CELEX: 51996PC0503
Language: en
Date: 1996-10-25
Title: PROPOSAL FOR A COUNCIL DECISION concerning the conclusion of an Agreement between the European Community of the one part and the Government of Denmark and the Home Government of the Faroe Islands of the other part

COMMISSION OF THE EUROPEAN COMMUNITIES
                                       Brussels, 25.10.1996
                                       COM(96) 503 final
                                       96/0253 (ACC)
                       PROPOSAL FOR A
                      COUNCIL DECISION
concerning the conclusion of an Agreement between the
European   Community      of    the    one     part    and  the
Government of Denmark and the Home Government of the Faroe
                    Islands of the other part
                (presented by the Commission)
 ---pagebreak---  ---pagebreak---                           EXPLANATORY MEMORANDUM
On 29 June 1995, the Council authorized the Commission to negotiate with
Denmark/Faroe Islands an accession protocol of Austria, Finland and Sweden to the
existing trade Agreement between the Community and Denmark/Faroe Islands.
In addition, the Council authorized the Commission on 17 July 1995 to negotiate with
Denmark/Faroe Islands further amendments to this Agreement, in particular:
      - to add a new protocol on mutual administrative assistance in customs matters
        between the Contracting Parties;
      - to update the provisions of the Agreement relating to petroleum products;
      - to authorise the Joint Committee provided for under the Agreement to amend the
        provisions of the Protocols annexed to the Agreement.
During these negotiations, it has been agreed, for the sake of clarity, to include all
amendments in one new Agreement, which should replace all existing provisions.
The new provisions applicable to imports into the Community of certain fish products
from the Faroe Islands take into account imports into the new Member States from the
Faroe Islands.
The Council is invited to approve the conclusion of the new Agreement in sufficient time
to allow entry into force on 1 January 1997.
                                                01
 ---pagebreak---                                          PROPOSAL FOR A
                                        COUNCIL DECISION
           concerning the conclusion of an Agreement between the
           European          Community      of    the  one     part     and    the
           Government of Denmark and the Home Government of the Faroe
           Islands of the other part
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community and in particular
Article 113 in conjunction with the first sentence of Article 228 (2) thereof,
Having regard to the proposal from the Commission,
Whereas the Commission has negotiated on behalf of the Community a new Agreement,
replacing the Agreement between the European Economic Community of the one part and
the Government of Denmark and the Home Government of the Faroe Islands of the other
part, signed on 2 December 19911, as amended by the Agreement in the form of an
exchange of letters between the European Community of the one part and the
Government of Denmark and the Home Government of the Faroe Islands of the other
part, signed on 8 March 19952,
Whereas this new Agreement should be approved,
HAS DECIDED AS FOLLOWS:
                                             Article 1
The Agreement between the European Community of the one part and the Government of
Denmark and the Home Government of the Faroe Islands of the other part is hereby
approved on behalf of the Community.
The text of the Agreement is attached to this Decision.
                                             Article 2
The President of the Council is hereby authorised to designate the persons empowered to
sign the Agreement in order to bind the Community and to give the notification provided
for in Article 40 of the Agreement.
Done at Brussels,
                                                        For the Council
                                                        The President
1
     O J N ° L 3 7 1 of31.12.1991,p. 1.
2
    O J N ° L 5 4 o f 10.3.1995, p. 25.
                                                          02
 ---pagebreak---                                      AGREEMENT
                 BETWEEN THE EUROPEAN COMMUNITY OF THE ONE PART
                         AND THE GOVERNMENT OF DENMARK
      AND THE HOME GOVERNMENT OF THE FAROE ISLANDS OF THE OTHER PART
THE EUROPEAN COMMUNITY,
of the one part, and
THE GOVERNMENT OF DENMARK AND THE HOME GOVERNMENT OF THE
FAROE ISLANDS,
of the other part,
RECALLING the status of the Faroe Islands as a self-governing integral part of one of
the Member States of the Community;
RECALLING the resolution of the Council of 4 February 1974 on the problems of the
Faroe Islands;
CONSIDERING the vital importance for the Faroe Islands of fisheries, which constitute
their essential economic activity, fish and fishery products being their main export articles;
CONSIDERING the importance of the fisheries relationship laid down in the agreement
on fisheries between the parties, who confirm that the trade aspects of the present
Agreement should not affect the functioning of the fisheries agreement and that,
consequently, the volume of the mutual fisheries possibilities under that agreement should
continue to be maintained at a satisfactory level;
DESIRING to consolidate and to extend the economic relations existing between the
Community and the Faroe Islands and to ensure, with due regard for fair conditions of
competition, the harmonious development of their commerce for the purpose of
contributing to the work of constructing Europe;
                                                   03
 ---pagebreak--- RESOLVED progressively to eliminate the obstacles to substantially all their trade, in
accordance with the provisions of the General Agreement on Tariffs and Trade 1994
concerning the establishment of free trade areas;
DECLARING their readiness to examine, in the light of any relevant factor, and in
particular of developments in the Community, the possibility of developing and deepening
their relations where it would appear to be useful in the interests of their economies to
extend them to fields not covered by this Agreement;
CONSIDERING that, to this end, an agreement between the European Economic
Community, of the one part, and the Government of Denmark and the Home Government
of the Faroe Islands, of the other part (the "initial Agreement") was signed on 2 December
1991:
CONSIDERING that an agreement in the form of an exchange of letters between the
European Community, of the one part, and the Government of Denmark and the Home
Government of the Faroe Islands, of the other part, amending Tables I and II of the Annex
to Protocol 1 of the initial Agreement (the "Agreement in the form of an exchange of
letters") was signed on 8 March 1995;
CONSIDERING that, pursuant to the accession of the Republic of Austria, the Republic
of Finland and the Kingdom of Sweden to the European Union on 1 January 1995, the
arrangements applicable to trade in fish and fishery products between the Faroe Islands
and the Community should be adjusted in order to maintain trade flows between the Faroe
Islands, on the one hand, and the new Member States, on the other;
CONSIDERING that, as a result of the adoption by the Community of a common
definition of origin for petroleum products, it is necessary to make adjustments to the
provisions affecting these products;
CONSIDERING that, in order to take account of certain developments in trade between
the Community and the Member States of EFT A, it is necessary to make adjustments to
the provisions concerning the definition of the concept of "originating products" and
methods of administrative co-operation;
                                                      0
 ---pagebreak--- CONSIDERING that, in order to take account of the specific production of fish feed on
the Faroe Islands, it is necessary to make adjustments to the provisions applicable to
imports of certain agricultural products;
CONSIDERING that, in order to help ensure its correct functioning, a protocol on mutual
administrative assistance in customs matters should be incorporated into this Agreement;
CONSIDERING that, in order to conform with certain modifications to the nomenclature
of the customs tariffs of the Contracting Parties affecting products referred to in the initial
Agreement, it is necessary to update the tariff nomenclature of these products;
CONSIDERING that, in order to provide for more flexibility, it is appropriate to
empower the Joint Committee to decide on amendments to the provisions of the Protocols
to this Agreement;
CONSIDERING that, for the sake of clarity, the initial Agreement and the Agreement in
the form of an exchange of letters should be replaced by a composite new text in the form
of this Agreement;
TAKING INTO ACCOUNT that the bilateral trade agreements between Finland and
Sweden and the Faroe Islands cease to be in force on the entry into force of this
Agreement;
HAVE DECIDED, in pursuit of these objectives and considering that no provisions of this
Agreement may be interpreted as exempting the Contracting Parties from the obligations
which are incumbent upon them under other international agreements,
TO CONCLUDE THIS AGREEMENT:
                                                    0 r:
 ---pagebreak---                                           Article 1
The aim of this Agreement is:
(a)   to promote through the expansion of reciprocal trade the harmonious development
      of economic relations between the Community and the Faroe Islands and thus to
      foster in the Community and in the Faroe Islands the advance of economic activity,
      the improvement of living and employment conditions, and increased productivity
      and financial stability,
(b)   to provide fair conditions of competition for trade between the Contracting Parties,
(c)   to contribute in this way, by the removal of barriers to trade, to the harmonious
      development and expansion of world trade.
                                          Article 2
This Agreement shall apply to products originating in the Community or the Faroe
Islands:
(i)   which fall within Chapters 25 to 97 of the Harmonized System, other than those
       listed in Annex II to the Treaty establishing the European Community, and other
      than those listed in Annex I to this Agreement;
(ii)  which are specified in Protocols 1, 2 and 4 to this Agreement, with due regard to
      the arrangements provided for in those Protocols.
                                           Article 3
No new customs duty on imports shall be introduced in trade between the Community and
the Faroe Islands.
                                           Article 4
1.       The Community shall abolish customs duties on imports from the Faroe Islands.
2.       The Faroe Islands shall abolish customs duties on imports from the Community: to
this end Annex II sets out the provisions contained in the customs and fiscal legislation of
the Faroe Islands.
                                           Article 5
The provisions concerning the abolition of customs duties on imports shall apply also to
import duties of a fiscal nature.
The Faroe Islands may replace an import duty of a fiscal nature or the fiscal element of an
import duty by an internal tax.
                                                          06
 ---pagebreak---                                            Article 6
No new charge having an effect equivalent to a customs duty shall be introduced in trade
between the Community and the Faroe Islands.
Charges having an effect equivalent to customs duties on imports in trade between the
Community and the Faroe Islands shall be abolished.
                                           Article 7
No customs duty on exports or charge having equivalent effect shall be introduced in
trade between the Community and the Faroe Islands.
Customs duties on exports and charges having equivalent effect shall be abolished.
                                           Article 8
Protocol 1 lays down the tariff treatment and arrangements applicable to certain fish and
fishery products released for free circulation in the Community or imported into the Faroe
Islands.
                                           Article 9
Protocol 2 lays down the tariff treatment and arrangements applicable to certain products
obtained by processing agricultural products.
                                          Article 10
1.      In the event of specific rules being established as a result of the implementation of
its agricultural policy or of any alteration of the current rules, the Contracting Party in
question may adapt the arrangements resulting from this Agreement in respect of the
products which are the subject of those rules or alterations.
2.       In such cases the Contracting Party in question shall take due account of the
interests of the other Contracting Party. To this end the Contracting Parties may consult
each other within the Joint Committee established by Article 31.
                                          Article 11
Protocol 3 lays down the definition of the concept of "originating products" and methods
of administrative cooperation.
                                          Article 12
A Contracting Party which is considering the reduction of the effective level of its duties
or charges having equivalent effect applicable to third countries benefiting from most-
favoured-nation treatment, or which is considering the suspension of their application,
shall, as far as may be practicable, notify the Joint Committee not less than thirty days
before such reduction or suspension comes into effect. It shall take note of any
representations by the other Contracting Party regarding any distortions which might
result therefrom.
                                                       07
 ---pagebreak---                                            Article 13
1.       No new quantitative restriction on imports or measures having equivalent effect
shall be introduced in trade between the Community and the Faroe Islands.
2.       The Contracting Parties shall abolish quantitative restrictions on imports and any
measures having an effect equivalent to quantitative restrictions on imports.
                                           Article 14
1.       The Community reserves the right to modify the arrangements applicable to the
petroleum products falling within headings Nos 2710, 2711, ex 2712 (excluding
ozokerite, lignite wax and peat wax) and 2713 of the combined nomenclature upon
adoption of decisions under the common commercial policy for petroleum products or
upon establishment of a common energy policy.
In this event, the Community shall take due account of the interests of the Faroe Islands;
to this end it shall inform the Joint Committee, which shall meet under the conditions set
out in Article 33 (2).
2.       The Faroe Islands reserves the right to take similar action should it be faced with
like situations.
3.       Subject to paragraphs 1 and 2, this Agreement shall not prejudice the non-tariff
rules applied to imports of petroleum products.
                                           Article 15
1.       The Contracting Parties declare their readiness to foster, so far as their agricultural
policies allow, the harmonious development of trade in agricultural products to which this
Agreement does not apply.
2.       The Contracting Parties shall apply their rules in veterinary, health and plant health
matters in a non-discriminatory fashion and shall not introduce any new measures that
have the effect of unduly obstructing trade.
3.       The Contracting Parties shall examine, imder the conditions set out in Article 35,
any difficulties that might arise in their trade in agricultural products and shall endeavour
to seek appropriate solutions.
                                           Article 16
The Home Government of the Faroe Islands shall take the necessary control measures to
ensure the correct application of the reference price fixed or to be fixed by the
Community, referred to in Article 2 of Protocol 1.
The Contracting Parties shall ensure the correct application of the definition of the
concept of "originating products" and methods of administrative co-operation, laid down
in Protocol 3.
                                           Article 17
Protocol 4 lays down the special provisions applicable to imports of certain agricultural
products other than those listed in Protocol 1.
                                                        08
 ---pagebreak---                                           Article 18
Protocol 5 lays down the provisions on mutual assistance between administrative
authorities in customs matters.
                                          Article 19
The Contracting Parties reaffirm their commitment to grant each other the most-
favoured-nation treatment in accordance with the General Agreement on Tariffs and
Trade 1994.
This Agreement shall not preclude the maintenance or establishment of customs unions,
free trade areas or arrangements for frontier trade, except insofar as they alter the trade
arrangements provided for in this Agreement, in particular the provisions concerning rules
of origin.
                                          Article 20
The Contracting Parties shall refrain from any measure or practice of an internal fiscal
nature which, whether directly or indirectly, discriminates between the products of one
Contracting Party and like products originating in the territory of the other Contracting
Party.
Products exported to the territory of one of the Contracting Parties may not benefit from
repayment of internal taxation in excess of the amount of direct or indirect taxation
imposed on them.
                                          Article 21
Payments relating to trade in goods and the transfer of such payments to the Member
State of the Community in which the creditor is resident or to the Faroe Islands shall be
free from any restrictions.
                                          Article 22
This Agreement shall not preclude prohibitions or restrictions on imports, exports or
goods in transit justified on grounds of public morality, law and order or public security,
the protection of life and health of humans, animals or plants, the protection of national
treasures of artistic, historic or archaeological value,' the protection of industrial and
commercial property, or rules relating to gold or silver.
Such prohibitions or restrictions must not, however, constitute a means of arbitrary
discrimination or a disguised restriction on trade between the Contracting Parties.
                                          Article 23
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;
                                                          09
 ---pagebreak--- (b)      which relate to 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 time of war or serious
         international tension.
                                            Article 24
1.       The Contracting Parties shall refrain from any measure likely to jeopardize the
fulfilment of the objectives of this Agreement.
2.       They shall take any general or specific measures required to fulfil their obligations
under this Agreement.
If either Contracting Party considers that the other Contracting Party has failed to fulfil an
obligation under this Agreement, it may take appropriate measures under the conditions
and in accordance with the procedures laid down in Article 29.
                                            Article 25
1.       The following are incompatible with the proper functioning of this Agreement
insofar as they may affect trade between the Community and the Faroe Islands:
       (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 as
              regards the production of or trade in goods;
       (ii)   abuse by one or more undertakings of a dominant position in the territories of
              the Contracting Parties 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.        Should a Contracting Party consider that a given practice is incompatible with this
Article, it may take appropriate measures under the conditions and in accordance with the
procedures laid down in Article 29.
                                            Article 26
Where an increase in imports of a given product is or is likely to be seriously detrimental
to any production activity carried on in the territory of one of the Contracting Parties and
where this increase is due to:
(i)      the partial or total reduction in the importing Contracting Party, as provided for in
         this Agreement, of customs duties and charges having equivalent effect levied on
         the product in question; and
(ii)     the fact that the duties or charges having equivalent effect levied by the exporting
          Contracting Party on imports of raw materials or intermediate products used in the
          manufacture of the product in question are significantly lower than the
          corresponding duties or charges levied by the importing Contracting Party:
the Contracting Party concerned may take appropriate measures under the conditions and
in accordance with the procedures laid down in Article 29.
                                                             10
 ---pagebreak---                                             Article 27
If one of the Contracting Parties finds that dumping is taking place in trade with the other
Contracting Party, it may take appropriate measures against this practice in accordance
with the Agreement on Implementation of Article VI of the General Agreement on Tariffs
and Trade 1994, under the conditions and in accordance with the procedures laid down in
Article 29.
                                            Article 28
If serious disturbances arise in any sector of the economy or if difficulties arise which
could bring about serious deterioration in the economic situation of a region, the
Contracting Party concerned may take appropriate measures under the conditions and in
accordance with the procedures laid down in Article 29.
                                            Article 29
1.       In the event of a Contracting Party subjecting imports of products liable to give
rise to the difficulties referred to in Articles 26 and 28 to an administrative procedure, the
purpose of which is to provide rapid information on the trend of trade flows, it shall
inform the other Contracting Party.
2.       In the cases specified in Articles 24 to 28, before taking the measures provided for
therein or, in cases to which paragraph 3 (d) of this Article applies, as soon as possible,
the Contracting Party in question shall supply the Joint Committee with all relevant
information required for a thorough examination of the situation with a view to seeking a
solution acceptable to the Contracting 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 Joint Committee and shall be
the subject of periodical consultations within the Committee, particularly with a view to
their abolition as soon as circumstances permit.
3.       For the implementation of paragraph 2, the following provisions shall apply:
         (a)     as regards Article 25, either Contracting Party may refer the matter to the
                 Joint Committee if it considers that a given practice is incompatible with
                 the proper functioning of this Agreement within the meaning of paragraph
                  1 of that Article.
                 The Contracting Parties shall provide the Joint Committee with all relevant
                 information and shall give it the assistance it requires in order to examine
                 the case and, where appropriate, to eliminate the practice objected to.
                 If the Contracting Party in question fails to put an end to the practice
                 objected to within the period fixed by the Joint Committee, or in the
                 absence of agreement in the Joint Committee within three months of the
                 matter being referred to it, the Contracting Party concerned may adopt any
                 safeguard measures it considers necessary to deal with the serious
                 difficulties resulting from the practices in question; in particular it may
                 withdraw tariff concessions;
                                                           11
 ---pagebreak---         (b)     as regards Article 26, the difficulties arising from the situation referred to
               in that article shall be referred for examination to the Joint Committee,
               which may take any decision needed to put an end to such difficulties.
               If the Joint Committee or the exporting Contracting Party has not taken a
               decision putting an end to the difficulties within thirty days of the matter
               being referred, the importing Contracting Party is authorized to levy a
               compensatory charge on the product imported.
               The compensatory charge shall be calculated according to the incidence on
               the value of the goods in question of the tariff disparities in respect of the
               raw materials or intermediate products incorporated therein;
        (c)    as regards Article 27, consultation in the Joint Committee shall take place
               before the Contracting Party concerned takes the appropriate measures;
        (d)    where exceptional circumstances requiring immediate action make prior
               examination impossible, the Contracting Party concerned may, in the
                situations specified in Article 26, 27 and 28 and also in the case of export
               aids having a direct and immediate incidence on trade, apply forthwith the
               precautionary measures strictly necessary to remedy the situation.
                                          Article 30
Where one or more Member States of the Community or the Faroe Islands is in difficulties
or is seriously threatened with difficulties as regards its balance of payments, the
Contracting Party concerned may take the necessary safeguard measures. It shall inform
the other Contracting Party forthwith.
                                          Article 31
1.      A Joint Committee is hereby established which shall be responsible for the
administration of this Agreement and shall ensure its proper implementation. For this
purpose, it shall make recommendations and take decisions in the cases provided for in
this Agreement. These decisions shall be put into effect by the Contracting Parties in
accordance with their own rules.
2.      For the purpose of the proper implementation of this Agreement the Contracting
Parties shall exchange information and, at the request of either Party, shall hold
consultations within the Joint Committee.
3.      The Joint Committee shall adopt its own rules of procedure.
                                          Article 32
1.      The Joint Committee shall consist of representatives of the Contracting Parties .
2.      The Joint Committee shall act by mutual agreement.
                                          Article 33
1.     Each Contracting Party shall preside in turn over the Joint Committee, in
accordance with the arrangements to be laid down in its rules of procedure.
                                                        12
 ---pagebreak--- 2.       The Chairman shall convene meetings of the Joint Committee at least once a year
in order to review the general functioning of this Agreement.
The Joint Committee shall, in addition, meet whenever special circumstances so require, at
the request of either Contracting Party, in accordance with the conditions to be laid down
in its rules of procedure.
3.       The Joint Committee may decide to set up any working party that can assist it in
carrying out its duties.
                                          Article 34
1.       The Joint Committee may amend the provisions of the Protocols to this
Agreement.
2.       In the event of modifications to the nomenclature of the customs tariffs of the
Contracting Parties affecting products referred to in this Agreement, the Joint Committee
may adopt the tariff nomenclature of these products to conform with such modifications.
                                          Article 35
1.       Where a Contracting Party considers that it would be useful in the common
interest of both Contracting Parties to develop the relations established by this Agreement
by extending them to fields not covered thereby, it shall submit a reasoned request to the
other Contracting Party.
The Contracting Parties may instruct the Joint Committee to examine this request and,
where appropriate, to make recommendations to them, particularly with a view to opening
negotiations.
2.       The agreements resulting from the negotiations referred to in paragraph 1 will be
subject to ratification or approval by the Contracting Parties in accordance with their own
procedures.
                                          Article 36
At the request of the Faroe Islands, the Community will consider
         improving the access possibilities for specific products;
         extending its tariff concessions for Faroese fishery products to include new fish
         species caught by Faroese fishing vessels based and operating in the North
         Atlantic, or to include fishery products pertaining thereto not currently produced
         by the Faroese fishing industry. These new fish species or fishery products could
         be imported free of duty into the Community, subject to the necessary quantitative
         limitations should the new fish species or fishery products be of a sensitive nature
         in the Community.
                                          Article 37
The Annexes and Protocols to this Agreement shall form an integral part thereof.
                                                      13
 ---pagebreak---                                           Article 38
Either Contracting Party may denounce this Agreement by notifying the other Contracting
Party. This Agreement shall cease to be in force twelve months after the date of such
notification.
                                          Article 39
This Agreement shall apply, on the one hand, to the territories to which the Treaty
establishing the European Community is applied and under the conditions laid down in
that Treaty and, on the other hand, to the territory of the Faroe Islands.
                                          Article 40
1.       This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish,
French, German, Greek, Italian, Portuguese, Spanish, Swedish and Faroese languages,
each of these texts being equally authentic.
2.       It will be approved by the Contracting Parties in accordance with their own
procedures.
3.       It shall enter into force on 1 January 1997, provided that the Contracting Parties
have notified each other before that date that the procedures necessary to this end have
been completed. After this date, this Agreement shall enter into force on the first day of
the third month following such notification.
4.       The provisions of the following agreements shall cease to be in force on the entry
into force of this Agreement:
      - the Agreement between the European Economic Community, of the one part, and
         the Government of Denmark and the Home Government of the Faroe Islands, of
         the other part, signed on 2 December 1991;
      - the Agreement in the form of an exchange of letters between the European
         Community, of the one part, and the Government of Denmark and the Home
         Government of the Faroe Islands, of the other part, amending Tables I and II of
         the Annex to Protocol 1 of the above-mentioned Agreement, signed on 8 March
         1995;
      - the bilateral trade agreements between Finland and Sweden and the Faroe Islands.
Done at Brussels on the           day of        in the year one thousand nine hundred and
ninety-six.
For the European Community
For the Government of Denmark and the Home Government of the Faroe Islands
                                                          14
 ---pagebreak---                                        ANNEX I
           List of products referred to in Article 2 (i) of this Agreement
  CN code                                   Description
3502        Albumins (including concentrates of two or more whey proteins,
            containing by weight more than 80 % whey proteins, calculated on the
            dry matter), albuminates and other albumin derivatives:
            - Egg albumin:
3502 11     --   Dried:
3502 11 90  -      Other
3502 19     -    Other:
3502 19 90  -      Other
3502 20     - Milk albumin, including concentrates of two or more whey proteins:
            -    Other:
3502 20 91         Dried (for example, in sheets, scales, flakes, powder)
3502 20 99  -      Other
                                                     5
 ---pagebreak---                                         ANNEX II
For the purposes of Article 4 (2) to this Agreement, the customs and fiscal legislation
of the Faroe Islands contains the following provisions:
(a) a customs tariff based upon the Harmonized System and respecting the GATT
     obligations of Denmark;
(b) a duty-free treatment for goods of Community origin, with the exceptions set out in
     Protocols 2 and 4;.
(c) a system of indirect taxation based upon the following elements:
     - a value-added tax (VAT), based upon the same principles as those which apply in
        the Community, including non-discrimination of imported goods; and
     - a system of excise duties, levied equally upon domestic production and imported
        goods.
                                            16
 ---pagebreak---                                             PROTOCOL 1
     concerning the tariff treatment and arrangements applicable to certain fish and fishery
  products released for free circulation in the Community or imported into the Faroe Islands
                                               Article 1
As regards the products listed in the Annex to this Protocol and originating in the Faroe Islands:
 1. no new customs duties shall be introduced in trade between the Community and the Faroe
     Islands;
2. the customs duties and other conditions to be applied on import into the Community shall be as
     indicated in the Annex.
                                               Article 2
The preferential duty rates indicated in the Annex apply only if the free-at-frontier price, which is
determined by the Member States in accordance with Article 22 of Regulation (EEC) N° 3759/92
(OJ N° L 388 of 31.12.1992), as last amended by Regulation (EC) N° 3318/94 (OJ N° L 350 of
31.12.1994), is at least equal to the reference price fixed, or to befixed,by the Community for the
products under consideration or the categories of the products concerned.
                                               Article S
For the purpose of eliminating customs duties, reference ceilings are established in the Annex for
certain products originating in the Faroe Islands.
Should imports of these products exceed the reference ceiling, the Community may introduce the
full customs duty.
                                               Article 4
The Faroe Islands shall abolish tariffs and duties on imports offish andfisheryproducts originating,
in the Community.
                                                 17
 ---pagebreak---                                                   ANNEX
   The customs duties and other conditions to be applied on import into the Community of
    products originating in and coming from the Faroe Islands shall be as indicated below
                                                  TABLE I
     CN code                              Description            Rate of      Tariff quota
                                                                   duty           (TQ)
                                                                            Reference ceiling
                                                                                  (RC)
       (1)                                    (2)                   (3)            (4)
   0301           Live fish:
ex 0301 91 90     —    Trout of the species Oncorhynchus mykiss      0*         TQN°1
   0301 92 00     — Eels (Anguilla spp.)                             0
ex 0301 99 11     —      Atlantic salmon (Salmo salar)               0          TQN°2
                                                             18
 ---pagebreak---        (1)                                (2)                          (3)          (4)
   0302       Fish, fresh or chilled, excluding fish fillets and other
              fish meat of heading No 0304:
ex 0302 1190  — Trout of the species Oncorhynchus mykiss                        TQN°1
ex 0302 12 00 ~ Atlantic salmon (Salmo salar)                                   TQN°2
   0302 19 00 — Other
   0302 21 10 — Lesser or Greenland           halibut (Reinhardtius
                    hippoglossoides)
   0302 21 30 — Atlantic halibut (Hippoglossus hippoglossus)
   0302 22 00 — Plaice (Pleuronectes platessa)
   0302 23 00 ~ Sole (Solea spp.)
   0302 29 10 — Megrim (Lepidorhombus spp)                                 Statistical survey
   0302 29 90 ™ Other                                                      Statistical survey
   0302 40    — Herrings (Clupea harengus, Clupea pallasii), excluding
                livers and roes:
   0302 40 05 — From 1 January to 14 February                                  RCN° 1
   0302 40 98 ~ From 16 June to 31 December                                    RCN° 1
   0302 50 10 — Cod of the species Gadus morhua
   0302 62 00 — Haddock (Melanogrammus aeglefmus)
   0302 63 00 — Coalfish (Pollachius virens)
ex 0302 64 05 — Mackerel of the species Scomber scombrus, from                 RCN°2
                    1 January to 14 February
ex 0302 64 98 — Mackerel of the species Scomber scombrus, from                 RCN°2
                    16 June to 31 December
   0302 65    ~ Dogfish and other sharks:
   0302 65 20 — Dogfish of the species Squalus acanthias
   0302 65 50 — Dogfish of the species Scyliorhinus spp.
   0302 65 90 --- Other
   0302 66 00 -- Eels (Anguilla spp.)
                                                19
 ---pagebreak---        (1)                              (2)                        (3)         (4)
              —    Redfish (Sebastes spp.):
   0302 69 31        Of the species Sebastes marinus                0       RCN°6
ex 0302 69 33        Of the species Sebastes mentella               0       RCN°6
   0302 69 41 —    Whiting (Merlangus merlangus)                    0
   0302 69 45 —    Ling (Molva spp.)                                0
ex 0302 69 65 —    Hake of the species Merluccius merluccius        0
   0302 69 81 —    Monkfish (Lophius spp.)                          0
   0302 69 85 —    Blue whiting (Micromesistius poutassou or Gadus  0
                   poutassou)
   0302 69 99 —    Other                                            0  Statistical survey
   0302 70 00 — Livers and roes                                    0
                                                20
 ---pagebreak---        (1)                                 (2)                           (3)   (4)
   0303       Fish, frozen, excluding fish fillets and other fish meat
              of heading No 0304:
ex 0303 21 90 —     Trout of the species Oncorhynchus mykiss              0  TQN°1
ex 0303 22 00 — Atlantic salmon (Salmo salar)                             0  TQN°2
   0303 29 00 — Other                                                     0
   0303 31 10 —     Lesser or Greenland           halibut  (Reinhardtius  0
                    hippoglossoides)
   0303 3130  —     Atlantic halibut (Hippoglossus hippoglossus)          0
   0303 32 00 — Plaice (Pleuronectes platessa)                            0
   0303 33 00 — Sole (Solea spp.)                                         0
   0303 39 10 —     Flounder (Platichthys flesus)                         0
   0303 39 30 —     Fish of the genus Rhombosolea                         0
   0303 39 80 —     Other                                                 0
   0303 50    — Herrings (Clupea harengus, Clupea pallasii), excluding
                livers and roes:
   0303 50 05 — From 1 January to 14 February                             0  RCN° 1
   0303 50 98 — From 16 June to 31 December                               0  RCN° 1
   0303 60 11 ~ Cod of the species Gadus morhua                           0
   0303 73 00 — Coalfish (Pollachius virens)                              0
ex 0303 74 10 —       Mackerel of the species Scomber scombrus, from      0
                      1 January to 14 February
ex 0303 74 20 —       Mackerel of the species Scomber scombrus, from
                      16 June to 31 December
   0303 75    — Dogfish and other sharks:
   0303 75 20 —     Of the species Squalus acanthias                      0
   0303 75 50 —     Of the species Scyliorhinus spp.                      0
   0303 75 90 ™     Other                                                 0
                                                      21
 ---pagebreak---        (1)                              (2)                        (3)         (4)
   0303 79    — Other:
              —    Redfish (Sebastes spp.):
   0303 79 35        Redfish of the species Sebastes marinus        0       RCN°6
ex 0303 79 37        Redfish of the species Sebastes mentella       0      RCN°6
   0303 79 45 —    Whiting (Merlangus merlangus)                    0
   0303 79 51 —    Ling (Molva spp.)                                0
   0303 79 81 —    Monkfish (Lophius spp.)                          0
   0303 79 83 —    Blue whiting (Micromesistius poutassou or Gadus  0
                   poutassou)
   0303 79 96 —    Other                                            0  Statistical survey
   0303 80 00 — Livers and roes                                     0
                                                  22
 ---pagebreak---         (1)                                (2)                   (3)   (4)
   0304        Fish fillets and other fish meat (whether or not
               minced), fresh, chilled or frozen:
   0304 10     — Fresh or chilled:
               — Fillets:
               — Of freshwater fish:
ex 0304 10 11  —     Of trout of the species Oncorhynchus mykiss     TQN° 1
ex 0304 10 13  —     Of Atlantic salmon (Salmo salar)                TQN°2
              — Other:
ex 0304 10 31 —      Of cod of the species Gadus morhua
   0304 10 33 —      Of coalfish (Pollachius virens)                 RCN°7
   0304 10 35 —      Of redfish (Sebastes spp.)                      RCN°6
   0304 10 38 —      Other                                           RCN°7
              ~ Other fish meat (whether or not minced):
   0304 10 91 — Of fresh water fish
              ™    Other:
              —      Flaps of herring:
   0304 10 94          From 1 January to 14 February
   0304 10 96          From 16 June to 31 December
   0304 10 98 —      Other
   0304 20    — Frozen fillets:
              -- Of freshwater fish:
ex 0304 20 11      Of trout of the species Oncorhynchus mykiss       TQN°1
ex 0304 20 13 — Of Atlantic salmon (Salmo salar)                     TQN°2
                                                   23
 ---pagebreak---        (1)                                (2)                          (3)         (4)
              • Of cod (Gadus morhua, Gadus macrocephalus, Gadus
                 Ogac) and offish of the species Boreogadus saida:
ex 0304 20 29 -   Of cod of the species Gadus morhua
   0304 20 31 • Of coalfish (Pollachius virens)                                RCN°3
   0304 20 33 • Of haddock (Melanogrammus aeglefmus)
              • Of redfish (Sebastes spp.) :
   0304 20 35 -   Of the species Sebastes marinus                              RCN°6
ex 0304 20 37 -   Of the species Sebastes mentella                             RCN°6
   0304 20 41 • Of whiting (Merlangus merlangus)
   0304 20 43 - Of ling (Molva spp.)                                           RCN°8
ex 0304 20 53 -   Of mackerel of the species Scomber scombrus
   0304 20 57 •-  Of hake of the genus Merluccius                              TQN°3
   0304 20 71 • Ofplaice (Pleuronectes platessa)
   0304 20 75 • Of herring (Clupea harengus, Clupea pallasii)                  RCN° 1
   0304 20 96 • Other:
              •-  Of blue whiting (Micromesistius poutassou or Gadus           RCN°9
                  poutassou)
              --  Other than of blue whiting           (Micromesistius     Statistical survey
                  poutassou or Gadus poutassou)
   0304 90     Other:
   0304 90 05 • Surimi                                                     Statistical survey
              - Other:
ex 0304 90 10 --  Of freshwater fish:
                    Of trout of the species Oncorhynchus mykiss                TQN° 1
                    Of Atlantic salmon (Salmo salar)                           TQN°2
                                                     24
 ---pagebreak---     (1)                            (2)                       (3)         (4)
           — Other:
           —  Of herring (Clupea harengus, Clupea pallasii):
0304 90 20      From 1 January to 14 February                 0       RCN°1
0304 90 27      From 16 June to 31 December                   0      RCN°1
0304 90 38      Of cod of the species Gadus morhua            0
0304 90 41 —  Of coalfish (Pollachius virens)                 0      RCN°3
0304 90 45 —  Of haddock (Melanogrammus aeglefinus)           0
0304 90 47      Of hake of the genus Merluccius               0      TQN°3
0304 90 57 —  Of monkfish (Lophius spp.)                      0
0304 90 59 —  Of blue whiting (Micromesistius poutassou or    0      RCN°9
              Gadus poutassou)
0304 90 97 —  Other                                           0  Statistical survey
                                                25
 ---pagebreak---        (1)                                  (2)                             (3)   (4)
   0305       Fish, dried, salted or in brine; smoked fish, whether or
              not cooked before or during the smoking process;
              flours, meals and pellets of fish, fit for human
              consumption:
   0305 10 00 — Flours, meals and pellets of fish, fit for human
                consumption
   0305 20 00 — Livers and roes, dried, smoked, salted or in brine
   0305 30    — Fish fillets, dried, salted or in brine, but not smoked:
ex 0305 30 19 —     Of cod of the species Gadus morhua
ex 0305 30 30 « Of Atlantic salmon (Salmo salar), salted or in brine
   0305 30 50 — Of lesser or Greenland halibut                (Reinhardtius     RCN°4
                  hippoglossoides), salted or in brine
   0305 30 90 — Other                                                           RCN°4
              — Smoked fish, including fillets:
ex 0305 41 00 — Atlantic salmon (Salmo salar)                                   RCN°5
   0305 42 00 ~ Herrings (Clupea harengus, Clupea pallasii)
   0305 49 10 —     Lesser or Greenland            halibut    (Reinhardtius     RCN°5
                    hippoglossoides)
   0305 49 20 —     Atlantic halibut (Hippoglossus hippoglossus)                RCN°5
ex 0305 49 30 —     Mackerel of the species Scomber scombrus                    RCN°5
ex 0305 49 45 —     Trout of the species Oncorhynchus mykiss                    RCN°5
   0305 49 50 —     Eels (Anguilla spp.)                                        RCN°5
   0305 49 80 —     Other                                                       RCN°5
              — Dried fish, whether or not salted but not smoked:
ex 0305 51 10 —     Cod of the species Gadus morhua, dried, unsalted
ex 0305 51 90 —     Cod of the species Gadus morhua, dried, salted
                                                         26
 ---pagebreak---        (1)                               (2)                            (3)    (4)
              — Fish, salted but not dried or smoked and fish in brine:
   0305 61 00 — Herrings (Clupea harengus, Clupea pallasii)              0  RC N° 12
ex 0305 62 00 — Cod of the species Gadus morhua                          0
   0305 69    — Other:
   0305 69 90 — Other                                                    0  RC N° 10
                                                        27
 ---pagebreak---     (1)                                (2)                          (3)   (4)
0306       Crustaceans, whether in shell or not, live, fresh,
           chilled, frozen, dried, salted or in brine; crustaceans,
           in shell, cooked by steaming or by boiling in water,
           whether or not chilled, frozen, dried, salted or in
           brine; flours, meals and pellets of crustaceans, fit for
           human consumption:
           — Frozen:
0306 13    — Shrimps and prawns:
0306 13 10 —     Of the family Pandalidae                            0  RCN°11
0306 13 90 —     Other                                               0
0306 19 30 —     Norway lobsters (Nephrops norvegicus)               0
           — Not frozen:
0306 29 30 —     Norway lobsters (Nephrops norvegicus)               0
                                                28
 ---pagebreak---     (1)                                 (2)                            (3) (4)
0307       Molluscs, whether in shell or not, live, fresh, chilled,
           frozen, dried, salted or in brine; aquatic invertebrates
           other than crustaceans and molluscs, live, fresh,
           chilled, frozen, dried, salted or in brine; flours, meals
           and pellets of aquatic invertebrates other than
           crustaceans, fit for human consumption:
           — Scallops, including queen scallops, of the genera Pecten,
             Chlamys or Placopecten:
0307 2100  — Live, fresh or chilled                                     0
0307 29    -- Other:
0307 29 10 —     Coquilles St. Jacques (Pecten maximus), frozen         0
0307 29 90 —     Other                                                  0
                                                      29
 ---pagebreak---        (1)                                 (2)                         (3)   (4)
   1604       Prepared or preserved fish; caviar and           caviar
              substitutes prepared from fish eggs:
              — Fish, whole or in pieces, but not minced:
ex 1604 1100  — Atlantic salmon (Salmo salar)                              TQN°4
   1604 12    — Herrings:
   1604 12 10 —    Fillets, raw, merely coated with batter or              TQN°5
                   breadcrumbs, whether or not prefried in oil, deep
                   frozen
              —    Other:
   1604 12 91 —      In airtight containers                                RC N° 12
   1604 12 99 —-     Other                                                 RC N° 12
   1604 15    — Mackerel:
ex 1604 15 11 —      Fillets of mackerel of the species Scomber            TQN°5
                     scombrus
ex 1604 15 19 —      Other, of mackerel of the species Scomber             TQN°5
                     scombrus
   1604 19    — Other:
ex 1604 19 10 —    Trout of the species Oncorhynchus mykiss                TQN°4
   1604 19 91 —      Fillets, raw, merely coated with batter or
                     breadcrumbs, whether or not prefried in oil, deep
                     frozen
              —      Other:
   1604 19 92          Cod    (Gadus    morhua,  Gadus ogac,    Gadus       TQN°6
                       macrocephalus)
   1604 19 93                                                               TQN°6
                       Coalfish (Pollachius virens)
   1604 19 94                                                               TQN°6
                       Hake (Merluccius spp., Urophycis spp.)
   1604 19 95
                       Alaska pollack (Theragra chalcogramma) and           TQN°6
                       pollack (Pollachius pollachius)
   1604 19 98          Other                                                TQN°6
                                                   30
 ---pagebreak---        (1)                               (2)                  (3)   (4)
   1604 20    — Other prepared or preserved fish:
   1604 20 05 ~ Preparations of surimi                         0  TQN°6
              — Other:
ex 1604 20 10 —   Of Atlantic salmon (Salmo salar)             0  TQN°4
ex 1604 20 30 —   Of Trout of the species Oncorhynchus mykiss  0  TQN°4
ex 1604 20 50 —   Of mackerel of the species Scomber scombrus  0  TQN°5
   1604 20 90 —   Of other fish:
              —    Of herring                                  0  TQN°5
                   Other than of herring                       0  TQN°6
                                                  31
 ---pagebreak---        (1)                             (2)                           (3)   (4)
   160S       Crustaceans, molluscs and other aquatic invertebrates,
              prepared or preserved:
   1605 20    - Shrimps and prawns:
   1605 20 10 ~ In airtight containers                                0  TQN°7
              -  Other:
   1605 20 91 -    In immediate packings of a net content not         0  TQN°7
                   exceeding 2 kg
   1605 20 99 -    Other                                              0  TQN°7
ex 1605 40 00 - Norway lobsters (Nephrops norvegicus)                 0  TQN°7
                                              32
 ---pagebreak---     (1)                                (2)                           (3) (4)
2301       Flours, meals and pellets, of meat or meat offal, of fish
           or of crustaceans, molluscs or other aquatic
           invertebrates, unfit for human consumption; greaves:
2301 20 00 - Flours, meals and pellets, of fish or of crustaceans,    0
             molluscs or other aquatic invertebrates
                                                33
 ---pagebreak---                                                          TABLE II
     CNcode                                     Description                        Rate of Tariff quota (TQ)
                                                                                    duty       in tonnes
                                                                                           Reference ceiling
                                                                                                  (RC)
       (1)                                           (2)                             (3)           (4)
   0301                Live fish:                                                            TQ N° 1 W
                                                                                                   700
ex 0301 91 90          —    Trout of the species Oncorhynchus mykiss
   0302                Fish, fresh or chilled, excluding flsh fillets and other
                       fish meat of heading No 0304:
ex 0302 1190           —    Trout of the species Oncorhynchus i?tykiss
   0303                Fish, frozen, excluding fish fillets and other fish meat
                       of heading No 0304:
ex 0303 21 90          —     Trout of the species Oncorhynchus mykiss
   0304                Fish fillets and other fish meat (whether or not
                       minced), fresh, chilled or frozen:
   0304 10             — Fresh or chilled:
                       — Fillets:
ex 0304 10 11          —       Of trout of the species Oncorhynchus mykiss
   0304 20             — Frozen fillets:
ex 0304 20 11          —     Of trout of the species Oncorhynchus mykiss
   0304 90             — Other: ^
ex 0304 90 10          —     Of trout of the species Oncorhynchus mykiss
W Figures refer to the commercial presentation 'whole and gutted'. For imports falling under HS code 0304, a
    coefficient of 2 shall be applied for quantities drawn from this tariff quota.
                                                                 34
 ---pagebreak---         (1)                                          (2)                           (3)         (4)
   0301                Live flsh:                                                          TQ N° 2 W
                                                                                              4.925
ex 030199 11           —       Atlantic salmon (Salmo salar)
   0302                Fish, fresh or chilled, excluding fish fillets and other
                       fish meat of heading No 0304:
ex 0302 12 00          — Atlantic salmon (Salmo salar)
   0303                Fish, frozen, excluding fish fillets and other fish meat
                       of heading No 0304:
ex 0303 22 00          ~ Atlantic salmon (Salmo salar)
   0304                Fish fillets and other fish meat (whether or not
                       minced), fresh, chilled or frozen:
   0304 10             — Fresh or chilled:
                       -- Fillets:
ex 0304 10 13          —       Of Atlantic salmon (Salmo salar)
   0304 20             — Frozen fillets:
ex 0304 20 13          —     Of Atlantic salmon (Salmo salar)
   0304 90             — Other:
ex 0304 90 10          —     Of freshwater fish:
                       —       Of Atlantic salmon (Salmo salar)
W Figures refer to the commercial presentation 'whole and gutted'. For imports falling under HS code 0304, a
    coefficient of 2 shall be applied for quantities drawn from this tariff quota.
                                                                 35
 ---pagebreak---     (1)                                (2)                  (3)   (4)
0304       Fish fillets and other flsh meat (whether or not     TQN°3
           minced), fresh, chilled or frozen:                    110
0304 20    - Frozen fillets:
0304 20 57 -    Of hake of the genus Merluccius              0
0304 90    - Other:
0304 90 47          Of hake of the genus Merluccius          0
                                                    36
 ---pagebreak---        (1)                                 (2)                 (3)   (4)
   1604       Prepared or preserved fish; caviar and caviar        TQN°4
              substitutes prepared from fish eggs:                  400
              - Fish, whole or in pieces, but not minced:
ex 1604 1100  ~ Atlantic salmon (Salmo salar)                   0
   1604 19    -   Other:
ex 1604 19 10 -    Trout of the species Oncorhynchus mykiss     0
   1604 20    - Other prepared or preserved fish:
              -  Other:
ex 1604 20 10 -    Of Atlantic salmon (Salmo salar)             0
ex 1604 20 30 -    Of Trout of the species Oncorhynchus mykiss  0
                                                 37
 ---pagebreak---         (1)                              (2)                          (3)   (4)
   1604       Prepared or preserved fish; caviar and           caviar     TQN°5
              substitutes prepared from fish eggs:                         150
              — Fish, whole or in pieces, but not minced:
   1604 12    — Herrings:
   1604 12 10 —    Fillets, raw, merely coated with batter or          0
                   breadcrumbs, whether or not prefried in oil, deep
                   frozen
   1604 15    — Mackerel:
ex 1604 15 11 —      Fillets of mackerel of the species      Scomber   0
                     scombrus
ex 1604 15 19 —      Other, of mackerel of the species Scomber         0
                     scombrus
   1604 20    — Other prepared or preserved fish:
ex 1604 20 50 —    Of mackerel of the species Scomber scombru          0
ex 1604 20 90 —    Of other fish:
              —      Of herring                                        0
                                                      38
 ---pagebreak---        (1)                                 (2)                       (3)   (4)
   1604       Prepared or preserved flsh; caviar and          caviar     TQN°6
              substitutes prepared from fish eggs:                        1200
              - Fish, whole or in pieces, but not minced:
   1604 19 92          Cod (Gadus morhua,         Gadus ogac, Gadus   0
                       macrocephalus)
   1604 19 93          Coalfish (Pollachius virens)                   0
   1604 19 94          Hake (Merluccius spp., Urophycis spp.)         0
   1604 19 95          Alaska pollack (Theragra chalcogramma) and     0
                       pollack (Pollachius pollachius)
   1604 19 98
                       Other                                          0
   1604 20
              - Other prepared or preserved fish:
   1604 20 05
              — Preparations of surimi                                0
              -- Other
ex 1604 20 90
              ---  Of other fish:
                                                                      0
              —       Other than of herring
                                                      39
 ---pagebreak---        (1)                              (2)                          (3)   (4)
   1605       Crustaceans, molluscs and other aquatic invertebrates,     TQN°7
              prepared or preserved:                                      2000
   1605 20    — Shrimps and prawns:
   1605 20 10 — In airtight containers                                0
              — Other:
   1605 20 91 —    In immediate packings of a net content not         0
                   exceeding 2 kg
   1605 20 99 —    Other                                              0
ex 1605 40 00 • Norway lobsters (Nephrops norvegicus)                 0
 ---pagebreak---        (1)                                          (2)                                (3)     (4)
  0302                Fish, fresh or chilled, excluding flsh fillets and other              RC N°l (D
                      flsh meat of heading No 0304:                                           2.000
  0302 40             — Herrings (Clupea harengus, Clupea pallasii), excluding
                        livers and roes:
  0302 40 05          — From 1 January to 14 February
  0302 40 98          — From 16 June to 31 December
  0303                Fish, frozen, excluding fish fillets and other flsh meat
                      of heading No 0304:
  0303 50             — Herrings (Clupea harengus, Clupea pallasii), excluding
                        livers and roes:
  0303 50 05          — From 1 January to 14 February
  0303 50 98          — From 16 June to 31 December
  0304                Fish flilets and other flsh meat (whether or not
                      minced), fresh, chilled or frozen:
  0304 20             — Frozen fillets:
  0304 20 75          — Of herring (Clupea harengus, Clupea pallasii)
  0304 90             — Other:
                      —       Ofherring (Clupea harengus, Clupea pallasii):
  0304 90 20                    From 1 January to 14 February
  0304 90 27                    From 16 June to 31 December
M Figures refer to the commercial presentation 'whole and gutted'. For imports falling under HS code 0304, a
   coefficient of 2 shall be applied for quantities drawn from this reference ceiling.
                                                           41
 ---pagebreak---        (1)                               (2)                           (3)   (4)
   0302       Fish, fresh or chilled, excluding flsh fillets and other     RCN°2
              flsh meat of heading No 0304:                                 3.000
ex 0302 64 05 — Mackerel of the species Scomber scombrus, from          0
                   1 January to 14 February
ex 0302 64 98 — Mackerel of the species Scomber scombrus, from          0
                   16 June to 31 December
                                                      42
 ---pagebreak---      (1)                               (2)                  (3)   (4)
0304       Fish fillets and other flsh meat (whether or not     RCN°3
           minced), fresh, chilled or frozen:                   25.000
0304 20    - Frozen fillets:
0304 20 31 — Of coalfish (Pollachius virens)                 0
0304 90    - Other:
0304 90 41 —      Of coalfish (Pollachius virens)            0
                                          43
 ---pagebreak---     (1)                                 (2)                         (3)   (4)
0305       Fish, dried, salted or in brine; smoked flsh, whether or     RCN°4
           not cooked before or during the smoking process;              5.000
           flours, meals and pellets of fish, fit for human
           consumption:
0305 30    - Fishfillets,dried, salted or in brine, but not smoked:
0305 30 50 — Of lesser or Greenland halibut (Reinhardtius
               hippoglossoides), salted or in brine                  0
0305 30 90 ~ Other                                                   0
                                              44
 ---pagebreak---        (1)                                (2)                          (3)   (4)
   0305       Fish, dried, salted or in brine; smoked flsh, whether or     RCN°5
              not cooked before or during the smoking process;              1.000
              flours, meals and pellets of fish, fit for human
              consumption:
              — Smoked fish, including fillets:
ex 0305 41 00 ~ Atlantic salmon (Salmo salar)                           0
   0305 49 10 —    Lesser or Greenland          halibut  (Reinhardtius  0
                   hippoglossoides)
   0305 49 20 —    Atlantic halibut (Hippoglossus hippoglossus)         0
ex 0305 49 30 —    Mackerel of the species Scomber scombrus             0
ex 0305 49 45 —    Trout of the species Oncorhynchus mykiss             0
   0305 49 50 —    Eels (Anguilla spp.)                                 0
   0305 49 80 —    Other                                                0
                                                     5
 ---pagebreak---          (1)                                          (2)                                (3)      (4)
    0302                Fish, fresh or chilled, excluding fish fillets and other              RC N°6 W
                        flsh meat of heading No 0304:                                           12.600
                        —       Redfish (Sebastes spp.):
    0302 69 31                    Of the species Sebastes marinus
ex 0302 69 33                     Of the species Sebastes mentella
    0303                Fish, frozen, excluding flsh fillets and other flsh meat
                        of heading No 0304:
                        —       Redfish (Sebastes spp.):
    0303 79 35                    Of the species Sebastes marinus
ex 0303 79 37                     Of the species Sebastes mentella
    0304                Fish flilets and other fish meat (whether or not
                        minced), fresh, chilled or frozen:
    0304 10             — Fresh or chilled:
                        — Fillets:
    0304 10 35          —       Of redfish (Sebastes spp.)
    0304 20             — Frozen fillets:
                        -- Of redfish (Sebastes spp.):
    0304 20 35          —     Of the species Sebastes marinus
ex 0304 20 37           —     Of the species Sebastes mentella
(*) Figures refer to the commercial presentation 'whole and gutted*. For imports falling under HS code 0304, a
     coefficient of 3 shall be applied for quantities drawn from this reference ceiling.
                                                                   4G
 ---pagebreak---      (1)                               (2)                  (3)   (4)
0304       Fish fillets and other fish meat (whether or not     RCN°7
           minced), fresh, chilled or frozen:                    3.000
0304 10    - Fresh or chilled:
           -  Fillets:
0304 10 33 —      Of coalfish (Pollachius virens)            0
0304 10 38 —      Other                                      0
                                                  7
 ---pagebreak---     (1)                               (2)                   (3)  (4)
0304       Fish fillets and other fish meat (whether or not     RCN°8
           minced), fresh, chilled or frozen:                    550
0304 20    - Frozen fillets:
0304 20 43 -- Ofling(M?/vaspp.)                              0
                                              48
 ---pagebreak---        (1)                                (2)                         (3)   (4)
   0304       Fish fillets and other flsh meat (whether or not            RCN°9
              minced), fresh, chilled or frozen:                           1.800
   0304 20    - Frozen fillets:
              - Other:
ex 0304 20 96
              -    Of blue whiting (Micromesistius poutassou or Gadus  0
                   poutassou)
   0304 90    - Other:
   0304 90 59 -      Of blue whiting (Micromesistius poutassou or      0
                     Gadus poutassou)
                                                      49
 ---pagebreak---     (1)                                 (2)                          (3)   (4)
0305       Fish, dried, salted or in brine; smoked flsh, whether or      RCN°10
           not cooked before or during the smoking process;               1.400
           flours, meals and pellets of flsh, fit for human
           consumption:
           - Fish, salted but not dried or smoked and fish in brine:
0305 69 90 — Other                                                    0
                                               50
 ---pagebreak---     (1)                                (2)                          (3)    (4)
0306       Crustaceans, whether in shell or not, live, fresh,           RCN°11
           chilled, frozen, dried, salted or in brine; crustaceans,      11.000
           in shell, cooked by steaming or by boiling in water,
           whether or not chilled, frozen, dried, salted or in
           brine; flours, meals and pellets of crustaceans, flt for
           human consumption:
           — Frozen:
0306 13    — Shrimps and prawns:
0306 13 10 — Of the family Pandalidae                                0
 ---pagebreak---     (1)                                 (2)                          (3)    (4)
0305       Fish, dried, salted or in brine; smoked flsh, whether or       RC N°12
           not cooked before or during the smoking process;                 500
           flours, meals and pellets of fish, fît for human
           consumption:
           — Fish, salted but not dried or smoked and fish in brine:
0305 61 00 — Herrings (Clupea harengus, Clupea pallasii)              0
1604       Prepared or preserved flsh; caviar and caviar
           substitutes prepared from flsh eggs:
           — Fish, whole or in pieces, but not minced:
1604 12    — Herrings:
           — Other:
1604 12 91        In airtight containers                              0
1604 12 99 —      Other                                               0 '
                                                52
 ---pagebreak---         (1)                               (2)                           (3)     (4)
   0302       Fish, fresh or chilled, excluding fish fillets and other      Statistical
              flsh meat of heading No 0304:                                  survey
   0302 29 10 —    Megrim (Lepidorhombus spp)                            0
   0302 29 90 —    Other                                                 0
   0302 69 99 —      Other                                               0
   0303       Fish, frozen, excluding flsh fillets and other flsh meat
              of heading No 0304:
   0303 79 96 —      Other                                               0
   0304       Fish fillets and other fish meat (whether or not
              minced), fresh, chilled or frozen:
   0304 20    — Frozen fillets:
ex 0304 20 96 -- Other:
              —    Other than of blue whiting           (Micromesistius  0
                   poutassou ox Gadus poutassou)
   0304 90    — Other:
   0304 90 05 — Surimi                                                   0
   0304 90 97 —      Other                                               0
                                                        53
 ---pagebreak---                                         PROTOCOL 2
   concerning the tariff treatment and arrangements applicable to certain products
                       obtained by processing agricultural products
                                          Article 1
In order to take account of differences in the cost of the agricultural products
incorporated in the goods specified in the Table annexed to this Protocol, this Agreement
does not preclude:
(i)   the levying, upon import, of an agricultural element or fixed amount, or the
      application of internal price compensation measures;
(ii) the application of measures adopted upon export.
                                          Article 2
The Community shall apply the customs duties on imports originating in the Faroe Islands
as indicated in the Table annexed to this Protocol.
                                          Article 3
The Faroe Islands shall abolish tariffs and duties on imports of processed agricultural
products originating in the Community, with the exceptions mentioned in Protocol 4,
Article 2.
Should the Faroe Islands introduce such measures for processed agricultural products as
mentioned in Article 1 of this Protocol, the Community shall be duly notified.
                                            D
 ---pagebreak---                                               TABLE
                                  EUROPEAN COMMUNITY
   CNcode                                     Description                                   Rate of
                                                                                             duty
0403       Buttermilk, curdled milk and cream, yogurt, képhir and other fermented or
           acidified milk and cream, whether or not concentrated or containing added
           sugar or other sweetening matter or flavoured or containing added fruit, nuts
           or cocoa:
0403 10     - Yogurt:
0403 10 51  - - Flavoured or containing added fruit, nuts or cocoa                        EA
     to 99
0403 90     - Other:
0403 90 71  - - Flavoured or containing added fruit, nuts or cocoa                        EA
     to 99
0710       Vegetables (uncooked or cooked by steaming or boiling in water), frozen:
0710 40     - Sweet corn                                                                  EA
0711       Vegetables provisionally preserved (for example, by sulphur dioxide gas, in
           brine, in sulphur water or in other preservative solutions), but unsuitable in
           that state for immediate consumption:
0711 90     - Other vegetables; mixtures of vegetables:
            - - Vegetables:
0711 90 30  -     Sweet corn                                                               EA
1702       Other sugars, including chemically pure lactose, maltose, glucose and
           fructose, in solid form; sugar syrups not containing added flavouring or
           colouring matter, artificial honey, whether or not mixed with natural honey;
           caramel:
1702 50     - Chemically pure fructose                                                    free
1702 90     - Other, including invert sugar:
1702 90 10  - - Chemically pure maltose                                                   free
                                                   bb  r.
 ---pagebreak---     CNcode                                      Description                               Rate of duty
                                                                                              (1)
 1704       Sugar confectionery (including white chocolate), not containing cocoa:
 1704 10     - Chewing gum, whether or not sugar-coated                                  EA
                                                                                         max
1704 90      - Other:
1704 90 10   --     Liquorice extract containing more than 10 % by weight of sucrose but free
                    not containing other added substances
1704 90 30                                                                               EA
             --     White chocolate                                                      max
                                                                                         + ADS/Z
1704 90 51                                                                               EA
      to 99 --      Other                                                                max
                                                                                         + ADS/Z
1806
            Chocolate and other food preparations containing cocoa:
1806 10                                                                                   EA
            - Cocoa powder, containing added sugar or other sweetening matter
1806 20     - Other preparations in blocks or slabs weighing more than 2 kg or in
                 liquid, paste, powder, granular or other bulk form in containers or
                 immediate packings, of a content exceeding 2 kg:
1806 20 10  --     Containing 31 % or more by weight of cocoa butter or containing a     EA
                   combined weight of 31 % or more of cocoa butter and milk fat          max
                                                                                         + ADS/Z
1806 20 30         Containing a combined weight of 25 % or more, but less than 31 % of   EA
                   cocoa butter and milk fat                                             max
                                                                                         + ADS/Z
            --     Others
1806 20 50        Containing 18 % or more by weight of cocoa butter                      EA
                                                                                         max
                                                                                         + ADS/Z
1806 20 70  — Chocolate milk crumb                                                       EA
1806 20 95  - - - Other                                                                  EA
                                                                                         max
                                                                                         + ADS/Z
                                                 58
 ---pagebreak---    CNcode                                     Description                                  Rate of duty
                                                                                               (1)
                Other, in blocks, slabs or bars:
1806 3100         Filled                                                                   EA
                                                                                           max
                                                                                           + ADS/Z
1806 32           Not filled                                                               EA
                                                                                           max
                                                                                           + ADS/Z
1806 90         Other.
1806 9011         Chocolate and chocolate products                                         EA
     to 39                                                                                 max
                                                                                           + ADS/Z
1806 90 50        Sugar confectionery and substitutes therefor made from sugar             EA
                  substitution products, containing cocoa                                  max
                                                                                           + ADS/Z
1806 90 60        Spreads containing cocoa                                                 EA
                                                                                           max
                                                                                           + ADS/Z
1806 90 70        Preparations containing cocoa for making beverages                       EA
                                                                                           max
                                                                                           + ADS/Z
1806 90 90        Other                                                                    EA
                                                                                           max
                                                                                           + ADS/Z
1901       Malt extract; food preparations of flour, meal, starch or malt extract, not     EA
           containing cocoa or containing less than 40 % by weight of cocoa on a totally
           defatted basis, not elsewhere specified or included; food preparations of goods
           of heading Nos 0401 to 0404, not containing cocoa powder or containing less
           than 5 % by weight of cocoa on a totally defatted basis, not elsewhere
           specified or included
1902       Pasta, whether or not cooked or stuffed (with meat or other substances) or
           otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi,
           ravioli, cannelloni; couscous, whether or not prepared:
           - Uncooked pasta, not stuffed or otherwise prepared:
1902 11     - - Containing eggs                                                            EA
1902 19     - - Other                                                                      EA
                                                   K
                                                   57
 ---pagebreak---    C N code                                     Description                               Rate of duty
                                                                                              (1)
1902 20      - Stuffed pasta, whether or not cooked or otherwise prepared:
1902 20 91   - - Other                                                                    EA
     to 99
1902 30      - Other pasta                                                                EA
1902 40      - Couscous                                                                   EA
1903        Tapioca and substitutes therefor prepared from starch, in the form of flakes, EA
            grains, pearls, sittings or in similar forms
1904        Prepared foods obtained by the swelling or roasting of cereals or cereals     EA
            products (for example, com flakes); cereals, other than maize (com), in grain
            form or in the form of flakes or other worked grains (except flour and meal),
            pre-cooked, or otherwise prepared, not elsewhere specified or included
1905        Bread, pastry, cakes, biscuits and other baker's wares, whether or not
            containing cocoa; communion wafers, empty cachets of a kind suitable for
            pharmaceutical use, sealing wafers, rice paper and similar products:
1905 10      - Crispbread                                                                 EA
                                                                                          max 24 %
                                                                                          + ADF/M
1905 20      - Gingerbread and the like                                                   EA
1905 30      - Sweet biscuits; waffles and wafers                                         EA
                                                                                          max 35 %
                                                                                          + ADS/Z
1905 40      - Rusks, toasted bread and similar toasted products                          EA
1905 90      - Other:
1905 90 10   --   Matzos                                                                  EA
                                                                                          max 20 %
                                                                                          + ADF/M
1905 90 20        Communion wafers, empty cachets of a kind suitable for pharmaceutical   EA
                  use, sealing wafers, rice paper and similar products
                  Other:
1905 90 30          Bread, not containing added honey, eggs, cheese or fruit, and         EA
                    containing by weight in the dry matter state not more than 5 % of
                    sugar and not more than 5 % of fat
                                                       58
 ---pagebreak---    CN code                                    Description                                    Rate of
                                                                                             duty(l)
1905 90 40   — Waffles and wafers with a water content exceeding 10 % by weight            EA
                                                                                           max
                                                                                           + ADF/M
1905 90 45  - - - Biscuits                                                                 EA
                                                                                           max
                                                                                           + AD F /M
1905 90 55  — Extruded or expanded products, savoury or salted                             EA
                                                                                           max
                                                                                           + ADF/M
             •-- Other:
1905 90 60         With added sweetening matter                                            EA
                                                                                           max
                                                                                           + ADS/Z
1905 90 90         Other                                                                   EA
                                                                                           max
                                                                                           + ADF/M
2001       Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved
           by vinegar or acetic acid:
200190      -Other
                                                                                           EA
2001 90 30  - - Sweet com (Zea mays var. saccharata)
2004       Other vegetables prepared or preserved otherwise than by vinegar or acetic
           acid,frozen,other than productsfromheading No 2006:
2004 10     - Potatoes:
              - Other:
2004 10 91  — In the form of flour, meal or flakes                                         EA
2004 90     - Other vegetables and mixtures of vegetables:
2004 90 10  - - Sweet com (Zea mays var. saccharata)                                       EA
                                                      59
 ---pagebreak---     CNcode                                     Description                                      Rate of
                                                                                                duty(l)
2005       Other vegetables prepared or preserved otherwise than by vinegar or acetic
           acid, not frozen, other than products from heading No 2006:
2005 20     - Potatoes:
2005 20 10  - - In the form of flour, meal or flakes                                          EA
2005 80     - Sweet com (Zea mays var. saccharata)                                            EA
2008       Fruit, nuts and other edible parts of plants, otherwise prepared or preserved,
           whether or not contaimng added sugar or other sweetening matter or spirit,
           not elsewhere specified or included:
            - Other, including mixtures other than those of subheading No 2008 19:
 2008 99    - - Other:
                  Not containing added spirit:
                   Not containing added sugar:
2008 99 85           Maize (com), other than sweet com (Zea mays var. saccharata) *           EA
2101       Extiacts, essences and concentrates, of coffee, tea or maté and preparations
           with a basis of these products or with a basis of coffee, tea or maté; roasted
           chicory and other roasted coffee substitutes, and extracts, essences and
           concentrates thereof:
            -   Extracts, essences and concentrates, of coffee, and preparations with a
                basis of these extracts, essences or concentrates or with a basis of coffee:
            --     Preparations with a basis of these extracts, essences or concentrates of
2101 12           coffee:
2101 12 98  - - - Other                                                                       EA
210120      -   Extracts, essences and concentrates, of tea or maté, and preparations with
                a basis of these extracts, essences or concentrates or with a basis of tea or
                maté:
            --     Preparations:
210120 98   ---Other                                                                          EA
                                                           60
 ---pagebreak---    CN code                                    Description                                     Rate of
                                                                                              duty(l)
210130      - Roasted chicory and other roasted coffee substitutes, and extracts,
                essences and concentrates thereof:
                  Roasted chicory and other roasted coffee substitutes:
                                                                                           EA
210130 19   ---        Other
            --    Extracts, essences and concentrates of roasted chicory and other roasted
                  coffee sustitutes:
210130 99    ---Other                                                                      EA
2102       Yeasts (active or inactive); other single-cell micro-organisms, dead (but not
           including vaccines of heading No 3002); prepared baking powders:
210210      - Active yeasts:
                                                                                           EA
2102 10 31  --Baker's yeast
     to 39
2102 20     - Inactive yeasts; other single-cell micro-organisms, dead:
2102 20 11  - - Inactive yeasts                                                            free
     to 19
2103       Sauces and preparations therefor, mixed condiments and mixed seasonings;
           mustard flour and meal and prepared mustard:
2103 10     - Soya sauce                                                                   free
2103 20     - Tomato ketchup and other tomato sauces                                       free
2103 90      -Other                                                                        free
2104       Soups and broths and preparations therefor, homogenized composite food
           preparations:
210410      - Soups and broths and preparations therefor                                   free
2105       Ice cream and other edible ice, whether or not containing cocoa                  EA
                                                                                           max (1)
                                                                                           + ADS/Z
2106       Food preparations not elsewhere specified or included:
2106 10      - Protein concentrates and textured protein substances:
2106 10 80   --Other                                                                       EA
                                                            61
 ---pagebreak---     CNcode                                       Description                                 Rate of
                                                                                             duty(l)
2106 90         • Other:
2106 90 10     - - Cheese fondues                                                         EA
                                                                                          max ECU 25/
                                                                                           100 kg/net
               --Other
ex 2106 90 92  -        Containing no milkfats, sucrose, isoglucose, glucose or starch or
                       containing less than 1,5 % milkfat, 5 % sucrose or isoglucose, 5 %
                       glucose or starch:
                         Hydrolysates of proteins; autolysates of yeast                   free
2106 90 98     ---      Other                                                             EA
2202          Waters, including mineral waters and EArated waters, containing added sugar
              or other sweetening matter or flavoured, and other non-alcoholic beverages,
              not including fruit or vegetable juices of heading No 2009:
2202 10        -   Waters, including mineral waters and EArated waters, containing added  free
                   sugar or other sweetening matter or flavoured
2202 90        -   Other:
ex 2202 90 10  --    Not containing products of heading Nos 0401 to 0404 or fat obtained
                     from products of heading Nos 0401 to 0404:
                                                                                          free
               -       Containing sugar (sucrose or invert sugar)
2202 90 91                                                                                EA
     to 99     --    Other
2203          Beer made from malt                                                         free
2205          Vermouth and other wine of fresh grapes flavoured with plants or aromatic   free
              substances
                                                            62
 ---pagebreak---     CNcode                                        Description                                   Rate of
                                                                                                duty(l)
2208          Undenatured ethyl alcohol of an alcoholic strength by volume of less than
              80 % vol; spirits, liqueurs and other spirituous beverages; compound alcoholic
              preparations of a kind used for the manufacture of beverages:
2208 90       - Other:
               - - Other spirits and other spirituous beverages, in containers holding:
               -    2 1 or less:
ex 2208 90 69        Other spirituous beverages:
                       Containing eggs or egg yolks and/or sugar (sucrose or invert sugar)   ECU 1/%
                                                                                             vol/hl
                                                                                             + ECU 6/hl
               -    More than 2 1:
ex 2208 90 78        Other spirituous beverages:
                       Containing eggs or egg yolks and/or sugar (sucrose or invert sugar)   ECU 1/%
                                                                                             vol/hl
2905          Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated
              derivatives:
               - Other polyhydric alcohols:
2905 43        - - Mannitol                                                                  EA
2905 44        - - D-glucitol (sorbitol)                                                     EA
2915          Saturated acyclic monocarboxylic acids and their anhydrides, halides,
              peroxides and peroxyacids; their halogenated, sulphonated, nitrated or
              nitrosated derivatives:
               - Formic acid, its salts and esters:
ex 2915 13     - - Esters of formic acid:
                    Esters of mannitol and esters of sorbitol                                free
               - Esters of acetic acid:
                                                               63
 ---pagebreak---     CNcode                                          Description                                Rate of
                                                                                               duty(l)
2915 39        - - Other:
               - - - Other:
ex 2915 39 90
                      Esters of mannitol and esters of sorbitol                             free
               -Other:
ex 2915 90
               - - Esters of mannitol and esters of sorbitol                                free
              Unsaturated acyclic monocarboxylic acids, cyclic monocarboxylic acids, their
2916
              anhydrides, halides, peroxides and peroxyacids; their halogenated,
              sulphonated, nitrated or nitrosated derivatives:
               - Unsaturated acyclic monocarboxylic acids, their anhydrides, halides,
                   peroxides, peroxyacids and their derivatives:
2916 19        --    Other:
ex 2916 19 90  ---      Other:
                          Esters of mannitol and esters of sorbitol                         free
2917          Polycarboxylic acids, tlieir anhydrides, halides, peroxides and peroxyacids;
              their halogenated, sulphonated, nitrated or nitrosated derivatives:
               - Acyclic polycarboxylic acids, tlieir anhydrides, halides, peroxides,
                   peroxyacids and their derivatives:
2917 19        - - Other:
ex 2917 19 90  - - - Other:
                      Itaconic acid, it; ^alts and esters                                   free
2918          Carboxylic acids with additional oxygen function and tlieir anhydrides,
              halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated
              or nitrosated derivatives:
               - Carboxylic acids with alcohol function but without other oxygen function,
                   their anhydrides, halides, peroxides, peroxyacids and their derivatives:
2918 11        --    Lactic acid, its salts and esters                                      free
2918 14              Citric acid                                                            free
2918 15              Salts and esters of citric acid                                        free
                                                          64
 ---pagebreak---     CNcode                                       Description                                      Rate of
                                                                                                  duty(l)
2918 19        --   Other:
ex 2918 19 90  ---    Other:
                         Glyceric acid, glycolic acid, saccharic acid, isosaccharic acid,      free
                         heptasaccharic acid, their salts and esters
2932          Heterocyclic compounds with oxygen hetero-atom(s) only:
               - Compounds containing an unfused furan ring (whether or not
                  hydrogenated) in the structure:
ex 2932 19     --   Other:
               -      Anhydrous mannitol and sorbitol compounds, excluding maltol and          free
                      isomaltol
2932 99           Other:
ex 2932 99 70  --   Other cyclic acetals and internal hemiacetals, whether or not with other
                    oxygen functions, and their halogenated, sulphonated, nitrated or
                    nitrosated derivatives:
               -      a - Methylglucoside                                                      free
ex 2932 99 90  --   Other:
               -      Anhydrous mannitol and sorbitol compounds, excluding maltol and          free
                      isomaltol
2940          Sugars, chemically pure, other than sucrose, lactose, maltose, glucose and
              fructose; sugar ethers and sugar esters, and their salts, other than products of
              heading Nos 2937, 2938 or 2939:
2940 00 90     - Other                                                                         free
2941          Antibiotics:
2941 10        - Penicillins and their derivatives with a penecillanic acid structure; salts   free
                  thereof
                                                           65
 ---pagebreak---    CN code                                     Description                                     Rate of
                                                                                               duty(l)
3001       Glands and other organs for organo-therapeutic uses, dried, whether or not
           powdered; extracts of glands or other organs or of their secretions for organo-
           therapeutic uses; heparin and its salts; other human or animal substances
           prepared for therapeutic or prophylactic uses, not elsewhere specified or
           included:
3001 90     - Other:
            --    Other:
3001 90 91  ---     Heparin and its salts                                                   free
3501        Casein, caseinates and other casein derivatives; casein glues:
3501 10     - Casein:
                                                                    2
350110 10   --    For the manufacture of regenerated textile fibres                         free
3501 10 50  --    For industrial uses other than the manufacture of foodstuffs or fodder 2  free
3501 10 90  --    Other                                                                     free
3501 90     - Other:                                                                        free
3505       Dextrins and other modified starches (for example, pregelatinized or
           esterified starches); glues based on starches, or on dextrines or other modified
           starches:
3505 10     - Dextrins and other modified starches:
3505 10 10  --    Dextrins                                                                  EA
            --    Other modified starches:
3505 10 50  —       Starches, esterified or etherified                                      free
3505 10 90  ---     Other                                                                   EA
3505 20     - Glues                                                                         EA
                                                                                            max
                                                         G6
 ---pagebreak---     CNcode                                       Description                                       Rate of
                                                                                                   duty(l)
3506          Prepared glues and other prepared adhesives, not elsewhere specified or
              included; products suitable for use as glues or adhesives, put up for retail sale
              as glues or adhesives, not exceeding a net weight of 1 kg:
ex 3506 10 00  - Products suitable for use as glues or adhesives, put up for retail sale as
                  glues or adhesives, not exceeding a net weight of 1 kg:
               --   With a basis of sodium silicate emulsion or of resin emulsions              free
               - Other:
ex 3506 99 00  --   Other:
               -      With a basis of sodium silicate emulsion or of resin emulsions            free
3809          Finishing agents, dye carriers to accelerate the dyeing or fixing of dyestuffs
              and other products and preparations (for example, dressings and mordants), of
              a kind Used in the textile, paper, leather or like industries, not elsewhere
              specified or included:
3809 10        - With a basis of amylaceous substances                                          EA
                                                                                                max
               - Other:
ex 3809 91     --   Of a kind used in the textile or like industries:
               -      Containing starch or products derived from starch                         free
ex 3809 92     --   Of a kind used in the paper or like industries:
                      Containing starch or products derivedfromstarch                           free
ex 3809 93     --   Of a kind used in the leather or like industries:
               -      Containing starch or products derivedfromstarch                           free
3823          Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty
              alcohols:
               - Industrial monocarboxylic fatty acids; acid oilsfromrefining:
3823 13        --   Tall oil fatty acids                                                        free
                                                              67
 ---pagebreak---      CNcode                                      Description                                       Rate of
                                                                                                   duty(l)
 3824         Prepared binders for foundry moulds or cores; chemical products and
              preparations of the chemical or allied industries (including those consisting of
              mixtures of natural products), not elsewhere specified or included; residual
              products of the chemical or allied industries, not elsewhere specified or
              included:
 ex 3824 10    - Prepared binders for foundry moulds or cores:
               --    Based on synthetic resins                                                  free
 3824 60       - Sorbitol other than that of subheading 2905 44                                EA
 3824 90       - Other:
ex 3824 90 25  --   Pyrolignites (for example, of calcium); crude calcium tartrate; crude
                    calcium citrate:
                                                                                               free
               -      Crude calcium citrate
               --   Other:
ex 3824 90 90
               ---    Other:
                                                                                               free
                        Products of sorbitol cracking
3911          Petroleum resins, coumarone-indene resins, polyterpenes, polysulphides,
              polysulphones and other products specified in note 3 to this chapter, not
              elsewhere specified or included, in primary forms:
ex 3911 10     - Petroleian resins, coumarone, indene or coumarone-indene resins and
                  polyterpenes:
               --   Adhesives with a basis of resin emulsions                                  free
391190         - Other:
ex 3911 90 10  --   Condensation or rearrangement polymerization products whether or not
                    chemically modified:
                                                                                               free
              -       Adhesives with a basis of resin emulsions
ex 3911 90 90
              --    Other:
                                                                                               free
                      Adhesives with a basis of resin emulsions
                                                       68
 ---pagebreak---       CN code                                        Description                                    Rate of
                                                                                                    duty(l)
  3913            Natural polymers (for example, alginic acid) and modified natural polymers
                   (for example, hardened proteins, chemical derivatives of natural rubber), not
                   elsewhere specified or included, in primary forms:
  3913 90           - Other:
  ex 3913 90 90     --   Other:
                    ---    Dextran                                                               free
                    —      Other, excluding hardened proteins                                    free
1
    The amounts of the agricultural components (EA), which may be subject to a maximum duty, are set
out in the Common Customs Tariff in the form of a specific amount or of a reference to Annex I of the
Common Customs Tariff (Regulation (EEC) N° 2658/87 of 23 July 1987 as amended).
2
         Entry under this subheading is subject to conditions laid down in the relevant Community
provisions.
                                                                   69
 ---pagebreak---                                          PROTOCOL 3
         concerning the definition of the concept of "originating products" and
                          methods of administrative cooperation
                                  TABLE OF CONTENTS
TITLE I        GENERAL PROVISIONS
- Article 1    Definitions
TITLE n        DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS"
- Article 2    General requirements
- Article 3    Bilateral cumulation of origin
- Article 4    Wholly obtained products
- Article 5    Sufficiently worked or processed products
- Article 6    Insufficient working or processing operations
- Article 7    Unit of qualification
- Article 8    Accessories, spare parts and tools
- Article 9    Sets
- Article 10   Neutral elements
TITLE TU       TERRITORIAL REQUIREMENTS
- Article 11   Principle of territoriality
- Article 12   Direct transport
- Article 13   Exhibitions
TITLE IV       DRAWBACK OR EXEMPTION
- Article 14   Prohibition of drawback of, or exemption from, customs duties
TITLE V        PROOF OF ORIGIN
- Article 15   General requirements
- Article 16   Procedure for the issue of a movement certificate EUR. 1
- Article 17   Movement certificates EUR.l issued retrospectively
- Article 18   Issue of a duplicate movement certificate EUR.l
- Article 19   Issue of movement certificates EUR. 1 on the basis of a proof of origin
               issued or made out previously
- Article 20   Conditions for making out an invoice declaration
- Article 21   Approved exporter
- Article 22   Validity of proof of origin
- Article 23   Submission of proof of origin
- Article 24   Importation by instalments
- Article 25   Exemptions from proof of origin
- Article 26   Supporting documents
- Article 27   Preservation of proof of origin and supporting documents
- Article 28   Discrepancies and formal errors
- Article 29   Amounts expressed in ECU
                                           70
 ---pagebreak--- TITLE VI     ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION
- Article 30 Mutual assistance
- Article 31 Verification of proofs of origin
- Article 32 Dispute settlement
- Article 33 Penalties
- Article 34 Free zones
TITLE VH     CEUTA AND MELILLA
  Article 35 Application of the Protocol
  Article 36 Special conditions
                                              71
 ---pagebreak---                                               TITLE I
                                    GENERAL PROVISIONS
                                              Article 1
                                            Definitions
For the purposes of this Protocol:
(a)     "manufacture" means any kind of working or processing including assembly or specific
       operations;
(b)     "material" means any ingredient, raw material, component or part, etc., used in the
       manufacture of the product;
(c)     "product" means the product being manufactured, even if it is intended for later use in
       another manufacturing operation;
(d)    ''goods" means both materials and products;
(e)     "customs value" means the value as determined in accordance with the 1994
       Agreement on implementation of Article VII of the General Agreement on Tariffs and
       Trade (WTO Agreement on customs valuation);
(f)    "ex-works price" means the price paid for the product ex works to the manufacturer in
       the Community or the Faroe Islands in whose undertaking the last working or
       processing is carried out, provided the price includes the value of all the materials
       used, minus any internal taxes which are, or may be, repaid when the product obtained
       is exported;
(g)    "value of materials" means the customs value at the time of importation of the non-
       originating materials used, or, if this is not known and cannot be ascertained, the first
       ascertainable price paid for the materials in the Community or the Faroe Islands;
(h)    "value of originating materials" means the value of such materials as defined in
       subparagraph (g) applied mutatis mutandis;
(i)    "added value" shall be taken to be the ex works price minus the customs value of each
       of the products incorporated which did not originate in the country in which those
       products were obtained;
(j)    "chapters" and "headings" mean the chapters and the headings (four-digit codes) used
       in the nomenclature which makes up the Harmonized Commodity Description and
       Coding System, referred to in this Protocol as "the Harmonized System" or "HS";
(k)    "classified" refers to the classification of a product or material under a particular
       heading;
(1)    "consignment" means products which are either sent simultaneously from one exporter
       to one consignee or covered by a single transport document covering their shipment
       from the exporter to the consignee or, in the absence of such a document, by a single
       invoice;
(m)    "territories" includes territorial waters.
                                                        72
 ---pagebreak---                                        TITLE n
    DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS"
                                       Article 2
                                General requirements
1. For the purpose of implementing this Agreement, the following products shall be
   considered as 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. For the purpose of implementing this Agreement, the following products shall be
   considered as originating in the Faroe Islands:
   (a) products wholly obtained in the Faroe Islands within the meaning of Article 4 of
       this Protocol;
   (b) products obtained in the Faroe Islands incorporating materials which have not
       been wholly obtained there, provided that such materials have undergone
       sufficient working or processing in the Faroe Islands within the meaning of Article
       5 of this Protocol.
                                        Article 3
                            Bilateral cumulation of origin
1. Materials originating in the Community shall be considered as materials originating in
   the Faroe Islands when incorporated into a product obtained there. It shall not be
   necessary that such materials have undergone sufficient working or processing,
   provided they have undergone working or processing going beyond that referred to in
   Article 6(1) of this Protocol.
2. Materials originating in the Faroe Islands shall be considered as materials originating in
   the Community when incorporated into a product obtained there. It shall not be
   necessary that such materials have undergone sufficient working or processing,
   provided they have undergone working or processing going beyond that referred to in
   Article 6(1) of this Protocol.
                                                   73
 ---pagebreak---                                         Article 4
                              Wholly obtained products
1. The following shall be considered as wholly obtained in the Community or the Faroe
   Islands:
   (a)      mineral products extracted from their soil or from their seabed;
   (b)      vegetable products harvested there;
   (c)      live animals born and raised there;
   (d)      products from live animals raised there;
   (e)      products obtained by hunting or fishing conducted there;
   (f)      products of sea fishing and other products taken from the sea outside the
            territorial waters of the Community or the Faroe Islands by their vessels;
   (g)      products made aboard their factory ships exclusively from products referred
            to in subparagraph (f);
   (h)      used articles collected there fit only for the recovery of raw materials,
            including used tyres fit only for retreading or for use as waste;
   (i)      waste and scrap resulting from manufacturing operations conducted there;
   (j)      products extracted from marine soil or subsoil outside their territorial waters
            provided that they have sole rights to work that soil or subsoil;
   (k)      goods produced there exclusively from the products specified in
            subparagraphs (a) to (j).
2. The terms "their vessels" and "their factory ships" in sub-paragraphs 1(f) and (g) shall
   apply only to vessels and factory ships:
   (a)      which are registered or recorded in an EC Member State or in the Faroe
            Islands;
   (b)      which sail under the flag of an EC Member State or of the Faroe Islands;
   (c)      which are owned to an extent of at least 50 per cent by nationals of EC
            Member States or of the Faroe Islands, or by a company with its head office
            in one of these States, 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 EC Member States or of the Faroe
            Islands and of which, in addition, in the case of partnerships or limited
            companies, at least half the capital belongs to those States or to public bodies
            or nationals of the said States;
   (d)      of which the master and officers are nationals of EC Member States or of the
            Faroe Islands; and
   (e)      ôf which at least 75 per cent of the crew are nationals of EC Member States
            or of the Faroe Islands.
                                                      74
 ---pagebreak---                                            Article 5
                         Sufficiently worked or processed products
1.   For the purposes of Article 2, products which are not wholly obtained are considered
     to be sufficiently worked or processed when the conditions set out in the list in Annex
     II are fulfilled.
     The conditions referred to above indicate, for all products covered by this Agreement,
     the working or processing which must be carried out on non-originating materials used
     in manufacturing and apply only in relation to such materials. Accordingly, it follows
     that if a product, which has acquired originating status by fulfilling the conditions set
     out in the list is used in the manufacture of another product, the conditions applicable
     to the product in which it is incorporated do not apply to it, and no account shall be
     taken of the non-originating materials which may have been used in its manufacture.
2.  Notwithstanding paragraph 1, non-originating materials which, according to the
     conditions set out in the list, should not be used in the manufacture of a product may
     nevertheless be used, provided that:
     (a)        their total value does not exceed 10 per cent of the ex-works price of the
                product;
     (b)        any of the percentages given in the list for the maximum value of non-
                originating materials are not exceeded through the application of this
                paragraph.
     This paragraph shall not apply to products falling within Chapters 50 to 63 of the
     Harmonized System.
3.   Paragraphs 1 and 2 shall apply except as provided in Article 6.
                                           Article 6
                       Insufficient working or processing operations
     Without prejudice to paragraph 2, the following operations shall be considered as
     insufficient working or processing to confer the status of originating products, whether
     or not the requirements of Article 5 are satisfied:
   (a) operations to ensure the preservation of products in good condition during
         transport and storage (ventilation, spreading out, drying, 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 packages;
         (ii) simple placing in bottles, flasks, bags, cases, boxes, fixing on cards or boards
              etc., and all other simple packaging operations;
   (d) affixing marks, labels and other like distinguishing signs on products or their
         packaging;
                                              75
 ---pagebreak---       (e) simple mixing of products, whether or not of different kinds, where one or more
           components of the mixtures do not meet the conditions laid down in this Protocol
           to enable them to be considered as originating in the Community or the Faroe
           Islands;
      (f) simple assembly of parts to constitute a complete product;
      (g) a combination of two or more operations specified in subparagraphs (a) to (f);
      (1\) slaughter of animals.
      All the operations carried out in either the Community or the Faroe Islands on a given
      product shall be considered together when determining whether the working or
      processing undergone by that product is to be regarded as insufficient within the
      meaning of paragraph 1.
                                             Article 7
                                       Unit of qualification
1.      The unit of qualification for the application of the provisions of this Protocol shall be
        the particular product which is considered as the basic unit when determining
        classification using the nomenclature of the Harmonized System.
        Accordingly, it follows that:
        (a)       when a product composed of a group or assembly of articles is classified
                  under the terms of the Harmonized System in a single heading, the whole
                  constitutes the unit of qualification;
        (b)       when a consignment consists of a number of identical products classified
                  under the same heading of the Harmonized System, each product must be
                  taken individually when applying the provisions of this Protocol.
2.      Where, under general rule 5 of the Harmonized System, packaging is included with the
        product for classification purposes, it shall be included for the purposes of determining
        origin.
                                              Article 8
                                Accessories, spare parts and tools
Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus
or vehicle, which are part of the normal equipment and included in the price thereof or which
are not separately invoiced, shall be regarded as one with the piece of equipment, machine,
apparatus or vehicle in question.
                                              Article 9
                                                 Sets
Sets, as defined in general rule 3 of the Harmonized System, shall be regarded as originating
when all component products are originating. Nevertheless, when a set is composed of
originating and non-originating products, the set as a whole shall be regarded as originating,
provided that the value of the non-originating products does not exceed 15 per cent of the ex-
works price of the set.
                                                         76
 ---pagebreak---                                              Article 10
                                         Neutral elements
In order to determine whether a product originates, it shall not be necessary to determine the
origin of the following which might be used in its manufacture :
(a)     energy and fuel;
(b)     plant and equipment;
(c)     machines and tools;
(d)     goods which do not enter and which are not intended to enter into the final
        composition of the product.
                                             TITLE IH
                              TERRITORIAL REQUIREMENTS
                                             Article 11
                                    Principle of territoriality
1.      The conditions set out in Title II relative to the acquisition of originating status must
        be fulfilled without interruption in the Community or the Faroe Islands.
2.      If originating goods exported from the Community or the Faroe Islands to another
        country are returned, they must be considered as non-originating, unless it can be
        demonstrated to the satisfaction of the customs authorities that:
        (a)        the goods returned are the same goods as those exported; and
        (b)        they have not undergone any operation beyond that necessary to preserve
                   them in good condition while in that country or while being exported.
                                             Article 12
                                         Direct transport
1.      The preferential treatment provided for under the Agreement applies only to products,
        satisfying the requirements of this Protocol, which are transported directly between the
        Community and the Faroe Islands. However, products constituting one single
        consignment may be transported through other territories with, should the occasion
        arise, trans-shipment or temporary warehousing in such territories, provided that they
        remain under the surveillance of the customs authorities in the country of transit or
        warehousing and do not undergo operations other than unloading, reloading or any
        operation designed to preserve them in good condition.
        Originating products may be transported by pipeline across territory other than that of
        the Community or the Faroe Islands.
2.      Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied
        to the customs authorities of the importing country by the production of:
                                                         77
 ---pagebreak---    (a)        a single transport document covering the passage from the exporting country
             through the country of transit; or
   (b)       a certificate issued by the customs authorities of the country of transit:
             (i) giving an exact description of the products;
             (ii) stating the dates of unloading and reloading of the products and, where
                   applicable, the names of the ships, or the other means of transport used;
                   and
             (iii) certifying the conditions under which the products remained in the
                   transit country; or
   (c)       failing these, any substantiating documents.
                                         Article 13
                                        Exhibitions
1. Originating products, sent for exhibition in another country and sold after the
   exhibition for importation in the Community or the Faroe Islands shall benefit on
   importation from the provisions of the Agreement provided it is shown to the
   satisfaction of the customs authorities that :
   (a)       an exporter has consigned these products from the Community or the Faroe
             Islands to the country in which the exhibition is held and has exhibited them
             there;
   (b)       the products have been sold or otherwise disposed of by that exporter to a
             person in the Community or the Faroe Islands;
   (c)       the products have been consigned during the exhibition or immediately
             thereafter in the state in which they were sent for exhibition; and
   (d)       the products have not, since they were consigned for exhibition, been used for
             any purpose other than demonstration at the exhibition.
2. A proof of origin must be issued or made out in accordance with the provisions of
   Title V and submitted to the customs authorities of the importing country in the
   normal manner. The name and address of the exhibition must be indicated thereon.
   Where necessary, additional documentary evidence of the 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.
                                         TITLE IV
                            DRAWBACK OR EXEMPTION
                                         Article 14
          Prohibition of drawback of, or exemption from, customs duties
                                                  78
 ---pagebreak--- 1. Non-originating materials used in the manufacture of products originating in the
   Community or in the Faroe Islands for which a proof of origin is issued or made out in
   accordance with the provisions of Title V shall not be subject in the Community or the
   Faroe Islands to drawback of, or exemption from, customs duties of whatever kind
2.  The prohibition in paragraph 1 shall apply to any arrangement for refund, remission or
    non-payment, partial or complete, of customs duties or charges having an equivalent
    effect, applicable in the Community or the Faroe Islands to materials used in the
    manufacture, where such refund, remission or non-payment applies, expressly or in
    effect, when products obtained from the said materials are exported and not when they
    are retained for home use there.
3.  The exporter of products covered by a proof of origin shall be prepared to submit at any
    time, upon request from the customs authorities, all appropriate documents proving that
    no drawback has been obtained in respect of the non-originating materials used in the
    manufacture of the products concerned and that all customs duties or charges having
    equivalent effect applicable to such materials have actually been paid.
4.  The provisions of paragraphs 1 to 3 shall also apply in respect of packaging within the
    meaning of Article 7 (2), accessories, spare parts and tools within the meaning of Article
    8 and products in a set within the meaning of Article 9 when such items are non-
    originating.
5.  The provisions of paragraphs 1 to 4 shall apply only in respect of materials which are of
    the kind to which the Agreement applies. Furthermore, they shall not preclude the
    application of an export refund system for agricultural products, applicable upon export
    in accordance with the provisions of the Agreement.
                                             TITLE V
                                       PROOF OF ORIGIN
                                             Article 15
                                       General requirements
1.     Products originating in the Community shall, on importation into the Faroe Islands and
       products originating in the Faroe Islands shall, on importation into the Community,
       benefit from this Agreement upon submission of either :
       (a)        a movement certificate EUR. 1, a specimen of which appears in Annex III; or
       (b)        in the cases specified in Article 20(1), a declaration, the text of which appears
                  in Annex IV, given by the exporter on an invoice, a delivery note or any other
                  commercial document which' describes the products concerned in sufficient
                  detail to enable them to be identified (hereinafter referred to as the "invoice
                  declaration").
2.     Notwithstanding paragraph 1, originating products within the meaning of this Protocol
       shall, in the cases specified in Article 25, benefit from this Agreement without it being
       necessary to submit any of the documents referred to above.
                                                       79
 ---pagebreak---                                              11
                                         Article 16
               Procedure for the issue of a movement certificate EUR.1
1. A movement certificate EUR.l shall be issued by the customs authorities of the
   exporting country on application having been made in writing by the exporter or,
   under the exporter's responsibility, by his authorized representative.
2. For this purpose, the exporter or his authorized representative shall fill out both the
   movement certificate EUR. 1 and the application form, specimens of which appear in
   Annex III. These forms shall be completed in one of the languages in which this
   Agreement is drawn up and in accordance with the provisions of the domestic law of
   the exporting country. If they are handwritten, they shall be completed in ink in
   printed characters. The description of the products must be given in the box reserved
   for this purpose without leaving any blank lines. Where the box is not completely
   filled, a horizontal line must be drawn below the last line of the description, the empty
   space being crossed through.
3. The exporter applying for the issue of a movement certificate EUR.l shall be prepared
   to submit at any time, at the request of the customs authorities of the exporting
   country where the movement certificate EUR. 1 is issued, all appropriate documents
   proving the originating status of the products concerned as well as the fulfilment of the
   other requirements of this Protocol.
4. A movement certificate EUR. 1 shall be issued by the customs authorities of an EC
   Member State or the Faroe Islands if the products concerned can be considered as
   products originating in the Community or the Faroe Islands and fulfill the other
   requirements of this Protocol.
5. The issuing customs authorities shall take any steps necessary to verify the originating
   status of the products and the fulfilment of the other requirements of this Protocol.
   For this purpose, they shall have the right to call for any evidence and to carry out any
   inspection of the exporter's accounts or any other check considered appropriate. The
   issuing customs authorities shall also ensure that the forms referred to in paragraph 2
   are duly completed. In particular, they shall check whether the space reserved for the
   description of the products has been completed in such a manner as to exclude all
   possibility of fraudulent additions.
6. The date of issue of the movement certificate EUR.l shall be indicated in Box 11 of
   the certificate.
7. A movement certificate EUR.l shall be issued by the customs authorities and made
   available to the exporter as soon as actual exportation has been effected or ensured.
                                         Article 17
                  Movement certificates EUR.l issued retrospectively
1. Notwithstanding Article 16(7), a movement certificate EUR.l may exceptionally be
   issued after exportation of the products to which it relates if:
   (a)        it was not issued at the time of exportation because of errors or involuntary
              omissions or special circumstances; or
   (b)        it is demonstrated to the satisfaction of the customs authorities that a
              movement certificate EUR. 1 was issued but was not accepted at importation
              for technical reasons.
 ---pagebreak---                                                   12
2.       For the implementation of paragraph 1, the exporter must indicate in his application
         the place and date of exportation of the products to which the movement certificate
         EUR. 1 relates, and state the reasons for his request.
3.       The customs authorities may issue a movement certificate EUR. 1 retrospectively only
         after verifying that the information supplied in the exporter's application agrees with
         that in the corresponding file.
4.       Movement certificates EUR.l issued retrospectively must be endorsed with one of the
         following phrases:
         "NACHTRÀGLICH AUSGESTELLT", "DELIVRE A POSTERIORI",
         "RILASCIATO A POSTERIORI", "AFGEGEVEN A POSTERIORI",
         "ISSUED RETROSPECTIVELY", "UDSTEDT EFTERF0LGENDE",
         "EKAO0EN EK TQN Y2TEPQN", "EXPEDIDO A POSTERIORI",
         "EMITDDO A POSTERIORI", "ANNETTU JÀLKIKÀTEEN",
         "UTFÀRDAT IEFTERHAND", "GIVIN EFTIRFYLGJANDI",
5.       The endorsement referred to in paragraph 4 shall be inserted in the "Remarks" box of
         the movement certificate EUR. 1.
                                              Article 18
                        Issue of a duplicate movement certificate EUR.l
1.       In the event of theft, loss or destruction of a movement certificate EUR. 1, the exporter
         may apply to the customs authorities which issued it for a duplicate made out on the
         basis of the export documents in their possession.
2.       The duplicate issued in this way must be endorsed with one of the following words:
         "DUPLIKAT", "DUPLICATA", "DUPLICATO", "DUPLICAAT", "DUPLICATE",
         "ANTirPA^O", "DUPLICADO", "SEGUNDA VIA", "KAKSOISKAPPALE",
         "TVITAK"
3.       The endorsement referred to in paragraph 2 shall be inserted in the "Remarks" box of
         the duplicate movement certificate EUR. 1.
4.       The duplicate, which must bear the date of issue of the original movement certificate
         EUR. 1, shall take effect as from that date.
                                              Article 19
                     Issue of movement certificates EUR.1 on the basis of a
                          proof of origin issued or made out previously
When originating products are placed under the control of a customs office in the Community
or the Faroe Islands, it shall be possible to replace the original proof of origin by one or more
movement certificates EUR.l for the purpose of sending all or some of these products
elsewhere within the Community or the Faroe Islands. The replacement movement
certificate(s) EUR. 1 shall be issued by the customs office under whose control the products
are placed.
                                                          81
 ---pagebreak---                                               13
                                         Article 20
                    Conditions for making out an invoice declaration
1. An invoice declaration as referred to in Article 15(l)(b) may be made out:
   (a) by an approved exporter within the meaning of Article 21, or
   (b) by any exporter for any consignment consisting of one or more packages containing
         originating products whose total value does not exceed ECU 6 000.
2. An invoice declaration may be made out if the products concerned can be considered as
   products originating in the Community or the Faroe Islands and fulfill the other
   requirements of this Protocol.
3. The exporter making out an invoice declaration shall be prepared to submit at any time,
   at the request of the customs authorities of the exporting country, all appropriate
   documents proving the originating status of the products concerned as well as the
   fulfilment of the other requirements of this Protocol.
4. An invoice declaration shall be made out by the exporter by typing, stamping or printing
   on the invoice, the delivery note or another commercial document, the declaration, the
   text of which appears in Annex IV, using one of the linguistic versions set out in that
   Annex and in accordance with the provisions of the domestic law of the exporting
   country. If the declaration is handwritten, it shall be written in ink in printed characters.
5. Invoice declarations shall bear the original signature of the exporter in manuscript.
   However, an approved exporter within the meaning of Article 21 shall not be required
   to sign such declarations provided that he gives the customs authorities of the exporting
   country a written undertaking that he accepts full responsibility for any invoice
   declaration which identifies him as if it had been signed in manuscript by him.
6. An invoice declaration may be made out by the exporter when the products to which it
   relates are exported, or after exportation on condition that it is presented in the
   importing country no longer than two years after the importation of the products to
   which it relates.
                                         Article 21
                                   Approved exporter
1. The customs authorities of the exporting country may authorize any exporter who
   makes frequent shipments of products under this Agreement to make out invoice
   declarations irrespective of the value of the products concerned. An exporter seeking
   such authorisation must offer to the satisfaction of the customs authorities all guarantees
   necessary to verify the originating status of the products as well as the fulfilment of the
   other requirements of this Protocol.
2. The customs authorities may grant the status of approved exporter subject to any
   conditions which they consider appropriate.
3. The customs authorities shall grant to the approved exporter a customs authorization
   number which shall appear on the invoice declaration.
4. The customs authorities shall monitor the use of the authorization by the approved
   exporter.
                                                      82
 ---pagebreak---                                                  14
5.    The customs authorities may withdraw the authorization at any time. They shall do so
      where the approved exporter no longer offers the guarantees referred to in paragraph 1,
      does not fulfill the conditions referred to in paragraph 2 or otherwise makes an incorrect
      use of the authorization.
                                             Article 22
                                    Validity of proof of origin
1.      A proof of origin shall be valid for four months from the date of issue in the exporting
        country, and must be submitted within the said period to the customs authorities of the
        importing country.
2.      Proofs of origin which are submitted to the customs authorities of the importing
        country after the final date for presentation specified in paragraph 1 may be accepted
        for the purpose of applying preferential treatment, where the failure to submit these
        documents by the final date set is due to exceptional circumstances.
3.      In other cases of belated presentation, the customs authorities of the importing country
        may accept the proofs of origin where the products have been submitted before the
        said final date.
                                             Article 23
                                  Submission of proof of origin
Proofs of origin shall be submitted to the customs authorities of the importing country in
accordance with the procedures applicable in that country. The said authorities may require a
translation of a proof of origin and may also require the import declaration to be accompanied
by a statement from the importer to the effect that the products meet the conditions required
for the implementation of this Agreement.
                                             Article 24
                                   Importation by instalments
Where, at the request of the importer and on the conditions laid down by the customs
authorities of the importing country, dismantled or non-assembled products within the
meaning of general rule 2(a) of the Harmonized System falling within Sections XVI and XVIÏ
or heading Nos. 7308 and 9406 of the Harmonized System are imported by instalments, a
single proof of origin for such products shall be submitted to the customs authorities upon
importation of the first instalment.
                                             Article 25
                                 Exemptions from proof of origin
 1.      Products sent as small packages from private persons to private persons or forming
         part of travellers' personal luggage shall be admitted as originating products without
         requiring the submission of a proof of origin, provided that such products are not
         imported by way of trade and have been declared as meeting the requirements of this
         Protocol and where there is no doubt as to the veracity of such a declaration. In the
                                                          83
 ---pagebreak---                                                 15
       case of products sent by post, this declaration can be made on the customs declaration
       C2/CP3 or on a sheet of paper annexed to that document.
       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 shall not exceed ECU 500 in the case of
       small packages or ECU 1200 in the case of products forming part of travellers'
       personal luggage.
                                           Article 26
                                    Supporting documents
The documents referred to in Articles 16(3) and 20(3) used for the purpose of proving that
products covered by a movement certificate EUR.l or an invoice declaration can be
considered as products originating in the Community or the Faroe Islands and fulfill the other
requirements of this Protocol may consist inter alia of the following:
(a)    direct evidence of the processes carried out by the exporter or supplier to obtain the
       goods concerned, contained for example in his accounts or internal bookkeeping;
(b)    documents proving the originating status of materials used, issued or made out in the
       Community or the Faroe Islands where these documents are used in accordance with
       domestic law;
(c)    documents proving the working or processing of materials in the Community or the
       Faroe Islands, issued or made out in the Community or the Faroe Islands, where these
       documents are used in accordance with domestic law;
(d)    movement certificates EUR. 1 or invoice declarations proving the originating status of
       materials used, issued or made out in the Community or the Faroe Islands in
       accordance with this Protocol.
                                           Article 27
                 Preservation of proof of origin and supporting documents
1.     The exporter applying for the issue of a movement certificate EUR.l shall keep for at
       least three years the documents referred to in Article 16(3).
2.     The exporter making out an invoice declaration shall keep for at least three years a
       copy of this invoice declaration as well as the documents referred to in Article 20(3).
3.     The customs authorities of the exporting country issuing a movement certificate
       EUR.l shall keep for at least three years the application form referred to in Article
       16(2).
4.     The customs authorities of the importing country shall keep for at least three years the
       movement certificates EUR. 1 and the invoice declarations submitted to them.
                                                         84
 ---pagebreak---                                             16
                                        Article 28
                            Discrepancies and formal errors
   The discovery of slight discrepancies between the statements made in the proof of
   origin and those made in the documents submitted to the customs office for the
   purpose of carrying out the formalities for importing the products shall not ipso facto
   render the proof of origin null and void if it is duly established that this document does
   correspond to the products submitted.
   Obvious formal errors such as typing errors on a proof of origin should not cause this
   document to be rejected if these errors are not such as to create doubts concerning the
   correctness of the statements made in this document.
                                        Article 29
                              Amounts expressed in ECU
1. Amounts in the national currency of the exporting country equivalent to the amounts
   expressed in ECU shall be fixed by the exporting country and communicated to the
   importing countries through the European Commission.
2. When the amounts exceed the corresponding amounts fixed by the importing country,
   the latter shall accept them if the products are invoiced in the currency of the exporting
   country. When the products are invoiced in the currency of another EC Member State,
   the importing country shall recognize the amount notified by the country concerned.
3. The amounts to be used in any given national currency shall be the equivalent in that
   national currency of the amounts expressed in ECU as at the first working day in
   October 1996.
4. The amounts expressed in ECU and their equivalents in the national currencies of the
   EC Member States and the Faroe Islands shall be reviewed by the Joint Committee at
   the request of the Community or the Faroe Islands. When carrying out this review, the
   Joint Committee shall ensure that there will be no decrease in the amounts to be used
   in any national currency and shall furthermore consider the desirability of preserving
   the effects of the limits concerned in real terms. For this purpose, it may decide to
   modify the amounts expressed in ECU.
                                        TITLE VI
         ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION
                                         Article 30
                                    Mutual assistance
    The customs authorities of the EC Member States and of the Faroe Islands shall
    provide each other, through the European Commission, with specimen impressions of
    stamps used in their customs offices for the issue of movement certificates EUR.l and
    with the addresses of the customs authorities responsible for verifying those
    certificates and invoice declarations.
                                                      85
 ---pagebreak---                                                   17
         In order to ensure the proper application of this Protocol, the Community and the
         Faroe Islands shall assist each other, through the competent customs administrations,
         in checking the authenticity of the movement certificates EUR.l or the invoice
         declarations and the correctness of the information given in these documents.
                                              Article 31
                                  Verification of proofs of origin
 1.      Subsequent verifications of proofs of origin shall be carried out at random or
         whenever the customs authorities of the importing country have reasonable doubts as
         to the authenticity of such documents, the originating status of the products concerned
         or the fulfilment of the other requirements of this Protocol.
2.       For the purposes of implementing the provisions of paragraph 1, the customs
         authorities of the importing country shall return the movement certificate EUR. 1 and
         the invoice, if it has been submitted, the invoice declaration, or a copy of these
         documents, to the customs authorities of the exporting country giving, where
         appropriate, the reasons for the enquiry. Any documents and information obtained
         suggesting that the information given on the proof of origin is incorrect shall be
         forwarded in support of the request for verification.
3.       The verification shall be carried out by the customs authorities of the exporting
         country. For this purpose, they shall have the right to call for any evidence and to
         carry out any inspection of the exporter's accounts or any other check considered
         appropriate.
4.       If the customs authorities of the importing country decide to suspend the granting of
         preferential treatment to the products concerned while awaiting the results of the
         verification, release of the products shall be offered to the importer subject to any
         precautionary measures judged necessary.
5.       The customs authorities requesting the verification shall be informed of the results of
         this verification as soon as possible. These results must indicate clearly whether the
         documents are authentic and whether the products concerned can be considered as
         products originating in the Community or the Faroe Islands and fulfill the other
         requirements of this Protocol.
6.       If in cases of reasonable doubt there is no reply within ten months of the date of the
         verification request or if the reply does not contain sufficient information to determine
         the authenticity of the document in question or the real origin of the products, the
         requesting customs authorities shall, except in exceptional circumstances, refuse
         entitlement to the preferences.
                                              Article 32
                                         Dispute settlement
Where disputes arise in relation to the verification procedures cf Article 31 which cannot be
settled between the customs authorities requesting a verification and the customs authorities
responsible for carrying out this verification or where they raise a question as to the
interpretation of this Protocol, they shall be submitted to the Joint Committee.
In all cases the settlement of disputes between the importer and the customs authorities of the
importing country shall be under the legislation of the said country.
                                                              86
 ---pagebreak---                                                 18
                                            Article 33
                                            Penalties
Penalties shall be imposed on any person who draws up, or causes to be drawn up, a
document which contains incorrect information for the purpose of obtaining a preferential
treatment for products.
                                            Article 34
                                           Free zones
1.      The Community and the Faroe Islands shall take all necessary steps to ensure that
        products traded under cover of a proof of origin which in the course of transport use a
        free zone situated in their territory, are not substituted by other goods and do not
        undergo handling other than normal operations designed to prevent their deterioration.
2.      By means of an exemption to the provisions contained in paragraph 1, when products
        originating in the Community or the Faroe Islands are imported into a free zone under
        cover of a proof of origin and undergo treatment or processing, the authorities
        concerned shall issue a new EUR. 1 certificate at the exporter's request, if the treatment
        or processing undergone is in conformity with the provisions of this Protocol.
                                           TITLE VII
                                   CEUTA AND MELILLA
                                            Article 35
                                  Application of the Protocol
        The term 'Community' used in Article 2 does not cover Ceuta and Melilla.
        Products originating in the Faroe Islands, when imported into Ceuta or Melilla, shall
        enjoy in all respects the same customs regime as that which is applied to products
        originating in the customs territory of the Community under Protocol 2 of the Act of
        Accession of the Kingdom of Spain and the Portuguese Republic to the European
        Communities, the Faroe Islands shall grant to imports of products covered by the
        Agreement and originating in Ceuta and Melilla the same customs regime as that
        which is granted to products imported from and originating in the Community.
        For the purpose of the application of paragraph 2 concerning products originating in
        Ceuta and Melilla, this Protocol shall apply mutatis mutandis subject to the special
        conditions set out in Article 36.
                                                       87
 ---pagebreak---                                               19
                                          Article 36
                                      Special conditions
1. Providing they have been transported directly in accordance with the provisions of
   Article 12, the following shall be considered as:
   (1)         products originating in Ceuta and Melilla:
               (a) products wholly obtained in Ceuta and Melilla;
               (b) products obtained in Ceuta and Melilla in the manufacture of which
                    products other than those referred to in (a) are used, provided that:
                    (i)  the said products have undergone sufficient working or processing
                         within the meaning of Article 5 of this Protocol; or that
                    (ii) those products are originating in the Faroe Islands or the
                         Community within the meaning of this Protocol, provided that they
                         have been submitted to working or processing which goes beyond
                         the insufficient working or processing referred to in Article 6(1).
   (2)         products originating in the Faroe Islands:
               (a) products wholly obtained in the Faroe Islands;
               (b) products obtained in the Faroe Islands, in the manufacture of which
                    products other than those referred to in (a) are used, provided that :
                    (i)  the said products have undergone sufficient working or processing
                         within the meaning of Article 5 of this Protocol; or that
                    (ii) those products are originating in Ceuta and Melilla or the
                         Community within the meaning of this Protocol, provided that they
                         have been submitted to working or processing which goes beyond
                         the insufficient working or processing referred to in Article 6(1).
2.   Ceuta and Melilla shall be considered as a single territory.
3.   The exporter or his authorized representative shall enter "the Faroe Islands" and
     "Ceuta and Melilla" in Box 2 of movement certificates EUR.l or on invoice
     declarations. In addition, in the case of products originating in Ceuta and Melilla, this
     shall be indicated in Box 4 of movement certificates EUR.l or on invoice declarations.
4.   The Spanish customs authorities shall be responsible for the application of this
     Protocol in Ceuta and Melilla.
                                                     88
 ---pagebreak---                                         ANNEX I
                        Introductory notes to the list in Annex II
Note 1:
The list sets out the conditions required for all products to be considered as sufficiently
worked or processed within the meaning of Article 5 of the Protocol.
Note 2:
2.1 The first two columns in the list describe the product obtained. The first column
    gives the heading number or chapter number used in the Harmonized System and the
    second column gives the description of goods used in that system for that heading or
    chapter. For each entry in the first two columns a rule is specified in columns 3 or 4.
    Where, in some cases, the entry in the first column is preceded by an 'ex', this
    signifies that the rules in columns 3 or 4 apply only to the part of that heading as
    described in column 2.
2.2 Where several heading numbers are grouped together in column 1 or a chapter
    number is given and the description of products in column 2 is therefore given in
    general terms, the adjacent rules in columns 3 or 4 apply to all products which, under
    the Harmonized System, are classified in headings of the chapter or in any of the
    headings grouped together in column 1.
2.3 Where there are different rules in the list applying to different products within a
    heading, each indent contains the description of that part of the heading covered by
    the adjacent rules in columns 3 or 4.
2.4 Where, for an entry in the first two columns, a rule is specified in both columns 3 and
    4, the exporter may opt, as an alternative, to apply either the rule set out in column 3
    or that set out in column 4. If no origin rule is given in column 4, the rule set out in
    column 3 has to be applied.
Note 3:
3.1 The provisions of Article 5 of the Protocol concerning products having acquired
    originating status which are used in the manufacture of other products apply
    regardless of whether this status has been acquired inside the factory where these
    products are used or in another factory in the Community or in the Faroe Islands.
    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 per cent of the
    ex-works price, is made from "other alloy steel roughly shaped by forging" of
    heading No ex 7224.
                                                       89
 ---pagebreak---     If this forging has been forged in the Community from a non-originating ingot, it has
    already acquired originating status by virtue of the rule for heading No ex 7224 in the
    list. The forging can then count as originating in the value calculation for the engine
    regardless of whether it was produced in the same factory or in another factory in the
    Community. The value of the non-originating ingot is thus not taken into account
    when adding up the value of the non-originating materials used.
3.2 The rule in the list represents the minimum amount of working or processing
    required and the carrying out of more working or processing also confers originating
    status; conversely, the carrying out of less working or processing cannot confer
    originating status. Thus if a rule provides that non-originating material at a certain
    level of manufacture may be used, the use of such material at an earlier stage of
    manufacture is allowed and the use of such material at a later stage is not.
3.3 Without prejudice to Note 3.2 where a rule states that "materials of any heading"
    may be used, materials of the same heading as the product may also be used, subject,
    however, to any specific limitations which may also be contained in the rule.
    However, the expression "manufacture from materials of any heading, including
    other materials of heading No ... " means that only materials classified in the same
    heading as the product of a different description than that of the product as given in
    column 2 of the list may be used.
3.4 When a rule in the list specifies that a product may be manufactured from more than
    one material, this means that any one or more materials may be used. It does not
    require that all be used.
    Example:
    The rule for fabrics of HS 5208 to 5212 provides that natural fibres may be used and
    that chemical materials, among other materials, may also be used. This does not
    mean that both have to be used; it is possible to use one or the other or both.
3.5 Where a rule in the list specifies that a product must be manufactured from a
    particular material, the condition obviously does not prevent the use of other
    materials which, because of their inherent nature, cannot satisfy the rule. (See also
    Note 6.2 below in relation to textiles).
    Example:
    The rule for prepared foods of heading No. 1904 which specifically excludes the use
     of cereals and their derivatives does not prevent the use of mineral salts, chemicals
     and other additives which are not products from cereals.
    However, this does not apply to products which, although they cannot be
    manufactured from the particular material specified in the list, can be produced from
    a material of the same nature at an earlier stage of manufacture.
                                                           SO
 ---pagebreak---     Example:
    In the case of an article of apparel of ex Chapter 62 made from non-woven materials,
    if the use of only non-originating yarn is allowed for this class of article, it is not
    possible to start from non-woven cloth - even if non-woven cloths cannot normally
    be made from yarn. In such cases, the starting material would normally be at the
    stage before yarn - that is the fibre stage.
3.6 Where, in a rule in the list, two percentages are given for the maximum value of non-
    originating materials that can be used, then these percentages may not be added
    together. In other words, the maximum value of all the non-originating materials
    used may never exceed the highest of the percentages given. Furthermore, the
    individual percentages must not be exceeded in relation to the particular materials
    they apply to.
Note 4:
4.1 The term "natural fibres" is used in the list to refer to fibres other than artificial or
    synthetic fibres. It is restricted to the stages before spinning takes place, including
    waste, and, unless otherwise specified, includes fibres that have been carded, combed
    or otherwise processed but not spun.
4.2 The term "natural fibres" includes horsehair of heading No 0503, silk of heading Nos
    5002 and 5003 as well as 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.
4.3 The terms "textile pulp", "chemical materials" and "paper-making materials" are used
    in the list to describe the materials not classified in Chapters 50 to 63, which can be
    used to manufacture artificial, synthetic or paper fibres or yarns.
4.4 The term "man-made staple fibres" is used in the list to refer to synthetic or artificial
    filament tow, staple fibres or waste, of heading Nos 5501 to 5507.
Note 5:
5.1 Where for a given product in the list a reference is made to this note, the conditions
     set out in column 3 shall not be applied to any basic textile materials, used in the
     manufacture of this product, which, taken together, represent 10 per cent or less of
    the total weight of all the basic textile materials used. (See also Notes 5.3 and 5.4
    below).
5.2 However, the tolerance mentioned in Note 5.1 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,
 ---pagebreak--- - 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 of polypropylene,
- synthetic man-made staple fibres of polyester,
- synthetic man-made staple fibres of polyamide,
- synthetic man-made staple fibres of polyacrylonitrile,
- synthetic man-made staple fibres of polyimide,
- synthetic man-made staple fibres of polytetrafluoroethylene,
- synthetic man-made staple fibres of polyphenylene sulphide,
- synthetic man-made staple fibres of polyvinyl chloride,
- other synthetic man-made staple fibres,
- artificial man-made staple fibres of viscose,
- other artificial man-made staple fibres,
- yarn made of polyurethane segmented with flexible segments of polyether whether
   or not gimped,
- yarn made of polyurethane segmented with flexible segments of polyester whether
   or not gimped,
- products of heading 5605 (metallized yarn) incorporating strip consisting of a core
   of aluminium foil or of a core of plastic film whether or not coated with aluminium
   powder, of a width not exceeding 5 mm, sandwiched by means of a transparent or
   coloured adhesive between two layers of plastic film ,
- other products of heading 5605.
                                                    92
 ---pagebreak---     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 per cent of the yarn.
    Example:
    A woollen fabric of heading No 5112 made from woollen yarn of heading No 5107
    and synthetic yarn of staple fibres of heading No 5509 is a mixed fabric. Therefore
    synthetic yarn which does not satisfy the origin rules (which require manufacture
    from chemical materials or textile pulp) or woollen yarn that does not satisfy the
    origin rules (which require manufacture from natural fibres, not carded or combed or
    otherwise prepared for spinning) or a combination of the two may be used provided
    their total weight does not exceed 10 per cent of the weight of the fabric.
    Example:
    Tufted textile fabric of heading No 5802 made from cotton yarn of heading No 5205
    and cotton fabric of heading No 5210 is only a mixed product if the cotton fabric is
    itself a mixed fabric being made from yarns classified in two separate headings or if
    the cotton yarns used are themselves mixtures.
    Example:
    If the tufted textile fabric concerned had been made from cotton yarn of heading No
    5205 and synthetic fabric of heading No 5407, then, obviously, the yarns used are
    two separate basic textile materials and the tufted textile fabric is accordingly a
    mixed product.
    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 does not exceed 10 per cent of the weight
    of the textile materials of 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.
5.3 In the case of products incorporating "yarn made of polyurethane segmented with
    flexible segments of polyether whether or not gimped" this tolerance is 20 per cent in
    respect of this yarn.
5.4 In the case of products incorporating "strip consisting of a core of aluminium foil or
    of a core of plastic film whether or not coated with aluminium powder, of a width
    not exceeding 5 mm, sandwiched by means of an adhesive between two films of
    plastic film",, this tolerance is 30 per cent in respect of this strip.
                                                       33
 ---pagebreak--- Note 6:
6.1 In the case of those textile products which are marked in the list by a footnote
      referring to this note, textile materials, with the exception of linings and interlinings,
      which do not satisfy the rule set out in the list in column 3 for the made-up product
      concerned may be used provided that they are classified in a heading other than that
      of the product and that their value does not exceed 8 per cent of the ex-works price
      of the product.
6.2 Without prejudice to Note 6.3, materials which are not classified within Chapters 50
      to 63 may be used freely in the manufacture of textile products, whether or not they
      contain textiles.
      Example:
      If a rule in the list provides that for a particular textile item, such as trousers, yarn
      must be used, this does not prevent the use of metal items, such as buttons, because
      buttons are not classified within Chapters 50 to 63. For the same reason, it does not
      prevent the use of slide-fasteners even though slide-fasteners normally contain
      textiles.
6.3 Where a percentage rule applies, the value of materials which are not classified
      within Chapters 50 to 63 must be taken into account when calculating the value of
      the non-originating materials incorporated.
Note 7:
7.1 For the purposes of heading Nos ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex
      3403, the "specific processes" are the following:
      (a) vacuum distillation;
      (b) redistillation by a very thorough fractionation process1
      (c) cracking;
      (d) reforming;
      (e) extraction by means of selective solvents;
      (f) the process comprising all the following operations: processing with concentrated
          sulphuric acid, oleum or sulphuric anhydride; neutralization with alkaline agents;
          decolorization and purification with naturally active earth, activated earth,
          activated charcoal or bauxite;
     (g) polymerization;
     (h) alkylation;
     (i) isomerization.
  See Additional Explanatory Note 4(b) to Chapter 27 of the combined nomenclature
                                                          94
 ---pagebreak--- 7.2 For the purposes of heading Nos 2710, 2711 and 2712, the "specific processes" are
      the following:
      (a) vacuum distillation;
      (b) redistillation by a very thorough fractionation process1
      (c) cracking;
      (d) reforming;
      (e) extraction by means of selective solvents;
      (f) the process comprising all the following operations: processing with concentrated
            sulphuric acid, oleum or sulphuric anhydride; neutralization with alkaline agents;
           decolorization and purification with naturally active earth, activated earth,
            activated charcoal or bauxite;
      (g) polymerization;
      (h) alkylation;
      (ij) isomerization;
      (k) in respect of heavy oils falling within heading No ex 2710 only, desulphurization
           with hydrogen resulting in a reduction of at least 85 per cent of the sulphur
            content of the products processed (ASTM D 1266-59 T method);
      (1) in respect of products falling within heading No 2710 only, deparaffining by a
            process other than filtering;
      (m)in respect of heavy oils falling within heading No ex 2710 only, treatment with
            hydrogen at a pressure of more than 20 bar and a temperature of more than
            250°C with the use of a catalyst, other than to effect desulphurization, when the
            hydrogen constitutes an active element in a chemical reaction. The further
            treatment with hydrogen of lubricating oils of heading No ex 2710 (e.g.
            hydrofinishing or decolorization) in order, more especially, to improve colour or
            stability shall not, however, be deemed to be a specific process;
       (n) in respect of fuel oils falling within heading No ex 2710 only, atmospheric
            distillation, on condition that less than 30 per cent of these products distils, by
            volume, including losses, at 300°C by the ASTM D 86 method;
       (o) in respect of heavy oils other than gas oils and fuel oils falling within heading No
            ex 2710 only, treatment by means of a high-frequency electrical brush-discharge.
7.3       For the purposes of heading Nos ex 2707, 2713 to 2715, ex 2901, ex 2902 and ex
          3403, simple operations such as cleaning, decanting, desalting, water separation,
          filtering, colouring, marking, obtaining a sulphur content as a result of mixing
          products with different sulphur contents, any combination of these operations or
          like operations do not confer origin.
1
   See Additional Explanatory Note 4(b) to Chapter 27 of the combined nomenclature
 ---pagebreak---                                    ANNEX H
LIST OF WORKING OR PROCESSING REQUIRED TO BE CARRIED OUT
 ON NON-ORIGINATING MATERIALS IN ORDER THAT THE PRODUCT
        MANUFACTURED CAN OBTAIN ORIGINATING STATUS
The products mentioned in the list may not all be covered by the agreement. It is
        therefore necessary to consult the other parts of the agreement
                                                G
                                                *j 6
 ---pagebreak--- HS heading    Description of product      Working or processing carried out on non-originating
No.                                       materials that confers originating status
     (1)                   (2)                            (3)              or            (4)
Chapter 01    Live animals               All the animals of Chapter
                                          1 used must be wholly
                                         obtained
Chapter 02    Meat and edible meat       Manufacture in which all
              offal                      the materials of Chapters 1
                                         and 2 used must be wholly
                                         obtained
Chapter 03    Fish and crustaceans,      Manufacture in which all
              molluscs and other         the materials of Chapter 3
              aquatic invertebrates      used must be wholly
                                         obtained
ex Chapter 04 Dairy produce; birds'      Manufacture in which all
              eggs; natural honey;       the materials of Chapter 4
              edible products of animal  used must be wholly
              origin, not elsewhere      obtained
              specified or included;
              except for:
0403          Buttermilk, curdled milk   Manufacture in which:
              and cream, yoghurt,        - all the materials of
              képhir and other           Chapter 4 used must be
              fermented or acidified     wholly obtained;
              milk and cream, whether    - any fruit juice (except
              or not concentrated or     those of pineapple, lime or
              containing added sugar or  grapefruit) of heading No
              other sweetening matter    2009 used must already be
              or flavoured or containing originating;
              added fruit, nuts or cocoa - the value of any materials
                                         of Chapter 17 used does not
                                         exceed 30% of the ex-works
                                         price of the product
ex Chapter 05 Products of animal origin, Manufacture in which all
              not elsewhere specified or the materials of Chapter 5
              included; except for:      used must be wholly
                                         obtained
ex 0502       Prepared pigs', hogs' or   Cleaning, disinfecting,
              boars' bristles and hair   sorting and straightening of
                                         bristles and hair
Chapter 06    Live trees and other       Manufacture in which:
              plants; bulbs, roots and   - all the materials of
              the like; cut flowers and  Chapter 6 used must be
              ornamental foliage         wholly obtained;
                                         - the value of all the
                                         materials used does not
                                         exceed 50% of the ex-works
                                         price of the product
                                                           97
 ---pagebreak--- HS heading    Description of product       Working or processing carried out on non-originating
No.                                        materials that confers originating status
      (1)                   (2)                            (3)              or             (4)
Chapter 07    Edible vegetables and       Manufacture in which all
              certain roots and tubers    the materials of Chapter 7
                                          used must be wholly
                                          obtained
Chapter 08    Edible fruit and nuts; peel Manufacture in which:
              of citrus fruits or melons  - all the fruit and nuts used
                                          must be wholly obtained;
                                          - the value of any materials
                                          of Chapter 17 used does not
                                          exceed 30 % of the value of
                                          the ex-works price of the
                                          product
ex Chapter 09 Coffee, tea, maté and       Manufacture in which all
              spices; except for:         the materials of Chapter 9
                                          used must be wholly
                                          obtained
0901          Coffee, whether or not      Manufacture from materials
              roasted or decaffeinated;   of any heading
              coffee husks and skins;
              coffee substitutes
              containing coffee in any
              proportion
0902          Tea, whether or not         Manufacture from materials
              flavoured                   of any heading
ex 0910       Mixtures of spices          Manufacture from materials
                                          of any heading
Chapter 10    Cereals                     Manufacture in which all
                                          the materials of Chapter 10
                                          used must be wholly
                                          obtained
ex Chapter 11 Products of the milling     Manufacture in which all
              industry; malt; starches;   the cereals, edible
              inulin; wheat gluten;       vegetables, roots and tubers
              except for:                 of heading No 0714 or fruit
                                          used must be wholly
                                          obtained
ex 1106       Flour, meal and powder      Drying and milling of
              of the dried, shelled       leguminous vegetables of
              leguminous vegetables of    heading No 0708
              heading No 0713
                                                98
 ---pagebreak--- HS heading    Description of product      Working or processing carried out on non-originating
No.                                       materials that confers originating status
     (1)                   (2)                            (3)              or            (4)
Chapter 12    Oil seeds and oleaginous   Manufacture in which all
              fruits; miscellaneous      the materials of Chapter 12
              grains, seeds and fruit;   used must be wholly
              industrial or medicinal    obtained
              plants; straw and fodder
1301          Lac; natural gums, resins, Manufacture in which the
              gum-resins and oleoresins  value of any materials of
              (for example, balsams)     heading No 1301 used may
                                         not exceed 50% of the ex-
                                         works price of the product
1302          Vegetable saps and
              extracts; pectic
              substances, pectinates and
              pectates; agar-agar and
              other mucilages and
              thickeners, whether or
              not modified, derived
              from vegetable products:
              - Mucilages and            Manufacture from non-
              thickeners, modified,      modified mucilages and
              derived from vegetable     thickeners
              products
              - Other                    Manufacture in which the
                                         value of all the materials
                                         used does not exceed 50% of
                                         the ex-works price of the
                                         product
Chapter 14    Vegetable plaiting         Manufacture in which all
              materials; vegetable       the materials of Chapter 14
              products not elsewhere     used must be wholly
              specified or included      obtained
ex Chapter 15 Animal or vegetable fats   Manufacture in which all
              and oils and their         the materials used are
              cleavage products;         classified within a heading
              prepared edible fats;      other than that of the
              animals or vegetable       product
              waxes; except for:
1501          Pig fat (including lard)
              and poultry fat, other
              than that of heading no.
              0209 or 1503:
                                                   99
 ---pagebreak--- HS heading Description of product      Working or processing carried out on non-originating
No.                                     materials that confers originating status
      (1)               (2)                             (3)              or            (4)
            - Fats from bones or      Manufacture from materials
           waste                       of any heading except those
                                      of heading Nos 0203, 0206
                                      or 0207 or bones of heading
                                      No 0506
              Other                   Manufacture from meat or
                                      edible offal of swine of
                                      heading No 0203 or 0206 or
                                      of meat and edible offal of
                                      poultry of heading No 0207
 1502      Fats of bovine animals,
           sheep or goats, other than
           those of heading No.
            1503
           - Fats from bones or       Manufacture from materials
           waste                      of any heading except those
                                      of heading Nos 0201, 0202,
                                      0204 or 0206 or bones of
                                      heading No 0506
              Other                   Manufacture in which all
                                      the materials of Chapter 2
                                      used must be wholly
                                      obtained
1504       Fats and oils and their
           fractions, offish or
           marine mammals,
           whether or not refined,
           but not chemically
           modified:
              Solid fractions         Manufacture from materials
                                      of any heading including
                                      other materials of heading
                                      No 1504
              Other                   Manufacture in which all
                                      the materials of Chapters 2
                                      and 3 used must be wholly
                                      obtained
ex 1505    Refined lanolin            Manufacture from crude
                                      wool grease of heading No
                                      1505
1506       Other animals fats and
           oils and their fractions,
           whether or not refined,
           but not chemically
           modified:
                                              i oa
 ---pagebreak--- HS heading   Description of product        Working or processing carried out on non-originating
No.                                        materials that confers originating status
     (1)                   (2)                             (3)              or            (4)
                Solid fractions           Manufacture from materials
                                          of any heading including
                                          other materials of heading
                                          No 1506
                Other                     Manufacture in which all
                                          the materials of Chapter 2
                                          used must be wholly
                                          obtained
1507 to 1515 Vegetable oils and their
             fractions:
             - Soya, ground nut,          Manufacture in which all
             palm, copra, palm kernel,    the materials used are
             babassu, tung and oiticica   classified within a heading
             oil, myrtle wax and Japan    other than that of the
             wax, fractions of jojoba     product
             oil and oils for technical
             or industrial uses other
             than the manufacture of
             foodstuffs for human
             consumption
             - Solid fractions, except    Manufacture from other
             for that of jojoba oil       materials of heading Nos.
                                          1507 to 1515
                Other                     Manufacture in which all
                                          the vegetable materials used
                                          must be wholly obtained
1516         Animal or vegetable fats     Manufacture in which:
             and oils and their           - all the materials of
             fractions, partly or wholly  Chapter 2 used must be
             hydrogenated, inter-         wholly obtained;
             esterified, re-esterified or - all the vegetable materials
             elaidinized, whether or      used must be wholly
             not refined, but not         obtained. However,
             further prepared             materials of headings 1507,
                                           1508, 1511 and 1513 may
                                          be used
1517         Margarine; edible            Manufacture in which:
             mixtures or preparations     - all the materials of
             of animal or vegetable       Chapters 2 and 4 used must
             fats or oils or effractions  be wholly obtained;
             of different fats or oils of - all the vegetable materials
             this Chapter, other than     used must be wholly
             edible fats or oils or their obtained. However,
             fractions of heading No      materials of headings 1507,
             1516                          1508, 1511 and 1513 may
                                          be used
                                              i 01
 ---pagebreak--- HS heading    Description of product      Working or processing carried out on non-originating
No.                                       materials that confers originating status
     (1)                   (2)                            (3)              or            (4)
Chapter 16    Preparations of meat, of   Manufacture from animals
              fish or of crustaceans,    of Chapter 1. All the
              molluscs or other aquatic  materials of Chapter 3 used
              invertebrates              must be wholly obtained
ex Chapter 17 Sugars and sugar           Manufacture in which all
              confectionery; except for: the materials used are
                                         classified within a heading
                                         other than that of the
                                         product
ex 1701       Cane or beet sugar and     Manufacture in which the
              chemically pure sucrose,   value of any materials of
              in solid form, flavoured   Chapter 17 used does not
              or coloured                exceed 30% of the ex-works
                                         price of the product
1702          Other sugars, including
              chemically pure lactose,
              maltose, glucose and
              fructose, in solid form;
              sugar syrups not
              containing added
              flavouring or colouring
              matter; artificial honey,
              whether or not mixed
              with natural honey;
              caramel:
              - Chemically pure          Manufacture from materials
              maltose and fructose       of any heading including
                                         other materials of heading
                                         No 1702
              - Other sugars in solid    Manufacture in which the
              form, flavoured or         value of any materials of
              coloured                   Chapter 17 used does not
                                         exceed 30% of the ex-works
                                         price of the product
                 Other                   Manufacture in which all
                                         the materials used must
                                         already be originating
ex 1703       Molasses resulting from    Manufacture in which the
              the extraction or refining value of any materials of
              of sugar, flavoured or     Chapter 17 used docs not
              coloured                   exceed 30% of the ex-works
                                         price of the product
                                               10 2
 ---pagebreak--- HS heading Description of product       Working or processing carried out on non-originating
No.                                     materials that confers originating status
     (1)                (2)                             (3)              or            (4)
1704       Sugar confectionery         Manufacture in which:
           (including white            - all the materials used are
           chocolate), not containing  classified within a heading
           cocoa                       other than that of the
                                       product;
                                       - the value of any materials
                                       of Chapter 17 used does not
                                       exceed 30% of the ex-works
                                       price of the product
Chapter 18 Cocoa and cocoa             Manufacture in which:
           preparations                - all the materials used are
                                       classified within a heading
                                       other than that of the
                                       product;
                                       - the value of any materials
                                       of Chapter 17 used does not
                                       exceed 30% of the ex-works
                                       price of the product
1901       Malt extract; food
           preparations of flour,
           meal, starch or malt
           extract, not containing
           cocoa or containing less
           than 40% by weight of
           cocoa calculated on a
           totally defatted basis, not
           elsewhere specified or
           included; food
           preparations of goods of
           heading Nos. 0401 to
           0404, not containing
           cocoa or containing less
           than 5% by weight of
           cocoa calculated on a
           totally defatted basis, not
           elsewhere specified or
           included:
           - Malt extract              Manufacture from cereals of
                                       Chapter 10
           - Other                     Manufacture in which:
                                        - all the materials used are
                                       classified within a heading
                                        other than that of the
                                        product;
                                        - the value of any materials
                                        of Chapter 17 used does not
                                        exceed 30% of the ex-works
                                        price of the product
                                                n '-i
 ---pagebreak--- HS heading  Description of product      Working or processing carried out on non-originating
No.                                     materials that confers originating status
     (1)                 (2)                            (3)              or            (4)
1902        Pasta, whether or not
            cooked or stuffed (with
            meat or other substances)
            or otherwise prepared,
            such as spaghetti,
            macaroni, noodles,
            lasagne, gnocchi, ravioli,
            cannelloni; couscous,
            whether or not prepared:
            - Containing 20% or less   Manufacture in which all
           by weight of meat, meat     the cereals and derivatives
           offal, fish, crustaceans or (except durum wheat and its
            molluscs                   derivatives) used must be
                                       wholly obtained
           - Containing more than      Manufacture in which:
           20% by weight of meat,      - all cereals and derivatives
           meat offal, fish,           (except durum wheat and its
           crustaceans or molluscs     derivatives) used must be
                                       wholly obtained;
                                       - all the materials of
                                       Chapters 2 and 3 used must
                                       be wholly obtained
1903       Tapioca and substitutes     Manufacture from materials
           therefor prepared from      of any heading except potato
           starch, in the form of      starch of heading No. 1108
           flakes, grains, pearls,
           sittings or in similar
           forms
1904       Prepared foods obtained     Manufacture:
           by the swelling or          - from materials not
           roasting of cereals or      classified within heading
           cereal products (for        No 1806;
           example, corn flakes);      - in which all the cereals
           cereals, other than maize   and flour (except durum
           (corn) in grain form, or in wheat and its dérivâtes) used
           the form of flakes or other must be wholly obtained;
           worked grains (except       - in which the value of any
           flour and meal), pre-       materials of Chapter 17 used
           cooked, or otherwise        does not exceed 30% of the
           prepared, not elsewhere     ex-works price of the
           specified or included       product
1905       Bread, pastry, cakes,       Manufacture from materials
           biscuits and other bakers'  of any heading except those
           wares, whether or not       of Chapter 11
           containing cocoa;
           communion wafers,
           empty cachets of a kind
           suitable for
           pharmaceutical use,
           sealing wafers, rice paper
           and similar products
                                                104
 ---pagebreak--- HS heading    Description of product      Working or processing carried out on non-originating
No.                                       materials that confers originating status
     (!)                   (2)                            (3)              or            (4)
ex Chapter 20 Preparations of            Manufacture in which all
              vegetables, fruit, nuts or the fruit, nuts or vegetables
              other parts of plants;     used must be wholly
              except for:                obtained
ex 2001       Yams, sweet potatoes and   Manufacture in which all
              similar edible parts of    the materials used are
              plants containing 5% or    classified within a heading
              more by weight of starch,  other than that of the
              prepared or preserved by   product
              vinegar or acetic acid
ex 2004 and   Potatoes in the form of    Manufacture in which all
ex 2005       flour, meal or flakes,     the materials used are
              prepared or preserved      classified within a heading
              otherwise than by vinegar  other than that of the
              or acetic acid             product
2006          Vegetables, fruit, nuts,   Manufacture in which the
              fruit-peel and other parts value of any materials of
              of plants, preserved by    Chapter 17 used does not
              sugar (drained, glacé or   exceed 30% of the ex-works
              crystallized)              price of the product
2007          Jams, fruit jellies,       Manufacture in which:
              marmalades, fruit or nut   - all the materials used are
              purée and fruit or nut     classified within a heading
              pastes, being cooked       other than that of the
              preparations, whether or   product;
              not containing added       - the value of any materials
              sugar or other sweetening  of Chapter 17 used does not
              matter                     exceed 30% of the ex-works
                                         price of the product
ex 2008       - Nuts, not containing     Manufacture in which the
              added sugar or spirits     value of the originating nuts
                                         and oil seeds of heading Nos
                                         0801, 0802 and 1202 to
                                          1207 used exceeds 60% of
                                          the ex-works price of the
                                          product
               - Peanut butter; mixtures  Manufacture in which all
              based on cereals; palm      the materials used are
               hearts; maize (corn)       classified within a heading
                                          other than that of the
                                          product
 ---pagebreak--- HS heading     Description of product     Working or processing carried out on non-originating
No.                                       materials that confers originating status
     (1)                   (2)                            (3)              or            (4)
               - Other except for fruit  Manufacture in which:
              and nuts cooked            - all the materials used are
              otherwise than by          classified within a heading
              steaming or boiling in     other than that of the
              water, not containing      product;
              added sugar, frozen        - the value of any materials
                                         of Chapter 17 used does not
                                         exceed 30% of the ex-works
                                         price of the product
2009          Fruit juices and vegetable Manufacture in which:
              juices (including grape    - all the materials used are
              must), unfermented and     classified within a heading
              not containing added       other than that of the
              spirit, whether or not     product;
              containing added sugar or  - the value of any materials
              other sweetening matter    of Chapter 17 used does not
                                         exceed 30% of the ex-works
                                         price of the product
ex Chapter 21 Miscellaneous edible       Manufacture in which all
              preparations; except for:  the materials used are
                                         classified within a heading
                                         other than that of the
                                         product
2101          Extracts, essences and     Manufacture in which:
              concentrates, of coffee,   - all the materials used are
              tea, or maté, and          classified within a heading
              preparations with a        other than that of the
                                         product;
              basis of these products
                                         - all the chicory used must
              or with a basis of
                                         be wholly obtained
              coffee, tea or maté;
              roasted chicory and
              other coffee substitutes,
              and extracts, essences
              and concentrates thereof
2103          Sauces and preparations
              therefor; mixed
              condiments and mixed
              seasonings; mustard flour
              and meal and prepared
              mustard:
              - Sauces and               Manufacture in which all
              preparations therefor;     the materials used are
              mixed condiments and       classified within a heading
              mixed seasonings           other than that of the
                                         product. However, mustard
                                         flour or meal or prepared
                                         mustard may be used
              - Mustard flour and meal   Manufacture from materials
              and prepared mustard       of any heading
                                            106
 ---pagebreak--- HS heading    Description of product      Working or processing carried out on non-originating
No.                                       materials that confers originating status
     (1)                  (2)                             (3)              or            (4)
ex 2104       Soups and broths and       Manufacture from materials
              preparations therefor      of any heading except
                                         prepared or preserved
                                         vegetables of heading Nos
                                         2002 to 2005
2106          Food preparations not      Manufacture in which:
              elsewhere specified or     - all the materials used are
              included                   classified within a heading
                                         other than that of the
                                         product;
                                         - the value of any materials
                                         of Chapter 17 used does not
                                         exceed 30% of the ex-works
                                         price of the product
ex Chapter 22 Beverages, spirits and     Manufacture in which:
              vinegar; except for:       - all the materials used are
                                         classified within a heading
                                         other than that of the
                                         product;
                                         - all the grapes or any
                                         material derived from
                                         grapes used must be wholly
                                         obtained
2202          Waters, including          Manufacture in which:
              mineral waters and         - all the materials used are
              aerated waters,            classified within a heading
              containing added sugar or  other than that of the
              other sweetening matter    product;
              or flavoured, and other    - the value of any materials
              non-alcoholic beverages,   of Chapter 17 used does not
              not including fruit or     exceed 30% of the ex-works
              vegetable juices of        price of the product;
              heading No 2009            - any fruit juice used
                                         (except for pineapple, lime
                                         and grapefruit juices) must
                                         already be originating
2208          Undenatured ethyl          Manufacture:
              alcohol of an alcoholic    - from materials not
              strength by volume of less classified within heading
              than 80% vol; spirits,     Nos 2207 or 2208,
              liqueurs and other         - in which all the grapes or
              spirituous beverages       any material derived from
                                         grapes used must be wholly
                                         obtained or if all the other
                                          materials used are already
                                         originating, arrack may be
                                         used up to a limit of 5% by
                                         volume
                                                   fly
 ---pagebreak--- HS heading    Description of product        Working or processing carried out on non-originating
No.                                         materials that confers originating status
     (1)                   (2)                              (3)              or            (4)
ex Chapter 23 Residues and waste from      Manufacture in which all
              the food industries;         the materials used are
              prepared animal fodder;      classified within a heading
              except for:                  other than that of the
                                           product
ex 2301       Whale meal; flours,          Manufacture in which all
              meals and pellets of fish    the materials of Chapters 2
              or of crustaceans,           and 3 used must be wholly
              molluscs or other aquatic    obtained
              invertebrates, unfit for
              human consumption
ex 2303       Residues from the            Manufacture in which all
              manufacture of starch        the maize used must be
              from maize (excluding        wholly obtained
              concentrated steeping
              liquors), of a protein
              content, calculated on the
              dry product, exceeding
              40% by weight
ex 2306       Oil cake and other solid     Manufacture in which all
              residues resulting from      the olives used must be
              the extraction of olive oil, wholly obtained
              containing more than 3%
              of olive oil
2309          Preparations of a kind       Manufacture in which:
              used in animal feeding       - all the cereals, sugar or
                                           molasses, meat or milk used
                                           must already be originating;
                                           - all the materials of
                                           Chapter 3 used must be
                                           wholly obtained
ex Chapter 24 Tobacco and                  Manufacture in which all
              manufactured tobacco         the materials of Chapter 24
              substitutes; except for:     used must be wholly
                                           obtained
2402          Cigars, cheroots,            Manufacture in which at
              cigarillos and cigarettes,   least 70% by weight of the
              of tobacco or of tobacco     unmanufactured tobacco or
              substitutes                  tobacco refuse of heading
                                           No 2401 used must already
                                           be originating
ex 2403       Smoking tobacco              Manufacture in which at
                                           least 70% by weight of the
                                           unmanufactured tobacco or
                                           tobacco refuse of heading
                                           No 2401 used must already
                                           be originating
                                             108
 ---pagebreak--- HS heading    Description of product      Working or processing carried out on non-originating
No.                                       materials that confers originating status
      (1)                  (2)                            (3)              or            (4)
ex Chapter 25 Salt; sulphur; earths and  Manufacture in which all
              stone; plastering          the materials used are
              materials; lime and        classified within a heading
              cement; except for:        other than that of the
                                         product
ex 2504       Natural crystalline        Enriching of the carbon
              graphite, with enriched    content, purifying and
              carbon content, purified   grinding of crude crystalline
              and ground                 graphite
ex 2515       Marble, merely cut by      Cutting, by sawing or
              sawing or otherwise into   otherwise, of marble (even if
              blocks or slabs of a       already sawn) of a thickness
              rectangular (including     exceeding 25 cm
              square) shape, of a
              thickness not exceeding
              25 cm
ex 2516       Granite, porphyry, basalt, Cutting, by sawing or
              sandstone and other        otherwise, of stone (even if
              monumental and building    already sawn) of a thickness
              stone, merely cut by       exceeding 25 cm
              sawing or otherwise, into
              blocks or slabs of a
              rectangular (including
              square) shape, of a
              thickness not exceeding
              25 cm
ex 2518       Calcined dolomite          Calcination of dolomite not
                                         calcined
ex 2519       Crushed natural            Manufacture in which all
              magnesium carbonate        the materials used are
              (magnesite), in            classified within a heading
              hermetically sealed        other than that of the
              containers, and            product. However, natural
              magnesium oxide,           magnesium carbonate
              whether or not pure, other (magnesite) may be used
              than fused magnesia or
              dead-burned (sintered)
              magnesia
ex 2520       Plasters specially         Manufacture in which the
              prepared for dentistry     value of all the materials
                                         used does not exceed 50% of
                                         the ex-works price of the
                                         product
ex 2524       Natural asbestos fibres    Manufacture from asbestos
                                         concentrate
ex 2525       Mica powder                Grinding of mica or mica
                                         waste
                                                .0 Q
 ---pagebreak--- HS heading        Description of product         Working or processing carried out on non-originating
No.                                              materials that confers originating status
      (1)                       (2)                              (3)              or             (4)
ex 2530           Earth colours, calcined or    Calcination or grinding of
                  powdered                      earth colours
Chapter 26        Ores, slag and ash            Manufacture in which all
                                                the materials used are
                                                classified within a heading
                                                other than that of the
                                                product
ex Chapter 27     Mineral fuels, mineral        Manufacture in which all
                  oils and products of their    the materials used are
                  distillation; bituminous      classified within a heading
                  substances; mineral           other than that of the
                  waxes; except for:            product
ex 2707           Oils in which the weight      Operations of refining
                  of the aromatic               and/or one or more specific
                  constituents exceeds that     process(es)1
                  of the non-aromatic           or
                  constituents, being oils      Other operations in which
                  similar to mineral oils       all the materials used are
                  obtained by distillation of   classified within a heading
                  high temperature coal tar,    other than that of the
                  of which more than 65%        product. However,
                  by volume distils at a        materials classified within
                  temperature of up to          the same heading may be
                  250°C (including              used provided their value
                  mixtures of petroleum         does not exceed 50% of the
                  spirit and benzole), for      ex-works price of the
                  use as power or heating       product
                  fuels
ex 2709           Crude oils obtained from      Destructive distillation of
                  bituminous minerals           bituminous materials
2710              Petroleum oils and oils       Operations of refining
                  obtained from bituminous      and/or one or more specific
                  materials, other than         process(es)2
                  crude; preparations not
                                                or
                  elsewhere specified or
                  included, containing by
                                                Other operations in which
                  weight 70% or more of
                                                all the materials used are
                  petroleum oils or of oils
                                                classified within a heading
                  obtained from bituminous
                                                other than that of the
                  materials, these oils being
                                                product. However,
                  the basic constituents of
                                                materials classified within
                  the preparations
                                                the same heading may be
                                                used provided their value
                                                does not exceed 50% of the
                                                ex-works price of the
                                                product
1
  For the special conditions relating to "specific processes" see Introductory Notes 7.1 and 7.3
2 For the special conditions relating to "specific processes" see Introductory Note 7.2.
                                                            10
 ---pagebreak--- HS heading        Description of product         Working or processing carried out on non-originating
No.                                              materials that confers originating status
     (1)                      (2)                                (3)              or             (4)
2711              Petroleum gases and           Operations of refining
                  other gaseous                 and/or one or more specific
                  hydrocarbons                  process(es)1
                                                or
                                                Other operations in which
                                                all the materials used are
                                                classified within a heading
                                                other than that of the
                                                product. However,
                                                materials classified within
                                                the same heading may be
                                                used provided their value
                                                does not exceed 50% of the
                                                ex-works price of the
                                                product
2712             Petroleum jelly; paraffin      Operations of refining
                  wax, microcrystalline         and/or one or more specific
                  petroleum wax, slack          process(es)1
                  wax, ozokerite, lignite
                                                or
                 wax, peat wax, other
                  mineral waxes and
                                                Other operations in which
                 similar products obtained
                                                all the materials used are
                 by synthesis or by other
                                                classified within a heading
                 processes, whether or not
                                                other than that of the
                 coloured
                                                product. However,
                                                materials classified within
                                                the same heading may be
                                                used provided their value
                                                does not exceed 50% of the
                                                ex-works price of the
                                                product
2713              Petroleum coke,               Operations of refining
                  petroleum bitumen and         and/or one or more specific
                  other residues of             process(es)2
                  petroleum oils or of oils     or
                  obtained from bituminous      Other operations in which
                  materials                     all the materials used are
                                                classified within a heading
                                                other than that of the
                                                product. However,
                                                materials classified within
                                                the same heading may be
                                                used provided their value
                                                does not exceed 50% of the
                                                ex-works price of the
                                                product
1
  For the special conditions relating to "specific processes" see Introductory Note 7.2
2 For the special conditions relating to "specific processes" see Introductory Notes 7.1 and 7.3
                                                     A
 ---pagebreak--- HS heading        Description of product          Working or processing carried out on non-originating
No.                                               materials that confers originating status
      (1)                      (2)                                (3)              or                (4)
2714              Bitumen and asphalt,           Operations of refining
                  natural; bituminous or oil     and/or one or more specific
                  shale and tar sands;           process(es)1
                  asphaltites and asphaltic      or
                  rocks                          Other operations in which
                                                 all the materials used are
                                                 classified within a heading
                                                 other than that of the
                                                 product. However,
                                                 materials classified within
                                                 the same heading may be
                                                 used provided their value
                                                 does not exceed 50% of the
                                                 ex-works price of the
                                                 product
2715              Bituminous mixtures            Operations of refining
                  based on natural asphalt,      and/or one or more specific
                  on natural bitumen, on         process(es)1
                  petroleum bitumen, on          or
                  mineral tar or on mineral      Other operations in which
                  tar pitch                      all the materials used are
                                                 classified within a heading
                                                 other than that of the
                                                 product. However,
                                                 materials classified within
                                                 the same heading may be
                                                 used provided their value
                                                 does not exceed 50% of the
                                                 ex-works price of the
                                                 product
ex Chapter 28     Inorganic chemicals;           Manufacture in which all         Manufacture in which the
                  organic or inorganic           the materials used are           value of all the materials
                  compounds or precious          classified within a heading      used does not exceed 40% of
                  metals, of rare-earth          other than that of the           the ex-works price of the
                  metals, of radioactive         product. However,                product
                  elements or of isotopes;       materials classified within
                  except for:                    the same heading may be
                                                 used provided their value
                                                 does not exceed 20% of the
                                                 ex-works price of the
                                                 product
ex 2805            "Mischmetall"                 Manufacture by electrolytic
                                                 or thermal treatment in
                                                 which the value of all the
                                                 materials used does not
                                                 exceed 50% of the ex-works
                                                 price of the product
  For the special conditions relating to "specific processes" see Introductory Notes 7.1 and 7.3.
                                                          * 1 <>
 ---pagebreak--- HS heading        Description of product         Working or processing carried out on non-originating
No.                                              materials that confers originating status
      (1)                     (2)                                (3)              or                (4)
ex 2811           Sulphur trioxide              Manufacture from sulphur         Manufacture in which the
                                                dioxide                          value of all the materials
                                                                                 used does not exceed 40% of
                                                                                 the ex-works price of the
                                                                                 product
ex 2833           Aluminium sulphate            Manufacture in which the
                                                value of all the materials
                                                used does not exceed 50% of
                                                the ex-works price of the
                                                product
ex 2840           Sodium perborate              Manufacture from disodium        Manufacture in which the
                                                tetraborate pentahydrate         value of all the materials
                                                                                 used does not exceed 40% of
                                                                                 the ex-works price of the
                                                                                 product
ex Chapter 29     Organic chemicals;            Manufacture in which all         Manufacture in which the
                  except for:                   the materials used are           value" of all the materials
                                                classified within a heading      used does not exceed 40% of
                                                other than that of the           the ex-works price of the
                                                product. However,                product
                                                materials classified within
                                                the same heading may be
                                                used provided their value
                                                does not exceed 20% of the
                                                ex-works price of the
                                                product
ex 2901           Acyclic hydrocarbons for      Operations of refining
                  use as power or heating       and/or one or more specific
                  fuels                         process(es)1
                                                 or
                                                Other operations in which
                                                 all the materials used are
                                                 classified within a heading
                                                 other than that of the
                                                 product. However,
                                                 materials classified within
                                                 the same heading may be
                                                 used provided their value
                                                 does not exceed 50% of the
                                                 ex-works price of the
                                                 product
   For the special conditions relating to "specific processes" see Introductory Notes 7.1 and 7.3
                                                            4 4 *>
 ---pagebreak--- HS heading        Description of product          Working or processing carried out on non-originating
No.                                               materials that confers originating status
      (1)                      (2)                                (3)               or               (4)
ex 2902            Cyclanes and cyclenes         Operations of refining
                   (other than azulenes),        and/or one or more specific
                  benzene, toluene, xylenes,     process(es)1
                  for use as power or            or
                   heating fuels                 Other operations in which
                                                 all the materials used are
                                                 classified within a heading
                                                 other than that of the
                                                 product. However,
                                                 materials classified within
                                                 the same heading may be
                                                 used, provided their value
                                                 does not exceed 50% of the
                                                 ex-works price of the
                                                 product
ex 2905           Metal alcoholates of           Manufacture from materials       Manufacture in which the
                  alcohols of this heading       of any heading, including        value of all the materials
                  and of ethanol or glycerol     other materials of heading       used does not exceed 40% of
                                                 No 2905. However, metal          the ex-works price of the
                                                 alcoholates of this heading      product
                                                 may be used, provided their
                                                 value does not exceed 20%
                                                 of the ex-works price of the
                                                 product
2915              Saturated acyclic              Manufacture from materials       Manufacture in which the
                  monocarboxylic acids and       of any heading. However,         value of all the materials
                  their anhydrides, halides,     the value of all the materials   used does not exceed 40% of
                  peroxides and                  of headings Nos 2915 and         the ex-works price of the
                  peroxyacids; their             2916 used may not exceed         product
                  halogenated, sulphonated,      20% of the ex-works price
                  nitrated or nitrosated         of the product
                  derivatives
ex 2932           - Internal ethers and          Manufacture from materials       Manufacture in which the
                  their halogenated,             of any heading. However,         value of all the materials
                  sulphonated, nitrated or       the value of all the materials   used does not exceed 40% of
                  nitrosated derivatives         of heading No 2909 used          the ex-works price of the
                                                 may not exceed 20% of the        product
                                                 ex-works price of the
                                                 product
                  - Cyclic acetals and           Manufacture from materials       Manufacture in which the
                  internal hemiacetals and       of any heading                   value of all the materials
                  their halogenated,                                              used does not exceed 40% of
                  sulphonated, nitrated or                                        the ex-works price of the
                  nitrosated derivatives                                          product
i For
  F   the special conditions relating to "specific processes" see Introductory Notes 7.1 and 7.3
                                                                 114
 ---pagebreak--- HS heading    Description of product       Working or processing carried out on non-originating
No.                                        materials that confers originating status
     (1)                   (2)                             (3)              or                (4)
2933          Heterocyclic compounds      Manufacture from materials       Manufacture in which the
              with nitrogen hetero-       of any heading. However,         value of all the materials
              atom(s) only                the value of all the materials   used does not exceed 40% of
                                          of headings Nos 2932 and         the ex-works price of the
                                          2933 used may not exceed         product
                                          20% of the ex-works price
                                          of the product
2934          Nucleic acids and their     Manufacture from materials       Manufacture in which the
              salts; other heterocyclic   of any heading. However,         value of all the materials
              compounds                   the value of all the materials   used does not exceed 40% of
                                          of headings Nos 2932, 2933       the ex-works price of the
                                          and 2934 used may not            product
                                          exceed 20% of the ex-works
                                          price of the product
ex Chapter 30 Pharmaceutical products;    Manufacture in which all
              except for:                 the materials used are
                                          classified within a heading
                                          other than that of the
                                          product. However,
                                          materials classified within
                                          the same heading may be
                                          used provided their value
                                          does not exceed 20% of the
                                          ex-works price of the
                                          product
3002          Human blood; animal
              blood prepared for
              therapeutic, prophylactic
              or diagnostic uses;
              antisera and other blood
              fractions and modified
              immunological products
              whether or not obtained
              by means of
              biotechnological
              processes; vaccines,
              toxins, cultures of micro-
              organisms (excluding
              yeasts) and similar
              products:
              - Products consisting of    Manufacture from materials
              two or more constituents    of any heading, including
              which have been mixed       other materials of heading
              together for therapeutic or No 3002. The materials of
              prophylactic uses or         this description may also be
              unmixed products for         used, provided their value
              these uses, put up in        does not exceed 20% of the
              measured doses or in         ex-works price of the
              forms or packings for        product
               retail sale
               - Other:
                                                           115
 ---pagebreak--- HS heading Description of product    Working or processing carried out on non-originating
No.                                  materials that confers originating status
     (1)               (2)                           (3)              or             (4)
           — human blood            Manufacture from materials
                                    of any heading, including
                                    other materials of heading
                                    No 3002. The materials of
                                    this description may also be
                                    used, provided their value
                                    does not exceed 20% of the
                                    ex-works price of the
                                    product
           ~ animal blood prepared  Manufacture from materials
           for therapeutic or       of any heading, including
           prophylactic uses        other materials of heading
                                    No 3002. The materials of
                                    this description may also be
                                    used, provided their value
                                    does not exceed 20% of the
                                    ex-works price of the
                                    product
           -- blood fractions other Manufacture from materials
           than antisera,           of any heading, including
           haemoglobin and serum    other materials of heading
           globulin                 No 3002. The materials of
                                    this description may also be
                                    used, provided their value
                                    does not exceed 20% of the
                                    ex-works price of the
                                    product
           ~ haemoglobin, blood     Manufacture from materials
           globulin and serum       of any heading, including
           globulin                 other materials of heading
                                    No 3002. The materials of
                                    this description may also be
                                    used, provided their value
                                    does not exceed 20% of the
                                    ex-works price of the
                                    product
           ~ other                  Manufacture from materials
                                    of any heading, including
                                    other materials of heading
                                    No 3002. The materials of
                                    this description may also be
                                    used, provided their value
                                    does not exceed 20% of the
                                    ex-works price of the
                                    product
                                      1.16
 ---pagebreak--- HS heading    Description of product    Working or processing carried out on non-originating
No.                                     materials that confers originating status
      (1)                  (2)                          (3)               or              (4)
3003 and      Medicaments (excluding
3 004         goods of heading Nos
              3002, 3005 or 3006):
              - Obtained from amikacin Manufacture in which all
              of heading No 2941       the materials used are
                                       classified within a heading
                                       other than that of the
                                       product. However, materials
                                       of heading No 3003 or 3004
                                       may be used provided their
                                       value, taken together, does
                                       not exceed 20 % of the ex
                                       works price of the product
                Other                  Manufacture in which:
                                       - all the materials used are
                                       classified within a heading
                                       other than that of the
                                       product. However,
                                       materials of heading No
                                       3003 or 3004 may be used
                                       provided their value, taken
                                       together, does not exceed
                                       20% of the ex-works price
                                       of the product;
                                       - the value of all the
                                       materials used does not
                                       exceed 50% of the ex-works
                                       price of the product
ex Chapter 31 Fertilizers; except for: Manufacture in which all         Manufacture in which the
                                       the materials used are           value of all the materials
                                       classified within a heading       used does not exceed 40% of
                                       other than that of the            the ex-works price of the
                                       product. However,                 product
                                        materials classified within
                                        the same heading may be
                                        used provided their value
                                        does not exceed 20% of the
                                        ex-works price of the
                                        product
                                                         17
 ---pagebreak--- HS heading         Description of product       Working or processing carried out on non-originating
No.                                             materials that confers originating status
       (1)                       (2)                            (3)               or                (4)
ex 3105            Mineral or chemical         Manufacture in which:            Manufacture in which the
                   fertilizers containing two  - all the materials used are     value of all the materials
                   or three of the fertilizing classified within a heading      used does not exceed 40% of
                   elements nitrogen,          other than that of the           the ex-works price of the
                   phosphorous and             product. However,                product
                   potassium; other            materials classified within
                   fertilizers; goods of this  the same heading may be
                   Chapter, in tablets or      used provided their value
                   similar forms or in         does not exceed 20% of the
                   packages of a gross         ex-works price of the
                   weight not exceeding 10     product;
                   kg, except for:             - the value of all the
                   - sodium nitrate            materials used does not
                   - calcium cyanamide         exceed 50% of the ex-works
                   - potassium sulphate        price of the product
                   - magnesium potassium
                   sulphate
ex Chapter 32      Tanning or dyeing           Manufacture in which all         Manufacture in which the
                   extracts; tannins and their the materials used are           value* of all the materials
                   derivatives; dyes,          classified within a heading      used does not exceed 40% of
                   pigments and other          other than that of the           the ex-works price of the
                   colouring matter; paints    product. However,                product
                   and varnishes; putty and    materials classified within
                   other mastics; inks;        the same heading may be
                   except for:                 used provided their value
                                               does not exceed 20% of the
                                               ex-works price of the
                                               product
ex 3201            Tannins and their salts,    Manufacture from tanning         Manufacture in which the
                   esters, ethers, and other   extracts of vegetable origin     value of all the materials
                   derivatives                                                  used does not exceed 40% of
                                                                                the ex-works price of the
                                                                                product
3205               Colour lakes;               Manufacture from materials       Manufacture in which the
                   preparations as specified   of any heading, except           value of all the materials
                   in Note 3 to this Chapter   headings Nos 3203, 3204          used does not exceed 40% of
                   based on colour lakes1      and 3205. However,               the ex-works price of the
                                               materials from heading No        product
                                               3205 may be used provided
                                               their value does not exceed
                                               20% of the ex-works price
                                               of the product           ^___
1
   Note 3 to Chapter 32 says that these preparations are those of a kind used for colouring any
material or used as ingredients in the manufacturing of colouring preparations, provided they are not
classified in another heading in Chapter 32.
                                                    1 1k
 ---pagebreak--- HS heading        Description of product         Working or processing carried out on non-originating
No.                                              materials that confers originating status
      (1)                       (2)                              (3)              or                (4)
ex Chapter 33     Essential oils and            Manufacture in which all         Manufacture in which the
                  resinoids; perfumery,         the materials used are           value of all the materials
                  cosmetic or toilet            classified within a heading      used does not exceed 40% of
                  preparations; except for:     other than that of the           the ex-works price of the
                                                product. However,                product
                                                materials classified within
                                                the same heading may be
                                                used provided their value
                                                does not exceed 20% of the
                                                ex-works price of the
                                                product
3301              Essential oils (terpeneless   Manufacture from materials       Manufacture in which the
                  or not), including            of any heading, including        value of all the materials
                  concretes and absolutes;      materials of a different         used does not exceed 40% of
                  resinoids; extracted          "group"1 in this heading.        the ex-works price of the
                  oleoresins; concentrates      However, materials of the        product
                  of essential oils in fats, in same group may be used,
                  fixed oils, in waxes or the   provided their value does
                  like, obtained by             not exceed 20% of the ex-
                  enfleurage or maceration;     works price of the product
                  terpenic by-products of
                  the deterpenation of
                  essential oils; aqueous
                  distillates and aqueous
                  solutions of essential oils
ex Chapter 34     Soap, organic surface-        Manufacture in which all         Manufacture in which the
                  active agents, washing        the materials used are           value of all the materials
                  preparations, lubricating     classified within a heading      used does not exceed 40% of
                  preparations, artificial      other than that of the           the ex-works price of the
                  waxes, prepared waxes,        product. However,                product
                  polishing or scouring         materials classified within
                  preparations, candles and     the same heading may be
                  similar articles,             used provided their value
                  modelling pastes, "dental     does not exceed 20% of the
                  waxes" and dental             ex-works price of the
                  preparations with a basis     product
                  of plaster; except for:
1
   A "group" is regarded as any part of the heading separated from the rest by a semi-colon.
                                                              119
 ---pagebreak--- HS heading        Description of product         Working or processing carried out on non-originating
No.                                              materials that confers originating status
      (1)                      (2)                               (3)               or               (4)
ex 3403           Lubricating preparations      Operations of refining
                  containing petroleum oils     and/or one or more specific
                  or oils obtained from         process(es)1
                  bituminous minerals,          or
                  provided they represent       Other operations in which
                  less than 70% by weight       all the materials used are
                                                classified within a heading
                                                other than that of the
                                                product. However,
                                                materials classified within
                                                the same heading may be
                                                used provided their value
                                                does not exceed 50% of the
                                                ex-works price of the
                                                product
3404              Artificial waxes and
                  prepared waxes:
                  - With a basis of             Manufacture in which all
                  paraffin, petroleum           the materials used are
                  waxes, waxes obtained         classified within a heading
                  from bituminous               other than that of the
                  minerals, slack wax or        product. However,
                  scale wax                     materials classified within
                                                the same heading may be
                                                used provided their value
                                                does not exceed 50% of the
                                                ex-works price of the
                                                product
                  - Other                       Manufacture from materials       Manufacture in which the
                                                of any heading, except:          value of all the materials
                                                - hydrogenated oils having       used does not exceed 40% of
                                                the character of waxes of        the ex-works price of the
                                                heading No 1516;                 product
                                                - fatty acids not chemically
                                                defined or industrial fatty
                                                alcohols having the
                                                character of waxes of
                                                heading No 3823;
                                                - materials of heading No
                                                3404
                                                However, these materials
                                                may be used provided their
                                                value does not exceed 20%
                                                of the ex-works price of the
                                                product
  For the special conditions relating to "specific processes" see Introductory Notes 7.1 and 7.3
                                                 120
 ---pagebreak--- HS heading    Description of product      Working or processing carried out on non-originating
No.                                       materials that confers originating status
     (1)                   (2)                            (3)              or                (4)
ex Chapter 35 Albuminoidal substances;   Manufacture in which all         Manufacture in which the
              modified starches; glues;  the materials used are           value of all the materials
              enzymes; except for:       classified within a heading      used does not exceed 40% of
                                         other than that of the           the ex-works price of the
                                         product. However,                product
                                         materials classified within
                                         the same heading may be
                                         used provided their value
                                         does not exceed 20% of the
                                         ex-works price of the
                                         product
3505          Dextrins and other
              modified starches (for
              example, pregelatinized
              or esterified starches);
              glues based on starches,
              or on dextrins or other
              modified starches:
                Starch ethers and esters Manufacture from materials       Manufacture in which the
                                         of any heading, including        value of all the materials
                                         other materials of heading       used does not exceed 40% of
                                         No 3505                          the ex-works price of the
                                                                          product
              - Other                    Manufacture from materials Manufacture in which the
                                         of any heading, except those .value of all the materials
                                         of heading No 1108               used does not exceed 40% of
                                                                          the ex-works price of the
                                                                          product
ex 3507       Prepared enzymes not       Manufacture in which the
              elsewhere specified or     value of all the materials
              included                   used does not exceed 50% of
                                         the ex-works price of the
                                         product
Chapter 36    Explosives; pyrotechnic    Manufacture in which all         Manufacture in which the
              products; matches;         the materials used are           value of all the materials
              pyrophoric alloys; certain classified within a heading      used does not exceed 40% of
              combustible preparations   other than that of the           the ex-works price of the
                                         product. However,                product
                                         materials classified within
                                         the same heading may be
                                         used provided their value
                                         does not exceed 20% of the
                                         ex-works price of the
                                         product
                                                        21
 ---pagebreak--- HS heading    Description of product        Working or processing carried out on non-originating
No.                                         materials that confers originating status
     (1)                    (2)                             (3)               or               (4)
ex Chapter 37 Photographic or              Manufacture in which all         Manufacture in which the
              cinematographic goods;       the materials used are           value of all the materials
              except for:                  classified within a heading      used does not exceed 40% of
                                           other than that of the           the ex-works price of the
                                           product. However,                product
                                           materials classified within
                                           the same heading may be
                                           used provided their value
                                           does not exceed 20% of the
                                           ex-works price of the
                                           product
3701          Photographic plates and
              film in the flat,
              sensitized, unexposed, of
              any material other than
              paper, paperboard or
              textiles; instant print film
              in the flat, sensitized,
              unexposed, whether or
              not in packs:
              - Instant print film for     Manufacture in which all         Manufacture in which the
              colour photography, in       the materials used are           value of all the materials
              packs                        classified within a heading      used does not exceed 40% of
                                           other than heading Nos           the ex-works price of the
                                           3701 or 3702. However,           product
                                           materials from heading No
                                           3702 may be used provided
                                           their value does not exceed
                                           30% of the ex-works price
                                           of the product
                 Other                     Manufacture in which all         Manufacture in which the
                                           the materials used are           value of all the materials
                                           classified within a heading      used does not exceed 40% of
                                           other than heading No 3701       the ex-works price of the
                                           or 3702. However,                product
                                           materials from heading Nos
                                           3701 and 3702 may be used
                                           provided their value taken
                                           together, does not exceed
                                           20% of the ex-works price
                                           of the product
3702          Photographic film in         Manufacture in which all         Manufacture in which the
              rolls, sensitized,           the materials used are           value of all the materials
              unexposed, of any            classified within a heading      used does not exceed 40% of
              material other than paper,   other than heading Nos           the ex-works price of the
              paperboard or textiles;      3701 or 3702                     product
              instant print film in rolls,
              sensitized, unexposed
                                                     J_ & i-**
 ---pagebreak--- HS heading    Description of product      Working or processing carried out on non-originating
No.                                       materials that confers originating status
     (1)                   (2)                            (3)              or                (4)
3704          Photographic plates, film  Manufacture in which all         Manufacture in which the
              paper, paperboard and      the materials used are           value of all the materials
              textiles, exposed but not  classified within a heading      used does not exceed 40% of
              developed                  other than heading Nos           the ex-works price of the
                                         3701 to 3704                     product
ex Chapter 38 Miscellaneous chemical     Manufacture in which all         Manufacture in which the
              products; except for:      the materials used are           value of all the materials
                                         classified within a heading      used does not exceed 40% of
                                         other than that of the           the ex-works price of the
                                         product. However,                product
                                         materials classified within
                                         the same heading may be
                                         used provided their value
                                         does not exceed 20% of the
                                         ex-works price of the
                                         product
ex 3801       - Colloidal graphite in    Manufacture in which the
              suspension in oil and      value of all the materials
              semi-colloidal graphite;   used does not exceed 50% of
              carbonaceous pastes for    the ex-works price of the
              electrodes                 product
              - Graphite in paste form,  Manufacture in which the         Manufacture in which the
              being a mixture of more    value of all the materials of    value of all the materials
              than 30% by weight of      heading No 3403 used does        used does not exceed 40% of
              graphite with mineral oils not exceed 20% of the ex-        the ex-works price of the
                                         works price of the product       product
ex 3803       Refined tall oil           Refining of crude tall oil       Manufacture in which the
                                                                          value of all the materials
                                                                          used does not exceed 40% of
                                                                          the ex-works price of the
                                                                          product
ex 3805       Spirits of sulphate        Purification by distillation     Manufacture in which the
              turpentine, purified       or refining of raw spirits of    value of all the materials
                                         sulphate turpentine              used does not exceed 40% of
                                                                          the ex-works price of the
                                                                          product
ex 3806       Ester gums                 Manufacture from resin           Manufacture in which the
                                         acids                            value of all the materials
                                                                          used does not exceed 40% of
                                                                          the ex-works price of the
                                                                          product
ex 3807       Wood pitch (wood tar       Distillation of wood tar         Manufacture in which the
              pitch)                                                      value of all the materials
                                                                          used does not exceed 40% of
                                                                          the ex-works price of the
                                                                          product
                                                      23
 ---pagebreak--- HS heading Description of product       Working or processing carried out on non-originating
No.                                     materials that confers originating status
     (1)                 (2)                            (3)              or            (4)
3808       Insecticides, rodenticides, Manufacture in which the
           fungicides, herbicides,     value of all the materials
           anti-sprouting products     used does not exceed 50% of
           and plant-growth            the ex-works price of the
           regulators, disinfectants   products
           and similar products, put
           up in forms of packings
           for retail sale or as
           preparations or articles
           (for example, sulphur-
           treated bands, wicks and
           candles, and fly-papers)
3809       Finishing agents, dye       Manufacture in which the
           carriers to accelerate the  value of all the materials
           dyeing or fixing of         used does not exceed 50% of
           dyestuffs and other         the ex-works price of the
           products and preparations   products
           (for example, dressings
           and mordants), of a kind
           used in the textile, paper,
           leather or like industries,
           not elsewhere specified or
           included
3810       Pickling preparations for   Manufacture in which the
           metal surfaces; fluxes and  value of all the materials
           other auxiliary             used does not exceed 50% of
           preparations for            the ex-works price of the
           soldering, brazing or       products
           welding; soldering,
           brazing or welding
           powders and pastes
           consisting of metal and
           other materials;
           preparations of a kind
           used as cores or coatings
           for welding electrodes or
           rods
3811       Anti-knock preparations,
           oxidation inhibitors, gum
           inhibitors, viscosity
           improvers, anti-corrosive
           preparations and other
           prepared additives, for
           mineral oils (including
           gasoline) or for other
           liquids used for the same
           purposes as mineral oils:
           - Prepared additives for    Manufacture in which the
           lubricating oil, containing value of all the materials of
           petroleum oils or oils      heading No 3811 used does
           obtained from bituminous    not exceed 50% of the ex-
           minerals                    works price of the product
                                                      24
 ---pagebreak--- H S heading Description of product      Working or processing carried out on non-originating
No.                                     materials that confers originating status
      (1)                (2)                            (3)              or            (4)
              Other                    Manufacture in which the
                                       value of all the materials
                                       used does not exceed 50% of
                                       the ex-works price of the
                                       product
3812        Prepared rubber            Manufacture in which the
            accelerators; compound     value of all the materials
            plasticizers for rubber or used does not exceed 50% of
            plastics, not elsewhere    the ex-works price of the
            specified or included;     product
            anti-oxidizing
            preparations and other
            compound stabilizers for
            rubber or plastics
3813        Preparations and charges   Manufacture in which the
            for fire-extinguishers;    value of all the materials
            charged fire-              used does not exceed 50% of
            extinguishing grenades     the ex-works price of the
                                       product
3814        Organic composite          Manufacture in which the
            solvents and thinners, not value of all the materials
            elsewhere specified or     used does not exceed 50% of
            included; prepared paint   the ex-works price of the
            or vanish removers         product
 1818       Chemical elements doped    Manufacture in which the
            for use in electronics, in value of all the materials
            the form of discs, wafers  used does not exceed 50% of
            or similar forms;          the ex-works price of the
            chemical compounds         product
            doped for use in
            electronics
3819        Hydraulic brake fluids     Manufacture in which the
            and other prepared         value of all the materials
            liquids for hydraulic      used does not exceed 50% of
            transmission, not          the ex-works price of the
            containing or containing   product
            less than 70% by weight
            of petroleum oils or oils
            obtained from bituminous
             minerals
3820        Anti-freezing              Manufacture in which the
            preparations and prepared  value of all the materials
            de-icing fluids             used does not exceed 50% of
                                        the ex-works price of the
                                        product
                                                          ;>
 ---pagebreak--- HS heading Description of product       Working or processing carried out on non-originr :ng
No.                                     materials that confers originating status
     (1)                 (2)                            (3)               or               (4)
3822       Diagnostic or laboratory    Manufacture in which the
           reagents on a backing and   value of all the materials
           prepared diagnostic or      used does not exceed 50% of
           laboratory reagents,        the ex-works price of the
           whether or not on a         product
           backing, other than those
           of heading No. 3002 or
           3006
3823       Industrial
           monocarboxylic fatty
           acids; acid oils from
           refining; industrial fatty
           alcohols.
           - Industrial                Manufacture in which all
           monocarboxylic fatty        the materials used are
           acids,, acid oils from      classified within a heading
           refining                    other than that of the
                                       product
             Industrial fatty alcohols Manufacture from materials
                                       of any heading including
                                       other materials of heading
                                       No. 3823
3824       Prepared binders for
           foundry moulds or cores;
           chemical products and
           preparations of the
           chemical or allied
           industries (including
           those consisting of
           mixtures of natural
           products), not elsewhere
           specified or included;
           residual products of the
           chemical or allied
           industries, not elsewhere
           specified or included:
           - The following of this     Manufacture in which all         Manufacture in which the
           heading:                    the materials used are           value of all the materials
                                       classified within a heading      used does not exceed 40% of
           Prepared binders for        other than that of the           the ex-works price of the
           foundry moulds or cores     product. However,                product
           based on natural resinous   materials classified within
           products                    the same heading may be
                                       used provided their value
           Naphthenic acids, their     does not exceed 20% of the
           water insoluble salts and   ex-works price of the
           their esters                product
           Sorbitol other than that of
           heading No 2905
                                                     126
 ---pagebreak--- HS heading   Description of product      Working or processing carried out on non-originating
No.                                      materials that confers originating status
     (1)                  (2)                             (3)             or            (4)
             Petroleum sulphonates,
             excluding petroleum
             sulphonates of alkali
             metals, of ammonium or
             of ethanolamines;
             thiophenated sulphonic
             acids of oils obtained
             from bituminous
             minerals, and their salts
             Ion exchangers
             Getters for vacuum tubes
             Alkaline iron oxide for
             the purification of gas
             Ammoniacal gas liquors
             and spent oxide produced
             in coal gas purification
             Sulphonaphthenic acids,
             their water insoluble salts
             and their esters
             Fusel oil and Dippel's oil
             Mixtures of salts having
             different anions
             Copying pastes with a
             basis of gelatin, whether
             or not on a paper or
             textile backing
             - Other                     Manufacture in which the
                                         value of all the materials
                                         used does not exceed 50% of
                                         the ex-works price of the
                                         product
3901 to 3915 Plastics in primary forms,
             waste, parings and scrap,
             of plastic; except for
             heading Nos ex 3907 and
              3912 for which the rules
             are set out below:
                                                 1.27
 ---pagebreak--- HS heading         Description of product        Working or processing carried out on non-originating
No.                                              materials that confers originating status
      (1)                       (2)                              (3)              or                (4)
                   - Addition                   Manufacture in which:            Manufacture in which the
                   homopolymerization           - the value of all the           value of all the materials
                   products in which a          materials used does not          used does not exceed 25% of
                   single monomer               exceed 50% of the ex-works       the ex-works price of the
                   contributes more than        price of the product;            product
                   99% by weight to the         - the value of any materials
                   total polymer content        of Chapter 39 used does not
                                                exceed 20% of the ex-works
                                                price of the product1
                     Other                      Manufacture in which the         Manufacture in which the
                                                value of the materials of        value of all the materials
                                                Chapter 39 used does not         used does not exceed 25% of
                                                exceed 20% of the ex-works       the ex-works price of the
                                                price of the product1            product
ex 3907            - Copolymer, made from       Manufacture in which all
                   polycarbonate and            the materials used are
                   acrylonitrile-butadiene-     classified within a heading
                   styrene copolymer (ABS)      other than that of the
                                                product. However,
                                                materials classified within
                                                the same heading may be
                                                used provided their value
                                                does not exceed 50% of the
                                                ex-works price of the
                                                product1
                     Polyester                  Manufacture in which the
                                                value of any materials of
                                                Chapter 39 used does not
                                                exceed 20% of the ex-works
                                                price of the product and/or
                                                manufacture from
                                                polycarbonate of
                                                tetrabromo-(bisphenol A)
3912               Cellulose and its            Manufacture in which the
                   chemical derivatives, not    value of any materials
                   elsewhere specified or       classified in the same
                   included, in primary         heading as the product does
                   forms                        not exceed 20% of the ex-
                                                works price of the product
3916 to 3921       Semi-manufactures and
                   articles of plastics; except
                   for headings Nos ex
                   3916, ex 3917, ex 3920
                   and ex 3921, for which
                   the rules are set out
                   below:
1
   In the case of the products composed of materials classified within both heading Nos. 3901 to
3906, on the one hand, and within heading Nos. 3907 to 3911, on the other hand, this restriction only
applies to that group of materials which predominates by weight in the product.
                                                              128
 ---pagebreak--- HS heading        Description of product       Working or processing carried out on non-originating
No.                                            materials that confers originating status
      (1)                      (2)                             (3)               or               (4)
                  - Flat products, further    Manufacture in which the         Manufacture in which the
                  worked than only surface-   value of any materials of        value of all the materials
                  worked or cut into forms    Chapter 39 used does not         used does not exceed 25% of
                  other than rectangular      exceed 50% of the ex-works       the ex-works price of the
                  (including square); other   price of the product             product
                  products, further worked
                  than only surface-worked
                  - Other:
                  — Addition                  Manufacture in which:            Manufacture in which the
                  homopolymerization          - the value of all the           value of all the materials
                  products in which a         materials used does not          used does not exceed 25% of
                  single monomer              exceed 50% of the ex-works       the ex-works price of the
                  contributes more than       price of the product;            product
                  99% by weight to the        - the value of any materials
                  total polymer content       of Chapter 39 used does not
                                              exceed 20% of the ex-works
                                              price of the product1
                   - Other                    Manufacture in which the         Manufacture in which the
                                              value of any materials of        value of all the materials
                                              Chapter 39 used does not         used does not exceed 25% of
                                              exceed 20% of the ex-works       the ex-works price of the
                                              price of the product1            product
ex 3916 and       Profile shapes and tubes    Manufacture in which:            Manufacture in which the
ex 3917                                       - the value of all the           value of all the materials
                                              materials used does not          used does not exceed 25% of
                                              exceed 50% of the ex-works       the ex-works price of the
                                              price of the product;            product
                                              - the value of any materials
                                              classified within the same
                                              heading as the product does
                                              not exceed 20% of the ex-
                                              works price of the product
ex 3920             Ionomer sheet or film     Manufacture from a               Manufacture in which the
                                              thermoplastic partial salt       value of all the materials
                                              which is a copolymer of          used does not exceed 25% of
                                              ethylene and metacrylic acid     the ex-works price of the
                                              partly neutralized with          product
                                              metal ions, mainly zinc and
                                              sodium
                   - Sheets of regenerated    Manufacture in which the
                  cellulose, polyamides or    value of any materials
                  polyethylene                classified in the same
                                              heading as the product does
                                              not exceed 20% of the ex-
                                              works price of the product
1
   In the case of the products composed of materials classified within both heading Nos. 3901 to
3906, on the one hand, and within heading Nos. 3907 to 3911, on the other hand, this restriction only
applies to that group of materials which predominates by weight in the product.
                                                        129
 ---pagebreak--- HS heading       Description of product         Working or processing carried out on non-originating
No.                                             materials that confers originating status
      (1)                     (2)                               (3)               or                (4)
ex 3921          Foils of plastic,             Manufacture from highly           Manufacture in which the
                 metallized                    transparent polyester foils       value of all the materials
                                               with a thickness of less than     used does not exceed 25% of
                                               23 micron1                        the ex-works price of the
                                                                                 product
3922 to 3926     Articles of plastics          Manufacture in which the
                                               value of all the materials
                                               used does not exceed 50% of
                                               the ex-works price of the
                                               product
ex Chapter 40    Rubber and articles           Manufacture in which all
                 thereof; except for:          the materials used are
                                               classified within a heading
                                               other than that of the
                                               product
ex 4001          Laminated slabs or crepe      Lamination of sheets of
                 rubber for shoes              natural rubber
4005             Compound rubber,              Manufacture in which the
                 unvulcanized, in primary      value of all the materials
                 forms or in plates, sheets    used, except natural rubber,
                 or strip                      does not exceed 50% of the
                                               ex-works price of the
                                               product
4012             Retreaded or used
                 pneumatic tyres of
                 rubber; solid or cushion
                 tyres, interchangeable
                 tyre treads and tyre flaps,
                 of rubber:
                 - Retreaded pneumatic,        Retreading of used tyres
                 solid or cushion tyres, of
                 rubber
                 - Other                       Manufacture from materials
                                               of any heading, except those
                                               of heading Nos 4011 or
                                               4012
ex 4017          Articles of hard rubber       Manufacture from hard
                                               rubber
ex Chapter 41    Raw hides and skins           Manufacture in which all
                 (other than furskins) and     the materials used are
                 leather; except for:          classified within a heading
                                               other than that of the
                                               product
1
  The following foils shall be considered as highly transparent: foils, the optical dimming of which
measured according to ASTM-D 1003-16 by Gardner Hazemeter (i.e. Hazefactor) - is less than 2
percent.
                                                            1 <\(\
 ---pagebreak--- HS heading    Description of product      Working or processing carried out on non-originating
No.                                       materials that confers originating status
     (1)                   (2)                            (3)              or            (4)
ex 4102       Raw skins of sheep or      Removal of wool from sheep
              lambs, without wool on     or lamb skins, with wool on
4104 to 4107  Leather, without hair or   Retanning of pre-tanned
              wool, other than leather   leather
              of heading Nos 4108 or     or
              4109                       Manufacture in which all
                                         the materials used are
                                         classified within a heading
                                         other than that of the
                                         product
4109          Patent leather and patent  Manufacture from leather of
              laminated leather;         heading Nos 4104 to 4107
              metallized leather         provided its value does not
                                         exceed 50% of the ex-works
                                         price of the product
Chapter 42    Articles of leather;       Manufacture in which all
              saddlery and harness;      the materials used are
              travel goods, handbags     classified within a heading
              and similar containers;    other than that of the
              articles of animal gut     product
              (other than silk worm
              gut)
ex Chapter 43 Furskins and artificial    Manufacture in which all
              fur; manufactures thereof; the materials used are
              except for:                classified within a heading
                                         other than that of the
                                         product
ex 4302       Tanned or dressed
              furskins, assembled:
              - Plates, crosses and      Bleaching or dyeing, in
              similar forms              addition to cutting and
                                         assembly of non-assembled
                                         tanned or dressed furskins
              - Other                    Manufacture from non-
                                         assembled, tanned or
                                         dressed furskins
4303          Articles of apparel,       Manufacture from non-
              clothing accessories and   assembled tanned or dressed
              other articles of furskin  furskins of heading No 4302
ex Chapter 44  Wood and articles of      Manufacture in which all
              wood; wood charcoal;       the materials used are
              except for:                classified within a heading
                                         other than that of the
                                          product
                                                              31
 ---pagebreak--- HS heading Description of product       Working or processing carried out on non-originating
No.                                     materials that confers originating status
      (1)               (2)                             (3)              or            (4)
ex 4403    Wood roughly squared       Manufacture from wood in
                                      the rough, whether or not
                                       stripped of its bark or
                                       merely roughed down
ex 4407    Wood sawn or chipped       Planing, sanding or finger-
           lengthwise, sliced or      jointing
           peeled, of a thickness
           exceeding 6 mm, planed,
           sanded or finger-jointed
ex 4408    Veneer sheets and sheets   Splicing, planing, sanding
           for plywood, of a          or finger-jointing
           thickness not exceeding 6
           mm, spliced, and other
           wood sawn lengthwise,
           sliced or peeled of a
           thickness not exceeding 6
           mm, planed, sanded or
           finger-jointed
ex 4409    Wood continuously
           shaped along any of its
           edges or faces, whether or
           not planed, sanded or
           finger-jointed:
           - Sanded or fingerjointed   Sanding or fingerjointing
           - Beadings and             Beading or moulding
           mouldings
ex 4410 to Beadings and mouldings,    Beading or moulding
ex 4413    including moulded
           skirting and other
           moulded boards
ex 4415    Packing cases, boxes,      Manufacture from boards
           crates, drums and similar  not cut to size
           packings, of wood
ex 4416    Casks, barrels, vats, tubs Manufacture from riven
           and other coopers'         staves, not further worked
           products and parts         than sawn on the two
           thereof, of wood           principal surfaces
ex 4418    - Builders'joinery and     Manufacture in which all
           carpentry of wood          the materials used are
                                      classified within a heading
                                      other than that of the
                                      product. However, cellular
                                      wood panels, shingles and
                                      shakes may be used
           - Beadings and             Beading or moulding
           mouldings
                                                  13 2
 ---pagebreak--- HS heading    Description of product      Working or processing carried out on non-originating
No.                                       materials that confers originating status
     (1)                   (2)                            (3)              or            (4)
ex 4421       Match splints; wooden      Manufacture from wood of
              pegs or pins for footwear  any heading except drawn
                                         wood of heading No 4409
ex Chapter 45 Cork and articles of cork; Manufacture in which all
              except for:                the materials used are
                                         classified within a heading
                                         other than that of the
                                         product
4503          Articles of natural cork   Manufacture from cork of
                                         heading No 4501
Chapter 46    Manufactures of straw, of  Manufacture in which all
              esparto or of other        the materials used are
              plaiting materials;        classified within a heading
              basketware and             other than that of the
              wickerwork                 product
Chapter 47    Pulp of wood or of other   Manufacture in which all
              fibrous cellulosic         the materials used are
              material; recovered        classified within a heading
              (waste and scrap) paper    other than that of the
              or paperboard              product
ex Chapter 48 Paper and paperboard;      Manufacture in which all
              articles of paper pulp, of the materials used are
              paper or of paperboard;    classified within a heading
              except for:                other than that of the
                                         product
ex 4811       Paper and paperboard,      Manufacture from paper-
              ruled, lined or squared    making materials of Chapter
              only                       47
4816          Carbon paper, self-copy    Manufacture from paper-
              paper and other copying    making materials of Chapter
              or transfer papers (other  47
              than those of heading No
              4809), duplicator stencils
              and offset plates, of
              paper, whether or not put
              up in boxes
4817          Envelopes, letter cards,   Manufacturing in which:
              plain postcards and        - all the materials used are
              correspondence cards, of   classified within a heading
              paper or paperboard;       other than that of the
              boxes, pouches, wallets    product;
              and writing                - the value of all the
              compendiums, of paper or   materials used does not
              paperboard, containing     exceed 50% of the ex-works
              an assortment of paper      price of the product
              stationery
                                                     33
 ---pagebreak--- HS heading     Description of product      Working or processing carried out on non-originating
No.                                        materials that confers originating status
      (1)                   (2)                            (3)              or            (4)
ex 4818       Toilet paper                Manufacture from paper-
                                           making materials of Chapter
                                          47
ex 4819        Cartons, boxes, cases,     Manufacture in which:
              bags and other packing      - all the materials used are
              containers, of paper,       classified within a heading
              paperboard, cellulose       other than that of the
              wadding or webs of          product;
              cellulose fibres            - the value of all the
                                          materials used does not
                                          exceed 50% of the ex-works
                                          price of the product
ex 4820       Letter pads                 Manufacture in which the
                                          value of all the materials
                                          used does not exceed 50% of
                                          the ex-works price of the
                                          product
ex 4823       Other paper, paperboard,    Manufacture from paper-
              cellulose wadding and       making materials of Chapter
              webs of cellulose fibres,   47
              cut to size or shape
ex Chapter 49 Printed books,              Manufacture in which all
              newspapers, pictures and    the materials used are
              other products of the       classified within a heading
              printing industry;          other than that of the
              manuscripts, typescripts    product
              and plans; except for:
4909          Printed or illustrated      Manufacture from materials
              postcards; printed cards    not classified within
              bearing personal            heading Nos 4909 or 4911
              greetings, messages or
              announcements, whether
              or not illustrated, with or
              without envelopes c*r
              trimmings
4910          Calendars of any kind,
              printed, including
              calendar blocks:
              - Calendars of the          Manufacture in which:
              "perpetual" type or with    - all the materials used are
              replaceable blocks          classified within a heading
              mounted on bases other      other than that of the
              than paper or paperboard    product;
                                          - the value of all the
                                          materials used does not
                                          exceed 50% of the ex-works
                                          price of the product
                                                    34
 ---pagebreak--- HS heading       Description of product         Working or processing carried out on non-originating
No.                                             materials that confers originating status
     (1)                      (2)                                (3)             or               (4)
                    Other                      Manufacture from materials
                                               not classified in heading
                                               Nos 4909 or 4911
ex Chapter 50    Silk; except for:             Manufacture in which all
                                               the materials used are
                                               classified within a. heading
                                               other than that of the
                                               product
ex 5003           Silk waste (including        Carding or combing of silk
                 cocoons unsuitable for        waste
                  reeling, yarn waste and
                 garnetted stock), carded
                 or combed
5004 to ex        Silk yarn and yarn spun      Manufacture from1 :
5006             from silk waste               - raw silk or silk waste
                                               carded or combed or
                                               otherwise prepared for
                                               spinning,
                                               - other natural fibres not
                                               carded or combed or
                                               otherwise prepared for
                                               spinning,
                                                - chemical materials or
                                                textile pulp, or
                                                - paper-making materials
5007              Woven fabrics of silk or
                  of silk waste:
                  - Incorporating rubber        Manufacture from single
                  thread                        yarn1
                  - Other                       Manufacture from1:
                                                - coir yarn,
                                                - natural fibres,
                                                - man-made staple fibres
                                                not carded or combed or
                                                otherwise prepared for
                                                spinning,
                                                 - chemical materials or
                                                textile pulp, or
                                                 - paper
                                                 or
 1
   For special conditions relating to products made of a mixture of textile materials, see Introductory
 Note 5
                                                                 13!  K
 ---pagebreak--- HS heading       Description of product         Working or processing carried out on non-originating
No.                                             materials that confers originating status
      (1)                     (2)                               (3)              or               (4)
                                               Printing accompanied by at
                                               least two preparatory or
                                               finishing operations (such as
                                               scouring, bleaching,
                                               mercerizing, heat setting,
                                               raising, calendering, shrink
                                               resistance processing,
                                              permanent finishing,
                                              decatizing, impregnating,
                                               mending and burling) where
                                               the value of the unprinted
                                              fabric used does not exceed
                                              47.5% of the ex-works price
                                               of the product
ex Chapter 51    Wool, fine or coarse         Manufacture in which all
                 animal hair; horsehair        the materials used are
                 yarn and woven fabric;       classified within a heading
                 except for:                  other than that of the
                                              product
5106 to 5110     Yarn of wool, of fine or     Manufacture from1 :
                 coarse animal hair or of     - raw silk or silk waste
                 horsehair                    carded or combed or
                                              otherwise prepared for
                                              spinning,
                                              - natural fibres not carded
                                              or combed or otherwise
                                              prepared for spinning,
                                               - chemical materials or
                                               textile pulp, or
                                              - paper-making materials
5111 to 5113     Woven fabrics of wool, of
                 fine or coarse animal hair
                 or of horsehair:
                    Incorporating rubber      Manufacture from single
                 thread                       yam 1
                 - Other                      Manufacture from1 :
                                              - coir yarn,
                                               - natural fibres,
                                               - man-made staple fibres
                                               not carded or combed or
                                              otherwise prepared for
                                               spinning,
                                               - chemical materials or
                                               textile pulp, or
                                               - paper
1
  For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5
                                                                136
 ---pagebreak--- HS heading        Description of product        Working or processing carried out on non-originating
No.                                             materials that confers originating status
      (1)                     (2)                                (3)             or               (4)
                                               or
                                               Printing accompanied by at
                                               least two preparatory or
                                               finishing operations (such as
                                               scouring, bleaching,
                                               mercerizing, heat setting,
                                               raising, calendering, shrink
                                               resistance processing,
                                               permanent finishing,
                                               decatizing, impregnating,
                                               mending and burling) where
                                               the value of the unprinted
                                               fabric used does not exceed
                                               47.5% of the ex-works price
                                               of the product
ex Chapter 52     Cotton; except for:          Manufacture in which all
                                               the materials used are
                                               classified within a heading
                                               other than that of the
                                               product
5204 to 5207      Yarn and thread of cotton    Manufacture from1 :
                                               - raw silk or silk waste
                                               carded or combed or
                                               otherwise prepared for
                                               spinning,
                                               - natural fibres not carded
                                               or combed or otherwise
                                               prepared for spinning,
                                               - chemical materials or
                                               textile pulp, or
                                               - paper-making materials
5208 to 5212      Woven fabrics of cotton:
                  - Incorporating rubber       Manufacture from single
                  thread                       yarn1
                  - Other                      Manufacture from1:
                                                - coir yarn,
                                               - natural fibres,
                                               - man-made staple fibres
                                                not carded or combed or
                                               otherwise prepared for
                                               spinning,
                                               - chemical materials or
                                                textile pulp, or
                                                - paper
1
   For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5
                                                             1 37
 ---pagebreak--- HS heading        Description of product        Working or processing carried out on non-originating
No.                                             materials that confers originating status
      0)                       (2)                              (3)              or               (4)
                                               or
                                               Printing accompanied by at
                                               least two preparatory or
                                               finishing operations (such as
                                               scouring, bleaching,
                                               mercerizing, heat setting,
                                               raising, calendering, shrink
                                               resistance processing,
                                               permanent finishing,
                                               decatizing, impregnating,
                                               mending and burling) where
                                               the value of the unprinted
                                               fabric used does not exceed
                                               47.5% of the ex-works price
                                               of the product
ex Chapter 53     Other vegetable textile      Manufacture in which all
                  fibres; paper yarn and       the materials used are
                  woven fabrics of paper       classified within a heading
                  yarn; except for:            other than that of the
                                               product
5306 to 5308      Yarn of other vegetable      Manufacture from1 :
                  textile fibres; paper yarn   - raw silk or silk waste
                                               carded or combed or
                                               otherwise prepared for
                                               spinning,
                                               - natural fibres not carded
                                               or combed or otherwise
                                               prepared for spinning,
                                               - chemical materials or
                                               textile pulp, or
                                               - paper-making materials
5309 to 5311      Woven fabrics of other
                  vegetable textile fibres;
                  woven fabrics of paper
                  varn:
                  - Incorporating rubber       Manufacture from single
                  thread                       varn1
                  - Other                      Manufacture from1:
                                               - coir yarn,
                                               - natural fibres,
                                               - man-made staple fibres
                                                not carded or combed or
                                               otherwise prepared for
                                                spinning,
                                                - chemical materials or
                                               textile pulp, or
                                                - paper
 1
   For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5
                                                                    38
 ---pagebreak--- HS heading       Description of product        Working or processing carried out on non-originating
No.                                            materials that confers originating status
     (1)                     (2)                               (3)              or               (4)
                                              or
                                              Printing accompanied by at
                                              least two preparatory or
                                              finishing operations (such as
                                              scouring, bleaching,
                                              mercerizing, heat setting,
                                              raising, calendering, shrink
                                              resistance processing,
                                              permanent finishing,
                                              decatizing, impregnating,
                                              mending and burling) where
                                              the value of the unprinted
                                              fabric used does not exceed
                                              47.5% of the ex-works price
                                              of the product
5401 to 5406     Yarn, monofilament and       Manufacture from1:
                 thread of man-made           - raw silk or silk waste
                 filaments                    carded or combed or
                                              otherwise prepared for
                                              spinning,
                                              - natural fibres not carded
                                              or combed or otherwise
                                              prepared for spinning,
                                              - chemical materials or
                                              textile pulp, or
                                              - paper-making materials
5407 and         Woven fabrics of man-
5408             made filament yarn:
                 - Incorporating rubber       Manufacture from single
                 thread                       yarn1
                 - Other                      Manufacture from1:
                                              - coir yarn,
                                              - natural fibres,
                                              - man-made staple fibres
                                              not carded or combed or
                                              otherwise prepared for
                                              spinning,
                                              - chemical materials or
                                              textile pulp, or
                                              - paper
1
  For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5
                                                        139
 ---pagebreak--- HS heading       Description of product         Working or processing carried out on non-originating
No.                                             materials that confers originating status
     (1)                     (2)                                (3)              or               (4)
                                              or
                                              Printing accompanied by at
                                              least two preparatory or
                                              finishing operations (such as
                                              scouring, bleaching,
                                              mercerizing, heat setting,
                                              raising, calendering, shrink
                                              resistance processing,
                                              permanent finishing,
                                              decatizing, impregnating,
                                              mending and burling) where
                                              the value of the unprinted
                                              fabric used does not exceed
                                              47.5% of the ex-works price
                                              of the product
5501 to 5507     Man-made staple fibres       Manufacture from chemical
                                              materials or textile pulp
5508 to 5511     Yarn and sewing thread       Manufacture from1:
                 of man-made staple fibres    - raw silk or silk waste
                                              carded or combed or
                                              otherwise prepared for
                                              spinning,
                                              - natural fibres not carded
                                              or combed or otherwise
                                              prepared for spinning,
                                              - chemical materials or
                                              textile pulp, or
                                              - paper-making materials
5512 to 5516     Woven fabrics of man-
                 made staple fibres:
                 - Incorporating rubber       Manufacture from single
                 thread                       yarn1
                 - Other                      Manufacture from1:
                                               - coir yarn,
                                               - natural fibres,
                                              - man-made staple fibres
                                               not carded or combed or
                                              otherwise prepared for
                                               spinning,
                                               - chemical materials or
                                               textile pulp, or
                                               - paper
1
  For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5
                                                            140
 ---pagebreak--- HS heading        Description of product         Working or processing carried out on non-originating
No.                                              materials that confers originating status
      (1)                      (2)                                (3)             or               (4)
                                                or
                                                Printing accompanied by at
                                                least two preparatory or
                                                finishing operations (such as
                                                scouring, bleaching,
                                                mercerizing, heat setting,
                                                raising, calendering, shrink
                                                resistance processing,
                                                permanent finishing,
                                                decatising, impregnating,
                                                mending and burling) where
                                                the value cf the unprinted
                                                fabric used does not exceed
                                                47.5% of the ex-works price
                                                of the product
ex Chapter 56     Wadding, felt and non-        Manufacture from1 :
                  wovens; special yarns;        - coir yarn,
                  twine, cordage, ropes and     - natural fibres,
                  cables and articles           - chemical materials or
                  thereof; except for:          textile pulp, or
                                                - paper making materials
5602              Felt, whether or not
                  impregnated, coated,
                  covered or laminated:
                     Needleloom felt            Manufacture from l :
                                                - natural fibres,
                                                - chemical materials or
                                                textile pulp
                                                However:
                                                - polypropylene filament of
                                                heading No 5402,
                                                - polypropylene fibres of
                                                heading No 5503 or 5506 or
                                                - polypropylene filament
                                                tow of heading No 5501, of
                                                which the denomination in
                                                all cases of a single filament
                                                or fibre is less than 9 decitex
                                                may be used provided their
                                                value does not exceed 40%
                                                of the ex-works price of the
                                                product
 1
   For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5.
                                                            141
 ---pagebreak--- HS heading        Description of product         Working or processing carried out on non-originating
No.                                              materials that confers originating status
      (1)                      (2)                               (3)              or              (4)
                     Other                     Manufacture froml :
                                                - natural fibres,
                                                - man-made staple fibres
                                                made from casein, or
                                               - chemical materials or
                                               textile pulp
5604              Rubber thread and cord,
                  textile covered; textile
                 yarn, and strip and the
                  like of heading No 5404
                 or 5405, impregnated,
                 coated, covered or
                 sheathed with rubber or
                 plastics:
                 - Rubber thread and           Manufacture from rubber
                 cord, textile covered         thread or cord, not textile
                                               covered
                 - Other                       Manufacture from1:
                                               - natural fibres not carded
                                               or combed or otherwise
                                               processed for spinning,
                                               - chemical materials or
                                               textile pulp, or
                                               - paper-making materials
5605             Metallized yarn, whether      Manufacture from1:
                 or not gimped, being          - natural fibres,
                 textile yarn, or strip or     - man-made staple fibres
                 the like of heading No        not carded or combed or
                 5404 or 5405, combined        otherwise processed for
                 with metal in the form of     spinning,
                 thread, strip or powder or    - chemical materials or
                 covered with metal            textile pulp, or
                                               - paper-making materials
5606             Gimped yarn, and strip        Manufacture from1 :
                 and the like of heading       - natural fibres,
                 No 5404 or 5405 ,             - man-made staple fibres
                 gimped (other than those      not carded or combed or
                 of heading No 5605 and        otherwise processed for
                 gimped horsehair yarn);       spinning,
                 chenille yarn (including      - chemical materials or
                 flock chenille yarn; loop     textile pulp, or
                 wale-yarn                     - paper-making materials
Chapter 57       Carpets and other textile
                 floor coverings:
1
  For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5
                                                                142
 ---pagebreak--- HS heading       Description of product         Working or processing carried out on non-originating
No.                                             materials that confers originating status
     (1)                      (2)                                (3)             or               (4)
                   Of needleloom felt          Manufacture from1:
                                               - natural fibres, or
                                               - chemical materials or
                                               textile pulp
                                               However:
                                               - polypropylene filament of
                                               heading No 5402,
                                               - polypropylene fibres of
                                               heading No 5503 or 5506 or
                                               - polypropylene filament
                                               tow of heading No 5501, of
                                               which the denomination in
                                               all cases of a single filament
                                               or fibre is less than 9 decitex
                                               may be used provided their
                                               value does not exceed 40%
                                               of the ex-works price of the
                                               product
                 - Of other felt               Manufacture from1:
                                               - natural fibres not carded
                                               or combed or otherwise
                                               processed for spinning, or
                                               - chemical materials or
                                               textile pulp
                 - Other                       Manufacture from1 :
                                               - coir yarn,
                                               - synthetic or artificial
                                               filament yarn,
                                               - natural fibres, or
                                               - man-made staple fibres
                                               not carded or combed or
                                               otherwise processed for
                                               spinning
ex Chapter 58    Special woven fabrics;
                 tufted textile fabrics; lace;
                 tapestries; trimmings;
                 embroidery; except for:
                 - Combined with rubber        Manufacture from single
                 thread                        yarn1
                 - Other                       Manufacture from1:
                                               - natural fibres,
                                               - man-made staple fibres
                                               not carded or combed or
                                               otherwise processed for
                                               spinning, or
                                               - chemical materials or
                                               textile pulp,
1
  For special conditions relating to products made of a mixture of textile materials, see Introductory
                                                              143
 ---pagebreak--- HS heading Description of product      Working or processing carried out on non-originating
No.                                    materials that confers originating status
     (1)                 (2)                           (3)              or            (4)
                                      or
                                      Printing accompanied by at
                                      least two preparatory or
                                      finishing operations (such as
                                      scouring, bleaching,
                                      mercerizing, heat setting,
                                      raising, calendering, shrink
                                      resistance processing,
                                      permanent finishing,
                                      decatizing, impregnating,
                                      mending and burling) where
                                      the value of the unprinted
                                      fabric used does not exceed
                                      47.5% of the ex-works price
                                      of the product
5805       Hand-woven tapestries of   Manufacture in which all
           the types gobelins,        the materials used are
           flanders, aubusson,        classified within a heading
           beauvais and the like, and other than that of the
           needle-worked tapestries   product
           (for example, petit point,
           cross stitch), whether or
           not made up
5810       Embroidery in the piece,   Manufacture in which:
           in strips or in motifs     - all the materials used are
                                      classified within a heading
                                      other than that of the
                                      product;
                                      - the value of all the
                                      materials used does not
                                      exceed 50% of the ex-works
                                      price of the product
5901       Textile fabrics coated     Manufacture from varn
           with gum or amylaceous
           substances of a kind used
           for the outer covers of
           books or the like; tracing
           cloth; prepared painting
           canvas; buckram and
           similar stiffened textile
           fabrics of a kind used for
           hat foundations
5902       Tyre cord fabric of high
           tenacity yarn of nylon or
           other polyamides,
           polyesters or viscose
           rayon:
           - Containing not more      Manufacture from yarn
           than 9 0 % by weight of
           textile materials
                                                  144
 ---pagebreak--- HS heading       Description of product        Working or processing carried out on non-originating
No.                                            materials that confers originating status
     (1)                      (2)                              (3)              or                (4)
                   Other                      Manufacture from chemical
                                              materials or textile pulp
5903             Textile fabrics              Manufacture from yarn
                 impregnated, coated,
                 covered or laminated with    or
                 plastics, other than those
                 ofheadingNo5902              Printing accompanied by at
                                              least two preparatory or
                                              finishing operations (such
                                              as scouring, bleaching,
                                              mercerising, heat setting,
                                              rasing, calendering, shrink
                                              resistance processing,
                                              permanent finishing,
                                              decatising, impregnating,
                                              mending and burling) where
                                              the value of the unprinted
                                              fabric used does not exceed
                                              47.5% of the ex-works price
                                              of the product
5904             Linoleum, whether or         Manufacture from yarn1
                 note cut to shape; floor
                 coverings consisting of a
                 coating or covering
                 applied on a textile
                 backing, whether or not
                 cut to shape
5905             Textile wall coverings:
                 - Impregnated, coated,        Manufacture from yarn
                 covered or laminated with
                 rubber, plastics or other
                 materials
                 - Other                       Manufacture from1:
                                               - coir yarn,
                                               - natural fibres,
                                               - man-made staple fibres
                                               not carded or combed or
                                               otherwise processed for
                                               spinning, or
                                               - chemical materials or
                                               textile pulp,
                                               or
1
  For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5
                                                                  145
 ---pagebreak--- HS heading       Description of product         Working or processing carried out on non-originating
No.                                             materials that confers originating status
      (1)                     (2)                               (3)              or               (4)
                                               Printing accompanied by at
                                               least two preparatory or
                                               finishing operations (such
                                               as scouring, bleaching,
                                               mercerizing, heat setting,
                                               raising, calendering, shrink
                                               resistance processing,
                                               permanent finishing,
                                               decatizing, impregnating,
                                               mending and burling) where
                                               the value of the unprinted
                                               fabric used does not exceed
                                               47.5% of the ex-works price
                                               of the product
5906             Rubberized textile
                 fabrics, other than those
                 ofheadingNo5902:
                 - Knitted or crocheted        Manufacture from1 :
                 fabrics                       - natural fibres,
                                               - man-made staple fibres
                                               not carded or combed or
                                               otherwise processed for
                                               spinning, or
                                               - chemical materials or
                                               textile pulp
                 - Other fabrics made of       Manufacture from chemical
                 synthetic filament yarn,      materials
                 containing more than
                 90% by weight of textile
                 materials
                 - Other                       Manufacture from yarn
1
  For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5                                                   A
 ---pagebreak--- HS heading Description of product     Working or processing carried out on non-originating
No.                                   materials that confers originating status
     (1)               (2)                            (3)              or            (4)
5907       Textile fabrics otherwise Manufacture from yarn
           impregnated, coated or
           covered; painted canvas   or
           being theatrical scenery,
           studio backcloths or the  Printing accompanied by at
           like                      least two preparatory or
                                     finishing operations (such
                                     as scouring, bleaching,
                                     mercerising, heat setting,
                                     rasing, calendering, shrink
                                     resistance processing,
                                     permanent finishing,
                                     decatising, impregnating,
                                     mending and burling) where
                                     the value of the unprinted
                                     fabric used does not exceed
                                     47.5%o of the ex-works price
                                     of the product
5908       Textile wicks, woven,
           plaited or knitted, for
           lamps, stoves, lighters,
           candles or the like;
           incandescent gas mantles
           and tubular knitted gas
           mantle fabric therefore,
           whether or not
           impregnated:
           - Incandescent gas        Manufacture from tubular
           mantles, impregnated      knitted gas mantle fabric
           - Other                   Manufacture in which all
                                     the materials used are
                                     classified within a heading
                                     other than that of the
                                     product
                                                  147
 ---pagebreak--- HS heading        Description of product          Working or processing carried out on non-originating
No.                                               materials that confers originating status
       (1)                     (2)                                 (3)             or             (4)
5909 to 5911      Textile articles of a kind
                  suitable for industrial use:
                  - Polishing discs or rings     Manufacture from yarn or
                  other than of felt of          waste fabrics or rags of
                  heading No 5911                 heading No 6310
                  - Woven fabrics, of a          Manufacture from1:
                  kind commonly used in          - coir yarn,
                  papermaking or other           - the following materials:
                  technical uses, felted or        - yarn of
                  not, whether or not              polytetrafluoroethylene2,
                  impregnated or coated,           - yarn, multiple, of
                  tubular or endless with          polyamide, coated
                  single or multiple warp          impregnated or covered
                  and/or weft, or flat woven       with a phenolic resin,
                  with multiple warp and/or        - yarn of synthetic textile
                  weft of heading No 5911          fibres of aromatic
                                                   polyamides, obtained by
                                                   polycondensation of m-
                                                   phenylenediamine and
                                                   isophthalic acid,
                                                   - monofil of
                                                   polytetrafluoroethylene2
                                                   - yarn of synthetic textile
                                                   fibres of poly-/?-phenylene
                                                   terephthalamide,
                                                   - glassfibreyarn, coated
                                                   with phenol resin and
                                                   gimped with acrylic yarn2
                                                   - copolyester
                                                   monofilaments of a
                                                   polyester and a resin of
                                                   terephthalic acid and 1.4
                                                   cyclohexanedincthanol
                                                   and isophthalic acid,
                                                 - natural fibres,
                                                 - man-made staple fibres not
                                                 carded or combed or
                                                 otherwise processed for
                                                 spinning, or
                                                 - chemical materials or
                                                 textile pulp
1
  For special conditions relating to products made of a mixture of textile materials, see Introductory
note 5
2
  The use of this material is restricted to the manufacture of woven fabrics of a kind used in paper-
making machinery.
                                                                    148
 ---pagebreak--- HS heading       Description of product         Working or processing carried out on non-originating
No.                                             materials that confers originating status
     (1)                       (2)                              (3)              or               (4)
                    Other                      Manufacture from1:
                                               - coir yarn,
                                               - natural fibres,
                                               - man-made staple fibres
                                               not carded or combed or
                                               otherwise processed for
                                               spinning, or
                                               - chemical materials or
                                               textile pulp
Chapter 60        Knitted or crocheted         Manufacture from1 :
                  fabrics                      - natural fibres,
                                               - man-made staple fibres
                                               not carded or combed or
                                               otherwise processed for
                                               spinning, or
                                               - chemical materials or
                                               textile pulp
Chapter 61        Articles of apparel and
                  clothing accessories,
                  knitted or crocheted:
                  - Obtained by sewing         Manufacture from yarn 1 ' 2
                  together or otherwise
                  assembling, two or more
                  pieces of knitted or
                  crocheted fabric which
                  have been either cut to
                  form or obtained directly
                  to form
                  - Other                      Manufacture from1 :
                                               - natural fibres,
                                               - man-made staple fibres
                                               not carded or combed or
                                               otherwise processed for
                                               spinning, or
                                               - chemical materials or
                                               textile pulp
ex Chapter 62     Articles of apparel and      Manufacture from yarn 1,2
                  clothing accessories, not
                  knitted or crocheted;
                  except for:
1
   For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5
2
  See Introductory Note 6
                                                                1.49
 ---pagebreak--- HS heading        Description of product        Working or processing carried out on non-originating
No.                                             materials that confers originating status
      (1)                      (2)                              (3)              or                (4)
ex 6202,          Women's, girls' and          Manufacture from yarn1
ex 6204,          babies' clothing and         or
ex 6206,          clothing accessories for     Manufacture from
ex 6209 and       babies, embroidered          unembroidered fabric
ex 6211                                        provided the value of the
                                               unembroidered fabric used
                                               does not exceed 40% of the
                                               ex-works price of the
                                               product1
ex 6210 and       Fire-resistant equipment     Manufacture from yarn1
ex 6216           of fabric covered with foil  or
                  of aluminized polyester      Manufacture from uncoated
                                               fabric provided the value of
                                               the uncoated fabric used
                                               does not exceed 40% of the
                                               ex-works price of the
                                               product1
6213 and          Handkerchiefs, shawls,
6214              scarves, mufflers,
                  mantillas, veils and the
                  like:
                     Embroidered               Manufacture from
                                               unbleached single yarn1'2
                                               or
                                               Manufacture from
                                               unembroidered fabric
                                               provided the value of the
                                               unembroidered fabric used
                                               does not exceed 40% of the
                                               ex-works price of the
                                               product1
1
   See Introductory Note 6.
2
  For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5
                                                           15 0
 ---pagebreak--- HS heading      Description of product         Working or processing carried out on non-originating
No.                                            materials that confers originating status
     (1)                     (2)                               (3)              or               (4)
                - Other                       Manufacture from
                                              unbleached single yarn1,2
                                              or
                                              Making up followed by
                                              printing accompanied by at
                                              least two preparatory or
                                              finishing operations (such as
                                              scouring, bleaching,
                                              mercerizing, heat setting,
                                              raising, calendering, shrink
                                              resistance processing,
                                              permanent finishing,
                                              decatizing, impregnating,
                                              mending and burling) where
                                              the value of the unprinted
                                              goods of heading Nos 6213
                                              and 6214 used does not
                                              exceed 47.5% of the ex-
                                              works price of the product
6217             Other made up clothing
                 accessories; parts of
                 garments or of clothing
                 accessories, other than
                 those of heading No
                 6212:
                 - Embroidered                Manufacture from yarn1
                                              or
                                              Manufacture from
                                              unembroidered fabric
                                              provided the value of the
                                              unembroidered fabric used
                                              does not exceed 40% of the
                                              ex-works price of the
                                              product1
                 - Fire resistant             Manufacture from yarn1
                 equipment of fabric          or
                 covered with foil of         Manufacture from uncoated
                 aluminized polyester         fabric provided the value of
                                              the uncoated fabric used
                                              does not exceed 40% of the
                                               ex-works price of the
                                               product1
1
  See Introductory Note 6.
2 For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5.
                                                            1.51
 ---pagebreak--- HS heading        Description of product          Working or processing carried out on non-originating
No.                                               materials that confers originating status
      (1)                      (2)                                (3)              or             (4)
                  - Interlinings for collars     Manufacture in which:
                  and cuffs, cut out             - all the materials used are
                                                 classified within a heading
                                                 other than that of the
                                                 product;
                                                 - the value of all the
                                                 materials used does not
                                                 exceed 40% of the ex-works
                                                 price of the product
                    Other                        Manufacture from yarn
ex Chapter 63     Other made-up textile          Manufacture in which all
                  articles; sets; worn           the materials used are
                  clothing and worn textile      classified within a heading
                  articles; rags; except for:    other than that of the
                                                 product
6301 to 6304      Blankets, travelling rugs,
                  bed linen etc.; curtains
                  etc.; other furnishing
                  articles:
                  - Of felt, of non-wovens       Manufacture from2:
                                                 - natural fibres, or
                                                 - chemical materials or
                                                 textile pulp
                     Other-
                      Embroidered                Manufacture from
                                                 unbleached single yam 1 ' 3
                                                 or
                                                 Manufacture from
                                                 unembroidered fabric (other
                                                 than knitted or crocheted)
                                                 provided the value of the
                                                 unembroidered fabric used
                                                 does not exceed 40% of the
                                                 ex-works price of the
                                                 product
                      Other                      Manufacture from
                                                  unbleached single yarn 13
 1
   See Introductory Note 6.
2 For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5.
 3 For knitted or crocheted articles, not elastic or rubberized, obtained by sewing or assembly pieces of
knitted or crocheted fabrics (cut out or knitted directly to shape), see Introductory Note 6.
                                                                      1    6}
 ---pagebreak--- HS heading        Description of product        Working or processing carried out on non-originating
No.                                             materials that confers originating status
      (1)                      (2)                               (3)             or               (4)
6305              Sacks and bags, of a kind    Manufacture from1 :
                  used for the packing of      - natural fibres,
                  goods                        - man-made staple fibres
                                               not carded or combed or
                                               otherwise processed for
                                               spinning, or
                                               - chemical materials or
                                               textile pulp
6306              Tarpaulins, awnings and
                  sunblinds; tents; sails for
                  boats, sailboards or
                  landcrafit; camping goods:
                  - Ofnon-wovens               Manufacture from1'2 :
                                               - natural fibres, or
                                               - chemical materials or
                                               textile pulp
                  - Other                      Manufacture from
                                               unbleached single yarn 1 ' 2
6307              Other made-up articles,      Manufacture in which the
                  including dress patterns     value of all the materials
                                               used does not exceed 40% of
                                               the ex-works price of the
                                               product
6308              Sets consisting of woven     Each item in the set must
                  fabric and yarn, whether     satisfy the rule which would
                  or not with accessories,     apply to it if it were not
                  for making up into rugs,     included in the set.
                  tapestries, embroidered      However, non-originating
                  table cloths or serviettes   articles may be incorporated
                  or similar textile articles, provided their total value
                  put up in packings for       does not exceed 15% of the
                  retail sale                  ex-works price of the set
ex Chapter 64     Footwear; gaiters and the    Manufacture from materials
                  like; except for:            of any heading except for
                                               assemblies of uppers affixed
                                               to inner soles or to other
                                                sole components of heading
                                               No 6406
 1
   For special conditions relating to products made of a mixture of textile materials, see Introductory
Note 5
2
   Sec Introductory Note 6.
                                                                  15 3
 ---pagebreak--- HS heading        Description of product        Working or processing carried out on non-originating
No.                                             materials that confers originati ng status
      (!)                      (2)                              (3)               or           (4)
6406              Parts of footwear            Manufacture in which all
                  (including uppers            the materials used are
                  whether or not attached to   classified within a heading
                  soles other than outer       other than that of the
                  soles); removable in-        product
                  soles, heel cushions and
                  similar articles; gaiters,
                  leggings and similar
                  articles, and parts thereof
ex Chapter 65     Headgear and parts           Manufacture in which all
                  thereof, except for:         the materials used are
                                               classified within a heading
                                               other than that of the
                                               product
6503             Felt hats and other felt     Manufacture from yarn or
                  headgear, made from the      textile fibres1
                  hat bodies, hoods or
                 plateaux of heading No
                 6501, whether or not
                 lined or trimmed
6505             Hats and other headgear,     Manufacture from yarn or
                 knitted or crocheted, or     textile fibres1
                 made up from lace, felt or
                 other textile fabric, in the
                 piece (but not in strips),
                 whether or not lined or
                 trimmed; hair-nets of any
                 material, whether or not
                 lined or trimmed
ex Chapter 66    Umbrellas, sun               Manufacture in which all
                 umbrellas, walking-          the materials used are
                 sticks, seat-sticks, whips,  classified within a heading
                 riding-crops and parts       other than that of the
                 thereof; except for:         product
6601             Umbrellas and sun            Manufacture in which the
                 umbrellas (including         value of all the materials
                 walking-stick umbrellas,     used does not exceed 50% of
                 garden umbrellas and         the ex-works price of the
                 similar umbrellas)           product
Chapter 67       Prepared feathers and        Manufacture in which all
                 down and articles made       the materials used are
                 of feathers or of down;      classified within a heading
                 artificial flowers; articles other than that of the
                 of human hair                product
  See Introductory Note 6.
                                                               154
 ---pagebreak--- HS heading    Description of product        Working or processing carried out on non-originating
No.                                         materials that confers originating status
     (1)                   (2)                              (3)              or            (4)
ex Chapter 68 Articles of stone, plaster,  Manufacture in which all
              cement, asbestos, mica or    the materials used are
              similar materials; except    classified within a heading
              for:                         other than that of the
                                           product
ex 6803       Articles of slate or of      Manufacture from worked
              agglomerated slate           slate
ex 6812       Articles of asbestos;        Manufacture from materials
              articles of mixtures with a  of any heading
              basis of asbestos or of
              mixtures with a basis of
              asbestos and magnesium
              carbonate
ex 6814       Articles of mica,            Manufacture from worked
              including agglomerated       mica (including
              or reconstituted mica, on    agglomerated or
              a support of paper,          reconstituted mica)
              paperboard or other
              materials
Chapter 69    Ceramic products             Manufacture in which all
                                           the materials used are
                                           classified within a heading
                                           other than that of the
                                           product
ex Chapter 70 Glass and glassware;         Manufacture in which all
              except for :                 the materials used are
                                           classified within a heading
                                           other than that of the
                                           product
ex 7003       Glass with a non-            Manufacture from materials
ex 7004 and   reflecting layer             of heading No. 7001
ex 7005
7006          Glass of heading No          Manufacture from materials
              7003, 7004 or 7005, bent,    ofheadingNo7001
              edgeworked, engraved,
              drilled, enamelled or
              otherwise worked, but not
              framed or fitted with
              other materials
7007           Safety glass, consisting of Manufacture from materials
              toughened (tempered) or      of heading No 7001
               laminated glass
7008          Multiple-walled              Manufacture from materials
               insulating units of glass    ofheadingNo7001
                                                                £>a
 ---pagebreak--- HS heading     Description of product       Working or processing carried out on non-originating
No.                                         materials that confers originating status
     (1)                     (2)                            (3)              or            (4)
7009           Glass mirrors, whether or   Manufacture from materials
               not framed, including       ofheadingNo7001
               rear-view mirrors
7010           Carboys, bottles, flasks,   Manufacture in which all
              jars, pots, phials,          the materials used are
               ampoules and other          classified within a heading
               containers, of glass, of a  other than that of the
               kind used for the           product
               conveyance or packing of    or
               goods; preserving jars of   Cutting of glassware,
               glass; stoppers, lids and   provided the value of the
               other closures, of glass    uncut glassware does not
                                           exceed 50% of the ex-works
                                           price of the product
7013           Glassware of a kind used    Manufacture in which all
               for table, kitchen, toilet, the materials used are
               office, indoor decoration   classified within a heading
               or similar purposes (other  other than that of the
               than that of heading No     product
               7010 or 7018)               or
                                           Cutting of glassware,
                                           provided the value of the
                                           uncut glassware does not
                                           exceed 50% of the ex-works
                                           price of the product
                                           or
                                           Hand-decoration (with the
                                           exception of silk-screen
                                           printing) of hand-blown
                                           glassware, provided the
                                           value of the hand-blown
                                           glassware does not exceed
                                           50% of the ex-works price
                                           of the product
ex 7019        Articles (other than yarn)  Manufacture from:
               of glass fibres             - uncoloured slivers,
                                           rovings, yarn or chopped
                                           strands, or
                                           - glass wool
ex Chapter 71  Natural or cultured         Manufacture in which all
               pearls, precious or semi-   the materials used are
               precious stones, precious   classified within a heading
               metals, metals clad with    other than that of the
               precious metal, and         product
              articles thereof; imitation
              jeweller>'; coin; except
              for:
                                                            156
 ---pagebreak--- HS heading  Description of product     Working or processing carried out on non-originating
No.                                    materials that confers originating status
     (1)                 (2)                           (3)               or           (4)
ex 7101     Natural or cultured       Manufacture in which the
            pearls, graded and        value of all the materials
            temporarily strung for    used does not exceed 50% of
            convenience of transport  the ex-works price of the
                                      product
ex 7102,    Worked precious or semi-  Manufacture from unworked
ex 7103 and precious stones (natural, precious or semi-precious
ex 7104     synthetic or              stones
            reconstructed)
7106,7108   Precious metals:
and 7110
              Unwrought               Manufacture from materials
                                      not classified within
                                      heading No 7106, 7108 or
                                      7110
                                      or
                                      Electrolytic, thermal or
                                      chemical separation of
                                      precious metals of heading
                                      No 7106, 7108 or 7110
                                      or
                                      Alloying of precious metals
                                      of heading No 7106, 7108 or
                                      7110 with each other or
                                      with base metals
            - Semi-manufactured or    Manufacture from
            in powder form            unwrought precious metals
ex 7107,    Metals clad with precious Manufacture from metals
ex 7109 and metals, semi-             clad with precious metals,
ex 7111     manufactured              unwrought
7116        Articles of natural or    Manufacture in which the
            cultured pearls, precious value of all the materials
            or semi-precious stones   used does not exceed 50% of
            (natural, synthetic or    the ex-works price of the
            reconstructed)            product
7117        Imitation jewellers'      Manufacture in which all
                                      the materials used are
                                      classified within a heading
                                      other than that of the
                                      product
                                      or
                                      Manufacture from base
                                       metal parts, not plated or
                                      covered with precious
                                       metals, provided the value
                                      of all the materials used
                                       does not exceed 50% of the
                                       ex-works price of the
                                       product
                                                               -4 ^  I*;
 ---pagebreak--- HS heading    Description of product       Working or processing carried out on non-originating |
No.                                        materials that confers originating status
      (1)                  (2)                             (3)              or            (4)
ex Chapter 72 Iron and steel; except for: Manufacture in which all
                                          the materials used are
                                          classified within a heading
                                          other than that of the
                                          product
7207          Semi-finished products of   Manufacture from materials
              iron or non-alloy steel     of heading No 7201, 7202,
                                          7203, 7204 or 7205
7208 to 7216  Flat rolled products, bars  Manufacture from ingots or
              and rods, angles, shapes    other primary forms of
              and sections of iron or     heading No 7206
              non-alloy steel
7217          Wire of iron or non-alloy   Manufacture from semi-
              steel                       finished materials of
                                          heading No 7207
ex 7218, 7219 Semi-finished products,     Manufacture from ingots or
to 7222       flat rolled products, bars  other primary forms of
              and rods, angles, shapes    heading No 7218
              and sections of stainless
              steel
7223          Wire of stainless steel     Manufacture from semi-
                                          finished materials of
                                          heading No 7218
ex 7224, 7225 Semi-finished products,     Manufacture from ingots or
to 7228       flat rolled products, hot-  other primary forms of
              rolled bars and rods, in    heading No 7206, 7218 or
              irregularly wound coils;    7224
              angles, shapes and
              sections, of other alloy
              steel; hollow drill bars
              and rods, of alloy or non-
              alloy steel
7229          Wire of other alloy steel   Manufacture from semi-
                                          finished materials of
                                          heading No 7224
ex Chapter 73 Articles of iron or steel;  Manufacture in which all
              except for:                 the materials used are
                                          classified within a heading
                                          other than that of the
                                          product
ex 7301       Sheet piling                Manufacture from materials
                                          of heading No 7206
                                                    158
 ---pagebreak--- HS heading Description of product         Working or processing carried out on non-originating
No.                                       materials that confers originating status
     (1)                 (2)                              (3)              or            (4)
7302       Railway or tramway track      Manufacture from materials
           construction materials of     of heading No 7206
           iron or steel, the
           following: rails,
           checkrails and rackrails,
           switch blades, crossing
           frogs, point rods and
           other crossing pieces,
           sleepers (cross-ties),
           fishplates, chairs, chair
           wedges, sole pates (base
           plates), rail clips,
           bedplates, ties and other
            material specialized for
           jointing or fixing rails
7304, 7305 Tubes, pipes and hollow       Manufacture from materials
and 7306   profiles, of iron (other      of heading No 7206, 7207,
            than cast iron) or steel     7218 or 7224
ex 7307    Tube or pipe fittings of      Turning, drilling, reaming,
            stainless steel (ISO No      threading, deburring and
           X5CrNiMo 1712),               sandblasting of forged
           consisting of several parts   blanks the value of which
                                         does not exceed 35% of the
                                         ex-works price of the
                                         product
7308        Structures (excluding        Manufacture in which all
            prefabricated buildings of   the materials used are
            heading No 9406) and         classified within a heading
            parts of structures (for     other than that of the
            example, bridges and         product. However, welded
            bridge-sections, lock-       angles, shapes and sections
            gates, towers, lattice       of heading No 7301 may not
            masts, roofs, roofing        be used
            frameworks, doors and
            windows and their frames
            and thresholds for doors,
            shutters, balustrades,
            pillars and columns), of
            iron or steel; plates, rods,
            angles, shapes, sections,
            tubes and the like,
            prepared for use in
            structures, of iron or steel
ex 7315     Skid chains                  Manufacture in which the
                                         value of all the materials of
                                          heading No 7315 used does
                                          not exceed 50% of the ex-
                                         works price of the product
                                                      159
 ---pagebreak--- HS heading    Description of product     Working or processing carried out on non-originating
No.                                      materials that confers originating status
     (1)                  (2)                            (3)              or            (4)
ex Chapter 74 Copper and articles       Manufacture in which:
              thereof; except for:      - all the materials used are
                                        classified within a heading
                                        other than that of the
                                        product;
                                        - the value of all the
                                        materials used does not
                                        exceed 50% of the ex-works
                                        price of the product
7401          Copper mattes; cement     Manufacture in which all
              copper (precipitated      the materials used are
              copper)                   classified within a heading
                                        other than that of the
                                        product
7402          Unrefined copper; copper  Manufacture in which all
              anodes for electrolytic   the materials used are
              refining                  classified within a heading
                                        other than that of the
                                        product
7403          Refined copper and
              copper alloys, unwrought:
                Refined copper          Manufacture in which all
                                        the materials used are
                                        classified within a heading
                                        other than that of the
                                        product
              - Copper alloys and       Manufacture from refined
              refined copper containing copper, unwrought, or waste
              other elements            and scrap of copper
7404          Copper waste and scrap    Manufacture in which all
                                        the materials used are
                                        classified within a heading
                                        other than that of the
                                        product
7405          Master alloys of copper   Manufacture in which all
                                        the materials used are
                                        classified within a heading
                                        other than that of the
                                        product
ex Chapter 75 Nickel and articles       Manufacture in which:
              thereof; except for:      - all the materials used are
                                        classified within a heading
                                        other than that of the
                                        product;
                                        - the value of all the
                                        materials used does not
                                        exceed 50% of the ex-works
                                        price of the product
                                              160
 ---pagebreak--- HS heading    Description of product     Working or processing carried out on non-originating
No.                                      materials that confers originating status
                          (2)                             (3)
     (1)                                                                  or            iH
7501 to 7503  Nickel mattes, nickel     Manufacture in which all
              oxide sinters and other   the materials used are
              intermediate products of  classified within a heading
              nickel metallurgy;        other than that of the
              unwrought nickel; nickel  product
              waste and scrap
ex Chapter 76 Aluminium and articles    Manufacture in which:
              thereof; except for:      - all the materials used are
                                        classified within a heading
                                        other than that of the
                                        product;
                                        - the value of all the
                                        materials used does not
                                        exceed 50% of the ex-works
                                        price of the product
7601          Unwrought aluminium       Manufacture by thermal or
                                        electrolytic treatment from
                                        unalloyed aluminium or
                                        waste and scrap of
                                        aluminium
7602          Aluminium waste or        Manufacture in which all
              scrap                     the materials used are
                                        classified within a heading
                                        other than that of the
                                        product
ex 7616       Aluminium articles other  Manufacture in which:
              than gauze, cloth, grill, - all the materials used are
              netting, fencing,         classified within a heading
              reinforcing fabric and    other than that of the
              similar materials         product. However, gauze,
              (including endless bands) cloth, grill, netting, fencing,
              of aluminium wire, and    reinforcing fabric and
              expanded metal of         similar materials (including
              aluminium                 endless bands) of aluminium
                                        wire, or expanded metal of
                                        aluminium may be used;
                                        - the value of all the
                                        materials used does not
                                        exceed 50% of the ex-works
                                        price of the product
Chapter 77    Reserved for possible
              future use in HS
                                                         161
 ---pagebreak--- HS heading    Description of product      Working or processing carried out on non-originating
No.                                       materials that confers originating status
     (1)                  (2)                             (3)              or            (4)
ex Chapter 78 Lead and articles thereof; Manufacture in which:
              except for:                - all the materials used are
                                         classified within a heading
                                         other than that of the
                                         product;
                                         - the value of all the
                                         materials used does not
                                         exceed 50% of the ex-works
                                         price of the product
7801          Unwrought lead:
                Refined lead             Manufacture from "bullion"
                                         or "work" lead
                Other                    Manufacture in which all
                                         the materials used are
                                         classified within a heading
                                         other than that of the
                                         product. However, waste
                                         and scrap of heading No
                                         7802 may not be used
7802          Lead waste and scrap       Manufacture in which all
                                         the materials used are
                                         classified within a heading
                                         other than that of the
                                         product
ex Chapter 79 Zinc and articles thereof; Manufacture in which:
              except for:                - all the materials used are
                                         classified within a heading
                                         other than that of the
                                         product;
                                         - the value of all the
                                         materials used does not
                                         exceed 50% of the ex-works
                                         price of the product
7901          Unwrought zinc             Manufacture in which all
                                         the materials used are
                                         classified within a heading
                                         other than that of the
                                         product. However, waste
                                         and scrap of heading No
                                         7902 may not be used
7902          Zinc waste and scrap       Manufacture in which all
                                         the materials used are
                                         classified within a heading
                                         other than that of the
                                         product
                                                  62
 ---pagebreak--- HS heading    Description of product      Working or processing carried out on non-originating
No.                                       materials that confers originating status
     (1)                   (2)                            (3)              or             (4)
ex Chapter 80 Tin and articles thereof;  Manufacture in which:
              except for:                - all the .naterials used are
                                         classified within a heading
                                         other than that of the
                                         product;
                                         - the value of all the
                                         materials used does not
                                         exceed 50% of the ex-works
                                         price of the product
8001          Unwrought tin              Manufacture in which all
                                         the materials used are
                                         classified within a heading
                                         other than that of the
                                         product. However, waste
                                         and scrap of heading No
                                         8002 may not be used
8002 and      Tin waste and scrap;       Manufacture in which all
8007          other articles of tin      the materials used are
                                         classified within a heading
                                         other than that of the
                                         product
Chapter 81    Other base metals;
              cermets; articles thereof:
              - Other base metals,       Manufacture in which the
              wrought; articles thereof  value of all the materials
                                         classified within the same
                                         heading as the product used
                                         does not exceed 50% of the
                                         ex-works price of the
                                         product
              - Other                    Manufacture in which all
                                         the materials used are
                                         classified within a heading
                                         other than that of the
                                         product
ex Chapter 82 Tools, implements,         Manufacture in which all
              cutlery, spoons and forks, the materials used are
              of base metal; parts       classified within a heading
              thereof of base metal;     other than that of the
              except for:                product
                                                  163
 ---pagebreak--- HS heading  Description of product       Working or processing carried out on non-originating
 No.                                     materials that confers originating status
      (1)               (2)                              (3)              or            (4)
 8206       Tools of two or more of     Manufacture in which all
            the heading Nos 8202 to     the materials used are
            8205, put up in sets for    classified within a heading
            retail sale                 other than heading Nos
                                        8202 to 8205. However,
                                        tools of heading Nos 8202 to
                                        8205 may be incorporated
                                        into the set provided their
                                        value does not exceed 15%
                                        of the ex-works price of the
                                        set
8207       Interchangeable tools for   Manufacture in which:
            hand tools, whether or      - all the materials used are
            not power-operated, or for classified within a heading
            machine-tools (for         other than that of the
           example, for pressing,      product;
           stamping, punching,         - the value of all the
           tapping, threading,          materials used does not
           drilling, boring,           exceed 40% of the ex-works
           broaching, milling,         price of the product
           turning, or screwdriving),
           including dies for
           drawing or extruding
           metal, and rock drilling
           or earth boring tools
8208       Knives and cutting          Manufacture in which:
           blades, for machines or     - all the materials used are
           for mechanical appliances   classified within a heading
                                       other than that of the
                                       product;
                                       - the value of all the
                                       materials used does not
                                       exc?ed 40% of the ex-works
                                       price of the product
ex 8211    Knives with cutting         Manufacture in which all
           blades, serrated or not     the materials used are
           (including pruning          classified within a heading
           knives), other than knives  other than that of the
           ofheadingNo8208             product. However, knife
                                       blades and handles of base
                                       metal may be used
8214       Other articles of cutlery   Manufacture in which all
           (for example, hair          the materials used are
           clippers, butchers' or      classified within a heading
           kitchen cleavers,           other than that of the
           choppers and mincing        product. However, handles
           knives, paper knives);      of base metal may be used
           manicure or pedicure sets
           and instruments
           (including nail files)
                                            161
 ---pagebreak--- HS heading        Description of product       Working or processing carried out on non-originating
No.                                            materials that confers originating status
     (1)                       (2)                             (3)              or               (4)
8215              Spoons, forks, ladles,      Manufacture in which all
                  skimmers, cake-servers,     the materials used are
                  fish-knives, butterknives,  classified within a heading
                  sugar tongs and similar     other than that of the
                  kitchen or tableware        product. However, handles
                                              of base metal may be used
ex Chapter 83     Miscellaneous articles of   Manufacture in which all
                  base metal; except for:     the materials used are
                                              classified within a heading
                                              other than that of the
                                              product
ex 8302           Other mountings, fittings   Manufacture in which all
                  and similar articles        the materials used are
                  suitable for buildings, and classified within a heading
                  automatic door closers      other than that of the
                                              product. However, the other
                                              materials of heading No
                                              8302 may be used provided
                                              their value does not exceed
                                              20% of the ex-works price
                                              of the product
ex 8306           Statuettes and other        Manufacture in which all
                  ornaments, of base metal    the materials used are
                                              classified within a heading
                                              other than that of the
                                              product. However, the other
                                              materials of heading No
                                              8306 may be used provided
                                              their value does not exceed
                                              30% of the ex-works price
                                              of the product
ex Chapter 84     Nuclear reactors, boilers,  Manufacture in which:            Manufacture in which the
                  machinery and               - all the materials used are     value of all the materials
                  mechanical appliances;      classified within a heading      used does not exceed 30% of
                  parts thereof; except for:  other than that of the           the ex-works price of the
                                              product;                         product
                                              - the value of all the
                                               materials used does not
                                              exceed 40% of the ex-works
                                              price of the product
ex 8401           Nuclear fuel elements       Manufacture in which all         Manufacture in which the
                                              the materials used are           value of all the materials
                                              classified within a heading      used does not exceed 30% of
                                               other than that of the          the ex-works price of the
                                               product1                        product
  This rule shall apply until 31 December 1998.
                                                                16^K
 ---pagebreak--- HS heading  Description of product       Working or processing carried out on non-originating
No.                                      materials that confers originating status
     (1)                 (2)                             (3)               or               (4)
8402        Steam or other vapour       Manufacture in which:            Manufacture in which the
            generating boilers (other   - all the materials used are     value of all the materials
            than central heating hot    classified within a heading      used does not exceed 25% of
            water boilers capable also  other than that of the           the ex-works price of the
            of producing low pressure   product;                         product
            steam); super heated        - the value of all the
            water boilers               materials used does not
                                        exceed 40% of the ex-works
                                        price of the product
8403 and ex Central heating boilers     Manufacture in which all         Manufacture in which the
8404        other than those of         the materials used are           value of all the materials
            heading No 8402 and         classified within a heading      used does not exceed 40% of
            auxiliary plant for central other than heading No 8403       the ex-works price of the
            heating boilers             or 8404                          product
8406        Steam turbines and other    Manufacture in which the
            vapour turbines             value of all the materials
                                        used does not exceed 40% of
                                        the ex-works price of the
                                        product
8407        Spark-ignition              Manufacture in which the
            reciprocating or rotary     value of all the materials
            internal combustion         used does not exceed 40% of
            piston engines              the ex-works price of the
                                        product
8408        Compression-ignition        Manufacture in which the
            internal combustion         value of all the materials
            piston engines (diesel or   used does not exceed 40% of
            semi-diesel engines)        the ex-works price of the
                                        product
8409        Parts suitable for use      Manufacture in which the
            solely or principally with  value of all the materials
            the engines of heading      used does not exceed 40% of
            No 8407 or 8408             the ex-works price of the
                                        product
8411        Turbo-jets, turbo           Manufacture in which:            Manufacture in which the
            propellers and other gas    - all the materials used are     value of all the materials
            turbines                    classified within a heading      used does not exceed 25% of
                                        other than that of the           the ex-works price of the
                                        product;                         product
                                        - the value of all the
                                        materials used does not
                                        exceed 40% of the ex-works
                                        price of the product
8412        Other engines and motors    Manufacture in which the
                                        value of all the materials
                                        used does not exceed 40% of
                                        the ex-works price of the
                                        product
                                                         66
 ---pagebreak--- HS heading Description of product      Working or processing carried out on non-originating
No.                                    materials that confers originating status
     (1)                (2)                            (3)              or                (4)
ex 8413    Rotary positive            Manufacture in which:            Manufacture in which the
           displacement pumps         - all the materials used are     value of all the materials
                                      classified within a heading      used does not exceed 25%» of
                                      other than that of the           the ex-works price of the
                                      product;                         product
                                      - the value of all the
                                      materials used does not
                                      exceed 40% of the ex-works
                                      price of the product
ex 8414    Industrial fans, blowers   Manufacture in which:            Manufacture in which the
           and the like               - all the materials used are     value of all the materials
                                      classified within a heading      used does not exceed 25% of
                                      other than that of the           the ex-works price of the
                                      product;                         product
                                      - the value of all the
                                      materials used does not
                                      exceed 40% of the ex-works
                                      price of the product
8415       Air conditioning           Manufacture in which the
           machines, comprising a     value of all the materials
           motor-driven fan and       used does not exceed 40% of
           elements for changing the  the ex-works price of the
           temperature and            product
           humidity, including those
           machines in which the
           humidity cr.nnot be
           separately regulated
8418       Refrigerators, freezers    Manufacture in which:            Manufacture in which the
           and other refrigerating or - all the materials used are     value of all the materials
           freezing equipment,        classified within a heading      used does not exceed 25% of
           electric or other; heat    other than that of the           the ex-works price of the
           pumps other than air       product;                         product
           conditioning machines of   - the value of all the
           heading No 8415            materials used does not
                                      exceed 40% of the ex-works
                                      price of the product;
                                      - the value of all the non-
                                      originating materials used
                                      does not exceed the value of
                                      the originating materials
                                      used
                                                   167
 ---pagebreak--- HS heading   Description of product      Working or processing carried out on non-originating
No.                                      materials that confers originating status
     (1)                  (2)                            (3)              or                (4)
ex 8419      Machines for wood, paper   Manufacture:                     Manufacture in which the
             pulp and paperboard        - in which the value of all      value of all the materials
             industries                 the materials used does not      used does not exceed 30% of
                                        exceed 40% of the ex-works       the ex-works price of the
                                        price of the product;            product
                                        - where, within the above
                                        limit, the materials
                                        classified within the same
                                        heading as the product are
                                        only used up to a value of
                                        25% of the ex-works price
                                        of the product
8420         Calendering or other       Manufacture:                     Manufacture in which the
             rolling machines, other    - in which the value of all      value of all the materials
             than for metals or glass,  the materials used does not      used does not exceed 30% of
             and cylinders therefor     exceed 40% of the ex-works       the ex-works price of the
                                        price of the product;            product
                                        - where, within the above
                                        limit, the materials
                                        classified within the same
                                        heading as the product are
                                        only used up to a value of
                                        25% of the ex-works price
                                        of the product
8423         Weighing machinery         Manufacture in which:            Manufacture in which the
             (excluding balances of a   - all the materials used are     value of all the materials
             sensitivity of 5 eg or     classified within a heading      used does not exceed 25% of
             better), including weight  other than that of the           the ex-works price of the
             operated counting or       product;                         product
             checking machines;         - the value of all the
             weighing machine           materials used does not
             weights of all kinds       exceed 40% of the ex-works
                                        price of the product
8425 to 8428 Lifting, handling, loading Manufacture:                     Manufacture in which the
             or unloading machinery     - in which the value of all      value of all the materials
                                        the materials used does not      used does not exceed 30% of
                                        exceed 40% of the ex-works       the ex-works price of the
                                        price of the product;            product
                                        - where, within the above
                                        limit, the materials
                                        classified within heading No
                                        8431 are only used up to a
                                        value of 10% of the ex-
                                        works price of the product
8429         Self-propelled bulldozers,
             angledozers, graders,
             levellers, scrapers,
             mechanical shovels,
             excavators, shovel
             loaders, tamping
             machines and road
             rollers:
                                                      168
 ---pagebreak--- HS heading Description of product      Working or processing carried out on non-originating
No.                                    materials that confers originating status
     (1)                (2)                            (3)               or               (4)
             Road rollers             Manufacture in which the
                                      value of all the materials
                                      used does not exceed 40% of
                                      the ex-works price of the
                                      product
             Other                    Manufacture:                     Manufacture in which the
                                      - in which the value of all      value of all the materials
                                      the materials used does not      used does not exceed 30% of
                                      exceed 40% of the ex-works       the ex-works price of the
                                      price of the product;            product
                                      - where, within the above
                                      limit, the materials
                                      classified within heading No
                                      8431 are only used up to a
                                      value of 10% of the ex-
                                      works price of the product
8430       Other moving, grading,     Manufacture:                     Manufacture in which the
           levelling, scraping,       - in which the value of all      value of all the materials
           excavating, tamping,       the materials used does not      used does not exceed 30% of
           compacting, extracting or  exceed 40% of the ex-works       the ex-works price of the
           boring machinery, for      price of the product;            product
           earth, minerals or ores;   - where, within the above
           pile-drivers and pile-     limit, the value of the
           extractors; snow-ploughs   materials classified within
           and snow-blowers           heading No 8431 are only
                                      used up to a value of 10% of
                                      the ex-works price of the
                                      product
ex 8431    Parts suitable for use     Manufacture in which the
           solely or principally with value of all the materials
           road rollers               used does not exceed 40% of
                                      the ex-works price of the
                                      product
8439       Machinery for making       Manufacture:                      Manufacture in which the
           pulp of fibrous cellulosic  - in which the value of all     value of all the materials
           material or for making or   the materials used does not      used does not exceed 30% of
           finishing paper or          exceed 40% of the ex-works       the ex-works price of the
           paperboard                  price of the product;            product
                                       - where, within the above
                                       limit, the materials
                                       classified within the same
                                       heading as the product are
                                       only used up to a value of
                                       25% of the ex-works price
                                       of the product
                                                     169
 ---pagebreak--- HS heading   Description of product       Working or processing carried out on non-originating
No.                                       materials that confers originating status
      (1)                 (2)                             (3)              or                (4)
8441         Other machinery for        Manufacture:                      Manufacture in which the
             making up paper pulp,       - in which the value of all      value of all the materials
             paper or paperboard,        the materials used does not      used does not exceed 30% of
             including cutting          exceed 40% of the ex-works        the ex-works price of the
             machines of all kinds      price of the product;             product
                                        - where, within the above
                                         limit, the materials
                                        classified within the same
                                        heading as the product are
                                        only used up to a value of
                                        25% of the ex-works price
                                        of the product
8444 to 8447 Machines of these          Manufacture in which the
             headings for use in the    value of all the materials
             textile industry           used does not exceed 40% of
                                        the ex-works price of the
                                        product
ex 8448      Auxiliary machinery for    Manufacture in which the
             use with machines of       value of all the materials
             headings Nos 8444 and      used does not exceed 40% of
             8445                       the ex-works price of the
                                        product
8452         Sewing machines, other
             than book-sewing
             machines of heading No
             8440; furniture, bases and
             covers specially designed
             for sewing machines;
             sewing machine needles:
             - Sewing machines (lock    Manufacture:
             stitch only) with heads of - in which the value of all
             a weight not exceeding 16  the materials used does not
             kg without motor or 17     exceed 40% of the ex-works
             kg with motor              price of the product;
                                        - where the value of all the
                                        non-originating materials
                                        used in assembling the head-
                                        (without motor) does not
                                        exceed the value of the
                                        originating materials used;
                                        - the thread tension, crochet
                                        and zigzag mechanisms
                                        used are already originating
               Other                    Manufacture in which the
                                        value of all the materials
                                        used does not exceed 40% of
                                        the ex-works price of the
                                        product
                                                   ;.70
 ---pagebreak--- HS heading   Description of product      Working or processing carried out on non-originating
No.                                      materials that confers originating status
      (1)                 (2)                            (3)              or                (4)
8456 to      Machine-tools and          Manufacture in which the
8466         machines and their parts   value of all the materials
             and accessories of         used does not exceed 40% of
             headings Nos 8456 to       the ex-works price of the
             8466                       product
8469 to 8472 Office machines (for       Manufacture in which the
             example, typewriters,      value of all the materials
             calculating machines,      used does not exceed 40% of
             automatic data processing  the ex-works price of the
             machines, duplicating      product
             machines, stapling
             machines)
8480         Moulding boxes for metal   Manufacture in which the
             foundry; mould bases;      value of all the materials
             moulding patterns;         used does not exceed 50% of
             moulds for metal (other    the ex-works price of the
             than ingot moulds), metal  product
             carbides, glass, mineral
             materials, rubber or
             plastics
8482         Ball or roller bearings    Manufacture in which:            Manufacture in which the
                                        - all the materials used are     value of all the materials
                                        classified within a heading      used does not exceed 25% of
                                        other than that of the           the ex-works price of the
                                        product;                         product
                                        - the value of all the
                                        materials used does not
                                        exceed 40% of the ex-works
                                        price of the product
8484         Gaskets and similar joints Manufacture in which the
             of metal sheeting          value of all the materials
             combined with other        used does not exceed 40% of
             material or of two or      the ex-works price of the
             more layers of metal; sets product
             or assortments of gaskets
             and similar joints,
             dissimilar in composition,
             put up in pouches,
             envelopes or similar
             packings; mechanical
             seals
8485         Machinery parts, not       Manufacture in which the
             containing electrical      value of all the materials
             connectors, insulators,    used does not exceed 40% of
             coils, contacts or other   the ex-works price of the
             electrical features, not   product
             specified or included
             elsewhere in this Chapter
                                                   171
 ---pagebreak--- HS heading    Description of product        Working or processing carried out on non-originating
No.                                         materials that confers originating status
     (1)                   (2)                              (3)              or                (4)
ex Chapter 85 Electrical machinery and     Manufacture in which             Manufacture in which the
              equipment and parts          - all the materials used are     value of all the materials
              thereof; sound recorders     classified within a heading      used does not exceed 30% of
              and reproducers,             other than that of the           the ex-works price of the
              television image and         product;                         product
              sound recorders and          - the value of all the
              reproducers, and parts       materials used does not
              and accessories of such      exceed 40% of the ex-works
              articles; except for:        price of the product
8501          Electric motors and          Manufacture:                     Manufacture in which the
              generators (excluding        - in which the value of all      value of all the materials
              generating sets)             the materials used does not      used does not exceed 30% of
                                           exceed 40% of the ex-works       the ex-works price of the
                                           price of the product;            product
                                           - where, within the above
                                           limit, the materials
                                           classified within heading No
                                           8503 are only used up to a
                                           value of 10% of the ex-
                                           works price of the product
8502          Electric generating sets     Manufacture:                     Manufacture in which the
              and rotary converters        - in which the value of all      value of all the materials
                                           the materials used does not      used does not exceed 30% of
                                           exceed 40% of the ex-works '     the ex-works price of the
                                           price of the product;            product
                                           - where, within the above
                                           limit, the materials
                                           classified within heading No
                                           8501 or 8503, taken
                                           together, are only used up to
                                           a value of 10% of the ex-
                                           works price of the product
ex 8504       Power supply units for       Manufacture in which the
              automatic data-processing    value of all the materials
              machines                     used does not exceed 40% of
                                           the ex-works price of the
                                           product
ex 8518       Microphones and stands       Manufacture:                     Manufacture in which the
              therefor; loudspeakers,      - in which the value of all      value of all the materials
              whether or not mounted       the materials used does not      used does not exceed 25% of
               in their enclosures; audio- exceed 40% of the ex-works       the ex-works price of the
              frequency electric           price of the product;            product
              amplifiers; electric sound    - where the value of all the
              amplifier sets                non-originating materials
                                            used does not exceed the
                                           value of the originating
                                            materials used
                                                           172
 ---pagebreak--- HS heading Description of product       Working or processing carried out on non-originating
No.                                     materials that confers originating status
     (1)                (2)                             (3)              or                (4)
8519       Turntables (record-         Manufacture:                     Manufacture in which the
           decks), record-players,     - in which the value of all      value of all the materials
           cassette-players and        the materials used does not      used does not exceed 30% of
           other sound reproducing     exceed 40% of the ex-works       the ex-works price of the
           apparatus, not              price of the product;            product
           incorporating a sound       - where the value of all the
           recording device            non-originating materials
                                       used does not exceed the
                                       value of the originating
                                       materials used
8520       Magnetic tape recorders     Manufacture:                     Manufacture in which the
           and other sound             - in which the value of all      value of all the materials
           recording apparatus,        the materials used does not      used does not exceed 30% of
           whether or not              exceed 40% of the ex-works       the ex-works price of the
           incorporating a sound       price of the product;            product
           reproducing device          - where the value of all the
                                       non-originating materials
                                       used does not exceed the
                                       value of the originating
                                       materials used
8521       Video recording or          Manufacture:                     Manufacture in which the
           reproducing apparatus,      - in which the value of all      value of all the materials
           whether or not              the materials used does not      used does not exceed 30% of
           incorporating a video       exceed 40% of the ex-works       the ex-works price of the
           tuner                       price of the product;            product
                                       - where the value of all the
                                       non-originating materials
                                       used does not exceed the
                                       value of the originating
                                       materials used
8522       Parts and accessories       Manufacture in which the
           suitable for use solely or  value of all the materials
           principally with the        used does not exceed 40% of
           apparatus of heading Nos    the ex-works price of the
           8519 to 8521                product
8523       Prepared unrecorded         Manufacture in which the
            media for sound            value of all the materials
            recording or similar        used does not exceed 40% of
            recording of other          the ex-works price of the
           phenomena, other than        product
            products of Chapter 37
8524        Records, tapes and other
            recorded media for sound
            or other similarly
            recorded phenomena,
            including matrices and
            masters for the
            production of records, but
            excluding products of
            Chapter 37:
                                                         173
 ---pagebreak--- HS heading Description of product      Working or processing carried out on non-origimi-inj
No.                                    materials that confers originating status
     (1)                (2)                            (3)              or                (4)
           - Matrices and masters     Manufacture in which the
           for the production of      value of all the materials
           records                    used does not exceed 40% of
                                      the ex-works price of the
                                      product
              Other                   Manufacture:                     Manufacture in which the
                                      - in which the value of all      value of all the materials
                                      the materials used does not      used does not exceed 30% of
                                      exceed 40% of the ex-works       the ex-works price of the
                                      price of the product;            product
                                      - where, within the above
                                      limit, the materials
                                      classified within heading No
                                      8523 are only used up to a
                                      value of 10% of the ex-
                                      works price of the product
8525       Transmission apparatus     Manufacture:                     Manufacture in which the
           for radio-telephony,       - in which the value of all      value*of all the materials
           radio-telegraphy, radio-   the materials used does not      used does not exceed 25% of
           broadcasting or            exceed 40% of the ex-works       the ex-works price of the
           television, whether or not price of the product;            product
           incorporating reception    - where the value of all the
           apparatus or sound         non-originating materials
           recording or reproducing   used does not exceed the
           apparatus; television      value of the originating
           cameras; still image video materials used
           cameras and other video
           camera recorders
8526       Radar apparatus, radio     Manufacture:                     Manufacture in which the
           navigational aid           - in which the value of all      value of all the materials
           apparatus and radio        the materials used does not      used does not exceed 25% of
           remote control apparatus   exceed 40% of the ex-works       the ex-works price of the
                                      price of the product;            product
                                      - where the value of all the
                                      non-originating materials
                                      used does not exceed the
                                      value of the originating
                                      materials used
8527       Reception apparatus for    Manufacture:                     Manufacture in which the
           radio-telephony, radio-    - in which the value of all      value of all the materials
           telegraphy or radio        the materials used does not      used does not exceed 25% of
           broadcasting, whether or   exceed 40% of the ex-works       the ex-works price of the
           not combined, in the       price of the product;            product
           same housing, with sound   - where the value of all the
           recording or reproducing   non-originating materials
           apparatus or a clock       used does not exceed the
                                      value of the originating
                                      materials used
                                                         74
 ---pagebreak--- HS heading Description of product       Working or processing carried out on non-originating
No.                                     materials that confers originating status
      (1)                (2)                            (3)              or                (4)
8528       Reception apparatus for     Manufacture:                     Manufacture in which the
           television, whether or not  - in which the value of all      value of all the materials
           incorporating radio         the materials used does not      used does not exceed 25% of
           broadcast receivers or      exceed 40% of the ex-works       the ex-works price of the
           sound or video recording    price of the product;            product
           or reproducing apparatus;   - where the value of all the
           video monitors and video    non-originating materials
           projectors                  used does not exceed the
                                       value of the originating
                                       materials used
8529       Parts suitable for use
           solely or principally with
           the apparatus of heading
           Nos 8525 to 8528:
           - Suitable for use solely   Manufacture in which the
           or principally with video   value of all the materials
           recording or reproducing    used does not exceed 40% of
           apparatus                   the ex-works price of the
                                       product
           - Other                     Manufacture:                     Manufacture in which the
                                       - in which the value of all      value of all the materials
                                       the materials used does not      used does not exceed 25% of
                                       exceed 40% of the ex-works       the ex-works price of the
                                       price of the product;            product
                                       - where the value of all the
                                       non-originating materials
                                       used does not exceed the
                                       value of the originating
                                       materials used
8535 and   Electrical apparatus for    Manufacture:                     Manufacture in which the
853.6      switching or protecting     - in which the value of all      value of all the materials
           electrical circuits, or for the materials used does not      used does not exceed 30% of
           making connections to or    exceed 40% of the ex-works       the ex-works price of the
            in electrical circuits     price of the product;            product
                                        - where, within the above
                                        limit, the materials
                                       classified within heading No
                                        8538 are only used up to a
                                       value of 10% of the ex-
                                        works price of the product
                                                        175
 ---pagebreak--- HS heading Description of product      Working or processing carried out on non-originating
No.                                    materials that confers originating status
     (1)                 (2)                           (3)              or                (4)
8537       Boards, panels, consoles,  Manufacture:                     Manufacture in which the
           desks, cabinets and other  - in which the value of all      value of all the materials
           bases, equipped with two   the materials used does not      used does not exceed 30%» of
           or more apparatus of       exceed 40% of the ex-works       the ex-works price of the
           heading No 8535 or         price of the product;            product
           8536, for electric control - where, within the above
           or the distribution of     limit, the materials
           electricity, including     classified within heading No
           those incorporating        8538 are only used up to a
           instruments or apparatus   value of 10% of the ex-
           of Chapter 90, and         works price of the product
           numerical control
           apparatus, other than
           switching apparatus of
           heading No 8517
ex 8541    Diodes, transistors and    Manufacture in which:            Manufacture in which the
           similar semi-conductor     - all the materials used arc     value of all the materials
           devices, except wafers not classified within a heading      used does not exceed 25% of
           yet cut into chips         other than that of the           the ex-works price of the
                                      product;                         product
                                      - the value of all the
                                      materials used does not
                                      exceed 40% of ihe ex-works
                                      price of the product
8542       Electronic integrated      Manufacture:                     Manufacture in which the
           circuits and               - in which the value of all      value of all the materials
           microassemblies            the materials used does not      used does not exceed 25% of
                                      exceed 40% of the ex-works       the ex-works price of the
                                      price of the product;            product
                                      - where, within the above
                                      limit, the materials
                                      classified within heading No
                                      8541 or 8542, taken
                                      together, are only used up to
                                      a value of 10% of the ex-
                                      works price of the product
8544       Insulated (including       Manufacture in which the
           enamelled or anodised)     value of all the materials
           wire, cable (including     used does not exceed 40% of
           coaxial cable) and other   the ex-works price of the
           insulated electric         product
           conductors, whether or
           not fitted with
           connectors; optical fibre
           cables, made up of
           individually sheathed
           fibres, whether or not
           assembled with electric
           conductors or fitted with
           connectors
                                                         176
 ---pagebreak--- HS heading    Description of product      Working or processing carried out on non-originating
No.                                       materials that confers originating status
     (1)                   (2)                            (3)              or            (4)
8545           Carbon electrodes, carbon Manufacture in which the
              brushes, lamp carbons,     value of all the materials
              battery carbons and other  used does not exceed 40% of
              articles of graphite or    the ex-works price of the
              other carbon, with or      product
              without metal, of a kind
              used for electrical
              purposes
8546          Electrical insulators of   Manufacture in which the
              any material               value of all the materials
                                         used does not exceed 40% of
                                         the ex-works price of the
                                         product
8547          Insulating fittings for    Manufacture in which the
              electrical machines,       value of all the materials
              appliances or equipment,   used does not exceed 40% of
              being fittings wholly of   the ex-works price of the
              insulating materials apart product
              from any minor
              components of metal (for
              example, threaded
              sockets) incorporated
              during moulding solely
              for purposes of assembly •
              other than insulators of
              heading No 8546;
              electrical conduit tubing
              and joints therefor, of
              base metal lined with
              insulating material
8548          Waste and scrap of         Manufacture in which the
              primary cells, primary     value of all the materials
              batteries and electric     used does not exceed 40% of
              accumulators; spent        the ex-works price of the
              primary cells, spent       product
              primary batteries and
              spent electric
              accumulators; electrical
              parts of machinery or
              apparatus, not specified
              or included elsewhere in
              this Chapter
ex Chapter 86 Railway or tramway         Manufacture in which the
              locomotives, rolling stock value of all the materials
              and parts thereof; railway used does not exceed 40% of
              or tramway track fixtures  the ex-works price of the
              and fittings and parts     product
              thereof; mechanical
              (including electro-
              mechanical) traffic
              signaling equipment of
              all kinds; except for:
                                                                 177
 ---pagebreak--- HS heading    Description of product       Working or processing carried out on non-originating
No.                                        materials that confers originating status
     (!)                   (2)                             (3)              or                 (4)
8608          Railway or tramway track    Manufacture in which:            Manufacture in which the
              fixtures and fittings;      - all the materials used are     value of all the materials
              mechanical (including       classified within a heading      used does not exceed 30% of
              electro-mechanical)         other than that of the           the ex-works price of the
              signalling, safety or       product;                         product
              traffic control equipment   - the value of all the
              for railways, tramways,     materials used does not
              roads, inland waterways,    exceed 40% of the ex-works
              parking facilities, port    price of the product
              installations or airfields;
              parts of the foregoing
ex Chapter 87 Vehicles other than         Manufacture in which the
              railway or tramway          value of all the materials
              rolling-stock, and parts    used does not exceed 40% of
              and accessories thereof;    the ex-works price of the
              except for:                 product
8709          Works trucks, self-         Manufacture in which:            Manufacture in which the
              propelled, not fitted with  - all the materials used are     value *of all the materials
              lifting or handling         classified within a heading      used does not exceed 30% of
              equipment, of the type      other than that of the           the ex-works price of the
              used in factories,          product;                         product
              warehouses, dock areas or   - the value of all the
              airports for short distance materials used does not
              transport of goods;         exceed 40%» of the ex-works
              tractors of the type used   price of the product
              on railway station
              platforms; parts of the
              foregoing vehicles
8710          Tanks and other             Manufacture in which:            Manufacture in which the
              armoured fighting           - all the materials used are     value of all the materials
              vehicles, motorized,        classified within a heading      used does not exceed 30% of
              whether or not fitted with  other than that of the           the ex-works price of the
              weapons, and parts of       product;                         product
              such vehicles               - the value of all the
                                          materials used does not
                                          exceed 40% of the ex-works
                                          price of the product
8711          Motorcycles (including
              mopeds) and cycles fitted
              with an auxiliary motor,
              with or without side-cars;
              side-cars:
              - With reciprocating
              internal combustion
              piston engine of a
              cylinder capacity:
                                                     178
 ---pagebreak--- HS heading Description of product     Working or processing carried out on non-originating
No.                                   materials that confers originating status
                       (2)                             (3)
     (1)                                                                or
                                                                                         in
             Not exceeding 50 cc     Manufacture:                     Manufacture in which the
                                     - in which the value of all      value of all the materials
                                     the materials used does not      used does not exceed 20% of
                                     exceed 40% of the ex- works      the ex-works price of the
                                     price of the product;            product
                                     - where the value of all the
                                     non-originating materials
                                     used does not exceed the
                                     value of the originating
                                     materials used
           ~ Exceeding 50 cc         Manufacture:                     Manufacture in which the
                                     - in which the value of all      value of all the materials
                                     the materials used does not      used does not exceed 25% of
                                     exceed 40% of the ex-works       the ex-works price of the
                                     price of the product;            product
                                     - where the value of all the
                                     non-originating materials
                                     used does not exceed the
                                     value of the originating
                                     materials used
             Other                   Manufacture:                     Manufacture in which the
                                      - in which the value of all     value of all the materials
                                     the materials used does not      used does not exceed 30% of
                                    , exceed 40% of the ex-works      the ex-works price of the
                                      price of the product;           product
                                      - where the value of all the
                                      non-originating materials
                                      used does not exceed the
                                      value of the originating
                                      materials used
ex 8712    Bicycles without ball      Manufacture from materials       Manufacture in which the
           bearings                   not classified in heading No     value of all the materials
                                      8714                             used does not exceed 30% of
                                                                       the ex-works price of the
                                                                       product
8715       Baby carriages and parts   Manufacture in which:            Manufacture in which the
           thereof                    - all the materials used are     value of all the materials
                                      classified within a heading      used does not exceed 30% of
                                      other than that of the           the ex-works price of the
                                      product;                         product
                                      - the value of all the
                                       materials used does not
                                      exceed 40% of the ex-works
                                       price of the product
                                                        179
 ---pagebreak--- HS heading    Description of product       Working or processing carried out on non-originating
No.                                        materials that confers originating status
     (1)                   (2)                             (3)               or               (4)
8716          Trailers and semi-trailers; Manufacture in which:            Manufacture in which the
              other vehicles, not         - all the materials used are     value of all the materials
              mechanically propelled;     classified within a heading      used does not exceed 30% of
              parts thereof               other than that of the           the ex-works price of the
                                          product;                         product
                                          - the value of all the
                                          materials used does not
                                          exceed 40% of the ex-works
                                          price of the product
ex Chapter 88 Aircraft, spacecraft, and   Manufacture in which all         Manufacture in which the
              parts thereof; except for:  the materials used are           value of all the materials
                                          classified within a heading      used does not exceed 40% of
                                          other than that of the           the ex-works price of the
                                          product                          product
ex 8804       Rotochutes                  Manufacture from materials       Manufacture in which the
                                          of any heading including         value of all the materials
                                          other materials of heading       used does not exceed 40% of
                                          No 8804                          the ex*-works price of the
                                                                           product
8805          Aircraft launching gear;    Manufacture in which all         Manufacture in which the
              deck-arrestor or similar    the materials used are           value of all the materials
              gear; ground flying         classified within a heading      used does not exceed 30% of
              trainers; parts of the      other than that of the           the ex-works price of the
              foregoing articles          product                          product
Chapter 89    Ships, boats and floating   Manufacture in which all         Manufacture in which the
              structures                  the materials used are           value of all the materials
                                          classified within a heading      used does not exceed 40% of
                                          other than that of the           the ex-works price of the
                                          product. However, hulls of       product
                                          heading No 8906 may not be
                                          used
ex Chapter 90 Optical, photographic,      Manufacture in which:            Manufacture in which the
              cinematographic,            - all the materials used are     value of all the materials
              measuring, checking,        classified within a heading      used does not exceed 30% of
              precision, medical or       other than that of the           the ex-works price of the
              surgical instruments and    product;                         product
              apparatus; parts and        - the value of all the
              accessories thereof;        materials used does not
              except for:                 exceed 40% of the ex-works
                                          price of the product
                                               ISO
 ---pagebreak--- HS heading Description of product      Working or processing carried out on non-originating
No.                                    materials that confers originating status
     (1)                (2)                            (3)              or               (4)
9001       Optical fibres and optical Manufacture in which the
           fibre bundles; optical     value of all the materials
           fibre cables other than    used does not exceed 40% of
           those of heading No        the ex-works price of the
           8544; sheets and plates of product
           polarizing material,
           lenses (including contact
           lenses), prisms, mirrors
           and other optical
           elements, of any material,
           unmounted, other than
           such elements of glass not
           optically worked
9002       Lenses, prisms, mirrors    Manufacture in which the
           and other optical          value of all the materials
           elements, of any           used does not exceed 40% of
           materials, mounted, being  the ex-works price of the
           parts of or fittings for   product
           instruments or apparatus,
           other than such elements
           of glass not optically
           worked
9004       Spectacles, goggles and    Manufacture in which the
           the like, corrective,      value of all the materials
           protective or other        used does not exceed 40%» of
                                      the ex-works price of the
                                      product
ex 9005    Binoculars, monoculars,    Manufacture in which:            Manufacture in which the
           other optical telescopes,  - all the materials used are     value of all the materials
           and mountings therefor,    classified within a heading      used does not exceed 30%» of
           except for astronomical    other than that of the           the ex-works price of the
           refracting telescopes and  product;                         product
           mountings therefor         - the value of all the
                                      materials used does not
                                      exceed 40% of the ex-works
                                      price of the product;
                                      - the value of all the non-
                                      originating materials used
                                      does not exceed the value of
                                      the originating materials
                                      used
                                          18
 ---pagebreak--- HS heading Description of product    Working or processing carried out on non-originating
No.                                  materials that confers originating status
      (1)               (2)                          (3)               or               (4)
ex 9006    Photographic (other than Manufacture in which:            Manufacture in which the
           cinematographic)         - all the materials used are     value of all the materials
           cameras; photographic    classified within a heading      used does not exceed 30%» of
           flashlight apparatus and other than that of the           the ex-works price of the
           flashbulbs other than    product;                         product
           electrically ignited     - the value of all the
           flashbulbs               materials used does not
                                    exceed 40%» of the ex-works
                                    price of the product;
                                    - the value of all the non-
                                    originating materials used
                                    does not exceed the value of
                                    the originating materials
                                    used
9007       Cinematographic cameras  Manufacture in which:            Manufacture in which the
           and projectors, whether  - all the materials used are     value of all the materials
           or not incorporating     classified within a heading      used does not exceed 30% of
           sound recording or       other than that of the           the ex-works price of the
           reproducing apparatus    product;                         product
                                    - the value of all the
                                    materials used does not
                                    exceed 40% of the ex-works
                                    price of the product;
                                    - the value of all the non-
                                    originating materials used
                                    does not exceed the value of
                                    the originating materials
                                    used
901        Compound optical         Manufacture in which:            Manufacture in which the
           microscopes, including   - all the materials used are     value of all the materials
           those for                classified within a heading      used does not exceed 30% of
           photomicrography,        other than that of the           the ex-works price of the
           cinephotomicrography or  product;                         product
           microprojection          - the value of all the
                                    materials used does not
                                    exceed 40% of the ex-works
                                    price of the product;
                                    - the value of all the non-
                                    originating materials used
                                    does not exceed the value of
                                    the originating materials
                                    used
ex 9014    Other navigational       Manufacture in which the
           instruments and          value of all the materials
           appliances               used does not exceed 40% of
                                    the ex-works price of the
                                    product
                                                O il
 ---pagebreak--- HS heading Description of product      Working or processing carried out on non-originating
No.                                    materials that confers originating status
     (1)                (2)                            (3)              or                (4)
9015       Surveying (including       Manufacture in which the
           photogrammetrical          value of all the materials
           surveying), hydrographie,  used does not exceed 40% of
           océanographie,             the ex-works price of the
           hydrological,              product
           meteorological or
           geophysical instruments
           and appliances, excluding
           compasses; rangefinders
9016       Balances of a sensitivity  Manufacture in which the
           of 5 eg or better, with or value of all the materials
           without weights            used does not exceed 40% of
                                      the ex-works price of the
                                      product
9017       Drawing, marking-out or    Manufacture in which the
           mathematical calculating   value of all the materials
           instruments (for example,  used does not exceed 40% of
           drafting machines,         the ex-works price of the
           pantographs, protractors,  product
           drawing sets, slide rules,
           disc calculators);
           instruments for
           measuring length, for use
           in the hand (for example,
           measuring rods and tapes,
           micrometers, callipers),
           not specified or included
           elsewhere in this Chapter
9018       Instruments and
           appliances used in
           medical, surgical, dental
           or veterinary sciences,
           including scintigraphic
           apparatus, other electro-
           medical apparatus and
           sight-testing instruments:
           - Dentists' chairs         Manufacture from materials       Manufacture in which the
           incorporating dental       of any heading, including        value of all the materials
           appliances or dentists'    other materials of heading       used does not exceed 40% of
           spittoons                  No 9018                          the ex-works price of the
                                                                       product
           - Other                    Manufacture in which:            Manufacture in which the
                                      - all the materials used are     value of all the materials
                                      classified within a heading      used does not exceed 25% of
                                      other than that of the           the ex-works price of the
                                      product;                         product
                                      - the value of all the
                                       materials used does not
                                      exceed 40% of the ex-works
                                      price of the product
                                             183
 ---pagebreak--- HS heading  Description of product      Working or processing carried out on non-originating
No.                                     materials that confers originating status
     (1)                 (2)                            (3)               or               (4)
9019        Mechano-therapy            Manufacture in which:            Manufacture in which the
            appliances; massage        - all the materials used are     value of all the materials
            apparatus; psychological   classified within a heading      used does not exceed 25%» of
            aptitude-testing           other than that of the           the ex-works price of the
            apparatus; ozone therapy,  product;                         product
            oxygen therapy, aerosol    - the value of all the
            therapy, artificial        materials used does not
            respiration or other       exceed 40% of the ex-works
            therapeutic respiration    price of the product
            apparatus
9020        Other breathing           Manufacture in which:             Manufacture in which the
           appliances and gas          - all the materials used are     value of all the materials
            masks, excluding          classified within a heading       used does not exceed 25% of
           protective masks having    other than that of the            the ex-works price of the
            neither mechanical parts  product;                          product
           nor replaceable filters    - the value of all the
                                      materials used does not
                                      exceed 40% of the ex-works
                                      price of the product
9024       Machines and appliances    Manufacture in which the
           for testing the hardness,  value of all the materials
           strength, compressibility, used does not exceed 40% of
           elasticity or other        the ex-works price of the
           mechanical properties of   product
           materials (for example,
           metals, wood, textiles,
           paper, plastics)
9025       Hydrometers and similar    Manufacture in which the
           floating instruments,      value of all the materials
           thermometers,              used does not exceed 40% of
           pyrometers, barometers,    the ex-works price of the
           hygrometers and            product
           psychrometers, recording
           or not, and any
           combination of these
           instruments
9026       Instruments and            Manufacture in which the
           apparatus for measuring    value of all the materials
           or checking the flow,      used does not exceed 40% of
           level, pressure or other   the ex-works price of the
           variables of liquids or    product
           gases (for example, flow
           meters, level gauges,
           manometers, heat
           meters), excluding
           instruments and
           apparatus of heading No
           9014, 9015, 9028 or 9032
                                                      18 4
 ---pagebreak--- HS heading Description of product      Working or processing carried out on non-originating
No.                                    materials that confers originating status
     (1)                (2)                            (3)              or                (4)
9027       Instruments and            Manufacture in which the
           apparatus for physical or  value of all the materials
           chemical analysis (for     used does not exceed 40% of
           example, polarimeters,     the ex-works price of the
           refractometers,            product
           spectrometers, gas or
           smoke analysis
           apparatus); instruments
           and apparatus for
           measuring or checking
           viscosity, porosity,
           expansion, surface
           tension or the like;
           instruments and
           apparatus for measuring
           or checking quantities of
           heat, sound or light
           (including exposure
           meters); microtomes
9028       Gas, liquid or electricity
           supply or production
           meters, including
           calibrating meters
           therefor:
              Parts and accessories   Manufacture in which the
                                      value of all the materials
                                      used does not exceed 40% of
                                      the ex-works price of the
                                      product
              Other                   Manufacture:                     Manufacture in which the
                                      - in which the value of all      value of all the materials
                                      the materials used does not      used does not exceed 30% of
                                      exceed 40% of the ex-works       the ex-works price of the
                                      price of the product;            product
                                      - where the value of all the
                                      non-originating materials
                                      used does not exceed the
                                      value of the originating
                                      materials used
9029       Revolution counters,       Manufacture in which the
           production counters,       value of all the materials
           taximeters, milometers,    used does not exceed 40% of
           pedometers and the like;   the ex-works price of the
           speed indicators and       product
           tachometers, other than
           those of heading Nos
           9014 or 9015;
           stroboscopes
                                                     5
 ---pagebreak--- HS heading    Description of product       Working or processing carried out on non-originating
No.                                        materials that confers originating status
     (1)                   (2)                             (3)               or               (4)
9030          Oscilloscopes, spectrum    Manufacture in which the
              analysers and other        value of all the materials
              instruments and             used does not exceed 40%» of
              apparatus for measuring     the ex-works price of the
              or checking electrical      product
              quantities, excluding
              meters of heading No
              9028; instruments and
              apparatus for measuring
              or detecting alpha, beta,
              gamma, X-ray, cosmic or
              other ionizing radiations
9031          Measuring or checking      Manufacture in which the
              instruments, appliances    value of all the materials
              and machines, not          used does not exceed 40% of
              specified or included      the ex-works price of the
              elsewhere in this Chapter; product
              profile projectors
9032          Automatic regulating or    Manufacture in which the
              controlling instruments    value of all the materials
              and apparatus              used does not exceed 40% of
                                         the ex-works price of the
                                         product
9033          Parts and accessories (not Manufacture in which the
              specified or included      value of all the materials
              elsewhere in this          used does not exceed 40% of
              Chapter) for machines,     the ex-works price of the
              appliances, instruments    product
              or apparatus of Chapter
              90
ex Chapter 91 Clocks and watches and     Manufacture in which the
              parts thereof; except for: value of all the materials
                                         used does not exceed 40% of
                                         the ex-works price of the
                                         product
9105          Other clocks               Manufacture:                      Manufacture in which the
                                         - in which the value of all       value of all the materials
                                         the materials used does not       used does not exceed 30% of
                                         exceed 40% of the ex-works        the ex-works price of the
                                         price of the product;             product
                                         - where the value of all the
                                         non-originating materials
                                         used does not exceed the
                                         value of the originating
                                         materials used
                                                          1£fS
 ---pagebreak--- HS heading Description of product      Working or processing carried out on non-originating
No.                                    materials that confers originating status
     (1)                (2)                            (3)              or                (4)
9109       Clock movements,           Manufacture:                     Manufacture in which the
           complete and assembled     - in which the value of all      value of all the materials
                                      the materials used does not      used does not exceed 30% of
                                      exceed 40% of the ex-works       the ex-works price of the
                                      price of the product;            product
                                      - where the value of all the
                                      non-originating materials
                                      used does not exceed the
                                      value of the originating
                                      materials used
9110       Complete watch or clock    Manufacture:                     Manufacture in which the
           movements, unassembled     - in which the value of all      value of all the materials
           or partly assembled        the materials used does not      used does not exceed 30% of
           (movement sets);           exceed 40% of the ex-works       the ex-works price of the
           incomplete watch or        price of the product;            product
           clock movements,           - where, within the above
           assembled; rough watch     limit, the materials
           or clock movements         classified within heading No
                                      9114 are only used up to a
                                      value of 10% of the ex-
                                      works price of the product
9111       Watch cases and parts      Manufacture in which:            Manufacture in which the
           thereof                    - all the materials used are     value of all the materials
                                      classified within a heading      used does not exceed 30% of
                                      other than that of the           the ex-works price of the
                                      product;                         product
                                      - the value of all the
                                      materials used does not
                                      exceed 40% of the ex-works
                                      price of the product
9112       Clock cases and cases of a Manufacture in which:            Manufacture in which the
           similar type for other     - all the materials used are     value of all the materials
           goods of this Chapter,     classified within a heading      used does not exceed 30% of
           and parts thereof          other than that of the           the ex-works price of the
                                      product;                         product
                                      - the value of all the
                                      materials used does not
                                      exceed 40%» of the ex-works
                                      price of the product
9113       Watch straps, watch
           bands and watch
           bracelets, and parts
           thereof:
           - Of base metal, whether   Manufacture in which the
           or not plated, or of clad  value of all the materials
           precious metal              used does not exceed 40% of
                                       the ex-works price of the
                                       product
                                                87
                                                O
 ---pagebreak--- HS heading    Description of product       Working or processing carried out on non-originating
No.                                        materials that confers originating status
      (1)                   (2)                            (3)               or               (4)
                 Other                    Manufacture in which the
                                          value of all the materials
                                          used does not exceed 50% of
                                          the ex-works price of the
                                          product
Chapter 92    Musical instruments;        Manufacture in which the
              parts and accessories of    value of all the materials
              such articles               used does not exceed 40% of
                                          the ex-works price of the
                                          product
Chapter 93    Arms and ammunition;        Manufacture in which the
              parts and accessories       value of all the materials
              thereof                     used does not exceed 50%» of
                                          the ex-works price of the
                                          product
ex Chapter 94 Furniture; bedding,         Manufacture in which all         Manufacture in which the
              mattresses, mattress        the materials used are           value of all the materials
              supports, cushions and      classified within a heading      used does not exceed 40% of
              similar stuffed             other than that of the           the ex works price of the
              furnishings; lamps and      product                          product
              lighting fittings, not
              elsewhere specified or
              included; illuminated
              signs, illuminated
              nameplates and the like;
              prefabricated buildings;
              except for:
ex 9401 and   Base metal furniture,       Manufacture in which all         Manufacture in which the
ex 9403       incorporating unstuffed     the materials used are           value of all the materials
              cotton cloth of a weight of classified in a heading other    used does not exceed 40% of
              300 g/m2 or less            than that of the product         the ex-works price of the
                                          or                               product
                                          Manufacture from cotton
                                          cloth already made up in a
                                          form ready for use of
                                          heading No 9401 or 9403,
                                          provided:
                                          - its value does not exceed
                                          25% of the ex-works price
                                          of the product;
                                          - all the other materials
                                          used are already originating
                                          and are classified in a
                                          heading other than heading
                                          No 9401 or 9403
                                                       !88
 ---pagebreak--- HS heading    Description of product      Working or processing carried out on non-originating
No.                                       materials that confers originating status
     (1)                   (2)                            (3)              or            (4)
9405          Lamps and lighting         Manufacture in which the
              fittings including         value of all the materials
              searchlights and           used does not exceed 50%» of
              spotlights and parts       the ex-works price of the
              thereof, not elsewhere     product
              specified or included;
              illuminated signs,
              illuminated name-plates
              and the like, having a
              permanently fixed light
              source, and parts thereof
              not elsewhere specified or
              included
9406          Prefabricated buildings    Manufacture in which the
                                         value of all the materials
                                         used does not exceed 50% of
                                         the ex-works price of the
                                         product
ex Chapter 95 Toys, games and sports     Manufacture in which all
              requisites; parts and      the materials used are
              accessories thereof;       classified within a heading
              except for:                other than that of the
                                         product
9503          Other toys; reduced-size   Manufacture in which:
              ("scale") models and       - all the materials used are
              similar recreational       classified within a heading
              models, working or not;    other than that of the
              puzzles of all kinds       product;
                                         - the value of all the
                                         materials used does not
                                         exceed 50% of the ex-works
                                         price of the product
ex 9506        Golf clubs and parts      Manufacture in which all
               thereof                   the materials used are
                                         classified within a heading
                                         other than that of the
                                         product. However, roughly
                                          shaped blocks for making
                                          golf club heads may be used
ex Chapter 96  Miscellaneous              Manufacture in which all
               manufactured articles;     the materials used are
               except for:                classified within a heading
                                          other than that of the
                                          product
ex 9601 and    Articles of animal,        Manufacture from "worked"
ex 9602        vegetable or mineral       carving materials of the
               carving materials          same heading
                                                    189
 ---pagebreak--- HS heading  Description of product      Working or processing carried out on non-origir?atJng
No.                                     materials that confers originating status
      (1)                (2)                             (3)             or              (4)
ex 9603     Brooms and brushes         Manufacture in which the
            (except for besoms and     value of all the materials
            the like and brushes made  used does not exceed 50% of
           from marten or squirrel     the ex-works price of the
           hair), hand-operated        product
            mechanical floor
           sweepers, not motorized,
           paint pads and rollers,
           squeegees and mops
9605       Travel sets for personal    Each item in the set must
           toilet, sewing or shoe or   satisfy the rule, which would
           clothes cleaning            apply to it if it were not
                                       included in the set.
                                       However, non-originating
                                       articles may be
                                       incorporated, provided their
                                       total value does not exceed
                                        15% of the ex-works price
                                       of the set
9606       Buttons, press-fasteners,   Manufacture in which:
           snap-fasteners anp! press-  - all the materials used are
           studs, button moulds and    classified within a heading
           other parts of these        other than that of the
           articles; button blanks     product;
                                       - the value of all the
                                       materials used does not
                                       exceed 50% of the ex-works
                                       price of the product
9612       Typewriter or similar       Manufacture in which:
           ribbons, inked or           - all the materials used are
           otherwise prepared for      classified within a heading
           giving impressions,         other than that of the
           whether or not on spools    product;
           or in cartridges; ink-pads, - the value of all the
           whether or not inked,       materials used does not
           with or without boxes       exceed 50%» of the ex-works
                                       price of the product
ex 9613    Lighters with piezo-        Manufacture in which the
           igniter                     value of all the materials of
                                       heading No 9613 used does
                                       not exceed 30% of the ex-
                                       works price of the product
ex 9614    Smoking pipes and pipe      Manufacture from roughly
           bowls                       shaped blocks
Chapter 97 Works of art, collectors'   Manufacture in which all
           pieces and antiques         the materials used are
                                       classified within a heading
                                       other than that of the
                                       product
                                                    30
 ---pagebreak---                                           ANNEX m
   Movement certificate EUR. 1 and application for a movement certificate EUR. 1
                                      Printing instructions
1.      Each form shall measure 210 x 297 mm; a tolerance of up to minus 5 mm or plus 8
mm in the length may be allowed. The paper used must be white, sized for writing, not
containing mechanical pulp and weighing not less than 25 g/m2. It shall have a printed
green guilloche pattern background making any falsification by mechanical or chemical
means apparent to the eye.
2.      The competent authorities of the Member States of the Community and of the
Faroe Islands 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.
                                                 191
 ---pagebreak---                                                               MOVEMENT CERTIFICATE
1 . E x p o r t e r (Nome, fun address, country)
                                                                                   EUR. 1                           No A        000.000
                                                                                            S M n o t M o w r i w l before completing this form
                                                                           2. Certificate used in preferential trade between
3 , C o n s i g n e e (N«me. fU« address, country) (Opttooel)
                                                                                                                       and
                                                                                       (Insert appropriate countries, groups of countries or territories)
                                                                           4. Country, group of countries                 5. Country, group of countries
                                                                              or territory in which the                       or territory of destination
                                                                              products are considered as
                                                                              originating
6. Transport details (Optional)                                            7. Remarks
8. Item number; Marks and numbers; Number and kind of packages ('); Description of goods                                9. Gross                10. Invoices
                                                                                                                           mass (kg)                   (Optional)
                                                                                                                           or other
                                                                                                                           measure
                                                                                                                           (litres,
                                                                                                                           m', etc.)
11. CUSTOMS ENDORSEMENT                                                                          12. DECLARATION BY THE EXPORTER
     Declaration certified                                                                           I, the undersigned, declare that the goods
     Export document (')                                                                             described above meet the conditions required
                                                                                                     for the issue of this certificate.
     Form                                      No
     Customs office
     issuing country or territory
                                                                     Stamp
                                                                                                      Place and date
     Date
                                (Signature)
                                                                                     192
 ---pagebreak--- 13. REQUEST FOR VERIFICATION, t o :                                14. RESULT OF VERIFICATION,.
                                                                   Verification carried out shows that this certificate (')
                                                                    |—j    was issued by the customs office indicated and that
                                                                    L J
                                                                      -    the information contained therein is accurate.
                                                                   r~"i    does 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)
                                                                   (') Insert X in the appropriate box.
                                                               NOTES
 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 certifi-
 cate and endorsed by the customs authorities of the issuing country or territory.
 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.
 Goods must be described in accordance with commercial practice and with sufficient detail to enable them to be identified.
                                                                        193
 ---pagebreak---                                                     APPLICATION FOR A MOVEMENT CERTIRCATE
1 . E x p o r t e r (Name, fui address, country)
                                                                                EUR.1                         N. A         000.000
                                                                        2. Application for a certificate to be used In preferential trade
                                                                           between
3 . C o n s i g n e e (Name, fui address, country) (Optional)
                                                                                                                  and
                                                                                    (Insert appropriate countries, groups of countries or territories)
                                                                        4. Country, group of countries                5. Country, group of countries
                                                                           or territory in which the                      or territory of destination
                                                                           products are considered as
                                                                           originating
6. Transport details (optional)                                         7. Remarks
8. Item number; Marks and numbers; Number and kind of packages ('); Description of goods                            9. Gross                 10. Invoices
                                                                                                                       mass (kg)                    (Optional)
                                                                                                                       or other
                                                                                                                       measure
                                                                                                                       (litres,
                                                                                                                       m \ etc)
                                                                                    194.
 ---pagebreak---                                                          DECLARATION BY THE EXPORTER
I, 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 ('):
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 a n d date)
                                                                                                                     (Signature)
(') For example: import documents, movement certificates, invoices, manufacturer's declarations, etc.. referring to the products used in manufacture or to Ihe goods
    re-exported in the same state
                                                                                                       135
 ---pagebreak---                                                ANNEX IV
                                          Invoice declaration
 The invoice declaration, the text of which is given below, must be made out in accordance
with the footnotes. However, the footnotes do not have to be reproduced.
                                             English version
 The exporter of the products covered by this document (customs authorization No ... (1))
declares that, except where otherwise clearly indicated, these products are of ...
preferential origin (2).
                                             Spanish version
El exportador de los productos incluidos en el présente documento (autorizaciôn aduanera
n° ... (1)) déclara que, salvo indication en sentido contrario, estos productos gozan de un
origen preferencial... (2).
                                             Danish version
Eksport0ren af varer, der er omfattet af naervserende dokument, (toldmyndighedemes
tilladelse nr. ... (1)), erklaerer, at varerne, medmindre andet tydeligt er angivet, har
prseferenceoprindelse i... (2).
                                            German version
Der Ausfiihrer (Ermachtigter Ausfiihrer; Bewilligungs-Nr. ... (1)) der Waren, auf die sich
dieses Handelspapier bezieht, erklàrt, dass diese Waren, soweit nicht anderes angegeben,
pràferenzbegiinstigte ... Ursprungswaren sind (2).
                                             French version
L'exportateur des produits couverts par le présent document (autorisation douanière n° ...
(1)) déclare que, sauf indication claire du contraire, ces produits ont l'origine préférentielle
... (2).
     When the invoice declaration is made out by an approved exporter within the meaning of Article 22
     of the Protocol, the authorization number of the approved exporter must be entered in this space.
     When the invoice declaration is not made out by an approved exporter, the words in brackets shall be
     omitted or the space left blank.
     Origin of products to be indicated. When the invoice declaration relates in whole or in part, to
     products originating in Ceuta and Melilla within the meaning of Article 37 of the Protocol, the
     exporter must clearly indicate them in the document on which the declaration is made out by means
     of the symbol 'CM'.
                                                      196
 ---pagebreak---                                              Italian version
L'esportatore délie merci contemplate nel présente documento (autorizzazione doganale n
   (1)) dichiara che, salvo indicazione contraria, le merci sono di origine prefeienziale ...
(2).
                                             Dutch version
De exporteur van de goederen waarop dit document van toepassing is (douanevergunning
nr. ... (1)), verklaart dat, behoudens uitdrukkelijke andersluidende vermelding, deze
goederen van preferentiêle ... oorsprong zijn (2).
                                          Portuguese version
O abaixo assinado, exportador dos produtos cobertos pelo présente documento
(autorizaçao aduaneira n°. ... (1)), déclara que, salvo expressamente indicado em
contrario, estes produtos sâo de origem preferencial... (2).
                                            Finnish version
Tassa asiakirjassa mainittujen tuotteiden viejà (tullin lupan:o ... (1)) ilmoittaa, ettâ nàmâ
tuotteet ovat, ellei toisin oie selvasti merkitty, etuuskohteluun oikeutettuja ...
alkuperàtuotteita (2).
                                            Swedish version
Exportôren av de varor som omfattas av detta dokument (tullmyndighetens tillstând nr. ...
(1)) fôrsâkrar att dessa varor, om inte annat tydligt markerats, har formânsberâttigande
ursprung i... (2).
                                             Greek version
O eÇaYcoyéaç icov JTQOÏÔVTCOV KOV xaAirjiTovtai ouxô TO JICXOOV ÉYYQOxpo (dÔEia
xeXœveio'u irjt'aQiG. ... (1)) ôqXcbvei ôxt, EXTÔÇ edv ôî]Xa)verai oaqpcôç dXXœç, xa
Jigoïôvra oarrd etvai jtQOTifATiauxxiîç xataycoYric ... (2).
i    When the invoice declaration is made out by an approved exporter within the meaning of Article 21
     of the Protocol, the authorization number of the .approved exporter must be entered in this space.
     When the invoice declaration is not made cut by an approved exporter, the words in brackets shall be
     omitted or the space left blank.
     Origin of products to be indicated. When the invoice declaration relates in whole or in part, to
     products originating in Ceuta and Melilla within the meaning of Article 36 of the Protocol, the
     exporter must clearly indicate them in the document on which the declaration is made out by means
     ofthesymbol'CM'.
                                                           197
 ---pagebreak---                                              Faroese version
Ûtflytarin av V0runum, sum hetta skjal fevnir um (tollvaldsins loyvi nr. ... (*)) vâttar, at um
ikki nakad annaô tyôiliga er tilskilaô, eru hesar v0rur upprunav0rur ... (2).
                                                              (Place and date)
                                                              (Signature of the exporter; in
                                                              addition the name of the person
                                                              signing the declaration has to be
                                                              indicated in clear script)
1
    When the invoice declaration is made out by an approved exporter within the meaning of Article 21
    of the Protocol, the authorization number of the approved exporter must be entered in this space.
    When the invoice declaration is not made out by an approved exporter, the words in brackets shall be
    omitted or the space left blank.
2
    Origin of products to be indicated. When the invoice declaration relates in whole or in part, to
    products originating in Ceuta and Melilla within the meaning of Article 36 of the Protocol, the
    exporter must clearly indicate them in the document on which the declaration is made out by means
    ofthesymbol"CM'.
3
    These indications may be omitted if the information is contained on the document itself.
4
    See Article 20(5) of the Protocol. In cases where the exporter is not required to sign, the exemption of
    signature also implies the exemption of the name of the signatory.
                                                              198
 ---pagebreak---                                           PROTOCOL 4
          concerning the special provisions applicable to imports of certain
               agricultural products other than those listed in Protocol 1
                                            Article J
The Community shall grant to products originating in and coming from the Faroe Islands
the following tariff quotas:
   CN code                            Description                        Rate   Tariff quota (TQ)
                                                                        of duty      in tonnes
0204             Meat of sheep or goats, fresh, chilled or frozen          0
0206 80 99       Edible offal of sheep and goats, fresh or chilled         0
0206 90 99       Edible offal of sheep and goats, frozen                   0 .
0210 90 11       Meat of sheep or goats, salted, in brine, dried or        0
                 smoked, with bone in
0210 90 19       Meat of sheep or goats, salted, in brine, dried or        0
                 smoked, boneless
0210 90 60       Edible meat offal of sheep or goats, salted, in brine,    0             20
                 dried or smoked
ex 1601          Sausages and similar products, of meat, meat offal
                 or blood; food preparations based on these products:
                      Of sheep and goats                                   0
ex 1602          Other prepared or preserved meat, meat offal or
                 blood:
                      Of sheep and goats                                   0
ex 2309 90 10    Fish feed                                                 0            5000
ex 2309 90 31
ex 2309 90 41
                                                         199
 ---pagebreak---                                             Article 2
The Faroe Islands shall grant freedom of tariffs and duties to goods of Community origin,
falling within Chapters 1 to 24 in the Harmonized System, with the following exceptions:
    CNcode                                               Description
0204             Meat of sheep or goats, fresh, chilled or frozen
0206 80 99       Edible offal of sheep and goats, fresh or chilled
0206 90 99      Edible offal of sheep and goats, frozen
0210 90 11      Meat of sheep or goats, salted, in brine, dried or smoked, with bone in
0210 90 60      Edible meat offal of sheep or goats, salted, in brine, dried or smoked
ex 0210 90 90 Edible flours and meals of meat and meal offal, of sheep and goats
0401            Milk and cream, not concentrated nor containing added sugar or other sweetening matter
0402            Milk and cream, concentrated or containing added sugar or other sweetening matter
0403            Buttermilk, curdled milk and cream, yoghurt, képhir and other fermented or acidified
                milk and cream, 'whether or not concentrated or containing added sugar or other
                sweetening matter or flavoured or containing added fruit, nuts or cacao
ex 1601         Sausages and similar products, of meat, meat offal or blood; food preparations based on
                these products:
                     Of sheep and goats
ex 1602         Other prepared or preserved meat, meat offal or blood:
                     Of sheep and goats
                                                         200
 ---pagebreak---                                       PROTOCOL 5
   on mutual assistance between administrative authorities in customs matters
                                          Article J
                                         Definitions
For the purposes of this Protocol :
     a) "customs legislation" shall mean any legal or regulatory provision adopted by
         the Contracting Parties governing the import, export, and transit of goods and
         their placing under any customs procedure, including measures of prohibition,
         restriction and control;
     b) "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;
      c) "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;
      d) "personal data", shall mean all information relating to an identified or
         identifiable individual.
                                          Article 2
                                           Scope
1. The Contracting Parties shall assist each other, in the areas within their jurisdiction,
    in the manner and under the conditions laid down in this Protocol, in ensuring that
    the customs legislation is correctly applied, in particular by the prevention,
    detection and investigation of operations in breach of that legislation.
2. Assistance in customs matters, as provided for in this Protocol, shall apply to any
    administrative authority of the 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 authorities, except where
    communication of such information has the prior authorization of the said
    authorities.
                                                         20:
 ---pagebreak---                                          Article 3
                                   Assistance on request
 1.   At the request of the applicant authority, the requested authority shall furnish it
     with all relevant information which may enable it to ensure compliance with
      customs legislation, including information regarding operations noted or planned
     which are or might be in breach of such legislation.
2.   At the request of the applicant authority, the requested authority shall inform it
     whether goods exported from the territory of one of the 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, within the
     framework of its laws, take the necessary steps to ensure special surveillance of:
     (a) natural or legal persons of whom there are reasonable grounds for believing
          that they are or have been in breach of customs legislation;
     (b) places where goods are stored in a way that gives grounds for suspecting that
          they are intended to supply operations in breach of customs legislation;
     (c) movements of goods notified as possibly giving rise to breaches of customs
          legislation;
     (d) means of transport for which there are reasonable grounds for believing that
          they have been, are or may be used in operations in breach of customs
          legislation.
                                         Article 4
                                 Spontaneous assistance
The Contracting Parties shall provide each other, at their own initiative and in
accordance with their laws, rules and other legal instruments, with assistance if they
consider that to be necessary for the correct application of customs legislation,
particularly when they obtain information pertaining to :
      - operations which are or appear to be in breach of such legislation and which
        may be of interest to the other Contracting Party;
      - new means or methods employed in carrying out such operations;
     - goods known to be subject to breaches of customs legislation;
                                                 / w \y f*te
 ---pagebreak---                                           Article 5
                                    Delivery/Notification
At the request of the applicant authority, the requested authority shall, in accordance
with its legislation, take all necessary measures in order :
       - to deliver all documents,
       - to notify all decisions,
falling within the scope of this Protocol to an addressee, residing or established in its
territory. In such a case, Article 6 (3) shall apply.
                                          Article 6
                         Form and substance of requests for assistance
1.    Requests pursuant to this Protocol shall be made in writing. They shall be
      accompanied by the documents necessary to enable compliance with 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 who are the target of the investigations;
       (f)   a summary of the relevant facts and of the enquiries already carried out,
             except in cases provided for in Article 5.
3.    Requests shall be submitted in an official language of the requested authority or in
      a language acceptable to that authority.
4.    If a request does not meet the formal requirements, its correction or completion
      may be requested; precautionary measures may, however, be ordered.
                                          Article 7
                                    Execution of requests
 1.   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 the limits of 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.
                                                      203
 ---pagebreak--- 2. Requests for assistance shall 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 subject to 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 operations
   which are or may be in breach 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 involved and subject to the conditions laid down by the latter, be present at
   enquiries carried out in the latter's territory.
                                         Article 8
                   Form in which information is to be communicated
1. 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.
3. Original files and documents shall be requested only in cases where certified
   copies would be insufficient. Originals which have been transmitted shall be
   returned at the earliest opportunity.
                                         Article 9
                   Exceptions to the obligation to provide assistance
1. The Contracting Parties may refuse to give assistance as provided for in this
   Protocol, where to do so would:
   (a) be likely to prejudice the sovereignty of the Faroe Islands or that of a Member
         State of the Community which has been asked to provide assistance under this
         Protocol; or
   (b) be likely to prejudice public policy, security or other essential interests, in
         particular in the cases referred to under Article 10 (2); or
   (c) involve currency or tax regulations other than customs legislation; or
   (d) violate an industrial, commercial or professional secret.
2. Where the applicant authority requests 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 for the requested authority to decide how to respond to such a request.
3. If assistance is refused, the decision and the reasons therefor must be notified to
   the applicant authority without delay.
                                                    20
 ---pagebreak---                                          Article JO
                         Information exchange and confidentiality
1.   Any information communicated in whatsoever form pursuant to this Protocol shall
     be of a confidential or restricted nature, depending on the rules applicable in each
     of the Contracting Parties. It shall be covered by the obligation of official secrecy
     and shall enjoy the protection extended to similar information under the relevant
     laws of the Contracting Party which received it and the corresponding provisions
     applying to the Community institutions.
2.   Personal data may be exchanged only where the receiving Contracting Party
     undertakes to protect such data in at least an equivalent way to the one applicable
     to that particular case in the supplying Contracting Party.
3.   Information obtained shall be used solely for the purposes of this Protocol. Where
      one of the Contracting Parties requests the use of such information for other
     purposes, it shall ask for the prior written consent of the authority which furnished
     the information. Such use shall then be subject to any restrictions laid down by
     that authority.
4.   Paragraph 3 shall not impede the use of information in any judicial or
      administrative proceedings subsequently instituted for failure to comply with
     customs legislation. The competent authority which supplied that information shall
     be notified of such use.
5.   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 J J
                                   Experts and witnesses
An official of a requested authority may be authorized to appear, within the limitations
of the authorization granted, as an expert or witness in judicial or administrative
proceedings regarding the matters covered by this Protocol in the jurisdiction of the
other 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 matters and by virtue of what title or qualification the
official will be questioned.
                                          Article 12
                                     Assistance expenses
The 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 public service
employees.
                                                        9 H rj
 ---pagebreak---                                        Article 13
                                      Application
1.  The application of this Protocol shall be entrusted to the central customs
    authorities of the Faroe Islands on the one hand and the competent services of the
    Commission of the European Communities and, where appropriate, the customs
    authorities of the Member States of the Community on the other. They shall
    decide on all practical measures and arrangements necessary for its application,
    taking into consideration the rules in force in the field of data protection.
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 Protocol.
                                       Article 14
                                   Complementarity
Without prejudice to Article 10, any agreements on mutual assistance which have been
or may be concluded between one or more Member States of the European
Community and the Faroe Islands shall 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.
                                               206
 ---pagebreak---     Joint Declaration concerning the review of the Agreement in keeping with the
                         development of EC-EFTA trade relations
If the Community - in the context of the Agreement on the European Economic Area -
grants concessions to the EFTA-EEA countries going beyond those granted to the Faroe
Islands in areas covered by the present Agreement, the Community will, upon request
from the Faroe Islands, consider in a positive spirit, case-by-case, to what extent and on
what basis corresponding concessions could be offered to the Faroe Islands.
If agreements or arrangements are concluded between the Faroe Islands and the Member
States of EFTA whereby the Faroe Islands grant concessions to EFTA countries going
beyond those granted to the Community in areas covered by the present Agreement, the
Faroe Islands will, upon request from the Community, consider in a positive spirit, case-
by-case, to what extent and on what basis corresponding concessions could be offered to
the Community.
                 Joint Declarations concerning Protocol 3 to the Agreement
I.    Possibility to cumulate with materials from EFTA countries
      The Contracting Parties agree to examine the feasibility and economic interest of
      including provisions in Protocol 3 concerning the possibility to cumulate with
      materialsfromEFTA countries.
II. Transitional period concerning the issuing or making out of documents relating
      to the proof of origin
      1. Until 31 December 1997, the competent customs authorities of the Community
         and of the Faroe Islands shall accept as valid proof of origin within the meaning of
         Protocol 3 :
           (i) movement certificates EUR.l, endorsed beforehand with the stamp of the
                 competent customs pffice of the exporting State;
           (ii) movement certificates EUR.l, issued within the context of this Agreement,
                 endorsed by an approved exporter with a special stamp which has been
                 approved by the customs authorities of the exporting state;
           (iii) EUR.2 forms, issued within the context of this Agreement.
      2. Requests for subsequent verification of documents referred to above shall be
         accepted by the competent customs authorities of the Community and of the Faroe
         Islands for a period of two years after the issuing and making out of the proof of
         origin concerned. These verifications shall be carried out in accordance with Title
         VI of Protocol 3 to this Agreement.
                                                    207
 ---pagebreak--- m . Principality of Andorra
       1. Products originating in the Principality of Andorra falling within Chapters 25 to 97
          of the Harmonized System shall be accepted by the Faroe Islands as originating in
          the Community within the meaning of the Agreement.
       2. Protocol 3 shall apply mutatis mutandis for the purpose of defining the originating
          status of the above-mentioned products.
IV. Republic of San Marino
       1. Products originating in the Republic of San Marino be accepted by the Faroe
          Islands as originating in the Community within the meaning of the Agreement.
       2. Protocol 3 shall apply mutatis mutandis for the purpose of defining the originating
          status of the above-mentioned products.
       Declaration by the Community concerning Article 24 (1) of the Agreement
The Community declares that, in the context of the autonomous implementation of Article
24 (1) of the Agreement which is incumbent on the Contracting Parties, it will assess any
practices contrary to that Article on the basis of criteria arising from the application of the
rules of Articles 85, 86, 90 and 92 of the Treaty establishing the European Community.
     Declaration by the Community concerning the regional application of certain
                                  provisions of the Agreement
The Community declares that the application of any measures it may take under Articles
24, 25, 26, 27 or 28 of the Agreement, in accordance with the procedure and under the
arrangements set out in Article 29, or under Article 30, may be limited to one of its
regions by virtue of Community rules.
      Declaration by Denmark and the Faroe Islands concerning Article 36 of the
                                          Agreement
In accordance with Article 36 of the Agreement, the Community will, at the request of the
Faroe Islands, consider improving the access possibilities for specific products.
It is the view of the Faroe Islands that article needs a qualification to serve its purpose for
a progressive development of trade between the parties and the Faroe Islands therefore
appeals to the Community to undertake serious consideration of access possibilities when
quotas and ceilings of such products are proved to be exhausted.
                                                      208
 ---pagebreak---                                 F I N A N C I A L S T A T E M E N T
1. TITLE OF OPERATION
   Proposal for a Council Decision concerning the conclusion of an Agreement between
   the European Community of the one part and the Government of Denmark and the
   Home Government of the Faroe Islands of the other part.
2. BUDGET HEADING INVOLVED
   Chap. 12 - Article 120
3. LEGAL BASIS
   Article 113 of the Treaty
4. DESCRIPTION OF OPERATION
   4.1.   General objective
          Replacement of the existing trade Agreement between the Community and
          Denmark/Faroe Islands, in particular:
          - to take into account the consequences of enlargement;
          - to add a new protocol on mutual administrative assistance in customs
            matters;
          - to update the provisions of the Agreement relating to petroleum products;
          - to authorise the Joint Committee provided for under the Agreement to
            amend the provisions of the Protocols annexed to the Agreement.
   4.2.   Period covered
          For an undetermined period as from 1 January 1997 onwards.
          The existing Agreement, as well as the bilateral trade Agreements concluded
          before accession between Finland and Sweden and the Faroe Islands, shall
          cease to be in force on the entry into force of the proposal.
5. FINANCIAL IMPACT
   The present proposal will have no implications for the Community budget. Since
    1.1.1995, two different import regimes are applied in the Community's trade relations
   with the Faroe Islands:
   - in respect of the 12 Member States: the provisions of the existing trade
      Agreement. This Agreement already provides for importation into the Community
                                                                    209
 ---pagebreak---         of certain products from the Faroe Islands at zero duty (some of these products
        are subject to a tariff quota or a reference ceiling);
     - in respect of Finland and Sweden1: the provisions of the bilateral Agreements
        concluded by both countries before accession. Since these Agreements, which
        provide for almost complete free trade in fish and fish products, have not yet been
        denounced, they remain in force.
     The basic objective of the proposal is therefore to integrate the trade relations
     between Finland and Sweden and the Faroe Islands in the Community Agreement.
     The new provisions applicable to imports into the Community of certain fish
     products from the Faroe Islands take into account traditional imports into Finland
     and Sweden from the Faroe Islands before 1.1.1995.
6.   FRAUD PREVENTION MEASURES
     Articles 30 to 32 of Protocol 3 provide for administrative co-operation in order to
     check the authenticity and the accuracy of proofs of origin, as well as the fulfilment
     of the other requirements of that Protocol and its annexes.
     In addition, the new Protocol 5 provides for mutual administrative assistance in
     customs matters, in order to ensure that the customs legislation is correctly applied in
     the trade relations between the Contracting Parties.
1
   The bilateral Agreement between Austria and Denmark/Faroe Islands did not enter into force before
   the Austrian accession. Moreover, trade relations between Austria and Faroe Islands were negligible
   before 1.1.1995.                                       _M
                                                          210
 ---pagebreak---  ---pagebreak---                                                                   ISSN 0254-1475
                                                            C0M(96) 503 final
                                              DOCUMENTS
EN                                                                  02 11 12
                                    Catalogue number : CB-CO-96-505-EN-C
                                                             ISBN 92-78-09959-7
Office for Official Publications of the European Communities
L-298S Luxembourg
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