CELEX: 21994A1231(34)
Language: en
Date: 1993-10-04 00:00:00
Title: Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part - Protocol 1 on textile and clothing products - Protocol 2 on ECSC products - Protocol 3 on trade between the Czech Republic and the Community in processed agricultural products not covered by Annex II to the EEC Treaty - Protocol 4 concerning the definition of the concept of originating products and methods of administrative cooperation - Protocol 5 on specific provisions relating to trade between the Czech Republic, of the one part, and Spain and Portugal, of the other part - Protocol 6 on mutual assistance in customs matters - Protocol 7 on concessions with annual limits - Protocol 8 on the succession of the Czech Republic in respect of the exchanges of letters between the European Economic Community (Community) and the Czech and Slovak Federal Republic concerning transit and land transport infrastructure - Final Act - Joint Declarations

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21994A1231(34)

Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part - Protocol 1 on textile and clothing products - Protocol 2 on ECSC products - Protocol 3 on trade between the Czech Republic and the Community in processed agricultural products not covered by Annex II to the EEC Treaty - Protocol 4 concerning the definition of the concept of originating products and methods of administrative cooperation - Protocol 5 on specific provisions relating to trade between the Czech Republic, of the one part, and Spain and Portugal, of the other part - Protocol 6 on mutual assistance in customs matters - Protocol 7 on concessions with annual limits - Protocol 8 on the succession of the Czech Republic in respect of the exchanges of letters between the European Economic Community (Community) and the Czech and Slovak Federal Republic concerning transit and land transport infrastructure - Final Act - Joint Declarations  

Official Journal L 360 , 31/12/1994 P. 0002 - 0210 Finnish special edition: Chapter 11 Volume 36 P. 0004  Swedish special edition: Chapter 11 Volume 36 P. 0004 

EUROPE AGREEMENT establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other partTHE KINGDOM OF BELGIUM,THE KINGDOM OF DENMARK,THE FEDERAL REPUBLIC OF GERMANY,THE HELLENIC REPUBLIC,THE KINGDOM OF SPAIN,THE FRENCH REPUBLIC,IRELAND,THE ITALIAN REPUBLIC,THE GRAND DUCHY OF LUXEMBOURG,THE KINGDOM OF THE NETHERLANDS,THE PORTUGUESE REPUBLIC,THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,Contracting Parties to the Treaty establishing the European Economic Community, the Treaty establishing the European Coal and Steel Community and the Treaty establishing the European Atomic Energy Community,hereinafter referred to as 'Member States`, andTHE EUROPEAN ECONOMIC COMMUNITY, THE EUROPEAN COAL AND STEEL COMMUNITY, THE EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as 'the Community`,of the one part, andTHE CZECH REPUBLICof the other part,CONSIDERING the importance of the links existing between the Community, its Member States and the Czech Republic and the common values that they share;RECOGNIZING that the Community and the Czech Republic wish to strengthen these links and to establish close and lasting relations, based on reciprocity, which would allow the Czech Republic to take part in the process of European integration, thus strengthening and widening the relations established in the past notably by the Agreement on Trade and Commercial and Economic Cooperation, signed between the Community and the Czech and Slovak Federal Republic on 7 May 1990, and by the Interim Agreement between the Community and the Czech and Slovak Federal Republic which entered into force on 1 March 1992;RECOGNIZING that the dissolution of the Czech and Slovak Federal Republic as of 1 January 1993 prior to the entry into force of the Europe Agreement signed between the Community and the Czech and Slovak Federal Republic on 16 December 1991 has made it necessary to conclude separate Europe Agreements with each of the Slovak Republic and the Czech Republic;CONSIDERING the opportunities for a relationship of a new quality offered by the emergence of a new democracy in the Czech Republic;CONSIDERING the commitment of the Community and its Member States and of the Czech Republic to strengthening the political and economic freedoms which constitute the very basis of the association;RECOGNIZING the establishment in the Czech Republic of a new political order which respects the rule of law and human rights, including the rights of persons belonging to minorities, and operates a multi-party system with free and democratic elections;ACKNOWLEDGING the readiness of the Community to contribute to the strengthening of this new democratic order as well as to support the creation in the Czech Republic of a new economic order founded upon the principles of a free market economy;CONSIDERING the firm commitment of the Community and its Member States and of the Czech Republic to the full implementation of all principles and provisions contained in particular in the Final Act of the Conference on Security and Cooperation in Europe (CSCE), the concluding documents of Vienna and Madrid and the Charter of Paris for a new Europe;CONSCIOUS of the importance of this Europe Agreement, hereinafter referred to as the 'Agreement`, to establishing in Europe a system of stability based on cooperation, with the Community as one of the cornerstones;BELIEVING that a link should be made between full implementation of association on the one hand, and the actual accomplishment of the Czech Republic's political, economic, and legal reforms on the other hand, as well as the introduction of the factors necessary for cooperation and the rapprochement between the parties' systems, notably in the light of the conclusions on the CSCE Bonn Conference;DESIROUS of establishing regular political dialogue on bilateral and international issues of mutual interest;TAKING ACCOUNT of the Community's willingness to provide decisive support for the implementation of reform and to help the Czech Republic cope with the economic and social consequences of structural readjustment;TAKING ACCOUNT furthermore of the Community's willingness to set up instruments of cooperation and economic, technical and financial assistance on a global and multiannual basis;CONSIDERING the commitment of the Community and the Czech Republic to free trade, and in particular to compliance with the rights and obligations arising out of the General Agreement on Tariffs and Trade;BEARING IN MIND the economic and social disparities between the Community and the Czech Republic and thus recognizing that the objectives of this association should be reached through appropriate provisions of this Agreement;CONVINCED that this Agreement will create a new climate for their economic relations and in particular for the development of trade and investment, instruments which are indispensable for economic restructuring and technological modernization;DESIROUS of establishing cultural cooperation and developing exchanges of information;RECOGNIZING the fact that the Czech Republic's ultimate objective is to accede to the Community, and that this association, in the view of the Parties, will help the Czech Republic to achieve this objective,HAVE DECIDED to conclude this Agreement and to this end have designated as their plenipotentiaries,THE KINGDOM OF BELGIUM:Robert URBAIN,Secretary of State for Foreign Trade and European AffairsTHE KINGDOM OF DENMARK:Niels HELVEG PETERSEN,Minister for Foreign AffairsTHE FEDERAL REPUBLIC OF GERMANY:Klaus KINKEL,Minister for Foreign AffairsTHE HELLENIC REPUBLIC:Michel PAPAKONSTANTINOU,Minister for Foreign AffairsTHE KINGDOM OF SPAIN:Javier SOLANA,Minister for Foreign AffairsTHE FRENCH REPUBLIC:Alain JUPPÉ,Minister for Foreign AffairsIRELAND:Dick SPRING,Minister for Foreign AffairsTHE ITALIAN REPUBLIC:Paolo BARATTA,Secretary of State for Foreign TradeTHE GRAND DUCHY OF LUXEMBOURG:Jacques POOS,Minister for Foreign AffairsTHE KINGDOM OF THE NETHERLANDS:Peter KOOIJMANS,Minister for Foreign AffairsTHE PORTUGUESE REPUBLIC:José Manuel DURÃO BARROSO,Minister for Foreign AffairsTHE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND:David HEATHCOAT-AMORY,Minister of State for Foreign AffairsTHE EUROPEAN ECONOMIC COMMUNITY, THE EUROPEAN ATOMIC ENERGY COMMUNITY AND THE EUROPEAN COAL AND STEEL COMMUNITY:Willy CLAES,Minister for Foreign Affairs of the Kingdom of Belgium,President-in-Office of the Council of the European CommunitiesSir Leon BRITTAN,Vice-President of the Commission of the European CommunitiesHans van den BROEK,Member of the Commission of the European CommunitiesTHE CZECH REPUBLIC:Josef ZIELENIEC,Minister for Foreign AffairsWHO, having exchanged their full powers, found in good and due form,HAVE AGREED AS FOLLOWS:Article 1 1. An Association is hereby established between the Community and its Member States, on the one part, and the Czech Republic, on the other part.2. The aim of this Agreement is:- to provide an appropriate framework for the political dialogue, allowing the development of close political relations between the Parties,- to promote the expansion of trade and the harmonious economic relations between the Parties and so to foster the dynamic economic development and prosperity in the Czech Republic,- to provide a basis for the Community's financial and technical assistance to the Czech Republic,- to provide an appropriate framework for the Czech Republic's gradual integration into the Community. To this end, the Czech Republic shall work towards fulfilling the necessary conditions,- to promote cooperation in cultural matters.TITLE I POLITICAL DIALOGUE Article 2 A regular political dialogue is established between the Parties which they intend to develop and intensify as an effective means to accompany and consolidate the rapprochement between the Community and the Czech Republic, support the political and economic changes under way in that country and contribute to the establishment of lasting links of solidarity and new forms of cooperation. The political dialogue and cooperation, based on shared values and aspirations:- will facilitate the Czech Republic's full integration into the community of democratic nations and progressive rapprochement with the Community. The economic rapprochement provided for in this Agreement will lead to greater political convergence,- will lead to an increasing convergence of positions on international issues, and in particular on those issues likely to have substantial effects on one or the other Party,- will contribute to the rapprochement of the Parties' positions on security issues.Article 3 At ministerial level, political dialogue shall take place within the Association Council. This shall have general responsibility for all matters which the Parties might wish to put to it.Article 4 Other procedures and mechanisms for political dialogue shall be set up by the Parties, and in particular in the following forms:- meetings as appropriate of the President of the Czech Republic on the one hand, and the President of the European Council and the President of the Commission of the European Communities, on the other,- meetings at senior official level (political directors) between officials of the Slovak Republic, on the one hand, and the Presidency of the Council of the European Communities and the Commission, on the other,- taking full advantage of diplomatic channels,- including the Czech Republic in the group of countries receiving regular information on the issues dealt with by the European Political Cooperation as well as exchanging information with the view to achieving the objectives defined in Article 2,- any other means which would make a useful contribution to consolidating, developing and stepping up this dialogue.Article 5 Political dialogue at parliamentary level shall take place within the framework of the Parliamentary Association Committee.TITLE II GENERAL PRINCIPLES Article 6 Respect for the democratic principles and human rights established by the Helsinki Final Act and the Charter of Paris for a new Europe, as well as the principles of market economy, inspire the domestic and external policies of the Parties and constitute essential elements of the present association.Article 7 1. The Association includes a transition period of a maximum duration of 10 years divided into two successive stages, each in principle lasting five years. The first stage shall begin when this Agreement enters into force.2. The Association Council shall proceed regularly to examine the application of this Agreement and the accomplishment of the Czech Republic's economic reforms on the basis of the principles established in the preamble.3. During the course of the 12 months preceding the expiration of the first stage, the Association Council shall meet to decide the transition to the second stage as well as any possible changes to be brought about as regards measures concerning the content of the provisions governing the second stage. In doing this, it will take into account the results of the examination mentioned in paragraph 2.4. The two stages envisaged in paragraphs 1, 2 and 3 do not apply to Title III.TITLE III FREE MOVEMENT OF GOODS Article 8 1. The Community and the Czech Republic shall gradually establish a free trade area in a transitional period lasting a maximum of 10 years starting from the entry into force of this Agreement in accordance with the provisions of this Agreement and in conformity with those of the General Agreement on Tariffs and Trade (GATT).2. The combined nomenclature of goods shall be applied to the classification of goods in trade between the two Parties.3. For each product the basic duty to which the successive reductions set out in this Agreement are to be applied shall be the duty actually applied by the Czech and Slovak Federal Republic erga omnes on 29 February 1992.4. If, after entry into force of this Agreement, any tariff reduction is applied on an erga omnes basis, in particular reductions resulting from the tariff agreement concluded as a result of the GATT Uruguay Round, such reduced duties shall replace the basic duties referred to in paragraph 3 as from that date when such reductions are applied.5. The Community and the Czech Republic shall communicate to each other their respective basic duties.CHAPTER I Industrial products Article 9 1. The provisions of this Chapter shall apply to products originating in the Community and in the Czech Republic listed in Chapters 25 to 97 of the combined nomenclature with the exception of the products listed in Annex I.2. The provisions of Articles 10 to 14 included do not apply to products mentioned in Articles 16 and 17.Article 10 1. Customs duties on imports applicable in the Community to products originating in the Czech Republic other than those listed in Annexes II and III shall be abolished on the entry into force of this Agreement.2. Customs duties on imports applicable in the Community to products originating in the Czech Republic listed in Annex II shall be reduced, on the date of entry into force of this Agreement, by 20 % of the basic duty and one year thereafter by a further 20 % of the basic duty. Duties shall be totally abolished by the end of the second year after the entry into force of the Agreement.3. The products of Czech Republic origin listed in Annex III shall benefit from a suspension of customs duties on imports within the limits of annual Community tariff quotas or ceilings increasing progressively in accordance with the conditions defined in that Annex so as to arrive at a complete abolition of customs duties on imports of the products concerned at the end of the third year after the entry into force of the Agreement.At the same time, customs duties on imports applicable to import quantities in excess of the quotas or ceilings provided for above shall be progressively dismantled from the entry into force of this Agreement by annual reductions of 15 %. By the end of the third year, remaining duties shall be abolished.4. Quantitative restrictions and measures having an effect equivalent to quantitative restrictions on imports to the Community shall be abolished on the date of entry into force of this Agreement with regard to the products originating in the Slovak Republic.Article 11 1. Customs duties on imports applicable in the Czech Republic to products originating in the Community which are listed in Annex IV shall be abolished on the date of entry into force of this Agreement.2. Customs duties on imports applicable in the Czech Republic to products originating in the Community which are listed in Annex V shall be progressively reduced in accordance with the following timetable:- on the date of entry into force of this Agreement each duty shall be reduced to 40 % of the basic duty,- three years after the date of entry into force of this Agreement each duty shall be reduced to 40 % of the basic duty,- five years after the date of entry into force of this Agreement the remaining duties shall be eliminated.3. Customs duties on imports applicable in the Czech Republic to products originating in the Community which are listed in Annex VI shall be progressively reduced according to the following timetable:- three years after the date of entry into force of this Agreement each duty shall be reduced to 80 % of the basic duty,- five years after the date of entry into force of this Agreement each duty shall be reduced to 60 % of the basic duty,- seven years after the date of entry into force of this Agreement each duty shall be reduced to 40 % of the basic duty,- nine years after the date of entry into force of this Agreement the remaining duties shall be eliminated.4. Customs duties on imports applicable in the Czech Republic to products originating in the Community which are listed in Annex VII shall be progressively reduced in accordance with the following timetable:- on the date of entry into force of this Agreement each duty shall be reduced to 80 % of the basic duty,- three years after the date of entry into force of this Agreement each duty shall be reduced to 60 % of the basic duty,- five years after the date of entry into force of this Agreement each duty shall be reduced to 40 % of the basic duty,- seven years after the date of entry into force of this Agreement each duty shall be reduced to 20 % of the basic duty,- nine years after the date of entry into force of this Agreement the remaining duties shall be eliminated.5. Quantitative restrictions on imports into the Czech Republic of products originating in the Community shall be abolished upon entry into force of this Agreement, except for those listed in Annex VIII, which shall be progressively abolished by the end of the transitional period.6. Measures having an effect equivalent to quantitative restrictions on imports into the Czech Republic of products originating in the Community shall be abolished upon entry into force of this Agreement.Article 12 The provisions concerning the abolition of customs duties on imports shall also apply to customs duties of a fiscal nature.Article 13 The Community and the Czech Republic shall abolish upon entry into force of this Agreement in trade between themselves, any charges having an effect equivalent to customs duties on imports.Article 14 1. The Community and the Czech Republic shall progressively abolish between them at the latest by the end of the fifth year after entry into force of this Agreement any customs duties on exports and charges having equivalent effect.2. Quantitative restrictions on exports to the Czech Republic and any measures having equivalent effect shall be abolished by the Community on the entry into force of this Agreement.3. Quantitative restrictions on exports to the Community and any measures having equivalent effect shall be abolished by the Czech Republic upon entry into force of this Agreement, except for those restrictions listed in Annex IX which shall be abolished at the latest by the end of the fifth year after the entry into force of this Agreement.Article 15 Each Party declares its readiness to reduce its customs duties in trade with the other Party more rapidly than is provided for in Articles 10 and 11 if its general economic situation and the situation of the economic sector concerned so permit.The Association Council may make recommendations to this effect.Article 16 Protocol 1 lays down the arrangements applicable to the textile products referred to therein.Article 17 Protocol 2 lays down the arrangements applicable to products covered by the Treaty establishing the European Coal and Steel Community.Article 18 1. The provisions of this chapter do not preclude the retention by the Community of an agricultural component in the duties applicable to products listed in Annex X in respect of products originating in the Czech Republic.2. The provisions of this chapter do not preclude the introduction of an agricultural component by the Czech Republic in the duties applicable to the products listed in Annex X in respect of products originating in the Community.CHAPTER II Agriculture Article 19 1. The provisions of this Chapter shall apply to agricultural products originating in the Community and in the Czech Republic.2. 'Agricultural products` means the products listed in Chapters 1 to 24 of the combined nomenclature and the products listed in Annex I, but excluding fishery products as defined by Regulation (EEC) No 3687/91.Article 20 Protocol 3 lays down the trade arrangements for processed agricultural products which are listed in such Protocol.Article 21 1. The Community shall abolish at the date of entry into force of this Agreement the quantitative restrictions on imports of agricultural products originating in the Czech Republic maintained by virtue of Council Regulation (EEC) No 288/82 in the form existing on the date of signature hereof.2. The agricultural products originating in the Czech Republic listed in Annex XIa or XIb shall benefit, upon the date of entry into force of this Agreement, from the reduction of levies within the limit of Community quotas or from the reduction of customs duties and upon the conditions provided in the same Annex.3. Imports into the Czech Republic of agricultural products originating in the Community shall be free of quantitative restrictions.4. The Community and the Czech Republic shall grant each other the concessions referred to in Annexes XII, XIII and XIV, on a harmonious and reciprocal basis, in accordance with the conditions laid down therein.5. Taking account of the volume of trade in agricultural products between them, of their particular sensitivity, of the rules of the common agricultural policy of the Community, of the rules of the agricultural policy of the Czech Republic, and of the consequences of the multilateral trade negotiations under the General Agreement on Tariffs and Trade, the Community and the Czech Republic shall examine in the Association Council, product by product and on an orderly and reciprocal basis, the possibilities of granting each other further concessions.Article 22 Notwithstanding other provisions of this Agreement, and in particular Article 31, if, given the particular sensitivity of the agricultural markets, imports of products originating in one Party, which are the subject of concessions granted in Article 21, cause serious disturbance to the markets in the other Party, both Parties shall enter into consultations immediately to find an appropriate solution. Pending such solution, the Party concerned may take the measures it deems necessary.CHAPTER III Fisheries Article 23 The provisions of this chapter shall apply to fishery products originating in the Community and in the Czech Republic, which are covered by Regulation (EEC) No 3687/91 on the common organization of the market in the sector of fishery products.Article 24 The fishery products originating in the Czech Republic listed in Annex XV shall benefit upon the date of entry into force of this Agreement from the reduction of customs duties provided in that Annex. The provisions of Article 21 (5) shall apply mutatis mutandis to fishery products.CHAPTER IV Common provisions Article 25 The provisions of this chapter shall apply to trade in all products except where otherwise provided herein or in Protocols 1, 2 and 3.Article 26 1. No new customs duties on imports or exports or charges having equivalent effect shall be introduced, nor shall those already applied be increased, in trade between the Community and the Czech Republic from the date of entry into force of this Agreement.2. No new quantitative restriction on imports or exports or measure having equivalent effect shall be introduced, nor shall those existing be made more restrictive, in trade between the Community and the Czech Republic from the date of entry into force of this Agreement.3. Without prejudice to the concessions granted under Article 21, the provisions of paragraphs 1 and 2 of this Article shall not restrict in any way the pursuance of the respective agricultural policies of the Czech Republic and the Community or the taking of any measures under such policies.Article 27 1. The two Parties shall refrain from any measure or practice of an internal fiscal nature establishing, whether directly or indirectly, discrimination between the products of one Party and like products originating in the territory of the other Party.2. Products exported to the territory of one of the two Parties may not benefit from repayment of internal taxation in excess of the amount of direct or indirect taxation imposed on them.Article 28 1. This Agreement shall not preclude the maintenance or establishment of customs unions, free trade areas or arrangements for frontier trade except in so far as they alter the trade arrangements provided for in this Agreement.2. Consultations between the Parties shall take place within the Association Council concerning agreements establishing such customs unions or free trade areas and, where requested, on other major issues related to their respective trade policy with third countries. In particular in the event of a third country acceding to the Community, such consultations shall take place so as to ensure that account can be taken of the mutual interests of the Community and the Czech Republic stated in this Agreement.Article 29 Exceptional measures of limited duration which derogate from the provisions of Articles 11 and 26 (1) may be taken by the Czech Republic in the form of increased customs duties.These measures may only concern infant industries, or certain sectors undergoing restructuring or facing serious difficulties, particularly where these difficulties produce important social problems.Customs duties on imports applicable in the Czech Republic to products originating in the Community introduced by these measures may not exceed 25 % ad valorem and shall maintain an element of preference for products originating in the Community. The total value of imports of the products which are subject to these measures may not exceed 15 % of total imports from the Community of industrial products as defined in Chapter I, during the last year for which statistics are available.These measures shall be applied for a period not exceeding five years, unless a longer duration is authorized by the Association Council. They shall cease to apply at the latest at the expiration of the transitional period.No such measures can be introduced in respect of a product if more than three years have elapsed since the elimination of all duties and quantitative restrictions or charges or measures having an equivalent effect concerning that product.The Czech Republic shall inform the Association Council of any exceptional measures it intends to take and, at the request of the Community, consultations shall be held in the Association Council on such measures and the sectors to which they apply before they are applied. When taking such measures the Czech Republic shall provide the Association Council with a schedule for the elimination of the customs duties introduced under this Article. This schedule shall provide for a phasing out of these duties starting at the latest two years after their introduction at equal annual rates. The Association Council may decide on a different schedule.Article 30 If one of the Parties finds that dumping is taking place in trade with the other Party within the meaning of Article VI of the General Agreement on Tariffs and Trade, it may take appropriate measures against this practice in accordance with the Agreement relating to the application of Article VI of the General Agreement on Tariffs and Trade, with related internal legislation and with the conditions and procedures laid down in Article 34.Article 31 Where any product is being imported in such increased quantities and under such conditions as to cause or threaten to cause:- serious injury to domestic producers of like or directly competitive products in the territory of one of the Contracting Parties, or- serious disturbances in any sector of the economy or difficulties which could bring about serious deterioration in the economic situation of a region.The Community or the Czech Republic, whichever is concerned, may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 34.Article 32 Where compliance with the provisions of Articles 14 and 26 leads to(i) re-export towards a third country against which the exporting Party maintains, for the product concerned, quantitative export restrictions, export duties or measures having equivalent effect;or(ii) a serious shortage, or threat thereof, of a product essential to the exporting Party,and where the situations abovementioned give rise, or are likely to give rise, to major difficulties for the exporting Party, that Party may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 34. The measures shall be non-discriminatory and be eliminated when conditions no longer justify their maintenance.Article 33 The Member States and the Czech Republic shall progressively adjust any State monopolies of a commercial character so as to ensure that, by the end of the fifth year following the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States and of the Czech Republic. The Association Council will be informed about the measures adopted to implement this objective.Article 34 1. In the event of the Community or the Czech Republic subjecting imports of products liable to give rise to the difficulties referred to in Article 31 to an administrative procedure having as its purpose the rapid provision of information on the trend of trade flows, it shall inform the other Party.2. In the cases specified in Articles 30, 31 and 32, before taking the measures provided for therein or, in cases to which paragraph 3 (d) applies, as soon as possible, the Community or the Czech Republic, as the case may be, shall supply the Association Council with all relevant information, with a view to seeking a solution acceptable to the two Parties.In the selection of measures, priority must be given to those which least disturb the functioning of this Agreement.The safeguard measures shall be notified immediately to the Association Council and shall be the subject of periodic consultations within that body, particularly with a view to establishing a timetable for their abolition as soon as circumstances permit.3. For the implementation of paragraph 2, the following provisions shall apply:(a) as regards Article 31, the difficulties arising from the situation referred to in that Article shall be referred for examination to the Association Council, which may take any decision needed to put an end to such difficulties.If the Association Council or the exporting Party has not taken a decision putting an end to the difficulties or no other satisfactory solution has been reached within 30 days of the matter being referred, the importing Party may adopt the appropriate measures to remedy the problem. These measures must not exceed the scope of what is necessary to remedy the difficulties which have arisen;(b) as regards Article 30, the Association Council shall be informed of the dumping case as soon as the authorities of the importing Party have initiated an investigation. When no end has been put to the dumping within the meaning of Article VI of the GATT or no other satisfactory solution has been reached within 30 days of the matter being referred to the Association Council, the importing Party may adopt the appropriate measures;(c) as regards Article 32, the difficulties arising from the situations referred to in that Article shall be referred for examination to the Association Council.The Association Council may take any decision needed to put an end to the difficulties. If it has not taken such a decision within 30 days of the matter being referred to it, the exporting Party may apply appropriate measures on the exportation of the product concerned;(d) where exceptional circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Community or the Czech Republic whichever is concerned may, in the situations specified in Articles 30, 31 and 32, apply forthwith the precautionary and provisional measures strictly necessary to deal with the situation, and the Association Council will be informed immediately.Article 35 Protocol 4 lays down rules of origin for the application of tariff preferences provided for in this Agreement.Article 36 The Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of exhaustible natural resources; the protection of national treasures of artistic, historic or archaeological value or the protection of intellectual, industrial and commercial property or rules relating to gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.Article 37 Protocol 5 lays down the specific provisions to apply to trade between the Czech Republic, of the one part, and Spain and Portugal, of the other part.TITLE IV MOVEMENT OF WORKERS, ESTABLISHMENT, SUPPLY OF SERVICES CHAPTER I Movement of workers Article 38 1. Subject to the conditions and modalities applicable in each Member State:- treatment accorded to workers of Czech Republic nationality, legally employed in the territory of a Member State shall be free from any discrimination based on nationality, as regards working conditions, remuneration or dismissal, as compared to its own nationals,- the legally resident spouse and children of a worker legally employed in the territory of a Member State, with the exception of seasonal workers and of workers coming under bilateral agreements within the meaning of Article 42, unless otherwise provided by such agreements, shall have access to the labour market of that Member State, during the period of that worker's authorized stay of employment.2. The Czech Republic shall, subject to the conditions and modalities applicable in that country, accord the treatment referred to in paragraph 1 to workers who are nationals of a Member State and are legally employed in its territory as well as to their spouse and children who are legally resident in the said territory.Article 39 1. With a view to coordinating social security systems for workers of Czech Republic nationality, legally employed in the territory of a Member State and for the members of their family, legally resident there, and subject to the conditions and modalities applicable in each Member State:- all periods of insurance, employment or residence completed by such workers in the various Member States shall be added together for the purpose of pensions and annuities in respect of old age, invalidity and death and for the purpose of medical care for such workers and such family members,- any pensions or annuities in respect of old age, death, industrial accident or occupational disease, or of invalidity resulting therefrom, with the exception of non-contributory benefits, shall be freely transferable at the rate applied by virtue of the law of the debtor Member State or States,- the workers in question shall receive family allowances for the members of their family as defined above.2. The Czech Republic shall accord to workers who are nationals of a Member State and legally employed in its territory, and to members of their families legally resident there, treatment similar to that specified in the second and third indents of paragraph 1.Article 40 1. The Association Council shall by decision adopt the appropriate provisions to implement the objective set out in Article 39.2. The Association Council shall by decision adopt detailed rules for administrative cooperation providing the necessary management and control guarantees for the application of the provisions referred to in paragraph 1.Article 41 The provisions adopted by the Association Council in accordance with Article 40 shall not affect any rights or obligations arising from bilateral agreements linking the Czech Republic and the Member States where those agreements provide for more favourable treatment of nationals of the Czech Republic or of the Member States.Article 42 1. Taking into account the labour market situation in the Member State, subject to its legislation and to the respect of rules in force in that Member State in the area of mobility of workers:- the existing facilities for access to employment for Czech Republic workers accorded by Member States under bilateral agreements ought to be preserved and if possible improved,- the other Member States shall consider favourably the possibility of concluding similar agreements.2. The Association Council shall examine granting other improvements including facilities of access for professional training, in conformity with rules and procedures in force in the Member States, and taking account of the labour market situation in the Member States and in the Community.Article 43 During the second stage referred to in Article 7, or earlier if so decided, the Association Council shall examine further ways of improving the movement of workers, taking into account inter alia the social and economic situation in the Czech Republic and the employment situation in the Community. The Association Council shall make recommendations to such end.Article 44 In the interest of facilitating the restructuring of labour resources resulting from the economic restructuring in the Czech Republic the Community shall provide technical assistance for the establishment of a suitable social security system in the Czech Republic as set out in Article 88.CHAPTER II Establishment Article 45 1. The Czech Republic shall, during the transitional periods referred to in Article 7, facilitate the setting up of operations on its territory by Community companies and nationals. To that end, it shall:(i) grant, from entry into force of this Agreement for the establishment of Community companies and nationals a treatment no less favourable than that accorded to its own nationals and companies, save for the sectors and matters referred to in Annexes XVIa and XVIb, where such treatment shall be granted at the latest by the end of the transitional period referred to in Article 7; and(ii) grant, from entry into force of this Agreement, in the operation of Community companies and nationals established in the Czech Republic a treatment no less favourable than that accorded to its own companies and nationals;(iii) notwithstanding the provisions of indents (i) and (ii), the national treatment as described in indents (i) and (ii) shall be applicable for Community nationals establishing in the Czech Republic as self-employed persons only from the start of the sixth year following the entry into force of this Agreement.2. The Czech Republic shall, during the transitional periods referred to in paragraph 1, not adopt any new regulations or measures which introduce discrimination as regards the establishment and operations of Community companies and nationals in its territory in comparison to its own companies and nationals.3. Each Member State shall grant, from entry into force of this Agreement, a treatment no less favourable than that accorded to its own companies and nationals for the establishment of Czech Republic companies and nationals and shall grant in the operation of Czech Republic companies and nationals established in its territory a treatment no less favourable than that accorded to its own companies and nationals.4. For the purposes of this Agreement:(a) establishment shall mean:(i) as regards nationals, the right to take up and pursue economic activities as self-employed persons and to set up and manage undertakings, in particular companies, which they effectively control. Self-employment and business undertakings by nationals shall not extend to seeking or taking employment in the labour market of another Party.The provisions of this chapter do not apply to those who are not exclusively self-employed;(ii) as regards companies, the right to take up and pursue economic activities by means of the setting up and management of subsidiaries, branches and agencies;(b) subsidiary of a company shall mean a company which is effectively controlled by the first company;(c) economic activities shall in particular include activities of an industrial character, activities of a commercial character, activities of craftsmen and activities of the professions.5. The Association Council shall during the transitional periods referred to in paragraph 1 (i) and (iii) examine regularly the possibility of accelerating the granting of national treatment in the sectors referred to in Annexes XVIa and XVIb and the inclusion of areas or matters listed in Annex XVIc within the scope of application of the provisions of paragraphs 1, 2 and 3 of this Article. Amendments may be made to these Annexes by decision of the Association Council.Following the expiration of the transitional periods referred to in paragraph 1 (i) and (iii), the Association Council may exceptionally, upon request of the Czech Republic, and if the necessity arises, decide to prolong the duration of exclusion of certain areas or matters listed in Annexes XVIa and XVIb for a limited period of time.6. The provisions concerning establishment and operation of Community and Czech Republic companies and nationals contained in paragraphs 1, 2 and 3 of this Article shall not apply to the areas or matters listed in Annex XVIc.7. Notwithstanding the provisions of this Article, Community companies established in the territory of the Czech Republic shall have, upon entry into force of this Agreement, where necessary for the conduct of the economic activities for which they are established, the right to acquire, use, rent and sell real property, and as regards natural resources, agricultural land and forestry, the right to lease.The Czech Republic shall grant these rights, where necessary for the conduct of the economic activities for which they are established, to branches and agencies established in the Czech Republic of Community companies at the latest by the end of the sixth year following the entry into force of this Agreement.The Czech Republic shall grant these rights, where necessary for the conduct of the economic activities for which they are established, to Community nationals established in the Czech Republic as self-employed persons at the latest by the end of the transitional period referred to in Article 7.Article 46 1. Subject to the provisions of Article 45, with the exception of financial services described in Annex XVIa, each Party may regulate the establishment and operation of companies and nationals on its territory, in so far as these regulations do not discriminate against companies and nationals of the other Party, in comparison to its own companies and nationals.2. In respect of financial services, described in Annex XVIa, this Agreement does not prejudice the right of the Parties to adopt measures necessary for the conduct of the Party's monetary policy, or for prudential grounds in order to ensure the protection of investors, depositors, policy holders, or persons to whom a fiduciary duty is owed, or to ensure the integrity and stability of the financial system. These measures shall not discriminate on grounds of nationality against companies and nationals of the other Party in comparison to its own companies and nationals.Article 47 In order to make it easier for Community nationals and Czech Republic nationals to take up and pursue regulated professional activities in the Czech Republic and the Community respectively, the Association Council shall examine which steps are necessary to be taken to provide for the mutual recognition of qualifications. It may take all necessary measures to that end.Article 48 The provisions of Article 46 do not preclude the application by a Contracting Party of particular rules concerning the establishment and operation in its territory of branches and agencies of companies of another Party not incorporated in the territory of the first Party, which are justified by legal or technical differences between such branches and agencies as compared to branches and agencies of companies incorporated in its territory, or, as regards financial services, for prudential reasons. The difference in treatment shall not go beyond what is strictly necessary as a result of such legal or technical differences, or, as regards financial services, described in Annex XVIa, for prudential reasons.Article 49 1. A 'Community company` and a 'Czech Republic company` respectively shall, for the purpose of this Agreement, mean a company or a firm set up in accordance with the laws of a Member State or of the Czech Republic respectively and having its registered office, central administration, or principal place of business in the territory of the Community or the Czech Republic respectively. However, should the company or firm, set up in accordance with the laws of a Member State or of the Czech Republic respectively, have only its registered office in the territory of the Community or the Czech Republic respectively, its operations must possess a real and continuous link with the economy of one of the Member States or the Czech Republic respectively.2. With regard to international maritime transport, shall also be beneficiaries of the provisions of this Chapter and Chapter III of this Title, a national or a shipping company of the Member States or of the Czech Republic respectively established outside the Community or the Czech Republic respectively and controlled by nationals of a Member State, or Czech Republic nationals respectively, if their vessels are registered in that Member State or in the Czech Republic respectively in accordance with their respective legislations.3. A Community and a Czech Republic national respectively shall, for the purpose of this Agreement, mean a natural person who is a national of one of the Member States or of the Czech Republic respectively.4. The provisions of this Agreement shall not prejudice the application by each Party of any measure necessary to prevent the circumvention of its measures concerning third country access to its market through the provisions of this Agreement.Article 50 For the purpose of this Agreement 'financial services` shall mean those activities described in Annex XVIa. The Association Council may extend or modify the scope of Annex XVIa.Article 51 During the first six years following the date of entry into force of this Agreement, or for the sectors referred to in Annexes XVIa and XVIb, during the transitional period referred to in Article 7, the Czech Republic may introduce measures which derogate from the provisions of this chapter as regards the establishment of Community companies and nationals if certain industries:- are undergoing restructuring, or- are facing serious difficulties, particularly where these entail serious social problems in the Czech Republic, or- face the elimination or a drastic reduction of the total market share held by Czech Republic companies or nationals in a given sector or industry in the Czech Republic, or- are newly emerging industries in the Czech Republic.Such measures:(i) shall cease to apply at the latest two years after the expiration of the sixth year following the date of entry into force of this Agreement or for the sectors included in Annex XVIa and in Annex XVIb upon the expiration of the transitional period referred to in Article 7; and(ii) shall be reasonable and necessary in order to remedy the situation; and(iii) shall only relate to establishments in the Czech Republic to be created after the entry into force of such measures and shall not introduce discrimination concerning the operations of Community companies or nationals already established in the Czech Republic at the time of introduction of a given measure compared to Czech Republic companies or nationals.The Association Council may exceptionally, upon request of the Czech Republic, and if the necessity arises, decide to prolong the periods referred to in point (i) above for a given sector for a limited period of time.While devising and applying such measures, the Czech Republic shall grant whenever possible to Community companies and nationals a preferential treatment, and in no case a treatment less favourable than that accorded to companies or nationals from any third country.Prior to the introduction of these measures, the Czech Republic shall consult the Association Council and shall not put them into effect before a one-month period following the notification to the Association Council of the concrete measures to be introduced by the Czech Republic, except where the threat of irreparable damage requires the taking of urgent measures in which case the Czech Republic shall consult the Association Council immediately after their introduction.Upon the expiration of the sixth year following the entry into force of this Agreement, or for the sectors included in Annexes XVIa and XVIb upon expiration of the transitional period referred to in Article 7, the Czech Republic may introduce such measures only with the authorization of the Association Council and under conditions determined by the latter.Article 52 1. The provisions of this Chapter shall not apply to air transport services, inland-waterways transport services and maritime cabotage transport services.2. The Association Council may make recommendations for improving establishment and operations in the areas covered by paragraph 1.Article 53 1. Notwithstanding the provisions of Chapter I of this Title, the beneficiaries of the rights of establishment granted by the Czech Republic and the Community respectively shall be entitled to employ, or have employed by one of their subsidiaries, in accordance with the legislation in force in the host country of establishment, in the territory of the Czech Republic and the Community respectively, employees who are nationals of Community Member States and the Czech Republic respectively, provided that such employees are key personnel as defined in paragraph 2, and that they are employed exclusively by such beneficiaries or their subsidiaries. The residence and work permits of such employees shall only cover the period of such employment.2. Key personnel of the beneficiaries of the rights of establishment herein referred to as organization are:(a) senior employees of an organization who primarily direct the management of the organization, receiving general supervision or direction principally from the board of directors or shareholders of the business, including:- directing the organization or a department or sub-division of the organization,- supervising and controlling the work of other supervisory, professional or managerial employees,- having the authority personally to engage and dismiss or recommend engaging, dismissing or other personnel actions;(b) persons employed by an organization who possess high or uncommon:- qualifications referring to a type of work or trade requiring specific technical knowledge,- knowledge essential to the organization's service, research equipment, techniques or management.These may include, but are not limited to, members of accredited professions.Each such employee must have been employed by the organization concerned for at least one year preceding the detachment by the organization.Article 54 1. The provisions of this Chapter shall be applied subject to limitations justified on grounds of public policy, public security or public health.2. They shall not apply to activities which in the territory of each Party are connected, even occasionally, with the exercise of official authority.Article 55 Companies which are controlled and exclusively owned jointly by Czech Republic companies or nationals and Community companies or nationals shall also be beneficiaries of the provisions of this Chapter and Chapter III of this Title.CHAPTER III Supply of services between the Community and the Czech Republic Article 56 1. The Parties undertake in accordance with the provisions of this Chapter to take the necessary steps to allow progressively the supply of services by Community or Czech Republic companies or nationals who are established in a Party other than that of the person for whom the services are intended taking into account the development of the services sector in the Parties.2. In step with the liberalization process mentioned in paragraph 1, and subject to the provisions of Article 59 (1), the Parties shall permit the temporary movement of natural persons providing the service or who are employed by the service provider as key personnel as defined in Article 53 (2), including natural persons who are representatives of a Community or Czech Republic company or national and are seeking temporary entry for the purpose of negotiating for the sale of services or entering into agreements to sell services for that service provider, where those representatives will not be engaged in making direct sales to the general public or in supplying services themselves.3. The Association Council shall take the measures necessary to implement progressively the provisions of paragraph 1.Article 57 With regard to supply of transport services between the Community and the Czech Republic, the following replaces the provisions of Article 56:1. With regard to international maritime transport the Parties undertake to apply effectively the principle of unrestricted access to the market and traffic on a commercial basis.(a) The above provision does not prejudice the rights and obligations under the United Nations Code of Conduct for Liner Conferences, as applied by one or the other Contracting Party to this Agreement. Non-conference liners will be free to operate in competition with a conference as long as they adhere to the principle of fair competition on a commercial basis.(b) The Parties affirm their commitment to a freely competitive environment as being an essential feature of the dry and liquid bulk trade.2. In applying the principles of paragraph 1, the Parties shall:(a) not introduce cargo sharing clauses in future bilateral agreements with third countries, other than in those exceptional circumstances where liner shipping companies from one or other Party to this Agreement would not otherwise have an effective opportunity to ply for trade to and from the third country concerned;(b) prohibit cargo sharing arrangements in future bilateral agreements concerning dry and liquid bulk trade;(c) abolish, upon entry into force of this Agreement, all unilateral measures, administrative, technical and other obstacles which could have restrictive or discriminatory effects on the free supply of services in international maritime transport.3. With a view to assuring a coordinated development and progressive liberalization of transport between the Parties adapted to their reciprocal commercial needs, the conditions of mutual market access in air transport and in inland transport shall be dealt with by special transport agreements to be negotiated between the Parties after the entry into force of this Agreement.4. Prior to the conclusion of the agreements referred to in paragraph 3, the Parties shall not take any measures or actions which are more restrictive or discriminatory as compared to the situation existing on the day preceding the day of entry into force of this Agreement.5. During the transitional period, the Czech Republic shall progressively adapt its legislation including administrative, technical and other rules to that of the Community legislation existing at any time in the field of air and inland transport in so far as it serves liberalization purposes and mutual access to markets of the Parties and facilitates the movement of passengers and of goods.6. In step with the common progress in the achievement of the objectives of this Chapter, the Association Council shall examine ways of creating the conditions necessary for improving freedom to provide air and inland transport services.Article 58 The provisions of Article 54 shall apply to the matters covered by this Chapter.CHAPTER IV General provisions Article 59 1. For the purpose of Title IV of this Agreement, nothing in the Agreement shall prevent the Parties from applying their laws and regulations regarding entry and stay, work, labour conditions and establishment of natural persons, and supply of services, provided that, in so doing, they do not apply them in a manner as to nullify or impair the benefits accruing to any Party under the terms of a specific provision of this Agreement. This provision does not prejudice the application of Article 54.2. The provisions of Chapters, II, III and IV of Title IV shall be adjusted by decision of the Association Council in the light of the result of the negotiations on services taking place in the Uruguay Round and in particular to ensure that under any provision of this Agreement a Party grants to the other Party a treatment no less favourable than that accorded under the provisions of a future General Agreement on Trade and Services (GATS).3. The exclusion of Community companies and nationals established in the Czech Republic in accordance with the provisions of Chapter II of Title IV from public aid granted by the Czech Republic in the areas of public education services, health related and social services and cultural services shall, for the duration of the transitional period referred to in Article 7, be deemed compatible with the provisions of Title IV and with the competition rules referred to in Title V.TITLE V PAYMENTS, CAPITAL, COMPETITION AND OTHER ECONOMIC PROVISIONS, APPROXIMATION OF LAWS CHAPTER I Current payments and movement of capital Article 60 The Contracting Parties undertake to authorize, in freely convertible currency, any payments on the current account of balance of payments to the extent that the transaction underlying the payments concern movements of goods, services or persons between the Parties which have been liberalized pursuant to this Agreement.Article 61 1. With regard to transactions on the capital account of balance of payments, from the entry into force of this Agreement, the Member States and the Czech Republic respectively shall ensure the free movement of capital relating to direct investments made in companies formed in accordance with the laws of the host country and investments made in accordance with the provisions of Chapter II of Title IV, and the liquidation or repatriation of these investments and of any profit stemming therefrom. Notwithstanding the above provision, such free movement, liquidation and repatriation shall be ensured by the end of the fifth year following the entry into force of this Agreement for all investments linked to establishment of nationals establishing in the Czech Republic as self-employed persons pursuant to Chapter II of Title IV.2. Without prejudice to paragraph 1, the Member States, as from the entry into force of this Agreement, and the Czech Republic as from the end of the fifth year following the entry into force of this Agreement, shall not introduce any new foreign exchange restrictions on the movement of capital and current payments connected therewith between residents of the Community and the Czech Republic and shall not make the existing arrangements more restrictive.3. The Parties shall consult each other with a view to facilitating the movement of capital between the Community and the Czech Republic in order to promote the objectives of this Agreement.Article 62 1. During the five years following the date of entry into force of this Agreement, the Contracting Parties shall take measures permitting the creation of the necessary conditions for the further gradual application of Community rules on the free movement of capital.2. By the end of the fifth year from the entry into force of this Agreement, the Association Council shall examine ways of enabling Community rules on the movement of capital to be applied in full.Article 63 With reference to the provisions of this Chapter, and notwithstanding the provisions of Article 65, until a full convertibility of the Czech Republic currency within the meaning of Article VIII of the International Monetary Fund is introduced, the Czech Republic may in exceptional circumstances apply exchange restrictions connected with the granting or taking up of short- and medium-term credits to the extent that such restrictions are imposed on the Czech Republic for the granting of such credits and are permitted according to the Czech Republic's status under the IMF.The Czech Republic shall apply these restrictions in a non-discriminatory manner. They shall be applied in such a manner as to cause the least possible disruption to this Agreement. The Czech Republic shall inform the Association Council promptly of the introduction of such measures and of any changes therein.CHAPTER II Competition and other economic provisions Article 64 1. The following are incompatible with the proper functioning of the Agreement, in so far as they may affect trade between the Community and the Czech Republic:(i) all agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;(ii) abuse by one or more undertakings of a dominant position in the territories of the Community or of the Czech Republic as a whole or in a substantial part thereof;(iii) any public aid which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods.2. Any practices contrary to this Article shall be assessed on the basis of criteria arising from the application of the rules of Articles 85, 86 and 92 of the Treaty establishing the European Economic Community.3. The Association Council shall, within three years of the entry into force of this Agreement, adopt the necessary rules for the implementation of paragraphs 1 and 2. Until the implementing rules are adopted, practices incompatible with paragraph 1 shall be dealt with by the Contracting Parties on their respective territories according to their respective legislations. This is without prejudice to paragraph 6.4. (a) For the purposes of applying the provisions of paragraph 1 (iii), the Parties recognize that during the first five years after the entry into force of this Agreement, any public aid granted by the Czech Republic shall be assessed taking into account the fact that the Czech Republic shall be regarded as an area identical to those areas of the Community described in Article 92 (3) (a) of the Treaty establishing the European Economic Community. The Association Council shall, taking into account the economic situation of the Czech Republic, decide whether that period should be extended by further periods of five years.(b) Each Party shall ensure transparency in the area of public aid, inter alia by reporting annually to the other Party on the total amount and the distribution of the aid given and by providing, upon request, information on aid schemes. Upon request by one Party, the other Party shall provide information on particular individual cases of public aid.5. With regard to products referred to in Chapters II and III of Title III:- the provision of paragraph 1 (iii) does not apply,- any practices contrary to paragraph 1 (i) should be assessed according to the criteria established by the Community on the basis of Articles 42 and 43 of the Treaty establishing the European Economic Community and in particular of those established in Council Regulation No 26/62.6. If the Community or the Czech Republic considers that a particular practice is incompatible with the terms of paragraph 1, and:- is not adequately dealt with under the implementing rules referred to in paragraph 3, or- in the absence of such rules, and if such practice causes or threatens to cause serious prejudice to the interest of the other Party or material injury to its domestic industry, including its services industry,it may take appropriate measures after consultation within the Association Council or after 30 working days following referral for such consultation.In the case of practices incompatible with paragraph 1 (iii), such appropriate measures may, where the General Agreement on Tariffs and Trade applies thereto, only be adopted in accordance with the procedures and under the conditions laid down by the General Agreement on Tariffs and Trade and any other relevant instrument negotiated under its auspices which are applicable between the Parties.7. Notwithstanding any provisions to the contrary adopted in accordance with paragraph 3, the Parties shall exchange information taking into account the limitations imposed by the requirements of professional and business secrecy.8. This Article shall not apply to the products covered by the Treaty establishing the European Coal and Steel Community which are the subject of Protocol 2.Article 65 1. Where one or more Member States of the Community or the Czech Republic is in serious balance of payments difficulties, or under imminent threat thereof, the Community or the Czech Republic, as the case may be, may, in accordance with the conditions established under the General Agreement on Tariffs and Trade, adopt restrictive measures, including measures relating to imports, which shall be of limited duration and may not go beyond what is necessary to remedy the balance of payments situation. The measures shall be progressively relaxed as balance of payments conditions improve and they shall be eliminated when conditions no longer justify their maintenance. The Community or the Czech Republic, as the case may be, shall inform the other Party forthwith of their introduction and, whenever practicable, of a time schedule for their removal.2. The Parties shall nevertheless endeavour to avoid the imposition of restrictive measures for balance of payments purposes.3. Any restrictive measures shall not apply to transfers related to investment and in particular to the repatriation of amounts invested or reinvested and of any kind of revenues stemming therefrom.Article 66 With regard to public undertakings, and undertakings to which special or exclusive rights have been granted, the Association Council shall ensure that as from the third year following the date of entry into force of this Agreement, the principles of the Treaty establishing the European Economic Community, in particular Article 90, and the principles of the concluding document of the April 1990 Bonn meeting of the Conference on Security and Cooperation in Europe, in particular entrepreneurs' freedom of decision, are upheld.Article 67 1. The Czech Republic shall continue to improve the protection of intellectual, industrial and commercial property rights in order to provide, by the end of the fifth year after the entry into force of this Agreement, a level of protection similar to that existing in the Community, including comparable means of enforcing such rights.2. Within the same time, the Czech Republic shall apply to accede to the Munich Convention on the granting of European patents of 5 October 1973. The Czech Republic shall also accede to the other multilateral conventions on intellectual, industrial and commercial property rights referred to in Annex XVII paragraph 1 to which Member States are Parties, or which are de facto applied by Member States.Article 68 1. The Contracting Parties consider the opening up of the award of public contracts on the basis of non-discrimination and reciprocity, in particular in the GATT context, to be a desirable objective.2. The Czech Republic companies as defined in Article 49, shall be granted access to contract award procedures in the Community pursuant to Community procurement rules under a treatment no less favourable than that accorded to Community companies as of the entry into force of this Agreement.Community companies as defined in Article 49 shall be granted access to contract award procedures in the Czech Republic under a treatment no less favourable than that accorded to Czech Republic companies at the latest at the end of the transitional period referred to in Article 7.Community companies established in the Czech Republic under the provisions of Chapter II of Title IV shall have upon entry into force of this Agreement access to contract award procedures under a treatment no less favourable than that accorded to Czech Republic companies.The Association Council shall periodically examine the possibility for the Czech Republic in introduce access to award procedures in the Czech Republic for all Community companies prior to the end of the transitional period.3. As regards establishment, operations, supply of services between the Community and the Czech Republic, as well as employment and movement of labour linked to the fulfilment of public contracts, the provisions of Articles 38 to 59 are applicable.CHAPTER III Approximation of laws Article 69 The Contracting parties recognize that the major precondition for the Czech Republic's economic integration into the Community is the approximation of the Czech Republic's existing and future legislation to that of the Community. The Czech Republic shall endeavour to ensure that its legislation will be gradually made compatible with that of the Community.Article 70 The approximation of laws shall extend to the following areas in particular: customs law, company law, banking law, company accounts and taxes, intellectual property, protection of workers at the workplace, financial services, rules on competition, protection of health and life of humans, animals and plants, consumer protection, indirect taxation, technical rules and standards, nuclear law and regulation, transport and the environment.Article 71 The Community shall provide the Czech Republic with technical assistance for the implementation of these measures, which may include inter alia:- the exchange of experts,- the provision of early information especially on relevant legislation,- organization of seminars,- training activities,- aid for the translation of Community legislation in the relevant sectors.TITLE VI ECONOMIC COOPERATION Article 72 1. The Community and the Czech Republic shall establish economic cooperation aimed at contributing to the Czech Republic's development and growth potential. Such cooperation shall strengthen existing economic links on the widest possible foundation, to the benefit of both Parties.2. Policies and other measures will be designed to bring about economic and social development of the Czech Republic and will be guided by the principle of sustainable development. These policies should ensure that environmental considerations are also fully incorporated from the outset and that they are linked to the requirements of harmonious social development.3. To this end the cooperation should focus in particular on policies and measures related to industry including the mining sector, investment, agriculture, energy, transport, regional development and tourism.4. Special attention must be devoted to measures capable of fostering cooperation between the countries of central and eastern Europe with a view to a harmonious development of the region.Article 73 Industrial cooperation1. Cooperation shall aim at promoting the modernization and restructuring of Czech Republic industry in both public and private sectors as well as industrial cooperation between economic operators of both sides, with the particular objective of strengthening the private sector.2. Particular attention shall be paid to:- the restructuring of individual sectors; in this context, the Association Council will examine in particular the problems affecting the sectors of coal and steel and the conversion of the defence industry,- the establishment of new undertakings in areas offering potential for growth.3. Industrial cooperation initiatives take into account priorities determined by the Czech Republic. The initiatives should seek in particular to establish a suitable framework for undertakings, to improve management know-how and to promote transparency as regards markets and conditions for undertakings, and will include technical assistance where appropriate.Article 74 Investment promotion and protection1. Cooperation shall aim to establish a favourable climate for private investment, both domestic and foreign, which is essential to economic and industrial reconstruction in the Czech Republic.2. The particular aims of cooperation shall be:- to improve the institutional framework for investments in the Czech Republic,- the extension by the Member States and the Czech Republic of agreements for the promotion and protection of investment,- to implement suitable arrangements for the transfer of capital,- to proceed with deregulation and to improve economic infrastructure,- to exchange information on investment opportunities in the form of trade fairs, exhibitions, trade weeks and other events.Article 75 Industrial standards and conformity assessment1. The Parties shall cooperate with the aim to achieve the Czech Republic's full conformity with Community technical regulations and European standardization and conformity assessment procedures.2. To this end, the cooperation shall seek:- to promote the use of Community technical regulations and European standards and conformity assessment procedures,- where appropriate, to achieve the conclusion of agreements on mutual recognition in these fields,- to encourage the Czech Republic's participation in the work of specialized organizations (CEN, Cenelec, ETSI, EOTC).3. The Community will provide the Czech Republic with technical assistance where appropriate.Article 76 Cooperation in science and technology1. The Parties shall promote cooperation in research and technological development. They shall devote special attention to the following:- the exchange of information on each other's science and technology policies,- the organization of joint scientific meetings (seminars and workshops),- joint R& D activities aimed at encouraging scientific progress and the transfer of technology and know-how,- training activities and mobility programmes for researchers and specialists from both sides,- the development of an environment conducive to research and the application of new technologies and adequate protection of the intellectual property of the results of research,- participation of the Czech Republic in the Community programmes in accordance with paragraph 3.Technical assistance shall be provided where appropriate.2. The Association Council shall determine the appropriate procedures for developing cooperation.3. Cooperation under the Community's framework programme in the field of research and technological development shall be implemented according to specific arrangements to be negotiated and concluded in accordance with the legal procedures of each Party.Article 77 Education and training1. The Parties shall cooperate with the aim of raising the level of general education and professional qualifications in the Czech Republic, taking into consideration the priorities of the Czech Republic. Institutional frameworks and plans of cooperation will be established building on the European Training Foundation and the Tempus programme. Participation of the Czech Republic in other Community programmes could also be considered in this context.2. The cooperation shall focus in particular on the following areas and according to modalities to be determined jointly by the Parties:- reform of the education and training system in the Czech Republic,- initial training, in-service training and retraining, including the training of public and private sector executives and senior civil servants, particularly in priority areas to be determined,- cooperation between universities, cooperation between universities and firms, and mobility for teachers, students, administrators and young people,- promoting teaching in the field of European studies within the appropriate institutions,- mutual recognition of periods of studies and diplomas.3. In the field of translation, cooperation will focus on training of translators and interpreters and promotion of Community linguistic norms and terminology.Article 78 Agriculture and the agro-industrial sector1. Cooperation in this area shall have as its aim the modernization of agriculture and the agro-industrial sector. It shall endeavour in particular to:- develop private farms and distribution channels, methods of storage, marketing, etc.,- modernize the rural infrastructure (transport, water supply, telecommunications),- land-use planning, including construction and urban planning,- improve productivity and quality by using appropriate methods and products; provide training and monitoring in the use of anti-pollution methods connected with inputs,- develop and modernize processing firms and their marketing techniques,- promote complementarity in agriculture,- promote industrial cooperation in agriculture and the exchange of know-how, particularly between the private sectors in the Community and the Czech Republic,- develop cooperation on animal health and plant health with the aim of bringing about gradual harmonization with Community standards through assistance for training and the organization of checks.2. To these ends, technical assistance shall be provided by the Community as appropriate.Article 79 Energy1. Within the principles of the market economy, the Parties shall cooperate to develop the progressive integration of the energy markets of the Czech Republic and the Community. They shall pay particular attention to the Community's proposals for a European energy charter and the parallel integration of such markets with the other countries of central and eastern Europe.2. The cooperation shall include among others technical assistance when appropriate in the following areas:- formulation and planning of energy policy both at national and regional level,- opening up the energy market to a greater degree, including facilitating transit of gas and electricity,- study of the modernization of energy infrastructures,- improvement of distribution as well as improvement and diversification of supply,- management and training for the energy sector,- the development of energy resources,- the promotion of energy saving and energy efficiency,- the environmental impact of energy production and consumption,- the nuclear energy sector,- the electricity and gas sectors, including the consideration of the possibility of the interconnection of the supply networks,- the formulation of framework conditions for cooperation between undertakings in this sector, which could include the encouragement of joint ventures,- the transfer of technology and know-how, which may include if appropriate the promotion and commercialization of efficient energy technologies.Article 80 Nuclear safety1. The aim of cooperation is to provide for a safer use of nuclear energy.2. Cooperation shall mainly cover the following topics:- nuclear safety, nuclear emergency preparedness and management,- radiation protection, including environmental radiation monitoring,- fuel cycle problems, safeguarding of nuclear materials,- radioactive waste management,- decommissioning and dismantling of nuclear installations,- decontamination.3. Cooperation will include exchange of information and experience and R& D activities in accordance with Article 76.Article 81 Environment1. The Parties shall develop and strengthen their cooperation on environment and human health, which they have judged to be a priority.2. Cooperation shall concern:- effective monitoring of pollution levels; systems of information on the state of the environment,- combating regional and transboundary air pollution,- sustainable, efficient and environmentally effective use and production of energy; safety of industrial plants; development of relevant technologies and production processes,- classification and safe handling of chemicals,- effective prevention and reduction of water pollution, especially of sources of drinking water and transboundary watercourses,- waste reduction, recycling and safe disposal (including radioactive wastes),- the environmental impact of agriculture; soil erosion; the protection of forests and flora and fauna; restoring ecological stability of the countryside,- land-use planning, including construction and urban planning,- use of economic and fiscal instruments,- global climate change and its prevention,- environmental education and awareness,- international conventions in the area of environment.3. Cooperation shall take place through:- exchange of information and experts, including information and experts dealing with the transfer of clean technologies; development of information systems on environment,- training programmes,- joint research activities,- approximation of laws (Community standards),- cooperation at regional level (including cooperation within the framework of the European Environment Agency, when established by the Community) and at international level,- development of strategies, particularly with regard to global and climatic issues.Article 82 Transport1. The Parties shall develop and step up cooperation in order to enable the Czech Republic to:- restructure and modernize transport,- improve circulation of passengers and goods and the access to the transport market by removing administrative, technical and other obstacles,- facilitate Community transit in the Czech Republic by road, rail, river and combined transport,- achieve operating standards comparable to those in the Community.2. The cooperation shall include the following in particular:- economic, legal and technical training programmes,- the provision of technical assistance and advice, and the exchange of information,- the provision of means to develop infrastructure in the Czech Republic.3. The cooperation shall include the following priority areas:- the construction and modernization of road transport, including the gradual easing of transit conditions,- the management of railways and airports, including cooperation between the appropriate national authorities,- the modernization, on major routes of common interest and trans-European links, of road, inland waterway, railway, port and airport infrastructure,- land-use planning including construction and urban planning,- the promotion of road-rail transport containerization, transhipment and the construction of terminals,- the replacement of transport technical equipment in order to meet Community standards,- the promotion of joint technological and research programmes in accordance with Article 76,- the development of legislative measures and the implementation of policies in all areas of transportation, compatible with the transport policies applicable in the Community.Article 83 Telecommunications1. The Parties shall expand and strengthen cooperation in this area, and shall to this end initiate in particular the following actions:- exchange information on telecommunications policies,- exchange technical and other information and organize seminars, workshops and conferences for experts of both sides,- conduct training and advisory operations,- carry out transfers of technology,- have the appropriate bodies from both sides carry out joint projects,- promote European standards, systems of certification and regulatory approaches,- promote new communications, services and facilities, particularly those with commercial applications.2. These activities shall focus on the following priority areas:- the modernization of the Czech Republic's telecommunications network and its integration into European and world networks,- cooperation within the structures of European standardization,- the integration of trans-European systems; the legal and regulatory aspects of telecommunications,- the management of telecommunications in the new economic environment: organizational structures, strategy and planning, purchasing principles,- land-use planning, construction and urban planning.Article 84 Banking, insurance, other financial services and audit cooperation1. The Parties shall cooperate with the aim of establishing and developing a suitable framework for the encouragement of banking, insurance and financial services sector in the Czech Republic.(a) The cooperation shall focus on:- the adoption of a common accounting system compatible with European standards,- the strengthening and restructuring of the banking and financial sectors,- the improvement of supervision and regulation of banking and financial services,- the preparation of translations of Community and Czech Republic legislation,- the preparation of glossaries of terminology,- the exchange of information in particular in respect of proposed legislation.(b) To this end, the cooperation shall include the provision of technical assistance and training.2. The Parties shall cooperate with aim of developing efficient audit systems in the Czech Republic following standard Community methods and proceedings.(a) Cooperation shall focus on:- the establishment in the Czech Republic of an independent Supreme Audi Office,- the establishment of internal audit units in government agencies,- the exchange of relevant audit information,- the uniformization of audit documentation,- training and advisory operations.(b) To this end, technical assistance shall be provided by the Community as appropriate.Article 85 Monetary policyAt the request of the Czech Republic authorities, the Community shall provide technical assistance designed to support the efforts of the Czech Republic towards the introduction of full convertibility of the crown and the gradual approximation of its policies to those of the European Monetary System. This will include informal exchange of information concerning the principles and the functioning of the European Monetary System.Article 86 Money laundering1. The Parties agree on the necessity of making every effort and cooperating in order to prevent the use of their financial systems for laundering of proceeds from criminal activities in general and drug offences in particular.2. Cooperation in this area shall include administrative and technical assistance with the purpose of establishing suitable standards against money laundering equivalent to those adopted by the community and international fora in this field, in particular the Financial Action Task Force (FATF).Article 87 Regional development1. The Parties shall strengthen cooperation between them on regional development and land-use.2. To this end, any of the following measures may be undertaken:- the exchange of information by national, regional or local authorities on regional and land-use planning policy,- the provision of assistance to the Czech Republic for the formulation of such policy,- joint action by regional and local authorities in the area of economic development,- the study of coordinated approaches for the development of border areas between the Community and the Czech Republic and other Czech Republic areas with severe regional disparities;- exchange visits to explore the opportunities for cooperation and assistance,- the exchange of civil servants or experts,- the provision of technical assistance,- the establishment of programmes for the exchange of information and experience, by methods including seminars.Article 88 Social cooperation1. With regard to health and safety, the Parties shall develop cooperation between them with the aim of improving the level of protection of the health and safety of workers, taking as a reference the level of protection existing in the Community. Cooperation shall comprise the following in particular:- the provision of technical assistance,- the exchange of experts,- cooperation between firms,- the exchange of information and administrative and other relevant assistance to firms, training operations.2. With regard to employment, cooperation between the Parties shall focus notably on upgrading job-finding and careers-advice services, providing back-up measures and promoting local development to assist industrial restructuring.It shall also include measures such as the performance of studies, provision of the services of experts and information and training.3. With regard to social security, cooperation between the Parties shall seek to adapt the social security systems to the new economic and social situation, primarily by providing the services of experts and information and training.Article 89 TourismThe Parties shall increase and develop cooperation between them, which shall include:- facilitating the tourist trade,- increasing the flow of information through international networks, data banks, etc.,- transferring know-how through training, exchanges, seminars,- executing regional tourist projects such as cross-frontier projects, town-twinning, etc.,- exchanging views and providing for appropriate exchanges of information on major issues of mutual interest affecting the tourism sector,- encouraging the development of infrastructure conducive to investment in the tourism sector.Article 90 Small and medium-sized enterprises1. The Parties shall aim to develop and strengthen private sector small and medium-sized enterprises and cooperation between SMEs in the Community and the Czech Republic.2. They shall encourage the exchange of information and know-how in the following areas:- bringing about the legal, administrative, technical, tax and financial conditions necessary for the establishment and expansion of SMEs and for cross-border cooperation,- the provision of the specialized services required by SMEs (management training, accounting, marketing, quality control, etc.) and the strengthening of agencies providing such services,- the establishment of appropriate links with Community operators with the aim of improving the flow of information to SMEs and promoting cross-border cooperation (e.g. the Business Cooperation Network (BC-NET), Euro-Info Centres, conferences, etc.).3. The cooperation will include the provision of technical assistance in particular for the establishment of appropriate institutional support for SMEs, at national and regional level, in respect of financial, training, advisory, technological and commercial services.Article 91 Information and communicationWith regard to information and communication, the Community and the Czech Republic shall take appropriate steps to stimulate effective mutual exchange of information. Priority shall be given to programmes aimed at providing the general public with basic information about the Community and specific circles in the Czech Republic with more specialized information, including, where possible, access to Community databases.Article 92 Consumer protection1. The Parties shall cooperate with the aim of achieving full compatibility of the Czech Republic with the Community consumer protection system.2. To this end, the cooperation shall comprise, within existing possibilities:- exchange of information and experts,- access to Community databases,- training operations and technical assistance.Article 93 Customs1. The aim of cooperation shall be to guarantee compliance with all the provisions scheduled for adoption in connection with trade and to achieve the approximation of the Czech Republic's customs system to that of the Community, thus helping to ease the steps towards liberalization planned under this Agreement.2. Cooperation shall include the following in particular:- the exchange of information,- the development of cross-frontier infrastructure between the Parties,- the interconnection between the transit systems of the Community and the Czech Republic,- the simplification of inspections and formalities in respect of the carriage of goods,- the organization of seminars and placements.Technical assistance shall be provided where appropriate.3. Without prejudice to further cooperation provided for in this Agreement, and in particular Article 96, the mutual assistance between administrative authorities in customs matters of the Contracting Parties shall take place in accordance with the provisions of Protocol 6.Article 94 Statistical cooperation1. Cooperation in this area shall have as its aim the development of an efficient statistical system to provide, in a rapid and timely fashion, the reliable statistics needed to plan and monitor the process of reform and to contribute to the development of private enterprise in the Czech Republic.2. The Parties shall cooperate in particular:- to strengthen the service of statistics of the Czech Republic,- to bring about harmonization with international (and particularly Community) methods, standards and classifications,- to provide the data needed to maintain and monitor economic reform,- to provide private-sector economic operators with the appropriate macro-economic and micro-economic data,- to guarantee the confidentiality of data,- to exchange statistical information.3. Technical assistance shall be provided by the Community as appropriate.Article 95 Economics1. The Community and the Czech Republic will facilitate the process of economic reforms and integration by cooperating to improve understanding of the fundamentals of their respective economies and of implementing economic policy in market economies.2. To these ends the Community and the Czech Republic will:- exchange information on macro-economic performance and prospects and on strategies for development where appropriate,- analyse jointly economic issues of mutual interest, including the framing of economic policy and the instruments for implementing it,- through the programme of Action for Cooperation in Economics in particular, encourage extensive cooperation among economists and managers in the Community and the Czech Republic, in order to speed the transfer of know-how for the drafting of economic policies, and provide for wide dissemination of the results of policy-relevant research.Article 96 Drugs1. The cooperation is in particular aimed at increasing the efficiency of policies and measures to counter the supply and illicit traffic of narcotics and psychotropic substances and the reduction of abuse of these products.2. The Contracting Parties shall agree on the necessary methods of cooperation to attain these objectives, including the modalities of the implementation of common actions. Their actions will be based on consultation on a close coordination of the objectives and the policy measures in the fields targeted in paragraph 1.3. The cooperation between the Contracting Parties will comprise technical and administrative assistance which could deal in particular with the following areas: the drafting and implementation of national legislation; the creation of institutions and information centres and of social and health centres; the training of personnel and research; the prevention of diversion of precursors used for the purpose of illicit manufacture of narcotic drugs or psychotropic substances.The Parties may agree to include other areas.TITLE VII CULTURAL COOPERATION Article 97 1. The Parties undertake to promote cultural cooperation. Where appropriate, Community's cultural cooperation programmes, or those of one or more Member States may be extended to the Czech Republic and further activities of interest to both sides developed.This cooperation may notably cover:- literary translation,- conservation and restoration of monuments and sites (architectural and cultural heritage),- training for those dealing with cultural affairs,- the organization of European-oriented cultural events.2. The Parties shall cooperate in the promotion of the audiovisual industry in Europe. The audiovisual sector in the Czech Republic could in particular participate in activities set up by the Community in the MEDIA programme for 1991 to 1995 in accordance with the procedures laid down by the bodies responsible for managing each activity and in accordance with the provisions of the Decision of the Council of the European Communities of 21 December 1990, which established the programme.The Parties shall coordinate, and where appropriate, harmonize, their policies regarding the regulation of cross-border broadcasts, technical standards and the promotion of European audiovisual technology.TITLE VIII FINANCIAL COOPERATION Article 98 In order to achieve the objectives of this Agreement and in accordance with Articles 99, 100, 102 and 103, without prejudice to Article 101, the Czech Republic shall benefit from temporary financial assistance from the Community in the form of grants and loans, including loans from the European Investment Bank according to the provisions of Article 18 of the Statute of the Bank.Article 99 This financial assistance shall be covered by:- the operation Phare measures provided for in Council Regulation (EEC) No 3906/89, as amended, for as long as they are applicable; thereafter grants will be made available by the Community, either within the framework of the operation Phare on a multiannual basis, or within a new financial multiannual framework established by the Community following consultations with the Czech Republic and taking into account the considerations set out in Articles 102 and 103,- the loan(s) provided by the European Investment Bank until the expiry date of the availability thereof; following consultations with the Czech Republic the Community shall fix the maximum amount and period of availability of loans from the European Investment Bank for the Czech Republic for subsequent years.Article 100 The objectives and the areas of the Community's financial assistance shall be laid down in an indicative programme to be agreed between the two Parties. The Parties shall inform the Association Council.Article 101 1. The Community shall, in case of special need, taking into account the availability of all financial resources, on request of the Czech Republic and in coordination with international financial institutions, in the context of the G-24, examine the possibility of granting temporary financial assistance:- to support measures with the aim to introduce and maintain the convertibility of the Czech Republic currency,- to support medium-term stabilization and structural adjustment efforts, including balance of payments assistance.2. This financial assistance is subject to the Czech Republic's presentation of IMF supported programmes in the context of G-24, as appropriate, for convertibility and/or for restructuring its economy, to the Community's acceptance thereof, to the Czech Republic's continued adherence to these programmes and, as an ultimate objective, to rapid transition to reliance on finance from private sources.3. The Association Council will be informed of the conditions under which this assistance will be provided and of the respect of the obligations undertaken by the Czech Republic concerning such assistance.Article 102 The Community financial assistance shall be evaluated in the light of the needs which arise and of the Czech Republic's development level, and taking into account established priorities and the absorption capacity of the Czech Republic economy, the ability to repay loans and accomplishment of a market economy system and restructuring in the Czech Republic.Article 103 In order to permit optimum use of the resources available, the Contracting Parties shall ensure that Community contributions are made in close coordination with those from other sources such as the Member States, other countries, including the G-24, and international financial institutions, such as the International Monetary Fund, the International Bank for Reconstruction and Development and the European Bank for Reconstruction and Development.TITLE IX INSTITUTIONAL, GENERAL AND FINAL PROVISIONS Article 104 An Association Council is hereby established which shall supervise the implementation of this Agreement. It shall meet at ministerial level once a year and when circumstances require. It shall examine any major issues arising within the framework of this Agreement and any other bilateral or international issues of mutual interest.Article 105 1. The Association Council shall consist of the members of the Council of the European Communities and members of the Commission of the European Communities, on the one hand, and of members appointed by the Government of the Czech Republic, on the other.2. Members of the Association Council may arrange to be represented, in accordance with the conditions to be laid down in its rules of procedure.3. The Association Council shall establish its rules of procedure.4. The Association Council shall be presided in turn by a member of the Council of the European Communities and a member of the Government of the Czech Republic, in accordance with the provisions to be laid down in its rules of procedure.5. Where appropriate, the European Investment Bank will take part, as an observer, in the work of the Association Council.Article 106 The Association Council shall, for the purpose of attaining the objectives of this Agreement, have the power to take decisions in the cases provided for therein. The decisions taken shall be binding on the Parties which shall take the measures necessary to implement the decisions taken. The Association Council may also make appropriate recommendations.It shall draw up its decisions and recommendations by agreement between the two Parties.Article 107 1. Each of the two Parties may refer to the Association Council any dispute relating to the application or interpretation of the Agreement.2. The Association Council may settle the dispute by means of a decision.3. Each Party shall be bound to take the measures involved in carrying out the decision referred to in paragraph 2.4. In the event of it not being possible to settle the dispute in accordance with paragraph 2, either Party may notify the other of the appointment of an arbitrator; the other Party must then appoint a second arbitrator within two months. For the application of this procedure, the Community and the Member States shall be deemed to be one Party to the dispute.The Association Council shall appoint a third arbitrator.The arbitrators' decisions shall be taken by majority vote.Each Party to the dispute must take the steps required to implement the decision of the arbitrators.Article 108 1. The Association Council shall be assisted in the performance of its duties by an Association Committee composed of representatives of the members of the Council of the European Communities and of members of the Commission of the European Communities on the one hand and of representatives of the Government of the Czech Republic on the other, normally at senior civil servant level.In its rules of procedure the Association Council shall determine the duties of the Association Committee, which shall include the preparation of meetings of the Association Council and how the Committee shall function.2. The Association Council may delegate to the Association Committee any of its powers. In this event the Association Committee shall take its decisions in accordance with the conditions laid down in Article 106.Article 109 The Association Council may decide to set up any other special committee or body that can assist it in carrying out its duties.In its rules of procedure, the Association Council shall determine the composition and duties of such committees or bodies and how they shall function.Article 110 An Association Parliamentary Committee is hereby established. It shall be a forum for members of the Czech Republic Parliament and the European Parliament to meet and exchange views. It shall meet at intervals which it shall itself determine.Article 111 1. The Association Parliamentary Committee shall consist of members of the European Parliament, on the one hand, and of members of the Czech Republic Parliament, on the other.2. The Association Parliamentary Committee shall establish its rules of procedure.3. The Association Parliamentary Committee shall be presided each in turn by the European Parliament and the Czech Republic Parliament, in accordance with the provisions to be laid down in its rules of procedure.Article 112 The Association Parliamentary Committee may request relevant information regarding the implementation of this Agreement from the Association Council, which shall then supply the Committee with the requested information.The Association Parliamentary Committee shall be informed of the decisions of the Association Council.The Association Parliamentary Committee may make recommendations to the Association Council.Article 113 Within the scope of this Agreement, each Party undertakes to ensure that natural and legal persons of the other Party have access free of discrimination in relation to its own nationals to the competent courts and administrative organs of the Parties to defend their individual rights and their property rights, including those concerning intellectual, industrial and commercial property.Article 114 Nothing in this Agreement shall prevent a Contracting Party from taking any measures:(a) which it considers necessary to prevent the disclosure of information contrary to its essential security interests;(b) which relate to the production of, or trade in, arms, munitions or war materials or to research, development or production indispensable for defence purposes, provided that such measures do not impair the conditions of competition in respect of products not intended for specifically military purposes;(c) which it considers essential to its own security in the event of serious internal disturbances affecting the maintenance of law and order, in time of war or serious international tension constituting threat of war or in order to carry out obligations it has accepted for the purpose of maintaining peace and international security.Article 115 1. In the fields covered by this Agreement and without prejudice to any special provisions contained therein:- the arrangements applied by the Czech Republic in respect of the Community shall not give rise to any discrimination between the Member States, their nationals, or their companies or firms,- the arrangements applied by the Community in respect of the Czech Republic shall not give rise to any discrimination between Czech Republic nationals or its companies or firms.2. The provisions of paragraph 1 are without prejudice to the right of the Contracting Parties to apply the relevant provisions of their fiscal legislation to taxpayers who are not in identical situations as regards their place of residence.Article 116 Products originating in the Czech Republic shall not enjoy more favourable treatment when imported into the Community than that applied by Member States among themselves.The treatment granted to the Czech Republic under Title IV and Chapter I of Title V shall not be more favourable than that accorded by Member States among themselves.Article 117 1. The Parties shall take any general or specific measures required to fulfil their obligations under this Agreement. They shall see to it that the objectives set out in this Agreement are attained.2. If either Party considers that the other Party has failed to fulfil an obligation under this Agreement, it may take appropriate measures. Before so doing, except in cases of special urgency, it shall supply the Association Council with all relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties.In the selection of measures, priority must be given to those which least disturb the functioning of this Agreement. These measures shall be notified immediately to the Association Council and shall be the subject of consultations within the Association Council if the other Party so requests.Article 118 This Agreement shall not, until equivalent rights for individuals and economic operators have been achieved under this Agreement, affect rights assured to them through existing agreements binding one or more Member States, on the one hand, and the Czech Republic, on the other.Article 119 Protocols 1, 2, 3, 4, 5, 6, 7 and 8 and Annexes I to XVII shall form an integral part of this Agreement.Article 120 This Agreement is concluded for an unlimited period.Either Party may denounce this Agreement by notifying the other Party. This Agreement shall cease to apply six months after the date of such notification.Article 121 This Agreement shall apply, on the one hand, to the territories in which the Treaties establishing the European Economic Community, the European Atomic Energy Community, and the European Coal and Steel Community are applied and under the conditions laid down in those Treaties and, on the other hand, to the territory of the Czech Republic.Article 122 This Agreement is drawn up in duplicate in the Danish, Dutch, English, French, German, Italian, Spanish, Greek, Portuguese and Czech languages, each of these texts being equally authentic.Article 123 This Agreement will be approved by the Contracting Parties in accordance with their own procedures.This Agreement shall enter into force on the first day of the second month following the date on which the Contracting Parties notify each other that the procedures referred to in the first paragraph have been completed.Upon its entry into force, this Agreement shall replace the Agreement between the European Economic Community, the European Atomic Energy Community and the Czech and Slovak Federal Republic on trade, economic and commercial cooperation signed in Brussels on 7 May 1990, and the Protocol between the European Coal and Steel Community and the Czech and Slovak Federal Republic initialled in Brussels on 28 June 1991, before the entry into force hereof.Article 124 1. In view of the fact that provisions equivalent to those of certain parts of the Agreement and thus of the Europe Agreement signed between the Community and its Member States on 16 December 1991 and the Czech and Slovak Federal Republic, in particular those relating to the movements of goods, were put into effect since 1 March 1992 by means of an Interim Agreement on trade and trade related measures between the Community and the Czech and Slovak Federal Republic signed on 16 December 1991, as amended by the Supplementary Protocols between the Community and each of the Czech Republic and the Slovak Republic, the Parties agree that in such circumstances for the purposes of Title III, Articles 64, 66 and 67 of the Agreement and Protocols 1 (with the exception of its Article 3), 2, 3, 4 and 5 and 6, 'date of entry into force of the Agreement` shall mean:- 1 March 1992 in relation to obligations taking effect on the date of entry into force of the Agreement, and- 1 January 1992 in relation to obligations taking effect after the date of entry into force by reference to the date of entry into force.2. In the case of entry into force of the Agreement after 1 January in any year, the provisions of Protocol 7 shall apply.En fe de lo cual, los plenipotenciarios abajo firmantes suscriben el presente Acuerdo.Til bekræftelse heraf har undertegnede befuldmægtigede underskrevet denne aftale.Zu Urkund dessen haben die unterzeichneten Bevollmächtigten ihre Unterschriften unter dieses Abkommen gesetzt.Åéò ðßóôùóç ôùí áíùôÝñù, ïé õðïãåãñáììÝíïé ðëçñåîïýóéïé Ýèåóáí ôéò õðïãñáöÝò ôïõò óôçí ðáñïýóá óõìöùíßá.In witness whereof the undersigned Plenipotentiaries have signed this Agreement.En foi de quoi, les plénipotentiaires soussignés ont apposé leurs signatures au bas du présent accord.In fede di che, i plenipotenziari sottoscritti hanno apposto le loro firme in calce al presente accordo.Ten blijke waarvan de ondergetekende gevolmachtigden hun handtekening onder deze Overeenkomst hebben gesteld.Em fé do que, os plenipotenciários abaixo assinados apuseram as suas assinaturas no final do presente acordo.Na d°ukaz  Oceho Oz ni Oze podepsaní zplnomocn Oeni zástupci podepsali tuto dohodu.Hecho en Luxemburgo, el cuatro de octubre de mil novecientos noventa y tres.Udfærdiget i Luxembourg, den fjerde oktober nitten hundrede og treoghalvfems.Geschehen zu Luxemburg am vierten Oktober neunzehnhundertdreiundneunzig.¸ãéíå óôï Ëïõîåìâïýñãï, óôéò ôÝóóåñéò Ïêôùâñßïõ ÷ßëéá åííéáêüóéá åííåíÞíôá ôñßá.Done at Luxembourg on the fourth day of October in the year one thousand nine hundred and ninety-three.Fait à Luxembourg, le quatre octobre mil neuf cent quatre-vingt-treize.Fatto a Lussemburgo, addì quattro ottobre millenovecentonovantatré.Gedaan te Luxemburg, de vierde oktober negentienhonderd drieënnegentig.Feito em Luxemburgo, em quatro de Outubro de mil novecentos e noventa e três.Dáno v Lucemburku  Octvrtého ódne m Oesíce  Orijna roku tisíc dev Oet set devadesát t Ori.Pour le Royaume de BelgiqueVoor het Koninkrijk België>REFERENCE TO A FILM>På Kongeriget Danmarks vegne>REFERENCE TO A FILM>Für die Bundesrepublik Deutschland>REFERENCE TO A FILM>Ãéá ôçí ÅëëçíéêÞ Äçìïêñáôßá>REFERENCE TO A FILM>Por el Reino de España>REFERENCE TO A FILM>Pour la République française>REFERENCE TO A FILM>For IrelandThar cheann Na hÉireann>REFERENCE TO A FILM>Per la Repubblica italiana>REFERENCE TO A FILM>Pour le Grand-Duché de Luxembourg>REFERENCE TO A FILM>Voor het Koninkrijk der Nederlanden>REFERENCE TO A FILM>Pela República Portuguesa>REFERENCE TO A FILM>For the United Kingdom of Great Britain and Northern Ireland>REFERENCE TO A FILM>Por el Consejo y la Comisión de las Comunidades EuropeasFor Rådet og Kommissionen for De Europæiske FællesskaberFür den Rat und die Kommission der Europäischen GemeinschaftenÃéá ôï Óõìâïýëéï êáé ôçí ÅðéôñïðÞ ôùí Åõñùðáúêþí ÊïéíïôÞôùíFor the Council and the Commission of the European CommunitiesPour le Conseil et la Commission des Communautés européennesPer il Consiglio e la Commissione delle Comunità europeeVoor de Raad en de Commissie van de Europese GemeenschappenPelo Conselho e pela Comissão das Comunidades Europeias>REFERENCE TO A FILM>Za  OCeskou republiku>REFERENCE TO A FILM>LIST OF ANNEXES >TABLE>ANNEX I List of products referred to in Articles 9 and 19 of the Agreement >TABLE>ANNEX II List of products referred to in Article 10 (2) CN code 19937202 21 107202 21 907202 29 00ANNEX III List of products referred to in Article 10 (3) >TABLE>ANNEX IV List of products referred to in Article 11 (1) 2501 002513 212520 202522 102522 202522 302703 002707 102707 202707 302707 402707 502707 602707 912711 122711 132711 142711 192712 902713 902713 902715 002803 002804 802806 102809 202811 212811 292816 102816 202816 302818 202818 302822 002824 102824 202824 902827 372829 112830 302832 102832 202832 302833 112833 222833 232833 292833 302836 202836 402836 602836 912836 922840 202841 302841 402841 902843 292844 102844 302846 102846 902847 002849 202851 002903 212905 172905 222905 292906 112906 122906 142906 192906 212906 292907 122907 132907 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116704 196704 206704 906804 106804 216804 226804 236804 306805 106805 306806 106806 206806 906811 306812 206814 106814 906815 206901 006905 106905 906906 007001 007002 107002 207002 317002 327018 107101 107101 217101 227102 217102 297102 317102 397103 107103 917103 997104 107106 927107 007108 137108 207109 007110 197110 297110 397110 497111 007116 107116 207201 107201 207201 307201 407203 107203 907204 507205 217205 297505 117505 127505 217505 227506 107506 207507 117507 127507 207606 927609 007613 007614 107614 907801 107801 917801 997802 007804 117804 197906 008003 008004 008005 108007 008101 108101 928101 938101 998102 108102 928102 938102 998104 308104 908105 908107 908108 908109 908112 118112 198112 408112 998113 008201 208201 608201 908202 108202 208202 318202 328202 408202 918202 998203 208203 308203 408205 308206 008208 108208 208208 308208 408208 908211 108211 918211 948213 008214 108311 108311 308401 108401 308401 408405 108405 908406 118406 198406 908411 118411 128411 218411 228411 818411 828411 918411 998412 108412 318412 398412 808416 108416 208416 308416 908418 508418 618418 698419 118421 118421 128421 198421 218421 228421 298421 398421 918421 998422 208422 308422 408422 908423 908432 908433 908434 108434 208434 908435 908436 918436 998438 108438 208438 408438 508438 608440 108440 908441 108441 208441 308441 408441 808441 908442 108442 208442 308442 408442 508443 298443 408443 508443 608443 908444 008445 118445 128445 138445 198445 908447 908448 118448 328448 338448 398448 418448 428448 498448 518448 598449 008450 908453 108453 208453 908455 308456 208456 308456 908459 398460 318460 398461 208461 308461 908463 208463 308463 908464 108467 118467 198467 818467 898467 918467 928467 998470 308470 408470 508470 908472 108473 108473 408476 118476 198476 908477 908478 108478 908479 908480 718480 798483 908484 108484 908485 108485 908505 208505 308506 908508 108508 208508 808508 908509 208509 308509 908510 908516 908517 208517 908518 308519 218519 298519 318519 398519 408519 918519 998520 108520 208520 318520 398520 908521 108521 908522 108523 118523 128523 138523 208523 908524 108524 218524 228524 238524 908525 308526 108526 918527 118527 198527 218527 298527 318527 328527 398527 908529 108529 908533 108533 218533 298533 318533 398533 408533 908539 108539 908540 118540 128540 208540 308540 418540 428540 498540 818540 898540 918540 998541 108541 218541 298541 308541 408541 508541 608541 908543 108543 208543 308543 908544 708604 008609 008708 298708 608708 708708 808708 918708 928708 998710 008802 118802 128802 508803 308908 009001 109001 209001 309001 409001 509001 909003 119003 199003 909004 109004 909005 109005 809005 909006 109006 209006 309006 409006 519006 529006 539006 599006 619006 629006 699006 919006 999007 119007 199007 219007 919007 929008 109008 209008 309008 409008 909009 909010 909011 109011 209011 809011 909012 109012 909013 209013 809013 909014 109014 809014 909015 209015 309015 409015 809015 909017 109017 209017 909018 119018 199018 329018 399018 509018 909019 109020 009021 119021 199021 219021 299021 309021 409021 509021 909022 199022 219022 299022 309022 909025 119025 199025 809025 909026 109026 209026 809026 909027 109027 309027 409027 509027 809028 209028 909029 209029 909030 109030 209030 909031 409031 809031 909032 109032 209032 819032 909033 009101 119101 129101 199101 219101 299101 919101 999102 119102 129102 199102 219102 299102 919102 999103 109104 009105 119105 199105 219105 299105 919105 999106 109107 009109 119109 199109 909110 119110 129110 199110 909111 109111 209111 809111 909112 109112 809112 909113 109113 209113 909114 109114 209114 309114 409114 909202 109202 909203 009204 109204 209205 109205 909206 009209 109209 209209 939209 949209 999301 009303 109303 909305 109305 219305 299305 909306 309306 909307 009403 709405 919507 209601 109602 009603 109603 409604 009608 919609 109609 209611 009614 109614 209614 909615 119615 199616 10ANNEX V List of products referred to in Article 11 (2) 2505 102519 902520 102523 102523 212523 292523 302523 902620 202707 992708 102708 202712 102712 202714 902801 102804 102804 212804 292804 302804 402804 502804 612804 692806 202807 002808 002811 112811 192811 222812 102812 902815 122815 202815 302818 102819 102819 902820 102820 902821 102821 202823 002825 102825 202825 302825 402825 502825 602825 702825 802826 112826 122826 192826 202826 302826 902827 102827 202827 322827 332827 342827 352827 362827 382827 392827 412827 492827 512827 592827 602828 102828 902829 192829 902830 102830 202830 902831 102831 902833 192833 212833 242833 252833 262833 272833 402834 102834 212834 222834 292835 102835 212835 222835 232835 242835 252835 262835 292835 392836 102836 302836 502836 702836 932836 992837 112837 192838 002839 112839 192839 202839 902840 112840 192840 302841 102841 202841 502841 602841 702842 102842 902843 102843 212843 302843 902844 202844 402844 502845 102845 902848 102848 902849 902850 002901 102901 212901 222901 232901 242901 292902 192902 202902 302902 412902 422902 432902 442902 502902 702902 902903 112903 122903 132903 152903 162903 192903 222903 232903 292903 302903 512903 592903 612903 692904 102904 202904 902905 122905 162905 192905 212905 312905 322905 392905 412905 422905 432905 442905 492905 502906 132907 152907 222907 232907 292907 302908 102908 202909 112909 192909 202909 302909 412909 422909 432909 442909 492909 502909 602910 102910 202910 302910 902912 112912 132912 192912 212912 302912 412912 422912 502912 602913 002914 192914 222914 412914 492914 502914 612914 692914 702915 112915 122915 132915 212915 232915 242915 292915 352915 392915 402915 502915 602915 702915 902916 132916 142916 152916 192916 202916 312916 322916 332916 392917 112917 132917 192917 202917 312917 322917 332917 342917 362917 372917 392918 112918 122918 132918 152918 162918 172918 192918 212918 222918 232918 292918 302918 902919 002920 102920 902921 112921 122921 192921 212921 222921 292921 302921 422921 432921 442921 452921 492921 512921 592922 112922 122922 132922 192922 212922 222922 292922 302922 412922 422922 492922 502923 102923 202923 902924 102924 212924 292925 112925 192925 202926 202926 902927 002928 002929 902930 102930 202930 302930 402930 902931 002932 112932 122932 192932 292932 902933 112933 192933 212933 292933 312933 392933 402933 512933 592933 692933 712933 792933 902934 102934 202934 302934 902936 102936 272936 282936 292937 922939 102939 402939 502939 602939 902940 002941 102941 302942 003001 103001 203001 903003 203003 393003 403003 903004 103004 203004 313004 323004 393004 403004 503004 903005 103006 403006 603102 103102 293102 503104 303105 513202 103202 903204 113204 143204 153204 163204 173204 193204 203204 903205 003206 103206 203206 303206 413206 423206 433206 493206 503207 103207 203207 303208 103208 203208 903209 103209 903210 003211 003212 103212 903213 103213 903215 113215 193301 303302 103302 903303 003304 103304 203304 303304 913304 993305 103305 203305 303305 903306 103306 903307 103307 203307 303307 413307 493307 903401 113403 193404 103404 203404 903405 103405 203406 003407 003501 903503 003504 003505 103505 203506 103506 913506 993507 103507 903601 003604 903605 003701 103701 203701 303701 913701 993702 203703 103703 203703 903706 103706 903707 103707 903801 103801 203801 303802 903806 203806 303806 903808 403809 103809 913809 993810 103810 903811 113811 193811 213811 293811 903812 103812 303813 003814 003815 113815 123815 193815 903817 103817 203818 003819 003820 003821 003822 003823 203823 303823 403823 503823 603823 903901 103901 203901 303901 903902 103902 203902 303902 903903 113903 193903 303903 903904 213904 223904 303904 403905 113905 193905 203905 903906 903907 303907 503907 913907 993908 103908 903909 103909 203909 303909 403909 503910 003911 103911 903912 393913 103916 103916 203916 903917 103917 213917 223917 233917 293917 313917 323917 333917 393917 403918 103918 903919 103919 903920 103920 203920 303920 413920 423920 593920 613920 633920 693920 713920 793920 923920 933920 943920 993921 113921 123921 133921 143921 193921 903922 103922 203922 903923 103923 213923 293923 303923 403923 503923 903924 103924 903925 103925 203925 303925 903926 103926 203926 303926 403926 904002 494004 004008 114008 194008 214008 294009 104009 204009 304009 404011 304011 404011 504011 914011 994013 104013 204013 904015 114015 194015 904016 104016 914016 924016 934016 944016 954016 994017 004111 004201 004202 114202 124202 194202 214202 224202 294202 314202 324202 394202 914202 924202 994203 294205 004206 104303 104303 904304 004407 914407 924409 104409 204410 104410 904411 114411 194411 214411 294411 314411 394411 914411 994412 124412 194412 214412 294412 914412 994413 004414 004415 104415 204417 004418 304418 404419 004420 104420 904421 104421 904503 904601 204601 914601 994602 104602 904801 004802 204802 304803 004804 114804 194804 214804 294804 314804 394805 104805 304805 404806 104807 914807 994808 204808 304808 904809 104809 904810 114810 124810 214810 294810 314810 324810 394810 914810 994811 214811 294811 314811 394811 404811 904812 004813 104813 204813 904814 104814 204814 904815 004816 304816 904817 104817 204817 304818 204818 304818 404818 504818 904820 104821 104821 904823 114823 194823 304823 404823 514823 594823 604823 704823 904902 904903 004908 104908 904909 004910 004911 104911 914911 995003 105003 905006 005007 105007 205007 905106 105106 205110 005111 115111 195111 205111 305111 905112 115112 195112 205112 305112 905204 115204 195204 205205 115205 125205 135205 145205 155205 215205 225205 235205 245205 315205 325205 335205 345205 355205 415205 425205 435205 445206 115206 125206 135206 145206 155206 215206 225206 235206 245206 255206 315206 325206 335206 345206 355206 415206 425206 435206 445208 115208 125208 135208 195208 215208 225208 235208 295208 515208 525208 535208 595209 115209 125209 195209 215209 225209 295209 315209 395209 415209 435209 495209 515209 525209 595210 115210 125210 195210 215210 225210 295210 315210 325210 395210 415210 425210 495210 515210 525210 595211 115211 125211 195211 215211 225211 295211 315211 325211 395211 415211 435211 495211 515211 525211 595212 115212 125212 135212 145212 155212 215212 225212 235212 245212 255307 105307 205309 215309 295310 105310 905311 005401 105401 205402 105402 205402 315402 325402 335402 395402 415402 425402 435402 495402 515402 525402 595402 615402 625402 695403 105403 205403 315403 325403 335403 395403 415403 425403 495404 105404 905405 005407 105407 20except 5407 20 115407 305408 105408 325408 335408 345501 105501 205501 305501 905502 005503 105503 205503 305503 905504 105504 905506 105506 205506 305506 905507 005508 205509 115509 125509 215509 225509 315509 325509 415509 425509 515509 525509 535509 595509 615509 625509 695509 915509 925509 995510 115510 125510 205510 305510 905512 115512 195512 215512 295512 915512 995513 115513 125513 135513 195513 215513 225513 235513 295513 315513 325513 335513 395513 415513 425513 435513 495514 115514 125514 135514 195514 215514 225514 235514 295514 315514 325514 335514 395514 415514 425514 435514 495515 115515 125515 135515 195515 215515 225515 295515 915515 925515 995516 115516 125516 135516 145516 215516 225516 235516 245516 315516 325516 335516 345516 415516 425516 435516 445516 915516 925516 935516 945602 105602 215602 295602 905604 105604 205606 005607 105607 215607 295607 305608 115608 195608 905609 005701 105701 905702 105702 205702 315702 395702 415702 495702 515702 595702 915702 995704 105704 905801 105801 215801 225801 235801 245801 255801 265801 315801 325801 335801 345801 355801 365801 905802 115802 195802 205802 305803 105803 905804 105804 215804 295804 305805 005806 105806 315808 105808 905810 105810 915810 925810 995811 005901 105901 905902 105902 205903 105903 205903 905904 105904 915904 925905 005906 105906 915906 995907 005908 005909 006001 106001 216001 226001 296001 916001 926001 996002 106002 206002 306002 416002 426002 436002 496002 916002 926002 936002 996101 306101 906102 306103 126103 236103 296103 336103 396103 436103 496104 116104 196104 216104 316104 416104 516104 616106 10 006106 20 006106 90 106107 196110 106110 906111 306111 906112 206113 006114 106114 306114 906115 196116 106116 916116 926116 996117 106117 206117 906204 296204 396204 596205 10 006205 20 006205 30 006206 20 006206 30 006206 40 006206 906207 926208 116208 226208 296208 926208 996209 106209 206209 906210 206210 306210 506211 126211 316211 416211 426211 436211 496212 106212 206212 306213 106213 206213 906214 106214 206214 306214 406215 106215 206215 906217 106217 906301 106301 206301 306301 406301 906302 106302 406303 126303 196304 116304 916305 106305 31except 6305 31 91and 6305 31 996305 396305 906306 116306 126306 196306 216306 226306 296306 316306 396306 416306 496306 916306 996307 106307 206308 006403 116403 206403 306403 516403 596403 996404 116405 106406 106406 206406 916406 996502 006503 006504 006505 906506 106506 916506 926506 996601 106601 916601 996602 006603 106603 206603 906701 006702 106702 906801 006802 106802 216802 226802 236802 296802 916802 926802 936802 996803 006805 206807 106807 906808 006809 116809 196809 906810 116810 196810 206810 916810 996811 106811 206811 906812 106812 306812 406812 506812 606812 706812 906813 106813 906815 106815 916815 996902 106902 206902 906903 106903 206903 906904 106904 906907 106907 906908 106909 116909 196909 906910 106910 906912 006913 106913 906914 907002 397008 007009 107009 917009 927010 107010 907011 107011 907014 007015 107015 907016 107016 907017 107017 207017 907018 207018 907019 107019 207019 317019 327019 397019 907020 007115 907117 117117 197117 907202 507205 107206 107206 907207 117207 127207 197207 207211 197211 497211 907213 507217 317217 397218 107218 907219 117219 127219 137219 147219 217219 227219 237219 247219 317219 327219 337219 347219 357219 907220 117220 127220 207220 907221 007222 107222 207222 307222 407223 007224 107224 907225 207225 407225 507225 907226 107226 207226 917226 927226 997227 107227 207227 907228 107228 207228 307228 407228 507228 607228 707229 107229 207229 907304 907307 117307 197316 007318 217318 227318 237318 247319 107407 107407 227407 297408 117408 217408 297409 117409 197409 217409 297409 317409 397409 407409 907414 107414 907415 297416 007419 108201 108201 308201 408201 508203 108204 118204 128204 208205 108205 208205 408205 518205 598205 608205 708205 808205 908207 118207 128207 208207 308207 408207 508207 608207 708207 808207 908209 008210 008211 928211 938212 108212 208212 908214 208214 908301 108301 208301 308301 408301 508301 608301 708302 108302 208302 308302 418302 428302 498302 508302 608303 008304 008305 108305 208305 908306 108306 218306 298306 308307 108307 908308 108308 208308 908309 108309 908310 008311 208311 908401 208402 118402 128402 198402 208402 908403 108403 908404 108404 208404 908407 108407 218407 298407 318407 328407 338407 348407 908408 108408 208408 908409 108409 918409 998410 118410 128410 138410 908412 218412 298412 908413 118413 198413 208413 308413 408413 508413 608413 708413 818413 828413 918413 928414 108414 208414 308414 408414 518414 598414 608414 808414 908415 108415 818415 828415 838415 908417 108417 208417 808417 908418 108418 218418 228418 298418 308418 408418 918418 998419 198419 208419 318419 328419 398419 408419 508419 608419 818419 898419 908420 108420 918420 998421 238421 318422 118422 198423 108423 208423 308423 818423 828423 898424 108424 208424 308424 818424 898424 908425 118425 198425 208425 318425 398425 418425 428425 498426 118426 128426 198426 208426 308426 418426 498426 918426 998427 108427 208427 908428 108428 208428 318428 328428 338428 398428 408428 508428 608428 908429 118429 198429 208429 308429 408429 518429 528429 598430 108430 208430 318430 398430 418430 498430 508430 618430 628430 698431 108431 208431 318431 398431 418431 428431 438431 498432 108432 218432 298432 308432 408432 808433 108433 118433 198433 308433 408433 518433 528433 538433 598433 608435 108436 108436 298436 808437 108437 808437 908438 308438 808438 908439 108439 208439 308439 918439 998443 118443 128443 198443 218443 308445 208445 308445 408446 108446 218446 298446 308447 118447 128447 208448 198448 208448 318450 118450 128450 198450 208451 108451 218451 298451 308451 408451 508451 808451 908452 108452 218452 298452 308452 908453 808454 108454 208454 308454 908455 108455 218455 228455 908456 108457 108457 208457 308458 118458 198458 918458 998459 108459 218459 298459 318459 408459 518459 598459 618459 698459 708460 118460 198460 218460 298460 408460 908461 108461 408461 508462 108462 218462 298462 318462 398462 418462 498462 918462 998463 108464 208464 908465 108465 918465 928465 938465 948465 958466 108466 208466 308466 918466 928466 938466 948468 108468 208468 808468 908469 108469 218469 298469 318469 398470 108470 218470 298471 108471 208471 918471 928471 938471 998472 208472 308472 908473 218473 298473 308474 108474 208474 318474 328474 398474 808474 908477 108477 208477 308477 408477 518477 598477 808479 108479 208479 308479 408479 818479 828479 898480 108480 208480 308480 418480 498480 508480 608481 108481 208481 308481 408481 808481 908482 108482 208482 308482 508482 808483 108483 208483 308483 408483 508483 608501 108501 208501 318501 328501 338501 348501 408501 518501 528501 538501 618501 628501 638501 648502 118502 128502 138502 208502 308502 408503 008504 108504 218504 228504 238504 318504 328504 338504 348504 408504 508504 908505 118505 198505 908506 128506 138506 198506 208507 108507 208507 308507 408507 808507 908509 108509 408509 808510 108510 208511 108511 208511 308511 408511 508511 808511 908512 108512 208512 308512 408512 908513 108513 908514 108514 208514 308514 408514 908515 118515 198515 218515 298515 318515 398515 808515 908516 108516 218516 298516 318516 328516 338516 408516 508516 608516 718516 728516 798516 808517 108517 308517 408517 818517 828518 108518 218518 298518 408518 508518 908525 108525 208526 928528 108528 208530 108530 808530 908531 108531 208531 808531 908532 108532 218532 228532 238532 248532 258532 298532 308532 908534 008537 108537 208538 108538 908539 398539 408543 808544 118544 198544 208544 308544 418544 498544 518544 598544 608545 118545 198545 208545 908546 108546 908547 108547 208547 908548 008601 108601 208602 108602 908603 108603 908605 008606 108606 208606 308606 918606 928606 998607 118607 128607 198607 218607 298607 308607 918607 998608 008701 108701 208701 308701 908702 908703 108705 108705 208705 308705 408705 908706 008707 108707 908708 108708 218708 318708 398708 408708 508708 938708 948709 118709 198709 908711 108711 208711 308711 408711 508711 908712 008714 118714 198714 208714 918714 928714 938714 948714 958714 968714 998715 008716 108716 208716 318716 398716 408716 808716 908801 108801 908802 208802 308802 408803 108803 208803 908804 008805 108805 208901 108901 208901 308901 908902 008903 108903 918903 928903 998904 008905 108905 208905 908906 008907 108907 909002 119002 199002 209002 909007 299009 119009 129009 219009 229009 309010 109010 209010 309013 109014 209015 109016 009017 309017 809018 209018 319018 419018 499019 209022 119024 909025 209027 209027 909028 109028 309030 319030 399030 409030 819030 899031 109031 209031 309032 899103 909106 209106 909108 119108 129108 199108 209108 919108 999207 109207 909208 109208 909209 309209 919209 929302 009303 209303 309304 009306 109306 219306 299401 109401 209401 309401 409401 509401 619401 699401 719401 799401 809401 909402 109402 909403 109403 209403 809403 909404 109404 219404 299404 309404 909405 109405 209405 309405 409405 509405 609405 929405 999406 009501 009502 109502 919502 999503 109503 209503 309503 419503 499503 509503 609503 709503 809503 909504 109504 209504 309504 409504 909505 109505 909506 119506 129506 199506 219506 299506 319506 329506 399506 409506 519506 599506 619506 629506 699506 709506 919506 999507 109507 309507 909508 009601 909603 219603 299603 309603 509603 909605 009606 109606 219606 229606 299606 309607 119607 199607 209608 109608 209608 319608 399608 409608 509608 609608 999609 909610 009612 109612 209613 109613 209613 309613 809613 909615 909616 209617 009618 009701 90ANNEX VI List of products referred to in Article 11 (3) 2710 002710 002814 202817 002835 312837 202849 102902 112902 602903 142903 622905 152907 112915 222915 312915 332915 342916 112916 122918 142921 413102 213102 403102 803102 903105 203105 593105 603207 403602 003802 103808 103808 203808 303904 103906 103915 103915 203915 303915 903920 513920 624010 104010 914011 104011 204012 104012 204012 904418 104418 204418 904707 104707 204707 304707 904802 404802 514802 524802 534804 414804 424804 494804 514804 524804 594805 214805 224805 234805 294805 504805 604805 704805 804806 204807 104808 104809 204811 104816 104816 204818 104819 104819 204819 304819 404819 504819 604820 204820 304820 404820 504820 904822 104822 904823 205208 315208 325208 335208 395208 415208 425208 435208 495209 325209 425211 425301 105301 215309 115309 195503 405603 005605 005607 415607 495607 505607 905702 325702 425702 525702 925703 105703 205703 305703 905705 005806 205806 325806 395806 405807 105807 905911 315911 325911 405911 906101 106101 206102 106102 206102 906103 116103 196103 216103 226103 316103 326103 426104 126104 136104 226104 236104 296104 326104 336104 396104 426104 436104 446104 496104 526104 536104 596104 626104 636104 696105 106105 206105 906106 90except 6106 90 106107 116107 126107 216107 226107 296107 916107 926107 996108 116108 196108 216108 226108 296108 316108 326108 396108 916108 926108 996109 106109 906110 206110 306111 206112 116112 126112 196112 316112 396112 416112 496114 206115 116115 126115 206115 916115 926115 936115 996201 116201 126201 136201 196201 916201 926201 936201 996202 116202 126202 136202 196202 916202 926202 936202 996203 116203 126203 196203 216203 226203 256203 296203 316203 326203 336203 396203 416203 426203 436203 496204 116204 126204 136204 196204 216204 226204 236204 316204 326204 336204 416204 426204 436204 446204 496204 516204 526204 536204 616204 626204 636204 696205 906207 116207 196207 216207 226207 296207 916207 996208 196208 216208 916209 306210 106210 406211 116211 206211 326211 336211 396302 216302 226302 296302 316302 326302 396302 526302 536302 596302 606302 916302 926302 936302 996303 116303 916303 926303 996304 196304 926304 936304 996305 206307 906401 106401 916401 926401 996402 196402 206402 306402 916402 996403 196403 406403 916404 196404 206405 206405 906908 906911 106911 906914 107003 117003 197003 207003 307004 107004 907005 107005 217005 297005 307006 007007 117007 197007 217007 297011 207012 007013 107013 217013 297013 317013 327013 397013 917013 997113 117113 197113 207114 117114 197114 207202 117202 197202 217202 297202 307202 417202 497202 707202 807202 917202 927202 997208 117208 127208 137208 147208 217208 227208 237208 247208 317208 327208 337208 347208 357208 417208 427208 437208 447208 457208 907209 117209 127209 137209 147209 217209 227209 237209 247209 347209 417209 427209 437209 447209 907210 117210 127210 207210 317210 397210 417210 497210 507210 607210 707210 907211 117211 127211 217211 227211 297211 307211 417212 107212 217212 297212 307212 407212 507212 607213 107213 207213 317213 397213 417213 497214 107214 207214 307214 407214 507214 607215 107215 207215 307215 407215 907216 107216 217216 227216 317216 327216 337216 407216 507216 607216 907217 117217 127217 137217 197217 217217 227217 237217 297217 327217 337225 107225 307228 807301 107301 207302 107302 207302 307302 407302 907303 007304 107304 207304 317304 397304 417304 497304 517304 597305 117305 127305 197305 207305 317305 397305 907306 107306 207306 307306 407306 507306 607306 907307 217307 227307 237307 297307 917307 927307 937307 997308 107308 207308 307308 407308 907309 007310 107310 217310 297311 007312 107312 907313 007314 117314 197314 207314 307314 417314 427314 497314 507315 117315 127315 197315 207315 817315 827315 897315 907317 007318 117318 127318 137318 147318 157318 167318 197318 297319 207319 307319 907320 107320 207320 907321 117321 127321 137321 817321 827321 837321 907322 117322 197322 907323 107323 917323 927323 937323 947323 997324 107324 217324 297324 907325 107325 917325 997326 117326 197326 207326 907406 107406 207407 217408 197408 227410 117410 127410 217410 227411 107411 217411 227411 297412 107412 207413 007415 107415 217415 317415 327415 397417 007418 107418 207419 917419 997504 007508 007603 107603 207604 107604 217604 297605 117605 197605 217605 297606 117606 127606 917607 117607 197607 207608 107608 207610 107610 907611 007612 107612 907615 107615 207616 107616 907803 007804 207805 007806 007903 107903 907904 007905 007907 107907 908005 208006 008215 108215 208215 918215 998436 218452 408465 968465 998506 118518 228519 108522 908535 108535 218535 298535 308535 408535 908536 108536 208536 308536 418536 498536 508536 618536 698536 908539 218539 228539 298539 318546 208702 108703 21 908703 22 908703 23 908703 24 908703 31 908703 32 908703 33 908703 908704 108704 218704 228704 238704 318704 328704 909023 009024 109024 809029 109201 109201 209201 909403 309403 409403 509403 60ANNEX VII List of products referred to in Article 11 (4) (New cars) 8703 21 108703 22 118703 22 198703 23 118703 23 198703 24 108703 31 108703 32 118703 32 198703 33 118703 33 19ANNEX VIII List of import licensing items >TABLE>ANNEX IX List of export licensing items (1) >TABLE>>TABLE>(1) The licences are intended for monitoring exports. Any restriction on grounds of difficulties in the Czech Republic market for a listed product shall be introduced by an ad hoc decision of the Czech Republic, of which the Community shall be informed immediately.ANNEX X >TABLE>ANNEX XIa List of products referred to in Article 21 (2) (1) The products listed in this Annex will be subject to a levy reduction of 50 %The quantities in tonnes set out for Year 3 shall be applicable from 1 July 1993 to 30 June 1994. The amounts imported prior to 1 July 1993 in excess of 50 % of the amount for Year 2 shall be deducted from the amount applicable for Year 3.The quantities in tonnes set out for Year 4 and 5 respectively shall be applicable from 1 July 1994 to 30 June 1995 and from 1 July 1995 to 30 June 1996 respectively.>TABLE>(1) Notwithstanding the rules for the interpretation of the combined nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes. Where ex CN codes are indicated the preferential scheme is to be determined by application of the CN code and corresponding description taken together.ANNEX XIb >TABLE>Annex to Annex XIb Minimum import price arrangement for certain soft fruit for processing 1. Minimum import prices are fixed for each marketing year for the following products:>TABLE>The minimum import prices are fixed by the Community in consultation with the Czech Republic, taking into consideration the price evolution, imported quantities and market development in the Community.2. The minimum import prices shall be respected in accordance with the following criteria:- during each three month period of the marketing year the average unit value for each product listed in paragraph 1, imported into the Community, shall not be lower than the minimum import price for that product,- during any period of two weeks the average unit value for each product listed in paragraph 1, imported in the Community shall not be lower than 90 % of the minimum import price for that product, in so far as the quantities imported during this period are not less than 4 % of the normal annual import.3. In case of non-respect of one of these criteria the Community may introduce measures ensuring that the minimum import price is respected for each consignment of the product concerned imported from the Czech Republic.ANNEX XII Arrangements for imports of live bovine animals into the Community 1. In case the number of animals fixed in the framework of the balance sheet arrangements foreseen in Regulation (EEC) No 805/68 are lower than a reference quantity, a global tariff quota equal to the difference between that reference quantity and the number of animals fixed under the balance sheet arrangements will be opened to imports from Hungary, Poland, the Czech Republic and the Slovak Republic. The reference quantity shall be:- 217 800 in 1992,- 237 600 in 1993,- 257 400 in 1994,- 277 200 in 1995,- 297 000 in 1996.The reduced levy applicable to animals under this quota will be fixed at 25 % of the full amount of levy.This arrangement shall apply to live bovine animals for fattening or for slaughter with a live weight of not less than 160 kg and not more than 300 kg.2. In case forecasts show that imports into the Community may exceed 425 000 head for any given year, the Community may take safeguard measures in accordance with Regulation (EEC) No 805/68, notwithstanding any other rights given under the Agreement.In this context, imports of live bovine animals not covered by the arrangements mentioned in paragraph 1 shall be limited to young calves with a live weight of not more than 80 kg. Such imports shall be subject to a management regime in order to ensure regular supply over the year in question.ANNEX XIII List of products referred to in Article 21 (4) (1) The quantities imported under the CN codes referred to in this Annex, with the exception of codes 0104 and 0204, will be subject to levy and duty reductions of 20 % from 1 March 1992, 40 % from 1 January 1993 and 60 % from 1 July 1993.The quantities in tonnes set out for Year 3 shall be applicable from 1 July 1993 to 30 June 1994. The amounts imported prior to 1 July 1993 in excess of 50 % of the amount for Year 2 shall be deducted from the amount applicable for Year 3.The quantities in tonnes set out for Year 4 and Year 5 respectively shall be applicable from 1 July 1994 to 30 June 1995 and from 1 July 1995 to 30 June 1996 respectively.>TABLE>4 0004 3504 7205 1205 4707,25,43,63,63,6(1) The conditions laid down in the 1982 Agreement between the European Economic Community and the CSFR on trade in the sheep and goat sector as supplemented by the 1990 Agreement apply with the exception of the products referred to in paragraph 1 and of the quantities referred to in paragraph 2 of the 1982 Agreement which shall be replaced by the products and the quantities in this Annex.(2) Excluding tenderloin presented alone.(3) In case the Czech Republic in a given year benefits from Community financial assistance in the framework of triangular operations, for export of this product/these products to the ex-USSR or countries other than Hungary, Poland and the Slovak Republic which benefit from a G-24 assistance, the quota for this product will be reduced by the amount of such assisted exports for the year in question. However, the quota cannot be less than 1 850 tonnes.(4) In case the Czech Republic in a given year benefits from Community financial assistance in the framework of triangular operations, for export of this product to the ex-USSR or countries other than Hungary, Poland and the Slovak Republic which benefit from G-24 assistance, the quota for this product will be reduced by the amount of such assisted exports for the year in question. However, the quota cannot be less than 265 tonnes.(5) In liquid yolk equivalent: 1 kg of dried yolk = 2,12 kg of liquid yolk.(6) In liquid equivalent: 1 kg of dried egg = 3,9 kg of liquid egg.(7) Notwithstanding the rules for the interpretation of the combined nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the coverage of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application of the CN code and corresponding description taken together.ANNEX XIV List of products referred to in Article 21 (4) (1) Imports into the Czech Republic of the following products originating in the Community shall be subject to the concessions set out below>TABLE>(1) Notwithstanding the rules for the interpretation of the combined nomenclature, the wording for the description of the products is to be considered as having no more than an indicative value, the preferential scheme being determined, within the context of this Annex, by the average of the CN codes. Where ex CN codes are indicated, the preferential scheme is to be determined by application of the CN code and corresponding description taken together.ANNEX XV >TABLE>ANNEX XVIa (Title IV, Chapter II) ESTABLISHMENT: FINANCIAL SERVICES Definitions A financial service is any service of a financial nature offered by a financial service provider of a party. Financial services include the following activities:A. All insurance and insurance-related services1. Direct insurance (including co-insurance).(i) life;(ii) non-life.2. Reinsurance and retrocession.3. Insurance intermediation, such as brokerage and agency.4. Services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services.B. Banking and other financial services (excluding insurance)1. Acceptance of deposits and other repayable funds from the public.2. Lending of all types, including, inter-alia, consumer credit, mortgage credit, factoring and financing of commercial transaction.3. Financial leasing.4. All payment and money transmission services, including credit charge and debit cards, travellers cheques and bankers drafts.5. Guarantees and commitments.6. Trading for own account of customers, whether on an exchange, in an over the counter market or otherwise, the following:(a) money market instruments (cheques, bills, certificates of deposits, etc.);(b) foreign exchange;(c) derivative products including, but not limited to, futures and options;(d) exchange rates and interest rate instruments, including products such as swaps, forward rate agreements, etc.;(e) transferable securities;(f) other negotiable instruments and financial assets, including bullion.7. Participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues.8. Money broking.9. Asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial depository and trust services.10. Settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments.11. Advisory intermediation and other auxiliary financial services on all the activities listed in points 1 to 10 above, including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy.12. Provision and transfer of financial information, and financial data processing and related software by providers of other financial services.Excluded from the definition of financial services are the following activities:(a) activities carried out by central banks or by any other public institution in pursuit of monetary and exchange rate policies;(b) activities conducted by central banks, government agencies or departments, or public institutions, for the account or with the guarantee of the government, except when those activities may be carried out by financial service providers in competition with such public entities;(c) activities forming part of a statutory system of social security or public retirement plans, except when those activities may be carried out by financial service providers in competition with public entities or private institutions.ANNEX XVIb (Article 45, paragraphs 1 (i) and 5 and Article 51, point (i)) ESTABLISHMENT: SECTORS RELATED TO THE END OF THE TRANSITIONAL PERIOD - armament and defence production,- steel production,- acquisition of State-owned assets under privatization process,- ownership, use, sale and rent of real property,- dealing and agency activities in real property and natural resources.ANNEX XVIc (Article 45 (5) and (6)) ESTABLISHMENT: EXCLUDED SECTORS - acquisition and sale of natural resources,- acquisition and sale of agricultural land and forests,- cultural and historic monuments and buildings.ANNEX XVII 1. Paragraph 2 of Article 67 concerns the following multilateral convention: Protocol relating to the Madrid Agreement concerning the International Registration of Marks (Madrid 1989).2. The Association Council may decide that paragraph 2 of Article 67 shall apply to other multilateral conventions.3. The Contracting Parties confirm the importance they attach to the obligations arising from the following multilateral conventions:- Berne Convention for the protection of literary and artistic works (Paris Act, 1971),- International Convention for the protection of performers, producers of phonograms and broadcasting organizations (Rome, 1961),- Paris Convention for the protection of industrial property (Stockholm Act, 1967 and amended in 1979),- Madrid Agreement concerning the international registration of marks (Stockholm Act, 1967 and amended in 1979),- Nice Agreement concerning the international classification of goods and services for the purposes of the registration of marks (Geneva 1977, amended 1979),- Budapest Treaty on the international recognition of the deposit of micro-organisms for the purposes of patent procedures (1977, modified in 1980),- Patent Cooperation Treaty (Washington 1970, amended 1979 and modified in 1984).4. For the purposes of paragraph 3 of this Annex and of the provisions of Article 76 (1) referring to intellectual property, Contracting Parties shall be the Czech Republic, the European Economic Community and the Member States, each in, as far as they are respectively competent for matters concerning industrial, intellectual and commercial property covered by these conventions or by Article 76 (1).5. The provisions of this Annex and those of Article 76 (1) referring to intellectual property are without prejudice to the competences of the European Economic Community and its Member States in matters of industrial, intellectual and commercial property.LIST OF PROTOCOLS >TABLE>PROTOCOL 1 on textile and clothing products to the Europe Agreement ('The Agreement`) Article 1 This Protocol applies to the textile and clothing products (hereinafter 'textile products`) listed in Annex I to the Additional Protocol to the Europe Agreement on trade in textile products between the European Economic Community and the Czech and Slovak Federal Republic, initialled on 17 December 1992 and applied since 1 January 1993, in so far as quantitative arrangements are concerned, and to Section XI (Chapters 50 to 63) of the combined nomenclature of the Community and, respectively, of the Czech Republic Customs Tariff in so far as tariff aspects are concerned.Article 2 1. Customs duties on imports applicable in the Community to textile products falling within Section XI (Chapters 50 to 63) of the combined nomenclature and originating in the Czech Republic in accordance with Protocol 4 of the Agreement shall be reduced by equal annual amounts leading to their elimination at the end of a period of six years starting from the entry into force of the Agreement, as follows:- upon the entry into force of the Agreement to five-sevenths of the basic duty,- at the start of the third year to four-sevenths of the basic duty,- at the start of the fourth year to three-sevenths of the basic duty,- at the start of the fifth year to two-sevenths of the basic duty,- at the start of the sixth year the remaining duties shall be eliminated.2. The rates of duty applied to direct imports into the Czech Republic of textile products falling within Section XI (Chapters 50 to 63) of the Czech Republic Customs Tariff and originating in the Community, in accordance with Protocol 4 of the Agreement, shall be progressively eliminated as provided for in Article 11 of the Agreement.3. The rates of duty applied to reimports into the Community of textile products falling within the categories listed in the Annex to Council Regulation (EEC) No 636/82 after processing, manufacturing or working in the Czech Republic shall be eliminated on the date of entry into force of the Agreement.4. The provisions of Articles 12 and 13 of the Agreement shall apply to trade in textile products between the Parties.Article 3 From 1 January 1993 the quantitative arrangements and other related issues regarding exports of textile products originating in the Czech Republic to the Community and originating in the Community to the Czech Republic shall be governed by the Additional Protocol to the Europe Agreement on trade in textile products between the European Economic Community and the Czech and Slovak Federal Republic initialled on 17 December 1992 and applied since 1 January 1993 including in particular Agreed Minute No 5 thereof as amended by the Additional Protocol on trade in textile products between the European Economic Community and the Czech Republic initialled on 17 September 1993.Article 4 From the entry into force of this Agreement no new quantitative restrictions or measures of equivalent effect shall be imposed except as provided for under the Agreement and its Protocols.PROTOCOL 2 on ECSC products to the Europe Agreement ('the Agreement`) Article 1 This Protocol applies to products listed in Annex 1 to the ECSC Treaty as identified in the Common Customs Tariff (1*).CHAPTER I ECSC Steel Products Article 2 (2) Customs duties on imports applicable in the Community on ECSC steel products originating in the Czech Republic shall be progressively abolished in accordance with the following timetable:1. each duty shall be reduced to 80 % on the basic duty on the date of entry into force of the Agreement;2. further reductions to 60 %, 40 %, 20 % and 0 % of the basic duty shall be made at the beginning of the second, third, fourth and fifth years respectively after the entry into force of the Agreement.Article 3 Customs duties applicable in the Czech Republic on imports of ECSC steel products originating in the Community shall be progressively abolished in accordance with the following timetable:1. for products listed in Annex I to this Protocol customs duties shall be abolished on the date of entry into force of the Agreement;2. for products listed in Annex II to this Protocol customs duties shall be reduced in accordance with Article 11 (2) of the Agreement;3. for products listed in Annex III to this Protocol customs duties shall be reduced in accordance with Article 11 (3) of the Agreement.Article 4 1. Quantitative restrictions on imports into the Community of ECSC steel products originating in the Czech Republic as well as measures having equivalent effect shall be abolished on the date of entry into force of the Agreement.2. Quantitative restrictions on imports into the Czech Republic of ECSC steel products originating in the Community, as well as measures having equivalent effect, shall be abolished on the date of entry into force of the Agreement.CHAPTER II ECSC Coal Products Article 5 Customs duties on imports applicable in the Community on ECSC coal products originating in the Czech Republic shall be abolished at the latest one year after the entry into force of the Agreement with the exception of those concerning the products and the regions described in Annex IV, which shall be abolished at the latest four years after the entry into force of the Agreement.Article 6 Coal products originating in the Community shall be imported into the Czech Republic free of customs duties from the date of entry into force of the Agreement.Article 7 1. Quantitative restrictions applicable in the Community to ECSC coal products originating in the Czech Republic shall be abolished at the latest one year after the entry into force of the Agreement, with the exception of those concerning the products and the regions described in Annex IV, which shall be abolished at the latest four years after the entry into force of the Agreement.2. Quantitative restrictions on imports applicable in the Czech Republic to coal products originating in the Community as well as measures having equivalent effect shall be abolished as provided for in Article 11 (5) of the Agreement.CHAPTER III Common provisions Article 8 1. The following are incompatible with the proper functioning of the Agreement, in so far as they may affect trade between the Community and the Czech Republic:(i) all agreements of cooperative or concentrative nature between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;(ii) abuse by one or more undertakings of a dominant position in the territories of the Community or of the Slovak Republic as a whole or in a substantial part thereof;(iii) public aid in any form whatsoever except derogations allowed pursuant to the ECSC Treaty.2. Any practices contrary to this Article shall be assessed on the basis of criteria arising from the application of the rules of Articles 65 and 66 of the Treaty establishing the ECSC, Article 85 of the EEC Treaty, and the rules on public aids, including the secondary legislation.3. The Association Council shall, within three years of the entry into force of the Agreement, adopt the necessary rules for the implementation of paragraphs 1 and 2.4. The Contracting Parties recognize that during the first five years after the entry into force of the Agreement, and by derogation to paragraph 1 (iii), the Czech Republic may exceptionally, as regards ECSC steel products, grant public aid for restructuring purposes provided that:- it leads to the viability of the benefiting firms under normal market conditions at the end of the restructuring period, and- the amount and intensity of such aid are strictly limited to what is absolutely necessary in order to restore such viability and are progressively reduced,- the restructuring programme is linked to a global rationalization and reduction of capacity in the Czech Republic.5. Each Party shall ensure transparency in the area of public aid by a full and continuous exchange of information to the other Party, including amount, intensity and purpose of the aid and detailed restructuring plan.6. If the Community or the Czech Republic considers that a particular practice is incompatible with the terms of paragraph 1 as amended by paragraph 4, and- is not adequately dealt with under the implementing rules referred to in paragraph 3, or- in the absence of such rules, and if such practice causes or threatens to cause prejudice to the interests of the other Party or material injury to its domestic industry,the affected Party may take appropriate measures if no solution is found through consultation which shall last a maximum of 30 working days. Such consultation shall be held in 30 days from the date the official request is introduced.In the case of practices incompatible with paragraph 1 (iii), such appropriate measures may only cover measures adopted in conformity with the procedures and under the conditions laid down by the General Agreement on Tariffs and Trade and any other relevant instrument negotiated under its auspices which are applicable between the Parties.Article 9 The provisions of Articles 12, 13 and 14 of the Agreement shall apply to trade between the parties in ECSC products.Article 10 The Parties agree that one of the special bodies established by the Association Council shall be a contact group which will discuss the implementation of this Protocol.(1*) OJ No L 247, 10. 9. 1990.Footnote 1 to Protocol 2From 1 June 1993 to 31 December 1995, subject to any subsequent modification, the provisions of Decisions 1/93(C) and 1/93(S) of the Joint Committee acting in accordance with the Interim Agreement on trade and trade related matters between the Community and the CSFR signed on 16 December 1991 as amended by the Supplementary Protocols between the Community and each of the Slovak Republic and the Czech Republic, will be applicable.ANNEX I List of products referred to in Article 3 (1) of the Protocol CN code7201 107201 207201 307201 407203 107203 907204 50ANNEX II List of products referred to in Article 3 (2) of the Protocol and the rates of duty appliable before the entry into force of Agreement >TABLE>ANNEX III List of products referred to in Article 3 (3) of the Protocol and the rates of duty applicable before the entry into force of the Agreement >TABLE>ANNEX IV Products and regions referred to as exceptions in Article 7 of the ECSC Protocol ProductsProducts listed under 'Coal Products` of Annex I to the ECSC Treaty as identified in the Common Customs Tariff (1).RegionsAll regions of:- Federal Republic of Germany,- Kingdom of Spain.(1) OJ No L 247, 10. 9. 1990.PROTOCOL 3 on trade between the Czech Republic and the Community in processed agricultural products not covered by Annex II to the EEC Treaty Article 1 In order to take account of cost differences between agricultural products incorporated into certain goods not covered by Article II of the Treaty establishing the European Community, the agreement shall not preclude:- the inclusion of an agricultural component in the customs levies charged on imports of the goods listed in the Annex,- the use of internal measures to offset the price differences resulting from agricultural policy,- the use of measures applying to exports.Article 2 1. The agricultural component of the customs levies referred to in Article 1 may take the form of a variable component, a flat-rate amount or an ad valorem duty.This component shall relate only to the quantities of agricultural raw materials incorporated.2. In determining the agricultural component to be levied, account shall be taken of the measures adopted pursuant to Article 21 of the Agreement.3. Measures relating to exports may not go beyond those applicable to any country which is not a Party to the Agreement.4. The non-agricultural component of the charges shall be progressively reduced in accordance with the procedure laid down in this Protocol.Article 3 1. The import levies applicable in the Community to the Czech Republic products listed in Table 1 shall be reduced according to the timetable set out in that table.2. The variable components listed in Table 1 may be converted into any of the other types of levy referred to in Article 2 (1).Article 4 1. The Czech Republic shall determine the agricultural component of the levies, in accordance with Articles 1 and 2, before 1 July 1994.The non-agricultural component of the levies shall be determined by subtracting from the levies applicable on 1 January 1992 the agricultural component referred to above.2. The agricultural component of the levies may not exceed the level of duty which would result from the application to the amounts of agricultural products considered to have been used of the import duties applicable in the Czech Republic to such products from the Community.3. The agricultural component of the levy may take one of the forms referred to in Article 2 (1).It may later be converted into another of the types of levy referred to in Article 2 (1), notably to take account of changes in the Czech Republic's agricultural policy.Article 5 1. Until 31 December 1994 the Czech Republic shall charge import duty on the goods listed in Table 2 of the Annex at the rates in force on 1 January 1992.2. From 1 January 1995, the non-agricultural component of the levies, calculated in conformity with Article 4, shall be reduced in accordance with the timetable set out in Table 2 of the Annex.The duties which will apply from 1 January 1995 shall be definitively determined by the Association Council in accordance with the provisions of Article 6 (1).Article 6 1. By 1 October 1994, the Czech Republic shall notify the Association Council referred to in Article 104 of the Agreement of the agricultural component of the levies concerned, calculated in accordance with Article 4. After consideration of these figures, the Joint Committee shall determine the definitive duties to apply from 1 January 1995.2. At the end of the first phase of the transitional period, the Association Council shall consider the possibility of replacing the agricultural component referred to in Article 2 (1) of this Protocol with compensatory amounts calculated on the basis of the quantities of agricultural products actually used, and the actual differences in the prices of basic agricultural products in each of the Parties. If this becomes the case, the Association Council shall draw up a list of the products to which the compensatory amounts will apply, and a list of basic agricultural products.3. The Association Council may also consider extending the list of goods covered by this Protocol. If it does so, it shall make the necessary provisions with regard to those goods.4. The Czech Republic and the Community shall inform each other of the prices of basic agricultural products used to calculate the price compensation referred to in Article 1 of this Protocol.ANNEX >TABLE>>TABLE>PROTOCOL 4 concerning the definition of the concept of 'originating products` and methods of administrative cooperation TITLE I DEFINITION OF THE CONCEPT OF 'ORIGINATING PRODUCTS` Article 1 Origin criteriaFor the purpose of implementing this Agreement and without prejudice to the provisions of Articles 2 and 3 of this Protocol, the following products shall be considered as:1. products originating in the Community:(a) products wholly obtained in the Community within the meaning of Article 4 of this Protocol;(b) products obtained in the Community incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in the Community within the meaning of Article 5 of this Protocol;2. products originating in the Czech Republic:(a) products wholly obtained in the Czech Republic within the meaning of Article 4 of this Protocol;(b) products obtained in the Czech Republic incorporating materials which have not been wholly obtained there, provided that such materials have undergone sufficient working or processing in the Czech Republic within the meaning of Article 5 of this Protocol.Article 2 Bilateral cumulation1. Notwithstanding Article 1 (1) (b), materials originating in the Czech Republic within the meaning of this Protocol shall be considered as materials originating in the Community and it shall not be necessary that such materials have undergone sufficient working or processing there, provided however that they have undergone working or processing going beyond that referred to in Article 5 (3) of this Protocol.2. Notwithstanding Article 1 (2) (b), materials originating in the Community within the meaning of this Protocol shall be considered as materials originating in the Czech Republic and it shall not be necessary that such materials have undergone sufficient working or processing there, provided however that they have undergone working or processing going beyond that referred to in Article 5 (3) of this Protocol.Article 3 Cumulation with materials originating in Poland, Hungary or in the Slovak Republic1. (a) Notwithstanding Article 1 (1) (b) and subject to the provisions of paragraphs 2 and 4, materials originating in Poland, Hungary or in the Slovak Republic within the meaning of Protocol 4 annexed to the Agreements between the Community and these countries shall be considered as originating in the Community and it shall not be necessary that such materials have undergone sufficient working or processing there, provided however that they have undergone working or processing going beyond that referred to in Article 5 (3) of this Protocol.(b) Notwithstanding Article 1 (2) (b) and subject to the provisions of paragraphs 2 and 4, materials originating in Poland, Hungary or in the Slovak Republic within the meaning of Protocol 4 annexed to the Agreements between the Community and these countries shall be considered as originating in the Czech Republic and it shall not be necessary that such materials have undergone sufficient working or processing there, provided however that they have undergone working or processing going beyond that referred to in Article 5 (3) of this Protocol.2. Products which have acquired originating status by virtue of paragraph 1 shall only continue to be considered as products originating in the Community or in the Czech Republic when the value added there exceeds the value of the materials used originating in Poland, Hungary or in the Slovak Republic. If this is not so, the products concerned shall be considered, for the purpose of implementing this Agreement or the Agreements between the Community and Poland, Hungary and the Slovak Republic, as originating in Poland, Hungary or the Slovak Republic, according to which of these countries accounts for the highest value of originating materials used.No account shall be taken in this allocation of materials originating in Poland, Hungary or in the Slovak Republic which have undergone sufficient working or processing in the Community or in the Czech Republic.3. 'Value added` shall be taken to be the ex-works price of the products minus the customs value of all the materials used which do not originate in the country or the group of countries where these products are obtained.4. For the purpose of this Article identical rules of origin to those in this Protocol shall be applied in trade between the Community and Poland, Hungary and the Slovak Republic, and between the Czech Republic and these three countries, and also between each of these three countries themselves.Article 4 Wholly obtained products1. Within the meaning of Article 1 (1) (a) and (2) (a), the following shall be considered as wholly obtained either in the Community or in the Czech Republic:(a) mineral products extracted from their soil or from their seabed;(b) vegetable products harvested there;(c) live animals born and raised there;(d) products from live animals raised there;(e) products obtained by hunting or fishing conducted there;(f) products of sea fishing and other products taken from the sea by their vessels;(g) products made aboard their factory ships exclusively from products referred to in subparagraph (f);(h) used articles collected there fit only for the recovery of raw materials;(i) waste and scrap resulting from manufacturing operations conducted there;(j) goods produced there exclusively from the products specified in subparagraphs (a) to (i).2. The term 'their vessels` in paragraph 1 (f) shall apply only to vessels:- which are registered or recorded in the Czech Republic or in a Member State of the Community,- which sail under the flag of the Czech Republic or of a Member State of the Community,- which are owned to an extent of at least 50 % by nationals of the Czech Republic or of Member States of the Community, or by a company with its head office in one of these States or in the Czech Republic, of which the manager or managers, chairman of the board of directors or the supervisory board, and the majority of the members of such boards are nationals of the Czech Republic or of Member States of the Community and of which, in addition, in the case of partnerships or limited companies, at least half the capital belongs to these States, to the Czech Republic, to their public bodies or to their nationals,- of which the master and officers are nationals of the Czech Republic or of Member States of the Community,- of which at least 75 % of the crew are nationals of the Czech Republic or of Member States of the Community.3. The terms 'the Czech Republic` and 'the Community` shall also cover the territorial waters which surround the Czech Republic and the Member States of the Community.Sea-going vessels, including factory ships on which the fish caught is worked or processed, shall be considered as part of the territory of the Community or of the Czech Republic provided that they satisfy the conditions set out in paragraph 2.Article 5 Sufficiently processed products1. 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 heading which is different from that in which all the non-originating materials used in its manufacture are classified, subject to paragraphs 2 and 3.The expressions 'chapters` and 'headings` used in this Protocol shall mean the chapters and the headings (four-digit codes) used in the nomenclature which makes up the harmonized commodity description and coding system (hereinafter referred to as 'the Harmonized System` or HS).The expression 'classified` shall refer to the classification of a product or material under a particular heading.2. For a product mentioned in columns 1 and 2 of the list in Annex II, the conditions set out in column 3 for the product concerned must be fulfilled instead of the rule in paragraph 1.(a) Where in the list in Annex II a percentage rule is applied in determining the originating status of a product obtained in the Community or in the Czech Republic, the value added by the working or processing shall correspond to the ex-works price of the product obtained, less the value of third-country materials imported into the Community or the Czech Republic.(b) The term 'value` in the list in Annex II shall mean the customs value at the time of the import of the non-originating materials used or, if this is not known and cannot be ascertained, the first ascertainable price paid for these materials in the territory concerned.Where the value of the originating materials used needs to be established, the provisions of the above subparagraph shall be applied mutatis mutandis.(c) The term 'ex-works price` in the list in Annex II shall mean the price paid for the product obtained to the manufacturer in whose undertaking the last working or processing is carried out, provided the price includes the value of all the materials used in manufacture, minus any internal taxes which are, or may be repaid when the product obtained is exported.(d) 'Customs value` shall be understood as the value determined in accordance with the agreement on implementation of Article VII of the General Agreement on Tariffs and Trade, established in Geneva on 12 April 1979.3. For the purpose of implementing paragraphs 1 and 2 the following shall be considered as insufficient working or processing to confer the status of originating products, whether or not there is a change of heading:(a) operations to ensure the preservation of products in good condition during transport and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations).(b) simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making-up of sets of articles), washing, painting, cutting up;(c) (i) changes of packaging and breaking up and assembly of consignments;(ii) simple placing in bottles, flasks, bags, cases, boxes, fixing on cards or boards etc., and all other simple packaging operations;(d) affixing marks, labels and other like distinguishing signs on products or their packaging;(e) simple mixing of products, whether or not of different kinds, where one or more components of the mixture do not meet the conditions laid down in this Protocol to enable them to be considered as originating either in the Community or in the Czech Republic;(f) simple assembly of parts of articles to constitute a complete article;(g) a combination of two or more operations specified in subparagraphs (a) to (f);(h) slaughter of animals.Article 6 Neutral elementsIn order to determine whether a product originates in the Community or in the Czech Republic it shall not be necessary to establish the origin of the electrical power, fuel, plant and equipment and machines and tools used to obtain such product nor of materials which do not enter into their final composition.Article 7 Accessories, spare parts and toolsAccessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle which are part of the normal equipment and included in the price thereof or are not separately invoiced are regarded as one with the piece of equipment, machine, apparatus or vehicle in question.Article 8 SetsSets, as defined in General Rule 3 of the Harmonized System, shall be regarded as originating when all component articles are originating products. Nevertheless, when a set is composed of originating and non-originating articles, the set as a whole shall be regarded as originating provided that the value of the non-originating articles does not exceed 15 % of ex-works price of the set.Article 9 Direct transport1. The preferential treatment provided for under this Agreement or, when the provisions of Article 3 (2) are applied, under the Agreements between the Community and Poland, Hungary and the Slovak Republic, applies only to products or materials which are transported between the territories of the Community and the Czech Republic without entering any other territory. However, originating goods constituting one single consignment which is not split up may be transported through territory other than that of the Community or the Czech Republic with, should the occasion arise, transhipment or temporary warehousing 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 not undergone operations other than unloading, reloading or any operation designed to preserve them in good condition.2. Evidence that the conditions referred to in paragraph 1 have been fulfilled shall be supplied to the responsible customs authorities by the production of:(a) a single transport document issued in the exporting country covering the passage through the country of transit;(b) or a certificate issued by the customs authorities of the country of transit:- giving an exact description of the goods,- stating the dates of unloading and reloading of the goods or of the embarkation or disembarkation, identifying the ships or other means of transport used, and- certifying the conditions under which the goods remained in the transit country;(c) or failing these, any substantiating documents.Article 10 Territorial requirementThe conditions set out in this Title relative to the acquisition of originating status must be fulfilled without interruption in the Community or in the Czech Republic except as provided for in Articles 2 and 3.If originating products exported from the Community or the Slovak Republic to another country are returned, except in so far as provided for in Articles 2 and 3, they must be considered as non-originating unless it can be demonstrated to the satisfaction of the customs authorities that:- the goods returned are the same goods as those exported, and- they have not undergone any operation beyond that necessary to preserve them in good condition while in that country.TITLE II PROOF OF ORIGIN Article 11 Movement certificate EUR.1Evidence of originating status of products, within the meaning of this Protocol, shall be given by a movement certificate EUR.1, a specimen of which appears in Annex III to this Protocol.Article 12 Normal procedure for the issue of certificates1. A movement certificate EUR.1 shall be issued only on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorized representative. Such application shall be made on a form, a specimen of which appears in Annex III to this Protocol, which shall be completed in accordance with this Protocol.Applications for movement certificates EUR.1 must be preserved for at least two years by the customs authorities of the exporting State.2. The exporter or his representative shall submit with 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.He shall undertake to submit, at the request of the appropriate authorities, any supplementary evidence they may require for the purpose of establishing the correctness of the originating status of the products eligible for preferential treatment and shall undertake to agree to any inspection of his accounts and to any check on the processes of the obtaining of the above products carried out by the said authorities.Exporters must keep for at least two years the supporting documents referred to in this paragraph.3. A movement certificate EUR.1 may be issued only where it can serve as the documentary evidence required for the purpose of implementing this Agreement or the Agreements between the Community and Poland, Hungary and the Slovak Republic.4. The movement certificate EUR.1 shall be issued by the customs authorities of a Member State of the European Economic Community if the goods to be exported can be considered as products originating in the Community within the meaning of Article 1 (1) or as products originating in Poland, Hungary or the Slovak Republic within the meaning of Article 3 (2) of this Protocol. The movement certificate EUR.1 shall be issued by the customs authorities of the Slovak Republic if the goods to be exported can be considered as products originating in the Czech Republic within the meaning of Article 1 (2) or as products originating in Poland, Hungary or the Slovak Republic within the meaning of Article 3 (2) of this Protocol.5. Where the cumulation provisions of Articles 2 or 3 are applied, the customs authorities of the Member States of the Community or the Czech Republic may issue movement certificates EUR.1 under the conditions laid down in this Protocol if the goods to be exported can be considered as originating products within the meaning of this Protocol and provided that the goods covered by the movement certificates EUR.1 are in the Community or in the Czech Republic.In these cases movement certificates EUR.1 shall be issued subject to the presentation of the proof of origin previously issued or made out. This proof of origin must be kept for at least two years by the customs authorities of the exporting State.6. Since the movement certificates EUR.1 constitutes the documentary evidence for the application of the preferential tariff arrangements laid down in the Agreement, it shall be the responsibility of the customs authorities of the exporting country to take any steps necessary to verify the origin of the goods and to check the other statements on the certificate.7. For the purpose of verifying whether the conditions for issuing EUR.1 certificates have been met, the customs authorities shall have the right to call for any documentary evidence or to carry out any check which they consider appropriate.8. It shall be the responsibility of the customs authorities 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 for the description of the products has been completed in such a manner as to exclude all possibility of fraudulent 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 empty space being crossed through.9. The date of issue of the movement certificate must be indicated in the part of the certificate reserved for the customs authorities.10. A movement certificate EUR.1 shall be issued by the customs authorities of the exporting State when the products to which it relates are exported. It shall be made available to the exporter as soon as actual export has been effected or ensured.Article 13 Long-term certificates EUR.11. Notwithstanding the provisions of Article 12 (10), a movement certificate EUR.1 may be issued by the customs authorities of the exporting State when only part of the products to which it relates is exported, in the case of a certificate covering a series of exportations of the same products from the same exporter to the same importer over a maximum period of one year from the date of issue, hereinafter referred to as an 'LT certificate`.2. LT certificates shall be issued, in accordance with the provisions of Article 12, at the discretion of the customs authorities of the exporting State and according to their own judgment of the need for this procedure, only where the originating status of the goods to be exported is expected to remain unchanged for the period of validity of the LT certificate. If any goods are no longer covered by the LT certificate, the exporter shall immediately inform the customs authorities who issued the certificate.3. Where the LT certificate procedure applies, the customs authorities of the exporting State may prescribe the use of EUR.1 certificates bearing a distinctive sign by which they may be identified.4. Box 11 'Customs endorsement` of the EUR.1 certificate must be endorsed as usual by the customs authorities of the exporting State.5. One of the following phrases shall be entered in box 7 of the EUR.1 certificate:'CERTIFICADO LT VÁLIDO HASTA EL . . .`'LT-CERTIFICAT GYLDIGT INDTIL . . .`'LT-CERTIFICATE GÜLTIG BIS . . .`'ÐÉÓÔÏÐÏÉÇÔÉÊÏÍ LT ÉÓ×ÕÏÍ ÌÅ×ÑÉ . . .`'LT-CERTIFICATE VALID UNTIL . . .`'CERTIFICAT LT VALABLE JUSQU'AU . . .`'CERTIFICATO LT VALIDO FINO AL . . .`'LT-CERTIFICAAT GELDIG TOT EN MET . . .`'CERTIFICADO LT VÁLIDO ATÉ . . .`'LT-SWÍADECTWO WAZNE DO . . .`'LT-BIZONYITVANY ÉRVÉNYES . . .-IG`'LT-OSV OED OCENÍ PLATNÉ DO . . .`'LT-OSVED OCENIE PLATNE DO . . .`(date indicated in Arabic numerals).6. Reference is not required in boxes 8 and 9 of the LT certificate to the marks and numbers and number and kind of packages and the gross weight (kg) or other measures (litres, m³, etc.). Box 8 must, however, contain a description and designation of the goods which is sufficiently precise to allow for their identification.7. Notwithstanding Article 18, the LT certificate must be submitted to the customs office of import at or before the first importation of any goods to which it relates. When the importer carries out the customs clearance at several customs offices in the State of importation, the customs authorities may require him to produce a copy of the LT certificate to all of those offices.8. Where an LT certificate has been submitted to the customs authorities, the evidence of the originating status of the imported goods shall, during the validity of the LT certificate, be given by invoices which satisfy the following conditions:(a) when an invoice includes both originating goods and non-originating goods, the exporter shall distinguish clearly between these two categories;(b) the exporter shall state on each invoice the number of the LT certificate which covers the goods and the date of expiry of the certificate and the names of the country or countries in which the goods originate.The statement on the invoice, made by the exporter, of the number of the LT certificate with the indication of the country of origin shall constitute a declaration that the goods fulfil the conditions laid down in this Protocol for the acquisition of preferential origin status.The customs authorities of the exporting State may require that the entries which, under the above provisions, must appear on the invoice, be supported by the manuscript signature followed by the name of the signatory in clear script;(c) the description and the designation of the goods on the invoice shall be in sufficient detail to show clearly that the goods are also listed on the LT certificate to which the invoice refers;(d) the invoices can be made out only for the goods exported during the period of validity of the relevant LT certificate. They may, however, be produced at the customs office of importation within four months of their being made out by the exporter.9. In the framework of the LT certificate procedure, invoices which satisfy the conditions of this Article may be made out and/or transmitted using telecommunications or electronic data-processing methods. Such invoices shall be accepted by the customs authorities of the importing State as evidence of the originating status of the goods imported in accordance with the procedures laid down by the customs authorities there.10. Should the customs authorities of the exporting State identify that a certificate and/or invoice issued under the provisions of this Article is invalid in relation to any goods supplied, they shall immediately notify the customs authorities of the importing State of the facts.11. The provisions of this Article shall not prejudice application of the rules of the Community, the Member States and the Czech Republic on customs formalities and the use of customs documents.Article 14 Issue of EUR.1 retrospectively1. In exceptional circumstances a movement certificate EUR.1 may also be issued after export of the products to which it relates if it was not issued at the time of export because of errors or involuntary omissions or special circumstances.2. For the implementation of paragraph 1, the exporter must in the written application:- indicate the place and date of export of the products to which the certificate relates,- certify that no movement certificate EUR.1 was issued at the time of export of the products in question, and state the reasons.3. The customs authorities may issue a movement certificate EUR.1 retrospectively only after verifying that the information supplied in the exporter's application agrees with that in the corresponding file.Certificates issued retrospectively must be endorsed with one of the following phrases:'NACHTRÄGLICH AUSGESTELLT`,'DELIVRE A POSTERIORI`,'RILASCIATO A POSTERIORI`,'AFGEGEVEN A POSTERIORI`,'ISSUED RETROSPECTIVELY`,'UDSTEDT EFTERFØLGENDE`,'ÅÊÄÏÈÅÍ ÅÊ ÔÙÍ ÕÓÔÅÑÙÍ`,'EXPEDIDO A POSTERIORI`,'EMITIDO A POSTERIORI`,'WYSTAWIONE RETROSPEKTYWNIE`,'KIADVA VISSZAMENÖLEGES HATÁLLYAL`,'VYSTAVENO DODATE OCN OE`,'VYSTAVENÉ DODATO OCNE`.4. The endorsement referred to in paragraph 3 shall be inserted in the 'Remarks` box on the movement certificate EUR.1.Article 15 Issue of a duplicate EUR.11. In the event of the theft, loss or destruction of a movement certificate EUR.1, the exporter may apply in writing to the customs authorities which issued it for a duplicate made out on the basis of the export documents in their possession.2. The duplicate issued in this way must be endorsed with one of the following words:'DUPLIKAT`,'DUPLICATA`,'DUPLICATO`,'DUPLICAAT`,'DUPLICATE`,'ÁÍÔÉÃÑÁÖÏ`,'DUPLICADO`,'SEGUNDA VIA`,'DUPLIKÁT`,'MÁSOLAT`.3. The endorsement referred to in paragraph 2 shall be inserted in the 'Remarks` box on the movement certificate EUR.1.4. The duplicate, which must bear the date of issue of the original movement certificate EUR.1, shall take effect as from that date.Article 16 Simplified procedure for the issue of certificates1. By way of derogation from Articles 12, 14 and 15 of this Protocol, a simplified procedure for the issue of EUR.1 movement certificates can be used in accordance with the following provisions.2. The customs authorities in the exporting State may authorize any exporter, hereinafter referred to as 'approved exporter`, making frequent shipments for which EUR.1 movement certificates may be issued and who offers, to the satisfaction of the competent authorities, all guarantees necessary to verify the originating status of the products, not to submit to the customs office of the exporting State at the time of export either the goods or the application for an EUR.1 certificate relating to those goods, for the purpose of obtaining an EUR.1 certificate under the conditions laid down in Article 12 of this Protocol.3. The authorization referred to in paragraph 2 shall stipulate, at the choice of the competent authorities, that box 11 'Customs endorsement` of the EUR.1 movement certificate must either:(a) be endorsed beforehand with the stamp of the competent customs office of the exporting State and the signature, which may be a facsimile, of an official of that office; or(b) be endorsed by the approved exporter with a special stamp which has been approved by the customs authorities of the exporting State and corresponds to the specimen given in Annex V to this Protocol. Such stamp may be pre-printed on the forms.4. In the cases referred to in paragraph 3 (a), one of the following phrases shall be entered in box 7 'Remarks` of the EUR.1 movement certificate:'PROCEDIMIENTO SIMPLIFICADO`,'FORENKLET PROCEDURE`,'VEREINFACHTES VERFAHREN`,'ÁÐËÐÕÓÔÅÕÌÅÍÇ ÄÉÁÄÉÊÁÓÉÁ`,'SIMPLIFIED PROCEDURE`,'PROCÉDURE SIMPLIFIÉE`,'PROCEDURA SIMPLIFICATA`,'VEREENVOUDIGDE PROCEDURE`,'PROCEDIMENTO SIMPLIFICADO`,'UPROSZCZONA PROCEDURA`,'EGYSZERUSÍTETT ELJÁRÁS`,'ZJEDNODU OSENÉ  ORÍZENÍ`,'ZJEDNODU OSENÉ KONANIE`.5. Box 11 'Customs endorsement` of the EUR.1 certificate shall be completed if necessary by the approved exporter.6. The approved exporter shall, if necessary, indicate in box 13 'Request for verification` of the EUR.1 certificate the name and address of the authority competent to verify such certificate.7. Where the simplified procedure is applied, the customs authorities of the exporting State may prescribe the use of EUR.1 certificates bearing a distinctive sign by which they may be identified.8. In the authorization referred to in paragraph 2 the competent authorities shall specify in particular:(a) the conditions under which the applications for EUR.1 certificates are to be made;(b) the conditions under which these applications are to be kept for at least two years;(c) in the cases referred to in paragraph 3 (b) the authority competent to carry out the subsequent verification referred to in Article 28 of this Protocol.9. The customs authorities of the exporting State may declare certain categories of goods ineligible for the special treatment provided for in paragraph 2.10. The customs authorities shall refuse the authorization referred to in paragraph 2 to exporters who do not offer all the guarantees which they consider necessary. The competent authorities may withdraw the authorization at any time. They must do so where the approved exporter no longer satisfies the conditions or no longer offers these guarantees.11. The approved exporter may be required to inform the competent authorities, in accordance with the rules which they lay down, of the goods to be dispatched by him, so that such authorities may make any verification they think necessary before the departure of the goods.12. The customs authorities of the exporting State may carry out any check on approved exporters which they consider necessary. Such exporters must allow this to be done.13. The provisions of this Article shall be without prejudice to the application of the rules of the Community, the Member States and the Czech Republic, concerning customs formalities and the use of customs documents.Article 17 Replacement of certificates1. It shall at any time be possible to replace one or more movement certificates EUR.1 by one or more other certificates provided that this is done by the customs office or other competent authorities responsible for controlling the goods.2. When products originating in the Community, the Czech Republic, the Slovak Republic, Poland or Hungary and imported into a free zone under cover of an EUR.1 certificate undergo treatment or processing, the authorities concerned must issue a new EUR.1 certificate at the exporter's request if the treatment or processing undergone is in conformity with the provisions of this Protocol.3. The replacement certificate shall be regarded as a definite movement certificate EUR.1 for the purposes of the application of this Protocol, including the provisions of this Article.4. The replacement certificate shall be issued on the basis of a written request from the re-exporter, after the authorities concerned have verified the information supplied in the applicant's request. The date and serial number of the original movement certificate EUR.1 shall be given in box 7.Article 18 Validity of certificates1. A movement certificate EUR.1 must be submitted, within four months of the date of issue by the customs authorities of the exporting State, to the customs office of the importing State where the products are entered.2. Movement certificates EUR.1 which are submitted to the customs authorities of the importing State after the final date of presentation specified in paragraph 1 may be accepted for the purpose of applying preferential treatment, where the failure to submit the certificates by the final date set is due to reasons of force majeure or exceptional circumstances.3. In other cases of belated presentation, the customs authorities of the importing State may accept the certificates where the products have been submitted to them before the said final date.Article 19 Exhibitions1. Products sent from the Community or the Czech Republic for exhibition in a country other than the Czech Republic or a Member State of the Community and sold after the exhibition for importation into the Czech Republic or the Community shall benefit on importation from the provisions of the Agreement on condition that the products meet the requirements of this Protocol entitling them to be recognized as originating in the Community or the Czech Republic provided that it is shown to the satisfaction of the customs authorities that:(a) an exporter has consigned these products from the Community or the Czech Republic to the country in which the exhibition is held and has exhibited them there;(b) the products have been sold or otherwise disposed of by that exporter to someone in the Community or the Czech Republic;(c) the products have been consigned during the exhibition or immediately thereafter to the Community or the Czech Republic in the state in which they were sent for exhibition;(d) the products have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition.2. A movement certificate EUR.1 must be produced to the customs authorities in the normal manner. The name and address of the exhibition must be indicated thereon. Where necessary, additional documentary evidence of the nature of the products and the conditions under which they have been exhibited may be required.3. Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organized for private purposes in shops or business premises with a view to the sale of foreign products, and during which the products remain under customs control.Article 20 Submission of certificatesMovement certificates EUR.1 shall be submitted to the customs authorities in the importing State in accordance with the procedures laid down by that State. The said authorities may require a translation of a certificate. They may also require the import declaration to be accompanied by a statement from the importer to the effect that the products meet the conditions required for the implementation of the Agreement.Article 21 Importation by instalmentsWithout prejudice to Article 5 (3) of this Protocol, where, at the request of the person declaring the goods at the customs, a dismantled or non-assembled article falling within Chapter 84 or 85 of the Harmonized System is imported by instalments on the conditions laid down by the competent authorities, it shall be considered to be a single article and a movement certificate may be submitted for the whole article upon import of the first instalment.Article 22 Preservation of certificatesMovement certificates EUR.1 shall be preserved by the customs authorities of the importing State in accordance with the rules in force in that State.Article 23 Form EUR.21. Notwithstanding Article 11, the evidence of originating status, within the meaning of this Protocol, for consignments containing only originating products and whose value does not exceed ECU 5 110 per consignment, may be given by a form EUR.2, a specimen of which appears in Annex IV to this Protocol.2. The form EUR.2 shall be completed and signed by the exporter or, under the exporter's responsibility, by his authorized representative in accordance with this Protocol.3. A form EUR.2 shall be completed for each consignment.4. The exporter who has issued the form EUR.2 shall submit at the request of the customs authorities of the exporting State all supporting documents concerning the use of this form.5. Articles 18, 20 and 22 shall apply mutatis mutandis to forms EUR.2.Article 24 DiscrepanciesThe discovery of slight discrepancies between the statements made in the movement certificate EUR.1 or in the form EUR.2 and those made in the documents submitted to the customs office for the purpose of carrying out the formalities for importing the products shall not ipso facto render the document null and void if it is duly established that it corresponds to the products submitted.Article 25 Exemptions from proof of origin1. Products sent as small packages from private persons to private persons or forming part of travellers' personal luggage shall be admitted as originating products without requiring the production of a movement certificate EUR.1 or the completion of form EUR.2, provided that such products are not imported by way of trade and have been declared as meeting the conditions required for the application of the agreement, and where there is no doubt as to the veracity of such declaration.2. Imports which are occasional and consist solely of products for the personal use of the recipients or travellers or their families shall not be considered as imports by way of trade if it is evident from the nature and quantity of the products that no commercial purpose is in view.Furthermore, the total value of these products must not exceed ECU 365 in the case of small packages or ECU 1 025 in the case of the contents of travellers' personal luggage.Article 26 Amounts expressed in ecu1. Amounts in the national currency of the exporting State equivalent to the amounts expressed in ecu shall be fixed by the exporting State and communicated to the other parties to this Agreement and to the Agreements between the Community and Poland, Hungary and the Slovak Republic. When the amounts are more than the corresponding amounts fixed by the importing State, the latter shall accept them if the goods are invoiced in the currency of the exporting State.If the goods are invoiced in the currency of another Member State of the Community or in that of the Czech Republic, the Slovak Republic, Poland or Hungary, the importing State shall recognize the amount notified by the country concerned.2. Up to and including 30 April 1993, the ecu, to be used in any given national currency shall be the equivalent in that national currency of the ecu as at 3 October 1990. For each successive period of two years, it shall be the equivalent in that national currency of the ecu as at the first working day in October in the year immediately preceding that two-year period.TITLE III ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION Article 27 Communication of stamps and addressesThe customs authorities of the Member States and of the Czech Republic shall provide each other, through the Commission of the European Communities, with specimen impressions of stamps used in their customs offices for the issue of EUR.1 certificates and with the addresses of the customs authorities responsible for issuing movement certificates EUR.1 and for verifying those certificates and forms EUR.2.Article 28 Verification of movement certificates EUR.1 and of forms EUR.21. Subsequent verification of movement certificates EUR.1 and of forms EUR.2 shall be carried out at random or whenever the customs authorities of the importing State have reasonable doubts as to the authenticity of the document or the accuracy of the information regarding the true origin of the products in question.2. For the purpose of the subsequent verification of movement certificates EUR.1, the customs authorities of the exporting State must keep copies of the certificates, as well as any export documents referring to them, for at least two years.3. In order to ensure the proper application of this Protocol, the Slovak Republic and the Member States of the Community shall assist each other, through their respective customs administrations, in checking the authenticity of movement certificates EUR.1, including those issued under Article 12 (5), and the forms EUR.2 and the accuracy of the information concerning the actual origin of the products concerned.4. For the purpose of implementing paragraph 1, the customs authorities of the importing State shall return the movement certificate EUR.1 or form EUR.2, or a photocopy thereof, to the customs authorities of the exporting State, giving, where appropriate, the reasons of form or substance for an enquiry.The relevant commercial documents or a copy thereof, shall be attached to the certificate EUR.1 or form EUR.2 and the customs authorities shall forward any information that has been obtained suggesting that the particulars given on the said certificate or the said form are inaccurate.5. If the customs authorities of the importing State decide to suspend execution of the provisions of the agreement while awaiting the results of the verification, they shall offer to release the products to the importer subject to any precautionary measures judged necessary.6. The customs authorities of the importing State shall be informed of the results of the verification as soon as possible. These results must be such as to make it possible to determine whether the disputed movement certificate EUR.1 or form EUR.2 apply to the products in question and whether those products can, in fact, qualify for the application of the preferential arrangements.If in cases of reasonable doubt there is no reply within 10 months of the date of the verification request, or if the reply does not contain sufficient information to determine the authenticity of the document in question or the real origin of the products, the requesting authorities shall refuse, except in the case of force majeure or exceptional circumstances, any benefit from the preferential treatment laid down in the Agreement concerned.7. Disputes which cannot be settled between the customs authorities of the importing State and those of the exporting State, or which raise a question as to the interpretation of this Protocol, shall be submitted to the Customs Cooperation Committee.8. In all cases the settlement of disputes between the importer and the customs authorities of the importing State shall be under the legislation of the said State.9. Where the verification procedure or any other available information appears to indicate that the provisions of this Protocol are being contravened, the Community or the Czech Republic shall on its own initiative or at the request of the other Party carry out appropriate enquiries or arrange for such enquiries to be carried out with due urgency to identify and prevent such contraventions, and for this purpose the Community or the Czech Republic may invite the participation of the other Party in these enquiries.10. Where the verification procedure or any other available information appears to indicate that the provisions of this Protocol are being contravened, the products would be accepted as originating products under this Protocol only after completion of such aspects of administrative cooperation set down in this Protocol which may have been activated, including in particular the verification procedure.Likewise, products would be refused treatment as originating products only after the completion of the verification procedure.Article 29 PenaltiesPenalties shall be imposed on any person who draws up, or causes to be drawn up, a document which contains incorrect particulars for the purpose of obtaining preferential treatment for products.Article 30 Free zonesThe Member States and the Czech Republic shall take all necessary steps to ensure that products traded under cover of a movement certificate EUR.1, which in the course of transport use a free zone situated in their territory, are not substituted by other goods and that they do not undergo handling other than normal operations designed to prevent their deterioration.TITLE IV CEUTA AND MELILLA Article 31 Application of the Protocol1. The term 'Community` used in this Protocol does not cover Ceuta or Melilla. The term 'products originating in the Community` does not cover products originating in these zones.2. This Protocol shall apply mutatis mutandis to products originating in Ceuta and Melilla, subject to particular conditions set out in Article 32.Article 32 Special conditions1. The following provisions shall apply instead of Article 1 and references to that Article shall apply mutatis mutandis to this Article.2. Providing they have been transported directly in accordance with the provisions of Article 9, the following shall be considered as:1. products originating in Ceuta and Melilla:(a) products wholly obtained in Ceuta and Melilla;(b) products obtained in Ceuta and Melilla incorporating materials which have not been wholly obtained there, provided that:(i) such materials have undergone sufficient working or processing within the meaning of Article 5 of this Protocol, or that(ii) such materials originate in the Czech Republic or the Community within the meaning of this Protocol provided, however, that they have undergone working or processing going beyond that referred to in Article 5 (3) of this Protocol;2. products originating in the Czech Republic:(a) products wholly obtained in the Czech Republic;(b) products obtained in the Czech Republic incorporating materials which have not been wholly obtained there, provided that:(i) such materials have undergone sufficient working or processing within the meaning of Article 5 of this Protocol, or that(ii) such materials originate in Ceuta and Melilla or the Community within the meaning of this Protocol provided, however, that they have undergone working or processing going beyond that referred to in Article 5 (3) of this Protocol.3. Ceuta and Melilla shall be considered as a single territory.4. The exporter or his authorized representative shall enter 'the Czech Republic` and 'Ceuta and Melilla` in box 2 of movement certificates EUR.1. In addition, in the case of products originating in Ceuta and Melilla, this shall be indicated in box 4 of movement certificates EUR.1.5. The Spanish customs authorities shall be responsible for the application of this Protocol in Ceuta and Melilla.TITLE V FINAL PROVISIONS Article 33 Amendments to the ProtocolThe Association Council shall examine at two-yearly intervals, or whenever the Czech Republic or the Community so request, the application of the provisions of this Protocol, with a view to making any necessary amendments or adaptations.Such examination shall take into account in particular the participation of the contracting parties in free trade zones or customs unions with third countries.Article 34 Customs Cooperation Committee1. A Customs Cooperation Committee shall be set up, charged with carrying out administrative cooperation with a view to the correct and uniform application of this Protocol and with carrying out any other task in the customs field which may be entrusted to it.2. The Committee shall be composed, on the one hand, of experts of the Member States and of officials of the departments of the Commission of the European Communities who are responsible for customs questions and, on the other hand, of experts nominated by the Czech Republic.Article 35 Petroleum productsThe products set out in Annex VI shall be temporarily excluded from the scope of this Protocol. Nevertheless, the arrangements regarding administrative cooperation shall apply, mutatis mutandis, to these products.Article 36 AnnexesThe Annexes to this Protocol shall form an integral part thereof.Article 37 Implementation of the ProtocolThe Community and the Czech Republic shall each take the steps necessary to implement this Protocol.Article 38 Arrangements with Poland, Hungary and the Slovak RepublicThe Contracting Parties shall take any measures necessary for the conclusion of arrangements with Poland, Hungary and the Slovak Republic enabling this Protocol to be applied. The Contracting Parties shall notify each other of measures taken to this effect.Article 39 Goods in transit or storageThe provisions of the Agreement may be applied to goods which comply with the provisions of this Protocol and which on the date of entry into force of the Agreement are either in transit or are in the Community or in the Czech Republic, in temporary storage in bonded warehouses or in free zones, subject to the submission to the customs authorities of the importing State, within four months of that date, of a certificate EUR.1 endorsed retrospectively by the competent authorities of the exporting State together with the documents showing that the goods have been transported directly.ANNEX I NOTES ForewordThese notes shall apply, where appropriate, to all manufactured products using non-originating materials, even if they are not subject to specific conditions contained in the list in Annex II but are subject instead to the change of heading rule set out in Article 5 (1).Note 11.1. 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 22.1. The term 'manufacture` covers any kind of working or processing including 'assembly` or specific operations. However, see Note 3.5 below.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 33.1. 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 5 (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.3.4. If a product made from non-originating materials which has acquired originating status during manufacture by virtue of the change of heading rule or its own list rule is used as a material in the process of manufacture of another product, then the rule applicable to the product in which it is incorporated does not apply to it.For example:An engine of heading No 8407, for which the rule states that the value of the non-originating materials which may be incorporated may not exceed 40 % of the ex-works price, is made from 'other alloy steel roughly shaped by forging` of heading No 7224.If this forging has been forged in the country concerned from a non-originating ingot then the forging has already acquired origin by virtue of the rule for heading No ex 7224 in the list. It can then count as originating in the value calculation for the engine regardless of whether it 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 5 (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 General Rule 3 for the interpretation of the Harmonized System, the unit of qualification shall be determined in respect of each item in the set: this provision is equally applicable to sets 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 44.1. 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 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.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-originating yarn is allowed for this class of article, it is not possible to start from non-woven cloth - even if non-woven cloths cannot normally be made from yarn. In such cases, the starting material would normally be at the stage before yarn - that is the fibre stage.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.Note 55.1. 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 headings Nos 5501 to 5507.Note 66.1. In the case of the products classified within 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 below).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, non-originating synthetic staple fibres that do not satisfy the origin rules (which require manufacture from chemical materials or textile pulp) may be used up to a weight of 10 % of the yarn.For example:A woollen fabric of heading No 5112 made from woollen yarn of heading No 5107 and synthetic yarn of staple fibres of heading No 5509 is a mixed fabric. Therefore synthetic yarn which does not satisfy the origin rules (which require manufacture from chemical materials or textile pulp) or woollen yarn that does not satisfy the origin rules (which require manufacture from natural fibres, not carded or combed or otherwise prepared for spinning) or a combination of the two may be used 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 from both artificial yarns and cotton yarns and with a jute backing is a mixed product because three basic textile materials are used. Thus, any 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 textile materials in the carpet. Thus, both the jute backing and/or the artificial yarns could be imported at that stage of manufacture, provided the weight conditions are met.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.Note 77.1. In the case of those textile products which are marked in the list by a footnote referring to this note, textile materials with the exception of linings and interlinings which do not satisfy the rule set out in the list in column 3 for the made up products concerned may be used provided that they are classified in a heading other than that of the product and that their value does not exceed 8 % of the ex-works price of the product.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-originating materials incorporated.ANNEX II >TABLE>ANNEX III MOVEMENT CERTIFICATES EUR.1 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 languages in which the Agreement is drawn up. Certificates shall be made out in one of these languages and in accordance with the provisions of the domestic law of the exporting State. If they are handwritten, they shall be completed in ink and in capital letters.2. Each certificate shall measure 210 × 297 mm; a tolerance of up to minus 5 mm or plus 8 mm in the length may be allowed. The paper used must be white, sized for writing, not containing mechanical pulp and weighing not less than 25 g/m². It shall have a printed green guilloche pattern background making any falsification by mechanical or chemical means apparent to the eye.3. The competent authorities of the Member States of the Community and of the Czech Republic 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.MOVEMENT CERTIFICATE>START OF GRAPHIC>1. Exporter (Name, full address, country)3. Consignee (Name, full address, country) (Optional)EUR.1 No A 000.000See notes overleaf before completing this form2. Certificate used in preferential trade between..........and..........(Insert appropriate countries, groups of countries or territories)4. Country, group of countries or territory in which the products are considered as originating5. Country, group of countries or territory of destination6. Transport details (Optional)7. Remarks8. Item number; Makes and numbers; Number and kind of packages (¹); Description of goods9. Grossweight (kg)or othermeasure(litres,m³, etc.)10. Invoices(Optional)11. CUSTOMS ENDORSEMENTDeclaration certifiedExport document (²)Form .......... No ....................Customs office ..........Issuing country or territory ..............................Date ..........Stamp12. DECLARATION BY THE EXPORTERI, the undersigned, declare that the goods described above meet the conditions required for the issue of this certificate.Place and date .....................(Signature)..........(Signature)(¹) If goods are not packed, indicate number of articles or state 'in bulk` as appropriate.(²) Complete only where the regulations of the exporting country or territory require.13. REQUEST FOR VERIFICATION, to:14. RESULT OF VERIFICATIONVerification carried out shows that this certificate (¹)Owas issued by the customs office indicated and that the information contained therein is accurateOdoes not meet the requirements as to authenticity and accuracy (see remarks appended)Verification of the authenticity and accuracy of this certificate is requested...........................................(Place and date)............................................(Place and date)Stamp Stamp ..........(Signature)..........(Signature) (¹) Insert X in the appropriate box.NOTES1. Certificates must not contain erasures or words written over one another. Any alterations must be made by deleting the incorrect particulars and adding any necessary corrections. Any such alteration must be initialled by the person who completed the certificate and endorsed by the customs authorities of the issuing country or territory.2. No spaces must be left between the items entered on the certificate and each item must be preceded by an item number. A horizontal line must be drawn immediately below the last item. Any unused space must be struck through in such a manner as to make any later additions impossible.3. Goods must be described in accordance with commercial practice and with sufficient detail to enable them to be identified.>END OF GRAPHIC>APPLICATION FOR A MOVEMENT CERTIFICATE>START OF GRAPHIC>1. Exporter (Name, full address, country)3. Consignee (Name, full address, country) (Optional)EUR.1 No A 000.000See notes overleaf before completing this form2. Application for a certificate to be used in preferential trade between..........and..........(Insert appropriate countries, groups of countries or territories)4. Country, group of countries or territory in which the products are considered as originating5. Country, group of countries or territory of destination6. Transport details (Optional)7. Remarks8. Item number; Makes and numbers; Number and kind of packages (¹); Description of goods9. Grossweight (kg)or othermeasure(litres,m³, etc.)10. Invoices(Optional)(¹) If goods are not packed, indicate number of articles or state 'in bulk` as appropriate.DECLARATION BY THE EXPORTERI, the undersigned, exporter of the goods described overleaf,DECLARE that the goods meet the conditions required for the issue of the attached certificate;SPECIFY as follows the circumstances which have enabled these goods to meet the above conditions:........................................SUBMIT the following supporting documents (¹):........................................UNDERTAKE to submit, at the request of the appropriate authorities, any supporting evidence which these authorities may require for the purpose of issuing the attached certificate, and undertake, if required, to agree to any inspection of my accounts and to any check on the processes of manufacture of the above goods, carried out by the said authorities;REQUEST the issue of the attached certificate for these goods...........(Place and date)..........(Signature)(¹) For example: import documents, movement certificates, invoices, manufacturer's declarations, etc., referring to the products used in manufacture or to the goods re-exported in the same state.>END OF GRAPHIC>ANNEX IV FORM EUR.2 1. Form EUR.2 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 languages in which the Agreement is drawn up. Forms shall be made out in one of these languages and in accordance with the provisions of the domestic law of the exporting State. If they are handwritten, they shall be completed in ink and in capital letters.2. Each Form EUR.2 shall measure 210 × 148 mm; a maximum tolerance of up to minus 5 mm or plus 8 mm in the length may be allowed. The paper used must be white, sized for writing, not containing mechanical pulp and weighing not less than 64 g/m².3. The competent authorities of the Member States of the Community and of the Czech Republic may reserve the right to print the forms themselves or may have them printed by approved printers. In the latter case each form must include a reference to such approval. Each form must bear the name and address of the printer or a mark by which the printer can be identified. It shall also bear a serial number, either printed or not, by which it can be identified.>START OF GRAPHIC>FORM EUR.2 No1Form used in preferential tradebetween (¹) .......... and ............................. 2Exporter (Name, full address, country)3Declaration by exporterI, the undersigned, exporter of the goods described below, declare that the goods comply with the requirements for the completion of this form and that the goods have obtained the status of originating products within the provisions governing preferential trade shown in box 1.4Consignee (Name, full address, country)5Place and date6Signature of exporter7Remarks (²)8Country of origin (³)9Country of destination (4)10Gross weight (kg)11Marks; Numbers of consignment; Description of goods12Authority in the exporting country (4) responsible for verification of the declaration by the exporter(¹) Insert the countries, groups of countries or territories concerned.(²) Refer to any verification already carried out by the appropriate authorities.(³) The term 'country of origin` means country, group of countries or territory where the goods are considered to be originating.(4) The term 'country` means country, group of countries or territory of destination.(RECTO)Before completing this form read carefully the instructions on the other side.13Request for verification14Result of verificationThe verification of the declaration by the exporter on the frontof this form is requested (*)Verification carried out shows that (¹)Othe statements and particulars given in this form are accurateOthis form does not meet the requirements as to accuracy and authenticity (see remarks appended)..........,(Place and date)..........Stamp19 ....................,(Place and date)..........Stamp19 ....................(Signature)..........(Signature)(¹) Insert X in the appropriate box.(*) Subsequent verifications of forms EUR.2 shall be carried out at random or whenever the customs authorities of the importing State have reasonable doubt as to the accuracy of the information regarding the authenticity of the forms and the true origin of the goods in question.Instructions for the completion of form EUR.21. A form EUR.2 may be made out only for goods which in the exporting country fulfil the conditions specified by the provisions governing the trade referred to in box 1. These provisions must be studied carefully before the form is completed.2. In the case of a consignment by parcel post the exporter attaches the form to the dispatch note. In the case of a consignment by letter post he encloses the form in a package. The reference 'EUR.2` and the serial number of the form should be stated on the customs green label declaration C1 or on the customs declaration C2/CP3, as appropriate.3. These instructions do not exempt the exporter from complying with any other formalities required by customs or postal regulations.4. An exporter who uses this form is obliged to submit to the appropriate authorities any supporting evidence which they may require and to agree to any inspection by them of his accounts and of the processes of manufacture of the goods described in box 11 of this form.(VERSO)>END OF GRAPHIC>ANNEX V Specimen impression of the stamp mentioned in Article 16 (3) (b)>START OF GRAPHIC>JHH30 mmHHjJHH30 mmHHj(¹)EUR.1(²)(¹) Initials or coat of arms of the exporting State.(²) Such information as is necessary for the identification of the approved exporter.>END OF GRAPHIC>ANNEX VI >TABLE>PROTOCOL 5 to the Europe Agreement ('the Agreement`) CHAPTER I Specific provisions relating to trade between Spain and the Czech Republic Article 1 The provisions of the Agreement relating to trade in Title III shall be amended as follows in order to take account of the measures and undertakings listed in the Act of Accession of the Kingdom of Spain and of the Portuguese Republic to the European Communities (hereinafter called 'the Act of Accession`).Article 2 Under the Act of Accession Spain shall not grant to products originating in the Czech Republic more favourable treatment than it provides for imports originating or in free circulation in other Member States.Article 3 Quantitative restrictions may be applied to imports into Spain of products originating in the Czech Republic until 31 December 1995 in respect of the products listed in Annex A.Article 4 Application of the provisions of this Protocol shall be without prejudice to Council Regulation (EEC) No 1911/91 of 26 June 1991 on the application of the provisions of Community law to the Canary Islands or Council Decision 91/314/EEC of 26 June 1991 setting up a programme of options specific to the remote and insular nature of the Canary Islands (Poseican).CHAPTER II Specific provisions relating to trade between Portugal and the Czech Republic Article 5 The provisions of the Agreement relating to trade in Title III shall be amended as follows in order to take account of the measures and undertakings listed in the Act of Accession.Article 6 Under the Act of Accession Portugal shall not grant the Czech Republic more favourable treatment than is provided for imports originating in other Member States.Article 7 Quantitative restrictions may be applied to imports into Portugal of products originating in the Czech Republic until 31 December 1995 in respect of the products in Annex B.ANNEX A >TABLE>ANNEX B 0103 10 000103 91 100103 92 110103 92 190701 10 000701 90 100701 90 510701 90 590803 00 100803 00 900804 30 002204 21 102204 21 212204 21 232204 21 252204 21 292204 21 312204 21 332204 21 352204 29 102204 29 212204 29 232204 29 252204 29 292204 29 312204 29 332204 29 352204 29 39PROTOCOL 6 on mutual assistance in customs matters Article 1 DefinitionsFor the purposes of this Protocol:(a) customs legislation: shall mean provisions applicable in the territories of the Contracting Parties governing the import, export, transit of goods and their placing under any other customs procedure, including measures of prohibition, restriction and control adopted by the said Parties;(b) customs duties: shall mean all duties, taxes, fees or any other charges which are levied and collected in the territories of the Contracting Parties, in application of customs legislation, but not including fees and charges which are limited in amount to the approximate costs of services rendered;(c) applicant authority: shall mean a competent administrative authority which has been appointed by a Contracting Party for this purpose and which makes a request for assistance in customs matters;(d) requested authority: shall mean a competent administrative authority which has been appointed by a Contracting Party for this purpose and which receives a request for assistance in customs matters;(e) contravention: shall mean any violation of the customs legislation as well as any attempted violation of such legislation.Article 2 Scope1. The Contracting Parties shall assist each other, in the manner and under the conditions laid down in this Protocol, in ensuring that customs legislation is correctly applied, in particular by the prevention, detection and investigation of contraventions of this legislation.2. Assistance in customs matters, as provided for in this Protocol, applies to any administrative authority of the Contracting Parties which is competent for the application of this Protocol. It shall not prejudice the rules governing mutual assistance in criminal matters. Nor shall it cover information obtained under powers exercised at the request of the judicial authority, unless those authorities so agree.Article 3 Assistance on request1. At the request of the applicant authority, the requested authority shall furnish it with all relevant information to enable it to ensure that customs legislation is correctly applied, including information regarding operations noted or planned which contravene or would contravene such legislation.2. At the request of the applicant authority, the requested authority shall inform it whether goods exported from the territory of one of the Contracting Parties have been properly imported into the territory of the other Party, specifying, where appropriate, the customs procedure applied to the goods.3. At the request of the applicant authority, the requested authority shall take the necessary steps to ensure that a surveillance is kept on:(a) natural or legal persons of whom there are reasonable grounds for believing that they are contravening or have contravened customs legislation;(b) movement of goods notified as possibly giving rise to substantial contraventions of customs legislation;(c) means of transport for which there are reasonable grounds for believing that they have been, are or may be used in the contravening of customs legislation.Article 4 Spontaneous assistanceThe Contracting Parties shall within their competences provide each other with assistance if they consider that to be necessary for the correct application of customs legislation, particularly when they obtain information pertaining to:- operations which have contravened, contravene or would contravene such legislation and which may be of interest to other Contracting Parties;- new means or methods employed in realizing such operations;- goods known to be subject to substantial contravention of customs legislation on import, export, transit or any other customs procedure.Article 5 Delivery/NotificationAt the request of the applicant authority, the requested authority shall in accordance with its legislation take all necessary measures in order:- to deliver all documents, and- to notify all decisionsfalling within the scope of this Protocol to an addressee, residing or established in its territory. In such a case Article 6 (3) is applicable.Article 6 Form and substance of requests for assistance1. Requests pursuant to this Protocol shall be made in writing. Documents necessary for the execution of such requests shall accompany the request. When required because of the urgency of the situation, oral requests may be accepted, but must be confirmed in writing immediately.2. Requests pursuant to paragraph 1 shall include the following information:(a) the applicant authority making the request;(b) the measure requested;(c) the object of and the reason for the request;(d) the laws, rules, and other legal elements involved;(e) indications as exact and comprehensive as possible on the natural or legal persons being the target of the investigations;(f) a summary of the relevant facts, except in cases provided for in Article 5.3. Requests shall be submitted in an official language of the requested authority or in a language acceptable to such authority.4. If a request does not meet the formal requirements, its correction or completion may be demanded; the ordering of precautionary measures may, however, take place.Article 7 Execution of requests1. In order to comply with a request for assistance, the requested authority or, when the latter cannot act on its own, the administrative department to which the request has been addressed by this authority, shall proceed, within its competence and available resources, as though it were acting on its own account or at the request of other authorities of that same Contracting Party, by supplying information already possessed, by carrying out appropriate enquiries or by arranging for them to be carried out.2. Requests for assistance will be executed in accordance with the laws, rules, and other legal instruments of the requested Contracting Party.3. Duly authorized officials of a Contracting Party may, with the agreement of the other Contracting Party involved and within the conditions laid down by the latter, obtain from the offices of the requested authority or other authority for which the requested authority is responsible, information relating to the contravention of customs legislation which the applicant authority needs for the purposes of this Protocol.4. Officials of a Contracting Party may, with the agreement of the other Contracting Party, be present at enquiries carried out in the latter's territory.Article 8 Form in which information is to be communicated1. The requested authority shall communicate results of enquiries to the applicant authority in the form of documents, certified copies of documents, reports and the like.2. The documents provided for in paragraph 1 may be replaced by computerized information produced in any form for the same purpose.Article 9 Exceptions to the obligation to provide assistance1. The Contracting Parties may refuse to give assistance as provided for in this Protocol, where to do so would:(a) be likely to prejudice sovereignty, public policy (l'ordre publique), security or other essential interests; or(b) involve currency or tax regulations other than regulations concerning customs duties; or(c) violate an industrial, commercial or professional secret.2. Where the applicant authority asks for assistance which it would itself be unable to provide if so asked, it shall draw attention to that fact in its request. It shall then be left to the requested authority to decide how to respond to such a request.3. If assistance is withheld or denied, the decision and the reasons therefore must be notified to the applicant authority without delay.Article 10 Obligation to observe confidentiality1. Any information communicated in whatsoever form pursuant to this Protocol shall be of a confidential nature. It shall be covered by the obligation of official secrecy and shall enjoy the protection extended under the relevant laws applicable in the Contracting Party which received it and the corresponding provisions applying to the Community authorities.2. Nominative data shall not be transmitted whenever there are reasonable grounds to believe that the transfer or the use made of the data transmitted would be contrary to the basic legal principles of one of the Parties, and, in particular, if the person concerned would suffer undue disadvantages. Upon request, the receiving Party shall inform the furnishing Party of the use made of the information supplied and of the results achieved.3. Nominative data may only be transmitted to customs authorities and, in the case of need for prosecution purposes, to public prosecution and judicial authorities. Other persons or authorities may obtain such information only upon previous authorization by the furnishing authority.4. The furnishing Party shall verify the accuracy of the information to be transferred. Whenever it appears that the information supplied was inaccurate or to be deleted, the receiving Party shall be notified without delay. The latter shall be obliged to carry out the correction or deletion.5. Without prejudice to cases of prevailing public interest, the person concerned may obtain, upon request, information on the data stores and the purpose of this storage.Article 11 Use of information1. Information obtained shall be used solely for the purposes of this Protocol and may be used within each Contracting Party for other purposes only with the prior written consent of the administrative authority which furnished the information and shall be subject to any restrictions laid down by that authority. These provisions are not applicable to information concerning offences relating to narcotic drugs and psychotropic substances. Such information may be communicated to other authorities directly involved in the combatting of illicit drug traffic, within the limits of Article 2.2. Paragraph 1 shall not impede the use of information in any judicial or administrative proceedings subsequently instituted for failure to comply with customs legislation.3. The Contracting Parties may, in their records of evidence, reports and testimonies and in proceedings and charges brought before the courts, use as evidence information obtained and documents consulted in accordance with the provisions of this Protocol.Article 12 Experts and witnessesAn official of a requested authority may be authorized to appear, within the limitations of the authorization granted, as expert or witness in judicial or administrative proceedings regarding the matters covered by this Protocol in the jurisdiction of another Contracting Party, and produce such objects, documents or authenticated copies thereof, as may be needed for the proceedings. The request for an appearance must indicate specifically on what matter and by virtue of what title or qualification the official will be questioned.Article 13 Assistance expensesThe Contracting Parties shall waive all claims on each other for the reimbursement of expenses incurred pursuant to this Protocol, except, as appropriate, for expenses to experts and witnesses and to interpreters and translators who are not dependent upon public services.Article 14 Implementation1. The management of this Protocol shall be entrusted to the central customs authorities of the Czech Republic on the one hand, and the competent services of the Commission and, where appropriate, the customs authorities of the Member States on the other. They shall decide on all practical measures and arrangements necessary for its application, taking into consideration rules in the field of data protection. They may recommend to the competent bodies amendments which they consider should be made to this Protocol.2. The Contracting Parties shall consult each other and subsequently keep each other informed of the detailed rules of implementation which are adopted in accordance with the provisions of this Article.Article 15 Complementarity1. This Protocol shall complement and not impede application of any agreements on mutual assistance which have been concluded or may be concluded between individual or several Member States and the Czech Republic. Nor shall it preclude more extensive mutual assistance granted under such agreements.2. Without prejudice to Article 11, these agreements do not prejudice Community provisions governing the communication between the competent services of the Commission and the customs authorities of the Member States of any information obtained in customs matters which could be of Community interest.PROTOCOL 7 on concessions with annual limits The Parties agree that if the Agreement comes into force after 1 January in any year, any concessions given within the limits of annual quantities shall be adjusted to deduct therefrom the amount of products imported during that year originally in the Czech Republic in accordance with the provisions of Protocol 4 of the Interim Agreement signed between the Community and the Czech and Slovak Federal Republic on 16 December 1991 as amended by the Supplementary Protocols between the Community and each of the Czech Republic and Slovak Republic.PROTOCOL 8 on the succession of the Czech Republic in respect of the exchanges of letters between the European Economic Community (Community) and the Czech and Slovak Federal Republic concerning transit and land transport infrastructure Whereas upon the signature on 16 December 1991 of the Europe Agreement and the Interim Agreement between the European Communities and its Member States on the one hand and the Czech and Slovak Federal Republic on the other hand, exchanges of letters in the form annexed hereto were signed between the European Economic Community on the one hand and the Czech and Slovak Federal Republic on the other hand;Whereas these exchanges of letters were amended by the exchanges of letters signed on 19 February 1992 between the European Economic Community on the one hand and the Czech and Slovak Federal Republic on the other hand annexed hereto;Whereas the Czech Republic has declared, in a letter to the President of the Commission of the European Communities of 15 December 1992 that it 'shall assume all the obligations resulting from all the agreements between the Czech and Slovak Federal Republic and the European Communities`;Whereas the Czech Republic is, as of 1 January 1993, a successor State to the Czech and Slovak Federal Republic;Whereas the Czech Republic undertakes not to worsen the conditions of land transit in comparison to the situation which prevailed under the abovementioned exchange of letters in the Czech and Slovak Federal Republic;The Czech Republic and the Community agree as follows:Article 1 The Community on the one hand and the Czech Republic on the other hand assume all rights and obligations of the Community on the one hand and the former Czech and Slovak Federal Republic on the other hand contained in the aforementioned exchanges of letters.Article 2 The Czech Republic undertakes to issue such a number of permits as provided for in the exchange of letters concerning transit mentioned above. The permits shall be valid (as of 1994) only on the territory of the Czech Republic. The Czech Republic shall issue a permit regularly to a holder of a permit issued by the Slovak Republic under the abovementioned exchange of letters, limited to the maximum number foreseen under the abovementioned exchange of letters.Article 3 The amount of administrative charges, taxes and other possible fees imposed on a taxable permit by the Czech Republic under the exchange of letter mentioned above shall not exceed 9 250 Czech crowns.Article 4 The Czech Republic declares that, in order not to create less favourable conditions for transit than prevailed under the abovementioned exchange of letters for Community hauliers, it will take all possible measures to prevent unnecessary delays for Community hauliers as a result of checks on the borders between the Czech Republic and the Slovak Republic.ANNEX I Exchange of letters between the European Economic Community and the Czech and Slovak Federal Republic concerning transit A. Letter from the Czech and Slovak Federal RepublicSir,During the negotiations of the Europe Agreement between the European Communities and their Member States and the Czech and Slovak Federal Republic (CSFR), the following agreement was reached:1. the Parties to the Europe Agreement shall not take any measures which would prejudice the situation resulting from the application of the existing bilateral agreements between the Member States of the Community and the CSFR;2. more particularly, within the framework of a global solution to the problems of transit through the CSFR for those Member States of the Community most directly concerned, the CSFR hereby grants 2 000 additional taxable permits in 1991 in addition to the existing quota granted pursuant to the bilateral agreements for 1991. Furthermore the CSFR shall grant in 1992, 1993 and 1994, in addition to the existing quota granted prior hereto pursuant to the bilateral agreements for 1991, including the previously mentioned 2 000 permits, permits in the following way:>TABLE>Combined transport permits are to be used by lorries to cross CSFR territory by CSFR railroads in the form of 'rolling roads`, on the condition that the costs and time involved in this mode of transport will be comparable to those of road transit operations with taxes. For the number of permits for which these conditions cannot be met, the CSFR shall provide taxable transit permits. All abovementioned transit permits are of a round-trip character.In 1995 and in subsequent years, until the entry into force of a bilateral transport agreement between the Community and the CSFR, the CSFR shall increase the number of untaxed, taxable and combined transport licences with the same rates as in 1994.I should be obliged if you would confirm the agreement of the European Economic Community to the contents of this letter.Please accept, Sir, the assurance of my highest consideration.For the Government of the Czech and Slovak Federal RepublicB. Letter from the CommunitySir,I have the honour to acknowledge receipt of your letter of today's date which reads as follows:'During the negotiations of the Europe Agreement between the European Communities and their Member States and the Czech and Slovak Federal Republic (CSFR), the following agreement was reached:1. the Parties to the Europe Agreement shall not take any measures which would prejudice the situation resulting from the application of the existing bilateral agreements between the Member States of the Community and the CSFR;2. more particularly, within the framework of a global solution to the problems of transit through the CSFR for those Member States of the Community most directly concerned, the CSFR hereby grants 2 000 additional taxable permits in 1991 in addition to the existing quota granted pursuant to the bilateral agreements for 1991. Furthermore the CSFR shall grant in 1992, 1993 and 1994, in addition to the existing quota granted prior hereto pursuant to the bilateral agreements for 1991, including the previously mentioned 2 000 permits, permits in the following way:>TABLE>Combined transport permits are to be used by lorries to cross CSFR territory by CSFR railroads in the form of "rolling roads", on the condition that the costs and time involved in this mode of transport will be comparable to those of road transit operations with taxes. For the number of permits for which these conditions cannot be met, the CSFR shall provide taxable transit permits. All abovementioned transit permits are of a round-trip character.In 1995 and in subsequent years, until the entry into force of a bilateral transport agreement between the Community and the CSFR, the CSFR shall increase the number of untaxed, taxable and combined transport licences with the same rates as in 1994.I should be obliged if you would confirm the agreement of the European Economic Community to the contents of this letter.Please accept, Sir, the assurance of my highest consideration.`I have the honour to confirm that the Community is in agreement with the contents of this letter.Please accept, Sir, the assurance of my highest consideration.On behalf of the Council of the European CommunitiesExchange of letters between the European Economic Community and the Czech Republic concerning land transport infrastructure A. Letter from the CommunitySir,I have the honour of confirming to you herewith the position of the Community, expressed during their negotiations of the Europe Agreement between the European Communities and their Member States and the Czech Republic, that the Community shall, within the framework of the financial mechanisms provided for in the Agreement, provide, as appropriate, financing for the improvement of land transport infrastructure, including combined transport.I should be obliged if you would confirm the agreement of the Czech Republic to the content of this letter.Please accept, Sir, the assurance of my highest consideration.On behalf of the Council of the European CommunitiesB. Letter from the Czech RepublicSir,I have the honour to acknowledge receipt of your letter of today's date which reads as follows:'I have the honour of confirming to you herewith the position of the Community, expressed during their negotiations of the Europe Agreement between the European Communities and their Member States and the Czech Republic, that the Community shall, within the framework of the financial mechanisms provided for in the Agreement, provide, as appropriate, financing for the improvement of land transport infrastructure, including combined transport.I should be obliged if you would confirm the agreement of the Czech Republic to the content of this letter.`I have the honour to confirm that my government is in agreement with the contents of your letter.Please accept, Sir, the assurance of my highest consideration.For the Government of the Czech RepublicANNEX II AGREEMENT in the form of an exchange of letters amending the exchanges of letters between the Community and Czech and Slovak Federal Republic concerning transit signed in Brussels on 16 December 1991 A. Letter from the CommunitySir,Upon the occasion of the signatures on 16 December 1991 of the Europe Agreement between the Communities and their Member States and the Czech and Slovak Federal Republic and of the Interim Agreement on trade and trade related matters between the European Economic Community ('the Community`) and the European Coal and Steel Community of the one part, and the Czech and Slovak Federal Republic, of the other part, Agreements in the form of exchanges of letters between the Community and Czechoslovakia concerning transit were signed. The Europe Agreement has not yet come into force. The Interim Agreement came into force on 1 March 1992.Since the signature of the exchanges of letters, the Czech and Slovak Federal Republic increased the fee for taxable transit permits. This decision had consequences on the arrangements made in December concerning transit and the Parties consider it necessary to come to an agreement through the present exchange of letters, to amend the relevant provisions of the exchanges of letters signed on 16 December 1991 to take account thereof.Accordingly, I propose that the exchanges of letters signed on 16 December 1991 be amended as follows:In paragraph 2 the following sentence shall be inserted after the first sentence of the first subparagraph: 'The fee per taxable permit is 18 500 Czechoslovak crowns.`The following subparagraph shall be added after the second subparagraph of paragraph 2: 'Both sides agreed that if the transit situation on the territory of former Yugoslavia is not normalized they will jointly examine before the end of the year the possible changes concerning the abovementioned arrangements. Changes in the above provisions can be made by common agreement between the Parties.`If the foregoing is acceptable to the Czech and Slovak Federal Republic, I have the honour to propose that this letter, together with Your Excellency's reply to that effect, shall constitute an amendment to the exchange of letters signed on 16 December 1991.This Agreement is hereby approved by the Parties in accordance with their respective procedures.This Agreement shall enter into force on the first day following that on which the Parties notify each other that the procedures mentioned in the preceding subparagraph have been completed. It shall apply with effect from 15 March 1992.I should be obliged if you would confirm the agreement of the Government of the Czech and Slovak Federal Republic to the contents of this letter.Please accept, Sir, the assurance of my highest consideration.On behalf of the Council of the European Communities>REFERENCE TO A FILM>B. Letter from the Czech and Slovak Federal RepublicSir,I have the honour to acknowledge receipt of your letter of today's date which reads as follows:'Upon the occasion of the signatures on 16 December 1991 of the Europe Agreement between the Communities and their Member States and the Czech and Slovak Federal Republic and of the Interim Agreement on trade and trade related matters between the European Economic Community ("the Community") and the European Coal and Steel Community, of the one part, and the Czech and Slovak Federal Republic, of the other part, Agreements in the form of exchanges of letters between the Community and Czechoslovakia concerning transit were signed. The Europe Agreement has not yet come into force. The Interim Agreement came into force on 1 March 1992.Since the signature of the exchanges of letters, the Czech and Slovak Federal Republic increased the fee for taxable transit permits. This decision had consequences on the arrangements made in December concerning transit and the parties consider it necessary to come to an agreement through the present exchange of letters, to amend the relevant provisions of the exchanges of letters signed on 16 December 1991 to take account thereof.Accordingly, I propose that the exchanges of letters signed on 16 December 1991 be amended as follows:In paragraph 2 the following sentence shall be inserted after the first sentence of the first subparagraph: "The fee per taxable permit is 18 500 Czechoslovak crowns."The following subparagraph shall be added after the second subparagraph of paragraph 2: "Both sides agreed that if the transit situation on the territory of former Yugoslavia is not normalized they will jointly examine before the end of the year the possible changes concerning the abovementioned arrangements. Changes in the above provisions can be made by common agreement between the Parties."If the foregoing is acceptable to the Czech and Slovak Federal Republic, I have the honour to propose that this letter, together with Your Excellency's reply to that effect, shall constitute an amendment to the exchanges of letters signed on 16 December 1991.This Agreement is hereby approved by the Parties in accordance with their respective procedures.This Agreement shall enter into force on the first day following that on which the Parties notify each other that the procedures mentioned in the preceding subparagraph have been completed. It shall apply with effect from 15 March 1992.I should be obliged if you would confirm the agreement of the Government of the Czech and Slovak Federal Republic to the contents of this letter.`I have the honour to confirm that my Government is in agreement with the contents of this letter.Please accept, Sir, the assurance of my highest consideration.For the Czech and Slovak Federal Republic>REFERENCE TO A FILM>AGREEMENT in the form of an exchange of letters replacing the exchanges of letters between the Community and the Czech and Slovak Federal Republic on land transport infrastructure signed in Brussels on 16 December 1991 A. Letter from the CommunitySir,Upon the occasion of the signature on 16 December 1991 of the Interim Agreement on trade and trade related matters between the European Economic Community ('the Community`) and the European Coal and Steel Community, of the one part, and the Czech and Slovak Federal Republic, of the other part, an Agreement in the form of an exchange of letters between the Community and Czechoslovakia concerning land transport infrastructure was signed. The Interim Agreement came into force on 1 March 1992.Since the signature of the exchange of letters, the Czech and Slovak Federal Republic increased the fee for taxable transit permits. This law had consequences on the arrangements made in December concerning transit and the parties consider it necessary to come to an agreement through the present exchange of letters, to amend the relevant provisions of the exchange of letters signed on 16 December 1991 to take account thereof.Accordingly, I propose that the text of the exchange of letters signed on 16 December 1991 be replaced by the following text:'I have the honour of confirming to you herewith that the Community has full understanding of the infrastructural and environmental problems the Czech and Slovak Federal Republic is facing in the area of transport and shall, within the framework of the financial mechanisms provided for, provide, as appropriate, financing for the improvement of land transport infrastructure, including combined transport.In this context, I take note of the Czech and Slovak Federal Republic's explanation of the urgent need for financial assistance to enable its land transport infrastructure to cope with the increased transit traffic in its territory.The Parties agree to seek, in the context of the existing Trade and Cooperation Agreement, possible ways and means to contribute to the improvement of such infrastructure in the Czech and Slovak Federal Republic, paying special attention to border crossings and nearby areas, combined transport, transit motorways, waterways transport and environmental aspects, without prejudice to appraisal of projects according to existing procedures.The Parties further agree to start, at their earliest convenience, discussions about possible Community financial assistance.The Czech and Slovak Federal Republic will consider further reducing the rate of taxable permits for Community hauliers according to progress in the above discussions.`If the foregoing is acceptable to the Czech and Slovak Federal Republic, I have the honour to propose that this letter, together with Your Excellency's reply to that effect, shall constitute the replacement of the exchange of letters signed on 16 December 1991.This Agreement is hereby approved by the Parties in accordance with their respective procedures.This Agreement shall enter into force on the first day following that on which the Parties notify each other that the procedures mentioned in the preceding subparagraph have been completed. It shall apply with effect from 15 March 1992.I should be obliged if you would confirm the agreement of the Government of the Czech and Slovak Federal Republic to the contents of this letter.Please accept, Sir, the assurance of my highest consideration.On behalf of the Council of the European Communities>REFERENCE TO A FILM>B. Letter from the Czech and Slovak Federal RepublicSir,I have the honour to acknowledge receipt of your letter of today's date which reads as follows:'Upon the occasion of the signature on 16 December 1991 of the Interim Agreement on trade and trade related matters between the European Economic Community ("the Community") and the European Coal and Steel Community, of the one part, and the Czech and Slovak Federal Republic, of the other part, an Agreement in the form of an exchange of letters between the Community and Czechoslovakia concerning land transport infrastructure was signed. The Interim Agreement came into force on 1 March 1992.Since the signature of the exchange of letters, the Czech and Slovak Federal Republic increased the fee for taxable transit permits. This law had consequences on the arrangements made in December concerning transit and the Parties consider it necessary to come to an agreement through the present exchange of letters, to amend the relevant provisions of the exchange of letters signed on 16 December 1991 to take account thereof.Accordingly, I propose that the text of the exchange of letters signed on 16 December 1991 be replaced by the following text:"I have the honour of confirming to you herewith that the Community has full understanding of the infrastructural and environmental problems the Czech and Slovak Federal Republic is facing in the area of transport and shall, within the framework of the financial mechanisms provided for, provide, as appropriate, financing for the improvement of land transport infrastructure, including combined transport.In this context, I take note of the Czech and Slovak Federal Republic's explanation of the urgent need for financial assistance to enable its land transport infrastructure to cope with the increased transit traffic in its territory.The Parties agree to seek, in the context of the existing Trade and Cooperation Agreement, possible ways and means to contribute to the improvement of such infrastructure in the Czech and Slovak Federal Republic, paying special attention to border crossings and nearby areas, combined transport, transit motorways, waterways transport and environmental aspects, without prejudice to appraisal of projects according to existing procedures.The Parties further agree to start, at their earliest convenience, discussions about possible Community financial assistance.The Czech and Slovak Federal Republic will consider further reducing the rate of taxable permits for Community hauliers according to progress in the above discussions."If the foregoing is acceptable to the Czech and Slovak Federal Republic, I have the honour to propose that this letter, together with Your Excellency's reply to that effect, shall constitute the replacement of the exchange of letters signed on 16 December 1991.This Agreement is hereby approved by the Parties in accordance with their respective procedures.This Agreement shall enter into force on the first day following that on which the Parties notify each other that the procedures mentioned in the preceding subparagraph have been completed. It shall apply with effect from 15 March 1992.I should be obliged if you would confirm the agreement of the Government of the Czech and Slovak Federal Republic to the contents of this letter.`I have the honour to confirm that my Government is in agreement with the contents of this letter.Please accept, Sir, the assurance of my highest consideration.For the Czech and Slovak Federal Republic>REFERENCE TO A FILM>AGREEMENT in the form of an exchange of letters replacing the exchanges of letters between the Community and the Czech and Slovak Federal Republic on land transport infrastructure signed in Brussels on 16 December 1991 A. Letter from the CommunitySir,Upon the occasion of the signature on 16 December 1991 of the Europe Agreement between the Communities and their Member States and the Czech and Slovak Federal Republic an Agreement in the form of an exchange of letters between the Community and Czechoslovakia concerning land transport infrastructure was signed. The Europe Agreement has not yet come into force.Since the signature of the exchange of letters, the Czech and Slovak Federal Republic increased the fee for taxable transit permits. This law had consequences on the arrangements made in December concerning transit and the parties consider it necessary to come to an agreement through the present exchange of letters, to amend the relevant provisions of the exchange of letters signed on 16 December 1991 to take account thereof.Accordingly, I propose that the text of the exchange of letters signed on 16 December 1991 be replaced by the following text:'I have the honour of confirming to you herewith that the Community has full understanding of the infrastructural and environmental problems the Czech and Slovak Federal Republic is facing in the area of transport and shall, within the framework of the financial mechanisms provided for in the Europe Agreement, provide, as appropriate, financing for the improvement of land transport infrastructure, including combined transport.In this context, I take note of the Czech and Slovak Federal Republic's explanation of the urgent need for financial assistance to enable its land transport infrastructure to cope with the increased transit traffic in its territory.The Parties agree to seek, on the basis of this exchange of letters and referring to Article 81 in the Europe Agreement, possible ways and means to contribute to the improvement of such infrastructure in the Czech and Slovak Federal Republic, paying special attention to border crossings and nearby areas, combined transport, transit motorways, waterways transport and environmental aspects, without prejudice to appraisal of projects according to existing procedures.The Parties further agree to start, at their earliest convenience, discussions about possible Community financial assistance.The Czech and Slovak Federal Republic will consider further reducing the rate of taxable permits for Community hauliers according to progress in the above discussions.`If the foregoing is acceptable to the Czech and Slovak Federal Republic, I have the honour to propose that this letter, together with Your Excellency's reply to that effect, shall constitute the replacement of the exchange of letters signed on 16 December 1991.This Agreement is hereby approved by the Parties in accordance with their respective procedures.This Agreement shall enter into force on the first day following that on which the Parties notify each other that the procedures mentioned in the preceding subparagraph have been completed. It shall apply with effect from 15 March 1992.I should be obliged if you would confirm the agreement of the Government of the Czech and Slovak Federal Republic to the contents of this letter.Please accept, Sir, the assurance of my highest consideration.On behalf of the Council of the European Communities>REFERENCE TO A FILM>B. Letter from the Czech and Slovak RepublicSir,I have the honour to acknowledge receipt of your letter of today's date which reads as follows:'Upon the occasion of the signature on 16 December 1991 of the Europe Agreement between the Communities and their Member States and the Czech and Slovak Federal Republic an Agreement in the form of an exchange of letters between the Community and Czechoslovakia concerning land transport infrastructure was signed. The Europe Agreement has not yet come into force.Since the signature of the exchange of letters, the Czech and Slovak Federal Republic increased the fee for taxable transit permits. This law had consequences on the arrangements made in December concerning transit and the Parties consider it necessary to come to an agreement through the present exchange of letters, to amend the relevant provisions of the exchange of letters signed on 16 December 1991 to take account thereof.Accordingly, I propose that the text of the exchange of letters signed on 16 December 1991 be replaced by the following text:"I have the honour of confirming to you herewith that the Community has full understanding of the infrastructural and environmental problems the Czech and Slovak Federal Republic is facing in the area of transport and shall, within the framework of the financial mechanisms provided for in the Europe Agreement, provide, as appropriate, financing for the improvement of land transport infrastructure, including combined transport.In this context, I take note of the Czech and Slovak Federal Republic's explanation of the urgent need for financial assistance to enable its land transport infrastructure to cope with the increased transit traffic in its territory.The Parties agree to seek, on the basis of this exchange of letters and referring to Article 81 in the Europe Agreement, possible ways and means to contribute to the improvement of such infrastructure in the Czech and Slovak Federal Republic, paying special attention to border crossings and nearby areas, combined transport, transit motorways, waterways transport and environmental aspects, without prejudice to appraisal of projects according to existing procedures.The Parties further agree to start, at their earliest convenience, discussions about possible Community financial assistance.The Czech and Slovak Federal Republic will consider further reducing the rate of taxable permits for Community hauliers according to progress in the above discussions."If the foregoing is acceptable to the Czech and Slovak Federal Republic, I have the honour to propose that this letter, together with Your Excellency's reply to that effect, shall constitute the replacement of the exchange of letters signed on 16 December 1991.This Agreement is hereby approved by the Parties in accordance with their respective procedures.This Agreement shall enter into force on the first day following that on which the Parties notify each other that the procedures mentioned in the preceding subparagraph have been completed. It shall apply with effect from 15 March 1992.I should be obliged if you would confirm the agreement of the Government of the Czech and Slovak Federal Republic to the contents of this letter.`I have the honour to confirm that my Government is in agreement with the contents of this letter.Please accept, Sir, the assurance of my highest consideration.For the Czech and Slovak Federal Republic>REFERENCE TO A FILM>FINAL ACT The plenipotentiaries of:THE KINGDOM OF BELGIUM,THE KINGDOM OF DENMARK,THE FEDERAL REPUBLIC OF GERMANY,THE HELLENIC REPUBLIC,THE KINGDOM OF SPAIN,THE FRENCH REPUBLIC,IRELAND,THE ITALIAN REPUBLIC,THE GRAND DUCHY OF LUXEMBOURG,THE KINGDOM OF THE NETHERLANDS,THE PORTUGUESE REPUBLIC,THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,Contracting Parties to the Treaty establishing the EUROPEAN ECONOMIC COMMUNITY, the Treaty establishing the EUROPEAN COAL AND STEEL COMMUNITY and the Treaty establishing the EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as 'Member States`, and of the EUROPEAN ECONOMIC COMMUNITY, the EUROPEAN COAL AND STEEL COMMUNITY and the EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as 'the Community`,of the one part, andthe plenipotentiaries of the CZECH REPUBLIC,of the other part,meeting at Luxembourg, this fourth day of October in the year one thousand nine hundred and ninety-three for the signature of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic of the other part ('the Europe Agreement`), have adopted the following texts:the Europe Agreement, and the following Protocols:>TABLE>The plenipotentiaries of the Member States and of the Community and the plenipotentiaries of the Czech Republic have adopted the texts of the joint declarations listed below and annexed to this Final Act:- Joint Declaration on Article 8 (4) of the Agreement,- Joint Declaration on Article 38 (1) of the Agreement,- Joint Declaration on Article 38 of the Agreement,- Joint Declaration on Article 39 of the Agreement,- Joint Declaration on Chapter II of Title IV of the Agreement,- Joint Declaration on Chapter III of Title IV of the Agreement,- Joint Declaration on Article 57 (3) of the Agreement,- Joint Declaration on Article 59 of the Agreement,- Joint Declaration on Article 60 of the Agreement,- Joint Declaration on Article 64 of the Agreement,- Joint Declaration on Article 67 of the Agreement,- Joint Declaration on Article 109 of the Agreement,- Joint Declaration on Article 117 (2) of the Agreement,- Joint Declaration on Article 5 of Protocol 6.The plenipotentiaries of the Member States and of the Community and the plenipotentiaries of the Czech Republic have also taken note of the following exchanges of letters annexed to this Final Act:- exchange of letters concerning certain arrangements for live bovine animals,- exchange of letters concerning Article 68 of the Agreement,- exchange of letters concerning the specification of areas of common interest eligible for financial assistance.The plenipotentiaries of the Member States and of the Community and the plenipotentiaries of the Czech Republic have further taken note of the declaration by the French Government annexed to this Final Act:- Declaration by the French Government on its overseas countries and territories.The plenipotentiaries of the Czech Republic have taken note of the declarations listed below and annexed to this Final Act:- Community Declaration on Articles 6 and 117 of the Agreement,- Community Declaration on Chapter I of Title IV of the Agreement,- Community Declaration on Article 8 (4) of Protocol 2 on ECSC products.The plenipotentiaries of the Member States and of the Community have taken note of the declaration listed below and annexed to this Final Act:Letter from the Government of the Czech Republic to the Community concerning Protocol 2.Hecho en Luxemburgo, el cuatro de octubre de mil novecientos noventa y tres.Udfærdiget i Luxembourg, den fjerde oktober nitten hundrede og treoghalvfems.Geschehen zu Luxemburg am vierten Oktober neunzehnhundertdreiundneunzig.¸ãéíå óôï Ëïõîåìâïýñãï, óôéò ôÝóóåñéò Ïêôùâñßïõ ÷ßëéá åííéáêüóéá åííåíÞíôá ôñßá.Done at Luxembourg on the fourth day of October in the year one thousand nine hundred and ninety-three.Fait à Luxembourg, le quatre octobre mil neuf cent quatre-vingt-treize.Fatto a Lussemburgo, addì quattro ottobre millenovecentonovantatré.Gedaan te Luxemburg, de vierde oktober negentienhonderd drieënnegentig.Feito em Luxemburgo, em quatro de Outubro de mil novecentos e noventa e três.Dáno v Lucemburku  Octvrtého óne m Oesíce  Orijna roku tisíc dev Oet set devadesát t Ori.Pour le Royaume de BelgiqueVoor het Koninkrijk België>REFERENCE TO A FILM>På Kongeriget Danmarks vegne>REFERENCE TO A FILM>Für die Bundesrepublik Deutschland>REFERENCE TO A FILM>Ãéá ôçí ÅëëçíéêÞ Äçìïêñáôßá>REFERENCE TO A FILM>Por el Reino de España>REFERENCE TO A FILM>Pour la République française>REFERENCE TO A FILM>For IrelandThar cheann Na hÉireann>REFERENCE TO A FILM>Per la Repubblica italiana>REFERENCE TO A FILM>Pour le Grand-Duché de Luxembourg>REFERENCE TO A FILM>Voor het Koninkrijk der Nederlanden>REFERENCE TO A FILM>Pela República Portuguesa>REFERENCE TO A FILM>For the United Kingdom of Great Britain and Northern Ireland>REFERENCE TO A FILM>Por el Consejo y la Comisión de las Comunidades EuropeasFor Rådet og Kommissionen for De Europæiske FællesskaberFür den Rat und die Kommission der Europäischen GemeinschaftenÃéá ôï Óõìâïýëéï êáé ôçí ÅðéôñïðÞ ôùí Åõñùðáúêþí ÊïéíïôÞôùíFor the Council and the Commission of the European CommunitiesPour le Conseil et la Commission des Communautés européennesPer il Consiglio e la Commissione delle Comunità europeeVoor de Raad en de Commissie van de Europese GemeenschappenPelo Conselho e pela Comissão das Comunidades Europeias>REFERENCE TO A FILM>Za  OCeskou republiku>REFERENCE TO A FILM>Joint declarations 1. Article 8 (4)The Community and the Czech Republic confirm that where a reduction of duties is effected by way of a suspension of duties made for a particular period of time, such reduced duties shall replace the basic duties only for the period of such suspension, and that whenever a partial suspension of duties is made, the preferential margin between the Parties will be preserved.2. Article 38 (1)It is understood that the concept 'conditions and modalities applicable in each Member State` includes Community rules where appropriate.3. Article 38It is understood that the notion 'children` is defined in accordance with national legislation of the host country concerned.4. Article 39It is understood that the notion 'members of their family` is defined in accordance with the national legislation of the host country concerned.5. Chapter II of Title IVWithout prejudice to the provisions of Chapter IV of Title IV, the Parties agree that treatment of the nationals or companies of one Party shall be considered to be less favourable than that accorded to those of the other Party if such treatment is either formally or de facto less favourable than the treatment accorded to those of the other Party.6. Chapter III of Title IVThe Parties shall endeavour to achieve a mutually satisfactory result in the framework of the current negotiations on services taking place in the Uruguay Round.7. Article 57 (3)The Parties declare that the Agreements referred to in Article 57 (3) should aim at the highest possible extension of the transport regulations and policies applicable in the Community and in the Member States to the relations between the Community and the Czech Republic in the field of transport.8. Article 59The sole fact of requiring a visa for natural persons of certain Parties and not for those of others shall not be regarded as nullifying or impairing benefits under a specific commitment.9. Article 60Whenever the Association Council is called upon to take measures for further liberalization in the areas of services or persons, it shall also determine for which transactions related to such measures payments are to be authorized in freely convertible currency.10. Article 64The Parties shall not make improper use of provisions on professional secrecy to prevent the disclosure of information in the field of competition.11. Article 67The Parties agree that for the purpose of this Association Agreement 'intellectual, industrial and commercial property` is to be given a similar meaning as in Article 36 of the EEC Treaty and includes in particular protection of copyright and neighbouring rights, patents, industrial designs, trade marks and service marks, topographies of integrated circuits, software, geographical indications, as well as protection against unfair competition and protection of undisclosed information on know-how.12. Article 109The Parties agree that the Association Council, in accordance with Article 109 of the Agreement, will examine the creation of a consultative mechanism composed of members of the Economic and Social Committee of the Community and the corresponding partners of the Czech Republic.13. Article 117 (2)The Parties to the Agreement,for the purpose of its correct interpretation and its practical application,agree thatthe term 'cases of special urgency` included in Article 117 of the Agreement means a case of the material breach of the Agreement by one of the Parties. A material breach of the Agreement consists in:(a) repudiation of the Agreement not sanctioned by the general rules of international law;or(b) violation of essential elements of the Agreement, namely its Article 6.14. Article 5 of Protocol 6The Contracting Parties stress that the reference which is made in Article 5 of Protocol 6 their own legislation may cover, where appropriate, an international commitment they could have contracted, such as the Convention on the service abroad of judicial and extra-judicial documents in civil or commercial matters, concluded in The Hague on 15 November 1965.Declaration by the French Government France notes that the Europe Agreement with the Czech Republic does not apply to the overseas countries and territories associated with the European Economic Community pursuant to the Treaty establishing the European Economic Community.Declarations by the European Community 1. Articles 6 and 117The reference to the respect for human rights as an essential element of the Agreement and to the cases of special urgency has been included in the Agreement as a result of the policy followed by the Community in the area of human rights pursuant to the Council Declaration of 11 May 1992 which foresees such reference in the cooperation or association agreements between the Community and its partners in the Conference on Security and cooperation in Europe.2. Chapter I of Title IVThe Community declares that nothing in the provisions of Chapter I, 'Movement of workers`, shall be construed as impairing any competence of Member States as to the entry into and stay on their territories of workers and their family members.3. Article 8 (4) of Protocol 2 on ECSC productsIt is understood that the possibility of an exceptional extension of the five-year period is strictly limited to the particular case of the Czech Republic and does not impair the position of the Community in relation to other cases nor prejudge international commitments. The possible derogation foreseen in paragraph 4 takes into account the particular difficulties of the Czech Republic in restructuring the steel sector and the fact that this process has been launched very recently.Letter from the Government of the Czech Republic to the Community concerning Protocol 2 The Government of the Czech Republic declares that it will not invoke the provisions of Protocol 2 on ECSC products, in particular Article 8, so as not to call into question the compatibility with this Protocol of the agreements made by the Community coal industry with the electricity companies and the steel industry to secure the sale of Community coal.