CELEX: 51990PC0387(01)
Language: en
Date: 1991-02-14
Title: DRAFT COUNCIL DECISION ON THE ASSOCIATION OF THE OVERSEAS COUNTRIES AND TERRITORIES WITH THE EUROPEAN ECONOMIC COMMUNITY

m ^ I                             Co^fficiaiJournal of the European Cornrr^unities                    l^oC^BI
                                                           1^
                                             CC^lvIISSIC^
      Proposal foraCouncil Decision on the association of the overseas countries and territories with
                                        the European Economic Connnunity
      I^art n     Ceneral provisions of ^CC^CT^cooperation                                          ^
      I^art^:     The areas of ^CCOCTcooperation                                                    D
      Title I:    environment                                                                      D
      Title II:   Agricultural cooperation, food security and rural development                    B^
      Title III:  Uevelopment of fisheries                                                         10
      Title IV:   Cooperation in the field of commodities                                          It
      TitleV:     Industrial development, manufacturing and processing                             t^
      Title VI:   Mining development                                                               t^
      Title VII: energy development                                                               ID
      Title VIII: enterprise development                                                           t^
      Title IX:   development of services                                                          t^
      Chaptert:COhiectives and principles of cooperation                                           t^
      Chapters: Services that support economic development                                         1^
      Chapter ^:Tourism                                                                            ^0
      Chapter^:T^ransport, communications and informatics                                          ^t
      Title X:    Trade development                                                                 ^
      Title XI:   Cultural and social cooperation                                                   ^
      Title XII: regional cooperation                                                               ^
      I^art^:     The instruments of ^CCOCTcooperation                                              ^
      Title I:    Trade cooperation                                                                 ^
      Chaptert:Ceneral trade arrangements                                                           ^
      Chapters: Special undertakings on r^n                                                         ^
      Chapter ^:Trade in services                                                                   ^
      Title II:   Cooperation in the field of commodities                                         ^0
      Chaptert:Stahilization of export earnings from agricultural commodities                     ^0
      Chapters: fining products: special financing facility ^Sysmin^                                ^
 ---pagebreak--- l^oCh^B^                              C^ffici^]ourn^ofu^eEurooe^nCor^r^u^iue^                  in^t.^I
         Title III: Uevelopment finance cooperation                                          ^
         Chaptert:General provisions                                                         ^
         ^ectiont: Objectives                                                                ^
         ^ection^: principles                                                                ^
         ^ection^: Guidelines                                                                ^
         ^ection^t: ^cope of financing                                                       ^
         ^ection^: sectors of intervention                                                   ^
         section D: ^ligihilit^ for financing                                              ^0
         Chapters: financial cooperation                                                   ^0
         section!: financial resources                                                     ^0
         section ^: Terms and conditions of financing                                      ^t
         ^ection^: Co-financing                                                              ^
         section ^A ^ticroprojects                                                           ^
         ^ection^: ^mergenc^ assistance                                                      ^
         Chapters: Investment                                                                ^
         section!: Investment promotion                                                      ^
         ^ection^: Investment financing                                                    ^D
         ^ection^: Investment support                                                      ^D
         ^ection^t: Current payments and capital movements                                   ^
         Chapter^t:Technical cooperation                                                     ^
         Chapters: Implementation procedures                                               ^0
         ^ectiont: programming                                                              ^0
         section ^: project identifications preparation and appraisal                       ^t
         ^ection^: financing proposal and decision                                           ^
         ^ection^: financing agreement and cost overruns                                     ^
         ^e^tion^: Competition and preferences                                               ^
         section D: Tax and customs arrangements                                             ^
         Chapters: management and executing agents                                           ^
         section!: Chief authorizing officer                                                 ^
         section ^: I^ocal authorizing officer                                               ^
         section ^: The delegate                                                            ^0
         ^ection^: I^avments and pacing agents                                             Dt
         ^ection^: monitoring and evaluation                                               D^
         Title IV:   General provisions for the least-developed OCT                          ^
         I^art ^:    provisions relating to establishment and services                     D^
         I^art ^:    CommissionB^temher^tateBOCTpartnership                                  ^
         I^artD:     I^inal provisions                                                     D^
         Annexl — List of the OCT referred to in Articled                                    ^
         AnnexII^-Concemingthedefinitionoftheconcept of'originating products' andmethodsof
         administrative cooperation                                                          ^
         Annex III — On safeguard measures                                                 ntt
         Annex IV — On rum                                                                  t^
         AnnexV — On movements of hazardous waste and radioactive waste                    t^t
         Annex VI — Commission declaration on Articled                                      t^
 ---pagebreak--- 11.4.91                               Official Journal of the European Communities                               No C 95/3
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                        Whereas special provisions should be adopted for rum,
                                                                arrack and tafia;
Having regard to the Treaty establishing the European
Economic Community, and in particular Article 136               Whereas this Decision in no way prejudices the special
thereof,                                                        arrangements established for the import of products
                                                                originating in the O C T into Spain and Portugal set out
                                                                in the Annex to Decision 86/47/EEC ( l ), as last
Having regard to the internal Agreement on the                  amended by Decision 9 0 / . . ./EEC (2);
financing and administration of Community aid signed
in Brussels on         1990 (hereinafter referred to as 'the
Internal Agreement'),
                                                                Whereas the Community's contribution towards solving
                                                                the economic and social problems of the O C T and the
Having regard to the draft Decision presented by the            ACP States encourages it to strengthen relations between
Commission,                                                     the O C T and the ACP States in various areas of
                                                                cooperation;
Having regard       to  the   opinion   of   the  European
Parliament,                                                     Whereas some O C T are in the same geographical area
                                                                as overseas departments and ACP States; whereas the
                                                                development of different parts of the same geographical
Whereas the provisions applicable to the association of         area, which have similar features and are subject to
the overseas countries and territories (hereinafter             similar constraints, can be achieved notably through the
referred to as 'the OCT') with the European Economic            implementation of joint regional projects, whatever the
Community must be laid down for a further period;                status of the entities under Community law, so
whereas these provisions apply to the territories for           permitting economies of scale and strengthening regional
which the French Republic has responsibility, the               cooperation between the partners concerned; whereas
countries and territories for which the United Kingdom          the Community has already created the instruments,
has responsibility, the countries for which the Kingdom         notably financial instruments, to implement this
of the Netherlands has responsibility and, in part, to          cooperation, in the case of the overseas departments by
Greenland;                                                       means of Regulation (EEC) No 2052/88 (3) on the tasks
                                                                 of the Structural Funds and the operations of the
                                                                 European Investment Bank (hereinafter referred to as
Whereas these provisions form part of the European               'the    Bank')          subsequent    texts and   Decision
Economic Community's efforts to contribute towards               89/687/EEC (4) establishing a 'Poseidom', and, in the
international cooperation and to the solution of interna-        case of the ACP States, by means of the Convention and
tional problems of an economic, social and cultural             the Internal Agreement;
nature, in conformity with the aspirations of the interna-
tional community towards the establishment of a new,
more just and more balanced economic order; whereas
                                                                Whereas these neighbouring entities are traditionally
these efforts have led to the signing of the fourth
                                                                confronted with similar problems, regardless of their
ACP-EEC Convention in Lome on 15 December 1989,
                                                                 differences in status; whereas regional cooperation
hereinafter referred to as 'the Convention'; whereas, in
                                                                tailored to local conditions requires more direct dialogue
view of the many similarities between the O C T and
                                                                between the parties concerned; whereas encouragement
many of the ACP States, and while respecting their
                                                                 should therefore be given to regional consultation
differing status, the provisions for the O C T should be
                                                                procedures between overseas departments, O C T and
adopted for the same period as for the ACP States;
                                                                 ACP States, in close liaison with the Member States
                                                                 concerned in the case of overseas departments and the
                                                                 OCT;
Whereas the Community market has long been open to
products originating in the O C T and in the ACP States;
whereas these provisions should be maintained, no
significant circumstance having arisen that warrants            Whereas, during the negotiations on the Convention, the
abandonment of this approach, and the O C T should be            Community improved a number of the provisions
accorded greater flexibility as to the rules of origin;          concerning areas and instruments of cooperation with
                                                                 the ACP States; whereas provisions for the O C T should
                                                                 be improved on the same lines;
Whereas the OCT's development requirements and the
promotion of their industrial development justify their
retaining the possibility of levying customs duties and
imposing quantitative restrictions and adopting, by way          (*) OJ No  L 63, 5. 3. 1986, p. 95.
of derogation, legislation to assist the local population        O   OJ No  L . . . . . . . . p. . . .
and local activities with a view to promoting or main-           (J) OJ No  L 185, 15. 7. 1988, p. 9.
taining local employment;                                        (4) OJ No  L 399, 30. 12. 1989, p. 39.
 ---pagebreak--- No C 95/4                             Official Journal of the European Communities                                11.4.91
Whereas, in order to facilitate the implementation of this      the Commission, the Member State and the country or
Decision in the future and to ensure that financial aid is      territory meets this double objective;
distributed as fairly as possible, aid should be allocated
among the territories for which the French Republic has         Whereas various regulations adopted with a view to the
responsibility, the countries for which the Kingdom of          completion of the single market are not applicable in the
the Netherlands has responsibility and the countries and        OCT but it may be advisable to examine ways of
territories for which the United Kingdom has responsi-          partially or totally extending them to the OCT, notably
bility; whereas lessons should be drawn from past               in the partnership framework;
experience and the programming and implementation
procedures of development finance cooperation speeded
up as much as possible;                                         Whereas Article 362 of the Convention makes provision
                                                                for a country or territory referred to in Part Four of the
                                                                Treaty that becomes independent to accede to the
Whereas there is general recognition of the active              Convention; whereas it is therefore necessary to make
participation of local authorities of both the Community        provision for possible amendment of this Decision;
regions and of non-member countries in the implemen-            whereas Article 1 of the Internal Agreement provides
tation of common policies br in relations with the              that where a country or territory which has become
Community; whereas the association with the OCT has             independent accedes to the Convention, the financial aid
no provision for such participation, apart from the             allocated to the OCT from the European Development
implementation of development finance cooperation in            Fund shall, by decision of the Council, be reduced and
some OCT or in a more general way in others; whereas            the amounts allocated to the ACP States correspondingly
the participation of elected representatives of the popu-       increased,
lation concerned should be stepped up, while respecting
the constitutions of the Member States responsible for
the OCT; whereas the principle of partnership between           HAS DECIDED AS FOLLOWS:
                                                          PART 1
                               GENERAL PROVISIONS OF EEC-OCT COOPERATION
                         Chapter 1                                                        Article 3
                                                                Cooperation shall be directed towards development
          Objectives and principles of cooperation              centred on man, the main protagonist and beneficiary of
                                                                development, which thus entails respect for and
                                                                promotion of all human rights. Cooperation operations
                          Article 1                             shall thus be conceived in accordance with the positive
                                                                approach, where respect for human rights is recognized
The aim of this Decision is to promote and accelerate           as a basic factor of real development and where
the economic, cultural and social development and to            cooperation is conceived as a contribution to the
strengthen the economic structures of the OCT listed in         promotion of these rights.
Annex I.
                          Article 2                             The role and potential of initiatives taken by individuals
                                                                and groups shall also be recognized and fostered in
The Community shall provide support for the OCFs                order to achieve in practice real participation of the
efforts to achieve comprehensive development based on           population in the development process.
their cultural and social values, their human capacities,
their natural resources and their economic potential in
order to promote the OCFs social, cultural and
economic progress and the well-being of their popu-
lations through the satisfaction of their basic needs, the                                Article 4
recognition of the role of women and the enhancement
of people's capacities, with respect for their dignity.         The Community and the OCT shall give special
                                                                importance and high priority to regional cooperation and
                                                                integration. In this context, the Community shall offer
                                                                effective support for the OCT's efforts to organize them-
Such development       shall be based on a sustainable          selves into regional groupings and to step up their
balance between      economic objectives, the rational          cooperation at regional and inter-regional level with a
management of the    environment and the enhancement of         view to promoting a more just and more balanced inter-
natural and human     resources.                                national economic order.
 ---pagebreak--- 11. 4. 91                              Official Journal of the European Communities                              No C 95/5
                          Article 5                              they correspond with the priorities, guidelines and devel-
                                                                 opment methods adopted by the relevant authorities of
The Community acknowledges the need to accord                    the OCT concerned. In this framework, cooperation
special treatment to the least-developed OCT and to              shall support either the independent activities of OCT
take account of the specific difficulties confronting them.      parties or the activities of OCT parties which are
It shall pay special attention to improving the living           combined with support from similar parties from the
conditions of the poorest sections of the population.            Community which make their capabilities, experience,
                                                                 technological and organizational capacities or financial
Cooperation shall comprise, inter alia, special treatment        resources available to them.
when determining the volume of financial resources and
the conditions attached thereto in order to enable the
least-developed OCT to overcome structural and other             Cooperation shall encourage parties from the OCT and
obstacles to their development.                                  the Community to provide supplementary financial and
                                                                 technical resources for the development effort.
                                                                 Cooperation may provide decentralized cooperation
                          Article 6                              operations with financial and/or technical support drawn
                                                                 from the resources provided for in this Decision under
Within the scope of their respective responsibilities, the       the conditions laid down in Article 9.
authorities participating in the partnership framework
referred to in Article 10 shall examine periodically the
results of the implementation thereof and provide any            This form of cooperation shall be organized in
necessary impetus and opinions for the attainment of its         accordance with the role and the prerogatives of the
objectives.                                                      public authorities of the OCT.
Any questions that might directly hamper the effective
attainment of the objectives of this Decision may be                                       Article 9
raised in the context of this procedure.                         Decentralized cooperation operations may be supported
                                                                 through the instruments of development finance
                                                                 cooperation, with the approval of the relevant authorities
                        Chapter 2                                of the OCT concerned, preferably from the
                                                                 programming stage, of the principle of and the
        Decentralized cooperation and partnership                conditions for providing support for this form of
                                                                  cooperation. Such support shall be provided to the extent
                                                                 to which it is necessary for the successful implementation
                          Article 7                              of the proposed operations provided the usefulness of the
                                                                 latter has been recognized and in accordance with the
In order to encourage all parties from the OCT and the           provisions for financial and technical cooperation.
Community which are in a position to contribute to the           Projects under this form of cooperation may be linked,
autonomous development of the OCT to put forward                 or not, with programmes in the focal sectors of the indi-
and implement initiatives, cooperation shall also support,       cative programmes, with priority for those linked to the
within limits laid down by the relevant OCT authorities,         focal sectors.
development operations put forward by economic, social
and cultural organizations in the framework of decen-
tralized cooperation, in particular where they combine
the efforts and resources of organizations from the OCT                                   Article 10
and their counterparts from the Community. This form             With the aim of enabling the competent local authorities
of cooperation shall be aimed in particular at making the         of the OCT to take greater part, in the framework of the
capabilities, original operating methods and resources of         respective constitutions of the Member States having
such parties available to the development of the OCT.             responsibility for them, in giving effect to the principles
                                                                  of the EEC-OCT association, while respecting the
The parties referred to in this Article are decentralized         powers of the respective central authorities of the
public authorities, rural and village groupings, cooper-          Member States concerned, a consultation procedure
atives, firms, trade unions, teaching and research centres,       based on the principle of partnership between the
non-governmental development organizations, various               Commission, the Member State and the OCT is hereby
associations and all groups and parties which are able            set up.
and wish to make their own spontaneous and original
contribution to the development of OCT.
                                                                 This partnership, the detailed provisions for which are
                                                                 set out in Articles 234 to 236 of this Decision, shall
                          Article 8                              provide the opportunity for examining what has been
                                                                 achieved in the association and discussing any problems
Cooperation shall encourage and support the initiatives           arising in relations between the OCT and the
of the OCT parties referred to in Article 7, provided             Community.
 ---pagebreak--- No C 95/6                              Official Journal oi the European Communities                                 11.4.91
                                                           PART 2
                                     THE AREAS OF EEC-OCT COOPERATION
                          TITLE I                                                          Article 14
                                                                 Cooperation instruments appropriate to environmental
                      ENVIRONMENT                                needs shall be designed and implemented.
                         Article 11                              Where necessary, both qualitative and quantitative
In the framework of this Decision, the protection and            criteria may be used. Jointly approved check-lists,
the enhancement of the environment and natural                    adopted, where appropriate, in the course of the part-
resources, the halting of the deterioration of land and          nership consultations provided for in Articles 234 to 236,
forests, the restoration of ecological balances, the preser-     shall be used to help estimate the environmental viability
vation of natural resources and their rational exploitation      of proposed operations, whatever their scale. Environ-
are basic objectives that the OCT concerned shall strive          mental impact assessment shall be carried out as appro-
to achieve with Community support with a view to                 priate in the case of large-scale projects and those posing
bringing an immediate improvement in the living                   a significant threat to the environment and should, as a
conditions of their populations and to safeguarding those         minimum:
of future generations.
                                                                      describe the measures planned to avoid or reduce any
                                                                      major adverse consequences and, where possible, to
                         Article 12                                   remedy any such consequences,
The dimension of the environmental problem and of the
means to be deployed mean that operations will have to                provide the necessary information for identifying and
be. carried out in the context of overall, long-term                  evaluating the main effects the project is likely to
policies, drawn up and implemented by the relevant                    have on the environment.
authorities of the OCT concerned at local, national,
regional or international level with international support.
                                                                  For the proper integration of environmental consider-
                                                                  ations, physical inventories, where possible translated
To this end, the Community shall give priority to:                into accounting terms, shall be drawn up.
    a preventive approach aimed at avoiding harmful
    effects on the environment as a result of any                 The implementation of these instruments has to ensure
    programme or operation,                                       that, should an adverse environmental impact be
                                                                  foreseen, the necessary corrective measures are
                                                                  formulated in the early stage of the preparation of the
    a systematic approach that will ensure ecological             proposed project or programme so that it can go ahead
    viability at all stages, from identification to               in accordance with the planned timetable, though
    implementation,                                               improved in terms of environmental and natural resource
                                                                  protection.
    a trans-sectoral approach that takes into account not
    only the direct but also the indirect consequences of                                  Article 15
    the operations undertaken.
                                                                  The Community, desirous of bringing real protection
                                                                  and effective management to the environment and
                                                                  natural resources, considers that the areas of EEC-OCT
                          Article 13
                                                                  cooperation covered in this part of this Decision must be
The protection of the environment and natural resources           systematically examined and appraised in this light.
requires a comprehensive approach embracing the social
and cultural dimensions.
                                                                  In this spirit the Community shall support efforts made
                                                                  by the relevant OCT authorities at local, national,
In order to ensure that this specific dimension shall be          regional and international level and also operations
taken into account, attention shall be given to incor-            mounted by intergovernmental and non-governmental
porating suitable educational, training, information and          organizations in furtherance of local, national and inter-
research schemes in projects and programmes.                      governmental policies and priorities.
 ---pagebreak--- 11.4.91                              Official Journal of the European Communities                               No C 95/7
                         Article 16                                                      Article 18
1. The Community undertakes, for its part, to make             The Community and the relevant authorities of the OCT
every effort to ensure that international movements of         recognize the value of exchanging views, using consul-
hazardous waste and radioactive waste are generally            tation machinery provided for in this Decision, on major
controlled, and emphasizes the importance of efficient         ecological hazards, whether on a planetary scale (such as
international cooperation in this area.                        the greenhouse effect, the deterioration of the ozone
                                                               layer, tropical forests, and so on), or of a more specific
                                                               scope resulting from the application of industrial tech-
With this in view, the Community shall prohibit all direct     nology. Such consultations may be requested by the
or indirect export of such waste to the OCT while at the       Commission, a Member State or the relevant authorities
same time the relevant authorities of the OCT shall            of an overseas country or territory, in so far as these
prohibit the direct or indirect import into their territory     hazards may in practice affect a country or territory, and
of such waste from the Community or from any other             shall be aimed at assessing the scope for joint action to
country, without prejudice to specific international           be undertaken within the terms of this Decision. If
undertakings concerning these two areas that have been         necessary, the consultations will also provide for an
made or may be made in future in the competent inter-          exchange of views prior to discussions conducted on
national forums.                                               these subjects in the appropriate international forums.
These provisions shall not prevent a Member State to
which an overseas country or territory has chosen to                                      TITLE II
export waste for processing from returning the processed
waste to the overseas country or territory of origin.          AGRICULTURAL COOPERATION, FOOD SECURITY
                                                                              AND RURAL DEVELOPMENT
The Community and, where necessary, the relevant
authorities of the OCT, shall expedite adoption of the
necessary internal legislation and administrative regu-                                  Article 19
lations to implement this undertaking.
                                                                Cooperation in the agricultural and rural sector, that is
                                                                arable farming, livestock production, fisheries and
                                                                forestry, shall be aimed, inter alia, at:
2. The relevant authorities of the OCT undertake to
monitor strictly the implementation of the prohibition
measures referred to in the second subparagraph of                  continuously and systematically promoting viable and
paragraph 1.                                                        sustainable development based in particular on
                                                                    protection of the environment and the rational
                                                                    management of natural resources,
3. The term 'hazardous waste* within the meaning of
this Article shall -cover categories of products listed in
Annexes 1 and 2 to the Basle Convention or the Control              supporting the OCT's efforts to increase their degree
of Transboundary Movements of Hazardous Wastes and                  of self-sufficiency in food, in particular by streng-
their Disponal.                                                     thening their capacity to provide their populations
                                                                    with food of adequate quantity and quality and to
                                                                    ensure a satisfactory level of nutrition,
As regards radioactive waste, the applicable definitions
and thresholds shall be those which will be laid down in
the framework of the IAEA. In the meantime, the said                reinforcing food security at local, regional and inter-
definitions and thresholds shall be those specified in              regional level by stimulating regional trade flows of
Annex V.                                                            food products and improving coordination of the
                                                                    food policies of the countries concerned,
                         Article 17
                                                                    guaranteeing the rural population incomes that will
At the request of the relevant authorities of the OCT,              significantly improve their standard of living, in order
the Community shall provide available technical infor-              to be able to cover their essential needs in the areas
mation on pesticides and other chemical products with a             of food, education, health and living conditions,
view to helping the OCT develop or reinforce a suitable
and safe use of these products.
                                                                    encouraging the active participation of the rural
                                                                    population, both men and women, in their own
Where necessary and in accordance with the provisions               development by organizing small farmers into associ-
for development finance cooperation, technical assistance           ations and integrating producers, men and women,
can be given in order to ensure conditions of safety at all         more effectively into national and international
stages, from production to disposal of such products.               economic activity,
 ---pagebreak--- No C 95/8                              Official Journal of the European Communities                                   11. 4. 91
— increasing the participation of women in their                                           Article 21
    capacity as producers, notably by improving access to
    all factors of production (land, inputs, credit,              1. Development of production calls for a rational
    extension services and training),                            stepping-up of animal and crop production and involves:
— creating satisfactory living conditions and a satis-           — improving farming methods for rain-fed crops while
    factory life style in the rural environment, notably by          conserving soil fertility,
    developing social and cultural activities,
                                                                 — developing irrigated crops, inter alia, through
— improving rural productivity, notably by transfers of              different types of agricultural water schemes (village
    appropriate technology and the rational exploitation             water engineering, regulation of watercourses and
    of plant and animal resources,                                   soil improvement) ensuring optimum use and thrifty
                                                                     management of water which can be mastered by
                                                                     farmers and by local communities; operations shall
— reducing post-harvest losses,                                      also consist in the rehabilitation of existing schemes;
— reducing the workload of women by, inter alia,                 — improving and modernizing cultivation techniques
    promoting suitable post-harvest and food-processing              and making better use of factors of production
    technologies,                                                    (improved varieties and breeds, agricultural
                                                                     equipment, fertilizers, plant treatment preparations),
— diversifying job-creating rural activities            and
    expanding activities that back up production,
                                                                  — in the sphere of livestock farming, improving animal
                                                                     feed (more effective management of pasture,
— improving production by on-the-spot processing of                  increased fodder production, more new water-points
    the products of arable and livestock farming, fisheries          and repair of existing ones) and animal health,
    and forestry,                                                    including the development of the infrastructure
                                                                     required for that purpose,
— ensuring a better balance between food crops and
    export crops,                                                 — better integration of arable and livestock farming,
— developing and strengthening agricultural research              — in the sphere of fisheries, modernizing fish-farming
    tailored to the natural and human environment of the             and developing aquaculture.
    country and the region and meeting extension service
     and food security requirements,
                                                                  2. Other prerequisites         for   the  development      of
— in the context of the above objectives, protecting the          production are:
     natural environment particularly through specific
     operations to protect and conserve ecosystems.
                                                                  — the extension of secondary and tertiary back-up acti-
                                                                     vities for agriculture, such as the manufacture,
                           Article 20                                 modernization and promotion of agricultural and
                                                                      rural equipment and other inputs and, where
1. Operations to attain the objectives referred to in                 necessary, their importation,
Article 19 shall be as varied and practical as possible, at
local, regional and inter-regional level.
                                                                  — the establishment or consolidation of agricultural
                                                                      savings and credit facilities adapted to local
2. They shall be designed and deployed to implement                   conditions in order to promote access to production
the policies and strategies established by the relevant               factors for farmers,
authorities of the OCT and respect their priorities.
                                                                  — the encouragement of all policies and incentives for
3. Support shall be provided for such policies and                    producers which are appropriate to local conditions
strategies in the context of agricultural cooperation in             with a view to greater productivity and to improving
accordance with the provisions of this Decision.                      farmers' incomes.
 ---pagebreak--- 11.4.91                             Official Journal of the European Communities                                No C 95/9
                         Article 22                                                      Article 24
In order to ensure a return on output, agricultural           Cooperation in agronomic and agrotechnical research
cooperation shall contribute to:                              shall contribute:
                                                              — to the development, in the OCT, of local and
— adequate means of preservation and suitable storage              regional research capacities suited to the local
   facilities for producers,                                       natural, social and economic conditions of crop and
                                                                   animal production,
— effective control of disease, pests and other factors
   causing production losses,                                 — in particular, to improving varieties and breeds, the
                                                                   nutritional quality of products and their packaging,
                                                                   and developing technology and processes accessible
— basic marketing arrangements underpinned by                      to the producers,
   suitable organization of producers, with the.
   necessary material and financial resources, and by         — to better dissemination of the results of research
   adequate means of communication,                                undertaken in an overseas country or territory, an
                                                                   ACP or non-ACP State and applicable in other OCT
— flexible operation of marketing channels, taking                 or other ACP States,
   account of every form of public or private initiative,
   to enable local markets, areas of the country with         — to extension work in order to inform the greatest
   shortfalls and urban markets to be supplied, in order           possible number of users of the results of such
   to cut down dependence on outside sources,                      research,
                                                              — to promoting increased coordination of research,
— facilities to prevent breaks in supplies (security
                                                                   particularly at regional and international levels and
   storage) and guard against erratic price fluctuations
                                                                   implementing appropriate operations to achieve these
   (intervention storage),
                                                                   objectives.
— processing, packaging and marketing of products,
   particularly by developing artisanal and agro-                                        Article 25
   industrial units, in order to adapt them to the trend      Agricultural cooperation schemes shall be carried out in
   of the market.                                              accordance with the detailed provisions and procedures
                                                               laid down for development finance cooperation and in
                                                               this context they may also cover the following:
                         Article 23
Rural promotion measures shall involve:                        1. under the heading of technical cooperation:
                                                                   — exchange of information between the Community,
— the organization of producers within associations or                 the OCT and the ACP States and between the
   communities in order to enable them to derive more                  OCT and the ACP States (on, for example, water
   benefit from joint contracts and investment and                     use, intensive production techniques and the
   jointly owned equipment,                                            results of research),
— encouragement for the participation of women and                 — exchange of experience between professionals
   for recognition of the active role they play as full                working in such areas as credit and savings,
   partners in the rural production and economic devel-                cooperatives, mutual insurance, artisanal activities
   opment processes,                                                   and small-scale industry in rural areas;
— the development of social and cultural activities (such      2. under the heading of financial cooperation:
   as health, education and culture) essential for
    improving rural life styles,                                   — supply of factors of production,
— suitable extension service to train all farmers, both            — support for market regulation bodies, on the basis
                                                                       of a coordinated approach to production and
   men and women,
                                                                       marketing problems,
— improvements in the training of instructors at all               — participation in the constitution of funds for agri-
   levels.                                                             cultural credit facilities,
 ---pagebreak--- No C 95/10                             Official Journal of the European Communities                                 11.4.91
   — opening of credit lines for farmers, farmers' trade         strategies established by the relevant authorities to
       organizations, artisans, women's groupings and            strengthen their food self-sufficiency and food security.
       small-scale industrial operators in rural areas,          In this context, cooperation shall bear in particular on
       geared to their activities (such as supplies, primary     the productive sectors (including the supply of physical,
       marketing and storage), and also for associations         technical and financial inputs), transport, marketing,
       implementing campaigns on specific themes,                packaging and the setting-up of storage infrastructure.
   — support for measures to combine industrial and                                       Article 29
       trade skills in the OCT and the Community within
       artisanal or industrial units, for the manufacture        At the request of their relevant authorities, the OCT may
       of inputs and equipment and for such purposes as          be eligible for the services of the Technical Centre for
       the maintenance, packaging, storage, transport            Agricultural and Rural Cooperation, the objectives and
       and processing of products.                               tasks of which are described in Article 53 of the
                                                                 Convention.
                          Article 26                             Any costs resulting from services provided by the Centre
 1. Community measures aimed at food security in the             for the benefit of the OCT which make use of them shall
OCT shall be conducted in the context of the food                be financed from the funds provided for in Article 154
strategies or policies of the relevant authorities of the        for whichever of the three groups those OCT belong to.
OCT concerned and of the development objectives
which they lay down.
                                                                                          TITLE III
They shall be implemented, in coordination with the
instruments of this Decision, in the framework of                              DEVELOPMENT OF FISHERIES
Community policies and the measures resulting
therefrom with due regard for the Community's interna-
tional commitments.                                                                       Article 30
                                                                 To encourage the development of the exploitation of the
                                                                 fishery resources of the OCT, all the mechanisms for
2. In this context, multiannual indicative programming           assistance and cooperation provided for in this Decision,
may be carried out with the relevant authorities of the          notably financial and technical assistance in accordance
OCT which so wish, so that their food supplies can be            with the terms set out in Title III of Part 3, shall be
better predicted.                                                applied to fisheries.
                          Article 27                             The priority objectives of such cooperation shall be to:
With regard to available agricultural products, the
Community undertakes to ensure that export refunds can           — improve knowledge of the fisheries environment and
be fixed further in advance for all OCT in respect of a              its resources,
range of products drawn up in the light of their food
requirements.
                                                                 — increase the means of protecting fishery resources
                                                                     and monitoring their rational exploitation,
Advance fixing may be for one year and shall be applied
each year for the duration of this Decision, it being
                                                                 — encourage the rational exploitation of the fishery
understood that the level of the refund will be
                                                                     resources of the OCT and the resources of high seas
determined in accordance with the methods normally
                                                                     in which the OCT and the Community share
followed by the Commission.                                          interests,
                          Article 28                             — increase the contribution of fisheries including aqua-
                                                                     culture and non-industrial fishing, to rural devel-
In implementing the provisions of this Title, special                opment, by giving importance to the role they play in
attention shall be paid to assisting and enabling the least-         strengthening food security, improving nutrition and
developed OCT to utilize them fully. At the request of               the social and economic conditions of the
the relevant authorities of the OCT concerned,                       communities concerned; this implies, inter alia, a
particular attention shall be paid to the specific diffi-            recognition of and support for women's work at the
culties of these OCT in carrying out the policies or                 post-harvest stage and in the marketing of fish,
 ---pagebreak--- 11.4.91                               Official Journal of the European Communities                              No C 95/11
— increase the contribution of fisheries to industrial                                      TITLE IV
    development 1>y increasing catches, output,
    processing and exports.                                         COOPERATION IN THE FIELD OF COMMODITIES
                                                                                            Article 34
                         Article 31                              Cooperation with the OCT in the field of commodities
                                                                shall take into account:
Assistance from the Community for fisheries devel-
opment shall include support in the following areas:
                                                                — the fact that the economies of a large number of
                                                                      OCT are highly dependent on their exports of
                                                                      primary products,
(a) fisheries production, including the acquisition of
    boats, equipment and gear, the development of infra-        — the deteriorating situation of their exports in most
    structure for rural fishing communities and the                   cases, mainly as a result of the downward trend in
    fishing industry and support for aquaculture projects,           world prices,
    notably by providing specific lines of credit to appro-
    priate OCT institutions for onlending to the                — the structural nature of the difficulties in many
    operators concerned;                                              commodity sectors both within the economies of the
                                                                      OCT and at international level.
(b) fisheries management and protection, including the                                      Article 35
    assessment of fish stocks and of aquacultural
    potential, the improvement of environmental moni-           The main objectives of cooperation in the field of
    toring and control and the development of the                commodities are:
     capacity of the relevant authorities of the OCT to
     manage rationally the fishery resources in the             — diversification, both horizontal and vertical, of the
     exclusive economic zones of the OCT;                             OCT economies, in particular through the devel-
                                                                      opment of processing, marketing, distribution and
                                                                      transport (PMDT), and
(c) processing and marketing of fishery products,               — improvement of the competitiveness of OCT
     including the development of processing, collection,             commodities on world markets through the reorgan-
     distribution and marketing facilities and operations;            ization and rationalization of their production,
     the reduction of post-harvest losses and the                     marketing and distribution activities.
     promotion of programmes to improve fish utilization
     and nutrition from fishery products;
                                                                 All appropriate means should be deployed to enable
                                                                 them to go as far as possible in the attainment of these
                                                                 objectives; to that end coordinated use should be made
(d) the training of OCT nationals in all areas of                of the range of instruments and resources of this
     fisheries, the development and strengthening of OCT         Decision.
     research capabilities and the promotion of regional
     cooperation in fisheries management and devel-
     opment.                                                                                Article 36
                                                                 Cooperation operations in the field of commodities shall
                                                                 be directed towards developing international, regional
                                                                 and local markets; they shall be carried out in
                          Article 32                             accordance with the detailed rules and procedures laid
                                                                 down in this Decision, notably those relating to devel-
In implementing Articles 30 and 31, special care should          opment finance cooperation. In this context, they may
be taken to enable the least-developed OCT to maximize           also cover:
their capabilities to manage their fishery resources.
                                                                  1. the enhancement of human resources, including in
                                                                     particular:
                          Article 33                                 — training programmes and courses for operators in
Conservation and the optimum use of the living                           the sectors concerned,
resources of the sea shall be carried out through direct
or regional cooperation or, where appropriate, through               — support for local or regional schools and training
international organizations.                                             institutes specializing in the sector;
 ---pagebreak--- N o C 95/12                             Official Journal of the European Communities                                  11.4.91
2. the fostering of investments by Community and O C T             economic sectors with a view to maximizing local value
    economic operators in the sector concerned, notably            added and creating, where possible, an effective capacity
    by means of:                                                   to export manfactured products, while ensuring the
                                                                   protection of the environment and natural resources.
    — information and awareness-raising campaigns
        directed at operators likely to invest in activities      These objective shall be pursued by implementing, in
        that diversify and add value to O C T commodities,         addition to the specific provisions on industrial
                                                                   cooperation, the provisions on trade promotion for O C T
                                                                   products and private investments.
    — a more dynamic use of risk capital for firms
        wishing to invest in these P M D T activities,
                                                                                              Article 39
    — utilization of the pertinent provisions on                   Industrial cooperation, as a key instrument for industrial
        investment promotion, protection, financing and            development, shall have as its objectives:
        support;
                                                                   (a) the creation of the basis of an framework for
                                                                        effective cooperation between the Community and
3. the development and improvement of the infra-                        the O C T in the fields of manufacturing and
    structure necessary for activities in the sector                    processing, mineral resources development, energy
    concerned, and notably transport and telecommuni-                   resources development, transport and communi-
    cations networks.                                                   cations;
                                                                   (b) the promotion of conditions conducive to industrial
                           Article 37                                   enterprise development, and local and external
In pursuit of the objectives set out in Article 35,                     investment;
particular importance shall be attached to:
                                                                   (c) improvement of capacity utilization and rehabili-
                                                                        tation of existing industrial undertakings which are
— ensuring that market signals, whether local, regional                 potentially viable, in order to restore the productive
     or international, are duly taken into account,                     capacities of O C T economies;
— taking account of the economic and social impact of               (d) fostering the creation of and participation in enter-
     the operations carried out,                                        prises by O C T nationals, especially small and
                                                                        medium-sized enterprises that produce and/or use
                                                                        local inputs; promotion of new enterprises and
— ensuring greater consistency at regional and interna-                 strengthening of existing ones;
     tional level between the strategies pursued by the
     various O C T concerned,
                                                                    (e) support for the establishment of new industries to
                                                                        supply the local market in a cost-effective manner
 — seeking an effective distribution of resources between                and ensure the growth of the non-traditional export
     the various activities and operators in the production              sector in order to increase earnings, provide
     sectors concerned.                                                  employment opportunities and increase real incomes;
                                                                    (f) promoting increasingly close relations in the
                            TITLE V                                      industrial field between the Community and the
                                                                         OCT, and in particular further encouraging the
 INDUSTRIAL         DEVELOPMENT,          MANUFACTURING                  speedy establishment of EEC-OCT industrial joint
                      AND PROCESSING                                     ventures;
                                                                    (g) promoting business associations in the O C T as well
                           Article 38                                    as other institutions for industrial enterprise and
                                                                         business development.
 In order to facilitate the attainment of the industrial
 development objectives of the OCT, it is important to
 ensure that an integrated and sustainable development
                                                                                               Article 40
 strategy, which links activities in different sectors to each
 other, is envolved. Thus sectoral strategies for agri-             The Community \ shall assist the O C T in the
 cultural and rural development, manufacturing, mining,             improvement of their institutional framework, rein-
 energy infrastructure and services should be designed in           forcement of their financing institutions and the estab-
 such a way as to foster interlinkages within and between           lishment,      rehabilitation     and   improvement      of
 ---pagebreak--- 11.4.91                                Official Journal of the European Communities                               No C 95/13
industry-related infrastructure. The Community shall                        processing sector, the major export sectors, and
equally assist the OCT in their efforts to integrate                        small and medium-sized enterprises directed at
industrial structures at regional and inter-regional level.                 satisfying basic needs;
                          Article 41                                    (b) metallurgical industries based on the mining
                                                                            products of the OCT, aimed at the secondary
On the basis of a request from the relevant authorities of                  processing of mining products to supply OCT
a country or territory, the Community shall provide the                     engineering and chemical industries;
assistance required in the field of industrial training at all
levels, bearing notably on the evaluation of industrial
training needs and the establishment of corresponding
programmes, the setting-up and operation of local or                    (c) chemical industries, particularly on a small and
regional OCT industrial training establishments, training                   medium scale, aimed at the secondary
for OCT nationals in appropriate establishments,                            processing of mineral products to supply the
on-the-job training both in the Community and in the                        other branches of industry, and also the agri-
OCT and also cooperation between industrial training                        cultural and health sectors;
establishments in the Community and their counterparts
in the OCT, and between the latter and those of other
developing countries.
                                                                  (iii) industrial rehabilitation and capacity utilization: the
                                                                        restoration, upgrading, reorganization, restructuring
                                                                        and maintenance of existing potentially viable
                          Article 42                                    industrial capacities. Special emphasis should be put
                                                                        in this respect on industries with a low import
In order to achieve the objectives of industrial devel-
                                                                        content that provide up-stream and down-stream
opment, the Community shall assist in the establishment
                                                                        linkages and have a favourable effect on
and expansion of all types of viable industry which have
                                                                        employment. Rehabilitation activities should be
been identified by the relevant authorities of the OCT as               targeted at the creation of conditions necessary to
important in terms of their industrialization objectives                make enterprises being rehabilitated self-sustaining.
and priorities.
In this context the following areas merit particular                                         Article 43
 attention:
                                                                  The Community shall assist the OCT to develop, during
                                                                  the period of application of this Decision, as a matter of
                                                                  priority, viable industries, as defined in Article 42, in
   (i) manufacturing and processing of primary products:          accordance with the capacities and decisions of the
                                                                  relevant authorities of each country or territory and their
                                                                  respective endowments, taking into account the
       (a) industries processing, on a local or regional          adjustment of industrial structures taking place in the
           basis, raw materials for export;                       OCT, the Community and throughout the world.
       (b) industries based on local needs and resources,
           focused on local and regional markets and                                         Article 44
           mainly small and medium-sized markets;
           industries geared to the modernization of agri-        The Community shall contribute in a spirit of mutual
           culture, the efficient processing of agricultural      interest to the development of EEC-OCT, intra-OCT
           inputs and tools;                                      and OCT-ACP cooperation between enterprises by way
                                                                  of information and industrial promotion activities.
  (ii) engineering, metallurgical and chemical industries:
                                                                  The aim of such activities shall be to intensify the regular
                                                                  exchange of information, organize the contacts required
       (a) engineering enterprises for the production of          in the industrial sphere between industrial policy-makers,
           tools and equipment primarily tailored to main-        promoters and economic operators from the Community,
           taining existing plant and equipment in the            the OCT and the ACP States, carry out studies, notably
           OCT. These enterprises should, as a matter of          feasibility studies, facilitate the establishment and
           priority, support the manufacturing and                operation of OCT industrial promotion bodies and foster
 ---pagebreak--- No C 95/14                             Official Journal of the European Communities                                  11. 4. 91
joint investment, subcontracting arrangements and any            (e) the identification, evaluation and acquisition of
other form of industrial cooperation between enterprises              industrial technology, including the negotiation on
in the Member States of the Community, in the OCT                     favourable terms and conditions of foreign tech-
and in the ACP States.                                                nology, patents and other industrial property, in
                                                                      particular through financing or through other
                                                                      suitable arrangements with firms and institutions
                                                                      within the Community;
                         Article 45
The Community shall contribute to the establishment
and development of small and medium-sized enterprises            (f) providing advisory services for the preparation of
in the artisanal, commercial, service and industrial                  regulations governing the transfer of technology and
sectors in view of the essential role that these enterprises          for the supply of available information, in particular
play in the modern and informal sectors in building up a              on the terms and conditions of technology contracts,
diversified economic fabric and in the general devel-                 the types and sources of technology, and the
opment of the OCT, and in view of the advantages they                 experience of the OCT and other countries with the
offer as regards the acquisition of skills, the integrated            use of certain types of technology;
transfer and adaptation of appropriate technology and
opportunities for taking the best advantage of local
manpower. The Community shall also help with sectoral
evaluation and the establishment of action programmes,            (g) the promotion of technology cooperation between
with the setting-up of appropriate infrastructure, the                OCT and between them and the ACP States or other
establishment, strengthening and operation of institutions            developing countries, including support to research
providing information, promotion, extension, training,                and development units, in particular at regional level,
credit or guarantee and transfer of technology facilities.            in order to make the best use of any particularly
                                                                      appropriate scientific and technical facilities they
                                                                      may possess;
The Community and the relevant authorities of the OCT
shall encourage cooperation and contact between small
and medium-sized enterprises in the Member States, the            (h) facilitating, wherever possible, access to and use of
OCT an the ACP States.                                                documentary and other data sources available in the
                                                                      Community.
                          Article 46
With a view to assisting the OCT to develop their tech-                                    Article 47
 nological base and indigenous capacity for scientific and
technological development and facilitating                the     In order to enable the OCT to obtain full benefit from
 acquisition, transfer and adaption of technology on             the trade arrangements and other provisions of this
terms that will bring about the greatest possible benefits        Decision, promotion schemes shall be undertaken for the
 and minimize costs, the instruments of development               marketing of OCT industrial products on both
 finance cooperation may be used to contribute to:                Community and other external markets, and also in
                                                                  order to stimulate and develop trade in industrial
                                                                  products among the OCT and between the OCT and
 (a) the     establishment      and     strengthening      of     ACP States. Such schemes shall cover market research,
     industry-related scientific and technical infrastructure     marketing and the quality and standardization of manu-
     in the OCT;                                                  factured goods, in accordance with Articles 152 and 153
                                                                  and taking into account Articles 84 and 85.
 (b) the drawing-up and implementation of research and
     development programmes;
                                                                                           Article 48
 (c) the identification and creation of opportunities for         At the request of their relevant authorities, the OCT may
     collaboration among research institutes, institutions        be eligible for the services of the Centre for the Devel-
     of higher learning and enterprises of the OCT, the           opment of Industry (CDI), the objectives and activities
     ACP States, the Community, the Member States and             of which are described in Articles 89 and 90 respectively
     other countries;                                             of the Convention, or those of the Euro Business Infor-
                                                                  mation Centres set up under the Community's business
                                                                  promotion policy.
 (d) the establishment and promotion of activities aimed
     at the consolidation of appropriate indigenous tech-
     nology and the acquisition of relevant foreign tech-
     nology, in particular that of other developing               Any costs resulting from services provided by the Centre
     countries;                                                   or the Euro Business Information Centres for the benefit
 ---pagebreak--- 11. 4. 91                              Official Journal of the European Communities                              No C 95/15
of the OCT shall be financed from the funds provided             prejudice to operations to assist OCT in mobilizing
for in Article 154 for whichever of the three groups             finance from other sources.
those OCT belong to.
                                                                 Industrial cooperation programmes, projects and oper-
                         Article 49                               ations which involve Community financing shall be
                                                                  implemented in conformity with Title III of Part 3 of
1. In implementing this Title, the Community shall               this Decision, having regard to the particular charac-
pay special attention to the specific needs and problems         teristics of aid operations in the industrial sector.
of the least-developed OCT in order to establish the
basis for their industrialization (the formulation of
industrial policies and strategies, economic infrastructure
and industrial training), notably with a view to adding                                    TITLE VI
value to raw materials and other local resources in the
following fields, in particular:                                                   MINING DEVELOPMENT
— processing of raw materials,
                                                                                           Article 51
                                                                 The main objectives of mining development shall be to:
— development, transfer and adaptation of techno-
     logies,
                                                                 — exploit all types of mineral resources in a way which
                                                                      ensures the profitability of mining operations in both
— development and financing of schemes in favour of
                                                                      export and local markets, while also meeting environ-
     small and medium-sized enterprises,
                                                                       mental concerns, and
— development of industrial infrastructure and energy
     and mining resources,                                        — enhance the potential of human resources,
— adequate training in the scientific and technical areas,        with a view to promoting and expediting diversified
                                                                  economic and social development.
— production of equipment and inputs for the rural
     sector.
                                                                                            Article 52
                                                                  At the request of the relevant authorities of one or more
 Such operations may be implemented with assistance               of the OCT, the Community shall carry out technical
 from the CDI or the Euro Business Information Centres.           assistance or training avtivities to strengthen their
                                                                  scientific and technical capacity in the field of geology
                                                                   and mining in order that they may derive greater benefit
                                                                  from available know-how and direct their exploration
 2. At the request of one or more of the least-                    and prospecting programmes accordingly.
 developed countries or territories, the CDI shall grant
 special assistance for identification of on-the-spot
 industrial promotion and development possibilities,
 notably in raw materials processing and the production                                     Article 53
 of equipment and inputs for the rural sector.
                                                                   Having regard to local, national and external economic
                                                                   considerations and with a view to diversification, the
                                                                   Community shall cooperate, as appropriate, through its
                          Article 50                               technical and financial assistance programmes with the
                                                                   OCT in their prospecting and exploration efforts at all
 In order to implement industrial cooperation, the                 stages, both onshore and on the continental shelf as
 Community shall help carry out programmes, projects               defined in international law.
 and operations submitted to it on the initiative or with
 the agreement of the relevant authorities of the OCT. To
 this end, it shall use all the means provided in this
 Decision, notably those at its disposal under devel-              Where appropriate, the Community shall also give its
 opment finance cooperation and, in particular, those              technical and financial assistance to the establishment of
 which are the responsibility of the Bank, without                 local, national or regional exploration funds in the OCT.
 ---pagebreak--- No C 95/16                            Official Journal of the European Communities                                11. 4. 91
                         Article 54                             The resources referred to in jthese provisions may be
                                                                supplemented, for projects of mutual interest, by:
With the aim of supporting efforts to exploit the OCT's
mining resources, the Community shall contribute
towards the support of projects to rehabilitate, maintain,      (a) other Community financial and technical resources;
rationalize and modernize economically viable
production units in order to make them more opera-
tional and more competitive.                                     (b) action aimed at the mobilization of public and
                                                                     private capital, including co-financing.
It shall also contribute to the identification, drawing-up
and implementation of new viable projects to an extent
compatible with investment and management capacities                                       Article 56
as well as market trends, taking particular account to the      The Bank may, in accordance with its Statute, commit its
financing of feasibility and pre-investment studies.            own resources on a case-by-case basis beyond the
                                                                amount fixed in Article 154 for mining investment
                                                                projects recognized by the relevant authorities of the
Particular attention shall be accorded to:                      country or territory concerned and by the Community as
                                                                being of mutual interest.
— operations to enhance the role of small and
    medium-scale projects, so promoting local mining
    enterprises with particular emphasis on minerals for
    industry and agriculture, destined notably for the                                    TITLE VII
    local or regional markets, and also new products,
    and                                                                          ENERGY DEVELOPMENT
— operations to protect the environment.
                                                                                           Article 57
                                                                In view of the seriousness of the energy situation in the
Cooperation shall also support the efforts of the relevant      majority of the OCT, owing partly to the crisis caused in
authorities of the OCT to:                                      many countries by dependence on imported petroleum
                                                                products, and in view of the effects the use of fossil fuels
— build up supporting infrastructure,                           have on the climate, there should be cooperation in this
                                                                area with a view to finding solutions to their energy
— take measures to ensure that mining development               problems.
    makes the greatest possible contribution to the
    producer countries' social and economic devel-
    opment, such measures including the optimal use of          Particular emphasis shall be placed on energy
    mining revenue and the integration of mining devel-         programming, operations for saving and making efficient
    opment into industrial development and into an              use of energy, reconnaissance of energy potential and
    appropriate policy of land use planning,                    the economically and technically appropriate promotion
                                                                of new and renewable sources of energy.
— encourage investment,
                                                                                           Article 58
— promote regional cooperation.
                                                                Cooperation in the field of energy shall promote the
                                                                development of the OCT's conventional and
                         Article 55                             non-conventional energy potential and their self-suffi-
                                                                ciency.
In order to contribute to the objectives set out above, the
Community shall be prepared to give its technical and
financial assistance to help with the exploitation of the       The main objectives of energy development shall be to:
OCT's mining protential in accordance with the
procedures appropriate to each of the instruments at its
disposal and according to the provisions of this Decision.      (a) promote economic and social development by
                                                                     exploiting and developing local and regional energy
                                                                     resources in an appropriate manner from the
In the sphere of research and investment, preparatory to             technical, economic and environmental viewpoints;
the launching of mining projects, the Community may
give assistance in the form of risk capital, possibly in
conjunction with contributions of capital from the OCT          (b) make energy production and use more efficient and,
concerned and other sources of financing, in accordance              where the potential exists, increase energy self-suffi-
with the procedures laid down in Article 156.                        ciency;
 ---pagebreak---  11.4.91                               Official Journal of the European Communities                            No C 95/17
(c) encourage increased use of alternative, new and              (i) encouraging cooperation among OCT and between
    renewable energy sources;                                          the OCT and ACP States in the energy sector,
                                                                       notably cooperation between the OCT, ACP States
                                                                       and other neighbouring States receiving Community
(d) improve living conditions in urban, outlying and                   aid.
    rural areas and propose solutions to these areas'
    energy problems that are appropriate to local needs
    and resources.
                                                                                              Article 60
                                                                 The objectives referred to above may be pursued with
                           Article 59                            the financial and technical assistance of the Community
In order to attain the abovementioned objectives, energy         to help with the exploitation of the OCT's energy
cooperation schemes may, at the request of the relevant          potential in accordance with the procedures laid down
                                                                 for each of the instruments at the Community's disposal
authorities of one or more of the OCT concerned, be
                                                                 and according to the provisions of this Decision.
focused on:
(a) collection, analysis and dissemination of relevant           In the sphere of research and investment preparatory to
    information;                                                 the launching of energy projects, the Community may
                                                                 give assistance in the form of risk capital, possibly in
                                                                 conjunction with contributions of capital from the
(b) strengthening the OCT's management and control of
                                                                 Member States and the OCT concerned and other
    their energy resources in line with their development
                                                                 sources of financing, in accordance with the procedures
    objectives in order to enable them to appraise energy
                                                                 laid down in Article 156.
    demand and supply options and to achieve strategic
    energy planning, inter alia, by supporting energy
    programming and providing technical assistance for
    departments responsible for the planning and                 The resources referred to in these provisions may be
    execution of energy policies:                                supplemented, for projects of mutual interest, by:
(c) analysing the energy implications of development             (a) other Community financial and technical resources;
    projects and programming, taking account of the
    energy savings required and of opportunities for
    primary source substitution; in this context, oper-          (b) action aimed at the mobilization of public and
    ations shall be designed to increase the role played              private capital, including co-financing.
    by new and renewable resources, particularly in rural
    areas, through programmes and projects tailored to
    local needs and resources;
                                                                                             Article 61
(d) implementing suitable programmes involving small             The Bank may, in accordance with its Statue, commit its
    and medium-sized energy development projects;                own resources on a case-by-case basis beyond the
                                                                 amount fixed in Article 154 for energy investment
                                                                 projects recognized by the relevant authorities of the
(e) enhancing investment potential for the exploration           country or territory concerned and by the Community as
    and development of local and regional energy                 being of mutual interest.
    sources and also the development of sites of excep-
    tional energy produciton permitting the estab-
    lishment of energy-intensive industry;
                                                                                             TITLE VIII
(f) promoting research, adaptation and dissemination of                          ENTERPRISE DEVELOPMENT
    appropriate technology as well as the training needed
    to meet energy-related manpower needs in the
    energy sector;
                                                                                             Article 62
(g) stepping up the OCT's research and development               1.      The Community stresses that:
    activities, particularly as regards the development of
    new and renewable sources of energy;
                                                                   (i) enterprises constitute one of the main instruments
                                                                        for achieving the objectives of strengthening the
(h) upgrading the basic infrastructure necessary for the                economic fabric, encouraging inter-sectoral in-
    production, transmission and distribution of energy                 tegration and increasing employment, incomes and
    with particular emphasis on rural electrification;                  the level of skills;
 ---pagebreak--- No C 95/18                              Official Journal of the European Communities                                 11.4.91
 (ii) present efforts by the relevant authorities of the          (c) the development of services in support of the
      OCT to restructure their economies should be                     business sector so as to provide enterprises with
      complemented by efforts to strengthen and enlarge                advisory services in the legal, technical and mana-
      their productive base. The enterprise sector should              gerial fields;
      play an important part in the OCFs strategies to
      revive growth;                                              (d) specific programmes for training and developing the
                                                                       capacity of individual entrepreneurs, particularly in
(iii) a stable and propitious environment should be                    the small-scale and informal sectors.
      created together with an effective national and local
      financial sector with a view to reinvigorating the
                                                                                             Article 64
      enterprise sector in the OCT and to encouraging
      European investment;                                        In order to support the development of savings and local
                                                                  financial sectors, the following areas of action merit
                                                                  special attention:
(iv) the private sector needs to be made more dynamic
      and play a greater role, in particular through small
      and medium-sized enterprises, which are better              (a) assistance for the mobilization of local savings and
      suited to conditions prevailing in the OCT                       the development of financial intermediaries;
      economies. Micro-firms and crafts should equally be
      encouraged and supported;                                   (b) technical assistance for the restructuring and reform
                                                                       of financial institutions.
 (v) private foreign investors complying with the
      objectives and priorities of the association should be                                 Article 65
      encouraged to participate in the development efforts
      of the OCT. Fair and equitable treatment should be          With a view to assisting enterprise development in the
      accorded to such investment as well as a propitious,        OCT, the Community shall provide technical and
      secure and predictable investment climate;                  financial assistance, subject to the conditions laid down
                                                                  in Title III of Part 3.
(vi) the fostering of entrepreneurship in the OCT is
      crucial for unlocking the OCT'S considerable                                           TITLE IX
      potential.
                                                                                 DEVELOPMENT OF SERVICES
2. Efforts should be made to channel an increased
porportion of the Decisions's financial resources                                           Chapter 1
available under the Decision towards the encouragement
of entrepreneurship and investment and to directly                          Objectives and principles of cooperation
productive activities.
                                                                                             Article 66
                          Article 63
                                                                   1. Services are important for the formulation of devel-
In pursuit of the abovementioned objectives, the full             opment policies, and cooperation in this sphere needs to
range of instruments provided for by this Decision,               be stepped up.
including technical assistance, should be deployed in the
following areas with a view to sustaining private-sector
development:                                                       2. The Community shall support the efforts of the
                                                                   relevant authorities of the OCT to increase their
                                                                   domestic capacity to provide services with a view to
(a) support for the improvement of the legal and fiscal            improving the working of their economies, relieving
     framework for business, and development of a                 balance of payment constraints and stimulating the
     greater role for professional organizations and              process of regional integration.
     chambers of commerce in the process of enterprise
     development;
                                                                   3. The object is to ensure that the OCT derive
                                                                   maximum benefit from the provisions of this Decision, at
(b) direct assistance for the creation and the devel-              local and regional leval, and to enable them to:
     opment of business (specialized business start-up
     services; assistance for the redeployment of ex-public       — participate under the most favourable conditions in
     sector employees; assistance for technology-transfers             Community, local, regional and international markets
     and development; management services and market                   by diversifying the range and increasing the value
     research);                                                        and volume of OCT trade in goods and services,
 ---pagebreak---  11.4.91                                 Official Journal of the European Communities                             No C 95/19
     increase their' collective capacity by means of greater                                  Article 68
     economic integration and consolidation of functional
     cooperation or cooperation on specific themes,                In the field of the development of services, particular
                                                                   attention shall be given to the specific needs and
                                                                   economic situations of the least-developed OCT.
     stimulate enterprise development, notably by
     encouraging EEC-OCT investment in services, with a
     view to creating employment, generating and distri-
     buting' revenue and facilitating the transfer and adap-                                 Chapter 2
     tation of technology to specific OCT needs,
                                                                           Services that support economic development
     derive maximum benefit from local or regional
     tourism and improve their participation . in world
     tourism,                                                                                 Article 69
                                                                   In pursuit of cooperation objectives in this sector,
     set up the transport and communications networks              cooperation shall concern marketed services, without,
                                                                   however, this leading to neglect of certain parastatal
     and informatics and telematics systems needed for
                                                                   services required to improve the economic environment,
     their development,
                                                                   such as customs computerization, by giving priority to
                                                                   the the following services:
     step up vocational training activities and transfer
     know-how in view of the determining role of human
     resources in the development of services.                     — services that support foreign trade,
4. In pursuit of these aims, recourse shall be had, in             — services required by the business sector,
 addition to the specific provisions on services, to those
on trade, trade promotion, industrial development,
 investment and education and training.
                                                                   — services that support regional integration.
                           Article 67
 1. In view of the wide range of services and their                                           Article 70
 unequal contribution to development, and with a view to           To help restore the OCT's external competitiveness,
maximizing the impact of Community aid on the devel-               cooperation in the field of services shall give priority to
opment of OCT, particular attention shall be paid to               services that support external trade, the scope of which is
 services necessary for their economies in the following           as follows:
areas:
— services that support economic development,                        (i) the creation of appropriate infrastructure for trade,
                                                                         in particular through operations to improve external
                                                                         trade statistics, automation of customs procedures,
                                                                         port and airport management and the establishment
— tourism,                                                               of closer links between the various protagonists in
                                                                         trade, including exporters, trade financing bodies,
                                                                         customs and central banks;
     transport, communications and information tech-
     nology.
                                                                    (ii) the promotion of specially trade-oriented services
                                                                         such as trade promotion measures that are also
2. In order to implement cooperation in services, the                    applicable to services;
Community shall help carry out programmes, projects
and operations sumbitted to it on the initiative, or with
the agreement, of the relevant authorities of the OCT.
To this end, it shall use all the means provided for in this       (iii) the development of other external trade-linked
Decision, notably those at its disposal under devel-                     services such as trade financing and clearing and
opment finance cooperation, including those which are                    payment facilities, and access to information
the responsibility of the Bank.                                          networks.
 ---pagebreak--- N o C 95/20                             Official Journal of the European Communities                                 11. 4. 91
                           Article 71                             The aim shall be to support the efforts of the relevant
                                                                  authorities of the O C T to derive maximum benefit from
To foster a strengthening of the economic fabric of the           local, regional and international tourism in view of
O C T , taking account of the provisions on enterprise            tourism's impact on economic development and to
development, particular attention shall be paid do the            stimulate private financial flows from the Community
following areas:                                                  and other sources into the development of tourism in the
                                                                  OCT. Particular attention shall be given to the need to
  (i) business advisory services to improve the running of        integrate tourism into the social, cultural and economic
      undertakings, notably by facilitating access to             life of the people.
      services in the fields of management, accountancy,
      information     technology,     legal     advice,   tax
      consultancy and finance;
                                                                                            Article 74
 (ii) the setting-up of adequate, appropriate and flexible        Specific tourism development measures shall be aimed at
      business financing facilities to stimulate the growth       the definition, adaptation and development of appro-
      or setting-up of undertakings in the field of services;     priate policies at local, regional, subregional and inter-
                                                                  national levels. Tourism development programmes and
(iii) strengthening the OCT's capacity in financial               projects shall be based on these policies on the basis of
      services and technical assistance for developing            the following four components:
      insurance and credit institutions in the field of trade
      development and promotion.
                                                                  (a) human resources and institutional development, inter
                                                                       alia:
                           Article 72
To underpin economic integration designed to create
viable economies, and in view of the provisions on                     — professional management development in specific
regional cooperation, particular attention shall be given                  skills and continuous training at appropriate
to the following areas:                                                    levels in the private and public sectors to ensure
                                                                           adequate planning and development,
  (i) services to support trade in goods between O C T
      and between O C T and ACP States through trade
      measures such as market studies;
                                                                       — establishment and        strengthening   of  tourism
                                                                           promotion centres,
 (ii) services required for the expansion of trade in
      services between OCT, and between O C T and ACP
      States, with a view to enhancing their complemen-
      tarity, notably by extending traditional trade                   — education and training for specific segments of
      promotion measures, adapted where necessary to                       the population and public/private organizations
      the services sector;                                                 active in the tourism sector, including personnel
                                                                           involved in sectors that support tourism,
(iii) the creation of regional centres of services aimed at
      supporting specific economic sectors or jointly
      implemented sectoral policies, notably through the               — intra-OCT and OCT-ACP cooperation and
      development of modern communications and infor-                      exchanges in the fields of training, technical
      mation networks and computerized data banks.                         assistance and the development of institutions;
                         Chapter 3                                 (b) product development, inter alia:
                            Tourism
                                                                       — identification of the tourism product, devel-
                           Article 73                                      opment of non-traditional and new tourism
                                                                           products, adaptation of existing products
In view of the real importance of the tourist industry for                 including the preservation and development of
the O C T , measures and operations to develop and                         cultural heritage, ecological and environmental
support tourism shall be implemented. These measures                       aspects, management, protection and conser-
shall be implemented at all levels, from the identification                vation of flora and fauna, historical, social and
of the tourist product to the marketing and promotion                      other natural assets, development of ancillary
stage.                                                                     services,
 ---pagebreak--- 11. 4. 91                               Official Journal of the European Communities                             No C 95/21
         promotion of private investment in the OCFs              2. Cooperation in the area of communications shall be
         tourist industries, including the creation of joint      aimed at the development of postal services and telecom-
         ventures,                                                munications, including radiocommunications and infor-
                                                                  matics.
         provision of technical assistance for the hotel
         industry,                                                3. Cooperation in these areas shall be directed
                                                                  particularly towards the following, objectives:
         production of crafts of a cultural nature for the
         tourist market;                                          (a) the creation of conditions fostering the movement of
                                                                       goods, services and persons at local, regional and
                                                                       international level;
(c) market development, inter alia:
                                                                  (b) the provision, rehabilitation, maintenance and
         assistance for the definition and execution of                efficient operation of cost-effective systems serving
         objectives and market development plans at local,             the requirements of social and economic devel-
         subregional, regional and international levels,               opment and adjusted to the needs of users and to the
                                                                       overall economic situation of the OCT concerned;
         provision of support for OCT's efforts to gain
         access to services for the tourist industry such as      (c) greater complementarity of transport and communi-
         central reservation systems and air traffic control           cations systems at local, regional and international
         and security systems,                                         level;
         provision of marketing and promotional measures          (d) the harmonization of the local systems installed in
         and materials in the framework of integrated                  the OCT, while facilitating their adjustment to tech-
         market development plans and programmes and                   nological progress;
         with a view to improved market penetration,
         aimed at the main generators of tourism flows in
         traditional and non-traditional markets as well as       (e) the reduction of barriers to cross-border transport
         specific activities such as participation at                  and communications, in terms of legislation, regu-
         specialized trade events, such as fairs, production           lations and administrative procedures.
         of quality literature, films and marketing aids;
                                                                                            Article 76
(d) research and information, inter alia:
                                                                   1. In all cooperation projects and programmes in the
                                                                  fields concerned, efforts shall be made to ensure an
    — improving tourism information and collecting,               appropriate transfer of technology and know-how.
         analysing, disseminating and utilizing statistical
         data,
                                                                  2. Particular attention shall be given to training OCT
                                                                  nationals in the planning, management, maintenance and
     — assessment of the socio-economic impact of                 operation of transport and communications systems.
         tourism on the economies of the OCT with
         particular emphasis on the development of
         linkages to other sectors in the OCT and the                                       Article 77
         surrounding regions, such as food production,
         construction, technology and management.                  1. Air transport is important in forging closer
                                                                  economic, cultural and social links among the OCT,
                                                                  between them and the ACP States and also between
                                                                  them and the Community, in improving the communi-
                          Chapter 4                               cations of isolated or not easily accessible regions and in
                                                                  developing tourism.
        Transport, communications and informatics
                                                                   2. The objective of cooperation in this field shall be to
                           Article 75                             promote the harmonious development of local and
                                                                  regional OCT air transport networks and the moderni-
1. Cooperation in the area of transport shall be aimed            zation of local fleets of aircraft in line with technical
at the development of road transport, railways, port              progress, the implementation of the international Civil
installations and shipping, transport by domestic                 Aviation Organization (ICAO) air navigation plan, the
waterways and air transport.                                      improvement of reception infrastructure and the
 ---pagebreak--- No C 95/22                            Official Journal of the European Communities                                 11. 4. 91
application of international operating standards, the                                     Article 81
development and improvement of aircraft maintenance
centres, the provision of training and the development of        1. In the field of cooperation on communications,
modern airport security systems.                                particular attention shall be paid to technological devel-
                                                                opment in supporting the OCT's efforts to establish and
                                                                develop effective systems. This includes studies and
                                                                programmes concerning satellite communication, where
                          Article 78                            this is justified by operational considerations, in
                                                                particular at regional and subregional level. Cooperation
1. Shipping services are one of the forces behind               shall also cover means of observation of the earth by
economic development and promotion of trade between             satellite for meteorology and remote sensing purposes,
the OCT and the Community.                                      notably their use in connection with all forms of
                                                                pollution, the management of natural resources, agri-
                                                                culture and mining in particular, and land use planning.
2. The objective of cooperation in this field shall be to
ensure harmonious development of efficient and reliable
shipping services on economically satisfactory terms by
facilitating the active participation of all parties            2. Particular importance shall be attached to telecom-
according to the principle of unrestricted access to the        munications in rural areas, in order to stimulate their
trade on a commercial basis.                                    economic and social development.
                          Article 79                                                      Article 82
In the framework of financial and technical assistance          The aim of cooperation in the field of information tech-
for shipping, special attention shall be given to:              nology shall be the building-up of the OCT's infor-
                                                                mation technology and telematics capacity by offering
                                                                countries which wish to give high priority to this sector
— effective development of efficient and reliable
                                                                support for their efforts to acquire and install infor-
    shipping services in the OCT, notably the gearing of
                                                                mation technology systems; the development of efficient
    port infrastructure to meet traffic requirements and
                                                                telematic networks, including international financial
    the maintenance of port equipment,
                                                                information; the production, in time, of computer
                                                                components and software in the OCT; their participation
— maintenance or acquisition of handling equipment              in international activities in the field of data processing
                                                                and the publication of books and reviews.
    and watercraft and their modernization in line with
    technical progress,
— development of inter-regional shipping with a view to                                   Article 83
    encouraging intra-OCT and OCT—ACP cooperation               Cooperation activities in the transport and com-
    and improvements in the functioning of the OCT's            munications fields shall be carried out in accordance
    shipping,                                                   with the provisions and procedures laid down in Title III
                                                                of Part 3.
— technology transfer including multimodal transport
    and containerization for the promotion of joint
    ventures,
                                                                                          TITLE X
— setting-up of appropriate legislative and adminis-                             TRADE DEVELOPMENT
    trative infrastructure and the improvement of port
    management, notably through vocational training,
                                                                                          Article 84
— development of inter-island shipping services and
    connecting infrastructure and increased cooperation         With a view to attaining the objectives set out in Article
    with economic operators.                                    100, the Community shall implement measures for the
                                                                development of trade at all stages up to final distribution
                                                                of the product.
                         Article 80
Particular importance shall be attached to the promotion        The object is to ensure that the OCT derive the
of shipping safety and the security of crews, and to the        maximum benefit from the provisions of this Decision in
prevention of pollution.                                        the fields of trade, agricultural and industrial
 ---pagebreak--- 11. 4. 91                               Official Journal of the European Communities                             No C 95/23
cooperation and may participate under the most                    — support for the OCT in developing their internal
favourable conditions in Community, domestic, subre-                   capacities, information systems and awareness of the
gional, regional and international markets by diversifying             role and importance of trade in economic devel-
the range and increasing the value and the volume of the               opment,
OCT's trade in goods and services.
                                                                  — support for small and medium-sized enterprises in
                           Article 85                                  identifying and developing products, market outlets
                                                                       and joint marketing ventures.
1. In promoting the development of trade and
services, in addition to development of trade between the
OCT and the Community, particular attention shall be
given to operations designed to increase the OCTs self-           3. With a view to expediting procedures, financing
reliance, to developing intra-OCT, OCT—ACP and                    decisions may deal with multiannual programmes in
international trade and to improving regional                     accordance with the provisions of Article 196 on
cooperation in trade and services.                                implementation procedures.
2. Operations shall be undertaken at the request of               4. Support for the OCT's participation in trade fairs,
the relevant authorities of the OCT, particularly in the          exhibitions and trade missions should be provided only
following areas:                                                  where such events form an integral part of overall trade
                                                                  development programmes.
— the establishment of coherent trade strategies,
                                                                  5. Participation of the least-developed OCT in various
                                                                  trade activities shall be encouraged by special provisions,
— development of human resources and professional                  inter alia, the payment of travel expenses of personnel
    skills in the field of trade and services,                    and costs of transporting exhibits on the occasion of
                                                                  their participation in local, regional and third-country
                                                                  fairs, exhibitions or trade missions, including the cost of
— the establishment, adaptation and strengthening of              the temporary construction and/or renting of exhibition
    organizations in the OCT dealing with the devel-              booths and stalls. Special assistance shall be provided to
    opment of trade and services, particular attention            the least-developed OCT for the preparation and/or
    being paid to the special needs of organizations in           purchase of promotional material.
    the least-developed OCT,
— support for the OCT's efforts to develop and                                              Article 86
    improve the quality of their products, adapt them to
                                                                  Within the framework of the instruments provided for in
    market requirements and diversify their outlets,
                                                                  this Decision and in accordance with the provisions for
                                                                  development finance cooperation, assistance for the
                                                                  development of trade and services shall include technical
— market development measures, including increasing               assistance for the establishment and development of
    contacts and exchange of information between                   insurance and credit institutions in connection with trade
    economic operators in the OCT, the Member States              development.
    of the Community and third countries,
— support for the OCT in the application of modern                                          Article 87
    marketing techniques in production-oriented sectors
                                                                  In addition to the appropriations which, within the
    and programmes in areas such as rural development
                                                                  framework of the indicative programmes referred to in
    and agriculture,
                                                                  Article 187, may be allocated by each country or
                                                                  territory to the financing of operations to develop the
                                                                  fields referred to in Titles IX and X of Part 2, the
— support for the OCT's efforts to develop and                    contribution of the Community to the financing of such
    improve support service infrastructure, including             operations, where they are of a regional nature, may
    transport and storage facilities, in order to ensure          amount, within the framework of the regional
    effective distribution of goods and services and              cooperation programmes referred to in Article 90, to the
    enhance the flow of exports from the OCT,                     amount provided for in Article 154 of this Decision.
 ---pagebreak--- N o C 95/24                             Official Journal of the European Communities                               11. 4. 91
                          TITLE XI                                In so doing, it shall take account of the particular legal
                                                                  systems of the O C T concerned.
        CULTURAL AND SOCIAL COOPERATION
                                                                  2.     Community support shall be given within the
                                                                  framework of the major regional cooperation and inte-
                          Article 88                              gration objectives which the O C T have set or will set for
                                                                  themselves at regional, inter-regional and international
Cooperation shall contribute to the self-reliant devel-
                                                                  level.
opment of the OCT, a process centred on man himself
and rooted in each people's culture. The human and
cultural dimension must embrace all areas and be
reflected in all development projects and programmes.              3.    In order to promote and strengthen the OCT's
Cooperation shall back up the policies and measures               collective capabilities, the Community shall provide
adopted by the relevant authorities of the O C T to               effective aid enabling them to strengthen regional
enhance their human resources, increase their own                 economic integration and consolidate the cooperation of
creative capacities and promote their cultural identities.        a functional type or on specific themes referred to in
It shall foster participation by the population in the            Articles 92 and 93.
process of development.
                                                                   4.    While taking account of local circumstances,
                                                                  regional cooperation shall transcend the concepts of
In particular such cooperation shall be carried out by:           geographical location. It shall also cover intra-OCT
                                                                  regional cooperation.
— taking into account the cultural and social dimension,
                                                                  It shall include regional cooperation between OCT, ACP
                                                                   States and overseas departments, in accordance with
                                                                  Article 98. The funding to cover the participation of
— promoting cultural identities and inter-cultural
                                                                  ACP States and the overseas departments shall be
    dialogue, notably in connection with the safe-
                                                                  additional to funds allocated to the O C T under the
    guarding of the cultural heritage, the production and
                                                                  Decision.
    dissemination of cultural products, cultural events,
    and information and communications,
                                                                                           Article 91
— implementing         operations    to   enhance     human        1.    Regional cooperation shall cover operations agreed
    resources, particularly with regard to education and          on between:
    training, scientific and technical cooperation, the role
    of women in development, health and nutrition, and
    population and demography.                                    — two or more or all OCT,
                                                                  — one or more of the O C T and one or more neigh-
                          Article 89                                   bouring countries, ACP or non-ACP,
Cultural and social cooperation operations shall be
carried out in accordance with the procedures laid down           — one or more of the O C T and one or more ACP
in Title III of Part 3.                                                States or overseas departments,
                                                                  — two or more regional bodies of which O C T are
                          TITLE XII                                    members,
                REGIONAL COOPERATION                              — one or more of the O C T and regional bodies of
                                                                       which OCT, ACP States or overseas departments are
                                                                       members.
                          Article 90
1.    The Community shall support the efforts of the               2.    Regional cooperation may also cover projects and
relevant authorities of the O C T through regional                programmes agreed upon by two or more O C T and one
cooperation and integration to promote long-term                  or more neighbouring developing States, ACP or
collective and self-reliant, self-sustained and integrated         non-ACP, and, when special circumstances so warrant,
social, cultural and economic development and greater             between one country or territory and one or more
regional self-sufficiency.                                         non-neighbouring developing States, ACP or non-ACP.
 ---pagebreak--- 11.4.91                                   Official Journal of the European Communities                            No C 95/25
                            Article 92                              (b) health programmes, including education, training,
                                                                        research and information related to primary health
1.    In the context of regional cooperation particular                  care and control of major diseases, including animal
attention shall be paid to:                                             diseases;
(a) evaluation and utilization of existing and potential            (c) evaluation, development, exploitation and preser-
    dynamic complementarities in all relevant sectors;                  vation of fishery and marine resources, including
                                                                        scientific and technical cooperation with a view to
(b) maximization of the use of human resources in the                   the surveillance of exclusive economic zones;
    O C T as well as the optimum and judicious
    exploration, conservation, processing and exploi-               (d) preservation and improvement of the environment,
    tation of O C T natural resources;                                  especially through programmes to combat desertifi-
                                                                        cation, erosion, deforestation, coastal deterioration,
(c) promotion of scientific and technical cooperation                   the consequences of large-scale marine pollution,
    among the O C T or between O C T and ACP States,                    including large accidental discharges of petroleum
    including support for intra-OCT and intra-ACP                       or other pollutants with a view to ensuring rational
    technical assistance programmes as provided for in                  and ecologically balanced development;
    Article 181 (e) of the Decision;
                                                                    (e) industrialization, including the setting-up of
(d) acceleration of economic diversification in order to                regional    and     inter-regional  production    and
    stimulate complementarity in production and intensi-                marketing enterprises;
    fication of cooperation and development within and
    between O C T regions, and also between the latter,
                                                                    (f) exploitation of natural resources, notably         the
    ACP States and overseas departments;
                                                                        production and distribution of energy;
(e) promotion of food security;
                                                                    (g) transport and communications, namely air and sea
                                                                        transport, inland waterways, postal services and tele-
(f) strengthening a network of relations between indi-                  communications ;
    vidual countries or territories or between groups of
    countries or territorities which have common charac-
                                                                    (h) development and expansion of trade;
    teristics, affinities and problems in order to solve
    such problems;
                                                                    (i) support for the setting-up or strengthening of
                                                                        regional payment mechanisms including clearing and
(g) fullest use of economies of scale wherever a regional
                                                                        financing facilities for trade;
    solution is more efficient than a local solution;
                                                                    (j) assistance to help the O C T combat drug trafficking
(h) expansion of the OCT's markets by promoting trade
                                                                        at regional and inter-regional levels;
    among O C T and between the OCT, ACP States and
    neighbouring         third     countries     or    overseas
    departments;                                                    (k) assistance for action programmes undertaken by
                                                                        O C T and OCT-ACP and ACP-EEC trade and
                                                                        business organizations with the aim of improving the
(i) integration of the OCT's markets by liberalizing
                                                                        production and marketing of products on external
    intra-OCT and OCT-ACP trade and eliminating
                                                                         markets;
    tariff, non-tariff, monetary and administrative
    barriers.
                                                                    (1) education and training, research, science and tech-
                                                                        nology, informatics, management, information and
2.    Particular stress shall be put on the promotion and               communication, the establishment and strengthening
strengthening of regional economic integration.                         of training and research institutions and technical
                                                                        bodies responsible for technology exchanges and
                                                                        cooperation among universities;
                            Article 93
Having regard to Article 92, the scope of regional                  (m) other services, including tourism;
cooperation shall include the following:
                                                                    (n) cultural and social cooperation activities, including
(a) agriculture and rural development, notably food                     support for action programmes implemented by
     self-sufficiency and food security;                                O C T at regional level with a view to enhancing the
 ---pagebreak--- No C 95/26                            Official Journal of the European Communities                                    11. 4. 91
     status of women, improving their living conditions,        (a) the operation strengthens cooperation between the
     expanding their economic and social role and                    OCT and, where relevant, the ACP States concerned
     promoting their full participation in the economic,             at the level of their authorities, institutions or enter-
     cultural and social development process.                        prises, or through regional bodies or by removing
                                                                     obstacles, whether financial or in the form of regu-
                                                                     lations;
                         Article 94
1. Regional organizations duly mandated by the                  (b) two or more OCT and, where relevant, ACP States
relevant authorities of the OCT or by them and the ACP               have entered into mutual commitments in respect of
States concerned must play an important part in the                  an operation, notably as regards the distribution of
design and implementation of regional programmes.                    facilities, investment and the running thereof.
2. They may take part in the programming exercise                                          Article 97
and in the implementation and management of regional             1. The requests for financing from funds earmarked
programmes and projects.                                        for regional cooperation shall be governed by the
                                                                following general procedures:
3. Where an operation is financed by the Community
through a regional cooperation body, the financing               (a) requests for financing shall be presented by each of
terms applicable to the final beneficiaries shall be agreed          the OCT participating in a regional operation;
between the Community and that body in agreement
with the country or territory or countries or territories
and, where relevant, the ACP State or States concerned.          (b) wherever an operation of regional cooperation is
                                                                     such as to be of interest to other OCT or ACP
                                                                     States, the Commission shall, in agreement with the
                                                                     authorities making the application, inform them or,
                         Article 95                                  if need be, all the OCT or ACP States. The OCT
                                                                     interested shall then confirm whether they intend to
A regional operation is one which helps directly to solve            participate.
a development problem common to two or more
countries or territories through joint schemes or coor-
dinated schemes and which meets at least one of the                  Notwithstanding this procedure, the Commission
following criteria:                                                  shall examine without delay any request for
                                                                     financing as long as it has been presented by at least
                                                                     two OCT or at least one OCT and one ACP State.
(a) because of its nature or physical characteristics, it            The financing decision shall be taken after the auth-
     necessarily extends beyond the frontiers of a country           orities consulted have communicated their intention;
     or territory and cannot be carried out by a single
     country or territory nor be divided up into local
     operations to be undertaken by each country or              (c) where a single country or territory is associated with
     territory on its own account;                                   ACP States or non-ACP countries, as provided for in
                                                                     Article 94, its request alone shall suffice;
(b) the regional formula makes it possible to achieve
     significant economies of scale in relation to local and     (d) regional cooperation bodies may present requests for
     national operations;                                            the financing of one or more specific regional
                                                                     cooperation schemes on behalf of their OCT
                                                                     members, and with their explicit agreement;
 (c) the operation is the regional or inter-regional
     expression of a sectoral or a global strategy;
                                                                 (e) each request for regional cooperation funding must
                                                                     include, where necessary, proposals concerning:
 (d) the accompanying costs and benefits are unequally
     shared out among the beneficiary countries, terri-                (i) the ownership of the goods and services to be
     tories and States.                                                    financed as part of the operation, and the
                                                                           division of responsibilities for operation and
                                                                           maintenance;
                          Article 96
The Community's contribution under regional                           (ii) the choice of the regional authorizing officer
cooperation shall, in respect of operations which could                    and relevant authorities of the country or
be undertaken partly at local level, be determined on the                  territory, State or body authorized to sign the
basis of the following factors:                                            financing agreement on behalf of all the partici-
 ---pagebreak--- tP49t                                                Officiai]ournaiofthe European Communities                                  NoC^B^
             pating O C T and^ where relevant ACP States                        ^5    InadministeringtheEuropean L^evelopmentRund
             and participating bodies^                                          and the Structural Runds^ and in accordance with the
                                                                                rules on eligibility for the respective funds^ the
^.      The indicative programme for each region may lay                        CommissionwillensurethattheOCT^EfoR^overseas
down appropriate arrangements for the submission of                             departments ^Structural Runds^ and ACRStates ^RfoR^
requests.                                                                       may receive financing from Community funds for
                                                                                regional projects or programmes carried out jointly by
                                                                                OCT^ overseasdepartments and ACRStates within the
o5 The country or territory^ countries or territories^                          same geographicalarea subject t o t h e following^
ACP State or States or regional bodies participating i n a
regional operation with third countries as provided for in
                                                                                — the joint regional project or programme must comply
A r t i c l e d may request the Community tofinance that
                                                                                    withthe provisions on objectives^ scope and rules of
part of the operation for which they are responsible o r a
                                                                                    procedure laid down in the relevant Articles of the
part in proportion t o t h e b e n e f i t s they derivefrom the
                                                                                    Convention and of this L^ecision^
operation.
                                                                                — the rules of procedure for financing projects and
                                                                                    programmes shall be those governing the Community
                                                                                    fund in question.
t.        Inordertoimproveregionalcooperation^encour
agement shall be given for consultations between the
relevant authorities of different States^ notably ACP                           The Commissionshallassumeresponsibility forcoordP
States^ O C T and the overseas departments of the                               nation in the period between the financing and the
geographical areainquestion^ in liaison with the anthD                          implementationof the project or programme.
orities of the member States responsible for the O C T
and overseas departments.
^.       regional cooperation in the field of trade may take                    Ror the purposes set out in thisTitle^ the amount of the
the form of regional trade agreements^ in accordance                            Community^ financial assistance is provided for in
w i t h t h e T r e a t y a n d t h e Convention.                               Article t^4 of this Precision.
                                                                           PAIoT^
                                           T H E INSTRUMENTS O E E E C O C T COOPERATION
                                                                                o5 T o t h i s end^the parties concerned shallapply the
                                                                                provisions of this Title and the other appropriate
                         T^An^^O^^^ATI^^                                        measures underTitle III of this Part and under R a r t ^ o f
                                                                                this Precision.
                                   Chapter I
                       Oe^e^d^adea^^i^e^e^^
                                                                                 L    Products originating in the OCTshall be imported
 n       In the field of trade cooperations the object of this                  into the Community free of customs duties and charges
fOecision is to promote trade between the O C T a n d the                       having equivalent effect.
Community^taking account of their respectivelevels of
development^andalsobetweentheOCTthemselves,
                                                                                ^. ^    Products originating in the OCT^
^.       In the pursuit of this objectives particular regard
shall behadtosecuringeffectiveadditionaladvantages
for the OCT^s trade with the Community and to
improving the conditions of access for their products to
the market in order to accelerate the growth of their                                  — listed in Anne^ II to t h e T r e a t y where they
tradeand^ i n p a r t i c n l a r ^ o f t h e f l o w o f their exports to                  come under a common organization of the
theCommnnity a n d t o e n s u r e a b e t t e r b a l a n c e i n t r a d e                market within the meaning of Article 40 of the
betweenthe parties concerned.                                                               Treaty^or
 ---pagebreak--- No C 95/28                            Official Journal of the European Communities                                   11.4.91
      — subject, on import into the Community, to                            introduced as a result of the implementation
           specific rules introduced as a result of the                      of the common agricultural policy, it shall
           implementation of the common agricultural                         reserve the right to adapt the import treatment
           policy,                                                           for those products originating in the OCT. In
                                                                             such cases, the provisions of subparagraph (a)
      shall be imported into the Community, notwith-                         shall be applicable,
      standing the general arrangements applied in
      respect of third countries, in accordance with the                     modifies the common organization of the
      following provisions:                                                  market in a particular product or the specific
                                                                             rules introduced as a result of the implemen-
       (i) those products shall be imported free of                          tation of the common agricultural policy, it
            customs duties for which Community                               shall reserve the right to modify the
            provisions in force at the time of import do                     arrangements laid down for products orig-
            not provide, apart from customs duties, for                      inating in the OCT. In such cases the
            the application of any measure relating to                       Community shall undertake to ensure that
            their import;                                                    products originating in the OCT continue to
                                                                             enjoy an advantage comparable to that
      (ii) for products other than those referred to                         previously enjoyed in relation to products
            under (i), the Community shall take the                          originating in third countries benefiting from
            necessary measures to ensure more favourable                     the most-favoured-nation clause.
            treatment than that granted to third countries
            benefiting from the most-favoured-nation
            clause for the same products;
                                                                                          Article 102
  (b) if, during the application of this Decision, the           1. The Community shall not apply to imports of
      relevant authorities of the OCT request that new          products originating in the OCT any quantitative
      lines of agricultural production or agricultural          restrictions or measures having equivalent effect.
      products which are not the subject of specific
      arrangements when this Decision enters into force         2. However, paragraph 1 shall apply without
      should benefit from such arrangements, the
                                                                prejudice to the import arrangements for the products
      Commission shall submit a proposal, if necessary,
                                                                referred to in the first indent of Article 101 (2) (a).
      to the Council;
  (c) notwithstanding the above, the Council shall, in                                    Article 103
      the context of the special relations and special
      nature of cooperation between the Community                1. Article 102 shall not preclude prohibitions or
      and the OCT, examine on a case-by-case basis              restrictions on imports, exports or goods in transit
      the requests of the relevant authorities of the           justified on grounds of public morality or public policy,
      OCT for preferential access for their agricultural        the protection of health and life of humans, animals and
      products to the Community market and, acting by           plants, the protection of national treasures possessing
      a qualified majority on a proposal from the               artistic, historic or archaeological value or the protection
      Commission, shall notify its decision on these            of industrial and commercial property.
      reasoned requests if possible within four months,
      and in any case not more than six months after
      the date of their submission.                             2. Such prohibitions or restrictions shall in no case
                                                                constitute a means of arbitrary discrimination or a
                                                                disguised restriction of trade generally.
      Under subparagraph (a) (ii), the Council, acting
      by a qualified majority on a proposal from the
      Commission, shall take its decisions with                  3. Provisions on the movement of hazardous and
      particular reference to concessions granted to            radioactive waste are set out in Title I of Part 2.
      developing third countries. It shall take account'of
      the possibilities offered by the off-season market;
                                                                                          Article 104
  (d) the arrangements referred to in subparagraph (a)          This Decision shall be without prejudice to the treatment
      shall enter into force at the same time as this           that the Community reserves for certain products under
      Decision and shall remain applicable for its              international agreements on those products to which the
      duration.                                                 Community is a signatory.
      However, if during the application of this
      Decision, the Community:
                                                                                          Article 105
      — subjects one or more products to common                 This Decision shall apply to Greenland, subject to the
           organization of the market or to specific rules      specific provisions set out in the Protocol on special
 ---pagebreak---   11. 4. 91                            Official Journal of the European Communities                                No C 95/29
 arrangements for Greenland, annexed to the Treaty                paragraph 2, the Community and the relevant authorities
 amending, with regard to Greenland, the Treaties estab-          of the OCT shall continue to apply their own rules.
 lishing the European Communities (').
                                                                                           Article 109
                          Article 106                              1. If, as a result of the application of this Decision,
 1. In view of the present development needs of the               serious disturbances occur in a sector of the economy of
 OCT, the relevant authorities of the OCT may retain or           the Community or one or more of its Member States, or
 introduce, in respect of imports of products originating         their external financial stability is jeopardized, or if diffi-
 in the Community or in other OCT, such customs duties            culties arise which may result in a deterioration in a
 or quantitative restrictions as they consider necessary.         sector of the Community's activity or in a region of the
                                                                  Community, the Commission may, in accordance with
                                                                  the procedure specified in Annex III, take, or authorize
 2. (a) The trade arrangements applied to the                     the Member State concerned to take, the necessary
          Community by the OCT may not give rise to any           safeguard measures.
          discrimination between Member States nor be less
         favourable than most-favoured-nation treatment.
                                                                  2. For the purpose of implementing paragraph 1,
                                                                  priority shall be given to such measures as would least
                                                                  disturb the functioning of the association and the
     (b) Notwithstanding specific provisions of this
                                                                  Community. These measures shall not exceed the limits
         Decision, the Community shall not discriminate
                                                                  of what is strictly necessary to remedy the difficulties
         between OCT in the field of trade.
                                                                  that have arisen.
     (c) The provisions of (a) shall not preclude a country
         or territory from granting certain other OCT or                                   Article 110
         other developing countries more favourable              When safeguard measures are taken, modified or
         treatment than that accorded to the Community.          removed, particular attention shall be paid to the
                                                                  interests of the least-developed OCT.
                          Article 107
 Denmark, France, the Netherlands and the United                                          Chapter 2
 Kingdom shall communicate to the Commission, within
 a period of three months following the entry into force                         Special undertakings on rum
of this Decision, the customs tariffs and lists of quanti-
tative restrictions retained by the OCT with which they
                                                                                           Article 111
 have special relations.
                                                                 Until the entry into force of a common organization of
                                                                 the market in spirits and notwithstanding Article 101 (1),
The Member States concerned shall also communicate to            entry into the Community of products falling within CN
the Commission any subsequent amendments to such                 codes 2208 40 10, 2208 40 90, 2208 90 11 and 2208 90 19
measures as and when they are adopted.                           — rum, taffia and arrack — originating in the OCT shall
                                                                 be governed by Annex IV.
                          Article 108
                                                                                           Article 112
 1. For the purposes of implementing this Chapter, the
concept of originating products and the methods of               This Chapter and Annex IV shall not apply to relations
administrative cooperation relating thereto are laid down        between the OCT and the French overseas departments.
in Annex II.
                                                                                          Chapter 3
2. The Council, acting unanimously on a proposal
from the Commission, shall adopt any amendment to
Annex II.                                                                              Trade in services
                                                                                          Article 113
3. If, for any product, the concept of originating               1. Trade in services is important for the development
product has not been defined pursuant to paragraph 1 or          of the OCT's economies on account of the increasing
                                                                 role of services in international trade and their
(') OJ No L 29, 1. 2. 1985, p. 1.                                considerable growth potential.
 ---pagebreak--- No C 95/30                           Official Journal of the European Communities                                 11. 4. 91
2. The long-term aim in this area is a progressive                                        Article in
liberalization of trade in services, with due respect for
the OCT's local policy objectives, and taking due               1.    The following products shall be covered:
account of the level of development of the OCT.
                                                                                                             CN code
3. It will be opportune and necessary to develop                 1. Groundnuts in shell or shelled      1202
cooperation in this sector when the outcome of current           2. Groundnut oil                       1508
multilateral trade negotiations is known.                        3. Cocoa beans                         1801
                                                                 4. Cocoa husks, shells and skins and
                                                                    other waste                         1802
                                                                 5. Cocoa paste *                       1803
4. Therefore, amendments or additions to this                    6. Cocoa butter                        1804
Decision may be adopted by the Council, acting by a              7. Cocoa powder                        1805
qualified majority on a proposal from the Commission,
to take account, and to take advantage, of the outcome           8. Raw or roasted coffee               0901 11 to 0901 22
of the multilateral trade negotiations within GATT.              9. Extracts, essences and concentrates
                                                                    of coffee                           2101 10 11 and
                                                                                                        2101 10 19
                                                               M. Cotton not carded or combed           5201
                                                               11. Cotton linters                       1404 20
                          TITLE II                             12. Coconuts                             0801 10
                                                               13. Copra                                1203    1
  COOPERATION IN THE FIELD OF COMMODITIES                      14. Coconut oil                          1513 11 and
                                                                                                        1513 19
                        Chapter 1                              15. Palm oil                             1511
                                                               16. Palm kernel oil                      1513 21 and
Stabilization   of  export earnings from       agricultural                                             1513 29
                   commodities (Stabex)                        17. Palm nuts and kernels                1207 10
                                                               18. Raw hides and skins                  4101 10 to 4101 30,
                         Article 114                                                                    4102 and 4103 10
                                                               19. Leather of bovine animals            4104 10 to 4104 29,
1. With the aim of remedying the harmful effects of                                                     4104 31 11,
the instability of export earnings and to help the OCT                                                  4104 31 19,
overcome one of the main obstacles to the stability,                                                    4104 31 30 and
profitability and sustained growth of their economies, to                                               4104 39 10
support their development efforts and to enable them in        20. Sheep and lamb skin leather          4105
this way to ensure economic and social progress for their
peoples by helping to safeguard their purchasing power,.       21. Goat and kid skin leather            4106
a system shall be operated to guarantee the stabilization      22. Wood in the rough and squared
of export earnings derived from the OCTs exports to                 wood                                4403
the Community or other destinations as defined in              23. Sawn wood                            4407
Article 117, of products on which their economies are          24. Fresh bananas                        0803 00 10
dependent and which are affected by fluctuations in
price or quantity or both these factors.                       25. Dried bananas                        0803 00 90
                                                               26. Tea                                  0902
                                                               27. Raw sisal                            5304 10
                                                               28. Vanilla                              0905
2. In order to attain these objectives, transfers shall be     29. Cloves                               0907
devoted, in accordance with a framework of mutual obli-        30. Wool not carded or combed            5101
gations to be agreed between the relevant authorities of       31. Fine animal hair of Angora goat —    5102 10 50
the country or territory concerned and the Commission               Mohair
in each case, either to the sector, interpreted in the         32. Gum arabic                           1301 20 00
widest possible sense, that recorded the loss of export
earnings and be used there for the benefit of economic         33. Pyrethrum; saps and extracts of
                                                                    pyrethrum                           121190 10 and
operators adversely affected by this loss, or, where
                                                                                                        1302 14
appropriate, to diversification, either for use in other
appropriate productive sectors, in principle agricultural,     34. Essential oils                       3301 11 to 330129
or for the processing of agricultural products.                35. Sesame seed                          1207 40
 ---pagebreak--- 11.4.91                              Official Journal of the European Communities                             No C 95/31
                                                                                       Article 118
                                             CN code
                                                               For the purposes stipulated in Article 114 and for the
                                                               period laid down in Article 154, the amount provided for
36. Cashew nuts and kernels             0801  30               in paragraph 1 (a) (iii) of that Article shall be allocated
37. Pepper                              0904                   to the system. This amount shall cover all commitments
38. Shrimps and prawns                  0306  13 and           under the system. It shall be managed by the
                                        0306  23               Commission.
39. Squid, octopus and cuttlefish       0307  41, 0307 49,
                                        0307  51 and
                                        0307  59                                       Article 119
40. Cotton seed                         1207 20
                                                                1. The overall amount referred to in Article 118 shall
41. Oil cake                            2305, 2306 10,         be divided into a number of equal annual instalments
                                        2306 50, 2306 60
                                        and 2306 90 93
                                                               corresponding to the number of years of application of
                                                               Article 154.
42. Rubber                              4001
43. Peas                                0708 10, 0713 10
                                        and 0713 20            2. Whatever balance remains at the end of each year
44. Beans                               0708 20, 0713 31 to    of application of Article 154 except the last shall be
                                        0713 39 and ex         carried forward automatically to the following year.
                                        0713 90
45. Lentils                             0713 40
46. Nutmeg and mace                     0908 10 and                                    Article 120
                                        0908 20
                                                               The resources available for each year of application are
47. Shea nuts                           1207 92
                                                               made up of the sum of the following:
48. Shea nut oil                        ex 1515 90 40 to ex
                                        1515 90 99
49. Mangoes                             ex 0804 50              1. the annual instalment, plus any amounts available or
                                                                   less any amounts used under Article 121 (1);
2. In all cases of application of the system, the              2. the sums carried forward under Article 119 (2).
Commission shall, in the interests of the country or
territory concerned, consider as products within the
meaning of this Chapter:                                                               Article 121
(a) each product listed in paragraph 1;                         1. If the total amount of the transfer bases in a year of
                                                               application, calculated in accordance with Article 124,
(b) products groups 1 and 2, 3 to 7, 8 and 9, 10 and 11,       and where appropriate reduced in accordance with
     12 to 14, 15 to 17, 18 to 21, 22 and 23, 24 and 25,       Articles 128 to 130, exceeds the amount of resources
    47 and 48.                                                 available in the system for that year, advance use shall be
                                                               made automatically, for each year except the last, of a
                                                               maximum of 25 °/o of the following year's instalment.
                        Article 116
If, 12 months after the entry into force of this Decision,     2. If, after the operation referred to in paragraph 1,
one or more products not contained in the list in Article      the amount of resources available is still less than the
115 but upon which the economies of one or more of the         total amount of the transfer bases referred to in
OCT depend to a considerable extent are affected by            paragraph 1 for the same year of application, the amount
sharp fluctuations, the Council, acting on a proposal          of each transfer basis shall be reduced by 10 % of that
from the Commission, may decide,* not more than six             amount.
months after the presentation of a request by the relevant
authorities of the country or territory concerned, to
include the said product or products in the list, taking       3. If, after the reduction referred to in paragraph 2,
account of factors such as employment, deterioration of        the total amount of the transfers so calculated is less
the terms of trade between the Community and the               than the amount of resources available, the remainder
country or territory concerned, the level of development       shall be shared among all the transfers in proportion to
of the country or territory concerned and the conditions       the amounts by which each transfer was reduced.
which characterize products originating in the
Community.                                                     4. If, after the reduction referred to in paragraph 2,
                                                               the total amount of the transfers which may give rise to a
                        Article 117                            payment exceeds the amount of available resources, the
                                                               Council, having evaluated the situation on the basis of a
The system shall apply to earnings from exports by each        Commission report on the probable development of the
country or territory to the Community of each product          system, shall examine the steps to be taken to remedy
referred to in Article 115 (2).                                that situation, within the terms of this Decision.
 ---pagebreak--- No C 95/32                            Official Journal of the European Communities                                  11.4.91
                         Article 122                            In no case shall the reduction of the difference between
                                                                the reference level and actual earnings be greater than
In the case of any balance remaining from the overall           30 %.
amount referred to in Article 118 after the expiry of the
last year of administration of the system in the period
laid down in Article 154,                                       5. The amount of the transfer shall be the transfer
                                                                basis after application, where relevant, of Articles 128 to
                                                                 130 and 121.
(a) the amounts resulting from the application of the
     percentages referred to in Article 124 (3) and (4)
     shall be repaid to each country or territory in                                     Article 125
     proportion to the deduction or deductions made in
     application of those provisions;                            1. In order to ensure that the system functions effi-
                                                                ciently and rapidly, statistical cooperation shall be
                                                                instituted between the relevant authorities of each
(b) if any balance remains after the application of (a),        country or territory and the Commission.
     the Council shall decide, on a proposal from the
     Commission, on its use.
                                                                2. For the first year of application, the OCT shall
                                                                notify the Commission of:
                         Article 123
                                                                (a) the value of their exports of all goods to all desti-
1. The system shall apply to the earnings from exports               nations for the year preceding the year of
by a country or territory of the products referred to in             application;
Article 115 (2) if, during the year preceding the year of
application, earnings from the export of each product to
all destinations, re-exports excluded, represented at least     (b) the volume of marketed production of the product
5 % of its total earnings from exports of all goods. The             or products in question during the reference period
percentage shall be 4 % in the case of sisal.                        and in the year of application;
                                                                (c) the volume and the value of exports of the product
2. Where, following a natural disaster, a substantial                or products in question to all destinations in the
fall in production of the product in question is recorded            reference period and in the year of application;
during the year preceding the year of application, the
percentage referred to in paragraph 1 shall be calculated       (d) the volume and the value of exports of the product
on the basis of the average export earnings from that                or products in question to the Community during the
product during the three years preceding the year of the             reference period and in the year of application.
disaster.
                                                                3. In subsequent years of administration of the system,
A substantial fall in production shall be taken to mean at      the statistical requirements referred to above shall refer
least 50 % of the average production during the three           only to the year not covered by the information provided
years preceding the year of the disaster.                       in the previous year.
                         Article 124                            4. This information must be sent to the Commission
                                                                not later than 31 March in the year following that of
1. In order to implement the system, a reference level          application. Failure to do so shall result in the country or
and a transfer basis shall be calculated for each country       territory concerned losing ajl transfer rights in relation to
or territory and for exports of each product referred to        the product or products in question for the relevant year
in Article 115 (1) to the Community.                            of application.
2. The reference level shall be constituted by the                                       Article 126
average of export earnings during the period of the six
calendar years preceding each year of application less the       1. The system shall be implemented in respect of the
two years with the highest and lowest figures.                  products listed in Article 115 where they are:
                                                                (a) released for home use in the Community; or
3. The transfer basis shall be constituted by the
difference between the reference level and actual               (b) brought into the Community under the inward
earnings in the calendar year of application, reduced by             processing arrangements in order to be processed.
an amount corresponding to 4,5 °/o of the reference level.
                                                                2. The statistics to be used to carry out the calcu-
4. The reductions referred to in paragraph 3 shall not          lations referred to in Article 124 shall be those calculated
apply if the difference between the reference level and         and published by the Statistical Office of the European
actual earnings is less than ECU 1 million.                     Communities.
 ---pagebreak---   11.4.91                              Official Journal of the European Communities                              No C 95/33
                          Article 127                            situation in respect of each of the products listed in
                                                                 Article 115 (2) exported by that country or territory
 No transfer shall take place if it emerges from the exam-       during that year.
 ination of the dossier to be undertaken by the
 Commission in conjunction with the relevant authorities
•of the country or territory concerned that the fall in          2. The relevant authorities of the country or territory
 earnings from exports to the Community is the result of         concerned and the Commision shall take all possible
 measures or policies involving discrimination detrimental       steps to ensure that the procedures referred to in Articles
 to the Community.                                                127 to 129 are concluded not later than 30 June of the
                                                                 year in question. After this period has elapsed, the
                                                                 Commission shall notify the relevant authorities of the
                          Article 128                            country or territory of the amount of the transfer
 The trasfer basis shall be reduced in due proportion to         resulting from appraisal of the dossier.
 the fall in earnings from exports to the Community of
 the product in question if, after joint examination by the
                                                                 3. Not later than 31 July of the year in question the
 Commission and the relevant authorities of the country
                                                                 Commission shall take decisions concerning all transfers,
 or territory concerned, it appears that such a drop is the
                                                                 except for those i where consultations have not been
 consequence of trade policy measures taken by the
                                                                 concluded.
 country or territory or through its economic operators
 with the aim of restricting supply; such reduction may
 entail the annulment of the transfer basis.
                                                                                          Article 133
                                                                  1. Where application of Articles 123 and 124 gives rise
                          Article 129                            to a transfer basis, the relevant authorities of the country
 Should examination of the trend of the exports of the           or territory concerned shall, in the month following
 country or territory to all destinations, of production of      receipt of the notification referred to in Article 132 (1),
 the product in question in the country or territory             send the Commission a substantial analysis of the sector
 concerned and demand in the Community reveal                    recording the loss of earnings, the causes of the loss, the
 significant changes, consultations shall take place             policies pursued by the authorities and the projects,
 between the Commission and the relevant authorities of          programmes and operations to which they undertake to
 that country or territory to determine whether the              allocate the resources in accordance with the objectives
 transfer basis is to be maintained or reduced, and, if so,      set out in Article 114 (2).
 to what extent.
                                                                 2. Should the relevant authorities of the recipient
                          Article 130                            country or territory intend, as provided for in Article 114
                                                                 (2), to allocate the funds to a sector other than that
 In no case shall any transfer basis for a given product be      where the loss has occurred, they shall communicate to
 greater than the corresponding amount calculated on the         the Commission the reasons for this allocation.
 basis of the exports of the country or territory concerned
 to all destinations.
                                                                 3. Projects, programmes or operations to which the
                                                                 relevant authorities of the recipient country or territory
                          Article 131                            undertake to allocate the transferred resources shall be
                                                                 examined jointly by the Commission and the said auth-
  1. The Commission shall adopt a transfer decision on
                                                                 orities.
 completion of the examination carried out in conjunction
 with the relevant authorities of the country or territory;
 this examination shall bear on the statistical data and the
 calculation of the transfer basis which may give rise to a                               Article 134
 payment.                                                        When agreement is reached on the use of resources, the
                                                                 relevant authorities of the country or territory and the
 2. For each transfer a transfer agreement shall be              Commission shall sign a protocol setting up a framework
 concluded between the Commission and the relevant               of mutual obligations stipulating how the funds are to be
 authorities of the country or territory concerned.              used at the various stages of the operations agreed on.
                          Article 132                                                     Article 135
 1. Provided that the relevant authorities of the                1. The transfer shall be made in ecus upon signature
 country or territory concerned have sent all the                of the transfer agreement referred to in Article 131 (2)
 necessary statistical information by 31 March in the year       into an interest-bearing account, for which presentation
 following that of application, in accordance with Article       of two signatures, of the relevant authorities of the
 125 (4), the Commission shall notify each country or            country or territory and the Commission, shall be
territory not later than the 30 April following of its           required. Any interest shall be credited to this account.
 ---pagebreak--- No C 95/34                               Official Journal of the European Communities                                   11.4.91
2. The funds in the account referred to in paragraph 1                  unforeseeable disruptions beyond the control of the
shall be mobilized as the operations specified in the                   country or territory concerned and of the enterprise
protocol on the use of the funds are implemented, on                    managing the sector concerned. Particular attention
condition that the provisions of Article 136 have been                  shall be paid to adjusting the competitive situation of
complied with.                                                          enterprises to changes in market conditions, or
3. The procedures laid down in paragraph 2 shall be                — for OCT heavily dependent on exports of one mining
applicable by analogy to any counterpart funds                          product, to diversify and broaden the bases of their
generated.                                                              economic growth, notably by helping them to
                                                                        complete development projects and programmes
                                                                        under way where these are seriously jeopardized
                          Article 136                                   owing to substantial falls in export earnings from that
1. Within 12 months of the mobilization of resources                    product.
the relevant authorities of the recipient country or
territory shall send the Commission a report on the use
which they have made of the funds transferred.                      3.     In pursuing these objectives, this support:
2. Should the report referred to in paragraph 1 not be
presented within the time limit set or should it call for          — will be adapted to the economic restructuring needs
comment, the Commission shall send a request for                        of the country or territory concerned,
substantiation to the relevant authorities of the country
or territory concerned, which shall be obliged to reply
thereto within two months.                                         — will take into account at the time of its formulation
                                                                        and implementation the mutual interests of the OCT
                                                                        and the Member States.
3. Once the deadline referred to in paragraph 2 has
expired, the Commission may, having referred the matter
to the Council and having duly informed the relevant
authorities of the country or territory concerned, three                                    Article 138
months after completion of this procedure, suspend
application of decisions on subsequent transfers until the          1. The special financing facility provided for in Article
required information has been provided.                             137 shall be aimed at OCT which export to the
                                                                    Community and which, during at least two of the four
                                                                   years preceding that of the request for aid, have derived
The relevant authorities of the country or territory                either:
concerned shall be notified of this measure immediately.
                                                                    (a) 15 % or more of their export earnings from one of
                          Chapter 2                                      the following products: copper (including cobalt),
                                                                         phosphates, manganese, bauxite and alumina, tin,
   Mining products: Special financing facility (Sysmin)                  iron ore, whether or not in agglomerate form,
                                                                         uranium; or
                          Article 137
                                                                    (b) 20 % or more of their export earnings from all
 1. A special financing facility shall be set up for those               mining products (excluding precious minerals other
OCT whose mining sectors occupy an important place in                    than gold, oil and gas).
their economies and are facing difficulties that are
already perceived or foreseeable in the near future.
                                                                    However, for least-developed OCT, the figure stipulated
2. Its aims are to contribute towards establishing a                in (a) shall be 10 % and the figure stipulated in (b) shall
more solid and wider basis for the development of the               be 12 %.
 OCT while supporting the relevant authorities' efforts:
                                                                    For the calculation of the thresholds referred to in (a)
— to safeguard their mining production and export
                                                                    and (b) earnings shall not include those from mining
     sectors by remedial or preventive action designed to
                                                                    products not covered by the system.
     alleviate the serious consequences for their economies
     of the loss of viability as a result of a decline in their
    production or export capacity and/or export earnings
     in the mining products sector following major tech-            2. Recourse to the special financing facility shall be
     nological or economic changes or temporary or                  possible where, in the light of the aims referred to above:
 ---pagebreak---  11.4.91                                   Official Journal of the European Communities                               No C 95/35
 (a) it is perceived or expected that the viability of one or             concerned, with a view to maintaining, re-estab-
      more enterprises in the mining sector has been or is                lishing or rationalizing at a viable level the
      about to be seriously affected following temporary                  production and export capacity concerned.
      or unforeseeable difficulties — whether technical,
      economic or political — beyond the control of the
      country or territory or undertaking concerned, and
      where such damage to viability leads to or may lead            — Where it is not thought possible to maintain or
      to a significant fall in revenue for the country or                 restore viability, the aid shall be used to broaden the
      territory concerned — assessed in particular on the                 bases of economic growth through the financing of
      basis of a drop in production or export capacities of              viable horizontal or vertical conversion or diversifi-
      the product in question of around 10 % — and/or a                   cation projects or programmes.
      deterioration in its external trade balance.
      Foreseeable damage to viability shall be charac-               — By common agreement, the aim of diversification
      terized by the onset of deterioration of the means of               may also be pursued where the economy is
      production and its impact on the economy of the                    dependent on the mining product in question to a
      country or territory; or                                           significant degree, even where viability can be
                                                                         re-established.
(b) in cases under paragraph 1 (a), it is perceived that a
      substantial fall in export earnings from the mining
      product concerned, in relation to the average for the          — Where Article 138 (2) (b) is applicable, the objective
      two years before that of the request, is seriously                 of diversification shall be pursued through financial
      jeopardizing the completion of development projects                assistance to aid the completion of development
      and programmes under way. To be taken into                         projects and programmes under way outside the
      consideration, such a fall in earnings must:                       mining sector which are in jeopardy.
      — be caused by technical, economic or political
          difficulties and not artificially provoked, directly       2. Any decision to allocate funds to projects or
          or indirecdy, by policies and measures of the              programmes shall take due account of economic interests
          relevant authorities of the country or territory or        and the social implications of such aid in the country or
          the economic operators concerned,                          territory concerned and in the Community and will be
                                                                     adapted to the economic restructuring needs of that
                                                                     country or territory.
      — result in a corresponding fall in total export
          earnings of approximately 10 % at least in the
          year before that of the request.
                                                                     In the case of requests presented under Article 138 (1)
                                                                     (b), the Community and the relevant authorities of the
The said difficulties shall refer to disruptions such as             country or territory concerned shall jointly and systemati-
accidents, serious technical incidents, serious internal or          cally seek to establish the scope and the terms of any aid
external political events, major technological and                   accorded in such a way that such aid does not injure
economic changes or major changes in trade relations                 competing Community mining production.
with the Community.
3. The relevant authorities of a country or territory                The consideration and appraisal of these factors shall be
may request financial aid under the special financing                part of the analysis referred to in Article 140 (2).
facility where the conditions set out in paragraphs 1 and
2 are met.
                                                                     3.     Special attention shall be accorded to:
                           Article 139
1. The aid referred to in Article 138 shall be used in
pursuit of the aims of the facility as set out in Article 137        — processing and transport operations, notably at
(2).                                                                     regional level, and the proper integration of the
                                                                         mining sector in the overall economic and social
                                                                         development of the country or territory,
— Where maintenance or return to viability of the
     mining enterprise or enterprises affected is deemed
     possible and appropriate, the aid shall be used to
     finance projects or programmes, including the                   — preventive operations to minimize any disruptive
     financial restructuring of the enterprise or enterprises            effects by adapting technology, improving the
 ---pagebreak--- N o C 95/36                           Official Journal of the European Communities                                   11. 4. 91
    technical and managerial skills of local staff and          The necessary steps will be taken to expedite appraisal of
    adapting the skills of local staff to enterprise            requests so that the appropriate action may be taken
    management techniques,                                       swiftly.
— stepping up the OCT's scientific and technical
    capacity for the production of new materials.                                          Article 141
                                                                 1.    If necessary, technical assistance for setting up and
                                                                supervising the project may be financed under the special
                        Article 140
                                                                financing facility provided for in Article 142.
1.    The request for aid must include information on
the nature of the problems encountered, the perceived or
expected consequences of the disruption both at local            2.    The procedures applicable to such assistance and
level and at the level of the mining enterprise or enter-       the detailed rules for its implementation shall be those
prises affected and indications in the form of an identifi-      laid down for development finance cooperation.
cation sheet on the measures or actions undertaken or
desired to remedy them.
                                                                                           Article 142
The request shall be made as soon as these consequences
are identified and within a period not exceeding 12              1.    For the purposes specified in Article 137 and for
months.                                                          the period laid down in Article 154, the Community shall
                                                                 allocate the overall amount provided for in paragraph 1
                                                                 (a) (iv) of that Article to cover all its commitments under
2.     Prior to any Community decision a technical,             this special financing facility. The amount allocated to
economic and financial analysis shall be made systemati-         the facility shall be managed by the Commission.
cally of the mining sector concerned in order to assess
both the eligibility of the request and the project or
programme to be undertaken to utilize the aid. That
analysis, which shall be very detailed, shall, in order to       2.    Before expiry of the period laid down in Article
identify the operation, take particular account of world         154, the Council shall decide, on a proposal from the
market prospects and, without prejudice to the first             Commission, on the allocation of any balances remaining
paragraph of Article 139 (2), the situation of the               from the overall amount.
Community market in the products concerned. It shall
also include an analysis of the possible implications of
such an operation for the competing mining products of           3.    The amount of the aid provided for in Article 138
Member States and the possible implications of its               shall be determined by the Commission in the light of
non-implementation for the country or territory                  the funds available under the special financing facility,
concerned. Its objective shall be to ascertain:                  the nature of the relevant projects and programmes, the
                                                                possibilities for co-financing and the relative importance
                                                                 of the mining industry concerned for the economy of the
— whether the viability of the means of production               country or territory.
    concerned has been or is likely to be damaged and
    whether that viability can be restored, or whether
    recourse to diversification measures is more appro-
    priate, or                                                   4.    Aid accorded to a country or territory under the
                                                                 special financing facility may be on-lent to the final
                                                                 borrower on different financial terms which shall be
— whether the fall in export earnings referred to in             established in the financing decision and shall result from
    Article 138 (2) (b) seriously jeopardizes the                an analysis of the aid project conducted on the basis of
     implementation of development projects            and       the usual economic and financial criteria for the type of
    programmes under way.                                        project planned.
                                                                 5.    The analysis referred to in Article 140 shall be
                                                                 financed from resources of the facility.
The analysis shall be carried out in accordance with the
procedures for financial and technical cooperation. It
shall require the close cooperation of the relevant auth-
orities of the country or territory and the economic             6.    In exceptional circumstances arising       out of an
operators concerned.                                             emergency, confirmation and proof of which      will have to
                                                                 be provided initially by the analysis, a         country or
                                                                 territory which so requests may be granted       an advance
3.    A single decision shall be taken on eligibility and        by way of partial pre-financing of the            project or
the financing proposal.                                          programme which it precedes.
 ---pagebreak---  11. 4. 91                               Official Journal of the European Communities                             No C 95/37
                            Title III                              (k) permit the establishment of more balanced economic
                                                                        and social relations and better understanding
        DEVELOPMENT FINANCE COOPERATION                                 between the OCT, ACP States, Member States of
                                                                        the Community and the rest of the world, with a
                                                                       view to achieving a new international economic
                          Chapter 1                                     order;
                     General provisions
                                                                   (1) enable the O C T faced with serious economic and
                           Section 1                                    social difficulties of an exceptional nature resulting
                                                                       from natural disasters or extraordinary circumstances
                           Objectives                                   having comparable effects to benefit from emergency
                                                                        assistance;
                          Article 143
The objectives of development finance cooperation shall            (m) help the least-developed O C T to overcome the
be, through the provision of adequate financial resources              specific obstacles which hamper their development
and appropriate technical assistance, to:                              efforts.                       f
(a) support and promote the efforts of the O C T to
     achieve long-term, self-determined, self-reliant and
     self-sustained    integrated     social, cultural    and                                 Section 2
     economic development, on the basis of mutual
     interest and in a spirit of interdependence;                                              Principles
(b) help raise the standard of living and improve the
                                                                                             Article 144
     well-being of the peoples of the O C T ;
                                                                   Development finance cooperation shall:
(c) promote measures likely to mobilize the capacity for
     initiative of communities and the participation of
     those concerned in the design and implementation of           (a) be implemented on the basis of and be consistent
     development projects;                                             with the development objectives, strategies and
                                                                       priorities established by the relevant authorities of
(d) contribute to the fullest participation of the popu-               the OCT, at local and regional levels, with due
     lation in the benefits of development;                            regard to their respective geographical, social and
                                                                       cultural characteristics, as well as their specific
(e) contribute to the development of the capacity of the               potential;
     O C T to innovate, adapt and transform technology;
(f) contribute to optimal and judicious exploration,               (b) be provided on highly concessional terms;
     conservation, processing, working and exploitation
     of the OCT's natural resources in order to enhance
     the efforts of the O C T to industrialize and to              (c) ensure that resource flows are accorded on a more
     achieve economic diversification;                                 predictable and continuous basis;
(g) provide support for and promote the optimal devel-
                                                                   (d) ensure participation by the O C T in the management
     opment of human resources in the O C T ;
                                                                       and utilization of financial resources and ensure
                                                                       effective decentralization of decision-making powers;
(h) facilitate an increase in the financial flows to the
     O C T which are responsive to the evolving needs of
     the O C T and support the efforts of the O C T to             e) strengthen and utilize, as much as possible, the
     harmonize international cooperation for their devel-              OCT's human resources and existing administrative
     opment through co-financing of operations with                    structures;
     other financing agencies or third parties;
(i) seek new approaches to direct private investment               (f) be flexible and appropriate to the situation in each
     promotion in the O C T ; support the development of               country or territory as well as adapted to the specific
     a healthy, prosperous and dynamic O C T private                   nature of the project or programme concerned;
     sector and encourage local, national and foreign
     private investment flows into the productive sectors
     in the O C T ;                                                (g) be carried out with a minimum of administrative
                                                                       formalities using simple and rational procedures so
(j) encourage intra-OCT and OCT-ACP cooperation                        that projects and programmes may be implemented
     and regional cooperation among them;                              rapidly and efficiently;
 ---pagebreak--- No C 95/38                             Official Journal of the European Communities                                 11. 4. 91
(h) ensure that technical assistance is provided only upon       (f) ensuring the proper, prompt and efficient execution
     the request of the relevant authorities of the country            of projects and programmes.
     or territory concerned and is of the stipulated
     quality, relevant, cost-effective and includes              4. The Community shall be responsible for taking
     arrangements for rapid and effective training of local      financing decisions on projects and programmes.
     replacement personnel.
                                                                                           Article 146
                                                                 Unless otherwise provided in the Decision, all decisions
                                                                 requiring the approval of a party to the association shall
                                                                 be approved, or be deemed approved, within 60 days of
                          Section 3                               notification by the other party.
                           Guidelines
                                                                                            Section 4
                          Article 145
                                                                                        Scope of financing
1. Operations financed under this Decision shall be
implemented by the relevant authorities of the OCT and                                     Article 147
the Community in close cooperation, the concept of
equality between the partners being recognized.                  Within the framework of the Decision, development
                                                                  finance cooperation shall cover:
2. The relevant authorities of the OCT shall be                   (a) capital projects and programmes;
responsible for:
                                                                  (b) rehabilitation of projects and programmes;
(a) defining the objectives and priorities on which the           c) sectoral-type programmes;
      indicative programmes are based;
                                                                  (d) technical cooperation programmes;
 (b) choosing projects and programmes;
                                                                  (e) deployment of flexible resources in support of the
                                                                       efforts of grassroots communities;
(c) preparing and presenting the dossiers of projects and
      programmes;                                                 (f) recurrent costs (including current administrative,
                                                                       operating, and maintenance costs, both local and
 (d) preparing, negotiating and concluding contracts;                  foreign) of new, on-going and completed projects
                                                                       and programmes;
 (e) implementing       and     managing     projects   and       (g) on a case-by-case basis, supplementary expenses
      programmes;                                                      borne by the OCT arising out of, and strictly
                                                                       relating to, the administration and the supervision of
                                                                       projects and programmes financed by the European
 (f) maintaining projects and programmes.                              Development Fund, hereinafter referred to as 'the
                                                                       Fund';
 3. The relevant authorities of the OCT and the
 Community shall be jointly responsible for:                       (h) credit lines, and support of regional payment mech-
                                                                       anisms and export credit operations in the OCT;
 (a) establishing, where necessary, guidelines for devel-          (i) equity participation;
      opment finance cooperation in the framework of the
      partnership referred to in Part 5;                           (j) a combination of all or some of the above
                                                                       components integrated into sectoral development
                                                                       programmes.
 (b) adopting the indicative programmes;
                                                                                            Article 148
 (c) appraising projects and programmes;
                                                                   Sectoral import programmes shall be provided, upon
 (d) ensuring equality of conditions for participation in          request, from the resources of the indicative programme
      invitations to tender and contracts;                         to support the measures taken by the relevant authorities
                                                                   of the country or territory concerned in the sector or
                                                                   sectors for which the assistance is requested in
 (e) monitoring and evaluating the effects and results of          accordance with Article 187. The purpose of import
      projects and programmes;                                     programmes is to contribute to the optimal functioning
 ---pagebreak---  11.4.91                              Official Journal of the European Communities                              No C 95/39
of the productive sectors of the economy, to assist in the                                Section 5
expansion of production and export capacity, to facilitate
the transfer or development of technology and to help                               Sectors of intervention
meet basic human needs. Import programmes may
include the financing of inputs to the productive system                                 Article 152
such as capital and intermediate goods, raw materials,
spare parts, fertilizers, insecticides and supplies to          1. Within the framework of the priorities established
improve health and education services and standards.            by the relevant authorities of the OCT concerned at
                                                                local, national and regional level, support may be given
                                                                to projects and programmes in every sector or area
                                                                referred to in this Decision and may, inter alia, be in:
                         Article 149
Counterpart funds generated from various Community              (a) agricultural and rural development, and in particular
instruments shall, except where otherwise provided for,             food self-sufficiency and food security programmes;
be used in a targeted way for the financing of local
expenditure under:                                              (b) industrialization, artisanal activities, energy, mining
                                                                    and tourism;
(a) Fund projects and programmes within the indicative
     programme;                                                 (c) economic and social infrastructure;
                                                                (d) structural improvement of the productive sectors of
(b) other agreed projects and programmes;                           the economy;
(c) specific budget headings under public expenditure           (e) preservation and protection of the environment;
     programmes of the OCT such as those relating to
     health, education, training, job creation and              (f) prospecting for, exploration and exploitation of,
     protection of the environment.                                 natural resources;
                                                                (g) education and training programmes, basic and
                         Article 150                                applied scientific research and technology, techno-
                                                                    logical adaptation or innovation and the transfer of
1. Recurrent cost financing (to cover current adminis-              technology;
trative, maintenance and operating expenses) may be
granted to a country or territory in order to ensure that
full use is made of investments which are of special            (h) industrial promotion and information;
importance for the economic and social development of
the country or territory concerned and the running of           (i) marketing and trade promotion;
which temporarily constitutes a burden for the country
or territory or other eligible beneficiaries. Such support
                                                                (j) promotion, development and reinforcement of small
may, for new, ongoing or past projects and programmes,
                                                                    and medium-sized local, national and regional enter-
cover current administrative, maintenance and operating
                                                                    prises;
expenses such as:
                                                                (k) support for local, national and regional development
(a) expenditure incurred in the start-up period, for                banks and financial institutions, and for clearing and
     setting up, launching and operating the capital                payment institutions which are designed to promote
     projects or programmes in question;                            regional trade;
                                                                (1) microprojects for grassroots development;
(b) the cost of operating, maintaining and/or managing
     capital projects and programmes implemented
     earlier.                                                   (m) transport and communications, including promotion
                                                                    of sea and air transport;
2. Special treatment shall be accorded to the financing         (n) fisheries development;
of recurrent costs in the least-developed OCT.
                                                                (o) development and optimal utilization of human
                                                                    resources, special account being taken of the role of
                         Article 151                                women in development;
The funds provided under the Decision may be used to
cover the total costs of both the local and foreign expen-      (p) improvement of social and cultural infrastructure and
diture of projects and programmes.                                  services including health, housing, water supply etc.;
 ---pagebreak--- No C 95/40                               Official Journal of the European Communities                                    11. 4. 91
(q) assisting OCT, OCT-ACP and OCT-ACP-EEC                         (c) enterprises of a Community Member State to enable
    professional and business organizations with the aim                them, in addition to their own contribution, to
    of improving production and marketing of products                   undertake productive projects in the territory of a
    on external markets;                                                country or territory;
(r) investment promotion and support measures;
                                                                   (d) OCT or Community financial intermediaries
(s) support for development operations put forward by                   providing financing to small and medium-sized
    economic, cultural, social and educational organiz-                 enterprises, as well as financial institutions promoting
    ations in the framework of decentralized                            and financing private investments in the OCT;
    cooperation, in particular where they combine the
    efforts and resources of OCT organizations and of              (e) groups of producers who are nationals of the OCT;
    their Community counterparts.
2. The projects and programmes may also concern                    (f) award holders and trainees;
operations on specific themes, such as:
                                                                   (g) OCT as well as Community local communities,
(a) protection of natural resources;                                    cooperatives, trade unions, non-governmental organ-
                                                                        izations, and teaching and research institutions to
(b) disaster prevention and preparedness, including                     enable them to undertake economic, cultural, social
    prediction and early-warning systems, with a view to                and educational projects and programmes in the
    reducing the consequences of disasters;                             OCT in the context of decentralized cooperation.
(c) control of endemic human diseases and epidemics;
(d) hygiene and primary health care;                                                         Chapter 2
(e) control of endemic livestock diseases;                                             Financial cooperation
(f) measures to save energy;
                                                                                               Section 1
(g) long-term operations, in general, which extend
    beyond any specific time-scale.                                                       Financial resources
                          Section 6                                                           Article 154
                   Eligibility for financing                       1. For the purposes set out in Title III, Chapter 1, and
                                                                   for a period of five years commencing on 1 March 1990,
                         Article 153                               the overall amount of the Community's financial
                                                                   assistance shall be ECU 165 million.
 1. The following entities or bodies shall be eligible for
financial support provided under this Decision:
                                                                   This amount shall comprise:
(a) OCT, except Greenland;
(b) regional or inter-state bodies to which one or more            (a) ECU 140 million from the Fund, allocated as
    OCT belong and which are authorized by their                        follows:
    relevant authorities;
                                                                          (i) for the purposes set out in Articles 143, 144 and
(c) joint bodies set up by the Community and the OCT                          147, ECU 106,5 million in the form of grants;
    to pursue certain specific objectives.
2. Subject to the agreement of the relevant authorities                  (ii) for the purposes set out in Articles 143, 144 and
of the country/countries or territory/territories                             147, ECU 25 million in the form of risk capital;
concerned, the following shall also be eligible for
financial support:                                                      (iii) for the purposes set out in Articles 114 to 136,.
                                                                              ECU 6 million in the form of grants under the
(a) local, national and/or regional public or semi-public                     Stabex facility;
    agencies, departments or local authorities of the
    OCT and in particular their financial institutions and
    development banks;                                                 (iv) for the purposes set out in Articles 137 to 142,
                                                                              ECU 2,5 million in the form of grants under the
(b) companies and firms of the OCT;                                           Sysmin facility;
 ---pagebreak---  It.^t                                                     Crucial ] o u m a l o ^ the European Communities                                               l^oC^B^l
^ b ^ o r the purposes set out in Articles t ^ , t ^ and 1 ^ ,                                                                  action ^
     EC^Cl^^ million f^rom the Bank in the t e r m o r loans
     f^rom o ^ n resources in accordance ^vith the terms
     and conditions provided ^or by its statute. These
     loans shall be subject to the provisions or Articlel^^
     on interest rate subsidies.
                                                                                          1.     Projects or p r o g r a m m e s m a y b e h n a n c e d b y grant
                                                                                         or by risk capital f^romtheEund,or by loans f^romthe
^.     The amount referred to in p a r a g r a p h t ^ ^ s h a l l                       Bank^so^n resources, or jointly by t^vo or more of^ these
be allocated as f^ollo^s^                                                                means o^ financing.
^    ECU ^D,^ million to finance projects and
     programmes,^vhich shall be broken do^vn as ^ollo^vs^                                ^.     The methods o^ financing f^or each project or
                                                                                         programme shall be determined jointly by the relevant
       ri^nited          Kingdom O C T ^ E C U . . . m i l l i o n s                     authorities of thecountry or territory or countries and
                                                                                         territories concerned and the Community by reference
      ^ErenchCCT^EC^U...millions                                                         to^
     ^LoutchCoCT^ECU...millions                                                          ^    t h e l e v e l o f d e v e l o p m e n t , t h e geographical situation
                                                                                              and economic and financial circumstances of^these
^    ECU . . . million to nuance regional projects and                                        OCT^
     programmes in the C C T , including regional
     programmes to develop trade and services under
     Articled                                                                            ^    the nature of^ the project or programme, its likely
                                                                                              economic and financial return as v^ell as its social
^    E C l l D m i l l i o n t o ^ i n a n c e t h e i n t e r e s t rate subsidies           and cultural impacts and
     referred to in Article 1 ^
                                                                                         ^    in the case o^ loans, factors guaranteeing their
^    a special allocation or E o e U ^ m i l l i o n , o ^ h i c h ^                          servicing.
       ri^ ECU ^ million^oremergency aid asprovided
            ^or in Article t ^ ^ a n d                                                   ^.     financial assistance may be made available to or
                                                                                         through the O C T concerned or, subject to their
      ^     EC^U 1 million to aidrefugees, returnees and                                 agreement, either through eligible financial institutions
            displaced persons as provided ^or in Article t ^ ^                           or directly to any other eligible benenciary^
     riii^ should the appropriations provided ^or under
                                                                                         ^.     ^ h e r e financial assistance is granted to the final
            one of^ the Articles referred to above be
                                                                                         recipient through an intermediary^
            exhausted before the expiry o^ this Precision,
            transf^ersmay be made f^romthe appropriations
            provided ^or in the other Articled                                           ^    the terms on ^hich the assistance may be made
                                                                                              available by the intermediary to the final recipient
     ^      on the expiry of^this decision, appropriations                                   shall be laid do^vn in the financing agreement or
            not committed ^ e m e r g e n c y assistanceor aid                                loan contracts and
            ^or refugees, returnees and displaced persons
            shall be returned to the Eund for the purpose of^                            ^    any financial beneht accruing to the intermediary
            financing other operations coming within the                                     fromthetransactionshall be used^ordevelopment
            scope of^ development finance cooperation,                                        purposes, on the terms laid d o ^ n in the financing
            unless the Council decides other^ise^                                             agreement or the loan contract, after taking into
                                                                                              account administrative costs,e^changeandflnancial
      ^     should all the special appropriations be used                                     risks, and the cost or technical assistance given to the
            before the e^piryo^thisL^ecision,the Council                                      f^inal recipient.
            shall adopt, on a proposal from                                     the
            Commission,appropriate measures to deal ^dth
           the situations referred to in Articles 1 ^ and
                                                                                         L      Risk capital may be provided inthe^ormof^ loans
^.     ^fhe Bank shall administer loans from its o ^ n                                   or equity participation.
resources, including interest rate subsidies, and risk
capital. All other financial resources provided ^or in this                              ^   In the case oilcans, it may be provided mainly in the
L^ecisionshallbeadministered by the commission.                                              formoL
^.     Eurtheramountsof^ Community financing shallbe                                           ri^ subordinated loans,^hich shall be redeemed and
adoptedf^or the second nve^year period coveredby this                                                in respect o ^ h i c h interest, if^any,shall be paid
LOecision.                                                                                           only aRer other claims have been settled^
 ---pagebreak--- No C 95/42                             Official Journal of the European Communities                                  11. 4. 91
    (ii) conditional loans, the servicing and/or the             (c) the amount of the interest rate subsidy calculated in
         duration of which shall be linked to the                     terms of its value at the times of disbursement of the
         fulfilment of certain conditions with regard to              loan shall be charged against the amount of grants
         the performance of the project financed such as              and paid direct to the Bank;
         profit or target output. The specific terms shall
         be laid down when the loan is made.
                                                                 (d) the duration of loans made by the Bank from its own
                                                                      resources shall be governed by terms stipulated on
(b) In the case of equity participation, it may be                    the basis of the economic and financial charac-
    provided to acquire temporary minority holdings on                teristics of the project, but may not exceed 25 years.
    behalf of the Community in the capital of OCT                     These loans shall normally comprise a period of
    enterprises or institutions financing development                 grace fixed by reference to the construction period
    projects in the OCT or of OCT financial institutions              and the cash flow needed for the project.
    promoting and financing private investment in the
    OCT. Such holdings shall be transferred to
    inhabitants or institutions of the OCT or as                                           Article 158
    otherwise agreed with the relevant authorities of the
    country or territory concerned, once the conditions          The Bank shall:
    specified for the purpose are met.
                                                                 (a) contribute, through the resources it manages, to the
(c) The terms of risk capital operations shall depend on              economic and industrial development of the OCT
    the characteristics of each project or programme                  and on a regional scale; and to this end, finance in
    financed and shall in general be more favourable                  the first place, productive projects and programmes
    than those of subsidized loans. In the case of loans              in industry, agro-industry, tourism, mining and
    the interest rate shall not, in any case, exceed 3 °/o.           energy and in transport and telecommunications
                                                                      linked to these sectors. These sectoral priorities shall
2. In order to minimize the effects of exchange rate                  not exclude the possibility of the Bank's financing,
fluctuations, the problem of exchange rate risk shall be              from its own resources, productive projects and
dealt with in the following way:                                      programmes in other sectors, including commercial
                                                                    . agriculture;
(a) in the case of risk capital operations designed to
    strengthen an enterprise's own funds, the exchange            (b) establish close cooperation links with local and
     rate risk shall as a general rule be borne by the                regional development banks and with banking and
     Community;                                                       financial institutions of the OCT;
(b) in the case of risk capital financing for investment by       (c) in consultation with the relevant authorities of the
     private sector firms and small and medium-sized                  country or territory concerned, adapt the
     enterprises, hereinafter referred to as 'SMEs', the              arrangements and procedures for implementing
     exchange rate risk shall be shared by the                        development finance cooperation, as set out in this
     Community, on the one hand, and by the other                     Decision, if necessary, to take account of the nature
     parties involved, on the other. On average, the                  of the projects and programmes and to act in
     foreign exchange risk shall be shared equally.                   accordance with the objectives of this Decision,
                                                                      within the framework of the procedures laid down
                                                                      by its statute.
                         Article 157
Loans from the Bank's own resources shall be granted on
the following terms and conditions:                                                        Article 159
                                                                  The relevant authorities of the OCT concerned shall, in
(a) the rate of interest before subsidy shall be the rate         respect of loans granted or equity participation under the
     applied by the Bank for the currencies, duration and         Decision, and in respect of which they have given their
     repayment conditions adopted for the loan on the             written approval:
     day of signature of the contract;
(b) this rate shall be reduced by means of a 4 % subsidy.         (a) grant exemption from all national or local taxes,
     The rate of subsidy shall be automatically adjusted               fiscal charges on interest, commissions and amorti-
     so that the interest rate borne by the borrower will              zation of loans due in accordance with the law or
     be neither less than 3 % nor more than 6 % for a                  laws of the country or territory concerned;
     loan contracted at the reference rate. The reference
     rate adopted for calculating the adjustment in the           (b) place at the disposal of the beneficiaries the currency
     rate of subsidy shall be the rate for the ECU applied            necessary for the payment of interest, commission
     by the Bank for a loan with the same conditions as                and the amortization of loans due under financing
     to duration and repayment on the day of signature                contracts granted for the implementation of projects
     of the contract;                                                  and programmes on their territories;
 ---pagebreak---  11. 4. 91                               Official Journal of the European Communities                                No C 95/43
 (c) make available to the Bank, the foreign currency               (f) projects of a regional or inter-regional nature.
      necessary for the transfer of all sums received by it in
      national currency at the exchange rate applicable
     between the ECU, or other currencies of transfer,              3. Co-financing may be in the form of joint or parallel
      and the national currency at the date of the transfer,        financing. Preference will be given in each case to the
     which represent the net revenue and proceeds from              solution which is more suitable from the point of view of
     transactions involving the acquisition by the                  cost-effectiveness.
      Community of holdings in the capital of companies
     or firms.
                                                                    4.     With the agreement of the parties concerned:
                          Article 160                               (a) measures shall be taken to coordinate and harmonize
                                                                         operations of the Community and those of other
Special treatment shall be accorded to the least-
                                                                         co-financing bodies, in order to minimize the
developed OCT when determining the volume of the
                                                                         number of procedures to be undertaken by the
financial resources which such OCT may expect from
                                                                         relevant authorities of the OCT and to render those
the Community for the purpose of their indicative
                                                                         procedures more flexible, notably as regards:
programmes. These financial resources shall be combined
with more favourable terms of financing, having regard
to the economic situation and the nature of the needs                      (i) the needs of other co-financing bodies and reci-
specific to each country or territory. They shall consist                      pients;
essentially of grants, and, in appropriate cases, of risk
capital or loans from the Bank, having regard in                          (ii) the choice of projects to be co-financed and the
particular to the criteria laid down in Article 155 (2).                       arrangements for carrying them out;
                                                                         (iii) the harmonization of works, supply and services
                                                                               contracts rules and procedures;
                           Section 3
                                                                         (iv) the payment terms;
                          Co-financing                                    (v) the rules of eligibility and competition;
                                                                        (vi) the margin of preference granted to OCT enter-
                          Article 161                                          prises;
 1. The financial resources provided for in this
Decision may be applied, at the request of the relevant            (b) the process of consultation and coordination with
authorities of the OCT, to co-financing (undertaken in                  other donors and co-financiers should be streng-
particular with development agencies and institutions,                  thened and developed, where possible, through the
Community Member States, OCT, ACP States, third                         establishment        of      co-financing     framework
countries or international or private financial institutions,           agreements, and co-financing              policies and
firms, or export credit agencies).                                      procedures should be reviewed to ensure effec-
                                                                        tiveness and the best terms possible;
2. Special consideration shall be given to the possi-
bility of co-financing in the following cases, among               (c) the Community may provide the other co-financing
others:                                                                 bodies with administrative help or may act as a lead
                                                                        or coordinating agency for projects part-financed by
(a) large-scale projects which cannot be financed exclu-                it in order to facilitate the implementation of
     sively by any one source of financing alone;                       co-financed projects or programmes.
(b) projects in which Community participation, and an
     input of its project expertise, might facilitate the                                      Section 4
     participation of other additional sources of finance;
                                                                                             Microprojects
(c) projects which may benefit from a blend of conces-
     sionary and non-concessionary financing;
                                                                                              Article 162
(d) projects which may be broken down into subprojects
     which could be eligible for financing from different          1. In order to respond to the development needs of
     sources;                                                      local communities, the Fund shall, at the request of the
                                                                   relevant authorities of the country or territory
(e) projects for which a diversification of financing may          concerned, participate in the financing of microprojects
     lead to an advantageous solution from the point of            at local level which:
     view of the financing and investment costs and of
     other aspects of the implementation of the said               (a) have an economic and social impact on the life of
     projects;                                                          the people,
 ---pagebreak--- No C 95/44                               Official Journal of the European Communities                                  11. 4. 91
(b) meet a demonstrated and observed priority need, and            (b) may also cover the financing of immediate measures
                                                                         to make damaged structures and equipment opera-
(c) will be undertaken at the initiative and with the                    tional again and to ensure minimum viability;
     active participation of the local community which
     will benefit therefrom.
                                                                    (c) shall be non-reimbursable and made available quickly
                                                                         and easily.
2.     Contributions for microprojects shall be made:
(a) by the local community concerned, in kind or in the            2. The Community shall take adequate steps to
     form of services or cash and adapted to its capacity          facilitate speedy action which is required to meet the
     to contribute;                                                 immediate needs for which emergency assistance is
                                                                   intended. To this end:
(b) by the Fund, in which case the contribution shall not
     normally exceed three-quarters of the total cost of
     each project and may not exceed ECU 300 000;                   (a) funds provided under emergency assistance must be
                                                                         fully committed and disbursed and action completed
(c) exceptionally, by the country or territory concerned,                within 180 days of the establishment of the
     either in the form of a financial contribution or                   implementation arrangements unless otherwise
     through the use of public equipment or the supply of                stipulated by common agreement;
     services.
                                                                    (b) where the funds made available have not all been
3. The amounts representing the Fund's contribution                      fully disbursed within the time limit set, or such
shall be drawn from the grant allocation of the national                 other agreed time limit as referred to in paragraph
indicative programme.                                                    (a), the balance shall be paid back into the special
                                                                         appropriation referred to in Article 154 (2) (d);
4. Special priority shall be accorded to the preparation
and implementation of microprojects in the least-                   (c) the detailed rules for the allocation and implemen-
developed OCT.                                                           tation of emergency assistance shall be the subject of
                                                                         emergency and flexible procedures;
                          Article 163
With the agreement of the relevant authorities of the               (d) funds may be used for the retroactive financing of
OCT concerned, at the request of the local communities                   immediate relief measures undertaken by the OCT
concerned in the OCT and in accordance with the                          themselves.
provisions on multiannual microproject programmes in
Article 196, OCT and Community non-profit-making
organizations may, in addition to the possibilities of                                       Article 165
co-financing, coordinate, supervise or implement indi-
vidual microprojects and/or multiannual microproject                 1. Assistance may be granted to OCT taking in
programmes.                                                         refugees or returnees to meet acute needs not covered by
                                                                    emergency assistance, and to implement in the longer
                                                                    term projects and action programmes aimed at self-suffi-
                                                                    ciency and the integration or reintegration of such
                           Section 5                                people.
                      Emergency assistance
                                                                    2. Similar assistance, as set out in paragraph 1, may be
                          Article 164                               envisaged to help with the voluntary integration or rein-
                                                                    tegration of persons who have had to leave their homes
 1. Emergency assistance shall be accorded to OCT                   as a result of conflicts or natural disasters. In
 faced with serious economic and social difficulties of an          implementing this provision account shall be taken of all
 exceptional nature resulting from natural disasters or             the factors leading to the displacement in question,
extraordinary circumstances having comparable effects.              including the wishes of the population concerned and the
The assistance, which is intended to make, by the most              responsibilities of the government in meeting the needs
 suitable means, a real contribution to remedying the               of its own people.
 immediate difficulties:
 (a) shall be sufficiently flexible to take any form adapted         3< Underlining the developmental nature of the
     to the circumstances, including the supply of a wide            assistance granted under this Article, assistance may be
      range of relief goods and services and/or the distri-         combined with the indicative programme funds of the
     bution of cash to victims;                                     country or territory concerned.
 ---pagebreak--- 11. 4. 91                             Official Journal of the European Communities                             No C 95/45
4. Such assistance shall be administered and                    (b) accord fair and equitable treatment to such investors;
implemented under procedures permitting flexibility and
rapid action. Special attention shall be paid to the most
effective manner of providing such assistance to the            (c) take measures and actions which help to create and
population concerned. Conditions for payment and                     maintain a predictable and secure investment climate
implementation shall be laid down case by case. The                  as well as enter into negotiations on agreements
assistance may be implemented, if the relevant authorities           which will improve such a climate;
of the country or territory so agree, in conjunction with
specialized organizations, including those of the United
Nations, or by the Commission direct.                           (d) promote effective cooperation amongst OCT
                                                                     economic operators and between them and those of
                                                                     the Community in order to increase the flow of
                                                                     capital, management skills, technology and other
                        Article 166                                  forms of know-how;
Emergency assistance contracts shall be awarded on the
basis of the relevant rules provided for in Chapter 5,
Section 5.                                                       (e) facilitate a greater and more stable flow of resources
                                                                     from the Community private sector to the OCT by
                                                                     contributing to the removal of obstacles which
                        Article 167                                  impede the OCT's access to international capital
                                                                     markets, and in particular within the Community;
Post-emergency action, aimed at physical and social
rehabilitation necessary as a result of natural disasters or
extraordinary circumstances having comparable effects,          (f) create an environment which encourages the devel-
may be undertaken with Community assistance under                    opment of financial institutions and the mobilization
this Decision. Post-emergency needs may be covered by                of resources which are essential to capital formation
other resources, in particular the counterpart funds                 and the growth of entrepreneurship;
generated by Community instruments, the special appro-
priation for refugees, returnees, and displaced persons,
the indicative programmes of the OCT or a combination            (g) promote the development of enterprises by taking
of these different elements.                                         such steps as are necessary to improve the business
                                                                     environment and, in particular, foster a legal, admin-
                                                                     istrative and incentive framework which is conducive
These needs may also be covered, subject to the                      to the emergence and development of dynamic
provisions of Article 154 (2) (d), by the unexpended                 private sector enterprises including grassroots oper-
balance of the special appropriation for emergency                   ations;
assistance remaining upon expiry of this Decision.
                                                                 (h) strengthen the capacity of local institutions in the
                                                                     OCT to provide the range of services which can
                        Chapter 3                                    encourage greater local participation in business
                                                                     activity.
                         Investment
                                                                                          Article 169
                          Section 1                              In order to encourage private investment flows and the
                                                                 development of enterprises, efforts should be made under   \
                                                                 the Decision, in cooperation with other interested
                    Investment promotion
                                                                 bodies, to:
                         Article 168                             (a) support efforts aimed at promoting European private
The relevant authorities of the OCT and the                          investment in the OCT by organizing discussions
Community, recognizing the importance of private                     between any interested country or territory and
investment in the promotion of their development                     potential investors on the legal and financial
cooperation and acknowledging the need to take steps to              framework that the OCT might offer to investors;
promote such investment, shall:
                                                                 (b) encourage the flow of information on investment
(a) implement measures to encourage participation in                 opportunities by organizing investment promotion
     their development efforts by private investors who              meetings, providing periodic information on existing
     comply with the objectives and priorities of                    financial or other specialized institutions, their
     EEC-OCT development cooperation and with the                    facilities and conditions and encouraging the estab-
     appropriate laws and regulations;                               lishment of focal points for such meetings;
 ---pagebreak--- No C 95/46                              Official Journal of the European Communities                                  11. 4. 91
(c) encourage the dissemination of information on the                                       Article 171
    nature and availability of investment guarantees and
    insurance mechanisms to facilitate investment in the          In addition to the resources provided for above, the
    OCT;                                                          relevant authorities of the country or territory or
                                                                  countries or territories may use the resources of the indi-
                                                                  cative or regional programme, inter alia, for:
(d) provide assistance to SMEs in the O C T in drawing
    up and obtaining equity and loan financing on
    optimal terms and conditions;                                 (a) financing schemes in favour of SMEs;
(e) explore ways and means of overcoming or reducing              (b) encouraging the setting-up or the strengthening of
    the host country risk for individual investment                    local or regional financial institutions in order to
    projects which could contribute to economic                        enable them effectively to support private sector
    progress;                                                          needs;
(f) provide financial and technical assistance to the             (c) appropriate     and    effective  support  for    export
    O C T in:                                                          promotion;
     (i) creating or strengthening their capacity to
         improve the quality of feasibility studies and the       (d) providing general or specific technical cooperation to
         preparation of projects in order that appropriate             cater for private sector needs.
         economic and financial conclusions might be
         drawn;
                                                                                           Article 172
    (ii) producing integrated project management mech-
         anisms covering the entire project development           The financing of directly productive projects may
         cycle within the framework of the development            concern new investment as well as the rehabilitation or
         programme of the country or territory.                   utilization of existing capacity.
                          Section 2                                                        Article 173
                                                                  Where the financing is undertaken through an
                     Investment financing                         on-lending body, it shall be the responsibility of that
                                                                  body to select and appraise individual projects and to
                                                                  administer the funds placed at its disposal in accordance
                         Article 170                              with the provisions of this Decision and by mutual
                                                                  agreement between the relevant authorities of the O C T
1.    With a view to assisting the implementation of              and the Community.
directly productive investment, both public and private,
contributing to the economic and industrial development
of the OCT, the Community shall provide financial
assistance, subject to the provisions laid down in Chapter                                  Section 3
2 of this Title, in the form of risk capital and/or loans
from the Bank's own resources. This financial assistance
may be used, inter alia, for:                                                           Investment support
(a) increasing, directly or indirectly, the own resources
                                                                                           Article 174
    of public, semi-public or private enterprises of the
     O C T and providing financing in the form of loans           In order to attain effectively the various objectives of the
    for investment in such enterprises;                           Decision in respect of private investment promotion and
                                                                  to achieve a multiplyer effect, the Bank and/or the
(b) supporting productive investment projects and                 Commission shall contribute:
    programmes identified and promoted by the Centre
    for the Development of Industry and the Technical             (a) financial assistance, including equity holdings;
    Centre for Agricultural and Rural Cooperation;
                                                                  (b) technical assistance;
(c) financing schemes in favour of SMEs.
                                                                  (c) advisory services;
2.    In order to achieve the objectives set out in
paragraph 1, a significant part of risk capital shall be
devoted to supporting private sector investment.                  (d) information and coordination services.
 ---pagebreak---  11. 4. 91                             Official Journal of the European Communities                               No C 95/47
                          Article 175                                                      Article 176
 1. The Bank shall utilize risk capital resources to             The relevant authorities of the OCT may, to encourage
supplement the activities aimed at promoting and                 the promotion and development of their respective
providing support for the private sectors in the OCT. To         private sectors, use the resources of the indicative
this end, risk capital may be used to:                           programme for:
(a) provide direct loans for the investment in public,           (a) supporting the development of enterprises, by
     semi-public and private enterprises, including SMEs,            providing      training,     assistance   in    financial
     of the OCT;                                                     management and project preparation, specialized
                                                                     business start-up services and development and
                                                                     management services, and by encouraging tech-
(b) increase the own resources, or resources treated as              nology transfers;
     such, of public, semi-public or private enterprises
     through direct holdings in the name of the
     Community;                                                  (b) providing appropriate and effective support for
                                                                     investment promotion, including the provision of
                                                                     assistance to promoters;
(c) take shares, with the agreement of the relevant auth-
     orities of the OCT concerned, in the capital of             (c) supp&rting the setting-up or the strengthening of
     financial institutions promoting private investment in          local or regional financial institutions in the OCT to
     OCT;                                                            finance export operations;
(d) provide finance for OCT financial institutions or,           (d) financing imports of intermediate materials needed
     with the agreement of the relevant authorities of the           for the export industries of a country or territory
     country or territory concerned, for OCT and/or                  which so requests;
     Community promoters wishing to invest, in addition
     to their own contribution, in EEC-OCT joint                 (e) credit lines for SME;
     ventures in order to reinforce the own resources of
     OCT enterprises;
                                                                 (f) providing appropriate and effective support for
                                                                     export promotion;
(e) with the agreement of the relevant authorities of the
     country or territory or countries or territories            (g) supporting the improvement of the investment
     concerned, assist financial intermediaries of the OCT           climate including the legal and fiscal framework for
     or the Community involved in financing SME in the               business, and the development of services in support
     OCT to:                                                         of the enterprise sector so as to provide enterprises
                                                                     with advisory services in the legal, technical and
       (i) acquire shareholdings in SME of the OCT;
                                                                     managerial fields;
      (ii) finance shareholdings in SME of the OCT by
           OCT private investors and/or Community                (h) providing technical cooperation to reinforce the acti-
           promoters in accordance with subparagraph (d);            vities of bodies in the OCT working for the devel-
                                                                     opment of SMEs;
     (iii) on-lend in order to finance investment in SMEs
           of the OCT;
                                                                 (i) implementing appropriate programmes for vocational
                                                                     training and developing the capacity of individual
(f) assist with the restructuring or recapitalization of             entrepreneuers, particularly in the small-scale and
     financial institutions of the OCT;                              informal sectors;
(g) finance specific studies, research or investment for         (j) providing assistance for the mobilization of local
     the preparation and identification of projects;                 savings, development of financial intermediaries and
     provide assistance, including training, management              of new financial instruments, rationalization of
     and investment-related services, to enterprises in the          enterprise promotion policies and encouragement of
     context of the Bank's operations during the                     foreign investment;
     pre-investment period or for rehabilitation purposes
     and, where appropriate, contribute to the start-up          (k) financing ventures undertaken by cooperatives or
     costs, including investment guarantee and insurance             local communities in the OCT and the creation or
     premiums, necessary to ensure that the investment               strengthening of guarantee funds for SME.
     decision is taken.
                                                                                          Article 177
2. Where appropriate, loans to finance investment,
both directly or indirectly, as well as of sectoral support      In order to mobilize external investment resources, both
programmes, shall be provided from the Bank's ow*i               private and public, particular efforts should be made to
resources.                                                       exploit the possibilities of co-financing or attracting
 ---pagebreak--- N o C 95/48                             Official Journal of the European Communities                                  11.4.91
parallel financing      for    the    various    projects  or                                Chapter 4
programmes.
                                                                                       Technical cooperation
                         Article 178
In assisting the efforts of the relevant authorities of the                                   Article 181
O C T to invest in PMDT, in accordance with Title II,
particular attention shall be paid to supporting optimal          Technical cooperation shall assist the O C T in the devel-
use of existing capacity of the country or territory              opment of their local and regional manpower resources
concerned and the needs for rehabilitation.                        and the sustained development of their institutions, and
                                                                   contribute to the achievement of project and programme
                                                                   goals. To this end:
                         Article 179
In order to support the promotion of investment in the             (a) support through the provision of technical assistance
O C T and with due regard to the complementary of their                 shall be made available only at the request of the
roles, the Commission and the Bank shall closely coor-                  relevant authorities of the country or territory or
dinate their activities in this field.                                  countries or territories concerned;
The Commission and the Bank shall, with the assistance
of Member States and the OCT, ensure effective coordi-             (b) technical cooperation shall be cost-effective and
nation at the operational level among all parties involved              relevant to the need for which it is intended, and
in supporting investment in the OCT.                                    also facilitate the transfer of know-how and increase
                                                                        local and regional capabilities;
                                                                   (c) efforts shall be made to encourage the participation
                                                                        of O C T experts, consultancy firms, educational and
                          Section 4                                     research institutions in contracts financed by the
                                                                        Fund and to make greater use of O C T manpower
            Current payments and capital movements                      through the secondment of O C T local officials as
                                                                        consultants to an institution in their own country or
                                                                        territory or a neighbouring country or territory, or
                          Article 180                                   to a regional organization;
 1.    With regard to capital movements linked with
investment and to current payments, the relevant auth-             (d) the O C T may, on a local or regional basis, use the
orities of the O C T and the Member States of the                       instruments and resources of development finance
Communities shall refrain from action in the field of                   cooperation to develop knowledge of local and
foreign exchange transactions which would be incom-                     regional manpower constraints and potential,
patible with their obligations under this Decision                      establish a register of O C T experts, consultants and
resulting from the provisions on trade in goods and                     consultancy firms suitable for employment on Fund
services, establishment and industrial cooperation. These               projects and programmes, and identify ways of
obligations shall not, however, prevent the adoption of                 employing qualified local and regional personnel on
the necessary protection measures should they be                        Fund projects;
justified by reasons relating to serious economic diffi-
 culties or severe balance-of-payments problems.
                                                                   (e) technical assistance between the O C T and between
 2.    In respect of foreign exchange transactions linked               the O C T and ACP States shall be supported through
with investment and current payments, the OCT, on the                    the instruments of development finance cooperation
 one hand, and the Member States, on the other, shall                    in order to enable the O C T to exchange with each
 avoid, as far as possible, taking discriminatory measures               other and with the ACP States technical assistance
 vis-d-vis each other or according more favourable                       and management experts;
 treatment to third States, taking full account of the
 evolving nature of the international monetary system, the
 existence of specific monetary arrangements and                    (f) action programmes for long-term institution building
 balance-of-payments problems.                                           and staff development shall be an integral part of
                                                                         project and programme planning, account being
                                                                         taken of the necessary financial requirements;
 In the event of such measures or treatment becoming
 unavoidable, they shall be maintained or introduced in
 accordance with accepted international monetary rules              (g) with a view to reversing the brain drain from the
 and every effort shall be made to minimize any adverse                  OCT, the Community shall assist the relevant auth-
 effects on the parties affected.                                        orities of the O C T which so request in facilitating
 ---pagebreak---  11. 4. 91                             Official Journal of  European Communities                               No C 95/49
     the return of qualified O C T inhabitants resident in     (f) exchanges of executive and specialized staff,
     developed countries through appropriate resettlement          students, research workers, motivators and heads of
     incentives;                                                   social or cultural groups or associations;
(h) project and programme appraisal shall take due             (g) the granting of study or training awards, particularly
     account of local human resources constraints and              to persons already in employment and requiring
     ensure a strategy favourable to the promotion of              further training;
     such resources;
                                                               (h) the organization of seminars or sessions for training,
(i) technical assistance personnel shall be qualified for          further training and information;
     the specific tasks as defined in the request from the
     country or territory or countries or territories and
     shall be integrated within the beneficiary O C T         (i) the setting-up or strengthening of information and
*     institution;                                                 documentation       instruments,     particularly     for
                                                                   exchanges of know-how, methods and experience
                                                                   between the O C T and between them and the ACP
(j) the effective training of local personnel shall be part        States and the Community;
     of the assignment of technical assistance personnel in
     order to phase out technical assistance and to use
     exclusively and permanently local personnel for staff    (j) cooperation between or twinning of institutions of
     projects;                                                     the OCT, the ACP States and the Community,
                                                                   particularly universities and other training and
(k) cooperation shall include arrangements to enhance              research establishments;
     the capacity of the O C T to build up their own
     expertise and improve the technical skills of their
                                                              (k) support for significant cultural events.
     own consultants, consulting companies or firms;
(1) special attention should be given to the development      3.     Technical cooperation related to specific operations
     of the OCT's capacities in project and programme         shall include, inter alia:
     planning, implementation and evaluation.
                                                              (a) technical, economic, statistical, financial           and
                           Article 182                             commercial studies, and research and surveys
                                                                   required to prepare projects or programmes,
 1.    Technical cooperation may be of a general or                including those concerning investment;
specific nature.
                                                              (b) preparation of projects and programmes;
2.     Technical cooperation of a general nature shall
include, inter alia:
                                                              (c) execution      and    supervision   of    projects    and
                                                                   programmes;
(a) development       studies, studies on prospects and
     resources for    economic development and diversifi-
     cation in the   OCT, and on problems of interest to      (d) implementation of temporary measures required for
     the O C T as a  whole or to any group of O C T ;              the establishment, launching, operation and main-
                                                                   tenance of a specific project;
(b) sectoral or product studies;
                                                              (e) monitoring and evaluation of operations;
(c) the provision of experts, advisers, technicians and
     instructors for specific assignments and for limited     (f) integrated training,       information    and    research
     periods;                                                      programmes.
(d) the supply of teaching, experimental, research and
     demonstration equipment;                                                          Article 183
                                                              The Community shall take practical measures to increase
(e) general information and documentation, including          and improve the information placed at the disposal of
     statistics, to promote the development of the O C T      the relevant authorities of the O C T concerning the avai-
     and achieve the aims of cooperation;                     lability and qualifications of relevant consultants.
 ---pagebreak--- No C 95/50                              Official Journal of the European Communities                                    11. 4. 91
                         Article 184                                    adopt and what staff he intends to employ and the
                                                                        strategy for promoting OCT local and/or regional
1. The choice of whether to use the services of                         capabilities once the contract is put into effect;
consultancy companies or firms or individual experts
shall depend on the nature of the problems and the scale
and complexity of the technical means and management               (f) the Community shall provide the relevant authorities
resources required as well as the comparative cost of the               of the recipient OCT with detailed information on
two solutions. In addition, measures shall be taken to                  the full cost of technical assistance in order to enable
ensure that recruiters can distinguish clearly between                  the OCT to negotiate the contracts in a cost-
different levels of competence and experience on an                     effective manner.
international level. The choice of contractors and their
staff shall be governed by the following criteria:
                                                                                             Article 185
(a) professional skills (technical and training ability) and       In order to enhance the OCT's capacity to build up their
     human qualities;                                              technical skills and improve the know-how of their
                                                                   consultants, cooperation partnership arrangements
(b) respect for the cultural values and the political and          between consultancy firms, consulting engineers, experts
     administrative circumstances of the country or                and institutions of the Member States and of the OCT
     territory or countries or territories concerned;              shall be encouraged. To this end, every effort shall be
                                                                   made to:
(c) knowledge of the language necessary for the
     execution of the contract;                                    (a) encourage, by means of joint ventures, subcon-
                                                                        tracting or the use of experts who are nationals of
                                                                        the OCT in teams employed by consultancy firms,
(d) practical experience of problems of the type to be
                                                                        consulting engineers or institutions in the Member
     dealt with;                                                        States;
(e) cost.
                                                                   (b) inform tenderers in the tender dossier of the
                                                                        selection criteria and preferences provided for in the
2. The recruitment of technical cooperation staff, the                  Decision, particularly those relating to the encour-
establishment of the aims and functions and the duration                agement of the use of OCT human resources.
of their missions, their remuneration and the ways in
which they contribute to the development of the OCT to
which they are assigned, must conform to the principles                                      Article 186
 of technical cooperation policy laid down in Article 181.
The procedures to be applied in this context must ensure            1. Subject to the provision of this Chapter, the award
 objectivity in terms of the choice and quality of the             of service contracts and the rules of competition and
 services provided. The following principles shall                 preference shall be in accordance with Section 5 of
 therefore apply:                                                  Chapter 5.
 (a) recruitment shall be carried out by the OCT                    2. Technical cooperation shall provide support for
      institutions that will use the technical assistance in        educational and training operations and multiannual
      accordance with the relevant provisions on compe-            training programmes, including awards, as referred to in
      tition and preference;                                       Title XI.
 (b) efforts shall be made to facilitate direct contact
      between the candidate and the future user of the                                       Chapter 5
      technical assistance;
                                                                                     Implementation procedures
 (c) the use of alternative technical assistance delivery
      systems should be encouraged through the use of                                         Section 1
      volunteers, non-governmental organizations, retired
      executives and twinning arrangements;                                                  Programming
 (d) when considering a request for technical assistance,
      the relevant authorities of the country or territory                                   Article 187
      and the Commission delegation shall compare the               1. At the beginning of the period covered by the
      costs and benefits of different ways of transferring          Decision the authorities of France, the Netherlands and
      technology and increasing capabilities;                       the United Kingdom shall give the Commission as soon
                                                                    as possible a clear indication of the total programmable
 (e) the tender dossier shall require each tenderer to              financial resources to be allocated for a period of five
      indicate in his tender what methods he intends to             years to each country or territory for which they are
 ---pagebreak---  t t ^ t                                C f f i c i a i J o u m a i o f t h e European Communities                                               l^oC^B^
responsible^ these Member states shall also notify the                           d^ the measures and actions necessary to achieve the
relevant authorities of the C C T c o n c e r n e d a t the same                       objectives for the sectors agreed upon^
time.
                                                                                 ^     the timetable of commitments and measures to be
                                                                                       taken^
^.      In establishing these financial allocations the
Member states shall take particular account of the needs                         ^ h the reserve set aside for insurance against possible
oftheleastdevelopedCOC^T.                                                              claims, and to cover cost increases and continD
                                                                                       gencies^
^.      The commission shall promtly examine whether
the breakdown notifiedcorresponds to the objectives of                           ^     the projects and programmes outside the focal sector
this Decision and may,wherenecessary,ask the Member                                    or sectors as well as the proposals for regional
^tate to adjust its allocation if these objectivesare not                              projects and programmes.
complied with.In any event,the procedure should pref^
erably be concluded within n o m o r e than DO days.                             ^.      The indicative programme shall be sufficiently
                                                                                flexible to ensure that operations a r e k e p t constantly in
                                                                                line with objectives a n d t o take account of any changes
^.     As soon as the financial allocation for each country                     occurring in the economic situation, priorities and
or territory is known, the relevant authorities of each                         objectivesof the country or territory. I t m a y b e r e v i s e d
country or territory shall draw up and submit to the                            a t t h e r e q u e s t o f t h e r e l e v a n t authorities of the country
C^ommunityadraft indicative programme on the basis of                           or territory concerned.
and consistent with the development objectives and
priorities of that country or territory. The draft indP
cative programme shallcontain^
                                                                                The Community and the relevant authorities of the C^oCT
^     the priority development objectives of the country or                     shall take all necessary measures to ensure that the indi
     territory concerned at local and regional levels                           cativeprogrammes are adopted in the shortestpossible
                                                                                time, preferably w i t h i n a y e a r of the entry into force of
d^ the focal sector or sectors for which support is                             thisDecision.
     considered the most appropriated
^    the most appropriate measures and operations for
     attaining the objectives in the focal sector or sectors^                   t.       The indicative programme shall establish the overall
                                                                                amounts of programmable assistance which may be
                                                                                placed at the disposal of each country or territory.
^ i f possible, specific, clearly identified projects and                       Programmable aid is made up only of the grants referred
     programmes, and especially those which constitutea                         to in Article t ^ ^ ^ .
     follow-up to existing projects and programmes^
                                                                                ^.       Any balance remaining from the Rund that has not
^     any proposals for regional projects and programmes.                       b e e n c o m m i t t e d o r d i s b u r s e d b y the e n ^ o f theperiod
                                                                                laid down in Article t ^ shall be utilized until it has been
                                                                                exhausted, in accordance with the same conditions as
                                                                                thoselaiddowninthisDecision.
n       rUie draft indicative programme shall be the subject
of an exchange of views between the relevant authorities                        o5 A comparative account of commitments and
of the country or territory concerned and the                                   payments shall be drawn up each year by the local authD
Community,due regard being given to the local needs of                          orizingofficerandtheC^ommissiondelegate,whoshall
the countryorterritory^ the indicative programme shall                          takethenecessary steps to ensure that the timetableof
then be adopted by agreement betweenthe Community                               commitments agreed at the time of programming is
and the relevant authorities of the country or territory                        adhered to and determine the causes of delays recorded
concerned on the basis of the draft indicative programme                        in their execution so that the necessary remedial
proposed bythoseauthorities.The indicative programme                            measures can be proposed.
should preferably be adopted within no more than si^
months after the end of the period laid down in Article
t^C^                                                                                                                    ^ectio^ ^
                                                                                            ^j^^^t^a^D^^^arat^a^a^^al
^.     It shall specify,   ^^r^^.
^    the focal sector or sectors in which the Community^
     support will be given and the resources to be                              The identification and preparation of projects and
     deployed for that purposed                                                 programmes shall be the responsibility of the relevant
 ---pagebreak--- No C 95/52                             Official Journal of the European Communities                                11.4.91
authorities of the country or territory concerned or any         (g) experience gained from operations of the same kind;
other eligible beneficiary.
                                                                  (h) results of studies already undertaken on similar
                                                                      projects or programmes in order to expedite
                        Article 192                                   implementation and minimize costs.
Project or programme dossiers prepared and submitted
for financing must contain all information necessary for         3. The specific difficulties and constraints of the least-
the appraisal of the projects or programmes or, where            developed OCT which affect the effectiveness, viability
such projects and programmes have not been completely            and economic return of projects and programmes shall
defined, provide the broad outlines necessary for their          be taken into account when the said projects and
appraisal. Such dossiers shall be officially transmitted to      programmes are appraised.
the Community by the relevant authorities of the OCT
or the other beneficiaries in accordance with this
Decision. In the case of beneficiaries other than OCT,                                      Section 3
the express agreement of the relevant authorities of the
country or territory concerned shall be required.                                 Financing proposal and decision
                                                                                           Article 194
                        Article 193
1. The appraisal of projects and programmes shall be              1. The conclusions of the appraisal shall be
undertaken jointly by the relevant authorities of the            summarized by the delegate, except in the case referred
country or territory or countries or territories and the         to in Article 193, in a financing proposal in close colla-
Community. In order to expedite the procedure, the               boration with the local authorizing officer.
Commission shall give the necessary powers to its
Delegate to undertake this joint appraisal; if the country       2. The financing proposal shall contain an advance
or territory is in an area where the Commission has not          timetable for the technical and financial implementation
appointed a delegate, the appraisal shall be carried out         of the project or programme, and shall deal with the
by the Commission and the authorities of the Member              duration of the different phases of implementation.
State responsible for the country or territory, which shall
ensure liaison with the relevant authorities of the country
or territory concerned.                                          3.     The financing proposal shall:
                                                                 (a) take into account the comments of the relevant auth-
2. Project and programme appraisal shall take into                    orities of the country or territory or countries or
account the specific characteristics and constraints of               territories concerned;
each country or territory as well as the following factors:
                                                                 (b) be forwarded by the delegate simultaneously to the
                                                                      relevant authorities of the country or territory or
(a) effectiveness and viability of the operations requested           countries or territories concerned and the
    and the returns thereon, if possible on the basis of a            Commission.
    cost-benefit analysis, possible variants being
    examined;
                                                                 4. The Commission shall finalize the financing
                                                                 proposal and forward it, with or without amendment, to
(b) cultural, social, gender and environmental aspects,          the Community's decision-making body. The relevant
    both direct and indirect, and impact on the popu-            authorities of the country or territory or countries or
    lation;                                                      territories concerned shall be given an opportunity to
                                                                 comment on any amendment of substance which the
                                                                 Commission intends to make to the document; these
(c) availability of local manpower and other resources           comments shall be reflected in the amended financing
    necessary to implement, operate and maintain the             proposal.
    projects and programmes;
                                                                                           Article 195
(d) training and institutional development necessary to
    achieve project or programme goals;                          Subject to Article 194 (4), the Community's
                                                                 decision-making body shall communicate its decision
                                                                 within 120 days from the date of forwarding by the
(e) burden of recurrent cost on the recipient;                   delegate referred to in Article 194 (3) (b) or, in cases
                                                                 where no delegate has been appointed, as referred to in
                                                                 Article 193, by the authorities of the Member State
(f) local commitments and efforts;                               responsible for the country or territory in question.
 ---pagebreak--- 1 1 ^ 1                                                   COfficialJournalofthe European Communities                                                     l^oC^B^
                                                                                   provisions relating to the project or programme
                                                                                   concerned and shall also incorporate the advance
1.       ^ i t h a v i e w to expediting procedures and b^rwav                     timetable for the technical implementation of the project
of derogation from the provisions set out in A r t i c l e s ! ^                   or programme contained in thefinancing proposal.
and 1 ^ , financing decisions ma^ deal with multiannual
programmes where the financing concerns^
                                                                                   o5 Financing agreements for all projects and
^      trainings                                                                   programmes shall make adequate provision for approprP
                                                                                   ations to cover cost increasesandcontingencies.
d^ microprojects^
^      trade promotions                                                            ^.       Cmce the financing agreement has been signed,
                                                                                   disbursements shall be made in accordance with the
                                                                                   financing plan laiddowntherein.
^      sets of operations of a limited scale in a specific
       sectors
                                                                                   ^.       Anv unexpended balance left upon closure of the
^      technical cooperation.                                                      accounts of projects and programmes shall accrue to the
                                                                                   countrvorterritorvconcernedandshallbesospecified
                                                                                   i n t h e Fund's books. It ma^ be used i n t h e manner laid
^.        In these cases, the relevant authorities of the
                                                                                   d o w n i n t h i s O e c i s i o n f o r t h e f i n a n c i n g o f projectsand
country or territory concerned mav submit to the
                                                                                   programmes.
delegateamultiannual programme setting out the broad
outlines, the tvpes of operations envisaged and the
financialcommitment proposed.
                                                                                                                       eO^r^^rr^^
^.        The financing decision on each multiannual
programme shall be taken b^ the chief authorizing
officer.The letter fromthechiefauthorizingofficer to
the local authorizing officer notifying such decision shall
                                                                                   L        COnceit appears that cost overruns beyond the limit
constitute the financing agreement within the meaning of
                                                                                   set in the financing agreement are likervto occur, the
Article 1 ^ .
                                                                                   local authorizing officer shall, through the delegate,
                                                                                   notifv the chief authorizingofficer accordingly, as well
^ i t h i n t h e f r a m e w o r k o f multiannualprogrammesthus                  as of the measures which the local authorizing officer
adopted, the local authorizing officer shall implement                             intends to take in order to cover such cost overruns over
each individual action in accordance with the relevant                             the allocated appropriations, either bv reducing the scale
provisions of the decision and the terms of the financing                          of the project or programme or bv calling on local or
agreement referredtoabove.                                                         other nonDCommunitv resources.
At the end of each vear, the local authorizing officer, in                         ^.       If it is decided bv agreement w i t h t h e Community
consultation withthe delegate, shall forwardareport to                             n o t t o s c a l e d o w n t h e p r o j e c t or programme or if i t i s
the Commission on the implementation of the                                        not possible to cover them b r o t h e r resources, then such
programmes.                                                                        overrunsmavbe^
                                                                                   ^      covered b^ an^ unexpended balance left upon
                                                                                          closureof projectsandprogrammesfrom indicative
                                                                                          programmes which has not been reallocated up to
                                                                                          ^ O ^ o f the financial commitment for the project or
                                                                                          programme concerned^ or
                                    A ^ C ^ ^ ^
1.        For anv project or programme financed b v a g r a n t                    d^ financed b^ the indicative programme.
from the Fund,afinancing agreement shall be drawn up
b e t w e e n t h e C o m m i s s i o n a n d t h e r e l e v a n t authorities of
the country or territory or countries or territories
concerned within DO da^s of the decision of the
Community's decisionmaking bodv.
^.       f h e agreement shall specifv in particular the details
of the Fund's financial commitment, the financing                                  t.       In order to ensure earlv project start-up, avoid gaps
arrangements and terms and the general and specific                                between sequential projects and prevent delavs, the
 ---pagebreak--- No C 95/54                              Official Journal of the European Communities                                 11.4.91
relevant authorities of the OCT, in agreement with the                               Participation on equal terms
Commission, may, on completion of project appraisal
and before the financing decision is taken:
                                                                                             Article 201
                                                                  The relevant authorities of the OCT and the
                                                                  Commission shall take the necessary measures to ensure
 (i) issue invitations to tender for all types of contracts,      the widest possible participation on equal terms in invi-
     with a suspension clause;                                    tations to tender for works, supply and service contracts,
(ii) pre-finance, for a limited amount, activities linked to      including, as appropriate, measures to:
     preliminary and seasonal work, orders for equipment
     with long delivery lead times as well as some                (a) ensure publication of invitations to tender in the
     ongoing operations. Such expenditures must satisfy                Official Journal of the European Communities, the
     the procedures provided for in the Decision.                      official journals of the OCT and ACP States and any
                                                                       other appropriate information media;
                                                                  (b) eliminate discriminatory practices or technical speci-
2. These provisions shall be without prejudice to the                  fications which might stand in the way of widespread
powers of the Community's decision-making body.                        participation on equal terms;
                                                                  (c) encourage cooperation between the companies and
3. Expenditure made by a country or territory                          firms of the Member States, the OCT and the ACP
pursuant to this Article shall be retroactively financed               States;
under the project or programme, once the financing
agreement is signed.                                              (d) ensure that all the selection criteria are specified in
                                                                       the tender dossier; and
                                                                  (e) ensure that the tender selected conforms to the
                          Section 5                                    requirements of the tender dossier and meets the
                                                                       selection criteria stated therein.
                  Competition and preferences
                           Eligibility                                                       Derogations
                                                                                             Article 202
                         Article 200                               1. In order to ensure the optimum cost-effectiveness
Save where a derogation is granted in accordance with             of the system, natural or legal persons from non-ACP
                                                                  developing countries may be authorized to participate in
Article 202:
                                                                  contracts financed by the Community at the request of
                                                                  the relevant authorities of the OCT concerned. These
                                                                  authorities shall, on each occasion, provide the delegate
(a) participation in invitations to tender and the award          with the information needed for the Community to
     of the contracts financed by the Fund shall be open          decide on such derogations, particular attention being
     on equal terms to:                                           given to:
                                                                   (a) the geographical location of the country or territory
                                                                       concerned;
       (i) natural persons, companies or firms or public or
           semi-public agencies of the OCT, the ACP
           States and Community States;                            (b) the competitiveness of contractors, suppliers and
                                                                       consultants from the Community, the OCT and the
      (ii) cooperative societies and other legal persons               ACP States;
           governed by public or private law, save for those
           which     are    non-profit-making,      of    the
           Community, the OCT and/or the ACP States;               (c) the need to avoid excessive increases in the cost of
                                                                       performance of the contract;
     (iii) joint ventures or groupings of OCT, ACP
           and/or Community companies or firms;                    (d) transport difficulties or delays due to delivery times
                                                                       or other similar problems;
(b) supplies must originate in the Community, the OCT              (e) technology that is the most appropriate and best
     and/or the ACP States.                                            suited to local conditions.
 ---pagebreak--- 11.4.91                                Official Journal of the European Communities                              No C 95/55
2. Participation by third countries in contracts                 (c) operations assigned to individual experts;
financed by the Community may also be authorized:
                                                                 (d) operations which are complementary to or necessary
(a) where the Community participates in the financing                 for the completion of others already in hand;
     of regional or inter-regional schemes involving such
     countries;
                                                                 (e) where the performance of the contract is exclusively
(b) where projects and programmes are co-financed;                   reserved for holders of patents or licences to use,
                                                                     process or import the articles concerned;
(c) in the case of emergency assistance.
                                                                 (f) following an unsuccessful invitation to tender.
3. In exceptional cases and in agreement with the
Commission, consultancy firms or experts of third
countries may participate in service contracts.                  4. The following procedure shall apply for restricted
                                                                 invitations to tender and direct agreement contracts:
                          Competition                            (a) in the case of works and supply contracts, a short list
                                                                     of prospective tenderers shall be drawn up by the
                          Article 203                                relevant authorities of the country or territory or
                                                                     countries or territories concerned in agreement with
Save as provided for in Article 208, works and supply                the delegate following, where applicable, a call for
contracts financed from the Fund shall be concluded                  pre-qualification;
following an open invitation to tender and service
contracts shall be concluded following a restricted invi-
tation to tender.                                                (b) in the case of service contracts, the short list of pro-
                                                                     spective tenderers shall be drawn up by the relevant
                                                                     authorities of the OCT in agreement with the
                          Article 204                                Commission on the basis of the proposals of the
1. The relevant authorities of the country or territory              relevant authorities of the country or territory or
or countries or territories may, in accordance with the              countries or territories concerned and the proposals
provisions of paragraphs 2, 3 and 4 and of Article 205               submitted by the Commission;
and in agreement with the Commission:
                                                                 (c) in direct agreement contracts, the relevant authorities
(a) place contracts after restricted invitations to tender           of the country or territory shall enter freely into such
     following, where applicable, calls for pre-qualifi-             discussions as they may consider appropriate with
     cation;                                                         prospective tenderers they have short-listed in
                                                                     accordance with the paragraphs above and award the
(b) conclude contracts by direct agreement;                          contract to the tenderers they have selected.
(c) perform contracts through public or semi-public
     departments of the OCT.                                                             Direct labour
2.     Restricted invitations to tender may be used:
                                                                                         Article 205
(a) where the urgency of the situation is established or          1. Contracts shall be performed by direct labour
     where the nature, or certain particular characteristics     through public or semi-public agencies or departments of
     of the contracts so warrant;                                the country or territory or countries or territories
                                                                 concerned, where the country or territory concerned has
(b) for projects or programmes of a highly specialized           the qualified management staff available in its
     nature;                                                     departments, in case of emergency assistance, service
                                                                 contracts and all other operations the estimated cost of
(c) for large-scale contracts after pre-qualification.           which is less than ECU 5 million.
3. Direct agreement contracts may be awarded in the
                                                                 2. The Community shall contribute to the costs of the
following cases:
                                                                 department involved by providing the equipment and/or
                                                                 materials that it lacks and/or resources to allow it to
(a) small-scale operations, urgent situations             or     acquire additional staff required in the form of experts
     short-term technical cooperation schemes;                   from within the country or territory concerned or other
                                                                 OCT or ACP States. The Community contribution shall
(b) emergency assistance;                                        cover only costs incurred by supplementary measures and
 ---pagebreak--- N o C 95/56                            Official Journal of the European Communities                                11.4.91
temporary expenditure relating to execution strictly             negotiate, draw up and conclude service contracts on
confined to the requirements of the project in question.         their behalf directly or through its relevant agency.
                Emergency assistance contracts                                            Preferences
                         Article 206                                                     Article 209
Contracts under emergency assistance shall be                    Measures shall be taken to encourage the widest partici-
undertaken in such a way as to reflect the urgency of the        pation of natural and legal persons of the O C T in the
situation. To this end, for all operations relating to           performance of contracts financed by the Fund in order
emergency assistance, the relevant authorities of the            to permit the optimization of the physical and human
country or territory may, in agreement with the delegate,        resources of those countries and territories. To this end:
authorize:
                                                                 (a) for works contracts of a value of less than
(a) the conclusion of contracts by direct agreement;                 ECU 5 million, tenderers of the OCT, provided that
                                                                     at least one quarter of the capital stock and
(b) the performance of contracts by direct labour;                   management staff originates from one or more
                                                                     OCT, shall be accorded a 10 % price preference
                                                                     where tenders of an equivalent economic and
(c) implementation through specialized agencies;
                                                                     technical quality are compared;
(d) direct implementation by the Commission.
                                                                 (b) for supply contracts, irrespective of the value of the
                                                                     supplies, tenderers of the O C T who offer supplies of
                                                                     at least 50 % in contract value of O C T origin, shall
                     Accelerated procedure                           be accorded a 15 % price preference where tenders
                                                                     of equivalent economic and technical quality are
                         Article 207                                 compared;
1.    With the aim of ensuring the rapid and effective
implementation of projects and programmes, an accel-             (c) in respect of service contracts, given the required
erated tendering procedure shall be used except as                   competence, preference shall be given to experts,
otherwise indicated by the relevant authorities of the               institutions or consultancy companies or firms of the
country or territory concerned or the Commission by                  O C T where tenders of equivalent economic and
way of a proposal for the agreement of the relevant                  technical quality are compared;
authorities of the country or territory concerned. The
accelerated procedure for issuing invitations to tender          (d) where subcontracting is envisaged, preference shall
shall involve shorter time limits for tendering and the call         be given by the successful tenderer to natural
for tender shall be confined to the country or territory             persons, companies and firms of the O C T capable of
concerned and the neighbouring O C T or ACP States, in               performing the contract required on similar terms;
accordance with the rules in force in the country or
territory concerned. The accelerated procedure shall
apply in the following cases:                                    (e) the relevent authorities of the country or territory
                                                                     may, in the invitation to tender, propose to the pros-
                                                                     pective tenderers the assistance of other O C T or
(a) works contracts, the estimated cost of which is less             ACP companies or firms or national experts or
     than ECU 5 million;                                              consultants selected by mutual agreement. This
                                                                      cooperation may take the form either of a joint
(b) emergency assistance, irrespective of the value of the           venture, or of a subcontract or of on-the-job training
     contract.                                                        of trainees.
2.     By way of derogation, a local authorizing officer,
in agreement with the delegate, may procure supplies                                       Selection
and/or services for a limited amount where they are
available in the O C T concerned or in neighbouring
                                                                                         Article 210
O C T or ACP States.
                                                                  1.   The relevant authorities of the country or territory
                                                                 shall award the contract to the tenderer:
                         Article 208
In order to speed up the procedure, the relevant auth-           (a) whose tender satisfies the requirements laid down in
orities of the O C T may request the Commission to                   the tender dossier;
 ---pagebreak--- 11. 4. 91                                Official Journal of the European Communities                               No C 95/57
(b) who, in the case of a works or supply contract, has             (b) in the case of co-financed projects and programmes
     offered the most advantageous tender as assessed,                   or the granting of derogations to third parties or
     inter alia, on the basis of:                                        accelerated procedures or other appropriate cases,
                                                                         such other general conditions as may be agreed by
       (i) the price and the operating and maintenance                   the relevant authorities of the country or territory
           costs;                                                        concerned and the Community, i.e.:
      (ii) the qualifications of, and the guarantees offered
           by the tenderers, as well as the technical                     (i) the general conditions prescribed by the national
           qualities of the tender, including the offer of an                 legislation of the country or territory concerned
           after-sales service in the country or territory;                   or its established practices regarding inter-
                                                                              national contracts; or
     (iii) the nature of the contract, the conditions and
           the time limit for its execution, and the adap-
           tation to local conditions;                                   (ii) any other international general conditions for
                                                                              contracts.
(c) who, in the case of a service contract, offers the
     most advantageous tender taking into account, inter
     alia, the price, the technical value of the tender, the                              Settlement of disputes
     organization and the methods proposed for the
     provision of the services, as well as the competence,
     independence and availability of the personnel                                           Article 213
     proposed.                                                     Any dispute arising between the authorities of a country
                                                                    or territory and a contractor, supplier or provider of
2. Where two tenders are acknowledged to be equi-                   services during the performance of a contract financed
valent on the basis of the criteria stated above, pref-             by the Fund shall:
erence shall be given:
(a) to the tenderer of a country or territory or an ACP             (a) in the case of a local contract, be settled in
                                                                         accordance with the legislation of the country or
     State; or
                                                                         territory concerned, and
(b) if no such tender is forthcoming, to the tenderer
     who:                                                           (b) in the case of a transnational contract, be settled by
                                                                         arbitration in accordance with the procedural rules
       (i) permits the best possible use of the physical and             to be adopted by the Council on a proposal from the
           human resources of the OCT;                                   Commission.
      (ii) offers the greatest subcontracting possibilities to
            OCT companies, firms or natural persons; or
                                                                                               Section 6
     (iii) represents a consortium of natural persons,
            companies or firms from the OCT, ACP States                               Tax and customs arrangements
            and the Community.
                        General regulations                                                   Article 214
                                                                    The OCT shall apply to contracts financed by the
                           Article 211                              Community tax and customs arrangements no less
                                                                    favourable than those applied by them to the most-
The award of contracts financed from the resources of               favoured States or international development organiz-
 the Fund shall be governed by this Decision and the                ations with which they have relations. For the purpose of
 general regulations which shall be adopted, on a                   determining the most-favoured-nation               treatment,
 proposal by the Commission, by decision of the Council.            account shall not be taken of arrangements applied by
                                                                    the relevant authorities of the country or territory
                         General conditions                         concerned to other developing countries.
                           Article 212
                                                                                               Article 215
 Performance of works, supply and service contracts
                                                                    Subject to Article 214 above, the following shall apply to
 financed from the resources of the Fund shall be
                                                                    contracts financed by the Community:
 governed by:
 (a) the general conditions applicable to contracts                  (a) the contract shall not be subject in the beneficiary
     financed by the Fund which shall be adopted, on a                    country or territory to stamp or registration duties or
     proposal from the Commission, by decision of the                     to fiscal charges having equivalent effect, whether
     Council; or                                                          such charges already exist or are to be instituted in
 ---pagebreak---  No C 95/58                              Official Journal of the European Communities                                 11. 4. 91
     the future; however, such contracts shall be                   2. Tax arrangements affecting Commission delegates
     registered in accordance with the laws in force in the         and delegation officials are dealt with in Article 222 of
     country or territory and a fee corresponding to the            this Decision.
     service rendered may be charged for it;
 (b) profits and/or income arising from the performance
     of contracts shall be taxable according to the internal                                Chapter 6
     fiscal arrangements of the country or territory
     concerned, provided that the natural or legal persons                      Management and executing agents
     who realize such profit and/or income have a
     permanent place of business in that country or
     territory, or that the performance of the contract
     takes longer than six months;                                                           Section 1
                                                                                      Chief authorizing officer
 (c) enterprises which must import equipment in order to
     carry out works contracts shall, if they so request,
     benefit from the system of temporary admission as
     laid down by the legislation of the beneficiary                                        Article 217
     country or territory in respect of the said equipment;
                                                                    1. The Commission shall appoint the chief authorizing
                                                                   officer of the Fund, who shall be responsible for
 (d) professional equipment necessary for carrying out             managing the resources of the Fund.
     tasks defined in a service contract shall be tempo-
     rarily admitted into the beneficiary country or
     territory in accordance with the legislation of that
     country or territory free of fiscal, import and               2.     The chief authorizing officer shall:
     customs duties and of other charges having equi-
     valent effect where these duties and charges do not
     constitute remuneration for services rendered;                (a) commit, clear and authorize expenditure and keep
                                                                        accounts of commitments and authorizations;
 (e) imports under supply contracts shall be admitted into
     the beneficiary country or territory without customs          (b) ensure that financing decisions are carried out;
     duties, import duties, taxes or fiscal charges having
     equivalent effect. The contract for supplies orig-
     inating in the country or territory concerned shall be
     concluded on the basis of the ex-works price of the           (c) in close cooperation with the local authorizing
     supplies, to which may be added such internal fiscal               officer make commitment decisions and financial
     charges as may be applicable to those supplies in the              arrangements that prove necessary to ensure proper
     country or territory;                                              execution of approved operations from the economic
                                                                        and technical viewpoints;
 (f) fuels, lubricants and hydrocarbon binders and, in
     general, all materials used in the performance of             (d) approve the tender dossier before invitations to
     works contracts shall be deemed to have been                       tender are issued, subject to the powers exercised by
     purchased on the local market and shall be subject to              the delegate pursuant to Article 223;
     fiscal rules applicable under the legislation in force in
     the beneficiary country or territory;
                                                                   (e) ensure publication in reasonable time of invitations
(g) personal and household effects imported for use by                  to tender in accordance with Article 201;
     natural persons, other than those recruited locally,
     engaged in carrying out tasks defined in a service
     contract and members of their families, shall be              (f) approve the proposal for the placing of the contract,
     exempt from customs or import duties, taxes and                    subject to the powers exercised by the delegate
     other fiscal charges having equivalent effect, within              pursuant to Article 223.
     the limits of the legislation in force in the beneficiary
     country or territory.
                                                                   3. The chief authorizing officer shall, at the end of
                          Article 216                              each year, make available a detailed balance sheet of the
                                                                   Fund showing balances of contributions paid into the
1. Any matter not covered by Articles 214 and 215                  Fund by the Member States, global disbursements in
shall remain subject to the legislation of the country or          respect of each financing heading including regional
territory concerned.                                               cooperation, emergency assistance, Stabex and Sysmin.
 ---pagebreak--- 11.4.91                                  Official Journal of the European Communities                             No C 95/59
                           Section 2                               2.     The local authorizing officer shall, during the
                                                                   execution of operations and subject to the requirement
                    Local authorizing officer                      to inform the delegate, decide on:
                                                                   (a) technical adjustments and alterations in matters of
                          Article 218                                   detail, so long as they do not affect the technical
                                                                        solution adopted and remain within the limits of the
1.     The relevant authorities of each country or                      reserve for adjustments;
territory shall appoint a local authorizing officer to
represent them in all operations financed from the                 (b) alterations to estimates during execution;
resources of the Fund managed by the Commission. The
local authorizing officer shall also be kept informed of
operations financed from the resources managed by the              (c) transfers from item to item within estimates;
Bank.
                                                                   (d) changes of site for multiple-unit projects or
                                                                        programmes where justified on technical, economic
2.     The local authorizing officer may delegate some of               or social grounds;
these functions and shall inform the chief authorizing
officer of any such delegation.                                    (e) imposition or remission of penalties for delay;
                                                                   (f) acts discharging guarantors;
                          Article 219
1.     The local authorizing officer shall:                        (g) purchase of goods, irrespective of their origin, on the
                                                                        local market;
(a) in close cooperation with the Commission delegate,             (h) use of construction equipment and machinery         not
     be responsible for the preparation, submission and                 originating in the Member States, the O C T or     the
     appraisal of projects and programme;                               ACP States provided there is no production          of
                                                                        comparable equipment and machinery in              the
                                                                        Member States, the O C T or the ACP States;
(b) in close cooperation with the delegate, issue invi-
     tations to tender, receive tenders, preside over the          (i) subcontracting;
     examination of tenders, establish the results of this
     examination, sign contracts and riders thereto, and
     approve expenditure;                                          (j) final acceptance, provided that the delegate is
                                                                        present at provisional acceptance, endorses the
                                                                        corresponding minutes and, where appropriate, is
(c) submit, before issuing invitations to tender, the invi-             present at the final acceptance, in particular where
     tation to tender dossier to the delegate, who shall                the extent of the reservations recorded at the
                                                                        provisional acceptance necessitates major additional
     give his agreement within the time limit set in Article
                                                                        work;
     223;
                                                                   (k) hiring of consultants and other technical assistance
(d) complete the evaluation of tenders within the tender                experts.
     validity period, taking into consideration the period
     required for the approval of contracts;
                                                                                           Article 220
                                                                   All documents and proposals submitted by the local
(e) transmit the result of the examination of the tenders
                                                                   authorizing officer to the Commission or the
     and a proposal for award of the contract to the
                                                                   Commission delegate for agreement or approval in
     delegate who shall, within 30 days or such other time
                                                                   accordance with this Decision shall be approved or
     limit as set out in Article 223, give his approval;
                                                                   deemed to be approved within the time limits laid down
                                                                   by this Decision, or within 30 days, where no time limit
                                                                   is stated in the Decision.
(f) clear and authorize expenditure within the limits of
     the funds assigned to him;
                                                                                           Article 221
(g) during the execution operations, make any adap-                At the end of each year, the local authorizing officer
     tation arrangements necessary to ensure the proper            shall prepare a report on the operations covered by the
     execution of approved projects or programmes from             indicative programme or regional programmes in that
     the economic and technical viewpoint.                         country or territory. The report shall include, inter alia:
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(a) the report referred to in Article 190 relating to           (a) at the request of the relevant authorities of the
     commitments, disbursements and the implementation               country or territory concerned, participate and give
     timetable for the indicative programme and a                    assistance in the preparation of projects and
     progress report on projects and programmes;                     programmes and in negotiating technical assistance
                                                                     contracts;
(b) commitments, disbursements, implementation time-
     table and progress on regional projects and pro-            (b) participate in appraising projects and programmes,
     grammes in that country or territory;                           preparing tender dossiers, and seeking ways to
                                                                     simplify project and programme appraisal and
                                                                     implementation procedures;
(c) in consultation with the Commission delegate, the
     report referred to in Article 196 relating to multi-
     annual programmes;                                          (c) prepare financing proposals;
(d) an assessment of the financial and technical                 (d) for accelerated procedures, direct            agreement
     cooperation operations in the country or territory,             contracts, and contracts for emergency assistance,
     including regional programmes.                                  approve, before the local authorizing officer issues
                                                                     them, the invitation to tender dossier within 30 days
                                                                     of its submission to him by the local authorizing
A copy of the report shall be submitted to the delegate              officer;
not later than 90 days after the end of the year under
review.
                                                                 (e) for all cases other than those mentioned in (d),
                                                                     transmit the invitation to tender dossier to the chief
                                                                     authorizing officer for approval within 30 days of its
                         Section 3
                                                                     submission to the delegate by the local authorizing
                                                                     officer;
                        The delegate
                                                                 (f) be present at the opening of tenders, and receive
                        Article 222                                  copies of them and of the results of their exam-
                                                                     ination;
 1.    The Commission shall be represented in the OCT,
or in each regional grouping which expressly so requests,
by a delegate.                                                   (g) approve within 30 days the local authorizing officer's
                                                                     proposal for the placing of the contract for all:
2.     In the case of a country or territory that is in a
region where the Commission has not appointed a                        (i) direct agreement contracts;
delegate, the authorities of the Member State responsible
for the country or territory shall provide liaison between
                                                                      (ii) service contracts;
the Commission and the relevant authorities of that
country or territory.
                                                                     (iii) contracts relating to emergency assistance; and
 3.    The Commission delegate and officials of the dele-
gations, excluding locally hired staff, shall be exempt              (iv) contracts by accelerated procedure, works
from all taxes levied in the country or territory where                    contracts worth less than ECU 5 million and
they are posted.                                                           supply contracts worth less than ECU 1 million;
 Staff covered by this paragraph shall also be covered by        (h) approve within 30 days the local authorizing officer's
Article 215 (g).                                                     proposal for the placing of the contract not covered
                                                                     by paragraph (g) wherever the following conditions
                                                                     are fulfilled: the tender selected is the lowest of
                        Article 223                                  those conforming to the requirements of the tender
                                                                     dossier, meets all the selection criteria stated therein
The delegate shall have the necessary instructions and               and does not exceed the sum earmarked for the
delegated powers to facilitate and expedite the pre-                 contract;
paration, appraisal and execution of projects and
programmes and shall be provided with the necessary
back-up support to do so. To this end, and in close              (i) where the conditions set out in paragraph (h) are not
cooperation with the local authorizing officer, the                  fulfilled, forward the proposal for the placing of the
delegate shall:                                                      contract to the chief authorizing officer, who shall
 ---pagebreak--- 11. 4. 91                             Official Journal of the European Communities                             No C 95/61
    decide thereon within 60 days of receipt by the              (c) an assessment of the operations of the Fund in the
    delegate. Where the price of the selected tender                 country or territory and regional programmes.
    exceeds the sum earmarked for the contract, the
    chief authorizing officer shall, upon giving approval
                                                                A copy of the report shall be submitted simultaneously to
    to the award, make the necessary financial
                                                                the relevant authorities of the country or territory
    commitment;
                                                                concerned and the Community.
(j) endorse direct labour contracts and estimates, riders
    thereto, and payment authorizations issued by the                                    Section 4
    local authorizing officer;
                                                                                  Payments and paying agents
(k) ensure that the projects and programmes financed
    from the resources of the Fund managed by the                                        Article 225
    Commission are properly executed from the financial
    and technical viewpoints;                                    1.    For the purpose of effecting payments in the local
                                                                currencies of the OCT, accounts denominated in the
                                                                currencies of one of the Member States or in ecus shall
(1) cooperate with the local authorities of the country or      be opened in each country or territory in the name of
    territory where he represents the Commission in             the Commission with a national public or semi-public
    evaluating operations regularly;                            financial institution, chosen by agreement between the
                                                                 relevant authorities of the country or territory and the
                                                                 Commission. This institution shall exercise the functions
(m) maintain close and continuous contact with the local        of paying agent.
    authorizing officer for the purpose of analysing and
    remedying specific problems encountered in the
    implementation of development finance cooperation;           2.    The accounts referred to above shall be replenished
                                                                by the Commission in the currency of one of the
                                                                 Member States or in ecus, based on estimates of future
(n) in particular, make regular checks to see that oper-         cash requirements, which shall be made sufficiently in
    ations are proceeding in accordance with the                 advance to avoid need for pre-financing by the O C T and
    schedule laid down in the advance timetable in the           to prevent delayed disbursements.
    financing decision;
                                                                 3.    The paying agent shall receive no remuneration for
(o) communicate to the relevant authorities of the               its services, and no interest shall be payable by it on
     country or territory all information and relevant           deposited funds.
     documents on the procedures for implementing
     development finance cooperation especially as
     regards appraisal criteria and tender evaluation            4.    For the purpose of effecting payments in ecus,
     criteria;                                                   accounts denominated in ecus shall be opened in the
                                                                 name of the Commission with financing institutions in
                                                                 the Member States. These institutions shall exercise the
(p) on a regular basis inform the local authorities of           functions of paying agents in Europe. Payments from
     Community activities which may directly concern             these accounts, which shall be executed on the
     cooperation between the Community and the OCT.              instruction of the Commission or by the delegate acting
                                                                 on its behalf, may be made in respect of expenditure
                                                                 authorized by the local authorizing officer or by the
                                                                 chief authorizing officer with the prior authorization of
                        Article 224
                                                                 the local authorizing officer.
At the end of each year, the delegate shall prepare a
report on the implementation of the indicative
programme and regional programmes in particular as it            5.    Within the limits of the funds available in the
relates to operations of the Fund managed by the                 accounts, the paying agents shall make disbursements
Commission, and covering, inter alia:                            authorized by the local authorizing officer or, as appro-
                                                                 priate, the chief authorizing officer, after verifying that
                                                                 the supporting documents provided are substantially
(a) the     amount   of    the indicative       programme,       correct and in order, and that the discharge given for
     commitments, disbursements and the timetable for            payment is valid.
     the implementation of the indicative programme and
    regional programmes;
                                                                 6.    The procedures for clearance, authorization and
                                                                 payment of expenditure shall be completed within a
(b) a progress report on projects and programmes;                period of 90 days from the date on which the payment
 ---pagebreak--- N o C 95/62                           Official Journal of the European Communities                                  11. 4. 91
becomes due. The local authorizing officer shall process        (f) synthesize results of monitoring and evaluation by
and deliver the payment authorization to the delegate                sector, instrument, theme, country or territory and
not later than 45 days before the due date.                          region. To this end:
7.     Claims for delayed payments shall be borne by the              (i) reports on the results of monitoring and
relevant authorities of the country or territory or                        evaluation shall be drawn up and published at
countries or territories concerned, and by the                             agreed intervals;
Commission from its own resources, for that part of the
delay for which each party is responsible, in accordance
with paragraph 6.                                                    (ii) an annual review of operations        performance
                                                                           results shall be prepared;
8.     The paying agents, the local authorizing officer,
the     delegate   and    the responsible      Commission        (g) ensure the adequate operational feed-back of moni-
departments shall remain financially liable until the                toring and evaluation results into development policy
Commission gives final clearance for the operations for              and practice, by devising effective feed-back mech-
the execution of which they are responsible.                         anisms, organizing seminars and workshops and
                                                                     producing and distributing concise documentation
                                                                     highlighting the most important findings, conclusions
                         Section 5                                   and recommendations and, through a process of
                                                                     discussion and follow-up with policy and Operating
                  Monitoring and evaluation                          staff, bring that experience to bear on the design and
                                                                     execution of future operations and help to re-orient
                                                                     them;
                         Article 226
The objective of monitoring and evaluation shall consist         (h) identify and disseminate lessons that can contribute
in the external assessment of development operations                 to improvements in the design and implementation of
(preparation, implementation and subsequent operation)               future operations;
with a view to improving the development effectiveness
of ongoing and future operations. This work shall be
done jointly by the O C T and the Community.                     (i) collect and exploit relevant information available
                                                                     with local and international development coop-
                                                                     eration organizations.
                         Article 227
 1.    More specifically, this work will notably serve the
following purposes:                                              2.    Areas of work to be covered will notably include
                                                                 the following:
(a) provide regular, joint and independent monitoring
     and evaluation of the Fund's operations and ac-             (a) development sectors;
     tivities;
                                                                 (b) development instruments and themes;
(b) organize the joint monitoring and evaluation of
     ongoing and completed operations, and compare the
     results of operations with their objectives. Adminis-
                                                                 (c) local and regional reviews;
     tration, functioning and maintenance of operations
     should systematically be reviewed;
                                                                 (d) individual development operations.
(c) account to the Council for the outcome of the
     evaluation work and feed that experience back into
     the design and execution of future operations;                                        Article 228
(d) ensure that the comments of the relevant authorities         In order to ensure its practical relevance to the objectives
                                                                 of the Decision and to improve the exchange of infor-
     of the O C T are sought on all monitoring and
                                                                 mation, the Commission shall:
     evaluation reports, and further ensure, in all cases,
     that the O C T experts participate directly in the
     monitoring, evaluation and preparation of the
                                                                 (a) maintain close contact with evaluation units in the
     reports;
                                                                     O C T and in the Community, as, well as with the
                                                                     local authorizing officers, Commission delegations
(e) ensure that the O C T and the Community regularly                and other interested services in the O C T local
     programme evaluation work;                                      administrations and regional organizations;
 ---pagebreak--- 11.4.91                                 Official Journal of the European Communities                                 No C 95/63
(b) assist the O C T in initiating or strengthening moni-                                    Article 231
     toring and evaluation capacities, through consul-
     tation or through courses on monitoring and                  The provisions laid down pursuant to Article 229 in
     evaluation.                                                  respect of the least-developed O C T are contained in the
                                                                  following Articles:
                         TITLE IV                                   1. Objectives
                                                                       Article 5
GENERAL PROVISIONS FOR THE LEAST-DEVELOPED
                            OCT                                     2. Agricultural cooperation, food security and rural development
                                                                       Article 28
                         Article 229
                                                                    3. Development of fisheries
Special attention shall be paid to the least-developed
O C T and their specific needs and problems in order to                Article 32
enable them to take full advantage of the opportunities
offered by the Decision and help them overcome the                  4. Industrial cooperation
serious social and economic difficulties which hamper
                                                                       Article 49
their development.
                                                                    5. Development of services
Independently of the measures provided for in the
different chapters of the Decision, special attention shall            Article 68
be paid in respect of the least-developed O C T to:
                                                                    6. Trade development
— the strengthening of regional cooperation;
                                                                       Article 85 (5)
— transport and communications infrastructure;                      7. Safeguard measures — trade cooperation
— the efficient exploitation of marine resources and the               Article 110
    marketing of products so produced;
                                                                    8. Sysmin
— the implementation of food strategies and integrated                 Article 138 (1)
    development programmes.
                                                                    9. Developmentfinancecooperation
                         Article 230                                   Article 143 (m)
 1.    The following shall be considered least-developed
                                                                   10. Recurrent cost financing
O C T for the purposes of this Decision:
                                                                       Article 150 (2)
— Anguilla,
                                                                   11. Allocation of resources
— Mayotte,
                                                                       Article 160
— Montserrat,                                                      12. Microprojects
— Turks and Caicos Islands,                                            Article 162 (4)
— Wallis and Futuna Islands.                                       13. Programming
                                                                       Article 187 (2)
2.     The list of O C T in paragraph 1 may be amended
by decision of the Council, on a proposal from the                 14. Appraisal of projects
Commission, where the economic situation of a country
                                                                       Article 193 (3)
or territory undergoes a significant and lasting change,
either so as to necessitate its inclusion in the category of
                                                                   15. Annex on the rules of origin
least-developed O C T or so that its inclusion in that
category is no longer warranted.                                       Article 30 (3) and (5)
 ---pagebreak--- No C 95/64                             Official Journal of the European Communities                                 11. 4. 91
                                                           PART 4
                        PROVISIONS RELATING TO ESTABLISHMENT AND SERVICES
                        Article 232                              civil or commercial law, including public or other
                                                                 companies, cooperative societies and any other legal
As regards the arrangements applicable to establishment          person or association governed by public or private law,
and provision of services, the relevant authorities of the       save for those which are non-profit-making.
OCT shall treat nationals and companies or enterprises
of Member States on a non-discriminatory basis.
                                                                 'Companies or enterprises of Member States' means
(a) The authorities of a country or territory may,               companies or enterprises formed in accordance with the
    however, adopt regulations to aid the local popu-            laws of a Member State whose registered office, central
    lation and local activities in derogation from the           administration or principal place of business is in a
    rules normally applicable to nationals, companies or         Member State; however, a company or enterprise having
    enterprises of all Member States as long as such             only its registered office in a Member State must be
    derogations are confined to sensitive sectors of the         engaged in an activity which has an actual and
    country or territory's economy and are intended to           continuous link with the economy of that Member State.
    promote or support local employment.
                                                                 'Companies or enterprises of the Kingdom of Denmark,
    The sectors concerned, and the duration of dero-             the French Republic, the Kingdom of the Netherlands or
    gation and other related procedures, shall be estab-         the United Kingdom established in a country or
    lished for the country or territory concerned, after         territory' means companies or enterprises formed in
    consultation, where necessary, in the framework of           accordance with Danish, French, Dutch or United
    the partnership provisions of Articles 234 to 236, by        Kingdom law, as the case may be, whose registered
    decision of the Council, acting by a qualified               office, central administration or principal place of
    majority on a proposal from the Commission.                  business is in that country or territory; however, a
                                                                 company or enterprise having only its registered office in
(b) However, if, for a given activity, a Member State is         a country or territory must be engaged in an activity
    unable to provide similar treatment for nationals or         which has an actual and continuous link with the
    companies or enterprises of the Kingdom of                   economy of that country or territory.
    Denmark, the French Republic, the Kingdom of the
    Netherlands or the United Kingdom, established in a          'Companies or enterprises subject to the laws of the
    country or territory, or for companies or enterprises        country or territory concerned and established therein'
    subject to the laws of the country or territory              means companies or enterprises formed in accordance
    concerned and established therein, the relevant auth-        with the law applicable in a given country or territory
    orities of that country or territory shall not be bound      whose registered office, central administration or
    to accord such treatment.                                    principal place of business is in that country or territory;
                                                                 however, a company or enterprise having only its
                        Article 233                              registered office in a country or territory must be
                                                                 engaged in an activity which has an actual and
For the purposes of this Decision 'companies or enter-           continuous link with the economy of that country or
prises' means companies or enterprises constituted under         territory.
 ---pagebreak--- 11.4.91                               Official Journal of the European Communities                             No C 95/65
                                                           PART 5
                               COMMISSION/MEMBER S T A T E / O C T PARTNERSHIP
                        Article 234                             — on a permanent basis for the period remaining of the
                                                                     life of this Decision; in this case they shall meet at
Community action shall be based as far as possible on                least once a year to examine progress in
close consultation between the Commission, the Member                implementing this Decision or deal with other
State responsible for a country or territory and the local           matters arising under paragraph 1.
authorities of that country or territory.
                                                                 3.     The Commission shall chair the working parties. A
This consultation shall hereinafter be referred to as 'part-    representative of the Bank shall be present at meetings
nership'.                                                       when matters concerning it are on the agenda.
                                                                The general expenses of these meetings and the expenses
                        Article 235                             incurred by O C T representatives in attending meetings
1.    Partnership shall cover the programming, prep-            shall be borne by the relevant authorities of the OCT.
aration, financing, monitoring and evaluation of oper-
ations carried out by the Community under this                                            Article 236
Decision, and any problem arising in relations between
the O C T and the Community.                                     1.     Other O C T shall be notified by the Commission of
                                                                 recommendations made by a working party.
2.    To this end, working parties on association with
the O C T , of an advisory nature and made up of the             2.     The opinions of working parties shall be duly taken
three partners referred to in Article 234, may be set up         into account by the Commission, notably in its role of
either on the basis of geographical area or by group of          administrator of the Fund. Where relevant, they shall
O C T under the responsibility of a single Member State,         form the basis of proposals from the Commission to the
notably at the request of the O C T concerned. These             Council with a view to bringing into force, under Article
working parties shall be set up:                                 136 of the Treaty, new provisions concerning the
                                                                 application of the association of the O C T with the
                                                                 Community, with particular regard to the effects on the
— on an ad hoc basis to deal with specific problems, or          O C T of the completion of the single market.
                                                           PART 6
                                                   FINAL PROVISONS
                        Article 237                              2.     The Council, acting unanimously on a proposal
                                                                 from the Commission, may amend or supplement the
Subject to the special provisions regarding relations            said Annex.
between the O C T and the French overseas departments
provided for herein, this Decision shall apply, on the one
hand, to the territories in which the Treaty establishing                                 Article 239
the European Economic Community is applied and
under the conditions laid down in that Treaty and, on            If a country or territory becomes independent:
the other, to the territories of the OCT.
                                                                 (a) the arrangements provided for in this Decision may
                                                                      continue to apply provisionally to that country or
                                                                      territory under conditions laid down by the Council;
                        Article 238                              (b) the Council, acting unanimously on a proposal from
                                                                      the Commission, shall decide on any necessary
1.    The O C T to which this Decision applies are listed             adjustments to this Decision, in particular to the
in Annex I.                                                           amounts specified in Article 154.
 ---pagebreak--- No C 95/66                             Official Journal of the European Communities                                11. 4. 91
                         Article 240                             3. Before the date on which this Decision expires, the
                                                                 Council, acting unanimously on a proposal from the
1. This Decision shall be applicable for a period of 10          Commission, shall establish the provisions to be laid
years from 1 March 1990.                                         down for the subsequent application of the principles set
                                                                 out in Articles 131 to 135 of the Treaty.
2. Before the end of the first five years, the Council,
acting unanimously on a proposal from the Commission,            It shall adopt any transitional measures that may be
shall, in addition to the financial assistance referred to in    necessary until the entry into force of the new decision.
Article 154 (I), establish:
                                                                                         Article 241
(a) where necessary, any amendments to provisions
                                                                 This Decision shall enter into force on the day following
    following notification to the Commission by the
                                                                 its publication in the Official Journal of the European
    relevant authorities of the OCT not later than 10
                                                                  Communities, or on 1 March 1991, whichever is the
    months before expiry of this five-year period;
                                                                 earlier.
(b) where necessary, any amendments proposed by the              Should it enter into force before 1 March 1991, Council
    Commission in the light of its own experience or as a        Decision 90/146/EEC (*) shall be repealed on the date
    result of amendments under negotiation between the           on which this Decision enters into force.
    Community and the ACP States;
                                                                                         Article 242
(c) any transitional measures necessary as a result of the
    amendments made under subparagraphs (a) and (b)              This Decision shall be published in the Official Journal of
    until their entry into force.                                 the European Communities.
                                                                  O OJ No L 84, 30. 3. 1990, p. 108.
 ---pagebreak--- 11. 4. 91                               Official Journal of the European Communities                                      No C 95/67
                                                              Annex J
                                              List of the OCT referred to in Article 1
          (This list does not prejudge the status of these countries and territories, or future changes in their status.)
          1. Country having special relations with the Kingdom of Denmark: Greenland.
          2. Overseas territories of the French Republic:
             — New Caledonia and Dependencies,
             — French Polynesia,
             — French Southern and Antarctic Territories,
             — Wallis and Futuna Islands.
          3. Territorial collectivities of the French Republic:
             — Mayotte,
             — Saint Pierre and Miquelon.
          4. Overseas countries of the Kingdom of the Netherlands:
             — Aruba,
             — Netherlands Antilles:
                 — Bonaire,
                 — Curacao,
                 — Saba,
                 — Saint Eustatius,
                 — Saint Martin.
          5. Overseas countries and territories of the United Kingdom of Great Britain and Northern Ireland:
             — Anguilla,
             — Cayman Islands,
             — Falkland Islands,
             — South Sandwich Islands and Dependencies,
             — Montserrat,
             — Pitcairn,
             — Saint Helena and Dependencies,
             — British Antarctic Territory,
             — British Indian Ocean Territory,
             — Turks and Caicos Islands,
             — British Virgin Islands.
 ---pagebreak--- N o C 95/68                            Official Journal of the European Communities                                    11.4.91
                                                           Annex II
              concerning the definition of the concept of 'originating products' and methods of administrative
                                                         cooperation
                          TITLE I                                      which sail under the flag of a Member State, of an
                                                                       ACP State, or of a country or territory,
  DEFINITION OF THE CONCEPT OF ORIGINATING
                        PRODUCTS
                                                                       which are 50 % owned by Member State, ACP or
                                                                       O C T nationals or a company with its head office in
                          Article 1                                    one of these States or OCT, of which the manager or
                       Origin criteria                                 managers, chairman of the board of directors or the
                                                                       supervisory board, and the majority of the members
                                                                       of such boards, are Member State, ACP or O C T
For the purpose of implementing the trade cooperation                  nationals and of which, in addition in the case of
provisions of the Decision, a product shall be considered              partnerships or limited companies, at least half the
to be originating in the OCT, the Community or the                     capital belongs to Member States or ACP States, or
ACP States if it has been either wholly obtained or suffi-             to public bodies or nationals of such States or of a
ciently worked or processed there.                                     country or territory,
                          Article 2
                                                                       of which at least 50 % of the crew, master and
                  Wholly obtained products                             officers included, are Member State, ACP or O C T
                                                                       nationals.
1.     The following shall be considered as wholly
obtained in the OCT, the Community or the ACP
States:                                                           3.     Nothwithstanding the provisions of paragraph 2,
                                                                  where a country or territory offers the Community the
(a) mineral products extracted from their soil or from            opportunity to negotiate a fisheries agreement and the
     their seabed;                                                Community does not accept this offer, the country or
                                                                  territory concerned may charter or lease third country
(b) vegetable products harvested therein;                         vessels to undertake fisheries activities in its exclusive
                                                                  economic zone and request that such vessels be treated
(c) live animals born and raised therein;                         as 'its vessels' under the provisions of this Article.
(d) products from live animals raised therein;
                                                                  The Community shall recognize vessels chartered or
                                                                  leased by the country or territory as vessels of that
(e) products obtained by hunting or fishing conducted             country or territory under the following conditions:
     therein;
(f) products of sea fishing and other products taken                   that the Community has not availed itself of the
     from the sea by their vessels;                                    opportunity to negotiate a fisheries agreement with
                                                                       the country or territory concerned,
(g) products made aboard their factory ships exclusively
     from products referred to in subparagraph (f);
                                                                       that at least 50 % of the crew, master and officers
(h) used articles collected there fit only for the recovery            included, are Member State, ACP or O C T nationals,
     of raw materials;
                                                                       that the charter or lease contract has been accepted
(i) waste and scrap resulting from manufacturing oper-
                                                                       by the Commission as providing adequate oppor-
     ations conducted therein;
                                                                       tunities for developing the capacity of the country or
                                                                       territory to fish on its own account and in particular
(j) goods produced there exclusively from the products                 as conferring on the country or territory the res-
     specified in subparagraphs (a) to (i).                            ponsibility for the nautical and commercial
                                                                       management of the vessel placed at its disposal for a
2.     The term 'their vessels' in paragraph 1 (f) shall               significant period of time.
apply only to vessels:
— which are registered or recorded in a Member State,             4.     The terms 'ACP State', 'the Community'            and
    in an ACP State, or in a country or territory,                ' O C T ' shall also cover their territorial waters.
 ---pagebreak--- 11. 4. 91                              Official Journal of the European Communities                               No C 95/69
Sea-going vessels, including factory ships, on which the          (d) 'Customs value' shall be understood as meaning the
fish caught is worked or processed shall be considered as             value established in accordance with the Agreement
part of the territory of the ACP States, the Community                on the implementation of Article VII of the General
or the OCT to which they belong, provided that they                   Agreement on Tariffs and Trade (GATT), concluded
satisfy the conditions set out in paragraph 2.                        in Geneva on 12 April 1979.
                           Article 3                             3. For the purpose of implementing paragraphs 1 and
                                                                 2 the following shall be considered as insufficient
               Sufficiently processed products                   working or processing to confer the status of originating
                                                                 products, whether or not there is a change of heading:
1. For the purposes of Article 1, non-originating
materials are considered to be sufficiently worked or
processed when the product obtained is classified in a           (a) operations to ensure the preservation of products in
heading which is different from those in which all the                good condition during transport and storage
non-originating materials used in its manufacture are                 (ventilation, spreading out, drying, chilling, placing
classified, subject to paragraphs 2 and 3.                            in salt, sulphur dioxide or other aqueous solutions,
                                                                      removal of damaged parts, and like operations);
The expressions 'chapters' and 'headings' used in this
Annex shall mean the chapters and headings (four-digit           (b) simple operations consisting of removal of dust,
codes) used in the Nomenclature which makes up the                    sifting or screening, sorting, classifying, matching
Harmonized Commodity Description and Coding                           (including the making-up of sets of articles, washing,
System (hereinafter referred to as the 'Harmonized                    painting, cutting-up);
System').
The expression 'classified' shall refer to the classification    (c) (i) changes of packaging and breaking up and
of a product or material under a particular heading.                        assembly of consignments;
2. For a product mentioned in columns 1 and 2 of the                  (ii) simple placing in botdes, flasks, bags, cases,
list in Annex 2, the conditions set out in column 3 for                     boxes, fixing on cards or boards etc., and all
the product concerned must be fulfilled instead of the                     other simple packaging operations;
rule in paragraph 1.
                                                                 (d) affixing marks, labels and other like distinguishing
(a) Where in the list in Annex 2 a percentage rule is                 signs on products or their packaging;
     applied in determining the originating status of a
     product obtained in a country or territory, the value
     added by the working or processing shall correspond         (e) (i) simple mixing of products of the same kind
     to the ex-works price of the product obtained, less                   where one or more components of the mixture
     the customs value of third-country materials                          do not meet the conditions laid down in this
     imported into the Community, the ACP States or the                    Annex to enable them to be considered as orig-
     OCT.                                                                   inating in an ACP State, in the Community or in
                                                                            a country or territory;
(b) The term 'value' in the list in Annex 2 shall mean the
     customs value at the time of the import of the
                                                                      (ii) simple mixing of products of different kinds
     non-originating materials used or, if this is not
                                                                            unless one or more components of the mixture
     known and cannot be ascertained, the first ascer-
                                                                            meet the conditions laid down in this Annex to
     tainable price paid for the materials in the territory
                                                                            enable them to be considered as originating in an
     concerned.
                                                                            ACP State, the Community, or a country or
                                                                            territory and provided that such components
     Where the value of the originating materials used                      contribute to the determination of the essential
     needs to be established, the provisions of the                         characteristics of the finished product;
     preceding subparagraph shall be applied mutatis
     mutandis.
                                                                 (f) simple assembly of parts of articles to constitute a
                                                                      complete article;
(c) The term 'ex-works price' in the list in Annex 2 shall
     mean the price paid for the product obtained to the
     manufacturer in whose undertaking the last working          (g) a combination of two or more operations specified in
     or processing is carried out, provided the price                 subparagraphs (a) to (f);
     includes the value of all the materials used in manu-
     facture, minus any internal taxes which are, or may
     be, repaid when the product obtained is exported.           (h) slaughter of animals.
 ---pagebreak--- N o C 95/70                            Official Journal of the European Communities                                 11.4.91
                          Article 4                                                         Article 8
                      Neutral elements                                         Accessories, spare parts and tools
In order to determine whether goods originate in an              Accessories, spare parts and tools dispatched with a piece
ACP State, the Community or one of the OCT, it shall             of equipment, machine, apparatus or vehicle which are
not be necessary to establish whether the electrical             part of the normal equipment and included in the price
power, fuel, plant and equipment and machines and tools          thereof or are not separately invoiced are regarded as
used to obtain such goods or whether any materials or            one with the piece of equipment, machine, apparatus or
products used in the course of production which do not           vehicle in question.
enter and which were not intended to enter into the final
composition of the goods originate in third countries or
not.                                                                                        Article 9
                                                                                              Sets
                           Article 5                             Sets, as defined in General Rule 3 of the Harmonized
                       Value tolerance                           System, shall be regarded as originating when all
                                                                 component articles are originating products. Never-
                                                                 theless, when a set is composed of originating and
Notwithstanding the provisions of Article 3 (1) and (2),
                                                                 non-originating articles, the set as a whole shall be
non-originating materials may be used in the manu-
                                                                 regarded as originating provided that the value of the
facture of a given product, provided their total value
                                                                 non-originating articles does not exceed 15 % of
does not exceed 10 °/o of the ex-works price of the final
                                                                 ex-works price of the set.
product and subject to the conditions laid down in Note
4.4 in Annex 1.
                                                                                           Article 10
                           Article 6                                                    Direct transport
                         Cumulation                               1.   The preferential treatment provided for under the
                                                                 trade cooperation provisions of the Decision applies only
1.    For the purpose of implementing this Title, the            to products or materials which are transported between
O C T shall be considered as being one territory.                the territory of the ACP States, of the Community or of
                                                                 the O C T without entering any other territory. However,
                                                                 goods constituting one single consignment may be trans-
2.    When products wholly obtained in the Community             ported through territory other than that of the ACP
or in the ACP States undergo working or processing in            States, the Community or the OCT, with, should the
the O C T , they shall be considered as having been wholly       occasion arise, transhipment or temporary warehousing
obtained in the OCT.                                             in such territory, 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
3.    Working and processing carried out in the                  not undergone operations other than unloading,
Community or in the ACP States shall be considered as            reloading or any operation designed to preserve them in
having been carried out in the O C T when the materials          good condition.
undergo working or processing in the OCT.
                                                                  2.   Evidence that the conditions referred to in
                                                                 paragraph 1 have been fulfilled shall be supplied to the
4.    Paragraphs 2 and 3 apply to any working or
                                                                  responsible customs authorities by the production of:
processing carried out in the OCT, including the oper-
ations listed in Article 3 (3).
                                                                  (a) a through bill of lading issued in the exporting
                                                                      beneficiary country covering the passage through the
                                                                      country of transit; or
                           Article 7
                    Allocation of origin                          (b) a certificate issued by the customs authorities of the
                                                                      country of transit:
Originating products made up of materials wholly
obtained or sufficiently processed in two or more O C T
shall be considered as products originating in the country            — giving an exact description of the goods,
or territory where the last working or processing took
place, provided this working or processing exceeded the               — stating the dates of unloading and reloading of
insufficient operations listed in Article 3 (3) or a combi-              the goods or of their embarkation or disem-
nation thereof.                                                          barkation, identifying the ships used,
 ---pagebreak--- 11. 4. 91                              Official Journal of the European Communities                              No C 95/71
     — certifying the conditions under which the goods           5.      The exporter or his representative shall submit with
         remained in the transit country;                        his request any appropriate supporting document proving
                                                                 that the products to be exported are such as to qualify
                                                                 for the issue of a movement certificate EUR. 1.
(c) or failing these, any substantiating documents.
                                                                 He shall undertake to submit at the request of the
                                                                 relevant authorities, any supplementary evidence they
                          Article 11                             may require for the purpose of establishing the
                                                                 correctness of the originating status of the goods eligible
                   Territorial requirement
                                                                 for preferential treatment and shall undertake to agree to
                                                                  any inspection of his accounts and to any check on the
The conditions set out in this Title relative to the             processes of the obtaining of the above goods.
acquisition of originating status must be fulfilled without
interruption in the Community, the ACP States or the
OCT.                                                              Exporters are required to keep the supporting documents
                                                                  referred to in this paragraph for at least two years.
If originating goods exported from the Community, the             6.     The movement certificate EUR. 1 shall be issued by
ACP States or the O C T to another county are returned,           the customs authorities of the exporting country or
they must be considered as non-originating unless it can          territory, if the goods can be considered 'originating
be demonstrated to the satisfaction of the customs auth-          products' within the meaning of this Annex.
orities that:
                                                                  7.     For the purpose of verifying whether the conditions
— the goods returned are the same goods as those                  stated in paragraph 6 have been met, the customs auth-
     exported, and                                                orities shall have the right to call for any documentary
                                                                  evidence or to carry out any check which they consider
                                                                  appropriate.
— they have not undergone any operation beyond that
     necessary to preserve them in good condition while
                                                                  8.     It shall be the responsibility of the customs auth-
     in that country or while being exported.
                                                                  orities of the exporting State to ensure that the forms
                                                                  referred to in paragraph 1 are duly completed. In
                                                                  particular, they shall check whether the space reserved
                           TITLE II                               for the description of the products has been completed in
                                                                  such a manner as to exclude all possibility of fraudulent
                     PROOF OF ORIGIN                              additions. To this end, the description of the products
                                                                  must be indicated without leaving any blank lines. Where
                                                                  the space is not completely filled a horizontal line must
                                                                  be drawn below the last line of the description, the
                          Article 12
                                                                  empty space being crossed through.
                Movement certificate EUR. 1
                                                                  9.     The date of issue of the movement certificate must
 1.     Evidence of originating status of products, within        be indicated in the part of the certificate reserved for the
 the meaning of this Annex, shall be given by a movement          customs authorities.
 certificate EUR. 1, a specimen of which appears in
 Annex 4 to this Annex.                                            10.     A movement certificate EUR. 1 shall be issued by
                                                                  the customs authorities of the exporting country or
                                                                   territory when the products to which it relates are
 2.     A movement certificate EUR. 1 may be issued only           exported. It shall be made available to the exporter as
 where it can serve as the documentary evidence required           soon as actual export has been effected or ensured.
 for the purpose of implementing the Decision.
                                                                                              Article 13
 3.     A movement certificate EUR. 1 shall be issued only
                                                                            Issue of certificate EUR. 1 retrospectively
 on application having been made in writing by the
 exporter or, on his responsibility, by his authorized
 representative. Such application shall be made on a form,         1.    In exceptional circumstances a movement certificate
 a specimen of which appears in Annex 4 to this Annex,             EUR. 1 may also be issued after export of the products
 which shall be completed in accordance with this Annex.           to which it relates if it was not issued at the time of
                                                                   export because of errors or involuntary omissions or
                                                                   special circumstances.
 4.     Applications for movement certificates EUR. 1 must
 be preserved for at least three years by customs auth-            2.    For the implementation of         paragraph    1, the
 orities of the exporting country.                                 exporter must in the application:
 ---pagebreak--- N o C 95/72                             Official Journal of the European Communities                                 11. 4. 91
— indicate the place and date of export of the products           the final date of presentation specified in paragraph 1
    to which the certificate relates,                             may be accepted for the purpose of applying preferential
                                                                  treatment, where the failure to submit the certificate by
                                                                  the final date set is due to reasons of force majeure or
— certify that no movement certificate EUR. 1 was
                                                                  exceptional circumstances.
    issued at the time of export of the products in
    question, and state the reasons.
                                                                  3.     In other cases of belated presentation, the customs
                                                                  authorities of the importing State may accept the
3.    The customs authorities may issue a movement                certificates where the products have been submitted to
certificate EUR. 1 retrospectively only after verifying           them before the said final date.
that the information supplied in the exporter's
application agrees with that in the corresponding file.
                                                                                            Article 17
Certificates issued retrospectively must be endorsed with                               Transit procedure
one of the following phrases: 'EXPEDIDO A
POSTERIORI',          'UDSTED          EFTERF0LGENDE',            When the products enter an ACP State or O C T other
'NACHTRAGLICH AUSGESTELLT', 'EKA08EN EK                           than the country of origin, a further period of validity of
TQN YSTEPQN', 'ISSUED RETROSPECTIVELY',                            10 months shall commence on the date on which the
'DELIVRE A POSTERIORI', 'RILASCIATO A                             customs authorities in the country of transit enter the
POSTERIORI', 'AFGEGEVEN A POSTERIORI',                            following in box 7 of the certificate EUR. 1:
'EMITIDO A POSTERIORI'.
                                                                  — the word 'transit',
                         Article 14                               — the name of the country of transit,
           Issue of a duplicate certificate EUR. 1
                                                                  — the official stamp, a specimen of which has been
In the event of the theft, loss or destruction of a                    made available to the Commission, in conformity
movement certificate EUR. 1, the exporter may apply to                 with Article 25,
the customs authorities which issued it for a duplicate
made out on the basis of the export documents in their            — the date of the endorsements.
possession.
                                                                                            Article 18
The duplicate issued in this way must be endorsed with
                                                                                           Exhibitions
one     of the following words:             'DUPLICADO',
'DUPLIKAT',            'DUPLIKAT',             'ANTirPAOK)',
'DUPLICATE',          'DUPLICATE,            'DUPLICATO',          1.    Products sent from a country or territory for
'DUPLICAAT', 'SEGUNDA VIA'.                                       exhibition in a country other than an ACP State, a
                                                                  Member State or a country or territory and sold after
                                                                  the exhibition for importation into the Community shall
                         Article 15                               benefit on importation from the provisions of the
                                                                  Decision on condition that the products meet the
                 Replacement of certificates                      requirements of this Annex entitling them to be
                                                                  recognized as originating in a country or territory and
It shall at any time be possible to replace one or more           provided that it is shown to the satisfaction of the
movement certificates EUR. 1 by one or more other                 customs authorities of the importing State that:
movement certificates EUR. 1 provided that this is done
at the customs office where the goods are located.                 (a) an exporter has consigned these products from a
                                                                       country or territory to the country in which the
                                                                       exhibition is held and has exhibited them there;
                         Article 16
         Validity of movement certificates EUR. 1                 (b) the products have been sold or otherwise disposed of
                                                                       by that exporter to someone in the Community;
1.     A movement certificate EUR. 1 must be submitted,
within 10 months of the date of issue by the customs              (c) the products have been consigned during the
authorities of the exporting country or territory, to the              exhibition or immediately thereafter to the
customs authorities of the importing State where the                   Community in the state in which they were sent for
products are entered.                                                  exhibition;
                                                                  (d) the products have not, since they were consigned for
2.    A movement certificate EUR. 1 which is submitted                 exhibition, been used for any purpose other than
to the customs authorities of the importing State after                demonstration at the exhibiton.
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2.    A movement certificate EUR. 1 must be produced             3.    Revised amounts replacing the amounts expressed
to the customs authorities in the normal manner. The            in ecus above and in Article 22 (2) may be introduced by
name and address of the exhibition must be indicated            the Community at the beginning of any successive
thereon. Where necessary, additional documentary                two-year period if necessary. These amounts shall be, in
evidence of the nature of the products and the conditions       any event, such as to ensure that the value of the limits
under which they have been exhibited may be required.            as expressed in the currency of any Member State shall
                                                                 not decline.
3.     Paragraph 1 shall apply to any trade, industrial,
agricultural or crafts exhibition, fair or similar public
                                                                4.     If the products are invoiced in the currency of
show or display which is not organized for private
                                                                 another Member State of the Community, the importing
purposes in shops or business premises with a view to the
                                                                 State shall recognize the amount notified by the State
sale of foreign products, and during which the products
                                                                concerned.
remain under customs control.
                         Article 19                              5.    A form EUR. 2 shall be completed for each postal
                                                                 consignment. After completing and signing the form, the
                 Submission of certificates                     exporter shall, in the case of consignments by parcel
                                                                 post, attach the form to the dispatch note. In the case of
Movement certificates EUR. 1 shall be submitted to               consignment by letter post, the exporter shall insert the
customs authorities in the importing State, in accordance       form inside the package.
with the procedure laid down by that State. The said
authorities may require a translation of a certificate.
They may also require the import declaration to be               6.    These provisions do not exempt exporters from
accompanied by a statement from the importer to the              complying with any other formalities required by
effect that the products meet the conditions required for        customs or postal regulations.
the implementation of the Decision.
                         Article 20                                                      Article 22
                Importation by instalments                                    Exemptions from proof of origin
Where, at the request of the person declaring the goods          1.    Products sent as small packages to private persons
at the customs, a dismantled or non-assembled article            or forming part of travellers' personal luggage shall be
falling within Chapter 84 or 85 of the Harmonized                admitted as originating products without requiring the
System is imported by instalments on the conditions laid         production of a movement certificate EUR. 1 or the
down by the competent authorities, it shall be considered        completion of form EUR. 2, provided that such products
to be a single article and a movement certificate may be         are not imported by way of trade and have been declared
submitted for the whole article upon import of the first         as meeting the conditions required for the application of
instalment.                                                      these provisions, and where there is no doubt as to the
                                                                 veracity of such declaration.
                         Article 21
                                                                 2.    Imports which are occasional and consist solely of
                       Form EUR. 2
                                                                 products for the personal , use of the recipients or
                                                                 travellers or their families shall not be considered as
 1.    Notwithstanding Article 12 the evidence of orig-          imports by way of trade if it is evident from the nature
inating status, within the meaning of this Annex, of             and quantity of the products that no commercial purpose
products which form the subject of postal consignments           is in view.
 (including parcels), provided that they consist only of
originating products and that the value does not exceed
ECU 2 820 per consignment, is given by a form EUR. 2,            Furthermore, the total value of these products must not
of which a specimen appears in Annex 5 to this Annex,            exceed ECU 200 in the case of small packages or
which shall be completed by the exporter.                        ECU 565 in the case of the contents of travellers'
                                                                 personal luggage.
2.     Up to and including 30 April 1991 the ecu to be
used in any given national currency of a Member State
of the Community shall be the equivalent in that national                                Article 23
currency of the ecu as at 1 October 1988. For each
successive period of two years it shall be the equivalent             Information procedure for cumulation purposes
in that national currency of the ecu as at the first
working day in October in the year immediately                    1.   When Article 6 is applied, for the issue of a
preceding that two-year period.                                  movement certificate EUR. 1, the competent customs
 ---pagebreak---  No C 95/74                             Official Journal of the European Communities                                 11. 4. 91
office in the country or territory requested to issue the         importing the materials shall not ipso facto render the
certificate for products in the manufacture of which              document null and void if it is duly established that the
materials coming from other OCT, the Community or                 movement certificate EUR. 1, the form EUR. 2 or the
the ACP States are used, shall take into consideration            suppliers' declaration does correspond to the goods
the declaration, a specimen of which appears in Annex             submitted.
6.A or B, given by the exporter in the State or country or
territory from which it came, either on the commercial
invoice applicable to these materials, or on a supporting
document to that invoice.                                                                  TITLE III
2. A separate supplier's declaration shall be given by               METHODS OF ADMINISTRATIVE COOPERATION
the supplier for each consignment of materials on the
commercial invoice related to that shipment or in an
annex to that invoice, or on a delivery note or other                                      Article 25
commercial document related to that shipment which                                 Communication of stamps
describes the materials concerned in sufficient detail to
enable them to be identified.
                                                                  Specimens of the stamps used together with the
                                                                  addresses of the customs authorities competent to issue
3. For materials having obtained preferential orig-               movement certificates EUR. 1 and carry out the
inating status, the suppliers' declarations shall be given in     subsequent verification of movement certificates EUR. 1
the form prescribed in Annex 6.A.                                 and forms EUR. 2 must be sent to the Commission.
4. For materials which have undergone working or
processing in the ACP States, the OCT or the                      Movement certificates EUR. 1 and forms EUR. 2 shall be
Community without having obtained preferential orig-              accepted for the purpose of applying preferential
inating status, the suppliers' declarations shall be given in     treatment from the date the information is received by
the form prescribed in Annex 6.B.                                 the Commission.
5. The supplier's declaration may be made out on a                The Commission shall send this information to the
pre-printed form.                                                 customs authorities of the Member States.
6. The suppliers' declarations shall be signed in manu-
script. However, where the invoice and the supplier's             Movement certificates EUR. 1 and forms EUR. 2
declaration are established using electronic data-                presented to the customs authorities of the importing
processing methods, the supplier's declaration need not           State before this date shall be accepted in conformity
be signed in manuscript provided the responsible official         with the Community legislation.
in the supplying company is identified to the satisfaction
of the customs authorities in the State where the
suppliers' declarations are established. The said customs
authorities may lay down conditions for the implemen-                                      Article 26
tation of this paragraph.                                         Verification of movement certificates EUR. 1 and of
                                                                                        forms EUR. 2
7. Suppliers' declarations made and information
certificates issued in accordance with Articles 20 and 21         1. Subsequent verification of movement certificates
of Annex II to Decision 86/283/EEC (') before the date            EUR. 1 and of forms EUR. 2 shall be carried out at
of entry into force of this Decision remain valid.                random or whenever the customs authorities of the
                                                                  importing State have reasonable doubts as to the authen-
                                                                  ticity of the document or the accuracy of the information
                         Article 24                               regarding the true origin of the products in question.
                        Discrepancies
                                                                  2. In order to ensure the proper application of this
The discovery of slight discrepancies between the
                                                                  Annex, the Member States, the OCT and the ACP States
statements made in the movement certificate EUR. 1, in
                                                                  shall assist each other, through their respective customs
the form EUR. 2 or in the layout of the supplier's
                                                                  administrations, in checking the authenticity of
declaration referred to in Article 23 and those made in
                                                                  movement certificates EUR. 1 and the accuracy of the
the documents submitted to the customs office for
                                                                  information concerning the actual origin of the products
the purpose of carrying out the formalities for
                                                                  concerned and the declarations by exporters on forms
                                                                  EUR. 2 and the authenticity and accuracy of the infor-
(') OJ No L 175, 1. 7. 1986.                                      mation certificates referred to in Article 27 (2).
 ---pagebreak---   11.4.91                              Official Journal of the European Communities                               N o C 95/75
 The authorities consulted shall furnish the relevant infor-      submitted to the Committee on Origin set up by Council
 mation concerning the conditions under which the                 Regulation (EEC) No 802/68 0).
 product has been made, indicating especially the
 conditions in which the rules of origin have been
 respected in the various ACP States, Member States or            8.    In all cases, the settlement of disputes between the
 O C T concerned.                                                 importer and the customs authorities of the importing
                                                                  State shall be under the legislation of the said State.
 3.     If the customs authorities of the importing State                                  Article 27
 decide to suspend execution of the provisions of the
 Decision while awaiting the results of the verification,                    Verification of suppliers' declarations
 they shall offer to release the products to the importer         1. Verification of suppliers' declarations may be
 subject to any precautionary measures judged necessary.          carried out at random or whenever the customs auth-
                                                                  orities of the importing State have reasonable doubts as
                                                                  to the authenticity of the document or the accuracy or
 4.     For the purpose of implementing paragraph 1, the          completeness of the information concerning the true
 customs authorities of the importing country or territory        origin of the materials in question.
 shall return the movement certificate EUR. 1 or form
 EUR. 2, or a photocopy thereof, to the customs auth-
 orities of the exporting country or territory, giving,           2.    The customs authorities to which a supplier's
where appropriate, the reasons of form or substance for           declaration is submitted may request the customs auth-
 an inquiry. The relevant commercial documents, or a             orities of the State where the declaration was made to
 copy thereof, shall be attached to the certificate EUR. 1        issue an information certificate, a specimen of which
 or form EUR. 2 and the customs authorities shall                 appears in Annex 7 to this Annex. Alternatively, the
 forward any information that has been obtained                  customs authorities to which a supplier's declaration is
 suggesting that the particulars given on the said               submitted may request the exporter to produce an infor-
 certificate or the said form are inaccurate.                    mation certificate issued by the customs authorities of
                                                                 the State where the declaration was made.
 5.    The customs authorities of the importing State shall      A copy of the information certificate shall be preserved
be informed of the results of the verification within six        by the office which has issued it for at least two years.
 months. These results must be such as to make it possible
to determine whether the disputed movement certificate
 EUR. 1 or form EUR. 2 applied to the products actually          3.     The requesting customs authorities shall be
 exported, and whether these products can, in fact,              informed of the results of the verification as soon as
qualify for the application of the preferential                  possible. The results must be such as to indicate posi-
 arrangements.                                                   tively whether the declaration concerning the status of
                                                                 the materials is correct.
6.     Where the verification procedure or any other             4.     For the purpose of verification, suppliers shall keep
available information appears to indicate that the               for not less than two years a copy of the document
provisions of this Annex are being contravened, the              containing the declaration together with all necessary
country or territory on its own initiative or at the request     evidence showing the true status of the materials.
of the Community shall carry out appropriate enquiries
or arrange for such enquiries to be carried out with due
urgency to,identify and prevent such contraventions. The         5.     The customs authorities in the State where the
Commission may participate in the enquiries.                     supplier's declaration is established shall have the right to
                                                                 call for any evidence or to carry out any check which
                                                                 they consider appropriate in order to verify the
                                                                 correctness of any supplier's declaration.
Where the verification procedure or any other available
information appears to indicate that the provisions of this
Annex are being contravened, the products would be               6.     Any movement certificate EUR. 1 or form EUR. 2
accepted as originating products under this Annex only           issued or made out on the basis of an incorrect supplier's
after the completion of such aspects of administrative           declaration shall be considered null and void.
cooperation set down in the Annex which may have been
activated.
                                                                 7.     The procedure laid down in Article 26 (7) shall
                                                                 apply in case of any disputes concerning suppliers'
                                                                 declarations or information certificates.
7.     Disputes which cannot be settled between the
customs authorities of the importing State and those of
the exporting country or territory, or those which raise a
question as to the interpretation of this Annex, shall be        (') OJ No L 148, 28. 6. 1968, p. 1.
 ---pagebreak--- No C 95/76                            Official Journal of the European Communities                                  11.4.91
                         Article 28                             — value added,
                          Penalties
                                                                — number of employees in the enterprise concerned,
Penalties shall be imposed on any person who, in order
to enable products to be accepted as eligible for pref-         — anticipated volume of exports to the Community,
erential treatment, draws up or causes to be drawn up
either a document which contains incorrect particulars
for the purpose of obtaining a movement certificate             — other possible sources of supply for raw materials,
EUR. 1 or a form EUR. 2 containing incorrect
particulars.
                                                                — reasons for the duration requested in the light of
                                                                     efforts made to find new sources of supply,
                         Article 29
                         Free zones                             — other observations.
The Member States and the responsible authorities of the        The same rules shall apply to any requests for extension.
OCT shall take all necessary steps to ensure that goods
traded under cover of a movement certificate EUR. 1 or
of a supplier's declaration and which in the course of          The form may be amended in accordance with the
transport use a free zone situated in their territory are       procedure set out in Article 14 (2) and (3) of Regulation
not replaced by other goods and that they do not                (EEC) No 802/68.
undergo handling other than operations designed to
preserve them in good condition.
                                                                3. The examination of requests shall in particular take
                                                                into account:
                         Article 30
                        Derogations                             (a) the level of development or the geographical
                                                                     situation of the country or territory concerned;
1. Derogations from this Annex may be adopted
where the development of existing industries or the
                                                                (b) cases where the application of the existing rules of
creation of new industries justifies them.                           origin would significantly affect the ability of an
                                                                     existing industry in a country or territory to continue
The Member State or, where appropriate, the relevant                 its exports to the Community, with particular
authorities of the country or territory concerned shall              reference to cases where this could lead to cessation
notify the Community of its request for a derogation                 of its activities;
together with the reasons for the request in accordance
with paragraph 2.
                                                                (c) specific cases where it can be clearly demonstrated
                                                                     that significant investment in an industry could be
The Community shall respond positively to all requests               deterred by the rules of origin and where a dero-
which are duly justified in conformity with this Article             gation favouring the realization of the investment
and which cannot cause serious injury to an established              programme would enable these rules to be satisfied
Community industry.                                                  by stages.
2. In order to facilitate the examination of requests
for derogations, the Member State or country or                  4. In every case an examination shall be made to
territory making the request shall, by means of the form         ascertain whether the rules relating to cumulation of
given in Annex 9 to this Annex, furnish in support of its       origin do not provide a solution to the problem.
request the fullest possible information covering in
particular the points listed below:
                                                                 5. In addition when a request for derogation concerns
                                                                a least-developed country or territory, its examination
— description of the finished product,                           shall be carried out with a favourable bias having
                                                                particular regard to:
— nature and quantity of materials originating in a third
    country,
                                                                 (a) the economic and social impact of the decision to be
— nature and quantity of materials originating in ACP                taken especially in respect of employment;
    States, the Community or the OCT, or which have
    been processed there,                                       (b) the need to apply the derogation for a period taking
                                                                     into account the particular situation of the country
— manufacturing processes,                                           or territory concerned and its difficulties.
 ---pagebreak---  11. 4. 91                               Official Journal of the European Communities                               No C 95/77
6. In the examination of requests, special account shall               (b) If a decision is not taken within the time limit
be taken, case by case, of the possibility of conferring                   referred to in subparagraph (a), the request shall
originating status on products which include in their                      be considered as accepted.
composition materials originating in neighbouring
developing countries or least-developed countries,
provided that satisfactory administrative cooperation can          9. (a) The derogation shall usually be valid for a period
be established.                                                            of five years.
                                                                       (b) The derogation decision may provide for renewals
7. (a) Without prejudice to paragraphs 1 to 6, the dero-                   without a new decision being necessary, provided
         gation shall be granted where the value added to                  that the Member State or country or territory
         the non-originating products used in the country                  concerned submits, three months before the end
         or territory concerned is at least 45 % of the                    of each period, proof that it is still unable to meet
         value of the finished product, provided that the                  the conditions of this Annex which have been
         derogation is not such as to cause serious injury                 derogated from.
         to an economic sector of the Community or of
         one or more Member States.
                                                                           If any objection is made to the extension, the
                                                                           Committee shall examine it as soon as possible
                                                                           and decide whether to prolong the derogation.
    (b) Notwithstanding the provisions of subparagraph                     The Committee shall proceed as provided for in
         (a), the derogation shall be granted automatically                paragraph 8. All necessary measures shall be taken
         when it concerns non-sensitive materials or                       to avoid interruptions in the application of the
         products covered by the generalized system of                     derogation.
         preferences (GSP) applied by the Community at
         the time of the request.
                                                                    10. Should a derogation granted in accordance with
                                                                   paragraph 7 (b) cause serious disturbance in sectors of
         For any other product the decision on whether to          activity in some regions of the Community, it shall be
         grant a derogation will be taken with due regard          re-examined in accordance with the procedure set out in
         for the degree of sensitivity for the Community of        Article 14 (2) and (3) of Regulation (EEC) No 802/68,
         the materials or products in question, requests for       without prejudice to the emergency measures that the
         derogations being given sympathetic consideration         Commission is authorized to take.
         when they concern a total annual quantity not
         exceeding 1 % in value of average Community
         imports of the materials or products in question          Following this examination, the decision may be
         over the last three years for which statistics are        amended or revoked.
         available at the time of the request. Any request
         for a derogation must also propose solutions that
         will avoid the need for such a derogation in
         future.                                                                              TITLE IV
                                                                          CANARY ISLANDS, CEUTA AND MELILLA
    (c) The provisions of subparagraph (b) shall not
         apply in cases where the operations carried out in
         the country or territory concern only the working                                    Article 31
         or processing referred to in Article 3 (3).
                                                                                          Special conditions
                                                                    1. For the application of the provisions of Decision
8. (a) The Council and the Commission shall take all               86/47/EEC on trade between the OCT and the Canary
         the necessary measures to ensure that a decision is       Islands, Ceuta and Melilla, as last extended by Decision
         taken promptly and in any case not later than 60          90/.. ./EEC, this Annex shall apply mutatis mutandis
         working days after receipt of the request by the          subject to the particular conditions set out in paragraphs
         chairman of the Committee on Origin. In this              2 to 8 of this Article.
         context, Decision . . / . . ./EEC (') shall apply
         mutatis mutandis to the OCT.
                                                                   2. The term 'Community' used in this Annex shall not
                                                                   cover the Canary Islands, Ceuta or Melilla. The term
                                                                   'products originating in the Community' shall not cover
                                                                   products originating in the Canary Islands, Ceuta and
(') See COM(90) 280 final of 22 June 1990.                         Melilla.
 ---pagebreak--- No C 95/78                            Official Journal of the European Communities                              11.4.91
3. The following provisions shall apply instead of                                       TITLE V
Article 6 (2) and (3) and references to those Articles shall
apply mutatis mutandis to this Article.                                            FINAL PROVISIONS
                                                                                        Article 32
4. Where products wholly obtained in the Canary                                    Petroleum products
Islands, Ceuta, Melilla, the ACP States or the
Community undergo working and processing in the                 The products set out in Annex 8 shall be temporarily
OCT, they shall be considered as having been wholly             excluded from the scope of this Annex. Nevertheless, the
obtained in the OCT.                                            arrangements regarding administrative cooperation shall
                                                                apply, mutatis mutandis, to these products.
5. Working or processing carried out in the Canary                                      Article 33
Islands, Ceuta, Melilla, the ACP States or the
Community shall be considered as having been carried                            Revision of rules of origin
out in the OCT, when materials undergo further
working or processing in the OCT.                               The Council shall examine whenever necessary or
                                                                whenever the relevant authorities of the Community or a
                                                                country or territory so request, the application of the
6. Where products wholly obtained in the ACP States,            provisions of this Annex and their economic effects with
the OCT or the Community undergo working or                     a view to making any necessary amendments or adap-
processing in the Canary Islands, Ceuta or Melilla, they        tations.
shall be considered as having been wholly obtained in the
Canary Islands, Ceuta or Melilla.                               The Council shall take into account among other
                                                                elements the effects on the rules of origin of techno-
                                                                logical developments.
7. Working or processing carried out in the ACP                 The decisions taken shall be implemented as soon as
States, the OCT or the Community shall be considered            possible.
as having been carried out in the Canary Islands, Ceuta
or Melilla when materials undergo further working or
processing in the Canary Islands, Ceuta or Melilla.                                     Article 34
                                                                                         Annexes
8. The Canary Islands, Ceuta and Melilla shall be               The Annexes to this Annex shall form an integral part
considered as a single territory.                               thereof.
 ---pagebreak--- 11. 4. 91                                Official Journal of the European Communities                                      No C 95/79
                                                          Annex 1 to Annex II
                                                                 NOTES
          Foreword
          These notes shall apply where appropriate to all products manufactured using non-originating materials
          even if they are not subject to specific conditions contained in the list in Annex 2 but are subject instead to
          the change of heading rule set out in Article 3 (1).
          Note 1:
          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 column 3. Where, in some cases, the entry in the first column is preceded
               by an 'ex', this signifies that the rule in column 3 applies only 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 products in column 2 is therefore given in general terms, the adjacent rule in
               column 3 applies to all products which, under the harmonized system, are classified in headings of the
               chapter or in 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 rule in column 3.
          Note 2:
          2.1. The term 'manufacture' covers any kind of working or processing including 'assembly' or specific
               operations. However, see Note 3.5 hereafter.
          2.2. The term 'material' covers any 'ingredient', 'raw material', 'component' or 'part', etc., used in the
               manufacture of the product.
          2.3. The term 'product' refers to the product being manufactured, even if it is intended for later use in
               another manufacturing operation.
          2.4. The term 'goods' covers both 'materials' and 'products'.
          Note 3:
          3.1. In the case of any heading not in the list or any part of a heading that is not in the list, the 'change of
               heading' rule set out in Article 3 (1) applies. If a 'change of heading' condition applies to any entry in
               the list, then it is contained in the rule in column 3.
          3.2. 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.
          3.3. Where a rule states that 'materials of any heading' may be used, materials of the same heading as the
               product may also be used, subject, however, to any specific limitations which may also be contained in
               the rule. However, the expression 'manufacture from materials of any heading, including other
               materials of heading No . . . ' means that only materials classified in the same heading as the product of
               a different description than that of the product as given in column 2 of the list may be used.
 ---pagebreak--- N o C 95/80                              Official Journal of the European Communities                                       11. 4. 91
            3.4. If a product made from non-originating materials which has acquired originating status during manu-
                 facture 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 was 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.
            3.5. Even if the change of heading rule or the other rules contained in the list are satisfied, a product shall
                 not acquire originating status if the processing carried out, taken as a whole, is insufficient within the
                 meaning of Article 3 (3).
            3.6. The unit of qualification for the application of the origin rules shall be the particular product which is
                 considered as the basic unit when determining classification using the nomenclature of the harmonized
                 system. In the case of sets of products which are classified by virtue of rule 3 of the general rules for
                 the interpretation of the harmonized system, the unit of qualification shall be determined in respect of
                 each item in the set in the case of headings Nos 6308, 8206 and 9605.
                 Accordingly, it follows that:
                 — 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,
                 — 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 origin rules,
                 — where, under general rule 5 of the harmonized system, packing is included with the product for
                      classification purposes, it shall be included for the purposes of determining origin.
            Note 4:
            4.1. 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 of such material at a later stage is not.
            4.2. 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.
                  For example, the rule for fabrics says 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; one can use
                  one or the other or both.
                  If, however, a restriction applies to one material and other restrictions apply to other materials in the
                  same rule, then the restrictions only apply to the materials actually used.
 ---pagebreak--- 11.4.91                               Official Journal of the European Communities                                          No C 95/81
              For example, the rule for sewing machines specifies that both the thread tension mechanism used and
             the zigzag mechanism used must originate; these two restrictions only apply if the mechanisms
             concerned are actually incorporated into the sewing machine.
        4.3. When 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.
              For example, the rule for 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.
              For example, in the case of an article made from non-woven materials, if the use of only non-orig-
             inating 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.
             See also Note 7.3 in relation to textiles.
        4.4. If 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. 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.
             This note also applies to the value tolerance provided for in Article 5.
        Note 5:
        5.1. 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.
        5.2. 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.
        5.3. The terms 'textile pulp', 'chemical materials' and 'paper-making materials' are used in the list to
             describe the materials not classified in chapters 50 to 63, which can be used to manufacture artificial,
             synthetic or paper fibres or yarns.
        5.4. The term 'man-made staple fibres' is used in the list to refer to synthetic or artificial filament tow,
             staple fibres or waste, of heading Nos 5501 to 5507.
        Note 6:
        6.1. In the case of the products classified in those headings in the list to which a reference is made to this
             Note, the conditions set out in column 3 of the list shall not be applied to any basic textile materials
             used in their manufacture which, taken together, represent 10 % or less of the total weight of all the
             basic textile materials used (but see also Notes 6.3 and 6.4 hereafter).
 ---pagebreak--- N o C 95/82                               Official Journal of the European Communities                                       11.4.91
            6.2. 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,
                  —   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.
                  For example, a yarn of heading No 5205 made from cotton fibres of heading No 5203 and synthetic
                  staple fibres of heading No 5506 is a mixed yarn. Therefore, 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.
                  For example, a woollen fabric of heading No 5112 made from woollen yarn of heading No 5107 and
                  yarn of synthetic staple fibres of heading No 5509 is a mixed fabric. Therefore, synthetic yarn that
                  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.
                  For example, tufted textile fabric of heading No 5802 made from cotton yarn of heading No 5205 and
                  cotton fabric of heading No 5210 is only a mixed product if the cotton fabric is itself a mixed fabric
                  being made from yarns classified in two separate headings or if the cotton yarns used are themselves
                  mixtures.
                   For example, if the tufted textile fabric concerned had been made from cotton yarn of heading No
                  5205 and synthetic fabric of heading No 5407, then, obviously, the yarns used are two separate basic
                  textile materials and the tufted textile fabric is accordingly a mixed product.
                   For example, a carpet with tufts made both from artificial yarns and tufts made from cotton yarns and
                  with a jute backing is a mixed product because three textile materials are used. Any non-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 carpet. Thus, both the jute backing,
                   the artificial yarns and/or the cotton yarns could be imported at that stage of manufacture, provided
                  the weight conditions are met.
             6.3. 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 yarn.
             6.4. 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.
 ---pagebreak--- 11. 4. 91                              Official Journal of the European Communities                                      N o C 95/83
          Note 7:
          7.1. In the case of those textile products which are marked in the list by a footnote referring to this
               introductory note, textile trimmings and accessories 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 their weight does not exceed
                10 % of the total weight of all the textile materials incorporated.
               Textile trimmings and accessories are those classified in Chapters 50 to 63. Linings and interlinings are
        *       not to be regarded as trimmings or accessories.
          7.2. Any non-textile trimmings and accessories or other materials used which contain textiles do not have
               to satisfy the conditions set out in column 3 even though they fall outside the scope of Note 4.3.
          7.3. In accordance with Note 4.3, any non-originating non-textile trimmings and accessories or other
               product, which do not contain any textiles, may, anyway, be used freely where they cannot be made
               from the materials listed in column 3.
               For example, if a rule in the list says that for a particular textile item, such as a blouse, yarn must be
               used, this does not prevent the use of metal items, such as buttons, because they cannot be made from
               textile materials.
          7.4. Where a percentage rule applies, the value of trimmings and accessories must be taken into account
               when calculating the value of the non-originaung materials incorporated.
 ---pagebreak--- No C 95/84                             Official Journal of the European Communities                                             11. 4. 91
                                                        Annex 2 to 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
                                                                              Working or processing carried out on non-originating
 HS heading N o                   Description of product
                                                                                      materials that confers originating status
       (1)                                  (2)                                                          (3)
     0201         Meat of bovine animals, fresh or chilled                  Manufacture from materials of any heading except
                                                                            meat of bovine animals, frozen of heading No 0202
     0202         Meat of bovine animals, frozen                            Manufacture from materials of any heading except
                                                                            meat of bovine animals, fresh or chilled of heading No
                                                                            0201
     0206         Edible offal of bovine animals, swine, sheep, goats,      Manufacture from materials of any heading except
                  horses, asses, mules or hinnies, fresh, chilled or        carcases of heading Nos 0201 to 0205
                  frozen
     0210         Meat and edible meat offal, salted, in brine, dried       Manufacture from materials of any heading except
                  or smoked; edible flours and meals of meat or meat        meat and offal of heading Nos 0201 to 0206 and 0208
                  offal                                                     or poultry liver of heading No 0207
    0302 to       Fish, other than live fish                                Manufacture in which all the materials of Chapter 3
    0305                                                                    used must already be originating
    0402,         Dairy products                                            Manufacture from materials of any heading except
    0404 to                                                                 milk or cream of heading N o 0401 or 0402
    0406
                  Buttermilk, curdled milk and cream, yogurt, kephir        Manufacture in which:
                  and other fermented or acidified milk and cream,
                  whether or not concentrated or containing added           — all the materials of Chapter 4 used must already be
                  sugar or other sweetening matter or flavoured-or              originating,
                  containing added fruit or cocoa
                                                                            — any fruit juice (except those of pineapple, lime or
                                                                                grapefruit) of heading No 2009 used must be orig-
                                                                                inating, and
    0403
                                                                            — the value of any materials of Chapter 17 used does
                                                                                not exceed 30 % of the ex-works price of the
                                                                                product
                  Birds' eggs, not in shell and egg yolks, fresh, dried,    Manufacture from materials of any heading except
                  cooked, by steaming or by boiling in water,               birds' eggs of heading No 0407
                  moulded, frozen or otherwise preserved, whether or
                  not containing added sugar or other sweetening
                  matter
      0408
 ---pagebreak---  11.4.91                           Official Journal of the European Communities                                No C 95/85
        (1)                             (2)                                                  (3)
ex 0502       Prepared pigs', hogs' or boars' bristles and hair      Cleaning, disinfecting, sorting and straightening of
                                                                     bristles and hair
ex 0506       Bones and horn-cores unworked                          Manufacture in which all the materials of Chapter 2
                                                                     used must already be originating
   0710 to    Edible vegetables, frozen or dried, provisionally      Manufacture in which all the vegetable materials used
   0713       preserved except for heading Nos ex 0710 and ex        must already be originating
              0711
ex 0710       Sweet corn (uncooked or cooked by steaming or          Manufacture from fresh or chilled sweet corn
              boiling in water), frozen
ex 0711       Sweet corn, provisionally preserved                    Manufacture from fresh or chilled sweet corn
   0811       Fruit and nuts, uncooked or cooked by steaming or
              boiling in water, frozen, 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
                                                                     already be originating
   0812       Fruit and nuts provisionally preserved (for example,   Manufacture in which all the fruit or nuts used must
              by sulphur dioxide gas, in brine, in sulphur water     already be originating
              or in other preservative solutions), but unsuitable in
              that state for immediate consumption
   0813       Fruit, dried, other than that of heading Nos 0801      Manufacture in which all the fruit or nuts used must
              to 0806; mixtures of nuts or dried fruits of this      already be originating
              chapter
   0814       Peel of citrus fruit or melons (including water-       Manufacture in which all the fruit or nuts used must
              melons), fresh, frozen, dried or provisionally         already be originating
              preserved in brine, in sulphur water or in other
              preservative solutions
ex Chapter 11 Products of the milling industry; malt, starches;      Manufacture in which all the cereals, edible vegetables,
              inulin; whest gluten, except for heading N o ex        roots and tubers of heading N o 0714 or fruit used
              1106                                                   must already be originating
ex 1106       Flour and meal of the dried, shelled leguminous        Drying and milling of       leguminous vegetables    of
              vegetables of heading N o 0713                         heading N o 0708
   1301       Lac; natural gums, resins, gum-resins and balsams      Manufacture in which the value of any materials of
                                                                     heading No 1301 used may not exceed 50 °/o of the ex-
                                                                     works price of the product
 ---pagebreak--- No C 95/86                       Official Journal of the European Communities                                 11.4.91
       (1)                            (2)                                                 <3>
   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 Nos 0203, 0206 or 0207 or bones of
                                                                  heading No 0506
           — Other                                                Manufacture from meat or edible offal of swine of
                                                                  heading Nos 0203 or 0206 or of meat and edible offal
                                                                  of poultry of heading No 0207
   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 Nos 0201, 0202, 0204 or 0206 or
                                                                  bones of heading No 0506
           — Other                                                Manufacture in which all the animal materials of
                                                                  Chapter 2 used must already be originating
   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 and fats and oils of    Manufacture from materials of any heading including
               marine mammals                                     other materials of heading No 1504
           — Other                                                Manufacture in which all the animal materials of
                                                                  Chapters 2 and 3 used must already be originating
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 already be originating
ex 1507 to Fixed vegetable oils and their fractions, whether or
   1515    not refined, but not chemically modified:
           — Solid fractions, except for that of Jojoba oil       Manufacture from other materials of heading Nos
                                                                  1507 to 1515
           — Other, except for:                                   Manufacture in which all the vegetable materials used
                                                                  must already be originating
               — Tung oil; myrtle wax and Japan wax
               — Those for technical or industrial uses other
                   than the manufacture of foodstuffs for
                   human Consumption
ex 1516    Animal or vegetable fats and oils and their
           fractions, re-esterified, whether or not refined but
           not further prepared
 ---pagebreak---  11.4.91                       Official Journal of the European Communities                               No C 95/87
       (1)                           (2)                                                 (3)
ex 1517    Edible liquid mixtures of vegetable oils of heading   Manufacture in which all the vegetable materials used
           Nos 1507 to 1515                                      must already be originating
ex 1519    Industrial fatty alcohols having the character of     Manufacture from materials of any heading including
           artificial waxes                                     fatty acids of heading No 1519
   1601    Sausages and similar products, of meat, meat offal    Manufacture from animals of Chapter 1
           or blood; food preparations based on these
           products
   1602    Other prepared or preserved meat, meat offal or      Manufacture from animals of Chapter 1
           blood
   1603    Extracts and juices of meat, fish or crustaceans,     Manufacture from animals of Chapter 1. However, all
           molluscs or other aquatic invertebrates              fish, crustaceans, molluscs or other aquatic inverte-
                                                                brates used must already be originating
   1604    Prepared or preserved fish; caviar and caviar        Manufacture in which all the fish or fish eggs used
           substitutes prepared from fish eggs                  must already be originating
   1605    Crustaceans, molluscs and other aquatic inverte-     Manufacture in which all the crustaceans, molluscs or
           brates, prepared or preserved                        other aquatic invertebrates used must already be orig-
                                                                inating
ex 1701    Cane or beet sugar and chemically pure sucrose, in   Manufacture in which the value of any materials of
           solid form, flavoured or coloured                    Chapter 17 used does not exceed 30 % of the ex works
                                                                price of the product
   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 and fructose               Manufacture from materials of any heading including
                                                                other materials of heading No 1702
           — Other sugars in solid form, flavoured or           Manufacture in which the value of any materials of
               coloured                                         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 extraction or refining   Manufacture in which the value of any materials of
           of sugar, flavoured or coloured                      Chapter 17 used does not exceed 30 % of the ex works
                                                                price of the product
   1704    Sugar confectionery (including white chocolate),     Manufacture in which all the materials used are
           not containing cocos                                 classified in 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
   1806    Chocolate and other food preparations containing     Manufacture in which all the materials used are
           cocoa                                                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
 ---pagebreak--- No C 95/88                      Official Journal of the European Communities                                       11.4.91
      (1)                            (2)                                                    (3)
  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 °/o, 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 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
  1902     Pasta, whether or not cooked or stuffed (with meat      Manufacture in which all the cereals (except durum
           or other substances) or otherwise prepared, such as     wheat), meat, meat offal, fish, crustaceans or molluscs
           spaghetti, macaroni, noodles, lasagne, gnocchi,         used must already be originating
           ravioli, cannelloni; couscous, whether or not
           prepared
  1903     Tapioca and substitutes therefor prepared from          Manufacture from materials of any heading except
           starch, in the form of flakes, grains, pearls, sittings potato starch of heading No 1108
           or in similar forms
  1904     Prepared foods obtained by the swelling or roasting
           of cereals or cereal products (for example, corn
           flakes); cereals, other than maize (corn), in grain
           form, pre-cooked or otherwise prepared:
           — Not containing cocoa                                  Manufacture in which:
                                                                   — all the cereals and flour (except maize of the
                                                                       species Xea indurate 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, biscuits and other bakers'        Manufacture from materials of any heading, except
           wares, whether or not containing cocoa;                 those of Chapter 11
           communion wafers, empty cachets of a kind
           suitable for pharmaceutical use, sealing wafers, rice
           paper and similar products
  2001     Vegetables, fruit nuts and other edible parts of        Manufacture in which all the fruit, nuts or vegetables
           plants, prepared or preserved by vinegar or acetic      used must already be originating
           acid
  2002     Tomatoes prepared or preserved otherwise than by        Manufacture in which all the tomatoes used must
           vinegar or acetic acid                                  already be originating
  2003     Mushrooms and truffles, prepared or preserved           Manufacture in which all the mushrooms or truffles
           otherwise than by vinegar or acetic acid                used must already be originating
  2004 and Other vegetables prepared or preserved otherwise        Manufacture in which all the vegetables used must
  2005     than by vinegar or acetic acid, frozen or not frozen    already be originating
 ---pagebreak--- 11. 4. 91                        Official J o u r n a l of the E u r o p e a n Communities                               N o C 95/89
        (i)                           (2)                                                                (3)
   2006     Fruit, nuts, fruit-peel and other parts of plants,                 Manufacture in which the value of any materials of
            preserved by sugar (drained, glace or crystallized)                Chapter 17 used does not exceed 30 % of the ex works
                                                                               price of the product
   2007     Jams, fruit jellies, marmalades, fruit or nut puree                Manufacture in which the value of any materials of
            and fruit or nut pastes, being cooked preparations,                Chapter 17 used must not exceed 30 % of the ex
            whether or not containing added sugar or other                     works price of the product
            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 otherwise than by                          Manufacture in which all the fruit and nuts used must
                steaming or boiling in water, not containing                   already be originating
                added sugar, frozen
            — Nuts, not containing added sugar or spirits                      Manufacture in which the 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 °/o of the ex works price of the
                                                                               product
ex 2009     Fruit juices (including grape must), unfermented                   Manufacture in which all the materials used are
            and not containing added spirit, whether or not                    classified in a heading other than that of the product,
            containing added sugar or other sweetening matter                  provided the value of any materials of Chapter 17 used
                                                                               does not exceed 30 % of the ex works price of the
                                                                               product
ex 2101     Roasted chicory and extracts, essences and concen-                 Manufacture in which all the chicory used must
            trates thereof                                                     already be originating
ex 2103         Sauces and preparations therefor;             mixed            Manufacture in which all the materials used are
                condiments and mixed seasonings                                classified in a heading 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
ex 2104     — Soups and broths and preparations therefor                       Manufacture from materials of any heading, except
                                                                               prepared or preserved vegetables of heading Nos 2002
                                                                               to 2005
            — Homogenized composite food preparations                          The rule for the heading in which the product would
                                                                               be classified in bulk shall apply
ex 2106     Sugar syrups, flavoured or coloured                                Manufacture in which the value of any materials of
                                                                               Chapter 17 used must not exceed 30 % of the ex
                                                                               works price of the product
   2201     Waters, including natural or artificial mineral                    Manufacture in which all the water used must already
            waters and aerated waters, not containing added                    be originating
            sugar or other sweetening matter nor flavoured; ice
            and snow
 ---pagebreak--- No C 95/90                      Official Journal of the European Communities                                     11. 4. 91
       (1)                            (2)                                                   (3)
   2202     Waters, including mineral waters and aerated           Manufacture in which all the materials used are
            waters, containing added sugar or other sweetening     classified in a heading other than that of the product,
            matter or flavoured, and other non-alcoholic           provided the value of any materials of Chapter 17 used
            beverages, not including fruit or vegetable juices of  does not exceed 30 % of the ex works price of the
            heading No 2009                                        product and any fruit juice used (except for pineapple,
                                                                   lime and grapefruit juices) must already be originating
ex 2204     Wine of fresh grapes, including fortified wines, and   Manufacture from other grape must
            grape must with the addition of alcohol
   2205     The following, containing grape materials:             Manufacture from materials of any heading, except
                                                                   grapes or any material derived from grapes
ex 2207,    Vermouth and other wine of fresh grapes flavoured
ex 2208 and with plants or aromatic substances; ethyl alcohol
ex 2209     and other spirits, denatured or not; spirits, liqueurs
            and other spirituous beverages; compound alcoholic
            preparations of a kind used for the manufacture of
            beverages; vinegar
ex 2208     Whiskies of an alcoholic strength by volume of less    Manufacture in which the value of any cereal based
            than 50 % vol.                                         spirits used does not exceed 15 % of the ex works
                                                                   price of the product
ex 2303     Residues from the manufacture of starch from           Manufacture in which all the maize used must already
            maize (excluding concentrated steeping liquors), of    be originating
            a protein content, calculated on the dry product,
            exceeding 40 % by weight
ex 2306     Oil cake and other solid residues resulting from the   Manufacture in which all the olives used must already
            extraction of olive oil, containing more than 3 % of   be originating
            olive oil
   2309     Preparations of a kind used in animal feeding          Manufacture in which all the cereals, sugar or
                                                                   molasses, must or milk used must already be orig-
                                                                   inating
   2402     Cigars, cheroots, cigarillos and cigarettes, of        Manufacture in which at least 70 % by weight of the
            tobacco or of tobacco substitutes                      unmanufactured tobacco or tobacco refuse of heading
                                                                   No 2401 used must already be originating
ex 2403     Smoking tobacco                                         Manufacture in which at least 70 % by weight of the
                                                                    unmanufactured tobacco or tobacco refuse of heading
                                                                   No 2401 used must already be originating
ex 2504      Natural crystalline graphite, with enriched carbon     Enriching of the carbon content, purifying and
            content, purified and ground                           grinding of crude crystalline graphite
ex 2515      Marble, merely cut by sawing or otherwise into         Cutting, by sawing or otherwise, of marble (even if
             blocks or slabs of a rectangular (including square)    already sawn) of a thickness exceeding 25 cm
             shape, of a thickness not exceeding 25 cm
             Granite porphyry, basalt, sandstone and other          Cutting, by sawing or otherwise, of stones (even if
ex 2516      monumental and building stones, merely cut by          already sawn) of a thickness exceeding 25 cm
             sawing or otherwise, into blocks or slabs of a
             rectangular (including square) shape, of a thickness
             not exceeding 25 cm
             Calcined dolomite                                      Calcination of dolomite not calcined
ex 2518
 ---pagebreak--- 11.4.91                            Official Journal of the European Communities                                No C 95/91
       (1)                               (2)                                                   (3)
ex 2519       Crushed natural magnesium carbonate (magnesite),       Manufacture in which all the materials used are
              in hermetically sealed containers, and magnesium       classified in a heading other than that of the product.
              oxide, whether or not pure, other than fused           However, natural magnesium carbonate (magnesite)
              magnesia or dead-burned (sintered) magnesia            may be used
ex 2520       Plasters specially prepared for dentistry              Manufacture in which the 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 powdered                    Calcination or grinding of earth colours
ex 2707       Oils in which the weight of the aromatic consti-       These are Annex 8 products
              tuents exceeds that of the non-aromatic consti-
              tuents, being oils similar to mineral oils obtained by
              distillation of high temperature coal tar, of which
              more than 65 % by volume distils at a temperature
              of up to 250 ° C (including mixtures of petroleum
              spirit and benzole), for use as power or heating
              fuels
   2709       Mineral oils and products of their distillation; bitu- These are Annex 8 products
   to         minous substances; mineral waxes
   2715
ex Chapter 28 Inorganic chemicals; organic or inorganic              Manufacture in which all the materials used are
              compounds of precious metals, of rare earth metals,    classified within a heading other than that of the
              of radioactive elements or of isotopes; except for     product. However, materials classified within the same
              heading Nos ex 2811 and ex 2833 for which the          heading may be used provided their value does not
              rules are set out below                                exceed 20 % of the ex works price of the product
ex 2811       Sulphur trioxide                                       Manufacture from sulphur dioxide
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 Chapter 29 Organic chemicals, except for heading Nos ex           Manufacture in which all the materials used are
              2901, ex 2902, ex 2905, 2915, ex 2932, 2933 and        classified within a heading other than that of the
              2934, for which the position is 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
ex 2901       Acyclic hydrocarbons for use as power or heating
              fuels                                                  These are Annex 8 products
ex 2902       Cyclanes and cyclenes (other than azulenes),
              benzene, toluene, xylenes, for use as power or         These are Annex 8 products
              heating fuels
ex 2905       Metal alcoholates of alcohols of this heading and      Manufacture from materials of any heading, including
              of ethanol or glycerol                                 other materials of heading No 2905. However, metal
                                                                     alcoholates of this heading may be used, provided their
                                                                     value does not exceed 20 % of the ex works price of
                                                                     the product
   2915       Saturated acyclic monocarboxylic acids and their       Manufacture from materials of any heading. However,
              anhydrides, halides, peroxides and peroxyacids;        the value of all the materials of heading Nos 2915 and
              their halogenated, sulphonated, nitrated or            2916 used may not exceed 20 % of the ex works price
              nitrosated derivatives                                 of the product
ex 2932       — Internal ethers and their halogenated,               Manufacture from materials of any heading. However,
                  sulphonated, nitrated or nitrosated derivates      the value of all the materials of heading No 2909 used
                                                                     may not exceed 20 % of the ex works price of the
                                                                     product
 ---pagebreak--- No C 95/92                        Official Journal of the European Communities                                    11.4.91
       (0                               (2)                                                  (3)
ex 2932          Cyclic acetals and internal hemiacetals and their  Manufacture from materials of any heading
   (cont'd)      halogenated, sulphonated, nitrated or nitrosated
                 derivates
   2933       Heterocyclic compounds with nitrogen hetero-          Manufacture from materials of any heading. However,
              atom(s) only; nucleic acids and their salts           the value of all the materials of heading Nos 2932 and
                                                                    2933 used may not exceed 20 % of the ex works price
                                                                    of the product
   2934       Other heterocyclic compounds                          Manufactured from materials of any heading.
                                                                    However, the value of all the materials of heading Nos
                                                                    2932, 2933 and 2934 used may not exceed 20 % of the
                                                                    ex works price of the product
ex Chapter 30 Pharmaceutical products, except for heading Nos       Manufacture in which all the materials used are
              3002, 3003 and 3004, for which the rules are set      classified within a heading other than that of the
              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 thera-
              peutic, prophylactic or diagnostic uses; antisera and
              other blood fractions; vaccines, toxins, cultures of
              micro-organisms (excluding yeasts) and similar
              products:
              — Products consisting of two or more constituents     Manufacture from materials of any heading, including
                 which have been mixed together for therapeutic     other materials of heading No 3002. The materials of
                  or prophylactic uses or unmixed products for      this description may also be used, provided their value
                 these uses, put up in measured doses or in forms   does not exceed 20 % of the ex works price of the
                  or packings for retail sale                       product
              — 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
                      Animal blood prepared for therapeutic or      Manufacture from materials 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 than antisera, haemo-    Manufacture from materials of any heading, including
                      globin and serum 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
                      Haemoglobin, blood globulin and serum          Manufacture from materials 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 not exceed 20 % of the ex works price of the
                                                                     product
 ---pagebreak---  11. 4. 91                                      Official Journal of the European Communities                                             No C 95/93
         (1)                                          (2)                                                              (3)
    3003                 Medicaments (excluding goods of heading Nos                         Manufacture in which:
    and                  3002, 3005 or 3006)                                                 — all the materials used are classified within a heading
     3004                                                                                        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
ex Chapter 31            Fertilizers except for heading Nos ex 3103 and ex                   Manufacture in which all the materials used are
                         3105, for which the rules are set out below                         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 20 °/o of the ex works price of the product
ex 3103                  Crushed and powdered calcined natural aluminium                     Crushing and powdering of calcined natural aluminium
                         calcium phosphates                                                  calcium phosphates
ex 3105                  Mineral or chemical fertilizers containing two or                   Manufacture in which:
                         three of the fertilizing elements nitrogen, phos-                  — all the materials used are classified within a heading
                         phorus and potassium; other fertilizers; goods of                       other than that of the product. However, materials
                         this chapter, in tablets or similar forms or in                         classified within the same heading may be used
                         packages of a gross weight not exceeding 10 kg,                         provided their value does not exceed 20 % of the
                         except for:                                                             ex works price of the product, and
                         —   Sodium nitrate                                                 — the value of all the materials used does not exceed
                         —   Calcium cyanamide                                                   50 % of the ex works price of the product
                         —   Potassium sulphate
                         —   Magnesium potassium sulphate
ex Chapter 32            Tanning or dyeing extracts; tannins and their deri-                 Manufacture in which all the materials used are
                         vatives; dyes, pigments and other colouring matter;                classified within a heading other than that of the
                         paints and varnishes; putty and other mastics; inks;                product. However, materials classified within the same
                         except for heading Nos ex 3201 and 3205, for                        heading may be used provided their value does not
                         which the rules are set out below                                   exceed 20 °/o of the ex works price of the product
ex 3201                  Tannins and their salts, ethers, esters and other                   Manufacture from tanning extracts of vegetable origin
                         derivatives
     3205                Colour lakes; preparations as specified in note 3 to                Manufacture from materials of any heading, except
                         this chapter based on colour lakes (')                              heading Nos 3202 and 3204 provided the value of any
                                                                                             materials classified in heading No 3205 does not
                                                                                            exceed 20 % of the ex works price of the product
ex Chapter 33            Essential oils and resinoids; perfumery, cosmetic or                Manufacture in which all the materials used are
                         toilet preparations; except for heading No 3301,                   classified within a heading other than that of the
                         for which the rule is 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
    3301                 Essential oils (terpeneless or not), including                      Manufacture from materials of any      heading, including
                         concretes and absolutes; resinoids; concentrates of                 materials of a different 'group' (2) within this heading.
                         essential oils in fats, in fixed oils, in waxes or the             However, materials of the same group may be used,
                         like, obtained by enfleurage or maceration; terpenic               provided their value does not exceed 20 % of the ex
                         by-products of the deterpenation of essential oils;                works price of the product
                         aqueous distillates ana aqueous solutions of
                         essential oils
(') 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 of
    colouring preparations, provided they are not classified within another heading in Chapter 32.
(') A 'group' is regarded as any part of the heading separated from the rest by a semi-colon.
 ---pagebreak--- No C 95/94                         Official Journal of the European Communities                                   11.4.91
       (1)                              (2)                                                  (3)
ex Chapter 34 Soap, organic surface-active agents, washing prepa-   Manufacture in which all the materials used are
              rations, lubricating preparations, artificial waxes,  classified within a heading other than that of the
              prepared waxes, polishing or scouring preparations,   product. However, materials classified within the same
              candles and similar articles, modelling pastes,       heading may be used provided their value does not
              'dental waxes' and dental preparations with a basis   exceed 20 % of the ex works price of the product
              of plaster; except for heading Nos ex 3403 and
              3404, for which the position is set out below
ex 3403       Lubricating preparations containing petroleum oils    These are Annex 8 products
              or oils obtained from bituminous minerals,
              provided they represent less than 70 % by weight
ex 3404       Artificial waxes and prepared waxes:
              — With a basis of paraffin, petroleum waxes,          These are Annex 8 products
                  waxes obtained from bituminous minerals, slack
                  wax or scale wax
              — Other                                               Manufacture from materials of any heading, except:
                                                                    — hydrogenated oils having the character of waxes of
                                                                        heading No 1516
                                                                    — 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 Chapter 35 Albuminoidai substances; modified starches; glues;    Manufacture in which all the materials used are
              enzymes; except for heading Nos 3505 and ex 3507      classified within a heading other than that of the
              for which 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
   3505       Dextrins and other modified starches (for example,
              pregelatinized or esterified starches); glues based
              on starches, or on dextrins or other modified
              starches:
              — 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
                                                                    those of heading No 1108
ex 3507       Prepared    enzymes    not    elsewhere specified or  Manufacture in which the value of all the materials
              included                                              used does not exceed 50 % of the ex works price of
                                                                    the product
   Chapter 36 Explosives; pyrotechnic products; matches; pyro-      Manufacture in which all the materials used are
              phoric alloys; certain combustible preparations       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 20 % of the ex works price of the product
ex Chapter 37 Photographic or cinematographic goods; except for     Manufacture in which all the materials used are
              heading Nos 3701, 3702 and 3704 for which the         classified within a heading 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
 ---pagebreak---  11.4.91                            Official Journal of the European Communities                                  N o C 95/95
                                         (2)                                                     (3)
              Photographic plates and film in the flat, sensitized,   Manufacture in which all the materials used are
              unexposed, of any material other than paper,            classified in a heading other than heading No 3702
              paperboard or textiles; instant print film in the flat,
              sensitized, unexposed, whether or not in packs
              Photographic film in rolls, sensitized, unexposed, of   Manufacture in which all the materials used are
              any material other than paper, paperboard or            classified within a heading other than heading No 3701
              textiles; instant print film in rolls, sensitized,      or 3702
              unexposed
              Photographic plates, film, paper, paperboard and        Manufacture in which all the materials used are
              textiles, exposed but not developed                     classified within a heading other than heading Nos
                                                                      3701 to 3704
ex Chapter 38 Miscellaneous chemical products; except for             Manufacture in which all the materials used are
              heading Nos ex 3801, ex 3803, ex 3805, ex 3806,         classified within a heading other than that of the
              ex 3807, 3808 to 3814, 3818 to 3820, 3822 and             roduct. However, materials classified within the same
              3823 for which the rules are set out below:             E eading may be used provided their value does not
                                                                      exceed 20 °/o of the ex works price of the product
                  Colloidal graphite in suspension in oil and semi-   Manufacture in which the value of all the materials
                  colloidal graphite; carbonaceous pastes for elec-   used does not exceed 50 °/o of the ex works price of
                  trodes                                              the product
                  Graphite in paste form, being a mixture of more     Manufacture from materials of any heading. However,
                  than 30 % by weight of graphite with mineral        the value of the materials of heading No 3403 used
                  oils                                                must not exceed 20 % of the ex works price of the
                                                                      product
              Refined tall oil                                        Refining of crude tall oil
              Spirits of sulphate turpentine, purified                Purification by distillation or refining of raw spirits of
                                                                      sulphate turpentine
              Ester gums                                              Manufacture from resin acids
              Wood pitch (wood tar pitch)                             Distillation of wood tar
              Miscellaneous chemical products:
              — Prepared additives for lubricating oil,               These are Annex 8 products
                  containing petroleum oils or oils obtained from
                  bituminous minerals, of heading No 3811
                  The following of heading No 3823:                   Manufacture in which all the materials used are
                                                                      classified within a heading other than that of the
                  — Prepared binders for foundry moulds or            product. However, materials classified within the same
                       cores based on natural resinous products       heading may be used provided their value does not
                                                                      exceed 20 % of the ex works price of the product
                  — Naphthenic acids, 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
                  — Getters for vacuum tubes
                  — Alkaline iron oxide for the purification of
                       gas
 ---pagebreak--- No C 95/96                                      Official Journal of the European Communities                                                11.4.91
         (1)                                          (2)                                                                (3)
    3808                    — Ammoniacal gas liquors and spent oxide
    to                           produced in coal gas purification
    3814                    — Sulphonaphthenic             acids,     their    water
    3818                         insoluble salts and their esters
    to
    3820                    — Fusel oil and Dippel's oil
    3822
    and                     — Mixtures of salts having different anions
    3823
    (cont'd)                — 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
    3901                Plastics in primary forms, waste, parings and scrap,                  Manufacture in which:
    to                  of plastic:                                                           — the value of all the materials used does not exceed
    3915                — Addition homopolymerization products                                    50 % of the ex works price of the product, and
                                                                                              — the value of any materials of Chapter 39 used does
                                                                                                  not exceed 20 % of the ex works price of the
                                                                                                  product (')
                        — Other                                                               Manufacturing in which the value of the materials of
                                                                                              Chapter 39 used does not exceed 20 °/o of the ex works
                                                                                              price of the product (')
    3916                Semi-manufactures of plastics:
    to                  — Flat products, further worked than only                             Manufacture in which the value of any materials of
    3921                    surface-worked or cut into forms other than                       Chapter 39 used does not exceed 50 % of the ex works
                            rectangles; other products, further worked than                   price of the product
                            only surface-worked
                        — Other:
                            — Addition homopolymerization products                            Manufacture in which:
                                                                                              — the value of all the materials used does not exceed
                                                                                                  50 % of the ex works price of the product, and
                                                                                              — the value of any materials of Chapter 39 used does
                                                                                                  not exceed 20 % of the ex works price of the
                                                                                                  product (')
                            — Other                                                           Manufacture in which the value of any materials of
                                                                                              Chapter 39 used does not exceed 20 % of the ex
                                                                                              works price of the product (')
     3922               Articles of plastic                                                    Manufacture in which the value of all the materials
     to                                                                                       used does not exceed 50 % of the ex works price of
     3926                                                                                     the product
ex 4001                 Laminated slabs of crepe rubber for shoes                              Lamination of sheets of natural rubber
     4005               Compounded rubber, unvulcanized,                 in primary            Manufacture in which the value of all the materials
                        forms or in plates, sheets or strip                                   used, except natural rubber, does not exceed 50 % of
                                                                                              the ex works price of the product
     4012               Retreaded or used pneumatic tyres of rubber; solid                    Manufacture from materials of any heading, except
                        or cushion tyres, interchangeable tyre treads and                     those of heading Nos 4011 or 4012
                        tyre flaps of rubber
ex 4017                 Articles of hard rubber                                                Manufacture from hard rubber
(') In the case of 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 restriction only applies to that group of materials which predominates by weight in the product.
 ---pagebreak---   11.4.91                          Official Journal of the European Communities1                                No C 95/97
         (i)                             (2)                                                   (3)
  ex 4102     Raw skins of sheep or lambs, without wool on            Removal of wool from sheep or lamb skins, with wool
                                                                     on
     4104     Leather, without hair or wool other than leather of    Retanning of pre-tanned leather
     to       heading No 4108 or 4109                                or
     4107                                                            Manufacture in which all the materials used are
                                                                     classified in a heading other than that of the product
     4109     Patent leather and       patent   laminated  leather;  Manufacture from leather of heading Nos 4104 to
              metallized leather                                     4107 provided its value does not exceed 50 % of the ex
                                                                     works price of the product
 ex 4302     Tanned or dressed furskins, assembled:
             — Plates, crosses and similar forms                     Bleaching or dyeing, in addition to cutting and
                                                                     assembly of non-assembled tanned or dressed furskins
             — Other                                                 Manufacture from non-assembled, tanned or dressed
                                                                     furskins
     4303    Articles of apparel, clothing accessories and other     Manufacture from non-assembled, tanned or dressed
             articles of furskin                                     furskins, of heading No 4302
 ex 4403     Wood roughly squared                                    Manufacture from wood in the rough, whether or not
                                                                     stripped of its bark or merely roughed down
 ex 4407     Wood sawn or chipped lengthwise, sliced or peeled,      Planing, sanding or finger-jointing
             of a thickness exceeding 6 mm, planed, sanded or
             finger-jointed
 ex 4408     Veneer sheets and sheets for plywood, of a              Splicing, planing, sanding or finger-jointing
             thickness 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       Sanding or finger-jointing
                 flooring, not assembled) continuously shaped
                 (tongued,      grooved,     rebated,   chamfered,
                 V-jointed, beaded, moulded, rounded or the
                 like) along any of its edges or faces, sanded or
                 finger-jointed
             — Beadings and mouldings                               Beading or moulding
ex 4410      Beadings and mouldings, including            moulded   Beading or moulding
    to       skirting and other moulded boards
ex 4413
ex 4415      Packing cases, boxes, crates, drums and similar        Manufacture from boards not cut to size
             packings, of wood
ex 4416      Casks, barrels, vats, tubs and other         coopers'  Manufacture from riven staves, not further worked
             products and parts thereof, of wood                    than sawn on the two principal surfaces
ex 4418      — Builders' joinery and carpentry of wood              Manufacture in which all the materials used are
                                                                    classified within a heading other than that of the
                                                                    product. However, cellular wood panels, shingles and
                                                                    shales may be used
             — Beadings and mouldings                               Beading or moulding
ex 4421      Match splints; wooden pegs or pins for footwear        Manufacture from wood of any heading except drawn
                                                                    wood of heading N o 4409
 ---pagebreak--- No C 95/98                                      Official Journal of the European Communities                                                    11.4.91
         (1)                                         (2)                                                                 (3)
    4503                 Articles of natural cork                                              Manufacture from cork of heading No 4501
ex 4811                  Paper and paperboard, ruled, lined or squared only                    Manufacture from paper-making materials of Chapter
                                                                                               47
    4816                 Carbon paper, self->copy paper and other copying                      Manufacture from paper-making materials of Chapter
                         or transfer papers (other than those of heading No                    47
                         4809), duplicator stencils and offset plates, of
                         paper, whether or not put up in boxes
    4817                 Envelopes, letter cards, plain postcards and corre-                   Manufacture in which:
                         spondence cards, of paper or paperboard; boxes,
                         pouches, wallets and writing compendiums, of                          — all the materials used are classified within a heading
                         paper or paperboard, containing an assortment of                          other than that of the product, and
                         paper stationery
                                                                                               — the value of all the materials used does not exceed
                                                                                                   50 % of the ex works price of the product
ex 4818                  Toilet paper                                                          Manufacture from paper-making materials of Chapter
                                                                                               47
ex 4819                  Cartons, boxes, cases, bags and other packing                         Manufacture in which:
                         containers, of paper, paperboard, cellulose wadding
                         or webs of cellulose fibres                                           — 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
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, cellulose wadding and                        Manufacture from paper-making materials of Chapter
                         webs of cellulose fibres, cut to size or shape                        47
    4909                 Printed or illustrated postcards; printed cards                       Manufacture from materials       not    classified within
                         bearing       personal     greetings,     messages        or          heading N o 4909 or 4911
                         announcements, whether or not illustrated, with or
                         without envelopes or trimmings
    4910                 Calendars of any kind, printed, including calendar
                         blocks:
                         — Calenders of the 'perpetual' type or with                           Manufacture in which:
                              replaceable blocks mounted on bases other than
                              paper or paperboard                                              — 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
                         — Other                                                               Manufacture from materials       not    classified within
                                                                                               heading No 4909 or 4911
ex 5003                  Silk waste (including cocoons unsuitable for                          Carding or combing of silk waste
                         reeling, yarn waste and garnetted stock), carded or
                         combed
    5501                 Man-made staple fibres                                                Manufacture from chemical materials or textile pulp
    to
    5507
ex Chapter 50            Yarn, monofilament and thread                                         Manufacture from ('):
    to
    Chapter 55                                                                                 — natural fibres not carded or combed or otherwise
                                                                                                   processed for spinning,
                                                                                               — chemical materials or textile pulp, or
                                                                                               — paper-making materials
(') For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6.
 ---pagebreak---  11. 4. 91                                       Official Journal of the European Communities                                               No C 95/99
          (1)                                         (2)                                                                  (3)
ex Chapter 50             Woven fabrics:
     to                   — Incorporating rubber thread                                         Manufacture from single yarn (')
     Chapter 55
     (cont'd)
                          — Other                                                               Manufacture from ('):
                                                                                                — coir yarn,
                                                                                                — natural fibres,
                                                                                                — man-made staple fibres not carded or combed or
                                                                                                     otherwise processed 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 Chapter 56            Wadding, felt and non-wovens; special yarns, twine                     Manufacture from ( l ):
                          cordage, ropes and cables and articles thereof                       — coir yarn,
                          except for heading Nos 5602, 5604, 5605 and 5606,
                          for which the rules are set out below                                — natural fibres,
                                                                                               — chemical materials or textile pulp, or
                                                                                               — paper-making materials
     5602                 Felt, whether or not impregnated, coated, covered
                         or laminated:
                         — Needleloom felt                                                      Manufacture from ('):
                                                                                               — natural fibres,
                                                                                               — 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 that 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, textile covered; textile
                         yarn, and strip and the like of heading No 5404 or
                         5405, impregnated, coated, covered or sheathed
                         with rubber or plastics:
                         — Rubber thread and cord, textile covered                             Manufacture from rubber thread or cord, not textile
                                                                                               covered
(') For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6.
 ---pagebreak--- No C 95/100                                     Official Journal of the European Communities                                                  11. 4. 91
         (1)                                         (2)                                                                  (3)
    5604                 — Other                                                               Manufacture from ( l ):
    (cont'd)                                                                                   — natural fibres not carded or combed or otherwise
                                                                                                  processed for spinning,
                                                                                               — chemical materials or textile pulp, or
                                                                                               — paper-making materials
    5605                 Metallized yarn, whether or not gimped, being                         Manufacture from ('):
                         textile yarn, or strip or the like of heading No 5404                 — natural fibres,
                         or 5405, combined with metal in the form of
                         thread, strip or powder or covered with metal                         — man-made staple fibres not carded or combed or
                                                                                                   otherwise processed for spinning,
                                                                                               — chemical materials or textile pulp, or
                                                                                               — paper-making materials
    5606                 Gimped yarn, and strip and the like of heading No                     Manufacture from ('):
                         5404 or 5405, pimped (other then those of heading                     — natural fibres,
                         No 5605 and gimped horsehair yarn); chenille yarn
                         (including flock chenille yam); loop wale-yarn                        — man-made staple fibres not carded or combed or
                                                                                                   otherwise processed for spinning,
                                                                                               — chemical materials or textile pulp, or
                                                                                               — paper-making materials
    Chapter 57           Carpets and other textile floor coverings:
                         — Of needleloom felt                                                  Manufacture from ('):
                                                                                               — 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 that their value does not exceea 40 % of
                                                                                                   the ex works price of the product
                         — Of other felt                                                       Manufacture from ('):
                                                                                               — natural fibres not carded or combed or otherwise
                                                                                                   processed for spinning, or
                                                                                               — chemical materials or textile pulp
                         — Other                                                               Manufacture from O :
                                                                                               — coir yarn,
                                                                                               — synthetic or artificial filament yarn,
                                                                                               — natural fibres, or
                                                                                               — man-made staple fibres not carded or combed or
                                                                                                   otherwise processed for spinning
(') For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6.
 ---pagebreak---  11. 4. 91                                      Official Journal of the European Communities                                            No C 95/101
                                                     (2)                                                                 (3)
                         Special woven fabrics; tufted textile fabrics; lace;
                         tapestries; trimmings, embroidery, except for
                         heading Nos 5805 and 5810; the rule for heading
                         No 5810 is set out below:
                         — Combined with rubber thread                                         Manufacture from single yarn (')
                         — Other                                                               Manufacture from ('):
                                                                                               — 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 a finishing operations
                                                                                               (such as scouring, bleaching, mercerizing, neat 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
                         Embroidery in the piece, in strips or in motifs                       Manufacture in which the value of all the materials
                                                                                               used does not exceed 50 % of the ex works price of
                                                                                               the product
                         Textile fabrics coated with gum or amylaceous                         Manufacture from yarn
                         substances, of a kind used for the outer covers of
                         books or the like; tracing cloth; prepared painting
                         canvas; buckram and sinular stiffened textile fabrics
                         of a kind used for hat foundations
                         Tyre cord fabric of high tenacity yarn of nylon or
                         other polyamides, polyesters or viscose rayon:
                         — Containing not more than 90 % by weight of                          Manufacture from yarn
                              textile materials
                         — Other                                                               Manufacture from chemical materials or textile pulp
                         Textile fabrics impregnated, coated, covered or
                         laminated with plastics, other than those of heading                  Manufacture from yarn
                         No 5902
                         Linoleum, whether or not cut to shape; floor
                         coverings consisting of a coating or covering                         Manufacture from yarn (')
                         applied on a textile packing, whether or not cut to
                         shape
                         Textile wall coverings:
                         — Impregnated, coated, covered or laminated with                      Manufacture from yarn
                              rubber, plastics or other materials
(') For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6.
 ---pagebreak--- No C 95/102                                   Official Journal of the European Communities                                               11. 4. 91
                                                   (2)                                                               (3)
                        — Other                                                            Manufacture from ( l ):
                                                                                           — coir yarn,
                                                                                           — 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 finishing operation
                                                                                           (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
                         Rubberized textile fabrics, other than those of
                        heading No 5902:
                        — Knitted or crocheted fabrics                                     Manufacture from ('):
                                                                                           — 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 synthetic filament yarn,                  Manufacture from chemical materials
                             containing more than 90 % by weight of textile
                             materials
                        — Other                                                            Manufacture from yarn
                         Textile fabrics otherwise impregnated, coated or                  Manufacture from yarn
                         covered; painted canvas being theatrical scenery,
                         studio backcloths or the like
                         Incandescent gas mantles, impregnated                              Manufacture from tubular knitted gas mantle fabric
                         Textile articles of a kind suitable for industrial use:
                         — Polishing discs or rings other than of felt of                   Manufacture from yarn or waste fabrics or rags of
                             heading No 5911                                                heading No 6310
                         — Other                                                            Manufacture from ('):
                                                                                           — coir yarn,
                                                                                           — natural fibres,
                                                                                           — man-made staple fibres not carded or combed or
                                                                                                otherwise processed for spinning, or
                                                                                            — chemical materials or textile pulp
                         Knitted or crocheted fabrics                                       Manufacture from (*):
                                                                                            — natural fibres,
                                                                                            — man-made staple fibres not carded or combed or
                                                                                                otherwise processed for spinning, or
                                                                                            — chemical materials or textile pulp
(') For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6.
 ---pagebreak---   11. 4. 91                                      Official Journal of the European Communities                                            No C 95/103
          (1)                                         (2)                                                                (3)
     Chapter 61           Articles of apparel and clothing accessories, knitted
                          or crocheted:
                          — Obtained by sewing together or otherwise                            Manufacture from yarn (')
                               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 (2):
                                                                                                — natural fibres,
                                                                                                — man-made staple fibres not carded or combed or
                                                                                                    otherwise processed for spinning, or
                                                                                                — chemical materials or textile pulp
 ex Chapter 62            Articles of apparel and clothing accessories, not                     Manufacture from yarn (')
                          knitted or crocheted, except for heading Nos ex
                          6202, ex 6204, ex 6206, ex 6209, ex 6210, 6213,
                          6214, ex 6216 and ex 6217 for which the rules are
                          set out below
ex   6202                 Women's, girls' and babies' clothing and 'other                       Manufacture from yarn (')
ex   6204                 made-up clothing accessories', embroidered                            or
ex  6206
ex   6209                                                                                       Manufacture from unembroidered fabric provided the
     and                                                                                        value of the unembroidered fabric used does not
ex 6217                                                                                         exceed 40 % of the ex works price of the product (')
ex 6210                   Fire-resistant equipment of fabric covered with foil                  Manufacture from yarn (l)
ex 6216                   of aluminized polyester                                               or
     and
ex 6217                                                                                         Manufacture from uncoated fabric provided the value
                                                                                                of the uncoated fabric used does not exceed 40 % of
                                                                                                the ex works price of the product (')
     6213                 Handkerchiefs, shawls, scarves, mufflers, mantillas,
     and                  veils and the like:
     6214
                         — Embroidered                                                          Manufacture from unbleached single yarn (') (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 (')
                         — Other                                                                Manufacture from unbleached single yarn (') (2)
    6301                  Blankets, travelling rugs, bed linen etc.; curtains,
     to                   etc.; other furnishing articles:
    6304
                         — Of felt, of non-wovens                                               Manufacture from (2):
                                                                                               — natural fibres, or
                                                                                               — chemical materials or textile pulp
                         — Other:
                              — Embroidered                                                    Manufacture from unbleached single yarn (2)
                                                                                               or
                                                                                               Manufacture from unembroidered fabric (other than
                                                                                               knitted or crocheted) provided the value of the unem-
                                                                                               broidered fabric used does not exceed 40 % of the ex
                                                                                               works price of the product
                              — Other                                                          Manufacture from unbleached single yarn (2)
(') See Introductory Note 7 for the treatment of textile trimmings and accessories.
(') For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6.
 ---pagebreak---  No C 95/104                                    Official Journal of the European Communities                                                11.4.91
         (1)                                         (2)                                                              (3)
    6305                 Sacks and bags, of a kind used for the packing of                  Manufacture from ('):
                         goods
                                                                                            — natural fibres,
                                                                                            — man-made staple fibres not carded or combed or
                                                                                                 otherwise processed for spinning, or
                                                                                            — chemical materials or textile pulp
    6306                 Tarpaulins, sails for boats, sailboards or landcraft,
                         awnings, sunblinds, tents and camping goods:
                         — Of non-wovens                                                    Manufacture from ('):
                                                                                            — natural fibres, or
                                                                                            —• chemical materials or textile pulp
                         — Other                                                            Manufacture from unbleached single yarn
ex 6307                  Other made-up articles, including dress patterns                   Manufacture in which the value of all the materials
                                                                                            used does not exceed 40 % of the ex works price of
                                                                                            the product
    6308                 Sets consisting of woven fabric and yarn, whether                  Each item in the set must satisfy the rule which would
                         or not with accessories, for making up into rugs,                  apply to it if it were not included in the set. However,
                         tapestries, embroidered table cloths or serviettes or              non-originating articles may be incorporated provided
                         similar textile articles, put up in packings for retail            their total value does not exceed 15 % of the ex works
                         sale                                                               price of the set
    6401                 Footwear                                                           Manufacture from materials of any heading except for
    to                                                                                      assemblies of uppers affixed to inner soles or to other
    6405                                                                                    sole components of heading No 6406
    6503                 Felt hats and other felt headgear, made from the                   Manufacture from yarn or textile fibres (2)
                         hat bodies, hoods or plateaux of heading N o 6501,
                         whether or not lined or trimmed
    6505                 Hats and other headgear, knitted or crocheted, or                  Manufacture from yarn or textile fibres (2)
                         made up from lace, felt or other textile fabric, in
                         the piece (but not in strips), whether or not lined or
                         trimmed; hair-nets of any material, whether or not
                         lined or trimmed
    6601                 Umbrellas       and     sun       umbrellas     (including         Manufacture in which the value of all the materials
                         walking-stick umbrellas, garden umbrellas and                      used does not exceed 50 % of the ex works price of
                         similar umbrellas)                                                 the product
ex 6803                  Articles of slate or of agglomerated slate                         Manufacture from worked slate
ex 6812                  Articles of asbestos or of mixtures with a basis of                Manufacture from fabricated asbestos fibres or from
                         asbestos Or with a basis of asbestos and magnesium                 mixtures with a basis of asbestos or with a basis of
                         carbonate                                                          asbestos and magnesium carbonate
ex 6814                  Articles of mica; including agglomerated or recon-                 Manufacture from worked mica (including agglom-
                         stituted mica on a support of paper, paperboard or                 erated or reconstituted mica)
                         other materials
    7006                 Glass of heading No 7003, 7004 or 7005, bent,                      Manufacture from materials of heading N o 7001
                         edge-worked, engraved, drilled, enamelled or
                         otherwise worked, but not framed or fitted with
                         other materials
(') For special conditions relating to products made of a mixture of textile materials, see Introductory Note 6.
(J) See Introductory Note 7 for the treatment of textile trimmings and accessories.
 ---pagebreak--- 11. 4. 91                       Official Journal of the European Communities                                 N o C 95/105
                                     (2)                                                     (3)
           Safety glass, consisting of toughened (tempered) or      Manufacture from materials of heading No 7001
           laminated glass
           Multiple-walled insulating units of glass                Manufacture from materials of heading No 7001
           Glass mirrors, whether or not framed, including          Manufacture from materials of heading No 7001
           rear-view mirrors
           Carboys, bottles, flasks, jars, pots, phials, ampoules   Manufacture in which all the materials used are
           and other containers, of glass, of a kind used for       classified within a heading other than that of the
           the conveyance or packing of goods; preserving jars      product
           of glass; stoppers, lids and other closures, of glass    or
                                                                    Cutting of glassware, provided the value of the uncut
                                                                    glassware does not exceed 50 % of the ex works price
                                                                    of the product
          Glassware of a kind used for table, kitchen, toilet,      Manufacture in which all the materials used are
          office, indoor decoration or similar purposes (other      classified within a heading other than that of the
          than that of heading No 7010 or 7018)                     product
                                                                    and
                                                                    Cutting of glassware, provided the value of the uncut
                                                                    glassware does not exceed 50 % of the ex works price
                                                                    of the product
                                                                    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
          Articles (other than yarn) of glass fibres               Manufacture from:
                                                                   — uncoloured slivers, rovings, yarn or chopped
                                                                        strands, or
                                                                   — glass wool
          Worked precious or semi-precious stones (natural,        Manufacture from unworked precious or semi-precious
          synthetic or reconstructed)                              stones
          Precious metals:
          — Unwrought                                              Manufacture from materials not classified in heading
                                                                   No 7106, 7108 or 7110
                                                                   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 powder form (AH)               Manufacture from unwrought precious metals
          Metals clad with precious metals, semi-manu-             Manufacture from metals clad with precious metals,
          factured                                                 unwrought
          Articles of natural or cultured pearls, precious or      Manufacture in which the value of all the materials
          semi-precious stones (natural, synthetic or recon-       used does not exceed 50 % of the ex works price of
          structed)                                                the product
          Imitation jewellery                                      Manufacture in which all the materials used are
                                                                   classified within a heading other than that of the
                                                                   product
                                                                   or
                                                                   Manufacture 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
 ---pagebreak--- No C 95/106                       Official Journal of the European Communities                                  11. 4. 91
       (1)                             (2)                                                  (3)
   7207     Semi-finished products of iron or non-alloy steel        Manufacture from materials of heading No 7201,
                                                                     7202, 7203, 7204 or 7205
   7208     Flat-rolled products, bars and rods, angles, shapes      Manufacture from ingots or other primary forms of
   to       and sections of iron or non-alloy steel                  heading No 7206
   7216
   7217     Wire of iron or non-alloy steel                          Manufacture from semi-finished materials of heading
                                                                     No 7207
ex 7218     Semi-finished products, flat-rolled products, bars       Manufacture from ingots or other primary forms of
   7219     and rods, angles, shapes and sections of stainless       heading No 7218
   to       steel
   7222
   7223     Wire of stainless steel                                  Manufacture from semi-finished materials of heading
                                                                     No 7218
ex 7224     Semi-finished products, flat-rolled products, bars       Manufacture from ingots or other primary forms of
   7225     and rods, in irregularly wound coils, of other alloy     heading No 7224
   to       steel
   7117
   7228     Other bars and rods of other alloy steel; angles,        Manufacture from ingots or other primary forms of
            shapes and sections, of other alloy steel; hollow .      heading N o 7206, 7218 or 7224
            drill bars and rods, of alloy or non-alloy steel
   7229     Wire of other alloy steel                                Manufacture from semi-finished materials of heading
                                                                     No 7224
ex 7301     Sheet piling                                             Manufacture from materials of heading N o 7203
   7302     Railway or tramway track construction material of        Manufacture from materials of heading No 7206
            iron or steel, the following: rails, check-rails and
            rack rails, switch blades, crossing frogs, point rods
            and other crossing pieces, sleepers (cross-ties), fish-
            plates, chairs, chair wedges, sole plates (base
            plates), rail clips, bedplates, ties and other material
            specialized for jointing or fixing rails
   7304     Tubes, pipes and hollow profiles, of iron (other         Manufacture from materials of heading No 7206,
   7305     than cast iron) or steel                                 7207, 7218 or 7224
   and
   7306
   7308     Structures (excluding prefabricated buildings of         Manufacture in which all the materials used are
            heading N o 9406) and parts of structures (for           classified within a heading other than that of the
            example, bridges and bridge-sections, lock-gates,        product. However, welded angles, shapes and sections
            towers, lattice masts, roofs, roofing frameworks,        of heading N o 7301 may not r>e used
            doors and windows and their frames and thresholds
            for doors, shutters, balustrades, pillars and
            columns), of iron or steel; plates, rods, angles,
            shapes, sections, tubes and the like, prepared for
            use in structures, of iron or steel
ex 7315     Skid-chains                                              Manufacture in which the value of all the materials of
                                                                     heading N o 7315 used does not exceed 50 % of the ex
                                                                     works price of the product
ex 7322     Radiators     for  central   heating,  not  electrically Manufacture in which the value of all the materials of
            heated                                                   heading No 7322 used does not exceed 5 % of the ex
                                                                     works price of the product
 ---pagebreak--- 11. 4. 91                         Official Journal of the European Communities                              No C 95/107
        (1)                            (2)                                                   (3)
ex Chapter 74 Copper and articles thereof, except for heading      Manufacture in which:
              Nos 7401 to 7405; the rule for heading No ex 7403
              is set out below                                     — 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
ex 7403       Copper alloys, unwrought                             Manufacture from refined copper, unwrought, or
                                                                   waste and scrap
ex Chapter 75 Nickel and articles thereof, except for heading Nos  Manufacture in which:
              7501 to 7503                                         — 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
ex Chapter 76 Aluminium and articles thereof, except for heading   Manufacture in which
              Nos 7601 and 7602; the rule for heading No ex        — all the materials used are classified within a heading
              7601 is set out below                                    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
ex 7601       — Aluminium alloys                                   Manufacture from aluminium, not alloyed, or waste
                                                                   and scrap
              — 'Super-pure' aluminium (ISO No Al 99.99)           Manufacture from aluminium, not alloyed (ISO No Al
                                                                   99,8)
ex Chapter 78 Lead and articles thereof, except for heading Nos    Manufacture in which:
              7801 and 7802; the rule for heading No 7801 is set   — all the materials used are classified within a heading
              out below                                                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
   7801       Unwrought lead:
              — Refined lead                                       Manufacture from 'bullion' or 'work' lead
              — Other                                              Manufacture in which all the materials used are
                                                                   classified in a heading other than that of the product.
                                                                   However, waste and scrap of heading No 7802 may
                                                                   not be used
ex Chapter 79 Zinc and articles thereof, except for heading Nos    Manufacture in which:
              7901 and 7902; the rule for heading No 7901 is set
              out below                                            — all the materials used are classified in 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
   7901       Unwrought zinc                                       Manufacture in which all the materials used are
                                                                   classified in a heading other than that of the product.
                                                                   However, waste and scrap of heading No 7902 may
                                                                   not be used
 ---pagebreak--- No C 95/108                     Official Journal of the European Communities                                     11. 4. 91
                                      (2)                                                    (3)
            Tin and articles thereof, except for heading Nos       Manufacture in which:
            8001, 8002 and 8007; the rule for heading No 8001
            is set out below                                           all the materials used are classified in 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
            Unwrought tin                                          Manufacture in which all the materials used are
                                                                   classified in a heading other than that of the product.
                                                                   However, waste and scrap of heading No 8002 may
                                                                   not be used
            Other base metals, wrought; articles thereof           Manufacture in which the value of all the materials
                                                                   classified in the same heading as the products used
                                                                   does not exceed 50 % of the ex works price of the
                                                                   product
            Tools of two or more of the heading Nos 8202 to        Manufacture in which all the materials used are
            8205, put up in sets for retail sale                   classified in 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
            Interchangeable tools for hand tools, whether or       Manufacture in which:
            not power-operated, or for machine-tools (for
            example, for pressing, stamping, punching, tapping,    — all the materials used are classified in a heading
            threading, drilling, boring, broaching, milling,           other than that of the product, and
            turning or screwdriving), including dies for drawing
            or extruding metal, and rock-drilling or earth-        — the value of all the materials used does not exceed
            boring tools                                               40 % of the ex works price of the product
            Knives and cutting blades, for machines or for         Manufacture in which:
            mechanical appliances
                                                                   — all the materials used are classified in 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
            Knives with cutting blades, serrated or not            Manufacture in which all the materials used are
            (including pruning knives), other than knives of       classified in a heading other than that of the product.
            heading No 8208                                        However, knife blades and handles of base metal may
                                                                   be used
            Other articles of cutlery (for example, hair clippers, Manufacture in which all the materials used are
            butcher's or kitchen cleavers, choppers and mincing    classified in a heading other than that of the product.
            knives, paper knives); manicure or pedicure sets       However, handles of base metal may be used
            and instruments (including nail files)
            Spoons, forks, ladles, skimmers, cake-servers, fish-   Manufacture in which all the materials used are
            knives, butter-knives, sugar tongs and similar         classified in a heading other than that of the product.
            kitchen or tableware                                   However, handles of base metal may be used
 ---pagebreak--- 11. 4. 91                      Official Journal of the European Communities                               No C 95/109
                                    (2)                                                     (3)
          Statuettes and other ornaments, of base metal           Manufacture in which all the materials used are
                                                                 classified in 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
          Nuclear reactors, boilers, machinery and mechan-       Manufacture:
          ical appliances; parts thereof; except for those
          falling within the following headings or parts of      — in which the value of all the materials used does not
          headings for which the rules are set out below:            exceed 40 % of the ex works price of the product,
                                                                     and
          8402, 8403, ex 8404, 8406 to 8409, 8411, 8412, ex
                                                                 — where, within the above limit, the materials
          8413, ex 8414, 8415, 8418, ex 8419, 8420, 8423,
                                                                     classified within the same heading as the product
          8425 to 8430, ex 8431, 8439, 8441, 8444 to 8447,           are only used up to a value of 10 % of the ex
          ex 8448, 8452, 8456 to 8466, 8469 to 8472, 8480,           works price of the product
          8482, 8484 and 8485
          Central heating boilers, other than those of heading   Manufacture in which all the materials used are
          N o 8402, ana auxiliary plant for central heating      classified in a heading other than heading No 8403 or
          boilers                                                8404. However, materials which are classified in
                                                                 heading No 8403 or 8404 may be used provided their
                                                                 value, taken together, does not exceed 10 % of the ex
                                                                 works price of the product
          Steam turbines and other vapour turbines               Manufacture in which the value of all the materials
                                                                 used does not exceed 40 °/o of the ex works price of
                                                                 the product
          Spark-ignition reciprocating     or  rotary   internal Manufacture in which the value of all the materials
          combustion piston engines                              used does not exceed 40 % of the ex works price of
                                                                 the product
          Compression-ignition internal combustion piston        Manufacture in which the value of all the materials
          engines (diesel or semi-diesel engines)                used does not exceed 40 % of the ex works price of
                                                                 the product
          Parts suitable for use solely or principally with the  Manufacture in which the value of all the materials
          engines of heading No 8407 or 8408                     used does not exceed 40 % of the ex works price of
                                                                 the product
          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
          Air conditioning machines, comprising a motor-         Manufacture in which the value of all the materials
          driven fan and elements for changing the               used does not exceed 40 % of the ex works price of
          temperature     and humidity, including those          the product
          machines in which the humidity cannot be
          seperately regulated
          Refrigerators, freezers and other refrigerating or     Manufacture:
          freezing equipment, electric or other heat pumps
          other than air conditioning machines of heading        — in which the value of all the materials used does not
          No 8415                                                    exceed 40 % of the ex works price of the 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 10 % 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
 ---pagebreak--- No C 95/110                      Official Journal of the European Communities                                   11. 4. 91
       (1)                            (2)                                                    (3)
ex 8419     Machines for the wood, paper pulp and paper           Manufacture:
            board industries
                                                                  — in which the value of all the materials used does not
                                                                      exceed 40 % of the ex works price of the 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 machines, other than     Manufacture:
            for metals or glass, and cylinders therefor           — in which the value of all the materials used does not
                                                                      exceed 40 % of the ex works price of the 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
   8425     Lifting, handling, loading or unloading machinery     Manufacture:
   to                                                             — in which the value of all the materials used does not
   8428                                                               exceed 40 % of the ex works price of the product,
                                                                      and
                                                                  — where, within the above limit, the materials
                                                                      classified in heading No 8431 are only used up to a
                                                                     value of 10 % of the ex works price of the product
   8429     Self-propelled bulldozers, angledozers, graders,
            levellers, scrapers, mechanical shovels, excavators,
            shovel loaders, temping 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:
                                                                  — in which the value of all the materials used does not
                                                                      exceed 40 % of the ex works price of the product,
                                                                      and
                                                                  — where, within the above limit, the value of 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, levelling, scraping, exca-     Manufacture:
            vating, temping, compacting, extracting or boring
            machinery, for earth, minerals or ores; pile-drivers  — in which the value of all the materials used does not
            and pile-extractors; snow-ploughs and snow-               exceed 40 % of the ex works price of the product,
            blowers                                                   and
                                                                  — where, within the above limit, the value of the
                                                                      materials classified within heading No 8431 are
                                                                      only used up to 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
 ---pagebreak--- 11. 4. 91                       Official J o u r n a l of the E u r o p e a n Communities                                N o C 95/111
                                     (2)                                                                 (3)
           Machinery for making pulp of fibrous cellulosic                     Manufacture:
           material or for making or finishing paper or
           paperboard                                                          — in which the value of all the materials used does not
                                                                                   exceed 40 % of the ex works price of the 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
           Other machinery for making up paper pulp, paper                     Manufacture:
           or paperboard, including cutting machines of all
           kinds                                                               — in which the value of all the, materials used does not
                                                                                   exceed 40 % of the ex works price of the 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
          Machines of these headings for use in the textile                    Manufacture in which the value of all the materials
          industry                                                             used does not exceed 40 % of the ex works price of
                                                                               the product
          Auxiliary machinery for use with machines for                        Manufacture in which the value of all the materials
          heading Nos 8444 and 8445                                            used does not exceed 40 % of the ex works price of
                                                                              the product
          Sewing machines, other than book sewing machines
          of heading No 8440; furniture, bases and covers
          specially designed for sewing machines; sewing
          machine needles:
          — Sewing machines (lock stitch only) with heads                     Manufacture:
              of a weight not exceeding 16 kg without motor
              or 17 kg with motor                                             — in which the value of all the materials used does not
                                                                                  exceed 40 % of the ex works price of the product,
                                                                              — where the value of all of 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
          Machine-tools and machines and their parts and                      Manufacture in which the value of all the materials
          accessories of heading Nos 8456 to 8466                             used does not exceed 40 °/o of the ex works price of
                                                                              the product
          Office machines (for example, typewriters, calcu-                   Manufacture in which the value of all the materials
          lating    machines,      automatic        data-processing           used does not exceed 40 % of the ex works price of
          machines, duplicating machines, stapling machines)                  the product
          Moulding boxes for metal foundry; mould bases;                      Manufacture in which the value of all the materials
          moulding patterns; moulds for metal (other than                     used does not exceed 50 % of the ex works price of
          ingot moulds), metal carbides, glass, mineral                       the product
          materials, rubber or plastics
          Gaskets and similar joints of metal sheeting                        Manufacture in which the value of all the materials
          combined with other material or of two or more                      used does not exceed 40 % of the ex works price of
          layers of metal; sets or assortments of gaskets and                 the product
          similar joints, dissimilar in composition, put up in
          pouches, envelopes or similar packings
 ---pagebreak--- No C 95/112                         Official J o u r n a l of t h e E u r o p e a n Communities                                    11.4.91
        (i)                              (2)                                                                    (3)
   8485       Machinery      parts,   not    containing         electrical           Manufacture in which the value of all the materials
              connectors, insulators, coils, contacts or other elec-                 used does not exceed 40 % of the ex works price of
              trical features, not specified or included elsewhere                   the product
              in this chapter
ex Chapter 85 Electrical machinery and equipment and parts                           Manufacture:
              thereof; sound recorders and reproducers, tele-
              vision image and sound recorders and reproducers                       — in which the value of all the materials used does not
              and parts and accessories of such articles; except                         exceed 40 % of the ex works price of the product,
              for those falling within the following headings or                         and
              parts of headings for which the rules are set out
              below:                                                                — where, within the above limit, the materials
                                                                                         classified within the same heading as the product
              8501, 8502, ex 8522, 8523 to 8529, 8535 to 8537,                           are only used up to a value of 10 % of the ex
              8542, 8544 to 8548                                                         works price of the product
   8501       Electric motors and generators (excluding generat-                     Manufacture:
              ing sets)
                                                                                    — in which the value of all the materials used does not
                                                                                         exceed 40 % of the ex works price of the product,
                                                                                         and
                                                                                    — where ? within the above limit, the materials
                                                                                         classified within heading No 8503 are only used up
                                                                                         to a value of 10 % or the ex works price of the
                                                                                         product
   8502       Electric generating sets and rotary converters                        Manufacture:
                                                                                    — in which the value of all the materials used does not
                                                                                        exceed 40 % of the ex works price of the 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 5 % of the
                                                                                        ex works price or the product
ex 8522       Parts and accessories of cinematographic sound                        Manufacture in which the value of all the materials
              recorders or reproducers for film of 16 mm or                         used does not exceed 40 % of the ex works price of
                                                                                    the product
   8523       Prepared unrecorded media for sound recording or                      Manufacture in which the value of all the materials
              similar recording of other phenomena, other than                      used does not exceed 40 % of the ex works price of
              products of Chapter 37                                                the 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 the production of                          Manufacture in which the value of all the materials
                  records                                                           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 40 % of the ex works price of the product,
                                                                                        and
                                                                                    — where, within the above limit, the materials
                                                                                        classified within heading No 8523 are only used up
                                                                                        to a value of 10 % or the ex works price of the
                                                                                        product
 ---pagebreak--- 11.^1                        OfficialJoumalofthe European Communities                                                   ^oC^BM^
                                 (^                                                               ^
       Transmission apparatus for radiotelephone radios         Manufacture in which the value of all the materials
       tele^raph^      radiobroadcasting     or     televisions useddoes notexceed 4 0 ^ of the ex works price of
       whether or not incorporating reception apparatus         the product
       or sound recording or reproducing apparatus^ tele^
       visioncameras
       ^.adar apparatus^ radio navigational aid apparatus       Manufactured
       andradioremotecontrolapparatus
                                                                — in whi^h the value of all the materials used does not
                                                                    exceed 40 ^o of the ex works pri^e of the product,
                                                                    and
                                                                — where the value of all the nonori^inatin^ materials
                                                                    used does notexceed the valueof the originating
                                                                    materials used^ and
       deception   apparatus for radiotelephone radios          Manufactured
       tele^raphv  or radiobroadcasting whether or not
       comhined^   in the same housing with sound re^           — in which the value of all the materials used does not
                                                                    exceed 40^0 of the ex works price of the produ^t^
       cording or  reproducing apparatus o r a ^ l o c k
                                                                    and
                                                                — where the value of all the non^ori^inatin^ materials
                                                                    useddoes n o t e x ^ e e d t h e v a l u e o f theori^inatin^
                                                                    materials used
       Televisionreceivers ^includin^videomonitorsand           Manufactured
       videoprojectors^whetherornotcomhined^inthe
       same housing with radiobroadcast receivers or            — in which the value of all the materials used does not
                                                                    exceed 4 0 ^ o o f the ex works price of the product,
       sound or video recording or reproducing apparatus
                                                                    and
                                                                — where the value of all the nonDori^inatin^ materials
                                                                    used d o e s n o t e x c e e d t h e v a l u e o f the originating
                                                                    materials used
       ^artssuitahle for use solely or principally with the     Manufactured
       apparatus of heading l ^ o s t ^ ^ to 8 ^                — in whi^h the value of all the materials used does not
                                                                   e x c e e d 4 0 ^ o o f the ex works price of the products
                                                                   and
                                                                — where the value of all the nonDori^inatin^ materials
                                                                   used does notexceed the valueof the originating
                                                                   materials used
       electrical apparatus for switching or protecting         Manufactured
      electrical circuits^or for making connections to or
      in electrical circuits                                    — in which the value of all the materials used does not
                                                                   exceed 4 0 ^ o f the ex works price of the products
                                                                   and
                                                                — where^ within the ahove limits the materials
                                                                   classified within heading ^ o ^ ^ are onhB used up
                                                                   to a value of tO^Bo of the ex works price of the
                                                                   product
      13oards^ panels ^includin^ numerical control panels^      Manufactured
      consoles^ desks^cahinets and other hases^ equipped
      with two or more apparatus of heading r ^ o ^ ^ or        — in which the value of all the materials used does not
      ^ ^ for electric control or the distribution of elec^        exceed 40 ^o of the ex works price of the produce
      tricirv^in^ludin^ those incorporating instruments or         and
      apparatus of Chapter ^          other than switching
      apparatus of heading l ^ o ^ t ^                          — where^ within the ahove limits the materials
                                                                   classified within heading ^ l o ^ ^ are onl^ used up
                                                                   to a v a l u e of tO^Bo of the ex works price of the
                                                                   product
      tOiodes^ transistors and similar semiconductor            Manufactured
      devices^ex^ept wafers not ^et cut into chips
                                                                — in which the value of all the materials used does not
                                                                   exceed 40 ^o of the ex works price of the products
                                                                   and
                                                                — where^ within the ahove limits the materials
                                                                   ^lassifiedwithinthesameheadin^as the products
                                                                   are onlv used up to a value of t O ^ i of the ex
                                                                   works price of the product
 ---pagebreak---  N o C 95/114                       Official Journal of the European Communities                                     11. 4. 91
         (i)                              (2)                                                     (3)
     8542      Electronic integrated circuits and microassemblies      Manufacture:
                                                                       — in which the value of all the materials used does not
                                                                           exceed 40 % of the ex works price of the 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 enamelled or anodized) wire,       Manufacture in which the value of all the materials
               cable (including co-axial cable) and other insulated    used does not exceed 40 °/o of the ex works price of
               electric conductors, whether or not fitted with         the product
               connectors; optical fibre cables, made up of
               individually sheathed fibres, whether or not
               assembled with electric conductors or fitted with
               connectors
    8545       Carbon electrodes, carbon brushes, lamp carbons,        Manufacture in which the value of all the materials
              battery carbons and other articles of graphite or        used does not exceed 40 % of the ex works price of
              other carbon, with or without metal, of a kind used     the product
              for electrical purposes
    8546      Electrical insulators of any material                    Manufacture in which the value of all the materials
                                                                      used does not exceed 40 % of the ex works price of
                                                                      the product
    8547      Insulating fittings for electrical machines, appliances Manufacture in which the value of all the materials
              or equipment, being fittings wholly of insulating       used does not exceed 40 % of the ex works price of
              material apart from any minor components of metal       the product
              (for example, threaded sockets) incorporated
              during moulding solely for purposes of assembly
              other than insulators or heading No 8546; electrical
              conduit tubing and joints therefor, of base metal
              lined with insulating material
    8548      Electrical parts of machinery or apparatus, not         Manufacture in which the value of all the materials
              specified or included elsewhere in this chapter         used does not exceed 40 % of the ex works price of
                                                                      the product
    8601      Railway or tramway locomotives, rolling-stock and       Manufacture in which the value of all the materials
    to        parts thereof                                           used does not exceed 40 % of the ex works price of
    8607                                                              the product
    8608      Railway or tramway track fixtures and fittings;         Manufacture:
              mechanical         (including       electromechanical)
              signalling, safety or traffic control equipment for     — in which the value of all the materials used does not
              railways, tramways, roads, inland waterways,                exceed 40 % of the ex works price of the product,
              parking facilities, port installations or airfields;        and
              parts of the foregoing                                  — where, within the above limit, the materials
                                                                          classified within the same heading as the product
                                                                          are only used up to a value of 10 % of the ex
                                                                          works price of the product
    8609      Containers (including containers for die transport      Manufacture in which the value of all the materials
              of fluids) specially designed and equipped for          used does not exceed 40 % of the ex works price of
              carriage by one or more modes of transport              the product
ex Chapter 87 Vehicles other than railway or tramway                  Manufacture in which the value of all the materials
              rolling-stock and parts and accessories thereof;        used does not exceed 40 % of the ex works price of
              except for those falling within the following           the product
              headings or parts of headings for which the rules
              are set out below:
              8709 to 8711, ex 8712, 8715 and 8716
    8709      Works trucks, self-propelled, not fitted with lifting   Manufacture:
              or handling equipment, of the type used in
              factories, warehouses, dock areas or airports for       — in which the value of all the materials used does not
              short distance transport of goods; tractors of the          exceed 40 % of the ex works price of the product,
              type used on railway station platforms; parts of the        and
              foregoing vehicles
                                                                      — where, within the above limit, the materials
                                                                          classified within the same heading as the product
                                                                          are only used up to a value of 10 % of the ex
                                                                          works price of the product
 ---pagebreak--- 11.4.91                     Official Journal of the European Communities                              No C 95/115
                                 (2)                                                    (3)
        Tanks and other armoured fighting vehicles,          Manufacture:
        motorized, whether or not fitted with weapons, and
        parts of such vehicles                               — in which the value of all the materials used does not
                                                                  exceed 40 % of the ex works price of the 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 10 % of the ex
                                                                 works price of the product
        Motorcycles (including mopeds) and cycles fitted     Manufacture:
        with an auxiliary motor, with or without side-cars;
        side-cars                                            — in which 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
        Bicycles without ball bearings                       Manufacture from materials not classified within
                                                             heading No 8714
        Baby carriages and parts thereof                     Manufacture:
                                                             — in which the value of all the materials used does not
                                                                 exceed 40 °/o of the ex works price of the 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 10 % of the ex
                                                                 works price of the product
        Trailers and semi-trailers; other vehicles, not      Manufacture:
        mechanically propelled; parts thereof
                                                             — in which the value of all the materials used does not
                                                                 exceed 40 °/o of the ex works price of the 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 10 % of the ex
                                                                 works price of the product
        Parts of goods of heading No 8801 or 8802            Manufacture in which the value of all the materials of
                                                             heading No 8803 used does not exceed 5 % of the ex
                                                             works price of the product
        Parachutes (including dirigible parachutes) and
        rotochutes; parts thereof and accessories thereto:
        — Rotochutes                                         Manufacture from materials of any heading including
                                                             other materials of heading No 8804
        — Other                                              Manufacture in which the value of all the materials of
                                                             heading No 8804 used does not exceed 10 % of the ex
                                                             works price of the product
        Aircraft launching gear; deck-arrestor or similar    Manufacture in which the value of all the materials of
        gear; ground flying trainers; parts of the foregoing heading No 8805 used does not exceed 5 % of the ex
        articles                                             works price of the product
        Ships, boats and floating structures                 Manufacture in which all the materials used are
                                                             classified within a heading other than that of the
                                                             product. However, hulls of neading No 8906 may not
                                                             be used
        Optical, photographic, cinematographic, measuring,   Manufacture:
        checking, precision, medical or surgical instruments
        and apparatus; parts and accessories thereof; except — in which the value of all the materials used does not
        for those falling within the following headings or       exceed 40 °/p of the ex works price of the product,
        parts of headings for which the rules are set out        and
        below:
                                                             — where, within the above limit, the materials
        9001, 9002, 9004, ex 9006, ex 9014, 9015 to ex           classified within the same heading as the product
        9018 and 9024 to 9033                                    are only used up to a value of 10 % of the ex
                                                                 works price of the product
 ---pagebreak--- N o C 95/116                       Official Journal of the European Communities                                    11.4.91
                                        (2)                                                   (3)
              Optical fibres and optical fibre bundles; optical      Manufacture in which the value of all the materials
              fibre cables other than those of heading No 8544;      used does not exceed 40 % of the ex works price of
              sheets and plates of polarizing material; lenses       the product
              (including contact lenses), prisms, mirrors and
              other optical elements, of any material, unmounted,
             other than such elements of glass not optically
             worked
             Lenses, prisms, mirrors and other optical elements,     Manufacture in which the value of all the materials
             of any material, mounted, being parts of or fittings    used does not exceed 40 % of the ex works price of
             for instruments or apparatus, other than such el-       the product
             ements of glass not optically worked
             Spectacles, goggles      and the like, corrective,      Manufacture in which the value of all the materials
             protective or other                                     used does not exceed 40 % of the ex works price of
                                                                     the product
             Photographic (other than             cinematographic)   Manufacture:
             cameras, other than the following:                     — in which the value of all the materials used does not
             — Cameras of a kind used for preparing printing            exceed 45 % of the ex-works price of the product,
                  plates or cylinders                                   and
             — Cameras of a kind used for recording                 — where, within the above limit, the materials
                  documents on microfilm, microfiche or other           classified in the same heading as the.product are
                  microforms                                            only used up to a value of 10 % of the ex-works
                                                                        price of the product
             — Cameras specially designed for underwater use,
                  for aerial survey or for medical or surgical
                  examination of internal organs; comparison
                  cameras for forensic or criminological purposes
             — Instant print cameras
             — Other cameras:
                  — With a through-the-lens vicwfinder (single
                      lens reflex (SLR)), for roll film or a width
                      not exceeding 35 mm
                  — Other, for roll film of a width less than
                      35 mm
                  — Other, for roll film of a width of 35 mm
                                                                    Manufacture in which the value of all the materials
             Other navigational instruments and appliances          used does not exceed 40 % of the ex works price of
                                                                    the product
             Surveying (including photogrammetrical surveying),     Manufacture in which the value of all the materials
             hydrographic, oceanographic, hydrological, meteo-      used does not exceed 40 % of the ex works price of
             rological or geophysical instruments and appliances,   the product
             excluding compasses; rangefinders
             Balances of a sensitivity of 5 eg or better, with or   Manufacture in which the value of all the materials
             without weights                                        used does not exceed 40 % of the ex works price of
                                                                    the product
             Drawing, marking-out or mathematical calculating       Manufacture in which the value of all the materials
             instruments (for example, drafting machines, panto-    used does not exceed 40 % of the ex works price of
             graphs, protractors, drawing sets, slide rules, disc   the product
             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
             Dentists' chairs incorporating dental appliances or    Manufacture from materials of any heading, including
             dentists' spittoons                                    other materials of heading No 9018
             Machines and appliances for testing the hardness,      Manufacture in which the value of all the materials
             strength, compressibility, elasticity or other mech-   used does not exceed 40 % of the ex works price of
             anical properties of materials (for example, metals,   the product
             wood, textiles, paper, plastics)
 ---pagebreak--- 11. 4. 91                      Official Journal of the European Communities                              No C 95/117
                                    (2)                                                    (3)
          Hydrometers and similar floating instruments, ther-    Manufacture in which the value of all the materials
          mometers, pyrometers, barometers, hygrometers          used does not exceed 40 % of the ex works price of
          and psychrometers, recording or not, and any           the product
          combination of these instruments
          Instruments and apparatus for measuring or             Manufacture in which the value of all the materials
          checking the flow, level, pressure or other variables  used does not exceed 40 % of the ex works price of
          of liquids or gases (for example, flow meters, level   the product
          gauges, manometers, heat meters), excluding
          instruments and apparatus of heading No 9014,
          9015, 9028 or 9032
          Instruments and apparatus for physical or chemical     Manufacture in which the value of all the materials
          analysis (for example, polarimeters, refractometers,   used does not exceed 40 % of the ex works price of
          spectrometers, gas or smoke analysis apparatus);       the product
          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
          Gas, liquid or electricity supply or production        Manufacture in which the value of all the materials
          meters, including calibrating meters therefor:        used does not exceed 40 % of the ex works price of
                                                                the product
          Revolution     counters,      production   counters,   Manufacture in which the value of all the materials
          taximeters, mileometers, pedometers and the like;     used does not exceed 40 °/o of the ex works price of
          speed indicators and tachometers, other than those    the product
          of heading No 9014 or 9015; stroboscopes
          Oscilloscopes, spectrum analysers and other           Manufacture in which the value of all the materials
          instruments and apparatus for measuring or            used does not exceed 40 % of the ex works price of
          checking electrical quantities, excluding meters of   the product
          heading No 9028; instruments and apparatus for
          measuring or detecting alpha, beta, gamma, X-ray,
          cosmic or other ionizing radiations
          Measuring or checking instruments, appliances and     Manufacture in which the value of all the materials
          machines, not specified or included elsewhere in      used does not exceed 40 % of the ex works price of
          this chapter; profile projectors                      the product
          Automatic regulating or controlling instruments       Manufacture in which the value of all the materials
          and apparatus                                         used does not exceed 40 % of the ex works price of
                                                                the product
          Parts and accessories (not specified or included      Manufacture in which the value of all the materials
          elsewhere in this chapter) for machines, appliances,  used does not exceed 40 % of the ex works price of
          instruments or apparatus of Chapter 90                the product
          Clocks and watches and parts thereof; except for      Manufacture in which the value of all the materials
          those falling under the following headings for        used does not exceed 40 % of the ex works price of
          which the rules are set out below:                    the product
          9101 to 9105 and 9110 to 9113
          Watches and clocks                                    Manufacture in which the value of all the materials
                                                                used does not exceed 45 % of the ex-works price of
                                                                the product
          Complete watch or clock movements, unassembled        Manufacture:
          or partly assembled (movement sets); incomplete
          watch or clock movements, assembled; rough            — in which the value of all the materials used does not
          watch or clock movements                                  exceed 40 % of the ex works price of the product,
                                                                    and
                                                                — where, within the above 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
 ---pagebreak---  No C 95/118                       Official Journal of the European Communities                                    11. 4. 91
       (1)                               (2)                                                   (3)
   9111       Watch cases and parts thereof                          Manufacture:
                                                                     — in which the value of all the materials used does not
                                                                         exceed 40 % of the ex works price of the 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 10 % of the ex
                                                                        works price of the product
   9112       Clock cases and cases of a similar type for other      Manufacture:
              goods of this chapter, and parts thereof
                                                                     — in which the value of all the materials used does not
                                                                        exceed 40 % of the ex works price of the 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 10 % of the ex
                                                                        works price of the product
   9113       Watch straps, watch bands and watch bracelets,
              and parts thereof:
              — Of base metal, whether or not plated, or clad       Manufacture in which the value of all the materials
                  with 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
   Chapter 92 Musical instruments; parts and accessories of such    Manufacture in which the value of all the materials
              articles                                              used does not exceed 40 % of the ex works price of
                                                                    the product
   Chapter 93 Arms and ammunitions; parts and accessories           Manufacture in which the value of all the materials
              thereof                                               used does not exceed 50 % of the ex works price of
                                                                    the product
ex 9401       Base metal furniture, incorporating unstuffed         Manufacture in which all the materials used are
   and        cotton cloth of a weight of 300 g/m1 or less          classified within a heading other than that of the
ex 9403                                                             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 within a heading other than
                                                                        heading No 9401 or 9403
   9405       Lamps and lighting fittings including searchlights    Manufacture in which the value of all the materials
              and spotlights and parts thereof, not elsewhere       used does not exceed 50 % of the ex works price of
              specified or included; illuminated signs, illuminated the product
              name-plates and the like, having a permanently
              fixed light source, and parts thereof not elsewhere
              specified or included
   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
 ---pagebreak--- 11.4.91                       Official Journal of the European Communities                                N o C 95/119
                                   (2)                                                      (3)
         Other toys; reduced-size ('scale') models and           Manufacture in which:
         similar recreational models, working or not;
         puzzles of all kinds                                   — all the materials used are classified within a heading
                                                                    other than that of the product, and
                                                                — provided the value of all the materials used does
                                                                    not exceed 50 % of the ex works price of the
                                                                    product
         Finished golf club heads                                Manufacture from roughly shaped blocks
         Fishing rods, fish-hooks and other line fishing
         tackle; fish landing nets, butterfly nets and similar
         nets; decoy 'birds' (other than those of heading No
         9208 or 9707) and similar hunting or shooting
         requisites:
         — Mounted fish hooks with artificial            bait;  Manufacture in which all the materials used are
             mounted fishing lines including casts              classified in a heading other than that of the product.
                                                                However, materials classified in the same heading may
                                                                be used provided their value does not exceed 25 % of
                                                                the ex works price of the product
        Articles of animal, vegetable or mineral carving        Manufacture from 'worked' carving materials of the
         materials                                              same heading
         Brooms and brushes, (except for besoms and the         Manufacture in which the value of all the materials
         like and brushes made from marten or squirrel          used does not exceed 50 % of the ex works price of
         hair), hand-operated mechanical floor sweepers,        the product
        not motorized, paint pads and rollers, squeegees
        and mops
        Travel sets for personal toilet, sewing or shoe or      Each item in the set must 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
        Buttons, press-fasteners, snap-fasteners and press-    Manufacture in which:
        studs, button moulds and other parts of these
        articles; button blanks                                — 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
        Ball point pens; felt tipped and other porous-tipped
        pens and markers; fountain pens, stylograph pens
        and other pens; duplicating stylos; propelling or
        sliding pencils; pen-holders, pencil-holders and
        similar holders; parts (including caps and clips) of
        the foregoing articles, other than those of heading
        No 9609:
        — Fountain pens, stylograph pens and other pens        Manufacture in which all the materials used are
             with nibs                                         classified in a heading other than that of the product.
                                                               However, nibs or nib points may be used and the other
                                                               materials classified within the same heading may also
                                                               be used provided their value does not exceed 10 % of
                                                               the ex works price of the product
 ---pagebreak--- No C 95/120                     Official Journal of the European Communities                                    11. 4. 91
       (1)                          (2)                                                   (3)
   9612     Typewriter or similar ribbons, inked or otherwise    Manufacture in which
            prepared for giving impressions, whether or not on   — all the materials used are classified within a heading
            spools or in cartridges; ink-pads, whether or not      other than that of the product, and
            inked, with or without boxes
                                                                 — the value of all the materials used does not exceed
                                                                   50 % of the ex works price of the product
ex 9614     Smoking pipes or pipe bowls                          Manufacture from roughly shaped blocks
 ---pagebreak--- 11.4.91                          Official Journal of the European Communities                                N o C 95/121
                                                Annex 3 to Annex II
        The term 'ACP States' in this Annex refers to the following States which are signatories to the fourth
        ACP-EEC Convention signed in Lom6 on 15 December 1989. This shall be without prejudice to any
        amendments to the list.
        Angola                                                Liberia
        Antigua and Barbuda                                   Madagascar
        Bahamas                                               Malawi
        Barbados                                              Mali
        Belize                                                Mauritania
        Benin                                                 Mauritius
        Botswana                                              Mozambique
        Burkina Faso                                          Niger
        Burundi                                               Nigeria
        Cameroon                                              Papua New Guinea
        Cape Verde                                            Rwanda
        Central African Republic                              Saint Kitts and Nevis
        Chad                                                  Saint Lucia
        Comoros                                               Saint Vincent and the Grenadines
        Congo                                                 Sao Tomfe and Principe
        Cote d'lvoire                                         Senegal
        Djibouti                                              Seychelles
        Dominica                                              Sierra Leone
        Dominican Republic                                    Solomon Islands
        Equatorial Guinea                                     Somalia
        Ethiopia                                              Sudan
        Fiji                                                  Suriname
        Gabon                                                 Swaziland
        Gambia                                                Tanzania
        Ghana                                                 Togo
        Grenada                                               Tonga
        Guinea                                                Trinidad and Tobago
        Guinea-Bissau                                         Tuvalu
        Guyana                                                Uganda
        Haiti                                                 Vanuatu
        Jamaica                                               Western Samoa
        Kenya                                                 Zaire
        Kiribati                                              Zambia
        Lesotho                                               Zimbabwe
 ---pagebreak--- No C 95/122                            Official Journal of the European Communities                                     11. 4. 91
                                                        Annex 4 to Annex II
                                           FORM FOR MOVEMENT CERTIFICATES
           1. Movement certificates EUR. 1 shall be made out on the form of which a specimen appears in this
              Annex. This form shall be printed in one or more of the official languages of the Community.
              Certificates shall be made out in one of these languages and in accordance with the provisions of the
              domestic law of the exporting State or OCT; if they are handwritten, they shall be completed in ink and
              in capital letters.
          2. Each certificate shall measure 210 x 297 mm, a tolerance of up to plus 8 mm or minus 5 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 65 g/m2. It shall have a printed green guilloche pattern background making
              any falsification by mechanical or chemical means apparent to the eye.
          3. The exporting States and the competent authorities of the exporting OCT 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.
          4. Forms of the kind given in Annex 5 to Annex II to Decision 86/283/EEC may continue to be used until
              stocks are exhausted or until 31 December 1992 at the latest.
 ---pagebreak--- 11. 4. 91                             Official Journal of the European Communities                                 No C 95/127
                                                     Annex 5 to Annex II
                                                        FORM EUR. 2
          1. Form EUR. 2, a specimen of which appears in this Annex, shall be completed by the exporter. It shall be
             made out in one of the official languages of the Community and in accordance with the provisions of
             the domestic law of the exporting OCT. If it is handwritten it must be completed in ink in capital
             letters.
          2. Form EUR. 2 shall consist of a single sheet measuring 210 x 148 mm. The paper used shall be white,
             sized for writing, not containing mechanical pulp and weighing not less than 65 g/m2.
          3. The States and the responsible authorities of the exporting OCT may reserve the right to print the
             forms themselves or may have them printed by printers they have approved. In the latter case each form
             must include a reference to such approval. In addition, each form shall bear the distinctive sign
             attributed to the approved printer and a serial number, either printed or not, by which it can be iden-
             tified.
          4. Forms of the kind given in Annex 6 to Annex II to Decision 86/283/EEC may continue to be used until
             stocks are exhausted or until 31 December 1992 at the latest.
 ---pagebreak--- 11. 4. 91                                   Official Journal of the European Communities                                            No C 95/131
                                                            Annex 6 A to Annex II
                      DECLARATION FOR PRODUCTS HAVING PREFERENTIAL O R I G I N STATUS
               I, the undersigned, declare that the goods listed on this invoice                                              (')
               were produced in                                                                               .               (2)
               and satisfy the rules of origin governing preferential trade between the ACP States and the
               European Community.
               I undertake to make available to the customs authorities, if required, evidence in support of this
               declaration.
                                                                    o                                                        (4)
                                                                                                                              o
           Note:
          The text inside the box, suitably completed in conformity with the footnotes below, constitutes a suppliers'
          declaration. The footnotes do not have to be reproduced.
          (') — If only some of the goods listed on the invoice are concerned they should be clearly indicated or marked and this
                  marking entered on the declaration as follows: '                  listed on this invoice and marked           were
                  {•reduced              '.
                   f a document other than the invoice or an annex to the invoice is used (see Article 3), the name of the document
                  concerned shall be mentioned instead of the word 'invoke'.
          (*) The Community, Member State, ACP State or OCT. Where an ACP State or OCT is given, a reference must also be
              made to the Community customs office holding any EUR. l(s) or EUR. 2(s) concerned, giving the No of the
              certificate(s) or form(s) concerned and, if possible, the relevant customs entry No involved.
          (') Place and date.
           4
          ( ) Name and function in company.
          (') Signature.
 ---pagebreak--- No C 95/132                                  Official Journal of the European Communities                                                  11.4.91
                                                             Annex 6 B to Annex II
                  DECLARATION FOR PRODUCTS NOT HAVING PREFERENTIAL ORIGIN STATUS
               I, the undersigned, declare that the goods listed on this invoice                                           (') were
               produced in                                       (2) and incorporate the following components or materials
               which do not have Community origin for preferential trade:
                                                        o                                      o                                      o
                                                                                                                                      (*)
               I undertake to make available to the customs authorities, if required, evidence in support of this
               declaration.
                                                        O                                                                             (')
                                                                                                                                      C)
           Note:
          The text inside the box, suitably completed in conformity with the footnotes below, constitutes a suppliers'
          declaration. The footnotes do not have to be reproduced.
          (') —- If only some of the goods listed on the invoice are concerned they should be clearly indicated or marked and this
                   marking entered on the declaration as follows:'           listed on this invoice and marked           were produced
              — If a document other than the invoice or an annex to the invoice is used (see Article 3), the name of the document
                   concerned shall be mentioned instead of the word 'invoice'.
          (') The Community, Member State, ACP State or OCT.
          (') Description is to be given in all cases. The description must be adequate and should be sufficiently detailed to allow the
              tariff classification or the goods concerned to be determined.
          (4) Customs values to be given only if required.
          (s) Country of origin to be given only if required. The origin to be given must be a preferential origin, all other origins to
              be given as 'third country'.
          (') 'and have undergone the following processing in (the Community) (Member State) (ACP State) (OCT)                    ,' to be
              added with a description of the processing carried out if this information is required.
          (') Place and date.
          (') Name and function in company.
          (') Signature.
 ---pagebreak--- 11.4.91                             Official Journal of the European Communities                                    No C 95/133
                                                    Annex 7 to Annex II
                                             INFORMATION CERTIFICATE
        1. The form of information certificate given in this Annex shall be used and be printed in one or more of
           the official languages of the Community and in accordance with the provisions of the domestic law of
           the exporting State. Information certificates shall be completed in one of those languages; if they are
           handwritten, they shall be completed in ink in capital letters. The shall bear a serial number, whether or
           not printed, by which they can be identified.
        2. The information certificate shall measure 210 x 297 mm, a tolerance of up to plus 8 mm or minus 5 mm
           in the length may be allowed. The paper must be white, sized for writing, not containing mechanical
           pulp and weighing not less than 60 g/m2.
        3. The national administrations may reserve the right to print the forms themselves or may have them
           printed by printers approved by them. In the latter case, each form must include a reference to such
           approval. The forms shall bear the name and address of the printer or a mark by which the printer can
           be identified.
 ---pagebreak--- 11. 4. 91                     Official Journal of the European Communities                                   N o C 95/137
                                             Annex 8 to Annex II
          LIST OF PRODUCTS REFERRED TO IN ARTICLE J3 WHICH ARE TEMPORARILY
                           EXCLUDED FROM THE SCOPE OF THIS ANNEX
             HS heading No                              Description of product
          ex 2707          Oils in which the weight of the aromatic constituents exceeds that of the
                           non-aromatic constituents, being oils similar to mineral oils obtained by distil-
                           lation of high temperature coal tar, of which more than 65 % by volume distills at
                           a temperature of up to 250 °C (including mixtures of petroleum spirit and
                           benzole), for use as power of heating fuels
             2709 to 2715  Mineral oils and products of their distillation; bituminous substances; mineral
                           waxes
          ex 2901          Acylic hydrocarbon for use as power or heating fuels
          ex 2902          Cyclanes and cyclenes (other than azuienes), benzene, toluene, xylenes, for use as
                           power or heating fuels
          ex 3403          Lubricating preparations containing petroleum' oils or oils obtained from bitumi-
                           nous minerals, provided they represent less than 70 % by weight
          ex 3404          Artificial waxes and prepared waxes with a basis of paraffin, petroleum waxes,
                           waxes obtained from bituminous minerals, slack wax or scale wax
          ex 3811          Prepared additives for lubricating oil, containing petroleum oils or oils obtained
                           from bituminous minerals
 ---pagebreak--- No C 95/140                            Official Journal of the European Communities                                     11. 4. 91
                                                              NOTES
           1. If the boxes in the form are not sufficient to contain all relevant information, additional pages may be
              attached to the form. In this case, the mention 'see Annex' shall be entered in the box concerned.
          2. If possible, samples or other illustrative material (pictures, designs, catalogues, etc.) of the final
              product and of the materials should accompany the form.
          3. A form shall be completed for each product covered by the request.
              Boxes 3, 4, 5, 7: 'third country' meaning any country which is not an ACP or Community State or
                                  OCT.
              Box 12:             If third country materials have been worked or processed in the Community or in
                                  the OCT without obtaining origin, before being further processed in the ACP State
                                  requesting the derogation, indicate the working or processing carried out in the
                                  Community or OCT.
              Box 13:             The dates to be indicated are the initial and final one of the period in which EUR. 1
                                  certificates may be issued under the derogation.
              Box 18:             Indicate either the percentage of added value in respect of the ex-works price of
                                  the product or the monetary amount of added value for unit of product.
              Box 19:             If alternative sources of materials exist, indicate here what they are and, if
                                  possible, the reasons of cost or other why they are not used.
              Box 20:             Indicate possible further investments or suppliers differentiation which make the
                                  derogation necessary for only a limited period of time.
 ---pagebreak--- 11. 4. 91                          Official Journal of the European Communities                          No C 95/141
                                                     ANNEX III
                                               On safeguard measures
          The provisions of Article 109 of the Decision shall be implemented as follows:
                                                       Article 1
           1. If a Member State asks the Commission for application of safeguard measures in
           accordance with Article 109 of the Decision and the Commission decides not to apply them,
          the Commission shall inform the Council, the Member States an4 the relevant authorities of
          the OCT accordingly within three working days.
          Any Member State may refer the Commission's decision to the Council within 10 working days
          of its notification.
          The Council, acting by a qualified majority, may adopt a different decision within 21 working
          days.
          2. Where the Commission, at the request of a Member State or on its own initiative, decides
          that the safeguard measures provided for in Article 109 of the Decision should be applied, it
          shall consult a committee made up of representatives of the Member States and chaired by a
          Commission representative.
          3. Following consultation with the committee referred to in paragraph 2, the Commission
          may take appropriate measures to implement Article 109 of the Decision.
          4. The Council, the Member States and the relevant authorities of the OCT shall be notified
          immediately of the decision referred to in paragraph 3.
          It shall be immediately applicable.
          5. Any Member State may refer the Commission's decision referred to in paragraph 3 to the
          Council within 10 working days of receiving notification of the decision.
          6. Should the Commission fail to adopt a decision within 21 working days, any Member
          State that has brought the matter before the Commission in accordance with paragraph 2 may
          refer it to the Council.
          7. In the cases referred to in paragraphs 5 and 6, the Council, acting by a qualified majority,
          may adopt a different decision within 21 working days.
                                                      Article 2
           1. The Commission may take, or authorize a Member State to take, immediate safeguard
          measures.
          2. If the Commission receives a request from a Member State, it shall take a decision
          thereon within three working days of receipt of the request.
          It shall notify the Council, the Member States and the relevant authorities of the OCT of its
          decision.
 ---pagebreak--- No C 95/142                        Official Journal of the European Communities                        11. 4. 91
          3. Any Member State may refer the Commission's decision to the Council in accordance
          with the procedure set out in Article 1 (5).
          The procedure provided for in Article 1 (7) shall be applicable.
                                                       Article 3
          This Annex shall not preclude application of the Regulations establishing a common organ-
           ization of agricultural markets, or Community or national administrative provisions derived
          therefrom or the specific rules adopted under Article 235 of the Treaty for processed agri-
          cultural products, but shall be complementary to them.
 ---pagebreak--- 11491                                   OfficialJoumalofthe European Communities                      l^oC9^B14^
      Until the entry into force ofacommon organization of the market in spirits, products of Cl^
      codes 2208 40 10, 2208 4090, 2208 9011 and 2208 9019 originating in the OCTshall he
      imported exempt from duty in accordance ^ith the provisions belo^v.
                                                         Blr^2
      ^      Byderogationfrom Article 101 ^ of thisDecision, theCouncil, acting by aqualified
             majority onaproposal from the Commission, shall each year, until^lDecemberl995,fi^
             the quantities ^hich may be imported exempt from customs duties.
             These quantities shall be established as follo^s^
             — until^l December 199^, on the basis of the largest annual quantities imported from the
                    OCT into the Community in the last threeyears for^hich statistics are available,
                    increased, in the period unni^l December 1992, by an annual growth rate of 2^ ^o.
                   The Council, acting unanimously onaproposal from the Commission, may each year
                    increase or reduce the growth rate laid do^rn above in the light of Community
                    consumptionandproductionanddevelopmentsintradeflo^s^ithintheCommunity
                    and between the Community,theOCTand the ACR states.
                   The volumeof the annual quantity shall in nocasebe less than 1^000 hi of pure
                    alcohol
            — Tor 1994 and 199^, the volume of the total quota shall in each case be equal to that of
                    the previous year increased byl^40 hi of pure alcohol.
      ^      Ror the arrangements applicable from 199^, the Council, acting byaqualified majority on
             aproposal from the Commission, shall establish, beforelRebruary 199^, on the basis ofa
             report that the Commission ^ill send to the Council before 1 Rebruary 1994, the
             arrangements for the projected abolition of the Community tariff quota, taking into
             account the situation and prospects on the Community rum market and of the exports of
             the OCT andACR states
      The products referred toinArticlelshall be placed under Community surveillance according
      to detailed arrangements to be laid do^rn by the Council ^rhen it adopts the measures provided
      forinArticle2^.
      At the request of the relevant authorities of the OCTand pursuant to the provisions of Part ^,
      T i t l e l , C h a p t e r 2 o f theDecision,theCommunityshallassisttheOCTinpromotingand
      expanding their salesof rum ontraditionaland nonDtraditionalmarketsof theCommunity.
 ---pagebreak--- No C 95/144                          Official Journal of the European Communities                             11.4.91
                                                        ANNEX V
                               On movements of hazardous waste and radioactive waste
          Keenly aware of the specific risks attaching to radioactive waste, the Member States and the
          relevant authorities of the OCT will refrain from any practice of discharging such waste which
          would encroach upon the sovereignty of States or threaten the environment or public health in
          other countries. They attach the greatest importance to developing international cooperation to
          protect the environment and public health against such risks. They accordingly affirm their
          determination to play an active part in the work being done in the IAEA to produce an inter-
          nationally approved code of good practice.
          Until such time as a more precise definition is formulated in that framework, the term 'radio-
          active waste' will be taken to mean any material for which no further use is envisaged and
          which contains or is contaminated by radionuclides of which the levels of radioactivity or the
          concentrations exceed the limits which the Community has set itself for protecting its own
          population in Article 4 (a) and (b) of Directive 80/836/Euratom, as last amended by Directive
          84/467/Euratom. As regards levels of radioactivity, these limits range from 5 x 10} becquerel
          for nuclides of very high radiotoxicity to 5 x 10* becquerel for those of low radiotoxicity. As
          regards concentrations, these limits are 100 Bq.g-1 and 500 Bq.g-1 for solid natural radioactive
          substances.
                                                       ANNEX VI
                                          Commission declaration on Article 14
           (to be added to the Council minutes)
          In its role of administrator of development finance cooperation, notably the EDF, the
          Commission undertakes to carry out an environmental impact study complying with the
          minimum requirements set out in the second paragraph of Article 14 for all large-scale projects
          and those posing a serious risk for the environment.
           It will also seek the opinion of the authorities responsible for the environment in the country or
          territory concerned, which shall be responsible for sounding out public opinion.