see Introductory Note 4.
                                                                 137
 ---pagebreak---   HS heading          Descnption of product                Working or processing earned out on non-origmatmg
  No                                                       materials that confers originating status
                                       (2)                                     (3)                or              (4)
  ex                  Wool, fine or coarse animal          Manufacture in which all the
  Chap. 51            hair; horsehair yam and              materials used are
                      woven fabric; except for             classified within a heading
                      heading Nos 5106 to 5110             other than that of the
                      and 5111 to 5113 for which           product
                      the rules are set out below:
  5106 to 5110        Yam of wool, of fine or              Manufacture from (1):
                      coarse animal hair or of             - raw silk or silk waste
                      horsehair                                carded or combed or
                                                               otherwise prepared for
                                                               spinning,
                                                           - natural fibres not carded
                                                               or combed or otherwise
                                                               prepared for spinning.
                                                           - chemical materials or
                                                               textile pulp, or
                                                           - paper-making materials
  5111 to5113         Woven fabrics of woo!, of
                      fine or coarse animal hair or
                      of horsehair:
                     -    Incorporating rubber             Manufacture from single
                          thread                           yarnp):
                     -    Other                            Manufacture from (1):
                                                           - coir yam,
                                                           - natural fibres.
                                                           - man-made staple fibres
                                                               not carded or combed or
                                                               otherwise prepared for
                                                               spinning.
                                                           - chemical materials or
                                                               textile pulp, or
                                                           - paper
                                                           or
                                                           Printing accompanied by at
                                                           least two preparatory or
                                                           finishing operations (such
                                                           as scouring, bleaching,
                                                           mercerizing, heat setting,
                                                           raising, calendering, shrink
                                                           resistance processing,
                                                           permanent finishing,
(1 ) For special conditions relating to products made of a mixture of textile materials, see Introductory Note 4.
                                                                138
 ---pagebreak---   HS heading            Descnption of product              Working or processing earned out on non-originating
  No                                                       materials that confers originating status
          (1)                          (2)                                    (3)                or              (4)
                                                           decatizing. impregnating,
                                                           mending and burling) where
                                                           the value of the unprinted
                                                           fabric used does not
                                                           exceed 47.5% of the
                                                           ex-works price of the
                                                           product
  ex                   Cotton; except for                  Manufacture in which all the
  Chap. 52             heading Nos 5204 to 5207            materials used are
                       and 5208 to 5212 for which          classified within a heading
                       the rules are set out below:        other than that of the
                                                           product
  5204 to 5207         Yam and thread of cotton            Manufacture from (1):
                                                           - raw silk or silk waste
                                                                carded or combed or
                                                                otherwise prepared for
                                                                spinning.
                                                           - natural fibres not carded
                                                                or combed or otherwise
                                                                prepared for spinning,
                                                           - chemical materials or
                                                                textile pulp, or
                                                           - paper-making materials
  5208 to 5212         Woven fabrics of cotton:
                       -  incorporating rubber             Manufacture from single
                          thread                           yarn-Ài)
                       -  Other                            Manufacture from (i):
                                                           - coir yarn.
                                                           - natural fibres.
                                                           - man-made staple fibres
                                                               not carded or combed or
                                                               otherwise prepared for
                                                               spinning.
                                                           - chemical materials or
                                                               textile pulp, or paper
                                                           or
                                                              Printing accompanied by at
                                                               least two preparatory or
                                                               finishing operations (such
                                                               as scouring, bleaching,
(1) For special conditions relating to products made of a mixture of textile materials, see Introductory Note 4.
                                                                 139
 ---pagebreak---                        Description ol product              Working or processing earned out on non-* •gma'.ing material
                                                           that confers onginating status
                                       (2)                                    (3)               Or             (4)
                                                           mercerizing, heat setting,
                                                           raising, calendenng. shnnk
                                                           resistance processing,
                                                           permanent finishing.
                                                           decatizing, impregnating,
                                                           mending and burling) where
                                                           the value of the unprinted
                                                           fabric used does not
                                                           exceed 47,5% of the
                                                           ex-works price of the product
  ex                   Other vegetable textile fibres;     Manufacture in which all the
  Chap. 53             paper yarn and woven fabncs         materials used are classified
                       of paper yam; except for            within a heading other than
                       heading Nos 5306 to 5308            that of the product
                       and 5309 to 5311 for which
                       the rules are set out below
  5306 to 5308         Yarn of other vegetable             Manufacture from (1):
                      textile fibres: paper yarn           - raw silk or silk waste
                                                               carded or combed or
                                                               otherwise prepared for
                                                               spinning,
                                                           - natural fibres not carded
                                                               or combed or otherwise
                                                               prepared for spinning,
                                                           - chemical materials or textile
                                                               pulp, or
                                                           - paper-making materials
  5309 to             Woven fabrics of other
  5311                vegetable textile fibres:
                      woven fabrics of paper yarn:
                       - incorporating rubber thread        Manufacture from single
                                                           yarn (1)
(1 ; For special conditions relating to products made of a mixture of textile materials, see Introductory Note 4.
                                                                 140
 ---pagebreak---  HS heading          Description of product                Working or processing earned out on non-onginatmg materials •a
 No                                                        that confers originating status
         (1)                           (2)                                     (3)              or            (4)
                     -Other                                Manufacture from (1):
                                                           - coir yam,
                                                           - natural fibres.
                                                           - man-made staple fibres
                                                                not carded or combed or
                                                                otherwise prepared for
                                                                spinning.
                                                           - chemical materials or
                                                                textile pulp, or
                                                           - paper
                                                           or
                                                           Printing accompanied by at
                                                           least two preparatory or
                                                           finishing operations (such as
                                                           scouring, bleaching,
                                                           mercerizing, heat setting,
                                                           raising calendering, shrink
                                                           resistance processing,
                                                           permanent finishing,
                                                           decatizing, impregnating,
                                                           mending and burling) where
                                                           the value of the unpnnted
                                                           fabric used does not
                                                           exceed 47.5% of the
                                                           ex-works price of the product
 5401 to 5406         Yam. monofilament and                 Manufacture from (1):
                     thread of man-made                     - raw silk or silk waste
                     filaments                                   carded or combed or
                                                                 otherwise prepared for
                                                                 spinning.
                                                            - natural fibres not carded
                                                                 or combed or otherwise
                                                                 prepared for spinning.
                                                            - chemical materials or
                                                                 textile pulp, or
                                                            - paper-making materials
 5407 to 5408         Woven fabrics of man-made
                      filament yam:
                      - incorporating rubber thread         Manufacture from single
                                                            yam (1)
(1 ) For special conditions relating to products made of a mixture of textile matenals, see Introductory Note 4
                                                                   141
 ---pagebreak---    HS heading          Descnption of product                Working or processing canied out on non-origmatmg materials
   No                                                       that confers onginating status
          (1)                          (2)                                     (3)              or              (4)
                       - Other                              Manufacture from (ij:
                                                           - coir yam.
                                                           - natural fibres.
                                                           - man-made staple fibres not
                                                              carded or combed or
                                                              otherwise prepared for
                                                              spinning.
                                                           - chemical materials or
                                                              textile pulp, or
                                                          - paper
                                                           or
                                                           Printing accompanied by at
                                                           least two preparatory or
                                                          finishing operations (such as
                                                          scouring, bleaching,
                                                           mercerizing, heat setting,
                                                           raising, calendering, shrink
                                                           resistance processing,
                                                          permanent finishing,
                                                          decatizing, impregnating,
                                                          mending and burling) where
                                                          the value of the unprinted
                                                          fabric used does not
                                                          exceed 47.5% of the
                                                          ex-works price of the product
  5501 to 5507        Man-made staple fibres              Manufacture from chemical
                                                          materials or textile pulp
  5508 to 5511        Yarn and sewing thread              Manufacture from (1):
                                                          - raw silk or silk waste
                                                                carded or combed or
                                                                otherwise prepared for
                                                                spinning.
                                                          - natural fibres not carded or
                                                                combed or otherwise
                                                                prepared for spinning.
                                                          - chemical materials or
                                                                textile pulp, or
                                                          - paper-making materials
(1) For speaal conditions relating to products made of a mixture of textile materials, see Introductory Note 4.
                                                                 142
 ---pagebreak---   HS heading          Description of product               Working or processing earned out on non-originating
  No                                                       materials that confers originating status
         (D                           <2)                                      (3)                or              (4)
  551210 5516        Woven fabrics of man-made
                     staple fibres:
                     -    incorporating rubber             Manufacture from single
                          thread                          yam (1)
                     -Other                                Manufacture from (1):
                                                          - coir yam,
                                                          - natural fibres,
                                                          - man-made staple fibres
                                                              not carded or combed or
                                                              otherwise prepared for
                                                              spinning,
                                                          - chemical materials or '
                                                              textile pulp, or
                                                          - paper
                                                          or
                                                          Printing accompanied by at
                                                          least two preparatory or
                                                          finishing operations (such
                                                          as scouring, bleaching,
                                                          mercerizing, heat setting,
                                                          raising, calendering, shrink
                                                          resistance processing,
                                                          permanent finishing,
                                                          decatizing, impregnating,
                                                          mending and burling) where
                                                          the value of the unprinted
                                                          fabric used does not
                                                          exceed 47.5% of the
                                                          ex-works price of the
                                                          product
  ex                 Wadding, felt and                    Manufacture from (i):
  Chap. 56           non-wovens; special yams;            - coir yam,
                     twine, cordage, ropes and            - natural fibres.
                     cables and articles thereof;         - chemical materials or
                     except for
                                                              textile pulp, or
                     heading Nos 5602. 5604.
                                                          - paper making materials
                     5605 and 5606, for which
                     the rules are set out below:
(1)  For special conditions relating to products made ol a mixture of textile materials, see Introductory Note 4.
                                                               143
 ---pagebreak---                         Description of product               Working or processing earned out on non-ongmating
                                                             materials that confers originating status
                                       J21                   (3)               or                (4)
   5602                 Felt, whether or not
                        impregnated, coated,
                        covered or laminated:
                        - Needleloom felt                    Manufacture from (1):
                                                             - natural fibres, k
                                                             - chemical materials or
                                                                 textile pulp
                                                             However:
                                                            - polypropylene filament of
                                                                 heading No 5402,
                                                            - polypropylene fibres of
                                                                 heading No 5503 or 5506
                                                                 or
                                                            - polypropylene filament
                                                                tow of heading No 5501.
                                                            of which the denomination
                                                            in all cases of a single
                                                            filament or fibre is less than
                                                            9 decitex may be used
                                                            provided their value does
                                                            not exceed 40% of the
                                                            ex-works price of the
                                                            product
                       - Other                              Manufacture from ('):
                                                            - natural fibres,
                                                            - man-made staple fibres
                                                                  made from casein, or
                                                            - chemical materials or
                                                                 textile pulp
  5604                 Rubber thread and cord,              Manufacture from rubber
                       textile covered, textile yarn,       thread or cord, not textile
                       and strip and the like of            covered
                       heading No 5404 of 5405,
                       impregnated, coated,
                       covered or sheathed with
                       rubber or plastics.
                       - Rubber thread and cord,            Manufacture from rubber
                          textile covered                   thread or cord, not textile
                                                            covered
(1 ) For special conditions relating to products made of a mixture of textile materials, see Introductory Note 4.
                                                                  144
 ---pagebreak---   HS heaoing         Descnption of product                 Working or processing earned out on non-originating
  No                                                       materials that confers originating status
         0)                           (2)                                    (3)               or              (4)
                     -Other                                Manufacture from (i):
                                                          - natural libres not carded
                                                               or combed or otherwise
                                                               processed for spinning,
                                                          - chemical materials or
                                                               textile pulp, or
                                                          - paper-making materials
  5605               Metallized yam, whether or           Manufacture from (1):
                     not gimped. being textile            - natural fibres,
                     yam, or strip or the like of         - man-made staple fibres
                     heading No 5404 or 5405,                  not carded or combed or
                     combined with metal in the                otherwise processed for
                     form of thread, strip or                  spinning,
                     powder or covered with               - chemical materials or
                     metal                                     textile pulp, or
                                                          - paper-making materials
  5606               Gimped yam, and strip and            Manufacture from (i):
                     the like of heading No 5404          - natural fibres,
                     or 5405. gimped. other than          - man-made staple fibres
                     those of heading No 5605                  not carded or combed or
                     and gimped horsehair yam;                 otherwise processed for
                     chenille yarn; loop wale-                 spinning.
                     yam                                  - chemical materials or
                                                               textile pulp, or
                                                          - paper-making materials
(1 ) For special conditions relating to products made of a mixture of textile materials, see Introductory Note 4.
                                                                145
 ---pagebreak---   HS heading        Descnption of product                Working or processing carried out on non-ongmating
  No                                                      materials that confers originating status
         CD                          (2)                                      (3)                or             (4)
  Chap. 57           Carpets and other textile
                    floor coverings:
                    *• Of needleloom felt                Manufacture from (1) :
                                                         - natural fibres, or
                                                         - chemical materials or
                                                               textile pulp
                                                         However:
                                                         - polypropylene filament of
                                                               heading No 5402,
                                                         - polypropylene fibres of
                                                               heading No 5503 or
                                                               5506 or
                                                         - polypropylene filament
                                                           tow of heading No 5501,
                                                           of which the denomination
                                                           in all cases of a single
                                                           filament or fibre is less than
                                                           9 decitex may be used
                                                           provided their value does
                                                           not exceed 40% of the
                                                           ex-works price of the
                                                           product
                    -    Of other felt                   Manufacture from : (1)
                                                         - natural fibres not carded
                                                               or combed or otherwise
                                                               processed for spinning,
                                                               or
                                                         - chemical materials or
                                                               textile pulp
                    -    Other textile coverings         Manufacture from: (i)
                                                         - coir yam,
                                                         - synthetic or artificial
                                                               filament yarn.
                                                         - natural fibres, or
                                                         - man-made staple fibres
                                                               not carded or combed or
                                                               otherwise processed for
                                                              .spinning
(1 ) For speaal conditions relating to products made of a mixture of textile materials, see Introductory Note 4
                                                                146
 ---pagebreak---   HS headng         Description of product                Working or processing earned out on non-originating
  No                                                      materials that confers originating status
        0)                            (2)                                      (3)              or              (4)
  ex                Special woven fabrics, tufted
  Chap. 58          textile fabrics: lace;
                    tapestries, trimmings:
                    embroidery; except for
                    heading Nos 5805 and 5610
                    for which the rules are set out
                    below:
                    - Combined with rubber                Manufacture from single
                        thread                            yam(i)
                    - Other                               Manufacture from (1):
                                                          - natural fibres,
                                                          ~ man-made staple fibres not
                                                             carded or combed or
                                                             otherwise processed for
                                                             spinning, or
                                                          - chemical materials or
                                                             textile pulp,
                                                          or
                                                          Printing accompanied by at
                                                          least two preparatory or
                                                          finishing operations (such as
                                                          scouring, bleaching,
                                                          mercerizing, heat setting,
                                                          raising, calendering, shrink
                                                          resistance processing,
                                                          permanent finishing,
                                                          decatizing, impregnating,
                                                          mending and burling) where
                                                          the value of the unprinted
                                                          fabric used does not
                                                          exceed 47,5% of the
                                                          ex-works price of the product
  5805               Hand-woven tapestries of the         Manufacture in which all the
                    types gobelins, flanders.             materials used are classified
                     aubusson. beauvais and the           within a heading other than
                     like, and needle-worked              that of the product
                    tapestries (for example, petit
                     point, cross stitch), whether
                     or not made up
(1 ) For special conditions relating to products made of a mixture of textile matenals. see Introductory Note 4
                                                                147
 ---pagebreak---    HS heading           Description of product             Working or processing earned but on non-onginating
   No                                                      materials that confers originating status
                                        (2)                                     (3)               or             (4)
  5810                  Embroidery in the piece, in        Manufacture in which:
                        strips or in motifs                - all the materials used are
                                                              classified within a heading
                                                              other than that of the
                                                              product, and
                                                           - the value of all the
                                                              materials used does not
                                                              exceed 50% of the
                                                              ex-works price of the
                                                              product
   5901                 Textile fabrics coated with        Manufacture from yam
                        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
  5902                 Tyre cord fabric of high
                       tenacity yam of nylon or other
                       polyamides, polyesters or
                       viscose rayon:
                       - containing not more than          Manufacture from yam
                          90 % by weight of textile
                          materials
                       - Other      .                      Manufacture from chemical
                                                           materials or textile pulp
  5903                 Textile fabrics impregnated.        Manufacture from yarn
                       coated, covered or
                       laminated with plastics.
                       other than those of
                       heading No 5902
  5904                 Linoleum, whether or not            Manufacture from yam (1)
                       cut to shape: floor coverings
                       consisting of a coating or
                       covering applied on a textile
                       backing, whether or not cut
                       to shape
(1) For special conditions relating to products made of a mixture of textile materials, see Introductory Note 4.
                                                                148
 ---pagebreak---   HS heading           Description of product              Working or processing carried out on non-originating
  No                                                       materials that confers originating status
          (1)                          (2)                                      (3)               or             (4)
  £905                 Textile wall coverings:
                       - Impregnated, coated.              Manufacture from yam:
                          covered or laminated
                          with rubber, plastics or
                          other materials
                       - Other                             Manufacture from (1):
                                                           - coir yam,
                                                           - natural fibres.
                                                           - man-made staple fibres
                                                               not carded or combed or
                                                               otherwise processed for
                                                               spinning, or
                                                           - chemical materials or
                                                               textile pulp,
                                                           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) where
                                                           the value of the unprinted
                                                           fabric used does not
                                                           exceed 47,5% of the
                                                           ex-works pnce of the
                                                           product
  5906                 Rubberized textile fabrics,
                       other than those of
                       heading No 5902:
                       -  Knitted or crocheted             Manufacture from (1):
                          fabrics                          - natural fibres.
                                                           - man-made staple fibres
                                                                not carded or combed or
                                                               otherwise processed for
                                                                spinning, or
                                                           - chemical materials or
                                                                textile pulp
                       -   Other fabrics made of           Manufacture from chemical
                          synthetic filament yam.          materials
                          containing more than
                          90% by weight of textile
                          materials
                       -   Other                            Manufacture from yam
(1) For special conditions retatrng to products made of a mixture of textile materials, see Introductory Note 4.
                                                                 149
 ---pagebreak---                        Description of product              Working or processing carried out on non-origmating
                                                           materials that confers originating status
                                       (2)                                      (3)               or             (4)
                       Textile fabrics otherwise           Manufacture from yam
                       impregnated, coated or
                       covered; painted canvas
                       being theatrical scenery,
                       studio backcioths or the like
  5908                 Textile wicks, woven,
                       plaited or knitted, for lamps,
                       stoves, lighters, candles or
                       the like; incandescent gas
                       mantles and tubular knitted
                       gas mantle labric therefor,
                       whether or not impregnated:
                       -   Incandescent gas                Manufacture from tubular
                           mantles, impregnated            knitted gas mantle fabric
                       -   Other                           Manufacture in which all the
                                                           materials used are
                                                           classified within a heading
                                                           other than that of the
                                                           product
  5909 to 5911         Textile articles of a kind
                       suitable for industrial use:
                       -   Polishing discs or rings        Manufacture from yam or
                           other than of felt of           waste fabrics or rags of
                           heading No 5911                 heading No 6310
                       -   Other                           Manufacture from (i):
                                                           -   coir yam,
                                                           -   natural fibres,
                                                           -   man-made staple fibres
                                                               not carded or combed or
                                                               otherwise processed for
                                                               spinning, or
                                                           -   chemical materials or
                                                               textile pulp
(1) For special conditions relating to products made of a mixture of textile materials, see Introductory Note 4.
                                                                150
 ---pagebreak---                        Description of product              Working or processing carried out on non-originating
  HS heading                                               materials that confers originating status
  No
                                       (2)                                      (3)               or           (4)
         (1)
  Chap 60              Knitted or crocheted fabrics        Manufacture from n):
                                                           - natural fibres.
                                                           - man-made staple
                                                               fibres not carded or
                                                               combed or otherwise
                                                               processed for
                                                               spinning, or
                                                           - chemical materials or
                                                               textile pulp
  Chap. 61             Articles of apparel and
                       clothing accessories, knitted
                       or crocheted:
                       -   Obtained by sewing              Manufacture from
                           together or otherwise           yarn{i)(2)
                           assembling, two or more
                           pieces of knitted or
                           crocheted fabric which
                           have been either cut to
                           form or obtained directly
                           to form
                       -   Other                           Manufacture from (1):
                                                           - natural fibres.
                                                           - man-made staple
                                                               fibres not carded or
                                                               combed or otherwise
                                                               processed for spinning,
                                                               or
                                                           - chemical materials or
                                                               textile pulp
  ex                   Articles of apparel and             Manufacture from
  Chap. 62             clothing accessories, not           yarnti)(2)
                       knitted or crocheted;
                       except for
                       heading Nos ex 6202.
                       ex 6204. ex 6206. ex 6209.
                       ex 6210,
                       6213. 6214, ex 6216 and
                       6217 for which the rules
                       are set out below:
  ex 6202.             Women's, girls' and babies'         Manufacture from yam (2)
  ex 6204,             clothing and clothing               or
  ex 6206,             accessories for babies,             Manufacture from
  and                  embroidered                         unembroidered fabric
  ex 6209                                                  provided the value of the
                                                           unembroidered fabric used
                                                            does not exceed 40% of
                                                            the ex-works price of the
                                                            product (2)
0)For special-conditions relating to products made of a mixture of textile materials, see Introductory Note 4.
(2) See Introductory Note 5.
                                                               151
 ---pagebreak--- I HS heading          Description of product               Working or processing carried out on non-onginating
   No                                                      materials that confers originating status
         O)                           (2)                                      (3)                or              (4)
  ex 62 «0 and        Fire-resistant equipment of          Manufacture from yam (2/
  ex 6216             fabric covered with foil of          or
                      alummized polyester                  Manufacture from uncoated
                                                           fabnc provided the value of
                                                           the uncoated fabric used
                                                           does not exceed 40% of the
                                                           ex-works price of the
                                                           product (2)
  6213                Handkerchiefs, shawls,
  and 6214            scarves, mufflers, mantillas,
                      veils and the like:
                     -    Embroidered                     Manufacture from
                                                          unbleached single
                                                          yam (1)(2)
                                                          or
                                                           Manufacture from
                                                          unembroidered fabric
                                                          provided the value of the
                                                          unembroidered fabric used
                                                          does not exceed 40% of the
                                                          ex-works price of the
                                                          product (2)                  »
                     -    Other                           Manufacture from
                                                          unbleached single yam (2)
  6217               Other-made up clothing
                     accessories: parts of
                     garments or of clothing
                     accessories, other than
                     those of heading No 6212:
                     -    Embroidered                     Manufacture from yam (1)
                                                          or
                                                          Manufacture from
                                                          unembroidered fabric
                                                          provided the value of the
                                                          unembroidered fabric used
                                                          does not exceed 40% of the
                                                          ex-works price of the
                                                          product (1)
(1 ) For special conditions relating to products made of a mixture of textile materials, see Introductory Note 4.
(2) See Introductory Note 5
                                                               152
 ---pagebreak---   HS heading        Description of product               Working or processing carried out on non-onginatmg
  No                                                     materials that confers originating status
        (1)                          (2)                                    (3)              or               (4)
                    -   Fire resistant equipment         Manufacture from yam p) or
                        of fabric covered with foil      Manufacture from uncoated
                        of aluminized polyester          fabric provided the value of
                                                         the uncoated fabric used
                                                         does not exceed 40% of the
                                                         ex-works price of the
                                                         product (1)
                    -   Interlinings for collars         Manufacture in which:
                        and cuffs, cut out               - all the materials used are
                                                            classified within a
                                                            heading other than that of
                                                            the product, and
                                                         - the value of all the
                                                            materials used does not
                                                            exceed 40% of the
                                                            ex-works price of the
                                                            product
                    - Other                              Manufacture from yam (1)
  ex                Other made-up textile                Manufacture in which all the
                    articles; sets; worn clothing        materials used are
  Chap. 63
                    and worn textile articles;           classified within a heading
                    rags; except for                     other than that of the
                    heading Nos 6301 to"6304.            product
                    6305, 6306. ex 6307
                    and 6308 for which the rules
                    are set out below:
  6301 to 6304      Blankets, travelling rugs,
                    bed linen etc.: curtains etc.;
                    other furnishing articles:
                    - Of felt, of non-wovens             Manufacture from: (2)
                                                         - natural fibres, or
                                                         - chemical materials or
                                                            textile pulp
(1 )   For special conditions relating to products made of a mixture of textile matenals. see Introductory Note4.
(2)    See Introductory Note 5.
                                                               153
 ---pagebreak---   HS he». Ding          Description of product                 Working or processing carried out on non-ongmating
  No                                                            materials that confers originating status
          (1).                          (2)                                        (3)             or           (4)
                          Other
                         - Embroidered                          Manufacture from
                                                               unbleached single
                                                               yarnWtf)
                                                               or
                                                               Manufacture from
                                                               unembroidered fabric (other
                                                               than knitted or crocheted)
                                                               provided the value of the
                                                               unembroidered fabric used
                                                               does not exceed 40% of the
                                                               ex-works price of the
                                                               product
                       — Other                                 Manufacture from
                                                               unbleached single
                                                               yarn (1) (2)
  6305                 Sacks and bags, of a kind               Manufacture from :
                       used for the packing of                 - natural fibres.
                       goods                                   - man-made staple fibres
                                                                  not carded or combed or
                                                                  otherwise processed for
                                                                  spinning, or
                                                               - chemical materials or
                                                                  textile pulp
  6306                 Tarpaulins, awnings and
                       sunblinds; tents: sails for
                       boats, sailboards or
                       landcraft; camping goods:
                       - Of non-wovens                         Manufacture from (i):
                                                               - natural fibres, or
                                                               - chemical materials or
                                                                  textile pulp
                       - Other                                 Manufacture from
                                                               unbleached single yarn (i)
  6307                 Other made-up articles,                 Manufacture in which the
                       including dress patterns                value of all the materials
                                                               used does not exceed 40%
                                                               of the ex-works price of the
                                                               product
(1) For speaal conditions relating to products made of a mixture of textile materials, see Introductory Note 4.
&i For knitted or crocheted articles, not elastic or rubberized, obtained by sewing or assembly of pieces
    of knitted or crocheted fabric (cut out or knitted directly to shape), see Introductory Note 5
                                                                    154
 ---pagebreak---  HS heading        Description of product         Working or processing carried out on non-originating
 No                                               materials thai confers originating status
                                   (2)                                (3)          or         (4)
 6308              Set! consisting of woven       Each item in the set must
                   fabrc and yam. whether or      satisfy the rule which would
                   not with accessories, for      apply to it if it were not
                   mating up into rugs,           included in the set.
                   tapestries, embroidered        However, non-originating
                   tabe cloths or serviettes or   articles may be incorporated
                   simlar textile articles, put   provided their total value
                    up n packings for retail sale does not exceed 15% of the
                                                  ex-works price of the set
  6401 to 6405      Forrtwear                     Manufacture from materials
                                                  of any heading except for
                                                  assemblies of uppers
                                                  affixed to inner soles or to
                                                  other sole components of
                                                  heading No 6406
 6406              Parts of footwear;             Manufacture in which all the
                   removable in-soles, heel       materials used are
                   cushions and similar           classified within a heading
                   artirles; gaiters, leggings    other than that of the
                   and similar articles, and      product
                   parts thereof
 ex                Headgear and parts thereof,    Manufacture in which all the
 Chap. 65          except for                     materials used are
                   heading Nos 6503 and 6505      classified within a heading
                   for Jtrhich the rules are set  other than that of the
                   out below:                     product
 6503              Fefthats and other felt        Manufacture from yam or
                   headgear, made from the        textile fibres (1)
                   hat rodies, hoods or
                   plateaux of
                   heading No 6501. whether
                   or rot lined or trimmed
 6505              Hats and other headgear,       Manufacture from yarn or
                   knitred or crocheted, or       textile fibres (1)
                   made up from lace, felt or
                   other textile fabric, in the
                   pie^e (but not in strips),
                   whether or not lined or
                   trinrmed; hair-nets of any
                   material, whether or not
                    lined or trimmed
(1 )   See Introductory ^ote 5.
                                                        155
 ---pagebreak--- HS heading Description of product          Workir g or processing carried out on non-originating
No                                         materials that confers originating status
      0)                  (2)                                (3)            or          (4)
ex         Umbrellas, sun umbrellas,       Manufacture in which all the
Chap. 66   walking-sticks, seat-sticks,    materials used are
           whips, riding-crops and         classified within a heading
           parts thereof; except for       other than that of the
           heading No 6601 for which       product
           the rule is set out below:
6601       Umbrellas and sun               Manufacture in which the
           umbrellas (including            value of all the materials
           walking-stick umbrellas,        used does not exceed 50% '
           garden umbrellas and            of the ex-works price of the
           similar umbrellas)              product
Chap. 67   Prepared feathers and           Manufacture in which all the
           down and articles made of       materials used are
           feathers or of down; artificial classified within a heading
           flowers: articles of human      other than that of the
           hair                            product
ex         Articles of stone, plaster,     Manufacture in which all the
Chap. 58   cement, asbestos, mica or       materials used are
           similar materials; except for   classified within a heading
           heading Nos ex 6803,            other than that of the
           ex 6812 and ex 6814 for         product
           which the rules are set out
           below:
ex 6803    Articles of slate or of         Manufacture from worked
           agglomerated slate              slate
ex 6812    Articles of asbestos; articles  Manufacture from materials
           of mixtures with a basis of     of any heading
           asbestos or of mixtures with
           a basis of asbestos and
           magnesium carbonate
ex 6814    Articles of mica, including     Manufacture from worked
           agglomerated or                 mica (including
           reconstituted mica, on a        agglomerated or
           support of paper,               reconstituted mica)
           paperboard or other
           materials
Chap. 69   Ceramic products                Manufacture in which all the
                                           materials used are
                                           classified within a heading
                                           other than that of the
                                           product
                                                156
 ---pagebreak--- HS heading  Description of product       Working or processing carried out on non-originating
No                                       materials that confers originating status
     0)                   (2)                             (3)            or         (4)
ex          Glass and glassware;         Manufacture in which all the
Chap. 70    except for                   materials used are
            heading Nos 7006. 7007,      classified within a heading
           7008, 7009. 7010. 7013 and    other than that of the
            ex 7019 for which the rules  product
            are set out below:
7006        Glass of heading Nos 7003,   Manufacture from materials
            7004 or 7005, bent,          of heading No 7001
            edge worked, engraved,
           drilled, enamelled or
            otherwise worked, but not
           framed or fitted with other
            materials
7007        Safety glass, consisting of  Manufacture from materials
           toughened (tempered) or       of heading No 7001
           laminated glass
7008       Multiple-walled insulating    Manufacture from materials
           units of glass                of heading No 7001 -
7009       Glass mirrors, whether or     Manufacture from materials
           not framed, including rear-   of heading No 7001
           view mirrors
7010       Carboys, bottles, flasks,     Manufacture in which all the
           jars. pots, phials, ampoules  materials used are
           and other containers, of      classified within a heading
           glass, of a kind used for the other than that of the
           conveyance or packing of      product
           goods; preserving jars of
           glass; stoppers, lids and     or
           other closures, of glass
                                         Cutting of glassware,
                                         provided the value of the
                                         uncut glassware does not
                                         exceed 50% of the ex-works
                                         price of the product
                                              157
 ---pagebreak---              Description of product        Working or processing carried out on non-ongmating
                                           materials that confers originating status
                            (2)                               (3)           or         (4)
             Glassware of a kind used      Manufacture in which all the
             for table, kitchen, toilet,   materials used are
             office, indoor decoration or  classified within a heading
             similar purposes (other than  other than that of the
             that of heading No 7010 or    product
             7018)
                                           or
                                           Cutting of glassware,
                                           provided the value of the^
                                           uncut glassware does not
                                          exceed 50% of the ex-works
                                          price of the product
                                          or
                                          Hand-decoration (with the
                                          exception of silk-screen
                                          printing) of hand-blown
                                          glassware, provided the
                                          value of the hand-blown
                                          glassware does not
                                          exceed 50% of the ex-works
                                          price of the product
ex 7019     Articles (other than yam) of  Manufacture from:
            glass fibres                  — uncoloured slivers,
                                              rovings, yarn or chopped
                                             strands, or
                                          - glass wool
ex          Natural or cultured pearls,   Manufacture in which all the
Chap. 71    precious or semi-precious     materials used are
            stones, precious metals,      classified within a heading
            metals clad with precious     other than that of the
            metal, and articles thereof:  product
            imitation jewellery; coin;
            except for heading Nos
            ex 7102. ex 7103. ex 7104.
            7106. ex 7107, 7108.
            ex 7109. 7110. ex 7111.
            7116 and 7117 for which
            the rules are set out below:
ex 7102     Worked precious or            Manufacture from unworked
ex 7103 and semi-precious stones          precious or semi-precious
ex 7104     (natural, synthetic or        stones
            reconstructed)
7106.       Precious metals:
7108
and 7110
                                                158
 ---pagebreak--- HS heading  Description of product       Working or processing carried out on non-onginating
No                                       materials that confers originating status
      0)                  (2)                              (3)            or        (4)
            - Unwrought                  Manufacture from matenals
                                         not classified within
                                         heading No 7106. 7108 or
                                         7110
                                         or
                                         Electrolytic, thermal or
                                         chemical separation of
                                         precious metals of
                                         heading No 7106, 7108 or
                                         7110
                                         or
                                         Alloying of precious metals
                                         of heading No 7106. 7108
                                         or 7110 with each other or
                                         with base metals
            - Semi-manufactured or in    Manufacture from
               powder form               unwrought precious metals
ex 7107.    Metals clad with precious    Manufacture from metals
ex 7109 and metals, semi manufactured    clad with precious metals,
ex 7111                                  unwrought
7116        Articles of natural or       Manufacture in which the
            cultured pearls, precious or value of all the materials
            semi-precious stones         used does not exceed 50%
            (natural, synthetic or       of the ex-works price of the
            reconstructed)               product
7117        Imitation jewellery          Manufacture in which all the
                                         materials used are
                                         classified within a heading
                                         other than that of the
                                         product
                                         or
                                         Manufacturé from base
                                         metal parts, not plated or
                                         covered with precious
                                         metals, provided the value
                                         of all the materials used
                                         does not exceed 50% of the
                                         ex-works price of the
                                         product
ex Chap. 72 Iron and steel; except for   Manufacture in which all the
            heading Nos 7207, 7208 to    materials used are
            7216.7217, ex 7218, 7219     classified within a heading
            to 7222, 7223. ex 7224,      other than that of the
            7225 to 7227. 7228           product
            and 7229 for which the rules
            are set out below:
7207        Semi-finished products of    Manufacture from materials
            iron or non-atloy steel      of heading No 7201, 7202,
                                         7203, 7204 or 7205
                                              159
 ---pagebreak---  HS heading  Description of product           Working or p-ocessing earned out on non-ongmating
 No                                          materials that confers originating status
      (1)                   (2)                                (3)            or        (4)
7208 to 7216 Flat rolled products, bars       Manufacture from ingots or
             and rods, angles, shapes        other primary forms of
             and sections of iron or non-    heading No 7206
             alloy steel
7217         Wire of iron or non-alloy       Manufacture from
             steel                           semi-finishe d materials of
                                             heading No 7207
ex 7218.     Semi-finished products, flat    Manufacture from ingots or
7219 to 7222 rolled products, bars and       other primary forms of
             rods, angles, shapes and        heading No 7218
             sections of stainless steel
7223         Wire of stainless steel         Manufacture from semi-
                                             finished materials of
                                             heading No 7218
ex 7224.     Semi-finished products, flat    Manufacture from ingots or
7225 to 7227 rolled products, in irregularly other pnmary forms of
             wound coils, of other alloy     heading No 7224.
             steel
7228         Bars and rods of other alloy    Manufacture from ingots or
             steel; angles, shapes and       other primary forms of
             sections, of other alloy        heading No 7206. 7218 or
             steel; hollow drill bars and    7224
             rods, of alloy or non-alloy
             steel
7229         Wire of other alloy steel       Manufacture from
                                             semi-finished materials of
                                             heading No 7224
ex Chap. 73  Articles of iron or steel:      Manufacture in which all the
             except for heading Nos ex       materials used are
             7301,7302,7304.7305.            classified within a heading
             7306, ex 7307. 7308 and ex      other than that of the
             7315 for which the rules are    product
             set out below:
ex 7301      Sheet piling                    Manufacture from materials
                                             of heading No 7206
                                                  160
 ---pagebreak--- HS heading  Description of product          Working or processing caned out on non-originating
No                                          materials that confers originating status
      0)                    (2)                                (3)           or       (4)
7302        Railway or tramway track        Manufacture f r o r materials
            construction materials of       of heading No 7206
            iron or steel, the following:
            rails, checkrails and
            rackrails, switch blades,
            crossing frogs, point rods
            and other crossing pieces,
            sleepers (cross-ties),
            fishplates, chairs, chair
            wedges, sole plates (base
            plates), rail clips, bedplates.
            ties and other material
            specialized for jointing or
           fixing rails
7304,      Tubes, pipes and hollow          Manufacture from materials
7305        profiles, of iron (other than   of heading No 7206. 7207.
and 7306   cast iron) or steel              7218 or 7224
ex 7307    Tube or pipe fittings of         Turning, drilling, reaming,
           stainless steel                  threading, debumng and
           (ISONoX5CrNiMo1712).             sandblasting of forged
           consisting of several parts      blanks the value of which
                                            does not exceec 35% of the
                                            ex-works price of the
                                            product
7308       Structures (excluding            Manufacture in which all the
           prefabricated buildings of       materials used are
           heading No 9406) and parts       classified within a heading
           of structures (for example,      other than that of the
           bridges and bridge-sections,     product. However, welded
           lock-gates, towers, lattice      angles, shapes and
           masts, roofs, roofing            sections of heading No
           frameworks, doors and            7301 may not be used
           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
ex 7315    Skid chains                      Manufacture in which the
                                            value of all the materials of
                                            heading No 7315 used does
                                            not exceed 50% of the
                                            ex-works price of the
                                            product
                                                161
 ---pagebreak---          Description of product       Working or processing carried out on non-originating
                                      materials that confers originating status
                      (2)                               (3)            or         (4)
ex       Copper and articles thereof, Manufacture in which:
Chap. 74 except for                   - all the ma'.eriais used
         heading Nos 7401, 7402,          are classified within a
         7403, 7404 and 7405 for          heading other than that
         which the rules are set out      of the product, and
         below:                       - the value of all the
                                          materials used does not
                                          exceed 50% of the
                                          ex-works price of the •
                                          product
7401     Copper mattes; cement        Manufacture in which all the
         copper (precipitated copper) materials used are
                                      classified within a heading
                                      other than that of the
                                      product
7402     Unrefined copper; copper     Manufacture in which all the
         anodes for electrolytic      materials used are
         refining                     classified within a heading
                                      other than that of the
                                      product
7403     Refined copper and copper
         alloys, unwrought:
         - Refined copper             Manufacture in which all the
                                      matenals used are
                                      classified within a heading
                                      other than that of the
                                      product
         - Copper alloys and refined  Manufacture from refined
            copper containing other   copper, unwrought, or
            elements                  waste and scrap
7404     Copper waste and scrap       Manufacture in which all the
                                      materials used are
                                      classified within a heading
                                      other than that of the
                                      product
7405     Master alloys of copper      Manufacture in which all the
                                      materials used are
                                      classified within a heading
                                      other than that of the
                                      product
ex       Nickel and articles thereof;  Manufacture in which:
Chap. 75 except for                   - all the materials used
         heading Nos 7501 to 7503          are classified within a
         for which the rules are set       heading other than that
         out below:                        of the product, and
                                       - the value of all the
                                           materials used does not
                                           exceed 50% of the
                                           ex-works price of the
                                           product
                                           162
 ---pagebreak--- HS heading    Description of product       Working or processing earned out on non-origmating
No                                         materials that confers originating status
      0)                   (2)                                 (3)          or        (4)
7501 to 7503  Nickel mattes, nickel oxide  Manufacture in which all the
             sinters and other             materials used are
              intermediate products of     classified within a heading
              nickel metallurgy;           other than that of the
              unwrought nickel; nickel     product
             waste and scrap
ex            Aluminium and articles       Manufacture in which:
Chap. 76     thereof; except for           - all the materials used
             heading Nos 7601,7602              are classified within a
             and ex 7616 for which the         heading other than that
             rules are set out below:          of the product, and
                                           - the value of all the
                                               materials used does not
                                               exceed 50% of the
                                               ex-works price of the
                                               product
7601         Unwrought aluminium           Manufacture by thermal or
                                           electrolytic treatment from
                                           unalloyed alurniniunrbr
                                           waste and scrap of
                                           aluminium
7602         Aluminium waste or scrap      Manufacture in which all the
                                           materials used are
                                           classified within a heading
                                           other than that of the
                                           product
ex 7616      Aluminium articles other      Manufacture in which:
             than gauze, cloth, grill,     - all the materials used
             netting, fencing, reinforcing      are classified within a
             fabric and similar materials       heading other than that
             (including endless bands) of       of the product.
             aluminium wire, and                However, gauze, cloth,
             expanded metal of                  grill, netting, fencing,
             aluminium                          reinforcing fabric and
                                                similar matenals
                                                (including endless
                                                bands) of aluminium
                                                wire, or expanded metal
                                                of aluminium may be
                                                used, and
                                           - the value of all the
                                               materials used does not
                                             . exceed 50% of the
                                                ex-works price of the
                                                product
                                                163
 ---pagebreak--- HS heading Description of product      Working or processing earned out on non-originating
No                                     materials that confers originating status
     0)                  (2)                              (3)           or        (4)
ex         Lead and articles thereof;  Manufacture in which:
Chap. 78   except for                  - all the materials used
           heading Nos 7801 and 7602        are classified within a
           the rules for which are set      heading other than that
           out below:                       of the product, and
                                       - the value of all the
                                            materials used does not
                                            exceed 50% of the
                                            ex-works price of the
                                            product
7801       Unwrought lead:
           - Refined lead              Manufacture from "bullion"
                                       or "work" lead
           - Other                     Manufacture in which all the
                                       materials used are
                                       classified within a heading
                                       other than that of the
                                       product. However, waste
                                       and scrap of
                                       heading No 7802 may not
                                       be used
7802       Lead waste and scrap        Manufacture in which all the
                                       materials used are
                                       classified within a heading
                                       other than that of the
                                       product
ex         Zinc and articles thereof;  Manufacture in which:
Chap. 79   except for                  - all the materials used
           heading Nos 7901 and 7902        are classified within a
           the rules for which are set      heading other than that
           out below:                       of the product, and
                                       - the value of all the
                                            materials used does not
                                            exceed 50% of the
                                            ex-works price of the
                                            product
7901       Unwrought zinc               Manufacture in which all the
                                        materials used are
                                        classified within a heading
                                        other than that of the
                                        product. However, waste
                                        and scrap of
                                        heading No 7902 may not
                                        be used
7902       Zinc waste and scrap         Manufacture in which all the
                                        materials used are
                                        classified within a heading
                                        other than that of the
                                        product
                                            164
 ---pagebreak---          Description of product        Working or processing ca-ned out on non-originating
                                       materials that confers originating status
                         (2)                             (3)            or        (4)
ex       Tin and articles thereof,     Manufacture in which:
Chap. 80 except for                    - all the materials used
         heading Nos 8001, 8002             are classified within a
         and 8007 the rules for which       heading other than that
         are set below:                     of the product, and
                                       - the value of all the
                                            materials used does not
                                            exceed 50% of the
                                            ex-works price of the
                                            product
8001     Unwrought tin                 Manufacture in which all the
                                       materials used are
                                       classified within a heading
                                       other than that of the
                                       product. However, waste
                                       and scrap of
                                       heading No 8002 may not
                                       be used
8002     Tin waste and scrap; other    Manufacture in which all the
and 8007 articles of tin               materials used are
                                       classified within a heading
                                       other thari that of the
                                       product
Chap. 81 Other base metals; cermets:
         articles thereof:
         - Other base metals,          Manufacture in which the
            wrought; articles thereof  value of all the materials
                                       classified within the same
                                       heading as the product
                                       used does not exceed 50%
                                       of the ex-works price of the
                                       product
         - Other                       Manufacture in which all the
                                       materials used are
                                       classified within a heading
                                       other than that of the
                                        product
ex       Tools, implements, cutlery,    Manufacture in which all the
Chap. 82 spoons and forks, of base      materials used are
          metal; parts thereof of base  classified within a heading
         metal; except for              other than that of the
         heading Nos 8206, 8207,        product
          8208. ex 8211. 8214
          and 8215 for which the rules
          are set out below:
                                            165
 ---pagebreak---           Description of product         Working or processing earned out on non-onginatmg
                                         materials that confers originating status
                        (2)                                (3)            or       (4)
 8206    Tools of two or more of the     Manufacture in which all the
         heading Nos 8202 to 8205.      matenals used are
         put up in sets for retail sale classified within a heading
                                        other than
                                        heading Nos 8202 to 8205.
                                        However, tools of
                                        heading Nos 8202 to 8205
                                        may be incorporated into
                                        the set provided their value
                                        does not exceed 15% of the
                                        ex-works price of the set
8207     Interchangeable tools for      Manufacture 'm which:
         hand tools, whether or not     - all the materials used are
         power-operated, or for            classified within a
         machine-tools (for example,       heading other than that of
         for pressing, stamping,           the product, and
         punching, tapping,             - the value of all the
        threading, drilling, boring,       materials used does not
        broaching, milling, turning,       exceed 40% of the
        or sçrewdriving), including        ex-works price of the
        dies for drawing or                product
        extruding metal, and rock
        drilling or earth boring tools
8208    Knives and cutting blades.      Manufacture in which:
        for machines or for             - all the materials used
        mechanical appliances                are classified within a
                                             heading other than that
                                             of the product, and
                                        - the value of ?. I the
                                             materials used does not
                                             exceed 40% of the
                                             ex-works price of the
                                             product
ex 8211 Knives with cutting blades,     Manufacture in which all the
        serrated or not (including      materials used are
        pruning knives), other than     classified within a heading
        knives of heading No 8208       other than that of the
                                        product. However, knife
                                        blades and handles of base
                                        metal may be used
8214    Other articles of cutlery (for  Manufacture in which all the
        example, hair clippers,         materials used are
        butchers' or kitchen            classified within a heading
        cleavers, choppers and          other than that of the
        mincing knives, paper           product. However, handles
        knives); manicure or            of base metal may be used
        pedicure sets and
        instruments (including nail
        files)
                                             166
 ---pagebreak---  HS heading          Description of product          Working or processing earned out on non-originating
 No                                                  materials that confers onginating status
       (D                             (2)                              (3)           or              (4)
 8215                Spoons, forks, ladles,          Manufacture in which all the
                     skimmers, cake-servers,         materials used are
                     fish-knives, butter-knives,     classified within a heading
                     sugar tongs and similar         other than that of the
                     kitchen or tableware            product. However, handles
                                                     of base metal may bB used
 ex                  Miscellaneous articles of       Manufacture in which all the
 Chap. 83            base metal; except for          materials used are
                     heading No ex 8306 for          classified within a heading
                     which the rule is set out       other than that of the
                     below:                          product
 ex 8306             Statuettes and other            Manufacture in which all the
                     ornaments, of base metal        materials used are
                                                     classified within a heading
                                                     other than that of the
                                                     product. However, the
                                                     other materials of
                                                     heading No 8306 may be
                                                     used provided their value
                                                     does not exceed 30% of the
                                                     ex-works price of.the
                                                     product
 ex                  Nuclear reactors, boilers, .    Manufacture in which:           Manufacture in which the
 Chap. 84            machinery and mechanical        - all the materials used        value of all the materials
                     appliances; parts thereof;           are classified within a    used does not exceed 30%
                     except for                           heading other than that    of the ex-works price of the
                     heading Nos ex 8401. 8402.           of the product, and         product
                     8403. ex 8404, 8406 to          - the value of al! the
                     8409,8411,8412, ex 8413.             materials used does not
                     ex 8414. 8415. 8418.                 exceed 40% of the
                     ex 8419. 8420. 8423. 8425            ex-works price of the
                     to 8430. ex 8431, 8439,              product
                     8441, 8444 to 8447.
                     ex 8448. 8452. 8456 to
                     8466. 8469 to 8472. 8480.
                     8482. 8484 and 8485 for
                     which the rules are set out
                      below:
  ex 8401             Nuclear fuel elements f )       Manufacture in which all the    Manufacture in which the
                                                      materials used are              value of all the materials
                                                      classified within a heading     used does not exceed 30%
                                                      other than that of the          of the ex-works price of the
                                                      product O                       product
(1)    This rule shall apply until 31 December 1998.
                                                          167
 ---pagebreak--- HS heading  Description of product       Working or processing earned out on non-origmating
No                                       materials that confers originating status
     0)                   (2)                               (3)           or              (4)
8402        Steam or other vapour        Manufacture in which:            Manufacture in which the
           generating boilers (other     - all the materials used are     value of all the materials
           than centrai heating hot         classified within a           used does not exceed 25"%
           water boilers capable also       heading other than that of    of the ex-works price oi the
           of producing low pressure        the product, and              product
           steam): super heated water    - the value of all the
            boilers                         materials used does not
                                            exceed 40% of the
                                            ex-works price of the
                                            product
8403 and   Central heating boilers other Manufacture in which all the     Manufacture in which the
ex 8404    than those of                 materials used are               value of all the materials
           heading No 6402 and           classified within a heading      used does not exceed 40%
           auxiliary plant for central   other than heading No 8403       of the ex-works price of the
           heating boilers               or 8404                          product
8406       Steam turbines and other      Manufacture in which the
           vapour turbines               value of all the materials
                                         used does not exceed 40%
                                         of the ex-works price of the
                                         product
8407       Spark-ignition reciprocating  Manufacture in which the
           or rotary internal            value of all the materials
           combustion piston engines     used does not exceed 40%
                                         of the ex-works price of the
                                         product
8408       Compression-ignition          Manufacture in which the
           internal combustion piston    value of all the materials
           engines (diesel or            used does not exceed 40%
           semi-diesel engines)          of the ex-works price of the
                                         product
8409       Parts suitable for use solely Manufacture in which the
           or principally with the       value of all the materials
           engines of heading No 8407    used does not exceed 40%
           or 8408                       of the ex-works price of the
                                         product
8411       Turbo-jets, turbo propellers  Manufacture in which:            Manufacture in which the
           and other gas turbines        - all the materials used         value of all the materials
                                              are classified within a     used does not exceed 25%
                                              heading other than that     of the ex-works price of the
                                              of the product, and         product
                                         -   the value of all the
                                              materials used does not
                                              exceed 40% of the
                                              ex-works price of the
                                              product
                                              168
 ---pagebreak--- HS heading  Descnption of product        Working or processing earned out on non-origmating
No                                       materials that confers originating status
      (1)                 (2)                              (3)            or              (4)
8412        Other engines and motors     Manufacture in which the
                                         value of all the materials
                                         used does not exceed 40%
                                         of the ex-works price of the
                                         product
ex 8413     Rotary positive              Manufacture in which:            Manufacture in which the
            displacement pumps           - all the materials used         value of all the materials
                                              are classified within a .   used does not exceed 25%
                                              heading other man that      of the ex-works price of the
                                              of the product, and         product
                                         - the value of all the
                                              materials used does not
                                              exceed 40% of the
                                              ex-works price of the
                                              product
ex 8414     Industrial fans, blowers and Manufacture in which:            Manufacture in which the .
           the like                      - all the materials used         value of all the materials
                                              are classified within a     used does not exceed 25%
                                              heading other than that     of the ex-works price of the
                                              of the product, and         product-
                                         - the value of all the
                                              materials used does not
                                              exceed 40% of the
                                              ex-works price of the
                                              product
8415       Air conditioning machines,    Manufacture in which the
           comprising a motor-driven     value of all the materials
           fan and elements for          used does not exceed 40%
           changing the temperature      of the ex-works price of the
           and humidity, including       product.
           those machines in which the
           humidity cannot be
           separately regulated
8418       Refrigerators, freezers and   Manufacture in which:            Manufacture in which the
           other refrigerating or        - all the materials used         value of all the materials
           freezing equipment, electric       are classified within a     used does not exceed 25 e o
           or other; heat pumps other         heading other than that     of the ex-works price of the
           than air conditioning              of the product, and         product
           machines of heading No        - the value of all the
           8415                               materials used does not
                                              exceed 40% of the
                                              ex-works price of the
                                              product, and
                                         - where the value of all
                                              the non-originating
                                              materials used does not
                                              exceed the value of the
                                              originating materials
                                              used
                                              169
 ---pagebreak--- HS heading   Description of product          Working or processing earned out on non-originating
No                                           materials that confers originating status
     0)                     (2)                                (3)            or             (4)
ex 8419      Machines for the wood,          Manufacture:                     Manufacture in which the
             paper pulp and paperboard       - in which the value of all      value of all the materials
             industries                           the materials used does     used does not exceed 30%
                                                  not exceed 40% of the       of the ex-works price of the
                                                  ex-works price of the       product
                                                  product, and
                                             - where, within the above
                                                  limit, the materials
                                                  classified within the
                                                  same heading as the
                                                  product are only used
                                                  up to a value of 25% of
                                                  the ex-works price of
                                                  the product
8420         Calendering or other rolling    Manufacture:                     Manufacture in which the
             machines, other than for        - in which the value of all      value of all the materials
             metals or glass, and                 the materials used does     used does not exceed 30%
             cylinders therefor                   not exceed 40% of the       of the ex-works price of the
                                                  ex-works price of the       product
                                                  product, and
                                             - where, within the above
                                                  limit, the materials
                                                  classified within the
                                                  same heading as the
                                                  product are only used
                                                  up to a value of 25% of
                                                  the ex-works price of
                                                  the product
8423         Weighing machinery              Manufacture in which:            Manufacture in which the
             (excluding balances of a        - all the materials used         value of all the materials
             sensitivity of 5 eg or better),      are classified within a     used does not exceed 25%
             including weight operated            heading other than that     of the ex-works price of the
             counting or checking                 of the product, and         product
             machines; weighing              - the value of all the
             machine weights of all kinds         materials used does not
                                                  exceed 40% of the
                                                  ex-works price of the
                                                  product
8425 to 8428 Lifting, handling, loading or    Manufacture:                     Manufacture in which the
             unloading machinery             - in which the value of all      value of all the materials
                                               the materials used does         used does not exceed 30%
                                               not exceed 40% of the           of the ex-works price of the
                                               ex-works price of the           product
                                               product, and
                                             - where, within the above
                                               limit, the materials
                                               classified within,
                                               heading No 8431 are only
                                                used up to a value of 10%
                                                of the ex-works price of
                                               the product
                                                   170
 ---pagebreak--- HS heading Description of product        Working or processing carr.ed out on non-ongmating
No                                       matenals that confers originating status
     (1)                 (2)                                (3)          or             (4)
8429       Self-propelled bulldozers,
           angledozers..graders,
           levellers, scrapers,
           mechanical shovels,
           excavators, shovel loaders,
           tamping machines and road
           rollers:
           - Road rollers                Manufacture in which the
                                         value of all the materials
                                         used does not exceed 40%
                                         of the ex-works price of the
                                         product
           - Other                       Manufacture:                    Manufacture in which the
                                         - in which the value of all     value of all the materials
                                            the materials used does      used does nc* exceed 30%
                                            not exceed 40% of the        of the ex-works price of the
                                            ex-works price of the        product
                                            product, and
                                         - where, within the above
                                            limit, the materials
                                            classified within
                                            heading No 8431 are only
                                            used up to a value of 10%
                                            of the ex-works price of
                                            the product
8430       Other moving, grading,        Manufacture:                    Manufacture in which the
           levelling, scraping,          - in which the value of all     value of all the materials
           excavating, tamping,             the materials used does      used does not exceed 30%
           compacting, extracting or        not exceed 40% of the        of the ex-works price of the
           boring machinery, for earthr.    ex-works pnce of the         product
           minerals or ores;                product, and
           pile-drivers and              - where, within the above
           pile-extractors;                 limit, the value of the
           snow-ploughs and                 materials classified within
           snow-blowers                     heading No 8431 are only
                                             used up to a value of 10%
                                            of the ex-works price of
                                            the product
ex 8431     Parts for road rollers        Manufacture in which the
                                         value of all the materials
                                          used does not exceed 40%
                                          of the ex-works price of the
                                          product
                                               171
 ---pagebreak---   HS heading   Description of product          Working or processing carried out on non-originating
  No                                           materials that confers onginating status
        0)                    (2)                                  (3)         or              (4)
  8439         Machinery for making pulp       Manufacture:                    Manufacture in which the
               of fibrous cellulosic material  - in which the value of all     value of all the materials
               or for making or finishing         the matenals used does       used does not exceed 30%
               paper or paperboard                not exceed 40% of the        of the ex-works pnce of the
                                                  ex-works price of the        product
                                                  product, and
                                               - where, within the above
                                                  limit, the materials
                                                  Classified within the same -
                                                  heading as the product
                                                  are only used up to a
                                                  value of 25% of the
                                                  ex-works price of the
                                                  product
  8441         Other machinery for making      Manufacture:                    Manufacture in which the
               up paper pulp, paper or         - in which the value of all the value of all the materials
               paperboard. including cutting      materials used does not      used does not exceed 30% of
               machines of all kinds              exceed 40% of the            the ex-works price of the
                                                  ex-works pnce of the         product
                                                  product, and
                                               - where, within the above
                                                  limit, the materials
                                                  classified within the same
                                                  heading as the product are
                                                  only used up to a value
                                                  of 25% of the ex-works
                                                   price of the product
j 8444 to 8447 Machines of these headings       Manufacture in which the
               lor use in the textile industry  value of all the materials
                                                used does not exceed 40% of
                                                the ex-works price of the
                                                product
  ex 8448      Auxiliary machinery for use      Manufacture in which the
               with machines of                 value of all the materials
               heading Nos 8444 and 8445        used does not exceed 40% of
                                                the ex-works price of the
                                                product
  8452          Sewing machines, other than
                book-sewing machines of
                heading No 8440; furniture,
                bases and covers specially
                designed for sewing
                machines; sewing machine
                needles:
                                                      172
 ---pagebreak--- HS heading Descnption of product          Working or processing earned out on non-originating
No                                        materials that confers originating status
     0)                   (2)                             (3)             or        (4)
             Sewing machines (lock        Manufacture:
             stitch only) with heads of a - in which the value of all the
             weight not exceeding 16 kg      materials used does not
             without motor or 17 kg with     exceed 40% of the
             motor                           ex-works price of the
                                             product,
                                          - where the value of all the
                                             non-originating materials
                                             used in assembling the
                                             head (without motor) does -
                                             not exceed the value of the
                                             originating materials used,
                                             and
                                          - the thread tension, crochet
                                          and zigzag mechanisms used
                                          are already originating
           - Other                        Manufacture in which the
                                          value of all the materials
                                          used does not exceed 40%
                                          of the ex-works price of the
                                          product
8456 to    Machine-tools and              Manufacture in which the
8466       machines and their parts       value of all the materials
           and accessories of             used does not exceed 40%
           headings Nos 8456 to 6466      of the ex-works price of the
                                          product
8469 to    Office machines (for           Manufacture in which the
8472       example, typewriters,          value of all the materials
           calculating machines,          used does not exceed 40%
           automatic data processing      of the ex-works price of the
           machines, duplicating          product
           machines, stapling
           machines)
8480       Moulding boxes for metal        Manufacture in which the
           foundry; mould bases;          value of all the materials
           moulding patterns: moulds       used does not exceed 50%
           for metal (other than ingot     of the ex-works price of the
           moulds), metal carbides,        product
           glass, mineral materials,
           rubber or plastics
                                                173
 ---pagebreak---  HS heading  Description of product         Working or processing carried out on non-originating
 No                                         materials that confers originating status
      0)                    (2)                               (3)            or             (4)
 8482        Ball or roller bearings        Manufacture in which:            Manufacture in which the
                                            - all the materials used are     value of all the materials
                                               classified within a           used does not exceed 25%
                                               heading other than that of    of the ex-works price of the
                                               the product, and              product
                                            - the value of all the
                                               materials used does not
                                               exceed 40% of the
                                               ex-works price of the
                                               product
 8484        Gaskets and similar joints of  Manufacture in which the
             metal sheeting combined       value of all the materials
             with other material or of two used does not exceed 40%
             or more layers of metal;      of the ex-works price of the
             sets or assortments of        product
             gaskets and similar joints,
             dissimilar in composition,
             put up in pouches,
            envelopes or similar
             packings
8485        Machinery parts, not           Manufacture in which the
            containing electrical "        value of all the materials
            connectors, insulators,        used does not exceed 40%
            coils, contacts or other       of the ex-works price of the
            electrical features, not       product
            specified or included
            elsewhere in this Chapter
ex          Electrical machinery and       Manufacture in which              Manufacture in which the
            equipment and parts            - all the materials used are     value of all the materials
Chap. 85
            thereof; sound recorders          classified within a            used does not exceed 30%
            and reproducers, television       heading other than that of     of the ex-works price of the
            image and sound recorders         the product, and               product
            and reproducers, and parts     - the value of all the
            and accessories of such           materials used does not
            articles; except for              exceed 40% of the
            heading Nos 8501. 8502. ex        ex-works price of the
            8518. 8519 to 8529. 8535 to       product
            8537. ex 8541. 8542, 8544
            to 8548 for which the rules
            are set out below:
                                                 174
 ---pagebreak--- HS heading Description of product        Working or processing carried out on non-onginating
 No                                      materials that confers originating status
      (D                 (2)                                (3)           or              (4)
8501        Electric motors and          Manufacture:                     Manufacture in which the
            generators (excluding        - in which the value of all      value of all the materials
            generating sets)                the materials used does       used does not exceed 30%
                                            not exceed 40% of the         of the ex-works price of the
                                            ex-works price of the         product
                                           product, and
                                         - where, within the above
                                               limit, the materials
                                               classified within
                                               heading No 8503 are
                                               only used up to a value
                                               of 10% of the ex-works
                                               price of the product
8502        Electric generating sets and Manufacture:                     Manufacture in which the
            rotary converters            - in which the value of all      value of all the materials
                                           the materials used does        used does not exceed 30%
                                            not exceed 40% of the         of the ex-works price of the
                                           ex-works price of the          product
                                            product, and
                                         - where, within the above
                                            limit, the materials
                                            classified within •
                                            heading No 8501 or 8503,
                                           taken together, are only
                                            used up to a value of 10%
                                           of the ex-works price of
                                           the product
ex 8518    Microphones and stands        Manufacture:                     Manufacture in which the
           therefor; loudspeakers,       - in which the value of all      value of all the materials
           whether or not mounted in        the materials used does       used does not exceed 25%
           their enclosures;                 not exceed 40% of the        of the ex-works pnce of the
           audio-frequency electric         ex-works price of the         product
           amplifiers; electric sound        product, and
           amplifier sets                - where the value of all the
                                            non-originating materials
                                            used does not exceed the
                                           value of the originating
                                            materials used
8519       Turntables (record-decks),
           record-players,
           cassette-players and other
           sound reproducing
           apparatus, not incorporating
           a sound recording device:
                                               175
 ---pagebreak---  HS heading  Description of product       Working or processing carried out on non-originating
 No                                       materials that confers originating status
      0)                  (2)                               (3)            or              (4)
             - Electric gramophones       Manufacture:                     Manufacture in which the
                                          - in which the value of all      value of all the materials
                                             the materials used does       used does not exceed 25%
                                             not exceed 40% of the         of the ex-works price of the
                                             ex-works price of the         product
                                             product, and
                                          - where the value of all the
                                             non-originating materials
                                             used does not exceed the
                                             value of the originating
                                             materials used
             -Other                       Manufacture:                     Manufacture in which the
                                         - in which the value of all       value of all the materials
                                            the materials used does        used does not exceed 30%
                                             not exceed 40% of the         of the ex-works price of the
                                            ex-works price of the          product
                                             product, and
                                          - where the value of all the
                                             non-originating materials
                                             used does not exceed the
                                             value of the originating
                                             materials used
8520        Magnetic tape recorders -    Manufacture:                      Manufacture in which the
            and other sound recording    - in which the value of all       value of all the materials
            apparatus, whether or not       the materials used does        used does not exceed 30%
            incorporating a sound           not exceed 40% of the          of the ex-works price of the
            reproducing device              ex-works price of the          product
                                            product, and
                                         - where the value of all the
                                            non-originating materials
                                            used does not exceed the
                                            value of the originating
                                            materials used
8521        Video recording or           Manufacture:                      Manufacture in which the
            reproducing apparatus,       - in which the value of all       value of all the materials
            whether or not incorporating    the materials used does        used does not exceed 30%
            a video tuner                   not exceed 40% of the          of the ex-works price of the
                                            ex-works price of the          product
                                            product, and
                                         - where the value of all the
                                            non-originating materials
                                            used does not exceed the
                                            value of the originating
                                            materials used
8522        Parts and accessories of     Manufacture in which the
            apparatus of                 value of all the materials
            heading Nos. 8519 to 8521    used does not exceed 40%
                                         of the ex-works price of the
                                         product
                                               176
 ---pagebreak---  HS heading  Description of product       Working or processing carried out on non-originating
 No                                       materials that confers onginating status
      0)                   (2)                             '(3)          or              (4)
 8523        Prepared unrecorded media    Manufacture in which the
             for sound recording or       value of all the materials
             similar recording of other   used does not exceed 40%
             phenomena, other than        of the ex-works price of the
             products of Chapter 37       product
 8524        Records, tapes and other
             recorded media for sound or
             other similarly recorded
             phenomena, including
             matrices and masters for
             the production of records,
             but excluding products of
             Chapter 37:
             - Matrices and masters for  Manufacture in which the
               the production of records value of all the materials
                                         used does not exceed 40%
                                         of the ex-works price of the
                                         product
            -Other                       Manufacture:                     Manufacture in which the
                                         - in which the value of all      value of all the materials
                                            the materials used does       used does not exceed 30%
                                            not exceed 40% of the         of the ex-works price of the
                                            ex-works price of the         product
                                            product, and
                                         - where, within the above
                                            limit, the materials
                                            classified within
                                            heading No 8523 are only
                                            used up to a value of 10%
                                            of the ex-works price of
                                            the product
8525        Transmission apparatus for   Manufacture:                     Manufacture in which the
            radio-telephony,             - in which the value of all      value of all the materials
            radio-telegraphy,               the materials used does       used does not exceed 25%
            radio-broadcasting or           not exceed 40% of the         of the ex-works price of the
            television, whether or not      ex-works price of the         product
            incorporating reception         product, and
            apparatus or sound           - where the value of all the
            recording or reproducing        non-originating materials
            apparatus; television           used does not exceed
            cameras                         the value of the
                                            originating materials used
                                               177
 ---pagebreak--- HS heading  Description of product      Working or processing carried out on non-originating
No                                      materials that confers originating status
     d)                   (2)                          (3)            or               (4)
8526        Radar apparatus, radio      Manufacture:                     Manufacture " i which the
            navigational aid apparatus  - in which the value of all      value of all the materials
            and radio remote control      the materials used does        used does net exceed 25%
           apparatus                      not exceed 40% of the          of the ex-works price of the
                                          ex-works price of the          product
                                          product, and
                                        - where the value of all the
                                          non-origmating materials
                                          used does not exceed
                                          the value of the
                                          originating materials used
8527        Reception apparatus for     Manufacture:                     Manufacture in which the
            radio-telephony,            - in which the value of all      value of all the materials
            radio-telegraphy or radio     the materials used does        used does not exceed 25%
            broadcasting, whether or      not exceed 40% of the          of the ex-works price of the
           not combined, in the same      ex-works price of the          product
           housing, with sound            product, and
           recording or reproducing     - where the value of all the
           apparatus or a clock           non-originating materials
                                          used does not exceed
                                          the value of the
                                          originating materials used
8528       Television receivers
           (including video monitors
           and video projectors),
           whether or not incorporating
           radio broadcast receivers or
           sound or video recording or
           reproducing apparatus
           - Video recording or         Manufacture:                     Manufacture in which the
             - reproducing apparatus    - in which the value of all      value of all the materials
              incorporating a video       the materials used does        used does not exceed 30%
              tuner                       not exceed 40% of the          of the ex-works pnce of the
                                          ex-works price of the          product
                                          product, and
                                        - where the value of all the
                                          non-originating materials
                                          used does not exceed
                                          the value of the
                                          originating materials used
                                            178
 ---pagebreak--- HS heading Description of product        Working or processing carried out on non-onginating'
No                                       materials that confers originating status
     0)                   (2)   .                        (3)           or               (4)
           - Other                       Manufacture:                     Manufacture in which the
                                         - in which the value of all      value of all the materials
                                            the materials used does       used does not exceed 25%
                                            not exceed 40% of the         of the ex-works price of the
                                            ex-works price of the         product
                                            product, and
                                         - where the value of all the
                                            non-originating materials
                                            used does not exceed .
                                            the value of the
                                            originating materials used
8529       Parts suitable for use solely
           or principally with the
           apparatus of
           heading Nos. 8525 to 8528:
           - Suitable for use solely or  Manufacture in which the
             principally with video      value of all the materials
             recording or reproducing    used does not exceed 40%
             apparatus                   of the ex-works price of the
                                         product
           - Other                       Manufacture:                     Manufacture in which the
                                         - in which the value of all      value of all the materials
                                            the materials used does       used does not exceed 25%
                                            not exceed 40% of the         of the ex-works price of the
                                            ex-works price of the         product
                                            product, and
                                         - where the value of all the
                                            non-originating materials
                                            used does not exceed
                                            the value of the
                                            originating materials used
8535       Electrical apparatus for      Manufacture:                     Manufacture in which the
and 8536   switching or protecting       - in which the value of all      value of all the materials
           electrical circuits, or for      the materials used does       used does not exceed 30%
           making connections to or in      not exceed 40% of the         of the ex-works price of the
           electrical circuits              ex-works price of the         product
                                            product, and
                                         - where, within the above
                                            limit, the materials
                                            classified within
                                            heading No 8538 are only
                                            used up to a value of 10%
                                            of the ex-works price of
                                            the product
                                               179
 ---pagebreak--- HS heading  Descnption of product           Working or processing earned out on non-originating materials
No                                          that confers originating status
      (1)                 (2)                                (3)            or              (4)
8537       Boards, panels (including        Manufacture:                       Manufacture in which the
           numerical control panels),       - in which the value of all        value of all the materials
           consoles, desks, cabinets          the materials used does          used does not exceed 30%
           and other bases, equipped          not exceed 40% of the            of the ex-works price of the
           with two or more apparatus         ex-works price of the            product
           of heading No 8535 or              product, and
           8536, for electric control or    - where, within the above
           the distribution of electricity,   limit, the materials
           including those                    classified within
           incorporating instruments or       heading No 8538 are only
           apparatus of Chapter 90,           used up to a value of 10%
           other than switching               of the ex-works price of
           apparatus of heading No            the product
           8517
ex 8541    Diodes, transistors and          Manufacture in which:              Manufacture in which the
           similar semi-conductor           - all the materials used are       value of all the materials
           devices, except wafers not         classified within a heading      used does not exceed 25% of
           yet cut into chips                 other than that of the           the ex-works price of the
                                              product, and                     product
                                            - the value of all the
                                              materials used does not
                                              exceed 40% of the *
                                              ex-works price of the
                                              product
8542       Electronic integrated circuits   Manufacture:                       Manufacture in which the
           and microassemblies              - in which the value of all the    value of all the materials
                                              materials used does not          used does not exceed 25% of
                                              exceed 40% of the                the ex-works price of the
                                              ex-works price of the            product
                                              product, and
                                            - where, within the above
                                              limit, the materials
                                              classified within
                                              heading No 8541 or 8542,
                                              taken together, are only
                                              used up to a value of 10%
                                              of the ex-works price of the
                                              product
8544       Insulated (including             Manufacture in which the
           enamelled or anodised) wire,     value of all the materials
           cable (including coaxial         used does not exceed 40% of
           cable) and other insulated       the ex-works price of the
           electric conductors, whether     product
           or not fitted with connectors;
           optical fibres cables, made
           up of individually sheathed
           fibres, whether or not
           assembled with electric
           conductors or fitted with
           connectors
                                                 180
 ---pagebreak--- HS headng    Description of product             Working or processing earned out on non-originating materials
No                                              that confers originating status
      0)                     (2)                                 (3)            or       (4)
8545         Carbon electrodes, carbon          Manufacture in which the
             brushes, lamp carbons,             value of all the materials
             battery carbons and ether          used does not exceed 40% of
             articles of graphite or other      the ex-works price of the
             carbon, with or without metal,     product
             of a kind used for electrical
             purposes
6546         Electrical insulators of any       Manufacture in which the
             material                           value of all the materials
                                                used does not exceed 40% of
                                                the ex-works price of the
                                                product
8547         Insulating fittings for electrical Manufacture in which the
             machines, appliances or            value of all the materials
             equipment, being fittings          used does not exceed 40% of
             wholly of insulating materials     the ex-works price of the
             apart from any minor               product
             components of metal (for
             example, threaded sockets)
             incorporated during moulding
             solely for purposes of
             assembly other than
             insulators of heading No
             8546; electrical conduit
             tubing and joints therefor, of
             base metal lined with
             insulating material
8548         Electrical parts of machinery       Manufacture in which the
             or apparatus, not specified or      value of all the materials
             included elsewhere in this          used does not exceed 40% of
             Chapter                             the ex-works price of the
                                                 product
8601 to 8607 Railway or tramway                  Manufacture in which the
             locomotives, rolling-stock and      value of all materials used
             parts thereof                       does not exceed 40% of the
                                                 ex-works price of the product
                                                      181
 ---pagebreak--- HS heading  Description of product            Working or processing carried ou*, on non-onginating
No                                            materials that confers originating status
     (1)                     (2)                                 (3)           or              (4)
8608        Railway or tramway track          Manufacture in which.            Manufacture in which the
            fixtures and fittings;            - all the materials used are     va'ue of all the matenals
            mechanical (including                classified within a heading   used does not exceed 30o« of
            electro-mechanical)                  other than that of the        the ex-works price of the
            signalling, safety or traffic        product, and                  product
            control equipment for             - the value of all the
            railways, tramways, roads,           materials used does not
            inland waterways, parking            exceed 40% of the
            facilities, port installations or    ex-works price of the
            airfields; parts of the              product
            foregoing
8609        Containers (including             Manufacture in which the
            containers for the transport of   value of all the materials
            fluids) especially designed       used does not exceed 40% of
            and equipped for carriage by      the ex-works price of the
            one or more modes of              product
            transport
ex          Vehicles other than railway       Manufacture in which the
Chap. 87   or tramway rolling-stock,          value of all the materials
           and parts and accessories          used does not exceed 40%
           thereof; except for                of the ex-works price of the
           heading Nos 8709 to 8711,          product
           ex 8712. 8715 and 8716 for
           which the rules are set out
           below:
8709       Works trucks,                      Manufacture in which:            Manufacture in which the
           self-propelled, not fitted with    - all the materials used are     value of all the materials
           lifting or handling                   classified within a           used does not exceed 30%
           equipment, of the type used           heading other than that of    of the ex-works price of the
           in factories, warehouses,             the product, and              product
           dock areas or airports for         - the value of all the
           short distance transport of           materials used does not
           goods; tractors of the type           exceed 40% of the
           used on railway station               ex-works price of the
           platforms; parts of the               product
           foregoing vehicles
8710       Tanks and other armoured           Manufacture in which:            Manufacture in which the
           fighting vehicles, motorized,      - all the materials used are     value of all the materials
           whether or not fitted with            classified within a           used does not exceed 30%
           weapons, and parts of such            heading other than that of    of the ex-works price of the
           vehicles                              the product, and              product
                                              - the value of all the
                                                 materials used does not
                                                 exceed 40%. of the
                                                 ex-works price of the
                                                 product
                                                   182
 ---pagebreak---                                          1 l MM1 1 1H l
                                          "'    ^ ^ ' '*^HlllMIBI1Biainiaai,<^
HS heading Description of product         Working or processing carried out on non-originating
No                                        materials that confers originating status
     (D                  (2)                                          (3)      or              (4)
8711       Motorcycles (including
           mopeds) and cycles fitted
           with an auxiliary motor, with
           or without side-cars; side-
           cars:
           - With reciprocating
             internal combustion
             piston engine of a
             cylinder capacity:
           - Not exceeding 50 cm 3        Manufacture in which:                   Manufacture in Which the
                                          - in which the value of all             value of all the materials
                                              the materials used does             used does not exceed 20%
                                              not exceed 40% of the               of the ex-works price of the
                                              ex-works price of the               product
                                              product, and
                                          - where the value of all the
                                               non-originating materials
                                              used does not exceed the
                                               value of the originating
                                               materials used
             Exceeding 50 cm 3            Manufacture:                            Manufacture in which the
                                          - in which the value of all             value of all the materials
                                              the materials used does             used does not exceed 25%
                                               not exceed 40% of the              of the ex-works price of the
                                               ex-works price of the              product
                                               product, and
                                          - where the value of all the
                                               non-originating materials
                                               used does not exceed the
                                               value of the originating
                                               materials used
           - Other                        Manufacture:                            Manufacture in which the
                                          - in which the value of all             value of all the materials
                                               the materials used does            used does not exceed 30%
                                               not exceed 40% of the              of the ex-works price of the
                                               ex-works price of the              product
                                               product, and
                                          - where the value of all the
                                               non-originating materials
                                               used does not exceed the
                                               value of the originating
                                               materials used
ex 8712    Bicycles without ball           Manufacture from materials             Manufacture in which the
           bearings                        not classified in heading No           value of all the materials
                                           8714                                    used does not exceed 30%
                                                                                   of the ex-works price of the
                                                                                   product
                                                  183
 ---pagebreak--- HS heac.ng Description of product        Working or processing carried out on non-origmating
No                                       materials that confers originating status
      (D                 (2)                               (3)           or              (4)
8715       Baby carriages and parts      Manufacture in which:            Manufacture in which the
           thereof                       - all the materials used are     value of all the materials
                                            classified within a           used does not exceed 30%
                                            heading other than that of    of the ex-works price of the
                                            the product, and              product
                                         - the value of all the
                                            materials used does not
                                            exceed 40% of the
                                            ex-works price of the
                                            product
8716       Trailers and semi-trailers;   Manufacture in which:            Manufacture in which the
           other vehicles, not           - all the materials used are     value of all the materials
           mechanically propelled;          classified within a           used does not exceed 30%
           parts thereof                    heading other than that of    of the ex-works price of the
                                           the product, and               product
                                         - the value of all the
                                            materials used does not
                                            exceed 40% of the
                                            ex-works price of the
                                            product
ex         Aircraft, spacecraft, and     Manufacture in which all the     Manufacture in which the
Chap. 88   parts thereof; except for     materials used are               value of all the materials
           heading Nos ex 8804           classified within a heading      used does not exceed 40%
           and 8805 for which the rules  other than that of the           of the ex-works price of the
           are set out below:            product                          product
ex 8804    Rotochutes                    Manufacture from materials       Manufacture in which the
                                         of any heading including         value of all the materials
                                         other materials of               used does not exceed 40%
                                         heading No 8804                  of the ex-works price of the
                                                                          product
8805       Aircraft launching gear;      Manufacture in which all the     Manufacture in which the
           deck-arrestor or similar      materials used are               value of all the materials
           gear; ground flying trainers; classified within a heading      used does not exceed 30%
           parts of the foregoing        other than that-of the           of the ex-works price of the
           articles                      product                          product
Chap. 89   Ships, boats and floating     Manufacture in which all the     Manufacture in which the
           structures                    materials used are               value of all the materials
                                         classified within a heading      used does not exceed 40%
                                         other than that of the           of the ex-works price of the
                                         product. However, hulls of       product
                                         heading No 8906 may not
                                         be used
                                              184
 ---pagebreak--- HS heading Descnption of product          Working or processing earned out on non-ongmating
No                                        materials that confers originating status
      0)                  (2)                               (3)           or              (4)
ex         Optical, photographic,         Manufacture in which:            Manufacture in which the
Chap. 90   cinematographic,               - all the materials used are     value of all the materials .
           measuring, checking,              classified within a           used does not exceed 30%
           precision, medical or             heading other than that of    of the ex-works price of the
           surgical instruments and          the product, and              product
           apparatus, parts and           - the value of all the
           accessories thereof; except       materials used does not
           for heading Nos 9001,             exceed 40% of the
           9002, 9004. ex 9005,              ex-works price of the
           ex 9006, 9007, 9011,              product
           ex 9014. 9015 to 9020
           and 9024 to 9033 for which
           the rules are set out below:
9001.      Optical fibres and optical     Manufacture in which the
           fibre bundles; optical fibre   value of all the materials
           cables other than those of     used does not exceed 40%
           heading No 8544; sheets        of the ex-works price of the
           and plates of polarizing       product
           material, lenses (including
           contact lenses), prisms,
           mirrors and other optical
           elements, of any material,
           unmounted, other than such
           elements of glass not
           optically worked
9002       Lenses, prisms, mirrors and    Manufacture in which the
           other optical elements, of     value of all the materials
           any materials, mounted,        used does not exceed 40%
           being-parts of or fittings for of the ex-works price of the
           instruments or apparatus,      product
           other than such elements of
           glass not optically worked
9004       Spectacles, goggles and        Manufacture in which the
           the like, corrective,          value of all the materials
           protective or other            used does not exceed 40%
                                          of the ex-works price of the
                                          product
                                               185
 ---pagebreak--- HS heac.ng Description of product     Working or processing carried out on non-originating
No                                    materials that confers originating status
     0)                  (2)                            (3)            or             (4)
ex 9005    Binoculars, monoculars,    Manufacture in w~.ich:           Manufacture in which the
           otner optical telescopes,  - all the materials used are     value of all the materials •
           and mountings therefor,       classified within a           used does not exceed 30%
           except for astronomical       heading other than that of    of the ex-works price of the
           refracting telescopes and     the product, and .            product
           mountings therefor         - the value of al! the
                                         materials used does not
                                         exceed 40% of the
                                         ex-works price of the
                                         product, and
                                      - where the value of all the
                                         non-originating materials
                                         used does not exceed the
                                         value of the originating
                                         materials used
ex 9006    Photographic (other than   Manufacture in which:            Manufacture in which the
           cinematographic) cameras;  - all the materials used are     value of all the materials
           photographic flashlight       classified within a           used does not exceed 30%
           apparatus and flashbulbs      heading other than that of    of the ex-works price of the
           other than electrically       the product, and              product
           ignited flashbulbs         - the value of all the
                                         materials used does not
                                         exceed 40% of the
                                         ex-works price of the
                                         product, and
                                      - where the value of all the
                                         non-originating materials
                                         used does not exceed the
                                         value of the originating
                                         materials used
9007       Cinematographic cameras    Manufacture in which:            Manufacture in which the
           and projectors, whether or - all the materials used are     value of all the materials
           not incorporating sound       classified within &           used does not exceed 30%
           recording or reproducing      heading other than that of    of the ex-works price of the
           apparatus                     the product, and              product
                                      - the value of all the
                                          materials used does not
                                          exceed 40% of the
                                          ex-works price of the
                                          product, and
                                       - where the value of all the
                                          non-originating materials
                                          used does not exceed the
                                          value of the originating
                                          materials used
                                            186
 ---pagebreak--- HS heading Descnption of product        Working or processing earned out on non-origmating
No                                      materials that confers originating status
     (1)                 (2)                             (3)           or              (4)
9011       Compound optical             Manufacture in which;            Manufacture in which the
           microscopes, including       -- all the materials used are    value of all the materials '
           those for photomicrography,     classified within a           used does not exceed 30%
           cinephotomicrography or         heading other than that of    of the ex-works price of the
           microprojection                 the product and               product
                                        - the value of all the
                                           materials used does not
                                           exceed 40% of the
                                           ex-works price of the
                                           product, and
                                        - where the value of all the
                                           non-originating materials
                                           used does not exceed the
                                           value of the originating
                                           materials used
ex 9014    Other navigational           Manufacture in which the
           instruments and appliances   value of all the materials
                                        used does not exceed 40%
                                        of the ex-works price, of the
                                        product
9015       Surveying (including         Manufacture in which f-e
           photogrammetrical            value of all the materials
           surveying), hydrographie,    used does not exceed 40%
           océanographie,               of the ex-works price of the
           hydrological, meteorological product
           or geophysical instruments
           and appliances, excluding
           compasses, rangefinders
9016       Balances of a sensitivity    Manufacture in which the
           of 5 eg or better, with or   value of all the materials
           without weights              used does not exceed 40%
                                        of the ex-works price of the
                                        product
9017       Drawing, marking-out or      Manufacture in which the
           mathematical calculating     value of all the materials
           instruments (for example,    used does not exceed 40%
           drafting machines,           of the ex-works price of the
           pantographs, protractors,    product
           drawing sets, slide rules,
           disc calculators);
           instruments for measuring
           length, for use in the hand
           (for example, measuring
           rods and tapes,
           micrometers, callipers), not
           specified or included
           elsewhere in this Chapter
                                              187
 ---pagebreak--- HS heao:ng  Descnption of product          Working or processing carried out on non-ongmating
No                                         materials that confers originating status
     (t)                   (2)                              (3)            or              (4)
9018        Instruments and appliances
            used in medical, surgical,
            dental or veterinary
            sciences, including
            scintigraphic apparatus,
            other electro-medical
            apparatus and sight-testing
            instruments:
            - Dentists' chairs             Manufacture from materials       Manufacture in which the
              incorporating dental         of any heading, including        value of ail the materials
              appliances or dentists'      other materials of               used does not exceed 40%
              spittoons                    heading No 9018                  of the ex-wcrks price of the
                                                                            product
            - Other                        Manufacture in which:            Manufacture in which the
                                           - all the materials used are     value of all the materials
                                             classified within a            used does not exceed 25%
                                              heading other than that of    of the ex-works price of the
                                             the product, and               product
                                           - the value of all the
                                             materials used does not
                                             exceed 40% of the ,
                                             ex-works price of the
                                             product
9019       Mechano-therapy                 Manufacture in which:            Manufacture in which the
           appliances; massage             - all the materials used are     value of all the materials
           apparatus; psychological          classified within a            used does not exceed 25%
           aptitude-testing apparatus;       heading other than that of     of the ex-works price of the
           ozone therapy, oxygen             the product, and               product
           therapy, aerosol therapy,       - the value of all the
           artificial respiration or other   materials used does not
           therapeutic respiration           exceed 40% of the
           apparatus                         ex-works price of the
                                             product
9020       Other breathing appliances      Manufacture in which:            Manufacture in which the
           and gas masks, excluding        - all the materials used are     value of all the materials
           protective masks having           classified within a            used does not exceed 25%
           neither mechanical parts          heading other than that of     of the ex-works price of the
           nor replaceable filters           the product, and               product
                                           - the value of all the
                                             materials used does not
                                             exceed 40% of the
                                             ex-works price of the
                                             product
9024       Machines and appliances         Manufacture in which the
           for testing the hardness,       value of all the materials
           strength, compressibility,      used does not exceed 40%
           elasticity or other             of the ex-works price of the
           mechanical properties of        product
           materials (for example,
           metals, wood, textiles,
           paper, plastics)
                                                188
 ---pagebreak--- HS heading  Description of product        Working or processing carried out on non-originating
No                                        materials that confers originating status
     (1)                   (2)                              (3)            or         (4)
9025        Hydrometers and similar       Manufacture in which the
            floatihg instruments,         value of all the materials
            thermometers, pyrometers,     used does not exceed 40%
            barometers, hygrometers       of the ex-works price of the
            and psychrometers,            product
           recording or not, and any
            combination of these
            instruments
9026        Instruments and apparatus     Manufacture in which the
            for measuring or checking     value of all the materials
            the flow, level, pressure or  used does not exceed 40%
            other variables of liquids or of the ex-works price of the
            gases (for example, flow      product
            meters, level gauges,
            manometers, heat meters),
           excluding instruments and
            apparatus of
           heading No 9014, 9015,
           9028 or 9032
9027       Instruments and apparatus      Manufacture in which the
           for physical or chemical       value of all the materials
           analysis (for example,         used does not exceed 40%
           polarimeters,                  of the ex-works price of the
           refraetometers,                product
           spectrometers, gas or
           smoke analysis apparatus);
           instruments and apparatus
           for measuring or checking
           viscosity, porosity,
           expansion, surface tension
           or the like; instruments and
           apparatus for measuring or
           checking quantities of heat,
           sound or light (including
           exposure meters);
           microtomes
9028       Gas. liquid or electricity
           supply or production
           meters, including calibrating
           meters therefor:
           - Parts and accessories        Manufacture in which the
                                          value of all the materials
                                          used does not exceed 40%
                                          of the ex-works price of the
                                          product
                                               189
 ---pagebreak--- HS heading  Description of product     Working or processing earned out on non-onginatir.g
No                                     materials that confers onginating status
     0)                   (2)                           (3)           or              (4)
            - Other                    Manufacture:                    Manufacture in which the
                                       - in which the value of all     value of all the materials
                                          the materials used does      used does not exceed 30%
                                          not exceed 40% of the        of the ex-works price of the
                                          ex-works price of the        product
                                          product, and
                                       - where the value of all the
                                          non-originating materials
                                          used does not exceed the
                                          value of the originating
                                          materials used
9029        Revolution counters,       Manufacture in which the
            production counters,       value of all the materials
           taxirheters. milometers,    used does not exceed 40%
            pedometers and the like;   of the ex-works price of the
            speed indicators and       product
           tachometers, other than
           those of heading Nos 9104
           or 9015; stroboscopes
9030       Oscilloscopes, spectrum     Manufacture in which the
           analysers and other         value of all the materials
           instruments and apparatus   used does not exceed 40%
           for measuring or checking   of the ex-works price of the
           electrical quantities,      product
           excluding meters of
           heading No 9028;
           instruments and apparatus
           for measuring or detecting
           alpha, beta, gamma. X-ray,
           cosmic or other ionizing
           radiations
9031       Measuring or checking       Manufacture in which the
           instruments, appliances and value of all the materials
           machines, not specified or  used does not exceed 40%
           included elsewhere in this  of the ex-works price of the
           Chapter; profile projectors product
9032       Automatic regulating or     Manufacture in which the
           controlling instruments and value of all the materials
           apparatus                   used does not exceed 40%
                                       of the ex-works price of the
                                       product
                                            190
 ---pagebreak--- HS heading Description of product      Working or processing carried out on non-ongmating
No                                     materials that confers originating status
     0)                  (2)                              (3)           or             (4)
9033       Parts and accessories (not  Manufacture in which the
           specified or included       value of all the materials
           elsewhere in this Chapter)  used does not exceed 40%
           for machines, appliances,   of the ex-works price of the
           instruments or apparatus of product
           Chapter 90
ex         Clocks and watches and      Manufacture in which the
Chap. 91   parts thereof; except for   value of all the materials
           heading Nos 9105 and 9109   used does not exceed 40%
           to 9113 for which the rules of the ex-works price of the
           are set out below:          product
9105       Other clocks                Manufacture:                     Manufacture in which the
                                       - in which the value of all      value of all the materials
                                          the materials used does       used does not exceed 30%
                                          not exceed 40% of the         of the ex-works price of the
                                          ex-works price of the         product
                                          product, and
                                       - where the value of all the
                                          non-originating materials
                                          used does not exceed the
                                          value of the originating
                                          materials used
9109       Clock movements, complete   Manufacture:                     Manufacture in which the
           and assembled               - in which the value of all      value of all the materials
                                          the materials used does       used does not exceed 30%
                                          not exceed 40% of the         of the ex-works price of the
                                          ex-works price of the         product
                                          product, and
                                       - where the value of all the
                                          non-originating materials
                                          used does not exceed the
                                          value of the originating
                                          materials used
9110       Complete watch or clock     Manufacture:                      Manufacture in which the
           movements, unassembled      - in which the value of all      value of all the materials
           or partly assembled            the materials used does        used does not exceed 30%
           (movement sets);               not exceed 40% of the          of the ex-works price of the
           incomplete watch or clock      ex-works price of the          product
           movements, assembled;           product, and
           rough watch or clock        - where, within the above
           movements                       limit, the materials
                                           classified within
                                           heading No 9114 are only
                                           used up to a value of 10%
                                           of the ex-works price of
                                           the product
                                              191
 ---pagebreak---                                                                                                             B
HS heading  Descnption of product           Working or processing earned out on non-onginating materials
No                                          that confers originating status
      (1)                 (2)                               (3)             or              (4)
9111        Watch cases and parts           Manufacture in which:              Manufacture in which the
           thereof                         - all the materials used are        value of all the materials
                                              classified within a              used does not exceed 30%
                                              heading other than that of       of the ex-works price of the
                                              the product, and                 product
                                           - the value of all the
                                              materials used does not
                                              exceed 40% of the
                                              ex-works price of the
                                              product
9112        Clock cases and cases of a     Manufacture in which:               Manufacture in which the
           similar type for other goods of - all the materials used are        value of all the materials
           this Chapter, and parts            classified within a heading      used does not exceed 30% of
           thereof                            other than that of the           the ex-works price of the
                                              product, and                     product
                                           - the value of all the
                                              materials used does not
                                              exceed 40% of the
                                              ex-works price -of the
                                              product
9113       Watch straps, watch bands
           and watch bracelets, and
           parts thereof
           - Of base metal, whether or     Manufacture in which the
              not plated, or of clad       value of all the materials
              precious metal               used does not exceed 40% of
                                           the ex-works price of the
                                           product
           - Other                         Manufacture in which the
                                           value of all the materials
                                           used does not exceed 50% of
                                           the ex-works price of the
                                           product
Chap. 92   Musical instruments; parts      Manufacture in which the
           and accessories of such         value of all the materials
           articles                        used does not exceed 40% of
                                           the ex-works price of the
                                           product
Chap. 93   Arms and ammunition: parts      Manufacture in which the
           and accessories thereof         value of all the materials
                                           used does not exceed 50% of
                                           the ex-works price of the
                                           product
                                                 192
 ---pagebreak--- HS heaoing   Description of product       Working or processing earned out on non-onginating
No                                        materials that confers originating status
      (D                    (2)                             (3)            or       (4)
ex           Furniture: bedding,          Manufacture in which all the
Chap. 94     mattresses, mattress         materials used are classified
             supports, cushions and       within a heading other than
             similar stuffed furnishings; that of the product
             lamps and lighting fittings,
             not elsewhere specified or
             included; illuminated signs,
             illuminated nameplates and
            the like; prefabricated
            buildings; except for
             heading Nos 9401. ex 9403,
             9405 and 9406 for which the
             rules are set out below:
ex 9401 and Base metal furniture,         Manufacture in which all the
ex 9403     incorporating unstuffed       materials used are
            cotton cloth of a weight of   classified in a heading other
            300 g/m2 or less              than that of the product
                                          or
                                          Manufacture from cotton
                                          cloth already made up in a
                                          form ready for use of
                                          heading No 9401 or 9403,
                                          provided:
                                          - its value does not
                                             exceed 25% of the
                                             ex-works price of the
                                             product, and
                                          - all the other materials
                                             used are already
                                             originating and are
                                            classified in a heading
                                             other than
                                            heading No 9401 or 9403
9405        Lamps and lighting fittings   Manufacture in which the
            including searchlights and    value of all the materials-
            spotlights and parts thereof, used does not exceed 50%
            not elsewhere specified or    of the ex-works price of the
            included; illuminated signs,  product
            illuminated name-plates and
            the like, having a
            permanently fixed light
            source, and parts thereof
            not elsewhere specified or
            included
                                               193
 ---pagebreak--- HS heading Description of product        Working or processing earned out on non-originating
No                                       materials that confers originating status
     0)                  (2)                              (3)           or         (4)
9406       Prefabricated buildings       Manufacture in which the
                                         value of all the materials
                                         used does not exceed 50%
                                         of the ex-works price of the
                                         product
ex         Toys, games and sports        Manufacture in which all the
Chap. 95   requisites; parts and         materials used are
           accessories thereof; except   classified within a heading
           for heading Nos 9503          other than that of the
           and 9606 for which the rules  product
           are set out below:
9503       Other toys; reduced-size      Manufacture in which:
           ("scale") models and similar  - all the materials used are
           recreational models,             classified within a
           working or not; puzzles of       heading other than that of
           all kinds                        the product, and
                                         - the value of all the
                                            materials used does not
                                            exceed 50% of the
                                            ex-works price of the
                                            product
ex 9506    Articles and equipment for    Manufacture in which all the
           gymnastics, athletics, other  materials used are
           sports (excluding table       classified within a heading
           tennis) or outdoor games      other than that of the
           not specified or included     product. However, roughly
           elsewhere in this chapter;    shaped blocks for making
           swimming pools and            golf club heads may be
           paddling pools                used
ex         Miscellaneous                 Manufacture in which all the
Chap. 96   manufactured articles;        materials used are
           except for                    classified within a heading
           heading Nos ex 9601,          other than that of the
           ex 9602, ex 9603. 9605.       product
           9606, 9612, ex 9613 and ex
           9614 for which the rules are
           set out below.
ex 9601    Articles of animal, vegetable  Manufacture from "worked"
and 9602   or mineral carving materials   carving materials of the
                                          same heading
ex 9603     Brooms and brushes            Manufacture in which the
            (except for besoms and the    value of all the materials
           like and brushes made from     used does not exceed 50%
            marten or squirrel hair),     of the ex-works price of the
            hand-operated mechanical      product
           floor sweepers, not
            motorized, paint pads and
            rollers, squeegees and
            mops
                                               194
 ---pagebreak---  HS heading  Description of product       Working or processing carried out on non-originating
 No                                       materials that confers originating status
 9605
      (1)                  JZL
             Travel sets for personal
                                         m.                  or
                                          Each item in the set must
                                                                        (4)
             toilet, sewing or shoe or    satisfy the rule, which would
             clothes cleaning             apply to it if it were not
                                          included in the set.
                                          However, non-originating
                                          articles may be
                                          incorporated, provided their
                                         total value does not
                                         exceed 15% of the ex-works
                                         price of the set
 9606        Buttons, press-fasteners,   Manufacture in which:
             snap-fasteners and          - all the materials used are
             press-studs, button moulds     classified within a
             and other parts of these       heading other than that of
             articles; button blanks        the product, and
                                         - the value of all the
                                            materials used does not
                                            exceed 50% of the
                                            ex-works price of the
                                            product
9612        Typewriter or similar        Manufacture in which:
            ribbons, inked or otherwise  - all the materials used are
            prepared for giving             classified within a
            impressions, whether or not     heading other than that of
            on spools or in cartridges;     the product, and
            ink-pads, whether or not     - the value of all the
            inked, with or without boxes    materials used does not
                                            exceed 50% of the
                                            ex-works price of the
                                            product
ex 9613     Lighters with piezo-igniter  Manufacture in which the
                                         value of all the materials of
                                         heading No 9613 used does
                                         not exceed 30% of the
                                         ex-works price of the
                                         product
ex 9614     Smoking pipes and pipe       Manufacture from roughly
            bowls                        shaped blocks
Chap. 97    Works of art, collectors'    Manufacture in which all the
            pieces and antiques          materials used are
                                         classified within a heading
                                         other than that of the
                                         product
                                               195
 ---pagebreak---                                               ANNEX III
                                MOVEMENT CERTIFICATES EUR.1
1. Movement certificates EUR.1 shall be made out on the form of which a specimen appears
   in ths Annex. This form shall be printed in one or more of the languages in which the
   Agreement 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 ceitificate shall measure 210 x 297 mm; a tolerance of up to minus 5 mm or plus
   8 mm in the length may be allowed. The paper used must be white, sized for writing, not
   containing mechanical pulp and weighing not less than 25 g/m3. It shall have a printed
   green guilloche pattern background making any falsification by mechanical or chemical
   means apparent to the eye.
3. The competent authorities of the Member States of the Community and of Israel 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.
                                                196
 ---pagebreak---                                                                                           MOVEMENT CERTIFICATE
        1.    Exporter (ne-ne. Mi address, country)
                                                                                                           EUR.1                     No A             000.000
                                                                                                          See notes overleaf before completing this form
                                                                                                2.    Certificate used In preferential trade between
        3.    Consignee (name, full address, country) (Optional)                                                                  and
                                                                                                 (insert appropriate countries, croups of countries or territones)
                                                                                                     Country, group of               5. Country, group of
                                                                                                      countries or territory In            countries or territory of
                                                                                                     which the products are                destination
                                                                                                     considered as
                                                                                                     originating
        6.   Transport details (Optional)                                                       7.    Remarks
             Item number, Marks and numbers; Number and kind of package "; Description of                             9. Gross mass               10. Invoices
             goods                                                                                                        (kg) or other               (Optional)
                                                                                                                          measure
                                                                                                                          (litres.m'.etc.)
       11. CUSTOMS ENDORSEMENT                                                                                   12. DECLARATION BY THE EXPORTER
            Declaration ceiified                                                                                      I. the undersigned, declare that the goods
            Export document   2                                                                                       described above meet the conditions
                                                                                                                      required for the issue of trvs certificate
            Form                                   No.
            Customs office
            Issuing country or territory                                               Stamp
                                                                                                                      Place and date.
             Date                        _
                              (Signature)
                                                                                                                                      (Signature)
{1 ) Complete oniy when the regulations of the exporting country or territory require
(2) For example import documents, movement certificates, manufacturers declarations, etc. referring to the productt used in manufacture or to the goods
    re-exported m the same state.
                                                                                     197
 ---pagebreak---    13. Request for verification, to:                                         14. Result of verification
                                                                             Verification earned oui shows that this certificate (')
                                                                             •     was issued by the customs office indicated and that the
                                                                                   information contained therein is accuralè.
                                                                                   does not meet the requirements AS to authenticity ano
                                                                                   accuracy (see remarks appended).
   Verification of the authenticity and accurancy of this certificate is
   requested
                               (Place and date)       .                                                  (Piece and date)
                  _                                      Stamp                                                                       Stamp
                      (Signature)                                                               (Signature)
j                                                                            (') Insen X in the appropriate box.,
                                                                         NOTES
1.   Certificates must not contain erasures or words written over one another. Any alterations must be made by deleting -he
     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.
                                                                           198
 ---pagebreak---                                                  APPLICATION FOR A MOVEMENT CERTIFICATE
        1.  Exporter (name, tuii address, country) (Optional)
                                                                                                     EUR.1                    No A           000.000
                                                                                                   See notes oveerteaf before completing this form
                                                                                                Application for a certificate to be used in preferential
                                                                                                trade between
        3.  Consignee {name, full address, country) (Optional)                                                             and
                                                                                           (insert appropriate countries or groups of countries or
                                                                                           territories}
                                                                                           4. Country, group of               5. Country, group of
                                                                                                countries or territory In           countries or territory of
                                                                                                which the products are              destination
                                                                                                considered i s
                                                                                                originating
       6.   Transport details (Optional)                                                   7.   Remarks
            Item number; Marks and numbers; Number and kind of packages ~; Description of                      9. Gross weight            10. Invoices
            goods                                                                                                  (kg) or other              (Optional)
                                                                                                                   measure
                                                                                                                   (litres.m'.etc.)
I3) If goods are not packed, indicate number of articles or state 'in bulk' as appropriate
                                                                                    199
 ---pagebreak---                                        DECLARATION BY THE EXPORTER
I, the undersigned, exporter of the goods described overleaf,
DEO-/ RE       that the goods meet the conditions required for the issue of the attached certificate;
SPECIFY        as follows the circumstances which have enabled these goods to meet the above
               conditions:
SUBMIT        the following supporting documents
UNDERTAKE to submit, at the request of the appropriate authorities, any supporting evidence
                which these authorities may require for the purpose çf issuing the attached
                certificate, and undertake, if required, to agree to any inspection of my accounts
                and to any check on the processes of manufacture of the above goods, carried out
                by the said authorities;
REQUEST       the issue of the attached certificate for these goods.
                                                                       (Place and date)
                                                                          (Signature)
                                                  200
 ---pagebreak---                                                   ANNEX IV
                                    Declaration referred to in Article 22(4)
I. the undersigned, exporter of the goods covered by this document declare that except where
otherwise indicated, the goods meet the conditions to obtain onginating status in preferential
trade with:
     The European Community / Israel (1)
and that the country of origin of the goods is:
     Israel / The European Community (1)
                                                                        (place and date)
                                                                        (Signature)
                                                                (The signature must be followed
                                                                by the name of the signatory in
                                                                clear script)
(1) Delete where necessary.
                                                201
 ---pagebreak---                                         PROTOCOL NO 5
        ON MUTUAL ASSISTANCE BETWEEN ADMINISTRATIVE AUTHORITIES
                                    IN CUSTOMS MATTERS
                                             Article 1
 Définitions
For the purposes of this Protocol :
     a) "customs legislation" shall mean provisions adopted by the              Parties and
          governing the import, export, transit of goods and their placing under any
          customs procedure, including measures of prohibition, restriction and control;
     b) "customs duties" shall mean all duties, taxes, fees or other charges which are
          levied and collected in the territories of the Parties, in application of customs
          legislation, but not including fees and charges which are limited in amount to the
         approximate costs of services rendered;
     c) "applicant authority", shall mean a competent administrative authority which has
         been appointed by a Party for this purpose and which makes a request for
         assistance in customs matters;
     d) "requested authority", shall mean a competent administrative authority which has
         been appointed by a Party for this purpose and which receives a request for
         assistance in customs matters;
     e) "personal data", shall mean all information relating to an identified or identifiable
         individual.
                                             Article 2
                                              ______
I.The Parties shall assist each other, within their competences, in the manner and
   under the conditions laid down in this Protocol, in ensuring that customs legislation is
   correctly applied, in particular by the prevention, detection and investigation of
   operations in breach of that legislation.
2. Assistance in customs matters, as provided for in this Protocol, shall apply to any
   administrative authority of the Parties which is competent for the application of this
   Protocol. It shall not prejudice the rules governing mutual assistance in criminal
   matters. Nor shall it cover information obtained under powers exercised at the
   request of the judicial authorities, unless those authorities so agree.
                                                202
 ---pagebreak---                                            Article 3
                                    Assistant    on request
 1. At the request of the applicant author! •? o requested authority shall furnish it with
    all relevant information which may e- > it to ensure that customs legislation is
    correctly applied, including information regarding operations noted or planned which
    are or could be in breach of such legislation.
2. At the request of the applicant authority, the requested authority shall inform it
    whether goods exported from the territory of one of the Parties have been properly
    imported into the territory of the other Party, specifying, where appropriate, the
    customs procedure applied to the goods.
3. At the request of the applicant authority, the requested authority shall take the
    necessary steps to ensure that a special watch is kept on :
      (a) natural or legal persons of whom there are reasonable grounds for believing that
         they are breaching or have breached customs legislation;
     (b) places where goods are stored in a way that gives grounds for suspecting that
         they are intended to supply operations contrary to customs legislation;
     (c) movements of goods notified as possibly giving rise to breaches of customs
         legislation;
     (d) means of transport for which there are reasonable grounds for believing that
         they have been, are or may be used in operations in breach of customs
         legislation.
                                           Article 4
                                   Spontaneous assistance
The Parties shall provide each other, in accordance with their laws, rules and other
legal instruments, with assistance if they consider that to be necessary for the correct
application of customs legislation, particularly when they obtain information pertaining to
     - operations which constitute, or appear to them to constitute breaches of such
         legislation and which may be of interest to other Parties;
     - new means or methods employed in realizing such operations;
     - goods known to be subject to breaches of customs legislation.
                                              203
 ---pagebreak---                                               Article 5
                                       Delivery/Notification
At the request of the applicant authority, the requested authority shall in accordance
with its legislation take all necessary measures in order :
      - to deliver all documents,
      - to notify all decisions,
falling within the scope of this Protocol to an addressee, residing or established in its
territory. In such a case Article 6(3) shall apply.
                                              Article 6
                         Form and substance of requests for assistance
1. Requests pursuant to this Protocol shall be made in writing. Documents necessary for
    the execution of such requests shall accompany the request. When required
    because of the urgency of the situation, oral requests may be accepted, but must be
    confirmed in writing immediately.
2. Requests pursuant to paragraph 1 of this Article shall include the following
    information :
      (a) the applicant authority making the request;
      (b) the actions to be undertaken;
      (c) the object of and the reason for the request;
      (d) the laws, rules and other legal elements involved;
      (e) indications as exact and comprehensive as possible on the natural or legal
          persons being the target of the investigations;
      (f) a summary of the relevant facts and of the enquiries already carried out, except
          in cases provided for in Article 5.
3. Requests shall be submitted in an official language of the requested authority or in a
    language acceptable to such authority.
4. If a request does not meet the formal requirements, its correction or completion may
    be demanded; the ordering of precautionary measures may, however, take place.
                                                 204
 ---pagebreak---                                               Article 7
                                      Execution of requfisis
 1. In order to comply with a request for assistance, the requested authority or, when the
     latter can not act on its own, the administrative department to which the request has
     been addressed by this authority, shall proceed, within its competence and available
     resources, as though it were acting on its own account or at the request of other
     authorities of that same       Party, by supplying information already possessed, by
     carrying out appropriate enquiries or by arranging for them to be carried out.
2. Requests for assistance will be executed in accordance with the laws, rules and other
     legal instruments of the requested Party.
3. Officials of the requesting Party, authorized to investigate breaches of customs
     legislation may, in particular cases and with the agreement of the requested Party,
    be present respectively in the Community or in Israel, when its officials are
    investigating breaches which are of concern to the requesting Party and may ask
    that the requested Party review relevant books, registers and other documents or
    data-media and supply copies thereof or provide any information relating to the
    breach.
                                              Article 8
                        Form in which information is to be communicated
L.The requested authority shall communicate results of enquiries to the applicant
    authority in the form of documents, certified copies of documents, reports and the
    like.
2. The documents provided for in paragraph 1 may be replaced by computerized
    information produced in any form for the same purpose.
                                              Article 9
                        Exceptions to the obligation to provide assistance
1. The Parties may refuse tc give assistance as provided for in this Protocol, where to
    do so would :
       (a) be likely to prejudice the sovereignty of Israel or of a Member State of the
          Community which has been asked for assistance under this Protocol; or
       (b) be likely to prejudice public policy, security or other essential interests; or
       (c) involve currency or tax regulations other than regulations concerning customs
          duties; or
       (d) violate an industrial, commercial or professional secret.
                                                 205
 ---pagebreak---  2. Where the applicant authority asks for assistance which it would itself be unable to
     provide if so asked, it shall draw attention to that fact in its request. It shall then be
     left to the requested authority to decide how to respond to such a request.
 3. If assistance is withheld or denied, the decision and the reasons therefore must be
     notified to the applicant authority without delay.
                                            Article 10
                              Obligation to observe confidentiality
 1. Any information communicated in whatsoever form pursuant to this Protocol shall be
     of a confidential nature. It shall be covered by the obligation of official secrecy and
     shall enjoy the protection extended to like information under the relevant laws of the
     Party which received it arid the corresponding provisions applying to the Community
     authorities.
2. Personal data may only be transmitted if the level of personal protection afforded by
    the legislations of the Parties is equivalent. The Parties shall ensure at least a
    level of protection based on the principles of Council of Europe Convention N c 108 of
    28 January 1981 for the Protection of Individuals with regard to Automatic
    Processing of Personal Data.
                                            Article 11
                                       Use of information
1. Information obtained shall be used solely for the purposes of this Protocol and may
    be used within each Party for other purposes only with the prior written consent of
    the administrative authority which furnished the information and shall be subject to
    any restrictions-laid down by that authority.
2. Paragraph 1 shall not impede the use of information in any judicial or administrative
    proceedings subsequently instituted for failure to comply with customs legislation.
3. The        Parties may, in their records of evidence, reports and testimonies and in
    proceedings and charges brought before the courts, use as evidence information
    obtained and documents consulted in accordance with the provisions of this Protocol.
                                            Article 12
                                    _____ti_i__iy fitnesses
An official of a requested authority may be authorized to appear, within the limitations of
the authorization granted, as expert or witness in judicial or administrative proceedings
regarding the matters covered by this Protocol in the jurisdiction of another Party, and
produce such objects, documents or authenticated copies thereof, as may be needed
for the proceedings. The request for an appearance must indicate specifically on what
matters and by virtue of what title or qualification the official will be questioned.
                                                206
 ---pagebreak---                                            Article 13
                                    Assistance expenses
The Parties shall waive all claims on each other for the reimbursement of expenses
incurred pursuant to this Protocol, except, as appropriate, for expenses to experts and
witnesses and to interpreters and translators who are not public service employees.
                                           Article 14
                                        Implementation
1. The application of this Protocol shall be entrusted to the central customs authorities
    of Israel on the one hand and the competent services of the Commission of the
    European Communities and, where appropriate, the customs authorities of the
    Member States of the European Union on the other. They shall decide on all practical
    measures and arrangements necessary for its application, taking into consideration
    rules in the field of data protection. They may recommend to the competent bodies
   amendments which they consider be made to this Protocol.
2. The Parties shall consult each other and subsequently keep each other informed of
   the detailed rules of implementation which are adopted in accordance with the
   provisions of this Protocol.
                                           Article 15
                                       Complementarity
1. This Protocol shall complement and not impede the application of any agreements on
   mutual assistance which have been concluded or may be concluded between
   individual or several Member States of the European Union and Israel. Nor shall it
   preclude more extensive mutual assistance granted under such agreements.
2. Without prejudice to Article 11, these agreements do not prejudice Community
   provisions governing the communication between the competent services of the
   Commission and the customs authorities of the Member States of any information
    obtained in customs matters which could be of Community interest.
                                               207
 ---pagebreak---                                                                               I r i ^ m A$«**fTm*;1*tt>»*
                             JOINT DECLARATIONS
                     JOINT DECLARATION ON ARTICLE 1
 The Parties reaffirm the importance they attach to the respect of human rights
 as set out in the UN Charter including the struggle against xenophobia, anti-
 semitism and racism.
                    JOINT DECLARATION ON ARTICLE 2 (2)
  In case of changes in the nomenclature used for the classification of
 agricultural goods or non Annex II processed agricultural products, the Parties
 agree to hold consultations in order to agree the adaptations which would
 appear necessary to maintain the existing concessions.
                   JOINT DECLARATION ON ARTICLE 5 (2).
 With a view to ensure the smooth application of the prior notification foreseen
 by Art. 5 (2) of the Agreement, Israel shall transmit to the Commision, within
 an appropriate delay before adoption, in an informal and confidential manner,
 the elements of the calculation of the agricultural element to be applied. The
 Commission shall inform Israel of its appreciation within a delay of 10 working
days.
        JOINT DECLARATION ON INTELLECTUAL , INDUSTRIAL AND
             COMMERCIAL PROPERTY (ART. 28 AND ANNEX VII)
For the purpose of this Agreement, intellectual, industrial and commercial
property includes in particular copyright, including the copyright in computer
programmes, and neighbouring rights, patents, industrial designs,
geographical indications, including appellations of origin, trademarks and
service marks, topographies of integrated circuits, as well as protection
against unfair competition as referred to in Article 10 bis of the Paris
Convention for the Protection of Industrial Property (Stockholm Act, 1967) and
protection of undisclosed information on "know-how".
It is understood that in the translation of the Agreement into Hebrew the
expression "intellectual, industrial and commercial property" will be translated
into the Hebrew term corresponding to "intellectual property".
                                            ^o?
 ---pagebreak---                                                                              } n ^ m AÇ**»***^*****}
                                                                            mimm^mm-
                    JOINT DECLARATION ON ARTICLE 31
The Cooperation Council's rules of procedure will provide for the possibility of
decisions to be adopted by written procedure.
                    JOINT DECLARATION ON ARTICLE 32
When the arbitration procedure is applied, the Parties will endeavour to
ensure that the Cooperation Council appoints the third arbitrator within two
months of the appointment of the second arbitrator.
             JOINT DECLARATION ON VETERINARY MATTERS
The Parties shall seek to apply their rules on veterinary matters in a non
discriminatory manner and not to introduce any new measures that have the
effect of unduly obstructing trade.
                   JOINT DECLARATION ON PROTOCOL 4
The Community and Israel agree that working or processing carried out outside the
Parties shall be effected by means of outward processing or a similar system.
                                               Z-c&
 ---pagebreak---                                                                               }n^rhAgf^fti^1*r*tf
               DECLARATIONS BY THE EUROPEAN COMMUNITY
             DECLARATION BY THE EUROPEAN COMMUNITY ON
                      CUMULATION OF ORIGIN (ARTICLE 24)
 In line with political developments, if and when Israel and one or more other
 Mediterranean countries conclude Agreements to establish free trade among
themselves, the European Community is prepared to implement cumulation of
origin in its trade arrangements with those countries.
             DECLARATION BY THE EUROPEAN COMMUNITY ON
                ADAPTATION OF RULES OF ORIGIN (ARTICLE 24)
In the framework of the ongoing process of harmonisation of rules of origin
applicable between the Community and other third countries, the Community
may in future submit to the Cooperation Council the amendments to Protocol
4 that may be necessary.
      DECLARATION BY THE EUROPEAN COMMUNITY ON ARTICLE 25
The Community declares that, in the context of the interpretation of Article 25
paragraph 1, it will assess any practice contrary to that Article on the basis of
the criteria resulting from the rules contained in Articles 85, 86 and 92 of the
Treaty establishing the European Community, and, for products covered by
the Treaty establishing the European Coal and Steel Community, by those
contained in Articles 65 and 66 of that Treaty and the Community rules on
State aids, including secondary legislation.
As regards the agricultural products referred to in Title II Chapter 3, the
Cornmunity will assess any practice contrary to paragraph 1(i) of Article 25
according to the criteria established by the Community on the basis of Articles
42 and 43 of the Treaty establishing the European Community and in
particular those established in Council Regulation No. 26/62.
                                         Z^l^ _           21       c
 ---pagebreak--- Exchange of letters between the European Community (The Community") and Israel
concerning oustanding bilateral issues.
                                   A. Letter from the Community
Sir,
The Community and Israel note the agreement reached on implementing an acceptable
solution to all bilateral issues still outstanding concerning the application of the Cooperation
Agreement of 1975.
I should be obliged if you would corifirm that your Government is in agreement with the
contents of this letter.
Please accept, Sir, the assurance of my highest consideration.
                                             On behalf of the Council of the European Community
                                         B. Letter from Israel
Sir,
I have the honour to acknowledge receipt of your letter of today's date which reads as
follows:
"The Community and Israel note the agreement reached on implementing an acceptable
solution to all bilateral issues still outstanding concerning the application of              the
Cooperation Agreement of 1975.
I should be obliged rf.you would confirm that your Government is in agreement with the
contents of this letter.1"
I have the honour to confirm that my Government is in agreement with the contents of your
letter.
 Please accept, Sir, the assurance of my highest consideration.
                                                          For the Government of Israel
                                                  213
 ---pagebreak---  Exchange of letters between the European Community (The Community') and Israel
 relating to Article 1 of Protocol 1 and concerning imports into the Community of
 fresh cut flowers and flower buds falling within subheading 06.03.10 of the Common
 Customs Tariff
                                     A. Letter from the Community
 Sir,
 The following was agreed between the Community and Israel:
Article 1 of the Protocol 1 provides for the elimination of customs duties on imports into the
 Community of cut flowers and flower buds, fresh, falling within subheading 06.03.10 of the
Common Customs Tariff and originating in Israel, subject to a limit of 19,500 tonnes.
Israel undertakes to abide by the conditions laid down below for imports into the Community
of roses and carnations which qualify for the elimination of this tariff :
- the price level of imports into the Community must be at least equal to 85% of the
    Community price level for the same products over the same periods,
- the Israeli price level shall be determined by recording the             prices of the imported
    products, on representative Community import markets,
- the Community price level shall be based on the producer prices recorded on
    representative markets of the main producer Member States,
-   price levels will be recorded on a fortnightly basis and weighted by the respective
    quantities. This provision is valid for Community prices and for Israeli prices,
- for both Community producer prices and the import prices of Israeli products, a distinction
    shall be made between large-flowered and small-flowered roses and between unifloral
    and multifloral carnations,
-   if the Israeli price level for any one type of product is below 85% of the Community price
    level, the tariff preference shall be suspended. The Community shall reinstate the tariff
    preference when an Israeli price level equal to 85% or more of the Community price level
    is recorded.
Israel further undertakes to maintain the traditional breakdown of trade between roses and
carnations.
Should the Community market be disturbed by a change in this breakdown, the Community
reserves the right to determine the proportions in line with traditional trade patterns. In such
cases, an appropriate exchange of views could take place.
I should be obliged if you would confirm that your Government is in agreement with the
contents of this letter.
Please accept, Sir, the assurance of my highest consideration.
                                             On behalf of the Council of the European Community
                                                   214
 ---pagebreak---                                        B. Letter from the Israel
 Sir,
i have the honour to acknowledge receipt of your letter of today's date which reads as
follows:
"The following was igreed between the Community and Israel:
Article 1 of the Protocol 1 provides for the elimination of customs duties on imports into the
Community of cut fbwers and flower buds, fresh, falling within subheading 06.03.10 of the
Common Customs Tariff and originating in Israel, subject to a limit of 19,500 tonnes.
Israel undertakes to abide by the conditions laid down below for imports into the Community
of roses and camatbns which qualify for the elimination of this tariff :
-   the price level of imports into the Community must be at least equal to 85% of the
    Community price level for the same products over the same periodSi
-   the Israeli price level shall be determined by recording the         prices of the imported
    products, on representative Community import markets,
-   the Community price level shall be based on the producer prices recorded on
    representative markets of the main producer Member States,
-   price levels will be recorded on a fortnightly basis and weighted by the respective
    quantities. This provision is valid for Community prices and for Israeli prices,
-   for both Community producer prices and the import prices of Israeli products, a distinction
    shall be made between large-flowered and small-flowered roses and between unifloral
    and multifloral carnations,
-   rf the Israeli price level for any one type of product is below 85% of the Community price
    level, the tariff preference shall be suspended. The Community shall reinstate the tariff
    preference when an Israeli price level equal to 85% or more of the Community price level
    is recorded.
Israel further undertakes to maintain the traditional breakdown of trade between roses and
carnations.
Should the Community market be disturbed by a change in this breakdown, the Community
reserves therightto determine the proportions in line with traditional trade patterns. In such
cases, an appropriate exchange of views could take place".
I have the honour to confirm that my Government is in agreement with the contents of your
letter.
Please accept, Sir, the assurance of my highest consideration.
                                                        For the Government of Israel
                                                  215
 ---pagebreak---   Exchange of letters between the European Community (The Community') and Israel
  regarding the implementation of the Uruguay Round Agreements
                                   A. Letter from the Community
  Sir,
 The Agreement reached between the European Community and Israel does not contain any
 provisions regarding the new regime applied on the import of oranges into the Community.
 The Parties willcontinue negotiations on this matter in order to find a solution before the
 beginning of the marketing year 1995-96, i.e. 1st December. In this context, the Community
 has agreed that Israel will not be treated less favourably than other Mediterranean partners.
 By 1st December 1995, if an accord has not been reached regarding the entry price for
 oranges, the Community will take all necessary measures to guarantee to Israel an
 adequate and acceptable entry price for both Parties, which will enable the importation of
 200,000 tonnes of oranges from Israel, a figure which will imply a reduction of 30% from the
 actual tariff quota for oranges from Israel.
 In addition, the EC will adopt the appropriate measures to allow the import into the
Community of traditional Israeli non-Annex II processed agricultural products covered by
concessions in the new Agreement.
Similarly, if necessary, Israel will take parallel measures to ensure the import of traditional
Community exports of agricultural products for the 1995-96 season.
I should be grateful if you would kindly inform me whether the Government of Israel is in
agreement with the contents of this letter.
Accept, Sir, the assurance of my highest consideration.
                                           On behalf of the Council of the European Community
                                      B. Letter from the Israel
Sir,
I have the honour to acknowledge receipt of your letter of today's date which reads as
follows:
T h e Agreement reached between the European Community and Israel does not contain
any provisions regarding the new regime applied on the import of oranges into the
Community. The Parties will continue negotiations on this matter in ordeT to find a solution
before the beginning of the marketing year 1995-96, i.e. 1st December. In this context, the
Community has agreed that Israel will not be treated less favourably than other
Mediterranean partners.
                                                 216
 ---pagebreak--- By 1st December 1995, if an accord has not been reached regarding the entry price for
oranges, the Community will take all necessary measures to guarantee to Israel, an
adequate and acceptable entry price for both Parties, which will enable the importation of
200,000 tonnes of oranges from Israel, a figure which will imply a reduction of 30% from the
actual tariff quota for oranges from Israel.
In addition, the EC will adopt the appropriate measures to allow the import into the
Community of traditional Israeli non-Annex II processed agricultural products covered by
concessions in the new Agreement
Similarly, rf necessary, Israel will take parallel measures to ensure the import of traditional
Community exports of agricultural products for the 1995-96 season."
I have the honour to confirm that my Government is in agreement with the contents of your
letter.
Please accept, Sir, the assurance of my highest consideration.
                                                      For the Government of Israel
                                                217
 ---pagebreak---                                FINANCIAL STATEMENT
1. Budget line involved:
 Chapter 10: Levies and premiums. Appropriations: ECU 946.2 million
2. Title of operation:
New association Agreement with Israel (Protocol 1 on arrangements application to
imports into the Community of agricultural products originating in Israel).
3. Objective:
To take account of new agricultural concessions granted by the EU.
4. Financial impact:
                       Over 12 months        Current     financial Next financial year
                                             year (1995)            (1996)
Cost to EU budget                        -                       -                     -
Revenue (customs           ECU - 8 million                   p.m.        ECU - 8 million
duties)
5. Revenue estimate:
                1997                 1998                    1999                 2000
     ECU-8 million         ECU - 8 million        ECU - 8 million        ECU - 8 million
6. Method of calculation: see Annex.
Note:
The former concessions in force since 1976 have not been evaluated since no new
impact is involved.
                                         -^?
 ---pagebreak---  New trade Agreement between the European Union and l' el
 Estimate of budget impact of new agricultural concessions!
Product           Imports       Old  New     Reference Non-quota       Old        Rate      Unit    Old rate  New rate    Own resour- Potential own    Total
                EU 12(1994)    quota quota   quantity    rate          rate      applied   value    applied    applied     ces loss    resources gain                                   Remarks
                     t           t     t         t               ECU/t;ECU/hl;%            ECU/t    ECU/t      ECU/t         ECU           ECU         ECU
0207 22 10                   0                                               500                       500.00        0,00
0207 22 90                   0                                               548                       548,00        0,00
0207 42 21                   0                                               396                       396,00        0,00
0207 42 31                   0                                               275        93             275.00       93,00
0207 42 41                 73                                                997       339             997,00     339,00      -48.034
 0207 42 51                 10                                               375       127             375,00     127,00        -2.480                         New reduced-rate quota
 0207 42 59                  0                                               675       230             675,00     230,00                                       Level of trade currently very low
                           83          1.400                                 538       197             538,00     197,25      -50.514       276.150    225.636                         #NAME?
0207 31 10                233                                             2,50%     0,00%    28.674    716,85               -167.026                  -167.026 Amendment of duty applied in current trade
0601 10 10                   0                                           7,50%      0,00%
0601 10 20                510                                            7,50%      0,00%     2.247    168,53                 -85.950
0601 10 30                   0                                           7,50%      0,00%
0601 1040                    3                                           7,50%     0,00%      6.333    475,00                  -1.425
0601 1090                 153                                            7,50%     0,00%      4.608    345,59                 -52.875
0601 20 10                   0                                            1,70%    0.00%
0601 20 30                   0                                          14,10%     0,00%
060120 90                    4                                           9,40%     0,00%      4.250    399,50                  -1.598
0601                      670                                                                                               -141.849                  -141.849 Amendment of duty applied in current trade
0602 10 10                   0                                                     0,00%
06021090                  288                                            7,30%     0,00%    24.431   1.783,43               -513.628
0602 20 10                  0                                            2,50%     0,00%
r\£t\*% *\f\ AA
W U X 4.\J 7 V
                            g                                           12,20%     0,00%      8.000   976,00                   -5.856
0602 20 91                   0                                          12,20%     0,00%
0602 20 99                  0                                           12,20%     0,00%
0602 30 00                  0                                           12,20%     0,00%
0602 30 10                  0                                           12,20%     0,00%
0602 3090                   0                                           12,20%     0,00%
0602 40 10                  0                                           12.20%     0,00%
0602 4011                   0                                           12,20%     0.00%
0602 4019                   0                                           12,20%     0,00%
                                                                                             2-13
 ---pagebreak--- New trade Agreement between the European Union and I \e\
Estimate of budget impact of new agricultural concessions!
Product       Imports       Old     New     Reference Non-quota       Old       Rate     Unit    Old rate  New rate   Own resour- Potential own        Total
            EU 12(1994)    quota   quota    quantity    rate          rate     applied  value    applied   applied      ces loss     resources gain                                 Remarks
                 t           t       t          t               ECU/t;ECU/hl;%          ECU/t    ECU/t      ECU/t         ECU            ECU           ECU
0602 40 90             25                                               12,20%   0,00%    11.720  1.429,84                  -35.746
0602 9100               0                                               12,20%    0.00%
0602 99 10              0                                                        0.00%
0602 99 30              2                                              12,20%    0,00%     7.500    915,00                    -1.830
0602 99 41              0                                              12,20%    0,00%
0602 99 45             37                                              11,90%    0,00%     6.568    781.54                  -28.917
0602 99 49              3                                              12,20%    0,00%     6.667    813,33                    -2.440
0602 99 51             31                                              12,20%    0.00%     6.903    842.19                  -26.108
0602 99 59             81                                              12,20%    0,00%     7.148    872,07                  -70.638
0602 99 70            278                                              11,90%    0,00%     6.518    775.64                -215.628
0602 99 91              5                                              11,90%    0,00%     3.200    380.80                   -1.904
0602 99 99            491                                              11,90%    0.00%     3.817    454.19                -223.007
0602                1.247                                                                                              -1.125.702                   -1.125.702 Amendment of duty applied in current trade
0601,0602           1.917                                                                                              -1.267.550                   -1.267.550
0603 10 69         14.037            5.000                             15,60%    0.00%     4.221    658.45             -3.292.250                   -3.292.250 New zero-duty quota
0603 90 00             73              100                             18.30%    0.00%    10.014  1.832,51               -133.773                     -133.773 New zero-duty quota
0604 99 10            108                                                3,30%   0,00%     8.343    275,31                  -29.733                     -29.733 Amendment of duty applied in current trade
070190 51          24.578   19.040  20.000               14,10%          0,00%   0,00%       366                            -49.555                     -49.555 Increase in quota
0702 00 10          3.506                                                                    699   434,10
0702 00 15              0
0702 00 20              0
0702 00 25              0
0702 00 30              0
0702 00 35              0
0702 00 40              0
0702 0045               0
0702 00 50              0
0702 00 90            567                                                                   674    431,41
0702 00             4.073            1.000                                                         432,76        0,00    -432.755                    -432.755 Mew zero-duty quota
0704 90 90            915      540   1.000               14,50%         0,00%    0,00%      356                            -23.764                     -23.764 Increase in quota
                                                                                                           2      ZO
 ---pagebreak--- New trade Agreement between the European Union and T iel
Estimate of budget impact of new agricultural concessions!
Product       Imports       Old     New     Reference   Non-quota       Old       Rate     Unit     Old rate   New rate    Own resour- Potential own    Total
            EU 12 (1994)   quota   quota    quantity      rate          rate     applied  value     applied     applied     ces loss    resources gain                                    Remarks
                 t           t       t          t                 ECU/t;ECU/hl;%          ECU/t      ECU/t      ECU/t        ECU            ECU          ECU
0705 11 10               0
0705 1190              275                                                                      975
0705 11                275             300                                                                                                                        Extension of timetable but with no budgetary effect
0706 10 00           5.544   3.720   6.100                  9.84%          0.00%   0,00%        217                             -50.902                   -50.902 Increase in quota
0709 3000              556                        1.440                                      1.049                                                                Extension of timetable but with no budgetary effect
0709 60 10           3.211           8.900                                 8,70%    0,00%    1.144      99,52         0,00    -319.559                  -319.559 New zero-duty quota
0709 90 90             858           2.000                                15,50%   0,00%     5.423.    840,58         0,00   -721.218                   -721.218 New zero-duty quota
0805 10 11               0
0805 10 15           9.136
0805 10 19               4
0805 10 21              37
0805 10 25           3.152
0805 10 29               0
0805 10 31             842
0805 10 35           8.481
0805 10 39              84
0805 10 41               0
0805 10 49              50
0805 10 70              65
0805 10 90              96                                                                                                                                        Reduction in quota
0805 10             21.947 328.100 290.000                                                                0,00        0,00                                        Quota not filled - no budgetary effect
0805 20 10             683
0805 20 30              68
0805 20 50           1.953
0805 2070              534
0805 20 90           5.354                                                                                                                                        Increase in quota
0805 20              8.592  15.904  35.000                                                               0,00         0,00                                       Quota not filled - no budgetary effect
0805 30 90             113           1.000                               15,50%    0,00%     1.248     193,41         0,00     -21.855                   -21.855 New zero-duty quota
0806 10 29           1.796                        2.280                    0,00%   0,00%                 0,00         0,00                                       Extension of timetable but with no budgetary quota .
0810 90 80           2.450                                               10,60%    0,00%     1.175     124,52         0,00   -305.074                  -305.Û74J Amendment of duty applied in cunent trade
                                                                                                                   2 2 1
 ---pagebreak--- New trade Agreement between the European Union and                             ael
Estimate of budget impact of new agricultural concessions!
Product       Imports       Old    New      Reference  Non-quota       Old          Rate      Unit     Old rate    New rate    Own resour- Potential own   Total
            EU 12(1994)    quota   quota    quantity     rate          rate        applied   value     applied     applied      ces loss   resources gain                                 Remarks
                 t           t       t          t                ECU/t;ECU/hl;%              ECU/t     ECU/t        ECU/t        ECU           ECU         ECU
0812 90 20          8.930   6.608   10.000                15,50%          0.00%      0,00%         561     86,98         0,00     -40.394                   -40.394 Increase in quota
1602 31 11          1.928                                                                       2.436
1602 31 19            358                                                                       5.581                                                                       *
1602 3130              14                                                                       5.071
1602 3190              26                                                                       5.077
1602 31             2.326              300                               15,60%       8,50%     2.966     462,63      252,08      -63.165                   -63.165 New reduced-rate quota
2002 10 10          4.582    3.136   3.500                17,40%          0,00%      0,00%         509                            -22.574                   -22.574 Increase in quota
2004 90 99             27            1.000                              21,30%       0,00%      2.333     497,00         0,00     -13.419                   -13.419 New zero-duty quota
2008 30 99          2.788                        5.000                  22,20%       0,00%         992     44,05         0,00    -122.811                 -122.811 Amendment of duty applied in current trade
2008 40 71              0                                               23,20%       0,00%
2008 50 71             27                                               25,10% '     0,00%         556    139,44
2008 70 71              0                                               23,20%       0,00%
2008 99 61              4                                               23,80%       0,00%      1.000     238,00
                       31              100                                                                152,16         0,00       -4.717                   -4.717 New zero-duty quota
2008 92 50             11                                               20,20%       0.00%      1.545     312.18
2008 92 71              8                                               15,60%       0,00%      1.125     175,50
                       19              250                                                                254,63         0,00       -4.838                   -4.838 New zero-duty quota
2204 21 10              0                                                  38,70        0,00               38,70 •
2204 21 21              1                                                  15,90        0,00               15,90
2204 21 23              3                                                  15,90        0.00               15,90
2204 21 25            300                                                  15.90        0,00               15,90
2204 21 29            367                                                  15,90        0,00               15,90
2204 2131               2                                                  15,90        0,00               15,90
2204 21 33              1                                                  15,90        0,00               15.90
2204 21 35             10                                                  15,90        0,00               15,90
2204 2139              95                                                  15,90        0,00               15,90
2204 2141               0                                                  15,90        0,00               15,90
2204 2149              68                                                  15,90        0,00               15,90
2204 2151               0                                                  15,90        0,00               15,90
2204 21 59             15                                                  15,90        0,00               15,90             j
                                                                                                                         •2 2£
 ---pagebreak--- New trade Agreement between the European Union and Israel
Estimate of budget impact of new agricultural concessions!
Product       Imports       Old    New      Reference Non-quota       Old        Rate      Unit .Old rate   New rate   Own rcsour- Potential own   Total
            EU 12(1994)    quota   quota    quantity    rate          rate      applied   value  applied    applied      ces loss  resources gain                                Remarks
                 t           t       t          t               ECU/t;ECU/hl;%            ECU/t  ECU/t       ECU/t        ECU          ECU          ECU
2204 21 90              0                                                 17,90      0,00             17,90
2204 21               862            1.610                                                           15.90        0,00     -13.706                   -13.706 New zero-duty quota
Total                                                                                                                   -8.418.703 .     276.150 -8.142.553
                                                                                                 zzi
 ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---                                                                     ISSN 0254-1475
                                                             COM(95) 618 final
                                              DOCUMENTS
EN                                                                             U
                                     Catalogue number : CB-CO-95-667-EN-C
                                                              ISBN 92-77-97259-9
Office for Official Publications of the European Communities
L-2985 Luxembourg