CELEX: 51991PC0323
Language: en
Date: 1991-08-19
Title: PROPOSAL FOR A COUNCIL DECISION CONCERNING THE CONCLUSION OF 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

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                          C0M(91)  323 f i n a l
                                                          Brussels,  19 August   1991
                                         Proposal f o r a
                                       COUNCIL DECISION
       c o n c e r n i n g t h e c o n c l u s i o n of t h e Agreement between
          t h e European Economic Community o f t h e one p a r t
                    and t h e Government of Denmark and t h e
     Home Government o f t h e Faroe I s l a n d s of t h e o t h e r p a r t
                          ( p r e s e n t e d by the Commission)
 ---pagebreak---  ---pagebreak---                          EXPLANATORY MEMORANDUM
A Council ad hoc working group was mandated on 21 March 1990 by the
Permanent Representatives Committee to examine a recommendation for a
Council decision regarding directives for negotiation concerning an
agreement between the Faeroe Islands and Denmark (Doc SEC(90) 275
final).
On 11 April 1990 the Permanent Representatives Committee gave its
agreement provided that Member States would be closely associated with
the negotiations in order to take account of the fishing sector
industries.
The negotiations were therefore carried out by the Commission with the
assistance of Member States.
The last round took place in the Faeroe Islands on 19 and 21 June 1991.
Uith the negotiation sessions alternating with the holding of a
113 Committee to allow Member States to be kept closely informed.
The agreement was signed on 21 June.
 ---pagebreak---                         Proposal for a
                 Draft Council Decision No
                       of
    concerning the conclusion of 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
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European
Economic Community, and in particular Article 113
thereof,
Having regard to the proposal from the Commission,
Whereas the Agreement negotiated between the European
Economic Community of the one part and the Government of
Denmark and the Home Government of the Faroe Islands, on
the other part should be approved,
HAS ADOPTED THIS DECISION:
                          Article 1
The Agreement between the European Economic Community of
the one part and the Government of Denmark and the Home
Government of the Faroe Islands, on 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 shall give the notification
provided for in Article 38 of the Agreement (1).
Done at Brussels,                          For the Council
                                           The President
(1) The date of entry into force of the Agreement will be
published in the Official Journal of the European
Communities by the General Secretariat of the Council.
 ---pagebreak---                       A G R E E M E N T
   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 EUROPEAN ECONOMIC 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;
RESOLVED to this end to eliminate progressively the
obstacles to substantially all their trade, in accordance
with the provisions of the General Agreement on Tariffs and
Trade 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;
 ---pagebreak--- 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:
                          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 European Economic 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
The 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 Economic Community,
     and other than those listed in Annex I;
(ii) which are specified in Protocols Nos 1, 2 and 4, with
     due regard to the arrangements provided for in those
     Protocols.
                          Article 3
1.   No new customs duty on imports shall be introduced in
     trade between the Community and the Faroe Islands.
2.   The Community as constituted on 31 December 1985 shall
     abolish customs duties on imports from the Faroe
     Islands on 1 January 1992.
 ---pagebreak--- 3.   The Kingdom of Spain shall reduce its customs duties
     applicable to the Faroe Islands in accordance with
     Article 31 (1) and (3) of the Act of Accession.
4.   The Portuguese Republic shall reduce its customs duties
     applicable to the Faroe Islands in accordance with
     Article 190 (1) and (2) of the Act of Accession.
                          Article 4
The Faroe Islands shall abolish customs duties on imports
from the Community on 1 January 1992, as specified in Annex
II.
                          Article 5
1.   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.
2.   The Faroe Islands may temporarily retain the import
     duties of a fiscal nature in existence on 1 May 1991,
     as mentioned in Annex II, part A.
3.   The Faroe Islands may temporarily introduce new import
     duties of a fiscal nature and increase existing import
     duties of a fiscal nature, provided that such duties or
     duty increases respect the conditions laid down in
     Article 19. The Faroe Islands shall notify the
     Community of such changes.
4.   The Faroe Islands shall abolish all import duties of a
     fiscal nature in connection with the implementation of
     the reform described in Annex II and no later than 1
     January 1993.
                          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 upon the entry into force of the
Agreement.
 ---pagebreak---                           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 not later than 1 January 1992.
                          Article 8
Protocol No 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 No 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
     provided for in Article 30.
                         Article 11
Protocol No 3 lays down the rules of origin.
 ---pagebreak---                           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 supension 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.
                          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 not later than 1 January 1992.
                          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 a
     common definition of origin for petroleum products,
     upon adoption of decisions under the common commercial
     policy for the products in question 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  32.
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, the Agreement shall not
     prejudice the non-tariff rules applied to imports of
     petroleum products.
                                                             8
 ---pagebreak---                          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 the 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, under the
     conditions set out in Article 33, 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 No 1.
The Contracting Parties shall ensure the correct application
of the definition of the concept of "originating products"
and methods of administrative cooperation, laid down in
Protocol No 3.
                         Article 17
Protocol No 4 lays down the special provisions applicable to
imports of certain agricultural products other than those
listed in Protocol No 1.
                         Article 18
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 (GATT).
The Agreement shall not preclude the maintenance or
establishment of customs unions, free trade areas or
arrangements for frontier trade, except insofar as they
alter the trade arrangements provided for in this Agreement,
in particular the provisions concerning rules of origin.
 ---pagebreak---                           Article 19
The Contracting Parties shall refrain from any measure or
practice of an internal fiscal nature establishing, whether
directly or indirectly, discrimination 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 20
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 21
The 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 22
Nothing in the Agreement shall prevent a Contracting Party
from taking any measures:
 (a)  which it considers necessary to prevent the disclosure
      of information contrary to its essential security
      interests;
 (b)  which relate to 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:
 i'c) which it considers essential to its own security in
      time of war or serious international tension.
                                                              10
 ---pagebreak---                           Article 23
1.   The Contracting Parties shall refrain from any measure
     likely to jeopardize the fulfilment of the objectives
     of the Agreement.
2.   They shall take any general or specific measures
     required to fulfil their obligations under the
     Agreement :
     If either Contracting Party considers that the other
     Contracting Party has failed to fulfil an obligation
     under the Agreement, it may take appropriate measures
     under the conditions and in accordance with the
     procedures laid down in Article 28.
                          Article 24
1.   The following are incompatible with the proper
     functioning of the 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 procedure laid down in Article 28.
                          Article 25
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 the Agreement, of
      customs duties and charges having equivalent effect
      levied on the product in question; and
                                                              11
 ---pagebreak--- (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 28.
                         Article 26
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, under the
conditions and in accordance with the procedures laid down
in Article 28.
                         Article 27
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 28.
                         Article 28
1.   In the event of a Contracting Party subjecting imports
     of products liable to give rise to the difficulties
     referred to in Articles 25 and 27 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 23 to 27, before
     taking the measures provided for therein or, in cases
     to which paragraph 3 (d) 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 the 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.
                                                             12
 ---pagebreak---                                                           10
3. For the implementation of paragraph 2, the following
   provisions shall apply:
   (a)  As regards Article 24, 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 the Agreement
        within the meaning of Article 24 (1).
        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.
   (b)  As regards Article 25, 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
        repsect of the raw materials or intermediate
        products incorporated therein.
    (c) As regards Article 26, 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 25, 26 and
        27 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.
                                                             13
 ---pagebreak---                                                              11
                          Article 29
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 30
1.    A Joint Committee is hereby established which shall be
      responsible for the administration of the Agreement and
      shall ensure its proper implementation. For this
      purpose, it shall make recommendations and take
      decisions in the cases provided for in the 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 the
      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 31
1.    The Joint Committee shall consist of representatives of
      the Contracting Parties .
2.    The Joint Committee shall act by mutual agreement.
                          Article 32
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.
2.    The Chairman shall convene meetings of the Joint
      Committee at least once a year in order to review the
      general functioning of the 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.
                                                                14
 ---pagebreak---                                                               12
3.   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 adapt the tariff nomenclature of
     these products to conform with such modifications.
4.   The Joint Committee may decide to set up any working
      party that can assist it in carrying out its duties.
                           Article 33
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 the
      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 34
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 ;
       sensitive nature in the Community.
                           Article 35
 The Annexes and Protocols to the Agreement shall form an
 integral part thereof.
                                                                 15
 ---pagebreak---                                                                 13
                              Article 36
    Either Contracting Party may denounce the Agreement by
    notifying the other Contracting Party. The Agreement shall
    cease to be in force twelve months after the date of such
    notification.
                              Article 37
    The Agreement shall apply, on the one hand, to the
    territories to which the Treaty establishing the European
    Economic Community applies upon the terms laid down in that
    Treaty and, on the other, to the territory of the Faroe
    Islands.
                              Article 38
    This Agreement is drawn up in duplicate in the Danish,
    Dutch, English, Faroese, French, German, Greek, Italian,
    Portuguese and Spanish languages, each of these texts being
    equally authentic.
    This Agreement will be approved by the Contracting Parties
    in accordance with their own procedures.
    It shall enter into force on 1 January 1992, 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 second month following such
    notification.
    The provisions applicable on 1 January 1992 shall be applied
    upon the entry into force of this Agreement if it enters
     into force after that date.
     IN WITNESS WHEREOF, the undersigned, being duly authorized
     for this purpose, have signed this Agreement.
(2)                                                                16
 ---pagebreak---                                            ANNE >. I
   List c"f prcc-jc:s referred to *.n Article 2 (-•; c"f :-? - = -?e^»^t
CN c o d e                                        Descriot ic^
   3502        AJbamtttS, albuminates and other albumin derivatives :
   35K10
               - - Other
               - — — Dned (Tor example, in sbecs. scale*, fi4k.es. pc*Cc:)
   I S C It 99         Other
   39R90       - Otber :
               - — AJbumins. other thac e u albumin
                -  - - Other :
                - - - — Milk aJbumin ( l a o i l b u n m ;
    3SRMS1       - - - - -   Dn«l (for ciunplc in ibecu. icalev flilca. ponder)
    3502 90 59  - - - - -    Other
                                                                                17
 ---pagebreak---                             ANNEX XI
 Implementation bv the Faroe Islands of abolition of tariffs
            and duties on goods of Community origin
A.    Faroese legislation on fiscal import duties and
      internal production levies in force on 1 May 1991:
      1.   Law No. 53 from 11 February 1950 as later amended:
           Fiscal import duties and production levies on a
                 number of specific products.
      2.   Law No. 9 from 27 April 1961 as later amended:
           A general fiscal import duty of 27% with certain
           exceptions, mainly for raw materials and for goods
           used by the fishing industry.
      3.   Law No. 32 from 19 May 1979 as later amended:
           A general fiscal import duty of 6% with certain
           exceptions, although with fewer exceptions than
           under No. 2.
      The European Commission will, at the date of signature
      of the Agreement, at the latest, receive a complete
      collection of the abovementioned legislation in force
      on 1 May 1991.
B.    The Faroe Islands commit themselves to make the
      following changes in their customs and duties
      legislation:
      1.   On 1 January 1992:
           a)    A new customs legislation will be enacted,
                 introducing a customs tariff based upon the
                 Harmonized System, and respecting the GATT-
                 obligations of Denmark.
           b)    Goods of EEC origin will be granted duty-free
                 treatment with the exceptions mentioned in
                 Protocols 2 and 4.
                                                               18
 ---pagebreak--- C. On 1 January 1993:
   The existing system of fiscal import duties and
   production levies is abolished and replaced by a new
   system of indirect taxation based upon the following
   elements:
   a)   A value-added tax (VAT), based upon the same
        principles as those recommended by the Community
        to its member states, including non-discrimination
        of imported goods, and
   b)   A system of excise duties, levied equally upon
        domestic production and imported goods.
                                                           19
 ---pagebreak---                         PROTOCOL NO 1
 concerning the special provisions applicable to imports of
              certain fish and fishery products
                          Article 1
As regards the products listed in the Annex to this protocol
and originating in the Faroe Islands:
1.   no new customs duty 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 as constituted on the 31
     December 1985 of products originating in and coming
     from the Faroe Islands shall be as indicated in the
     annex to this Protocol;
3.   the Kingdom of Spain shall reduce its customs duties
     applicable to the Faroe Islands in accordance with
     Article 173 (1) and (2) of the Act of Accession;
4.   the Portuguese Republic shall.reduce its customs duties
     applicable to the Faroe Islands in accordance with
     Article 360 (1) (b) and (2) of the Act of Accession.
                          Article 2
The preferential duty rates indicated in the Annex only
apply if the free-at-frontier price, which is determined by
the Member States in accordance with Article 21 of
Regulation (EEC) No 3796/81 (O.J. N* L 379, 31.12.1981) as
last amended by Regulation (EEC) N* 3468/88 (OJ N" L 305,
10.11.1988) is at least equal to the reference price fixed,
or to be fixed, by the Community for the products under
consideration or the categories of the products concerned.
                          Article 3
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 of fish and fishery products originating in the
Community on the date specified in Article 5 and Annex II to
this Agreement.
                                                             20
 ---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
                                                          21
 ---pagebreak---                                                          TABLE I
   CN Code                                 Description                    Rate of duty Tariff quota
                                                                                       TQ in tons
                                                                                       reference
                                                                                       ceiling R.C.
   0301          Live fish:
                 — Other live fish:
   ex0301 91 OOi —  Trout (Salmo trutta, Salmo gairdneri, Salmo clarki,
                    Salmo aguabonita, Salmo gilae)
                             - Trout (Salmo gairdneri)                                    TQ N  1
   0301 92 00    —  Eels (Anguilla spp.)
   0301 99       —  Other
                     Freshwater fish
   ex0301 99 llj      Pacific salmon (Oncorhynchus spp.), Atlantic salmon
                      (Salmo salar) and Danube salmon (Hucho hucho):
                             - Atlantic salmon (salmo salar)                              TQ N  2
   0302          Fish, fresh or chilled, excluding fish filets and other
                 fish meat of heading No 0304:
                 — Salmonidae, excluding livers and roes:
   ex0302 11 0d —   Trout (Salmo trutta, Salmo gairdneri, Salmo clarki,
                    Salmo aguabonita, Salmo gilae):
                             - Trout (Salmo gairdneri)                                    TQ N° 1
   ex0302 12 0d —   Pacific salmon (Oncorhynchus spp.), Atlantic salmon
                    (Salmo salar) and Danube salmon (Hucho hucho):
                             - Atlantic salmon (salmo salar)                              TQ N° 2
*0
 ---pagebreak---                                                      TABLE I
   CN Code                             Description                     Rate of duty Tariff quota
                                                                                    TQ in tons
                                                                                    reference
                                                                                    ceiling R.C.
   0302 19 00 —  Other
              — Flat fish (Pleuronectidae, Bothidae, Cynoglossidae,
                Soleidae, Scophthalmidae and Citharidae), excluding
                livers and roes:
   0302 21    —  Halibut (Reinhardtius hippoglossoides, Hippoglossus
                 hippoglossus, Hippoglossus stenolepis):
   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 90                                                                       Statistical Surv
              — Other
   0302 40    — Herrings (Clupea harengus, Clupea pallasii), excluding
                livers and roes:
   0302 40 10 —  From 15 February to 15 June
   0302 40 90 —  From 16 June to 14 February                                            RC N
   0302 50    — Cod (Gadus morhua, Gadus ogac, Gadus macrocephalus),
                excluding livers and roes:
CO
 ---pagebreak---                                                         TABLE I
   CN Code                               Description                 Rate of duty Tariff quota
                                                                                  TQ in tons
                                                                                  reference
                                                                                  ceiling R.C.
   0302 50 10   -- Of the species Gadus morhua
                — Other fish, excluding livers and roes:
   0302 62 00
                -- Haddock (Melanogrammus aeglefinus)
   0302 63 00
                — Coalfish (Pollachius virens)
   0302 64      — Mackerel (Scomber scombrus, Scomber australasicus,
                   Scomber japonicus):
   ex0302 64 10 —   From 15 February to 15 June
                            - Mackerel (Scomber scombrus)
   ex0302 64 90 —   From 16 June to 14 February
                                                                                      RC N   2
                            - Mackerel (Scomber scombrus)
   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.)
   0302 69
                 - Other:
                —   Saltwater fish:
to                   Redfish (Sebastes spp.):
 ---pagebreak---                                                          TABLE I
   CN Code                                 Description                    Rate of duty Tariff quota
                                                                                       TQ in tons
                                                                                       reference
                                                                                       ceiling R.C.
   0302 69 31          Of the species Sebastes marinus                                     RC N  6
   ex0302 69 33        Other :
                               - Of the species Sebastes mentella              0           RC N  6
   0302 69 41         Whiting (Merlangus merlangus)                            0
   0302 69 45         Ling (Molva spp.)                                        0
   ex0302 69 65|      Hake (Merluccius spp., Urophycis spp.)
                                                                               0
                               - Hake (Merluccius merluccius)
   0302 69 81                                                                  0
                      Monkfish (Lophius spp.)
   0302 69 85
                      Blue whiting (Micromesistius poutassou or Gadus          0
   0302 69 98    poutassou)                                                    0       Statistical surv
   0302 70 00         Other                                                    0
                 - Livers and roes
   0303          Fish, frozen, excluding fish fillets and other fish meat
                 of heading No 0304:
                 - Other salmonidae, excluding livers and roes:
   ex0303 21 0d —   Trout (Salmo trutta, Salmo gairdneri, Salmo clarki,
                    Salmo aguabonita, Salmo gilae):
                            - Trout (Salmo gairdneri)                                      TQ N  1
Of
 ---pagebreak---                                                        TABLE I
   CN Code                               Description                    Rate of duty Tariff quota
                                                                                     TQ in tons
                                                                                     reference
                                                                                     ceiling R.C.
   ex0303 22 Od —  Atlantic salmon (Salmo salar) and Danube salmon
                   (Hucho hucho):
                            - Atlantic salmon (salmo salar)                              TQ N   2
   0303 29 00   —  Other
                — Flat fish (Pleuronectidae, Bothidae, Cynoglossidae,
                  Soleidae, Scophthalmidae and Citharidae), excluding
                  livers and roes:
   0303 31      —  Halibut (Reinhardtius hippoglossoides, Hippoglossus
                   hippoglossus, Hippoglossus stenolepis):
   0303 31 10       Lessor or Greenland halibut (Reinhardtius
                    hippoglossoides)
   0303 31 30
                    Atlantic halibut (Hippoglossus hippoglossus)
   0303 32 00
                —  Plaice (Pleuronectes platessa)
   0303 33 00
                —  Sole (Solea spp.)
   0303 39
                —  Other:
   0303 39 10
                    Flounder (Platichthys flesus)
   0303 39 90
                    Other
   0303 50      — Herrings (Clupea Harengus, Cluper Pallasii) excluding
                  livers and roes
IC
m
 ---pagebreak---                                                         TABLE I
   CN Code                               Description                       Rate of duty Tariff quota
                                                                                        TQ in tons
                                                                                        reference
                                                                                        ceiling R.C.
   0303 50 10   —  From 15 February to 15 June
   0303 50 90   —  From 16 June to 14 February                                             RC N
   0303 60      — Code (Gadus morhua, Gadus ogac, Gadus macrocephalus),
                  excluding livers and roes:
   ex0303 60 10 —  Of the species Gadus morhua and Gadus ogac
                            - Of the species Gadus morhua
                — Other fish, excluding livers and roes:
   0303 74      —  Mackerel (Scomber scombrus, Scomber australasicus,
                   Scomber japonicus):
                    Of the species Scomber scombrus and Scomber jpaonicus:
   ex0303 74 11      From 15 February to 15 June
                            - Scomber scombrus
   ex0303 74 19      From 16 June to 14 February
                            - Scomber scombrus
   0303 75
                —  Dogfish and other sharks:
   0303 75 20
                    Dogfish of the species Squalus acanthias
   0303 75 50
                    Dogfish of the species Scyliorhinus spp.
to
 ---pagebreak---                                                          TABLE I
   CN Code                                 Description                    Rate of duty Tariff quota
                                                                                       TQ in tons
                                                                                       reference
                                                                                       ceiling R.C.
   0303 75 90    —   Other
   0303 79       •- Other:
                 —   Saltwater fish:
                      Redfish (Sebastes spp.):
   0303 79 35          Of the species Sebastes marinus                                     RC N  6
   ex0303 79 37        Other:
                              - Of the species Sebastes mentella                           RC N  6
   0303 79 45         Whiting (Merlangus merlangus)
   0303 79 51         Ling (Molva spp.)
   0303 79 81         Monkfish (Lophius spp.)
   0303 79 83         Blue whiting (Micromesistius poutassou or Gadus
                      poutassou)
   0303 79 98                                                                          Statistical surv,
                      Other
   0303 80 00
                   Livers and roes
   0304         Fish fillets and other fish meat (whether or not minced),
                fresh, chilled or frozen:
to
00
 ---pagebreak---                                                          TABLE I
   CN Code                                Description                      Rate of duty Tariff quota
                                                                                        TQ in tons
                                                                                        reference
                                                                                        ceiling R.C.
   0304 10       - Fresh or chilled:
                 —  Fillets:
                     Of freshwater fish:
   ex0304 10 11       Of trout (Salmo trutta, Salmo gairdneri, Salmo
                      clarki, Salmo aguabonita, Salmo gilae):
                              - Of trout (Salmo Gairdneri)                                  TQ N° 1
   ex0304 10 13       Of Pacific salmon (Oncorhynchus spp.) Atlantic
                      salmon (Salmo salar) and Danube salmon (Hucho hucho)
                              - Of Atlantic salmon (salmo salar)                            TQ N° 2
                     Other:
   ex0304 10 33J      Of cod (Gadus morhua, Gadus ogac, Gadus
                      macrocephalus) and of fish of the species Boreogadus
                      saida
                              - Of cod (Gadus morhua)
   0304 10 39         Other
                              - Of redfish (Sebastes spp.)                                  RC N 6
                              - Other                                                       RC N° 7
                 — Other fish meat (whether or not minced):
   0304 10 91    —   Of freshwater fish
   0304 10 99    —   Other
CO
 ---pagebreak---                                                           TABLE I
   CN Code                                                                   Rate of duty Tariff quota
                                                                                          TQ in tons
                                                                                          reference
                                                                                          ceiling R.C.
   0304 20        — Frozen fillets:
                  -- Of freshwater fish:
   ex0304 20 1 li     Of trout (Salmo trutta, Salmo gairdneri, Salmo clarki,
                      Salmo aguabonita, Salmo gilae):
                               - Of trout (Salmo gairdneri)                                   TQ N° 1
   ex0304 20 13       Of Pacific salmon (Oncorhynchus spp.), Atlantic
                      salmon (Salmo salar) and Danube salmon (Hucho hucho):
                               - Of Atlantic salmon (salmo salar)                             TQ N° 2
                  —  Of cod (Gadus morhua, Gadus macrocephalus, Gadus ogac)
                     and of fish of the species Boreogadus saida:
   ex0304 20 29       Other
                               - Of code of the species Gadus morhua
   0304 20 31                                                                                 RC N  3
                 -- Of coalfish (Pollachius virens)
   0304 20 33
                 -- Of haddock (Melanogrammus aeglefinus)
                 —   Of redfish (Sebastes spp.):
   0304 20 35                                                                                 RC N  6
                      Of the species Sebastes marinus
   ex0304 20 371
                      Other                                                                   RC N  6
                               - Of the species Sebastes mentella
   0304 20 41    —   Of whiting (Merlangus merlangus)
CO
 ---pagebreak---                                                          TABLE I
   CN Code                                Description                       Rate of duty Tariff quota
                                                                                         TQ in tons
                                                                                         reference
                                                                                         ceiling R.C.
   0304 20 43    —  Of ling (Molva spp.)                                                     RC N   8
                 —  Of mackerel (Scomber scombrus, Scomber australasicus,
                    Scomber japonicus) and of fish of the species
                    Orcynopsis unicolor:
   ex0304 20 53      Other
                              - Of mackerel of the species Scomber scombrus
   0304 20 71
                 —  Of plaice (Pleuronectes platessa)
   0304 20 75                                                                               RC N  1
                 —  Of herring (Clupea harengus, Clupea pallasii)
   0304 20 97
                 —  Other                                                                    RC N 9
                              - Of blue whiting                                          Statistical surv
   0304 90                    - Other
   ex0304 90 101 — Other:
                                                                                             TQ N° 1
                 —  Of freshwater fish                                                       TQ N° 2
                             •- Of trout (Salmo gairdneri)
                              - Of salmon (Salmo salar)
                 —  Other:
   0304 90 21
                     Of herring (Clupea harengus, Clupea pallasii):
                      From 15 February to 15 June
CO
 ---pagebreak---                                                      TABLE I
   CN Code                            Description                     Rate of duty Tariff quota
                                                                                   TQ in tons
                                                                                   reference
                                                                                   ceiling R.C.
   0304 90 25     From 16 June to 14 February                                         RC N
                 Of cod (Gadus morhua, Gadus ogac, Gadus
                 macrocephalus) and of fish of the species Boreogadus
                 saida:
   ex0304 90 38]  Of cod of the species Gadus morhua
   0304 90 41    Of coalfish (Pollachius virens)                                       RC N
   0304 90 45    Of haddock (Melanogrammus aeglefinus)
   0304 90 57    Of monkfish (Lophius spp.)
CO
*o
 ---pagebreak---                                                         TABLE I
   CN Code                               Description                      Rate of duty Tariff quota
                                                                                       TQ in tons
                                                                                       reference
                                                                                       ceiling R.C.
   0304 90 59       Of blue whiting (Micromesistius poutassou or Gadus
                    poutassou)                                                             RC N  9
   0304 90 97       Other                                                              Statistical surv
   0305         Fish, dried, salted or in brine; smoked fish, whether or
                not cooked before or during the smoking process; fish
                meal fit for human consumption:
   0305 10 00   - Fish meal 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 :
                -  Of cod (Gadus morhua, Gadus ogac, Gadus macrocephalus)
                   and of fish of the species Boreogadus saida:
   ex0305 30 la     Other
                             - Of cod of the species Gadus morhua
   ex0305 30 3d —  Of Pacific salmon (Oncorhynchus spp.), Atlantic salmon
                   (Salmo salar) and Danube salmon (Hucho hucho), salted
                   or in brine
                             - Of Atlantic salmon (Salmo salar)
   0305 30 50   —  Of lesser or Greenland halibut (Reinhardtius
                   hippoglossoides), salted or in brine                                    RC N
CO
CO
 ---pagebreak---                                                         TABLE I
   CN Code                               Description                    Rate of duty Tariff quota
                                                                                     TQ in tons
                                                                                     reference
                                                                                     ceiling R.C.
   0305 30 90   —  Other                                                                 RC N  4
                — Smoked fish, including fillets:
   ex0305 43 00 —  Pacific salmon (Oncorhynhcus spp.), Atlantic salmon
                   (Salmo salar) and Danube salmon (Hucho hucho)
                             - Atlantic salmon (Salmo salar)                             RC N  5
   0305 42 00   -- Herrings (Clupea harengus, Clupea pallasii
   0305 49      —  Other:
   0305 49 10       Lesser or Greenland halibut (Reinhardtius
                                                                                         RC N  5
                    hippoglossoides)
   0305 49 20                                                                            RC N° 5
                    Atlantic halibut (Hippoglossus hippoglossus)
   ex0305 49 30
                    Mackerel (Scomber scombrus, Scomber australasicus,
                    Scomber japonicus):                                                  RC N° 5
                             - Mackerel (Scomber scombrus)
   ex0305 49 40     Trout (Salmo trutta, Salmo gairdneri, Salmo clarki,
                    Salmo aguabonita, Salmo gilae):
                             - Trout (Salmo gairdneri)                                   RC N° 5
   0305 49 50       Eels (Anguilla spp.)                                                 RC N° 5
   0305 49 90       Other                                                                RC N° 5
                — Dried fish, whether or not salted but not smoked:
CO
 ---pagebreak---                                                         TABLE I
   CN Code                               Description                     Rate of duty Tariff quota
                                                                                      TQ in tons
                                                                                      reference
                                                                                      ceiling R.C.
   0305 51      —  Cod (Gadus morhua, Gaduc ogac, Gadus macrocephalus):
   ex0305 51 10     Dried, unsalted
                             - Of cod of the species Gadus morhua
   ex0305 51 90     Dried, salted
                             - Of cod of the species Gadus morhua
                - Fish, salted but not dried or smoked and fish in brine
CO
 ---pagebreak---                                                          TABLE I
   CN Code                                 Description                      Rate of duty Tariff quota
                                                                                         TQ in tons
                                                                                         reference
                                                                                         ceiling R.C.
   ex0305 61 00 —   Herrings (Clupea harengus, Clupea pallasii)
                               salted herrings (Clupea harengus, clupea
                               pallasii)                                                     TQ N 4 or
                                                                                             RC N° 12
   ex0305 62 00J    Cod (Gadus morhua, Gadus ogac, Gaduc macrocephalus)
                               - Of cod of the species Gadus morhua
   0305 69          Other :
   0305 69 90       • Other                                                                  RC N  10
   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:
                 - Frozen:
   0306 13       —  Shrimps and prawns:
   0306 13 10        Of the family pandalidae                                                RC N  11
   0306 13 90        Other
                                                             «
   0306 19
                 —  Other:
   0306 19 30
                     Norway lobsters (Nephrops norvegicus)
CO               - Not frozen:
 ---pagebreak---                                                       TABLE I
   CN Code                              Description                      Rate of duty Tariff quota
                                                                                      TQ in tons
                                                                                      reference
                                                                                      ceiling R.C.
   0306 29    —  Other:
   0306 29 30     Norway lobsters (Nephrops norvegicus)
   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:
              — Scallops, including queen scallops, of the genera Pecten
                Chlamys or Placopecten:
   0307 21 00 —  Live, fresh or chilled
   0307 29    —  Other:
   0307 29 10     Coquilles St. Jacques (Pecten maximus), frozen
   0307 29 90     Other
   0511       Animal products not elsewhere specified or included;
              dead animals of Chapter 1 or 3, unfit for human
              consumption:
              - Other:
   0511 91    —  Products of fish or crustaceans, molluscs or other
                 aquatic invertebrates; dead animals of Chapter 3:
CO
 ---pagebreak---                                                           TABLE I
   CN Code                                 Description                      Rate of duty Tariff quota
                                                                                         TQ in tons
                                                                                         reference
                                                                                         ceiling R.C.
   0511 91 90   :     Other
   1604         i Prepared or preserved fish; caviar and caviar substitutes
                I prepared from fish eggs:
                ; - Fish, whole or in pieces, but not minced:
   exl604 11 ooi - - Salmon:
                                - Atlantic salmon (salmo salar)                              TQ N  3
   1604 12        —  Herrings:
   1604 12 10         Fillets, raw, merely coated with batter or bread-
                      crumbs, whether or not prefried in oil, deep frozen                    TQ N  4
   exl604 12 90       Other:
                                - Spiced and/or in acid                                      TQ N 4 or
                                                                                             RC N° 12
   1604 15       —   Mackerel:
   exl604 15 101      Of the species Scomber scombrus and Scomber japonicus
                                - Of the species Scomber scombrus                            TQ N  4
   1604 19       - - Other:
CO
00
 ---pagebreak---                                                          TABLE I
   CN Code                                 Description                   Rate of duty Tariff quota
                                                                                      TQ in tons
                                                                                      reference
                                                                                      ceiling R.C.
   exl604 19 10 - - - Salmonidae, other than salmon:
                               - Trout (salmo gairdneri)                                  TQ N° 3
                    Other:
   1604 19 91        Fillets, raw, merely coated with batter or bread-
                     crumbs, whether or not prefried in oil, deep frozen                  TQ N° 4
   1604 19 99        Other                                                                TQ N° 4
   1604 20      - Other prepared or preserved fish:
   exl604 20 10 - - Of salmon:
                              - Of Atlantic salmon (salmo salar)                          TQ N  3
   exl604 20 30 - - Of salmonidae, other than salmon
                              - Of trout (salmo gairdneri)                                TQ N° 3
   exl604 20 50 - - Of sardines, bonito, mackerel of the species Scomber
                    scombrus and Scomber japonicus, fish of the species
                    Orcynopxis umicolor:
                                - Of mackerel of the species scomber
                                  scombrus                                                 TQ N   4
   1604 20 90   - - Of other fish                                                         TQ N° 4
   1605         Crustaceans, molluscs and other aquatic invertebrates,
                prepared or preserved:
   1605 20 00   - Shrimps and prawns                                                     TQ N° 5
CO
 ---pagebreak---                                                       TABLE I
  CN Code                               Description                   Rate of duty Tariff quota
                                                                                   TQ in tons
                                                                                   reference
                                                                                   ceiling R.C.
  exl605 40 0d - Other crustaceans:
                              - Nephrops norvegicus                                    TQ N8 5
  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
O
 ---pagebreak---                                                        TABLE II
   CN Code                                Description                      Rate of duty  Tariff quota
                                                                                         TQ in tons
                                                                                         reference
                                                                                         ceiling R.C.
   0301         Live fish:
                 - Other live fish:
   ex0301 91 0d — Trout (Salmo trutta, Salmo gairdneri, Salmo clarki,
                    Salmo aguabonita, Salmo gilae)                                          TQ n8 1(1)
                             - Trout (Salmo gairdneri)                                      700 T
   0302         Fish, fresh or chilled, excluding fish filets and other
                fish meat of heading No 0304:
                - Salmonidae, excluding livers and roes:
   ex0302 11 0d — Trout (Salmo trutta, Salmo gairdneri, Salmo clarke,
                    Salmo aguabonita, Salmo gilae):
                             - Trout (Salmo gairdneri)
   0303         Fish, frozen, excluding fish fillets and other fish meat
                of heading No 0304:
                - Other salmonidae, excluding livers and roes:
   ex0303 21 0d — Trout (Salmo trutta, Salmo gairdneri, Salmo clarki,
                    Salmo aguabonita, Salmo gilae):
                             - Trout (Salmo gairdneri)
   (1) 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 the respective tariff quota of
   reference ceiling.
£»
 ---pagebreak---                                                      TABLE II
CN Code                                 Description                      Rate of duty Tariff quota
                                                                                      TQ in tons
                                                                                      reference
                                                                                      ceiling R.C.
0304          Fish fillets and other fish meat (whether or not minced),
              fresh, chilled or frozen:
0304 10       - Fresh or chilled:
              — Fillets:
                  Of freshwater fish:
ex0304 10 11       Of trout (Salmo trutta, Salmo gairdneri, Salmo
                   clarki, Salmo aguabonita, Salmo gilae):
                           - Of trout (Salmo Gairdneri)
0304 20       - Frozen fillets:
              — Of freshwater fish:
ex0304 20 llj     Of trout (Salmo trutta, Salmo gairdneri, Salmo clarki,
                  Salmo aguabonita, Salmo gilae):
                           - Of trout (Salmo gairdneri)
0304 90       - Other:
ex0304 90 ld —   Of freshwater fish:
                           - Of trout (Salmo gairdneri)
 ---pagebreak---                                                           TABLE II
    CN Code                                 Description                     Rate of duty Tariff quota
                                                                                         TQ in tons
                                                                                         reference
                                                                                         ceiling R.C.
    0301          Live fish:                                                                TQ N   2(1)
                  - Other live fish:                                                        4900 T
    0301 99       - - Other:
                  - - - Freshwater fish:
    ex0301 99 13j - - - - Pacific salmon (Oncorhynchus spp.), Atlantic
                          salmon (Salmo salar) and Danube salmon (Hucho
                          hucho):
                                - Atlantic salmon (salmo salar)
    0302          Fish, fresh or chilled, excluding fish fillets and other
                  fish meat of heading No 0304:
                  - Salmonidae, excluding livers and roes:
    ex0302 12 0d  - - Pacific salmon (Oncorhynchus spp.), Atlantic salmon
                      (Salmo salar) and Danube salmon (Hucho hucho):
                                 - Atlantic salmon (salmo salar)
    0303          Fish, frozen,  excluding fish fillets and other fish meat
                  of heading No 0304:
                  - Other salmonidae, excluding livers and roes:
    ex0303 22 0d - - Atlantic salmon (Salmo salar) and Danube salmon
                      (Hucho hucho):
                                 - Atlantic salmon (salmo salar)
    (1) Figures refer to the commercial presentation whole and gutted. For imports falling under HScode
j. 0304 a coefficient of 2 shall be applied for quantities drawn from the respective tariff quota of
£ . reference ceiling.
 ---pagebreak---                                                     TABLE II
CN Code                                Description                     Rate of duty Tariff quota
                                                                                    TQ in tons
                                                                                    reference
                                                                                    ceiling R.C.
0304         Fish fillets and other fish meat (whether or not minced),
             fresh, chilled or frozen:
0304 10      - Fresh or chilled:
             - - Fillets:
             - - - Of freshwater fish:
ex0304 10 13 - - - - Of Pacific salmon (Oncorhynchus spp.), Atlantic
                     salmon (Salmo salar) and Danube salmon (Hucho
                     hucho):
                           - Of Atlantic salmon (salmo salar)
0304 20      - Frozen fillets:
             - - Of freshwater fish:
ex0304 20 13 - - - Of Pacific salmon (Oncorhynchus spp.), Atlantic
                   salmon (Salmo salar) and Danube salmon (Hucho
                   hucho):
                           - Of Atlantic salmon (salmo salar)
0304 90      - Other:
ex0304 90 ld - - Of freshwater fish:
                           - Of Atlantic salmon (salmo salar)
 ---pagebreak---                                                         TABLE I I
    CN Code                               Description                      Rate of duty Tariff quota
                                                                                        TQ in tons
                                                                                        reference
                                                                                        ceiling R.C.
    1604         Prepared or preserved fish; caviar and caviar substitutes
                 prepared from fish eggs:
                 - Fish, whole or in pieces, but not minced:
    exl604 11 00 - - Salmon:                                                               TQ N° 3
                                                                                0          400 T
                               - Atlantic salmon (salmo salar)
    1604 19
                 - - Other:
    exl604 19 10
                 - - - Salmonidae, other than salmon:                           0
    1604 20                    - Trout (salmo gairdneri)
    exl604 20 10 - Other prepared or preserved fish:
                                                                                0
                 - - Of salmon:
    exl604 20 30               - Of Atlantic salmon (salmo salar)
                 - - Of salmonidae, other than salmon                           0
                               - Of trout (salmo gairdneri)
Crt
 ---pagebreak---                                                        TABLE II
   CN Code                               Description                      Rate of duty Tariff quota
                                                                                       TQ in tons
                                                                                       reference
                                                                                       ceiling R.C.
   1604         Prepared or preserved fish; caviar and caviar substitutes                 TQ N 4
                prepared from fish eggs:                                                  2000 T
                - Fish, whole or in pieces, but not minced:
   1604 12      - - Herrings:
   1604 12 10   - - - Fillets, raw, merely coated with batter or bread-
                      crumbs, whether or not prefried in oil, deep
                      frozen
   1604 15      - - Mackerel:
   exl604 15 ld - - - Of the species Scomber scombrus and Scomber
                      japonicus:
                              - Of scomber scombrus
   1604 19      - - Other:
                - - - Other:
   1604 19 91   - - - - Fillets, raw, merely coated with batter or
                        breadcrumbs, whether or not prefried in oil,
                        deep frozen
   1604 19 99   - - - - Other
OT
 ---pagebreak---                                                         TABLE II
    CN Code                                Description                    Rate of duty Tariff quota
                                                                                       TQ in tons
                                                                                       reference
                                                                                       ceiling R.C.
    1604 20      - Other prepared or preserved fish:
    exl604 20 5d - - Of sardines, bonito, mackerel of the species Scomber
                     scombrus and Scomber japonicus, fish of the species
                     Orcynopxis umicolor:
                                - Of mackerel of the species scomber
                                  scombrus
    1604 20 90   - - Of other fish
    1605         Crustaceans, molluscs and other aquatic invertebrates,
                 prepared or preserved:                                                   TQ N   5
    1605 20 00   - Shrimps and prawns                                                     2000 T
    exl605 40 0d - Other crustaceans:
                                - Nephrops norvegicus
HE*
 ---pagebreak---                                                           TABLE II
   CN Code                               Description                       Rate of duty  Tariff quota
                                                                                         TQ in tons
                                                                                         reference
                                                                                         ceiLling__R;C.
   0302         Fish, fresh or chilled, excluding fish fillets and other
                fish meat of heading No 0304 :                                           RC n° 1 (1)
                                                                                         2000 T
   0302 40      - Herrings (Clupea harengus, Clupea pallasii), excluding
                  livers and roes :
   0302 40 90   —  From 16 June to 14 February                                  0 (2)
   0303         Fish, frozen, excluding fish fillets and other fish meat
                of heading No 0304 :
   0303 50      - Herrings (Clupea harengus, Clupea pallasii), excluding
                  livers and roes :
   0303 50 90   —  From 16 June to 14 February                                  0 (2)
   (1) Duty exemption for herring falling within subheadings 0302 40 90, 0303 50 90, 0304 10 93,
   0304 10 98 and 0304 90 25 within the limits of a global annual tariff quota of 34 000 tonnes
   to be granted by the competent Community authorities and subject to compliance with the reference
   price.
   (2) 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 the respective tariff
^  quota of reference ceiling.
00
 ---pagebreak---                                                           TABLE II
   CN Code                               Description                      Rate of duty Tariff quota
                                                                                       TQ in tons
                                                                                       reference
                                                                                       ceiling R.C.
   0302         Fish, fresh or chilled, excluding fish fillets and other
                fish meat of heading No 0304 :                                         RC n° 2
                                                                                       3000 T
   0302 64      —  Mackerel (Scomber scombrus, Scomber australasicus,
                   Scomber japonicus) :
   ex0302 64 90     From 16 June to 14 February :
                          - Mackerel (Scomber scombrus)                        0
   0304         Fish fillets and other fish meat (whether or not minced),
                fresh, chilled of frozen :                                             RC n° 3
                                                                                       25000 T
   0304 20      - Frozen fillets :
   0304 20 31   -  Of coalfish (Pollaechius virens)                            0
   0304 90      - Other :
   0304 90 41       Of coalfish (Pollachius virens)                            0
£*
CO
 ---pagebreak---                                                           TABLE II
  CN Code                                Description                    Rate of duty Tariff quota
                                                                                     TQ in tons
                                                                                     reference
                                                                                     ceiling R.C.
  0305         Fish, dried, salted or in brine; smoked fish, whether or
               not cooked before or during the smoking process; fish
               meal fit for human consumption :                                      RC n° 4
                                                                                     5000 T
  0305 30      — Fish fillets, dried, salted or in brine, but not
                 smoked :
  0305 30 50   —  Of lesser of Greenland halibut (Reinhardtius
                  hippoglossoides), salted or in brine                       0
  0305 30 90   —  Other                                                      0
  0305         Fish, dried, salted or in brine; smoked fish, whether or
               not cooked before or during the smoking process; fish
               meal fit for human consumption :                                      RC n° 5
                                                                                     1000 T
               — Smoked fish, including fillets :
  ex0305 41 00 —  Pacific salmon (Oncorhynchus spp.), Atlantic salmon
                  (Salmo salar) and Danube salmon (Hucho hucho) :
                          - Atlantic salmon (Salmo salar)                    0
  0305 49      —  Other :
  0305 49 10       Lesser or Greenland halibut (Reinhardtius
                   hippoglosoides)                                           0
  0305 49 20       Atlantic halibut (Hippoglossus hippoglossus)              0
o
 ---pagebreak---                                                            TABLE II
    CN Code                                Description                      Rate of duty  Tariff quota
                                                                                          TQ in tons
                                                                                          reference
                                                                                          ceiling R.C.
    ex0305 49 30     Mackerel (Scomber scombrus, Scomber australasicus,
                     Scomber japonicus) :
                            - Mackerel (Scomber scombrus)                        0
    ex0305 49 40     Trout (Salmo trutta, Salmo gairdneri, Salmo clarki,
                     Salmo aguabonita, Salmo gilae) :
                            - Trout (Salmo gairdneri)                            0
    0305 49 50       Eels (Anguilla spp.)                                        0
    0305 49 90       Other                                                       0
    0302         Fish, fresh or chilled, excluding fish fillets and other
                 fish meat of heading No 0304 :                                           RC n° 6 (1)
                                                                                          12600 T
                 Other fish, excluding livers and roes :
    0302 69      —  Other :
                      Redfish (Sebastes spp.) :
    0302 69 31         Of the species Sebastes marinus                           0
    ex0302 69 33       Other :
                            - Of the species Sebastes mentella                   0
    (1) Figures refer to the commercial presentation whole and gutted. For imports falling under
çjl HS code 0304 a coefficient of 3 shall be applied for quantities drawn from this reference ceiling
 ---pagebreak---                                                        TABLE II
CN Code                                Description                     Rate of duty Tariff quota
                                                                                    TQ in tons
                                                                                    reference
                                                                                    ceiling R.C.
0303         Fish, frozen, excluding fish fillets and other fish meat
             of heading No 0304 :
             - Other fish, excluding livers and roes :
0303 79      —  Other :
                 Saltwater fish :
                  Redfish (Sebastes spp.) :
0303 79 35         Of the species Sebastes marinus
ex0303 79 37       Other :
                        - Of the species Sebastes mentella
0304         Fish fillets and other fish meat (whether or not minced),                 RC N
             fresh, chilled or frozen :
0304 10      - Fresh or chilled
             -  Fillets
                 Other:
ex0304 10 39      Other:
             - Of red fish:
 ---pagebreak---                                                           TABLE II
   CN Code                                Description                     Rate of duty Tariff quota
                                                                                       TQ in tons
                                                                                       reference
                                                                                       ceiling R.C.
   0304 20      - Frozen fillets :                                                        RC N° 6
                —  Of redfish (Sebastes spp.) :
   0304 20 35       Of the species Sebastes marinus
   ex0304 20 37     Other :
                           - Of the species Sebastes mentella
   0304         Fish fillets and other fish meat (whether or not minced),
                fresh, chilled or frozen :                                             RC n 7
                                                                                       3000 T
   0304 10      - Fresh or chilled :
                —  Fillets :
                    Other :
   ex0304 10 39      Other
                           - Other, excluding red fish
CR
CO
 ---pagebreak---                                                       TABLE  II
CN Code                               Description                      Rate of duty Tariff quota
                                                                                    TQ in tons
                                                                                    reference
                                                                                    ceiling R.C.
0304         Fish fillets and other fish meat (whether or not minced),
             fresh, chilled or frozen :                                             RC n° 8
                                                                                    550 T
0304 20      - Frozen fillets :
0304 20 43   —  Of ling (Molva spp.)                                        0
0304         Fish fillets and other fish meat (whether or not minced),
             fresh, chilled or frozen :                                             RC n° 9
                                                                                    1800 T
0304 20      - Frozen fillets :
ex0304 20 97 -  Other :
                                                                            0
                       - Of blue whiting
0304 90
             - Other :
0304 90 59
                 Of blue whiting (Micromesistius poutassou or Gadus         0
                 poutassou)
 ---pagebreak---                                                          TABLE II
    CN Code                             Description                     Tariff quota
                                                                        TQ in tons
                                                                        reference
                                                                        ceiling R.C.
    0305       Fish, dried, salted or in brine; smoked fish, whether or
               not cooked before or during the smoking process; fish
               meal fit for human consumption :                         RC n 10
                                                                        1400 T
               - Fish, salted but not dried or smoked and fish in
                 brine :
    0305 69    —  Other :
    0305 69 90     Other
    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 :                                                  RC n 11
                                                                        11000 T
               - Frozen :
    0306 13    —  Shrimps and prawns :
    0306 13 10     Of the family pandalidae
C7!
or
 ---pagebreak---                                                          TABLE II
    CN Code                             Description                       Rate of duty Tariff quota
                                                                                       TQ in tons
                                                                                       reference
                                                                                       ceiling R.C.
    0305       Fish, dried, salted or in brine; smoked fish whether or
               not cooked before or during the smoking process; fish meal
               fit for human consumption:
               - fish, salted but not dried or smoked and fish in brine:                 RC N° 12
    0305 61 00 —  Herrings (clupea harengus, clupea pallasii)                  0
    1604       Prepared or preserved fish, caviar or caviar substitutes
               prepared from fish eggs:                                                   500 T
               - Fish, whole or in pieces, but not minced
    1604 12    —  Herrings
    1604 12 90     Other                                                       0
CJt
 ---pagebreak---                                                      TABLE II
CN Code                             Description                     Rate of duty Tariff quota
                                                                                 TQ in tons
                                                                                 reference
                                                                                 ceiling R.C.
0302       Fish, fresh or chilled, excluding fish fillets and other
           fish meat of heading No 0304 :
           — Flat fish (Pleuronectidae, Bothidae, Cynoglossidae,                 Statistical
             Soleidae, Scophthalmidae and Citharidae), excluding                 surveillance
             livers and roes :
0302 29    —  Other :
0302 29 90     Other
           -Other fish, excluding livers and roes :
0302 69    —  Other :
               Saltwater fish :
0302 69 98      Other
0303       Fish, frozen, excluding fish fillets and other fish meat
           of heading No 0304 :
           — Other fish, excluding livers and roes :
0303 79    —  Other :
               Saltwater fish :
0303 79 98      Other
 ---pagebreak---                                                           TABLE II
   CN Code                                Description                     Rate of duty Tariff quota
                                                                                       TQ in tons
                                                                                       reference
                                                                                       ceiling R.C.
   0304         Fish fillets and other fish meat (whether or not minced),
                fresh, chilled or frozen :
   0304 20      - Frozen fillets :
   ex0304 20 97 —  Other :
                           - Other excluding blue whiting
                - Other :
   0304 90
                —  Other :
                    Other
   0304 90 97
00
 ---pagebreak---                         PROTOCOL NO 2
concerning products subject to special arrangements to take
account of differences in the costs of agricultural products
                    incorporated therein
                          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, the Agreement does not
preclude :
(i) the levying, upon import, of a variable component or
     fixed amount, or the application of internal price
     compensation measures ;
(ii) the application of measures adopted upon export.
                          Article 2
3.   The Community as constituted on 31 December 1985 shall
     apply the customs duties on imports originating in
     Faroe Islands on 1 January 1992 as indicated in the
     table annexed to this Protocol.
2.   The Kingdom of Spain shall progressively abolish the
     difference between the basic duties on 1 January 1985
     to products originating in the Faroe Islands and the
     duties applicable on 1 January 1992 which are shown in
     the table annexed to this Protocol, in accordance with
     Article 31 (1) and (3) of the Act of Accession.
3.   The Portuguese Republic shall progressively abolish the
     difference between the basic duties on 1 January 1985
     to products originating in the Faroe Islands and the
     duties applicable on 1 January 1992 which are shown in
     the table annexed to this Protocol, in accordance with
     Article 190 (1) and (2) of the Act of Accession.
                          Article 3
The Faroe Islands shall abolish tariffs and duties on
imports of processed agricultural products originating in
the Community on the date specified in Article 5 and Annex
II to this Agreement with the exceptions mentioned in
Protocol 4, Table II.
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.
                                                             59
 ---pagebreak---                                                            •TABLE
                                           EUROPEAN ECONOMIC COMMUNtTY
   CNeadc                                                Dctcnpuon                                            HitcW
                                                                                                              du*> r*«
  0*03        Butrcrrr.ili.. curdled milk and cream, yogurt, kephir and other fermented or acidified mile anc
              cream, whether or not concentrated or containing added sugar or other sweetening rr.j-c: or
              Aavocrcc or containing added fruit or cocoa:
  0403 10     - Yofurr
  0403 10 51  - - ria»ocrcc or containing added fruit or cocoa                                                 MOB
       to »9
n AD F/M     Aridranwil dur» on flour
  AD SO.     Addaoanal dur* or. sugar
  MOB        Variable component
                                                                                                                      60
 ---pagebreak---  CS code        I                                                     Description                                                Kate of
                                                                                                                                  durv
0403 90                - Other .                                                                                            I
0403 90 71             - - Flavoured or containing added fruit or cocoa                                                           MOB
          to 99  !
                        Vegetables uncookec or cooked by stcarr.mg or boiimg in »a:cr . frozen
0*10
                        -    Sweet com                                                                                            MOB
0?;o 40
                         Vegetables provisionally preserved (for example, by sulphur dioxide gas. m brine, ir sulphur
(Tit                     water or m other preservative solutions), but unsuitable in that state for immediare
                         consumption
 ( T i l 90              - Other vegetables . rruxrurcs of vegetable! :
                         - - Vegetables
 0"U 90 30         : - - - Sweet corn                                                                                              MOB
                   i
  151?             ! Industrial mor.ocarbos.vlic farrv acids, acid oil» frorr. refining, industrial :arr> alcohol*
                   !
                   J - Incusmai monocarborylic fatty acta»
  1319 13          ! - - Tall oil farry acids                                                                                      Free
  1702              ! Other sugars, including chemically pure iactosc. maltose. glucose and fructose. <r. solid rorrr .
                    • sugar svrups not containing added flavocnng or colouring maner. artificial honev. whether or
                     : no» mixed with narural honey . carame!
  r o : 50           ! - Chemically pvrz fructose                                                                                  Free
  1702 90            ' - Other, including invert sugar
                     I
  1702 90 10         j - - Chemicali- pure maltose                                                                            ;     Free
   170*              ! Sugar confectioncr>. .including white chocolate), not containing cocoa                                 I
                     !                                                                                                         i
   l r 0 * 10         '• - Chewing gurr.. whether or not sugar-coated                                                         1    MOB
                                                                                                                                 max 23 X
                      I                         •                                                                              I
   \"0* 90            j - Ot.-.sr                                                                                              j
   1704 90 10         [ - -      Liquorice extract containing more t'ran 10 X b> weight of sucrose bu: no: ro-.tair.:ng arhcr j     Free
                      !          added substances
    1~04 «*C 30               -  M !>>iir . fc- \ > / . 3 : t                                                                       MOB
                                                                                                                                 ma» 2" X
                                                                                                                                 - AD S/Z
    1~0* 90 51         i - - Other                                                                                                  MOB
                                                                                                                                 taut 27 X
                                                                                                                                 - AD S/Z
    1106                | Chocolate and other food preparation» containing cocoa:
     110* 10            . ' CIX-OJ po — Jci. vuninmrij; added s u n : or other tweetenmg mitirr                                     MOB
     ISO» 20             ! - O'hcr preparations in blocks or slabs weighing more than 2 kg or m liquid, pasre. powder,
                               granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg
     1*06 20 10          : - - Containing 31 % or more by weight of cocoa butter or containing a combined wcighr of
                                  31 X or more of cocoa butter and milk fat                                                         MOB
                                                                                                                                  max 2~ X
                                                                                                                                  - AD S/Z
      1106 20 30                  Containing a combined weight of l i X or more, but less than 31 X o:' cocoa butter and
                                  rr.ilk fat                                                                                         MOB
                                                                                                                                  max 27 %
                                                                                                                                  - AD S/Z
                          1
                                  Other
      1S06* 20 50                     Ce rua I-: T. g \î X o: more by weight of cocoa burtc:                                         MOB
                                                                                                                                  max 27 %
                                                                                                                                  * AD S/Z
      1806 20 "0          '•           Chocolate rr.::k crumb                                                                            MOB
                                                                                                                                         61
 ---pagebreak---                                                                Description                                                      Rattof
 o*                                                                                                                               dur»
1106 20 90                    Otncr                                                                                              MOB
                                                                                                                             max 2 " X
                                                                                                                             - AD S/Z
                  - Other, m biocks. siabs or bars
1106 31           - - Fiiied                                                                                                     MOB
                                                                                                                             max 2~ X
                                                                                                                             - AD S.Z
1106 32            - - Not filled                                                                                                 MOB
                                                                                                                              max 2* X
                                                                                                                              - AD S/Z
1106 90            -    Other:
IBM 90 11          - - Chocolate and chocolate products                                                                           MOB
       CD 39                                                                                                                  max 27 X
                                                                                                                              • AD S/Z
 1106 90 50        - - Sugar confectionery and substitutes therefor made from sugar substitution products.
                          containing cocoa                                                                                         MOB
                                                                                                                               max 27 X
                                                                                                                               • AD S 'Z
 1106 90 60               Spreads containing cocoa :
                          - Ir. immediate packings of a net capacity of 1 kg or less                                               MOB
                                                                                                                               max 2T X
                                                                                                                               - AD S Z
                           - Other                                                                                                     MOB
                                                                                                                                max 2 r X
                                                                                                                                - AD S/Z
  1106 90 "0    j - - Preparations containing cocoa for making beverages:
                            - In immed.atc packing* o: a net capaciry of 1 kg or less                                              MOB
                                                                                                                                max 2" X
                                                                                                                                • ADSZ
                            - Other                                                                                                    MOB
                                                                                                                                max 2~ X
                                                                                                                                 - AD S Z
  111* ^ J *0    i - - O'.nc:
                 I                                                                                                                  MOS
                 I           - Ir. immediate packings of a net capacity of \ k.g or less                                         max 27 X
                                                                                                                                 - AD S/Z
                              - OtS(                                                                                                   MOB
                                                                                                                                 ma* 2" X
                                                                                                                                 - AD S Z
   1901               Mait extract. food preparations of flour, meal, starch or malt extract, not containing cocos       |
                       powder or containing cocoa powder in a proportion by weight of less than 50 X . nor else-wherr    !
                       •pcnScc or included ; food préparations of goods of heading Nos 0401 to 0-*O*. not containing     !
                       cocoa powder or containing cocoa powder in a proportion by weight of less than 10 X . no:         j
                       elsewhere specified or included                                                                   !           MOB
   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 i
                       not prepared.
                       - Uncooked pasta, not sruffed or otherwise prepared.
   1902 11             - - Containing cgjs                                                                                !          MOB
                                                                                                                           i
    1902 IS                    Other                                                                                      I          MOB
    1902 20             - Srurfcc pasta, whether o: not cooked o: otherwise prepared:
    1902 20 ? :      . - - Cthcr                                                                                                     MOS
                                                                                                                                       62
 ---pagebreak---  CS coot                                                          Descnption                                                      Rare of
                                                                                                                                    dur»
1902 30            - Other pasta                                                                                                    MOB
1902 40            - Couscous                                                                                                       MOB
1903               Tapioca and substitutes therefor prepared from starch, in the form of flakes, grams, pcar-.s.
                   siftinp or in similar forms                                                                                      MOB
190*               Prepared foods obtained by the swelling or roasting of c créais or cereals products .'for example.
                   corn flakes- ; cereals, other than maire (corn), in grain form, pre-cooked or otherwise ptx?*rsc                 MOB
1905                Bread, pasrry. cakes, biscuits and other bakers* wares, whether or not containing cocoa.
                    communion wafers, em pry cachets of a kind suitable for pharmaceutical use. sealing wafers, nee
                    paper and similar products:
 1905 10            - Crispbrcad                                                                                                    MOB
                                                                                                                                max 2* X
                                                                                                                                • AD F/M
 1903 20            - Gingerbread and the like                                                                                      MOB
 1905 30            — Sweet biscuits, waffles and wafers                                                                            MOB
                                                                                                                                 max 35 X
                                                                                                                                 - AD S/Z
 1905 *0       t - Rusks, toasted bread and similar toasted products                                                                 MOB
 1905 90       j - Other-
 1905 90 10    Î - - V.arros                                                                                                         MOB
                                                                                                                                 max 20 X
               I
                                                                                                                                 - AD F'M
 1905 90 20    • - - Cammumcn wafers, empr» cachers of a kind suitable for pharmaceutical use. sealing
                           waters, n : : rape: and similar products                                                                  MOB
               :
  1905 90 3C          - - - Srrac. not containing added honey, eggs, cheese or fnu:. and containing ?v w-igh: m the
                             cr> marrer state not more than 5 X of sugar and not more than 5 X of fst                                MOB
  1905 90 *0    i - - - waffles anc wafers with a water content exceeding 10 X by weight                                             MOB
                 i
                 i
                                                                                                                                  max 30 X
                                                                                                                                  - AD F/M
  1905 90 50     • - - - Biscuits, extruded or expanded products, savoury or salted                                                  MOB
                                                                                                                                  max 30 X
                                                                                                                                  •r AD F/M
                           - Other
  1*05 90 60               - - M'lth added sweetening martrr                                                                          MOB
                                                                                                                                   max "»< X
                                                                                                                                   T AD S/Z
  1905 90 90       !            Other                                                                                        j        MOB
                                                                                                                                   max 30 X
                                                                                                                                   - AD F'M
   2001            : **• cçetahie*. rruit. nuts and other edible parts of plants, prepared or preserved bv virtcgar or acetic •
                   | ace                                                                                                      j
   2001 90          i - Otnet                                                                                                I
                                                                                                                              I
                                                                                                                                      MOB
   2001 90 30       ! - - Sweet com ;Zea mays »ir. saccharic».                                                                |
   200*             ! Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen                 ,
   200* 10          j - Potatoes.                                                                                             j
                                                                                                                              :
                    i       Other
                    I                                                                                                         ;       MOB
   20O4 10 91       !         In the rorrr. of flour, meal or flake-;
    200* 9G         Il - Other vegetables and mixtures of vejetibics :
    200* 90 1C          - - S wee: com Zca mays var. saccharara                                                                        M05
    2005                Other veçrtacics prepared or preserved »•: ...-%nse than by vinegar or acetic acid, not frctcr
    2005 20             - Potatoes
                                                                                                                                           63
 ---pagebreak---  CNcode                                                       Dcacripooa                                              Rase of
2005 20 10     - - In rise form of flour, meal or flaxes                                                              MOB
2005 BO        - Sweet corn (Zea mays var. sacrharata)                                                                 MOB
2008           Fruit, nuo and ocher edible parts of plants, otherwise prepared or preserved, whether or not
               containing added sugar or ocher sweetening matter or spirit, DOC elsewhere specified or inducted :
               — Other, including mixtures ocher than chose of subheasding 200S 19:
200199         - -     Other:
                — — — Not containing added spirit:
                —          Not containing added sogax:
 200199 15      —             Maize (corn), ocher than sweet corn (Zea mays rax. saccharara)                           MOB
 2101           Extracts, essences and conccncraces, of coffee, tea or mate and preparations with a basis of these
                products or with a basis of rpffrr. tea or mace; roasted ^ " " " t and orhrr roasted "^ft*^
                sobsxitnses, and extracts, essences and concentrâtes thereof:
 2101 10        — Extracts, essences and concentrates, of coffee, and preparations with a basis of these extracts,
                    essences or concentrates or with a basis of coffee :
                — — Prcparaoons :
 2101 10 99                                                                                                             MOB
 2101 20        - Extracts, essences and corse entrâtes, of tea or marc, and prcparaoons wich a basts of these
                    cam acta, essences or concentrates or with a basis of tea or mate :
 2101 20 90     - - Other                                                                                               MOB
  2101 30        - Roasted chiccry and other roasted coffee substitutes, snd extracts, essences and concentrates
                     thereof:
                        Roasted chicory and ocher roasted coffee substitutes:
  2101 30 19                                                                                                            MOB
                          Other
                        Extracts, rtsrnrrs and concentrates of roasted chicory and other roasted coffee suosxxruxes :
  2101 30 99                                                                                                             MOB
                 •        Other
  2102            Yeasts (active or inactive) ; other single-cell micro-organisms, dead (but not including vacones of
                  beading N o 3002} ; prepared baking powders :
   2102 10        - Active yeasts :
   2102 10 31           Bakers* yeast                                                                                    MOB
         m 39
   2102 20        - inactive yeasts : ocher single-cell micro-organisms, dead :
   2102 20 11     - - Inactive yeasts                                                                                    Free
         eo 19
   2103            Sauces and preparations therefor; mixed condiments and m ' v - * seasonings. mustard flour and
                   mead and prepared mustard:
    2103 10        - Soya sauce                                                                                          Free
    2103 20        - Tomato ketchup and ocher tomato sauces                                                              Free
    2103 90        - Other                                                                                               Free
    2104            Soups and broths and preparations therefor; homogenized composite food prcparaoons:
    2104 10         - Soups and broths znd preparations therefor                                                          Free
                                                                                                                              64
 ---pagebreak---     CN                                                           Description                                               laof
                                                                                                                             d-ry
  2105               Ice cream and ocher edible ice, whether or not containing cocoa                                        MOB
                                                                                                                          max 27 %
                                                                                                                          + AD S/Z
   2106              Food preparations not elsewhere specified or included:-
   2106 10           - Protein concentrates and textured protein substances:
   2 1 0 ( 1 0 90    - -    Other                                                                                           MOB
   21Q4 90           - Other:
   2106 90 10        - - Cheese fondues                                                                                     MOB
                                                                                                                             25 ECU/
                                                                                                                         100 k g / n e t
                            Other:
ex 2106 90 91         - - - Containing no m ilk fart, milk proteins, sucrose, isoglucote. glucose or starch or
                              containing less than IJ % milkfat, US X milk proteins, 5 X sucrose ur isocjucoac, 5 X
                              glucose or starch :
                              - Hydrolysates of proteins ; autolysates of yeast                                             Free
    2106 90 99                Other
                              - Containing 26 X or more by weight of roilkfats:
                                  - In immediate parkings of a net capacity of 1 kg or less                                  MOB
                                  - Other
                               - Other                                                                                        MOB
    2202               Waters, including mineral waters and aerated waters, containing added sugar or ocher
                       rwcetentng matter or flavoured, and ocher non-alcoholic beverages, not including fruit or
                       vegetable juices of heading N o 2009 :
    2202 10            - Waters, including mineral waters and aerated waters, containing added sugar or ocher
                          sweetening matter or flavoured                                                                     Free
     2202 90           - Other:
   ; 2202 90 10        - - Not containing products of heading Nos 0401 to 0404 or fat obtained from products of
                             heading Nos 0*01 to 0404:
                             - Containing sugar (sucrose or invert sugar)                                                    Free
     2202 90 91              Other                                                                                            MOB
              to 99
     2203               Beer made from malt                                                                                  Free
     2205               Vermouth and ocher wine of fresh grapes flavoured with plants or a romane substances                 Free
     220S               Undcnarured ethyl alcohol of an alcoholic srrcngrh by volume of less than 10 X vol; spirits,
                        liqueurs and other spirituous beverages ; compound alcoholic preparations of a kind used for the
                        manufacture of beverages : -
      220190            - Other:
                        - - Other spirituous beverages in containers holding:
                                2 I or less :
      2 2 0 1 9 0 55    -           Liqueurs:
                                   - Containing eggs or egg yolks and/or sugar (sucrose or invert sugar)                    ECU l / %
                                                                                                                              vol/y
                                                                                                                           • ECU «VU.
  6 x 2 2 0 1 9 0 59            - Other spirituous beverages :
                                    - Containing eggs or egg yolks and/or sugar (sucrose or invert sugar)                   ECU 1 / %
                                                                                                                              vol/ y
                                                                                                                            + ECU 6 / U
                                 Mort than 2 1 :
  ex 220190 79                   - Liqueurs and other spirituous beverages:
                                    - Containing eggs or egg yolks and/or sugar (sucrose or invert sugar)                   ECU \/%
                                                                                                                               vol/hi
                                                                                                                                  65
 ---pagebreak---     CN                                                           Description
   2905          Acyclic alcohols ind their halogenated, sulphonaced, nitrated or nitrouted derivatives :
                 - Other polyhydric alcohols :
   2905 43       - - Mannitol                                                                                                     MOB
   2905 44       - - D-glucatol (sorbitol)                                                                                        MOB
   2915          Saturated acyclic monocarboxylic acids and their anhydrides, halides. peroxides and
                 peroxyacsds^heir halogenated, sulphonated. nitrated or ruerosared derivanves:
                 - Fox mac acid, its sala and esters:
ex 2515 13        - - Eaters of formic acid :
                         — Eaters of mannitol and esters of sorbitol                                                        Free
                  - Eaters of acetic acid :
   2915 39        - - Other:
ex 2913 39 90               Other:
                            - Esters of mannitol and esters of sorbitol                                                     Free
ex 2915 90         - Other:
                       - Eaters of mannitol and esters of sorbitol                                                          frte
    2916           Unsarurated acyclic monocarboxylic acids, cyclic monocarboxylic acids, rhcir anhydrides,
                    hilsHn. peroxides and pcroxyacids; thar halogenated. sulphonated. mtrared or mrroaared
                   derivanves :
                   - Unsarurated acyclic monocarboxylic acids, their anhydrides, halides. peroxides, pcroxyacids
                        and their derivanves
    2916 19               Other
     2916 19 90              Other.
                             - Esters of mannitol and esters of sorbitol                                                    Free
     2917           Polvcarboxylic acids, their anhydrides, halides, peroxides and pcroxyacids. their halogenated.
                    sulphonated. nitrated or nitrosated derivanves:
                    - Acyclic polycarborylic acids, their anhydrides, halides, peroxides, perorvacids and chesr
                        derivanves:
     2917 19        - - Other
     2917 19 90               Other:
                              - ltacomc acid, its sala and esters                                                           Free
     2911            CarboxyUc acids with additional oxygen function and their anhydrides, halides, peroxides and
                     peroxyaods; their halogenated, sulphonated. nitrated or nitrosated derivanves :
                     - Carborvuc s o d s with alcohol function but without ocher oxygen function, their anhydrides,
                         halides, peroxides, pcroxyacids and their derivatives :
      2911 11        - - Lactic acid, its salts and esters                                                                   fret
      2911 14        - - O m c acid                                                                                          Free
      2911 15        - - Salts and esters of citric acid                                                                     frtt
      2911 19              Other:
    t 2911 19 90               Other:
                               - Glyceric acid, glycolic acid, saccharic acid, isosaccharic acid, hcpcasacchanc acid, their
                                 sala and esters                                                                             Free
      2532            Heterocyclic compounds with oxygen hctcro-stom(i) only:
                      - Compounds containing an unfuscd furan ring (whether or not hydrogenated) in the strucrure:
    i 2932 19               Other:
                            - Anhydrous mannitol and sorbitol compounds, excluding malrol and isomaltpl                       Free
                                                                                                                                   66
 ---pagebreak---    CNeoot                                                       Description                                                La* of
  2932 90        - Other:
  2932 90 70     - - Cyclic acetals and internal hemiacetals. whether or not with other oxygen functions, and
                         their halogenated. sulphonated. nitrated or nitrosated derivanves :
                         - a - Mcthylglucotedc                                                                             Free
: 2932 90 90             Other:
                         - Anhydrous mannitol and sorbitol compounds, excluding maltol and isomaltol                       Free
  2940            Sugars, chemically pure, other than sucrose, lactose, maltose, glucose and fructovc : sugar cchcaa
                  and sugar esters, and their salts, ocher than produce of heading Nos 2537. 2931 or 2939 :
  2940 00 90      -     Other                                                                                              Free
  2941            Axiabtoocj
  2941 10         - Penicillins and their derivanves with a pcnicillanic acid structure; sain thereof                      Free
  3001            Glands and other organs for organo-chcrapcutic uses, dried, whether or not powdered ; caxtacts
                  of glands or ocher organs or of their secretions for organo-therapeutic uses ; heparin and i o sala ;
                  other human or animal substances prepared for therapeutic or prophybcnc uscv not elsewhere
                  specified or included:
   3001 90        - Other:
                          Other.
   3001 90 91      - - - Heparin and its salrs                                                                              Free
   3501             Casein, casemates and ocher casein derivanves: casein glues:
   3501 10         -    Casein :
   3501 10 10       - - For the manufacture of regenerated textile fibres (']                                               Free
   3501 10 50       - - For indusmal uses other than the manufacture of foodstuffs or fodder (')                            Free
   3501 10 90              Other                                                                                            Free
    3501 90         - Other                                                                                                 Free
    3505             Dextrms and other modified starches (for examplcpregeiahnized or esrenficd starches) : glues
                     based on searches, or on dextrins or other modified starches :
    3505 10          - Dcxtnns and other modified «arches :
    3505 10 10       - - Dextrins                                                                                             MOB
                     - - Other modified starches:
    3505 10 50                Searches, estenfied or etherified                                                              Free
    3505 10 90                Other                                                                                           MOB
     3505 20          - Clues                                                                                                 MOB
                                                                                                                                It X
     3506             Prepared glues and ocher prepared adhesivcs,noc elsewhere specified or included: produces
                      suitable for use as glues or adhesives^put up for retail sale as glues or adbcuves, not exceeding a
                      net weight of 1 kg:
     3506 10          - Products suitable for use as glues or adhesive», put up for retail sale as glues or adhesives, not
                         exceeding a net weight of 1 kg:
 ex 3506 10 90        - - Other:
                            - With a basis of sodium silicate emulsion or of resin emulsions                                 Free
                       - Other:
      3506 99               Other:
      3506 99 90               Other:
                               - Wrrh a basis of sodium silicate emulsion or of resin emulsions                              frte
(•) Entry under dm subheading, u subfect to conditions laid down in the relevant Community provtsjocu.
                                                                                                                                  67
 ---pagebreak---      CN                                                        DcacnpTioB
   W09           ftnishrng agents, dye carriers to accelerate the dyeing or fixing of dyesruffj and ocher produco
                 and prépara b o m (for crrampir. dressings and mordants), of a kind used in the ternie, paper,
                            or like industries, not elsewhere speaficd or included :
         10      - With a basis of amylaceous substances                                                                  MOB
                                                                                                                        max 20 X
                 - Other:
         91      - — Of a kind used in the textile industry :
                          — Osnrammg search or products derived from starch                                              Free
          92      - - Of a kind used in che paper industry :
                          — Containing starch or products derived from search                                             Free
m 3109 99         - -     Other:
                          — Containing starch or products derived from starch                                             Free
                  Prepared binders for foundry moulds or cores; chemical produces and preparations of the
                  chemical or allied industries (including those consisting of mixtures of natural products), not
                  cbewhere spcrafv-d or included; residual products of the chemical or allied industries, not i
                   elsewhere sprnfird or included :
ex 3X23 10         - Prepared binders for foundry moulds or cores :
                       — Based on rrntbcoc resins                                                                         Free
    3123 60        - Sorbitol ocher than that of subheading 2905 *4                                                             MOB
     3*23 90       - Other:
« s 3123 90 40     - — Pyroligrures (for example, of calcium); crude calcium tartrate; crude calaum citrate.
                          - Crude calcium citrate                                                                         Free
                           Other:
ex 3*23 90 99                 Other:
                              - Produco of sorbitol cracking                                                              Free
     3911           Petroleum rcsms. couraarone-indene resins, polytcrpcnes, polysulphides, poiysulphones and
                    ocher products specified in noce 3 to this chapter, not elsewhere specified or included, in primary
                    forrfts :
 ox 3911 10         - Petroleum resins, coumaronc. indenc or coumarone-indenc resins and polyterpenes :
                        - Adhesives with a basis of resin emulsions                                                       Free
      391190        - Ocher:
 ex 3911 90 10      - — Coodemabon or rearrangement porrrrserixarion products whether or not chemicaliy
                           mortified :
                                                                                                                           Free
                           — Adhesives with a basis of resin emulsions
 ex 3911 90 90
                     - - Other:
                                                                                                                           Free
                           — Adhesives with a basis of resin emulsions
      3913           Natural polymers (for example, alginic acid) and modified natural polymers (for example,
                      hardened proteins, chemical derivatives of natural rubber), not cbewhere specified or included,
                      m primary forms :
      3913 90        - Other:
  e t 3913 90 90      - -   Other:
                            — Dextrin                                                                                      frte
                            — Other, exduding hardened proteins                                                            Free
                                                                                                                                 68
 ---pagebreak---                                 PROTOCOL No 3
concerning the définition of doe concept of 'origînacing products' and methods of
                             administrative cooperation
                                                                                  69
 ---pagebreak---                                   PROTOCOL
   concerning the definition of the concept of "originating products'
                  and methods of administrative cooperation
                                   TITLE I
            DEFINITION OF THE CONCEPT OF "ORIGINATING PRODUCTS'
                                  Article 1
                               OrIgIn crIter la
1.   For the purpose of Implementing the Agreement the following products
     shall be considered as:
1)   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 3 of this Protocol,
               or that
          II) those products are originating In the Community within the
               meaning of this Protocol;
2)   Products originating in the Community;
     (a) products wholly obtained In the Community;
      (b) products obtained In the Community 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 3 of this Protocol,
               or that
           II) those products are originating In the Faroe Islands within
               the meaning of this Protocol.
2.    Notwithstanding paragraph 1(1)(b)(ll), products originating In the
     Community, within the meaning of this Protocol, and exported from the
      Faroe Islands Into the Community In the same state or having
     undergone In the Faroe Islands no working or processing going beyond
      that referred to In Article 3, third paragraph, retain their origin.
      Notwithstanding paragraph K 2 ) ( b ) ( l l ) , products originating in the
      Faroe Islands, within the meaning of this Protocol, and exported from
      the Community Into to the Faroe Islands or having undergone In the
      Community no working or processing going beyond that referred to in
      Article 3, third paragraph, retain their origin.
                                                                                70
 ---pagebreak---                                     - 2 -
                                  Article 2
                          Wholly obtained products
1. Within the meaning of Article 1, paragraph 1(1)(a) and (2)(a), the
   following shall be considered as wholly obtained either In the
   Community or In the Faroe Islands:
   (a) mineral     products  extracted   from   their   soil   or   from    their
        seabed;
   (b) vegetable products harvested      therein;
   (c) live animals born and raised therein;
   (d) products from live animals raised therein;
   (e) products obtained by hunting or fishing conducted          therein-,
   (f) products of sea fishing and other products taken from the sea
        by their vessels;
   (g) products made aboard their factory ships              exclusively     from
        products referred to In subparagraph (f);
   (h) used articles collected there fit only for the recovery of raw
        mater I a I s ;
   (I) waste and scrap         resulting   from    manufacturing      operations
        conducted therein;
    (j) goods produced there exclusively from the products specified In
        subparagraphs (a) to (I).
2. The term    "their   vessels"   In paragraph   1(f) shall    apply only      to
   vessels:
        which are registered or recorded in the Faroe Islands or in a
        Member States of the Community;
        which sail under the flag of the Faroe Islands or of a Member
        State of the Community;
        which are owned to an extent of at least 50% by nationals of
        Member States of ! thje Community, residents or non-residents of
         the Faroe islands, or by a company with Its head office In one
        of these States or the Faroe Islands, 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 Member States of the Community, residents or non-
         residents of the Faroe Islands and of which. In addition, in
         the case of partnerships or limited companies, at least half
         the capital belongs to these States, to the Faroe Islands, to
         their public bodies or their nationals;
                                                                                   71
 ---pagebreak---                                    - 3 -
        of which the master and officers are nationals of Member States
        of the Community, residents or non-residents of the Faroe
        1 s Iands;
        of which at least 75X of the crew are nationals of Member
        States of the Community, residents or non-residents of the
        Faroe Islands.
3. The terms "Faroe islands" and "the Community" shall also cover the
   territorial waters which surround the Faroe Islands and the Member
   States of the Community.
   Sea-going vessels. Including factory ships, on which the fish
   caught Is worked or processed shall be considered as part of the
   territory of the Community or of the Faroe Islands provided that
   they satisfy the conditions set out In paragraph 2.
                                 Article 3
                     Sufficiently processed products
1. For the purposes of Article 1, non-orIginatIng materials are
   considered to be sufficiently worked or processed when the product
   obtained Is classified In a heading which is different from that In
   which all the non-originating materials used in its manufacture are
   classified, subject to paragraphs 2 and 3.
   The expressions "chapters" and "headings" used In this Protocol
   shall mean the chapters and the headings (four-digit codes) used in
    the   nomenclature   which    makes up   the   Harmonized  Commodity
   Description and Coding System (hereinafter referred to as "the
   Harmonized System" or H S ) .
   The expression "classified" shall refer to the classification of a
   product or material under a particular heading.
2.  For a product mentioned in columns 1 and 2 of the list in Annex II,
    the conditions set out in column 3 for the product concerned must
   be fulfilled Instead of the rule In paragraph 1.
    For the products of Chapters 84 to 91 Inclusive, as an alternative
    to satisfying the conditions set out In column 3, the exporter may
   opt to apply the conditions set out In column 4 Instead.
    (a) Where In the list In Annex II a percentage rule is applied In
         determining the originating status of a product obtained in the
         Community or In the Faroe Islands, the value added by the
         working or processing shall correspond to the ex-works price of
         the product obtained, less the value of third-country materials
         Imported Into the Community, or the Faroe Islands.
    (b) The term "value" In the list In Annex II shall mean the customs
         value at the time of the Import of the non-originating
         materials used or, If this Is not known and cannot be
         ascertained, the first ascertainable price paid for these
         materials in the territory concerned.                           ^ 2
 ---pagebreak---                                    - 4 -
       Where the value of the originating materials used needs to be
        established, the provisions of the above subparagraph shall be
        applled mutatis mutandis.
   (c) The term "ex-works price" In the list In Annex II shall mean
        the price paid for the product obtained to the manufacturer in
        whose undertaking the last working or processing Is carried
        out, provided the price Includes the value of all the materials
        used In manufacture, minus any internal taxes which are, or may
        be repaid when the product obtained is exported.
   (d) "Customs value" shall be understood as the value determined In
        accordance with the Agreement on Implementation of Article VII
        of the General Agreement on Tariffs and Trade, established in
        Geneva on 12 April 1979.
3. For the purpose of implementing paragraphs 1 and 2 the following
   shall be considered as Insufficient working or processing to confer
   the status of originating products, whether or not there is a
   change of heading:
   (a) operations to ensure the preservation of products In good
        condition during transport and storage (ventilation, spreading
        out, drying, chilling, placing In salt, sulphur dioxide or
        other aqueous solutions, removal of damaged parts, and like
        operat ions);
   (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 u p ) ;
   (c) I)    changes of packaging    and   breaking  up  and   assembly  of
             consignments;
         Ii) simple placing In bottles, flasks, bags, cases, boxes,
             fixing on cards or boards etc., and all other simple
             packaging operations;
   (d) affixing marks, labels and other      like distinguishing signs on
        products or their packaging;
   (e) simple mixing of products, whether or not of different kinds,
        where one or more components of the mixtures do not meet the
        conditions laid down in this Protocol to enable them to be
        considered as originating either In the community or In the
        Faroe Islands;
   (f) simple assembly of parts of articles to constitute a complete
        art icle;
   (g) a combination of two         or   more   operations   specified    In
        subparagraph (a) to (f);
    (h) slaughter of animals.
                                                                             73
 ---pagebreak---                                   - 5 -
                                Article 4
                            Neutral elements
In order to determine whether a product originates In the Community or
the Faroe Islands, It shall not be necessary to establish whether the
electrical power, fuel, plant and equipment and machines and tools used
to obtain such product or whether any materials or products used in the
course of production which do not enter and which were not Intended to
enter Into the final composition of the product originate in third
countrles or not.
                                Article 5
                   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 are not separately
 invoiced are regarded as one with the piece of equipment, machine,
apparatus or vehicle in question.
                                Art I d © 6
                                   Sets
Sets, as defined in General Rule 3 of the Harmonized System, shall be
regarded as originating when all component articles are originating
products. Nevertheless, when a set Is composed of originating and non-
originating articles, the set as a whole shall be regarded as
originating provided that the value of the non-orIglnatIng articles
does not exceed 15% of ex-works price of the set.
                                 Article 7
                             Direct transport
     The preferential treatment provided for under the Agreement applies
     only to products or materials which are transported between the
     territory of the Community or of the Faroe Islands without entering
     any other territory. However, goods constituting one single
     consignment may be transported through territory other than that of
     the Community or the Faroe Islands, with, should the occasion
     arise, transhipment or temporary warehousing In such territory,
     provided that the goods have remained under the surveillance of the
     customs authorities In the country of transit or of warehousing and
     that they have not undergone operations other than unloading,
     reloading or any operation designed to preserve them In good
     condition.                                                          *f ^
 ---pagebreak---                                      _ 6 -
2.  Evidence that the conditions referred to In paragraph 1 have been
     fulfilled shall be supplied to the responsible customs authorities
    by the production of:
     (a) a through bill of lading issued In the exporting country or
          territory covering the passage through the country of transit;
     (b) or a certificate Issued       by  the customs authorities of the
          country of transit:
              giving an exact description of the goods,
              stating the' dates of unloading and reloading of the goods
              or of the embarkation or disembarkation, identifying the
              ships used,
              certifying the conditions under which the goods remained in
              the transit country;
     (c) or falling these, any substantiating documents.
                                   Article 8
                           Territorial requirement
The conditions set out In this Title relative to the acquisition of
originating status must be fulfilled without Interruption In the
Community or the Faroe Islands.
 If originating goods exported from the Community or the Faroe Islands
 to another country are returned, they must be considered as non-
origlnatlng unless It can be demonstrated to the satisfaction of the
customs authorities that:
      the goods returned are the same goods as those exported, and
      they have not undergone any operation beyond that necessary       to
      preserve them In good condition while In that country.
                                    TITLE II
                                PROOF OF ORIGIN
                                   Article 9
                          Movement certificate EUR.1
 Evidence of originating status of products, within the meaning of this
 Protocol, shall be given by a movement certificate EUR.1, a specimen of
 which appears In Annex I I I to this Protocol.
                                                                           75
 ---pagebreak---                                   - 7 -
                              Article   10
             Normal procedure for the Issue of certificates
1. A movement certificate EUR.1 shall be Issued on application having
   been made In writing by the exporter or, under the exporter's
   responsibility, by his authorized representative. Such application
   shall be made on a form, a specimen of which appears in Annex III
   to this Protocol, which shall be completed In accordance with this
   Protocol.
   Applications for movement certificates EUR.1 must be preserved for
   at least two years by the customs authorities of the exporting
   country or territory.
2. The exporter or his representative shall submit with his request
   any appropriate supporting document proving that the products to be
   exported are such as to qualify for the Issue of a movement
   certificate EUR.1.
   He shall undertake to submit at the request of the appropriate
   authorities, any supplementary evidence they may require for the
   purpose of establishing the correctness of the originating status
   of the products eligible for preferential treatment and shall
   undertake to agree to any Inspection of his accounts and to any
   check on the processes of the obtaining of the above products
   carried out by the said authorities.
   Exporters must keep for at least two years the supporting documents
    referred to in this paragraph.
3. A movement certificate EUR.1 may be Issued only where it can serve
    as the documentary evidence required for the purpose of
    implementing the agreement.
4. The movement certificate EUR.1 shall be Issued by the customs
    authorities of the Faroe Islands If the goods to be exported can be
    considered as products originating in the Faroe Islands within the
    meaning of Article 1 paragraph 1 (1) of this Protocol. The
    movement certificate EUR.1 shall be Issued by the customs
    authorities of a Member State of the European Economic Community If
    the goods to be exported can be considered as products originating
    in the Community within the meaning of Article 1 paragraph 1 (2) of
    this Protocol.
5. The customs authorities of the Member States of the Community or
    the Faroe Islands may Issue movement certificates EUR.1 under the
    conditions laid down In this Protocol If the goods to be exported
    can be considered as products originating In the Faroe Islands or
    the Community within the meaning of Article 1, paragraph 2 of this
    Protocol and provided that the goods covered by the movement
    certificates EUR.1 are in the Community or In the Faroe Islands.
     In these cases, the movement certificates EUR.1 shall be issued
    subject to the presentation of the proof of origin previously
     issued or made out. This proof of origin must be kept for at least
    two years by the customs authorities of the exporting state or
    territory.                                                          HQ
 ---pagebreak---                                       - 8 -
6.   Since the movement certificate EUR.1 constitutes the documentary
     evidence for the application of the preferential tariff and quota
     arrangements      laid down    In the Agreement,    It shall be the
     responsibility of the customs authorities of the exporting country
     to take any steps necessary to verify the origin of the goods and
     to check the other statements on the certificate.
7.   For the purpose of verifying whether the conditions stated In
     paragraphs 4 and 5 have been met, the customs authorities shall
     have the right to call for any documentary evidence or to carry out
     any check which they consider appropriate.
8.    It shall be the responsibility of the customs authorities of the
     exporting State or territory to ensure that the forms referred to
      in paragraph 1 are duly completed. In particular, they shall check
     whether the space reserved for the description of the products has
     been completed In such a manner as to exclude all possibility of
     fraudulent additions. To this end, the description of the products
     must be Indicated without leaving any blank lines. Where the space
      Is not completely filled a horizontal line must be drawn below the
      last line of the description, the empty space being crossed
     through.
9.   The date of Issue of the movement certificate must be Indicated In
     the part of the certificate reserved for the customs authorities.
 10. A movement       certificate EUR.1 shall be Issued by the customs
     authorities     of the exporting State or territory when the products
     to which it      relates are exported. It shall be made available to
      the exporter    as soon as actual export has been effected or ensured.
                                    Article 11
                           ssue of EUR.1 retrospectively
 1.   In exceptional circumstances a movement certificate EUR.1 may also
      be Issued after export of the products to which It relates if It
     was not Issued at the time of export because of errors or
      Involuntary omissions or special circumstances.
 2.   For the Implementation of paragraph 1, the exporter must        In the
      appiI cat Ion:
           Indicate the place and date of export of the products to which
          the certificate relates,
          certify that no movement certificate EUR.1 was issued at the
          time of export of the products In question, and state the
          reasons.
                                                                             11
 ---pagebreak---                                   - 9 -
3.  The customs authorities may issue a movement certificate EUR.1
    retrospectively only after verifying that the Information supplied
    In the exporter's application agrees with that in the corresponding
    file.
    Certificates Issued retrospectively must be endorsed with one of
    the following phrases:
    'NACHTRXGLICH AUSGESTELLT'. 'DELIVRE A POSTERIORI', RILASCIATO A
    POSTERIORI*, 'AFGEGEVEN A POSTERIORI', 'ISSUED RETROSPECTIVELY*.
     'UDSTEDT EFTERFOLGENDE', [GREEK VERSION], 'EXPEDIDO A POSTERIORI',
     'EMITADO A POSTERIORI', [FAROESE VERSION].
4.  The endorsement referred to In paragraph 3 shall be inserted In the
    "Remarks" box on the movement certificate EUR.1.
                                Article 12
                        Issue of a duplicate EUR.1
1.   in the event of the 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
    foi lowing words:
     'DUPLIKAT', 'DUPLICATA', 'DUPLICATO*. 'DUPLICAAT', 'DUPLICATE',
     [GREEK VERSION], 'DUPLICADO*. 'SEGUNDA VIA*, [FAROESE VERSION].
3.  The endorsement referred to In paragraph 2 shall be Inserted in the
     "Remarks" box on the movement certificate EUR.1.
4.  The duplicate, which must bear the date of Issue of the original
    movement certificate EUR.1, shall take effect as from this date.
                                Article  13
           Simplified procedure for the issue of   certificates
 1.  By way of derogation from Articles 10, 11 and 12 of this Protocol,
     a simplified procedure for the Issue of EUR.1 movement certificates
     can be used in accordance with the following provisions.
                                                                         78
 ---pagebreak---                                  - 10 -
2.  The customs authorities In the exporting State or territory may
    authorize any exporter, hereinafter referred to as 'approved
    exporter', making frequent shipments for which EUR.1 movement
    certificates may be Issued and who offer, to the satisfaction of
    the competent authorities, all guarantees necessary to verify the
    originating status of the products, not to submit to the customs
    office of the exporting State or territory at the time of export
    either the goods or the application for an EUR.1 certificate
    relating to those goods, for the purpose of obtaining an EUR.1
    certificate under the conditions laid down In Article 10 of this
    Protocol.
3.  The authorization referred to in paragraph 2 shall stipulate, at
    the choice of the competent authorities, that box No. 11 "Customs
    endorsement" of the EUR.1 movement certificate must :
    (a) either be endorsed beforehand with the stamp of the competent
         customs office of the exporting State or territory and the
         signature, which may be a facsimile, of an off leal of that
         office, or
     (b) be endorsed by the approved exporter with a special stamp which
         has been approved by the customs authorities of the exporting
         State or territory and corresponds to the specimen given In
         Annex V of this Protocol. Such stamp may be pre-prlnted on the
          forms.
4.   In the cases referred to in paragraph 3 (a), one of the following
    phrases shall be entered in box No 7 'Remarks' of the EUR.1
    movement certificate       'Procedlmlento simplifIcado', 'Forenklet
    procedure', 'Verelnfachtes Verfahren', (greek version), 'Simplified
    procedure',     'Procédure simplifiée',   'Procedure   semplIfIcata',
     'Vereenvoudlgde procedure', 'Procedlmento SimplifIcado', (Faroese
     version).
5.   Box No 11 'Customs endorsement' of the EUR.1 certificate shall be
     completed If necessary by the approved exporter.
 6.  The approved exporter shall, If necessary, Indicate in box No 13
     'Request for verification' of the EUR.1 certificate the name and
     address of the authority competent to verify such certificate.
 7.  Where the simplified procedure Is applied, the customs authorities
     of the exporting State or territory may prescribe the use of EUR.1
     certificates bearing a distinctive sign by which they may be
      Identified.
                                                                          79
 ---pagebreak---                                          - 11 -
    8.   In the authorization referred to in paragraph         2 the   competent
         authorities shall specify In particular :
         (a) the    conditions   under    which  the  applications   for   EUR.1
             certificates are to be made,
         (b) the conditions under which these applications are to be kept
              for at least two years,
         (c) in the cases referred to In paragraph 3 (b) the authority
              competent to carry out the subsequent verification referred to
              In Article 25 of this Protocol.
    9.   The Customs authorities of the exporting State or territory may
         declare certain categories of goods Ineligible for the special
         treatment provided for in paragraphe 2.
    10. The customs authorities shall refuse the authorization referred to
          In paragraph 2 to exporters who do not offer all the guarantees
         which they consider necessary.         The competent authorities may
         withdraw the authorization at any time. They must do so where the
         approved exporter no longer satisfies the conditions or no longer
         offers these guarantees.
    11. The approved exporter may be required to inform the competent
         authorities, in accordance with the rule which they lay down, of
         the goods to be dispatched by him, so that such authorities may
         make any verification they think necessary before the departure of
         the goods.
    12. The customs authorities of the exporting State or territory may
         carry out any check on approved exporters which they consider
         necessary. Such exporters must allow this to be done.
     13. The provisions of this Article shall be without prejudice to the
         application of the rules of the Community and of the Member States
         concerning customs formalities and the use of customs documents.
                                       Article 14
                             Replacement of certificates
     It shall at any time be possible to replace one or more movement
     certificates EUR.1 by one or more other certificates provided that this
     is done at the customs office where the goods are located.
(6)
                                                                                 80
 ---pagebreak---                                  - 12 -
                               Article 15
                        Validlty of cert IfIcates
1. A movement certificate EUR.1 must be submitted, within 4 months of
   the date of Issue by the customs authorities of the exporting State
   or territory, to the customs office of the Importing State or
   territory where the products are entered.
2. Movement certificates EUR.1 which are submitted to the customs
   authorities of the Importing State or territory after the final
   date of presentation specified in paragraph 1 may be accepted for
   the purpose of applying preferential treatment, where the failure
   to submit the certificates by the final date set Is due to reasons
   of force majeure or exceptional circumstances.
3.  In other cases of belated presentation, the customs authorities of
   the importing State or territory may accept the certificates where
   the products have been submitted to them before the said final
   date.
                                Article 16
                               Exhibitions
    Products sent from the Community or the Faroe Islands for
    exhibition in a country other than a Member State of the Community
    or the Faroe islands and sold after the exhibition for Importation
    Into the Faroe      Islands or the Community shall benefit on
    Importation from the provisions of the Agreement on condition that
    the products meet the requirements of this Protocol entitling them
    to be recognized as originating In the Community or the Faroe
    Islands and provided that It Is shown to the satisfaction of the
    customs authorities that :
    (a) an exporter has consigned these products from the Community or
         the 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 someone In the Community or the Faroe Islands;
    (c) the products have been consigned during the exhibition or
         Immediately thereafter to the Community or the Faroe Islands In
         the state in which they were sent for exhibition;
     (d) the products have not, since they were consigned            for
         exhibition, been used for any purpose other than demonstration
         at the exhibit ion.
                                                                         81
 ---pagebreak---                                    - 13 -
2.   A movement certificate EUR.1 must be produced to the customs
     authorities In the normal manner. The name and address of the
     exhibition must be Indicated thereon. Where necessary, additional
     documentary evidence of the nature of the products and the
     conditions under which they have been exhibited may be required.
3.   Paragraph 1 shall apply to any trade, Industrial, agricultural or
     crafts exhibition, fair or similar public show or display which is
     not organized for private purposes In shops or business premises
     with a view to the sale of foreign products, and during which the
     products remain under customs control.
                                 Article 17
                         Submission of certificates
Movement    certificates   EUR.1   shall  be  submitted to  the  customs
authorities In the Importing State or territory In accordance with the
procedures laid down by that State or territory. The said authorities
may require a translation of a certificate. They may also require the
 Import declaration to be accompanied by a statement from the Importer
to the effect that the products meet the conditions required for the
 Implementation of the Convention.
                                 Art Icle 18
                         Importation by  instalments
Without prejudice to Article 3, paragraph 3 of this Protocol, where, at
the request of the person declaring the goods at the customs, a
dismantled or non-assembled article falling within Chapter 84 or 85 of
the harmonized system Is Imported by instalments on the conditions laid
down by the competent authorities, it shall be considered to be a
single article and a movement certificate may be submitted for the
whole article upon Import of the first Instalment.
                                 Article 19
                        Preservation of certificates
Movement    certificates   EUR.1   shall   be preserved by  the   customs
authorities of the Importing State or territory In accordance with the
 rules in force In that State or territory.
                                                                          82
 ---pagebreak---                                    - 14 -
                                Article 20
                                 Form EUR.2
1.  Notwithstanding Article 9, the evidence of originating status,
    within the meaning of this Protocol, for consignments containing
    only originating products and whose value does not exceed ECU 4,800
    per consignment, shall be given by a form EUR.2, a specimen of
    which appears In Annex IV to this Protocol.
2.  The form EUR.2 shall be completed and signed by the exporter or,
    under    the    exporters     responsibility,    by his   authorized
    representative In accordance with this Protocol.
3.  A form EUR.2 shall be completed for each consignment.
4.  The exporter who applied for the form EUR.2 shall submit at the
    request of the customs authorities of the exporting country or
    territory all supporting documents concerning the use of this form.
                                 Article 21
                               Discrepancies
The discovery of slight discrepancies between the statements made In
the movement certificate EUR.1, In the form EUR.2 and those made In the
documents submitted to the customs office for the purpose of carrying
out the formalities for Importing the products shall not Ipso       f&cto
render the document null and void If it Is duly established that it
corresponds to the products submitted.
                                 Article 22
                      Exemptions from proof of origin
    Products sent as small packages to private persons or forming part
    of travellers' personal luggage shall be admitted as originating
    products    without    requiring the     production of  a   movement
    certificate EUR.1 or the completion of form EUR.2, provided that
    such products are not Imported by way of trade and have been
    declared as meeting the conditions required for the application of
     the agreement, and where there is no doubt as to the veracity of
    such déclarât Ion.
                                                                          83
 ---pagebreak---                                    - 15 -
2.   Imports which are occasional and consist solely of products for the
    personal use of the recipients or travellers or their families
    shall not be considered as Imports by way of trade if it Is evident
     from the nature and quantity of the products that no commercial
     purpose is in view.
     Furthermore, the total value of these products must not exceed
     ECU 340 in the case of small packages or ECU 960 in the case of the
     contents of travellers' personal luggage.
                                 Article 23
                          Amounts expressed In ECU
1.   Amounts in the national currency of the exporting State or
     territory equivalent to the amounts expressed in ECU shall be fixed
     by the exporting State or territory and communicated to the other
     parties to the Agreement. When the amounts are more than the
     corresponding amounts fixed by the importing State or territory,
     the latter shall accept them if the goods are invoiced in the
     currency of the exporting State.
      If the goods are Invoiced In the currency of another Member State
     of the Community the importing State or territory shall recognize
     the amount notified by the country concerned.
 2.  Up to and including 30 April 1993, the ECU, to be used in any given
     national currency shall be the equivalent In that national currency
     of the ECU as at 3 October 1990. For each successive period of two
      years, It shall be the equivalent In that national currency of the
      ECU as at the first working day In October in the year Immediately
     preceding that two-year period.
                                  TITLE III
                ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION
                                  Article 24
                   Communication of Impressions of stamps
 The customs authorities of the Member States and the Faroe islands
 shall provide each other, through the Commission of the European
 Communities, with specimen impressions of stamps used in their customs
 offices for the Issue of EUR.1 certificates.
                                                                         84
 ---pagebreak---                                 - 16 -
                              Article 25
   Verification of movement certificates EUR.1 and of forms EUR.2
1. Subsequent verification of movement certificates EUR.1 and of forms
   EUR.2 shall be carried out at random or whenever the customs
   authorities of the Importing State or territory have reasonable
   doubts as to the authenticity of the document or the accuracy of
   the information regarding the true origin of the products In
   quest ion.
2. In order to ensure the proper application of this Protocol, the
   Member States of the Community and the Faroe Islands shall assist
   each other, through their respective customs administrations, in
   checking the authenticity of movement certificates EUR.1 and the
   forms EUR.2 and the accuracy of the Information concerning the
   actual origin of the products concerned.
3. For   the  purpose  of   Implementing  paragraph   1,  the   customs
   authorities of the importing State or territory shall return the
   movement certificate EUR.1 or form EUR.2, or a photocopy thereof,
   to the customs authorities of the exporting State or territory,
   giving, where appropriate, the reasons of form or substance for an
   enquiry.
   The relevant commercial documents or a copy thereof, shall be
   attached to the certificate EUR.1 or form EUR.2 and the customs
   authorities shall forward any Information that has been obtained
   suggesting that the particulars given on the said certificate or
   the said form are Inaccurate.
    If the customs authorities of the Importing State or territory
   decide to suspend execution of the provisions of the agreement
   while awaiting the results of the verification, they shall offer to
   release the products to the importer subject to any precautionary
   measures judged necessary.
4. The customs authorities of the Importing State or territory shall
   be Informed of the results of the verification as soon as possible.
   These results must be such as to make It possible to determine
   whether the disputed movement certificate EUR.1 or form EUR.2 apply
    to the products can, In fact, qualify for the application of the
   preferential arrangements.
                                                                        85
 ---pagebreak---                                   - 17 -
5.   Disputes which cannot be settled between the customs authorities
     of the Importing State or territory and those of the exporting
     State or territory, or those which raise a question as to the
     interpretation of this Protocol, shall be submitted to the [Customs
     Committee].
6.   For the purpose of the subsequent verification of movement
     certificates EUR.1, the customs authorities of the exporting
     country must keep the export documents, or copies of certificates
     used in place thereof, for at least two years.
                                Article 26
                                 Sanct ions
Penalties shall be imposed on any person who draws up, or causes to be
drawn up, a document which contains Incorrect particulars for the
purpose of obtaining a preferential treatment for products.
                                Article 27
                                 Free zones
The Member States and the Faroe Islands shall take all necessary steps
 to ensure that products traded under cover of a movement certificate
 EUR.1, which in the course of transport use a free zone situated in
 their territory, are not substituted by other goods and that they do
 not undergo handling other than normal operations designed to prevent
 their deterioration.
                                  TITLE IV
                   THE CANARY ISLANDS, CEUTA AND MELILLA
                                 Article 28
                        Application of the Protocol
 1.   The term 'Community' used In this Protocol does not cover the
      Canary Islands, Ceuta or Mel il la. The term 'products originating
      In the Community' does not cover products originating In these
      zones.
 2.   This protocol shall apply mutatis mutandis to products originating
      in the Canary Islands, Ceuta and Mel 11 la, subject to particular
      conditions set out in Article 29.
                                                                         86
 ---pagebreak---                                     - 18 -
                                  Article 29
                              Special conditions
1. The following provisions shall apply instead of Article 1 and
   references to that Article shall apply mutatis mutandis to this
   Article.
2. Providing they have been transported directly In accordance with
   the provisions of Article 7, the following shall be considered as:
   (1) Products originating In the Canary Islands, Ceuta and Mel il la:
        (a) products wholly obtained      In the Canary  Islands, Ceuta and
            Mel111 a ;
        (b) products obtained In the Canary Islands, Ceuta and Mel I I la
            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
                      3 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 3, paragraph 3.
    (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 3 of
                       this Protocol, or that
             (II)      those products are originating        In the Canary
                       Islands, Ceuta and Mel 11 la 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 3, paragraph 3.
                                                                             87
 ---pagebreak---                                   - 19 -
3. The Canary Islands, Ceuta and Mel il la shall    be considered   as a
   single territory.
4. The exporter or his authorized representative shall enter "Faroe
   Islands" and "Canary Islands, Ceuta and Mel il la" In box 2 of
   movement certificates EUR.1. In addition, In the case of products
   originating In the Canary Islands, Ceuta and Mel il la, this shall be
   indicated In box 4 of movement certificates EUR.1.
5. The Spanish customs authorities shall be responsible         for the
   application of this Protocol In the Canary Islands, and      in Ceuta
   and Me 1111 a.
6. Article 30 shall not apply to trade between the Canary Islands,
   Ceuta and Mel I I la, on the one hand, and the Faroe Islands on the
   other.
                                  TITLE V
                             FINAL PROVISIONS
                                Article 30
               Drawback and exemptions from customs duties
1. Without prejudice to the provisions of Article 1 of Protocol 2 and
   Article 1 of Protocol 4, products which are of the kind to which
    the Agreement applies, and which are used in the manufacture of
   products for which a movement certificate EUR.1 or a form EUR.2 are
    issued or completed, can only be the subject of drawback of customs
   duty or benefit from an exemption from customs duty of whatever
   kind when products originating In the Community or the Faroe
    Islands are concerned.
2.  In this Article, the term 'customs duty' also means charges having
    an effect equivalent to customs duty.
                                                                         88
 ---pagebreak---                                   - 20
                                Article 31
                           Petroleum products
The products set out In Annex VI shall be temporarily excluded from the
scope of this Protocol. Nevertheless, the arrangements regarding
administrative   cooperation   and   Article  30 shall   apply  mutat is
mutandis, to these products.
                                Article 32
                       Amendments to the Protocol
The Joint Committee may decide to amend provisions of this Protocol.
                                Article 33
                                  Annexes
The Annexes to this Protocol shall form an Integral part thereof
                                Article 34
                      Implementation of the Protocol
 The Community and the Faroe Islands shall each take the steps necessary
 to implement this Protocol.
                                                                         89
 ---pagebreak---                            LIST OF ANNEXES
Annex I :   Notes
Annex II:  List of working and processing within the meaning of Article
           3, paragraph 2
Annex III: Specimen of movement certificate EUR.1
Annex IV:  Specimen of Form EUR.2
Annex V:   Specimen Impression of the stamp referred to In Article 13,
           paragraph 3 (b)
ANNEX VI:  List of products referred to In Article 31 which         are
           temporarily excluded from the scope of this Protocol.
                                                                        80
 ---pagebreak---                                   ANNEX I
                                   HQIE2
Foreword
These notes shall apply, where appropriate, to all manufactured products
using non-originating materials, even If they are not subject to specific
conditions contained in the list In Annex II but are subject Instead to the
change of heading rule set out In Article 3. paragraph 1.
Note 1 :
1.1   The first two columns In the list describe the product obtained. The
      first column gives the heading number or chapter number used In the
      Harmonized System and the second column gives the description of
      goods used in that system for that heading or chapter. For each
      entry in the first two columns a rule Is specified in columns 3 or 4.
      Where, In some cases, the entry In the first column Is preceded by an
       'ex', this signifies that the rule In columns 3 or 4 applies only to
      the part of that heading or chapter as described in column 2.
1.2   Where several heading numbers are grouped together In column 1 or a
      chapter number Is given and the description of products in column 2
       Is therefore given In general terms, the adjacent rule in columns 3
      or 4 applies to all products which, under the Harmonized System, are
       classified In headings of the chapter or In any of the headings
       grouped together In column 1.
 1.3  Where there are different rules In the list applying to different
       products within a heading, each Indent contains the description of
       that part of the heading covered by the adjacent rule in columns 3 or
       4.
 1.4   For the products of Chapters 84 to 91 Inclusive, If no origin rule is
       given in column 4, the rule set out In column 3 has to be applied.
                                                                             91
 ---pagebreak---                                     - 2 -
Note 2:
2.1   The term    "manufacture" covers any kind of working or processing
      Including   "assembly" or specific operations. However, see Note 3.5
      be Iow.
2.2   The term "material" covers any Ingredient, raw material, component
      or part, etc., used In the manufacture of the product.
2.3   The term "product" refers to the product being manufactured, even If
       it is intended for later use in another manufacturing operation.
2.4   The term "goods" covers both materials and products.
Note 3:
3.1    In the case of any heading not In the   list or any part of a heading
      that is not in the list, the "change      of heading" rule set out in
      Article 3, paragraph 1 applies. If a     "change of heading" condition
      applies to any entry In the list, then   it Is contained In the rule In
      column 3.
3.2   The working or processing required by a rule In columns 3 or 4 has to
      be carried out only In relation to the non-originating materials
      used. The restrictions contained In a rule In columns 3 or 4
       likewise apply only to the non-orIglnatIng materials used.
 3.3  Where a rule states that "materials of any heading" may be used,
      materials of the same heading as the product may also be used,
       subject, however, to any specific limitations which may also be
       contained In the rule. However, the expression "manufacture from
       materials of any heading, Including other materials of heading No..."
       means that only materials classified In the same heading as the
       product of a different description than that of the product as given
        In column 2 of the list may be used.
                                                                              92
 ---pagebreak---                                    -3 -
3.4  If a product made from non-originating materials which has acquired
     originating status during manufacture by vlrture of the change of
     heading rule or Its own list rule is used as a material In the
     process of manufacture of another product, then the rule applicable
     to the product In which it is Incorporated does not apply to It.
     For example:
     An engine of heading No. 8407, for which the rule states that the
     value of the non-originating materials which may be Incorporated may
     not exceed 40% of the ex-works price, Is made from "other alloy steel
     roughly shaped by forging" of heading heading No. 7224.
      If this forging has been forged in the country concerned from a non-
     originating ingot then the forging has already acquired origin by
     virtue of the rule for heading No. ex 7224 In the list. It can then
     count as originating in the value calculation for the engine
      regardless of whether it was produced in the same factory or another.
     The value of the non-origlnatIng Ingot is thus not taken Into account
     when adding up the value of the non-originating materials used.
3.5   Even if the change of heading rule or the other rules contained In
      the list are satisfied, a product shall not acquire originating
      status if the processing carried out, taken as a whole, is
      Insufficient within the meaning of Article 3, paragraph 3.
 3.6  The unit of qualification for the application of the origin rules
      shall be the particular product which is considered as the basic unit
      when determining classification using the nomenclature of the
      Harmonized System. In the case of sets of products which are
      classified by virtue of General Rule 3 for the Interpretation of the
      Harmonized System, the unit of qualification shall be determined in
      respect of each Item In the set: this provision is equally
      applicable to sets of headings Nos. 6308, 8206 and 9605.
      Accordingly, it follows that:
          when a product composed of a group or assembly of articles Is
          classified under the terms of the Harmonized System In a single
           heading, the whole constitutes the unit of qualification.
                                                                          93
 ---pagebreak---                                     - 4 -
           when a consignment consists of a number of identical products
           classified under the same heading of the Harmonized System, each
           product must be taken Individually when applying the origin
           rules.
      Where, under General Rule 5 of the Harmonized System, packing is
       included with the pi oduct for classification purposes, It shall be
       included for the purposes of determining origin.
Note 4
4.1   The rule In the list represents the minimum amount of working or
       processing   required and the carrying out of more working or
       processing also confers originating status; conversely, the carrying
      out of less working or processing cannot confer origin. Thus If a
       rule says that non-or Iglnat Ing material at a certain level of
      manufacture may be used, the use of such material at an earlier stage
      of manufacture is allowed and the use of such material at a later
       stage Is not.
4.2    When a rule In the list specifies that a product may be manufactured
       from more than one material, this means that any one or more
       materials may be used. It does not require that all be used.
       For example:
       The rule for fabrics says that natural fibres may be used and that
       chemical materials, among other materials, may also be used. This
       does not mean that both have to be used; one can use one or the other
       or both.
        If, however, a restriction applies to one material and other
       restrictions apply to other materials in the same rule, then the
       restrictions only apply to the materials actually used.
       For example:
       The rule for sewing machines specifies that both the thread tension
       mechanism used and the zigzag mechanism used must originate; these
       two restrictions only apply If the mechanisms concerned are actually
        incorporated Into the sewing machine.
                                                                            94
 ---pagebreak---                                     - 5 -
4.3   When a rule In the list specifies that a product must be manufactured
      from a particular material, the condition obviously does not prevent
      the use of other materials which, because of their inherent nature,
      cannot satisfy the rule.
      For example:
      The rule for heading No. 1904 which specifically excludes the use of
       cereals or their derivatives does not prevent the use of mineral
       salts, chemicals and other additives which are not produced from
       cereals.
       For example:
       In the case of an article made from non-woven materials. If the use
       of only non-orIglnatIng 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 f ibre stage.
See also Note 7.3 in relation to textiles.
4.4     If In a rule In the list two or more percentages are given for the
       maximum value of non-originating materials that can be used, then
       these percentages may not be added together. The maximum value of
       all the non-origlnatIng 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 5
 5.1    The term "natural fibres" is used In the list to refer to fibres
        other than artificial or synthetic fibres and Is restricted to the
        stages before spinning takes place, Including waste, and, unless
        otherwise specified, the term "natural fibres" Includes fibres that
        have been carded, combed or otherwise processed but not spun.
 5.2    The term "natural fibres" Includes horsehair of heading No. 0503,
        silk of heading Nos. 5002 and 5003 as well as the wool fibres, fine
        or coarse animal hair of heading Nos. 5101 to 5105, the cotton fibres
        of heading Nos. 5201 to 5203 and the other vegetable fibres of
        heading Nos. 5301 to 5305.
                                                                             95
 ---pagebreak---                                          - 6 -
   5.3   The terms     "textile pulp", "chemical materials" and "paper-making
         materials"    are used In the list to describe the materials not
         classified    in chapters 50 to 63, which can be used to manufacture
         artificial,    synthetic or paper fibres or yarns.
   5.4   The term "man-made staple fibres" is used in the list to refer to
         synthetic or artificial filament tow, staple fibres or waste, of
          headings Nos. 5501 to 5507.
   Note 6
   6.1    In the case of the products classified within those headings in the
          list to which a reference It made to this Note, the conditions set
          out in column 3 of the list shall not be applied to any basic textile
          materials used In their manufacture which, taken together, represents
          10% or less of the total weight of all the basic textile materials
          used (but see also Notes 6.3 and 6.4 below).
   6.2    However, this tolerance may only be applied to mixed products which
          have been made from two or more basic textile materials.
          The following are the basic textile materials:
               silk,
               wool ,
               coarse animals hair,
               fIne animal hair ,
               horsehair,
               cotton,
               paper-making materials and paper,
               flax,
               true hemp,
               jute and other textile bast fibres,
               sisal and other textile fibres of the genus Agave,
               coconut, abaca, ramie and other vegetable textile fibres,
               synthetic man-made filaments,
               artificial man-made staple filaments,
               synthetic man-made staple fibres,
               artificial man-made staple fibres.
           For example:
           A yarn of heading No. 5205 made from cotton fibres of heading No.
           5203 and synthetic staple fibres of heading No. 5506 Is a mixed yarn.
          Therefore, non-orIglnatIng synthetic staple fibres that do not
           satisfy the origin rules (which require manufacture from chemical
          materials or textile pulp) may be used up to a weight of 10% of the
           yarn.
7)                                                                               96
 ---pagebreak---                                  _ 7 -
    For example:
    A woollen fabric of heading No. 5112 made from woollen yarn of
    heading No. 5107 and synthetic yarn of staple fibres of heading No.
    5509 Is a mixed fabric. Therefore synthetic yarn which does not
    satisfy the origin rules (which require manufacture from chemical
    materials or textile pulp) or woollen yarn that does not satisfy the
    origin rules (which require manufacture from natural fibres, not
    carded or combed or otherwise prepared for spinning) or a combination
    of the two may be used up to a weight of 10% of the fabric.
    For example:
    Tufted textile fabric of heading No. 5802 made from cotton yarn of
    heading No. 5205 and cotton fabric of heading No. 5210 Is only a
    mixed product If the cotton fabric is itself a mixed fabric being
    made from yarns classified in two separate headings or if the cotton
    yarns used are themselves mixtures.
    For example:
     If the tufted textile fabric concerned had been made from cotton yarn
    of heading No. 5205 and synthetic fabric of heading No. 5407, then,
    obviously, the yarns used are two separate basic textile materials
    and the tufted textile fabric Is accordingly a mixed product.
     For example:
     A carpet with tufts made from both artificial yarns and cotton yarns
     and with a Jute backing Is a mixed product because three basic
     textile materials are used. Thus, any non-originating materials that
     are at a later stage of manufacture than the rule allows may be used,
     provided their total weight taken together does not exceed 10% of the
     weight of the textiles 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.
6.3   In the case of fabrics Incorporating 'yarn made of polyurethane
     segmented with flexible segments of polyether whether or not g Imped'
     this tolerance Is 20% in respect of this yarn.
6.4   In the case of fabrics incorporating strip consisting of a core of
     aluminium foil or of a core of plastic film whether or not coated
     with aluminium powder, of a width not exceeding 5 mm, sandwiched by
     means of an adhesive between two films of plastic film, this
     tolerance Is 30% In respect of this strip.
                                                                           97
 ---pagebreak---                                      - 8 -
Note 7
7.1    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 inter Iinings, which do not satisfy the rule
       set out in the list In column 3 for the made up product concerned may
       be used provided that they are classified In a heading other than
       that of the product and that their value does not exceed 8 % of the
       ex works price of the product.
7.2    Any non-textile trimmings and accesorles or other materials used
       which contain textiles do not have to satisfy the conditions set out
        in column 3 even though they fall outside the scope of Note 4.3.
7.3     In accordance      with Note  4.3,  any  non-orIglnatIng   non-textile
       trimmings and accessories or other product, which do not contain any
       textiles, may, anyway, be used freely where they cannot be made from
       the materials listed In column 3.
       For example:
        If a rule in the list says that for a particular textile Item, such
       as a blouse, yarn must be used, this does not prevent the use of
       metal    Items, such as buttons, because they cannot be made from
        text ile mater la Is.
 7.4   Where a percentage       rule applies, the value of      trimmings  and
        accessories must be taken Into account when calculating the value of
        the non-orIglnatIng materials Incorporated.
                                                                               98
 ---pagebreak---                            ANNEX M
LIST OF WORKING OR PROCESSING REQUIRED TO BE CARRIED OUT ON
    NON-ORIGINATING MATERIALS IN ORDER THAT THE PRODUCT
         ilANUFACTURED CAN OBTAIN ORIGINATING STATUS
                                                            99
 ---pagebreak---                                                                -2-
   H.5.                                                                                    Working or processing
  Haading                    Description of product                              carried cut en rxjvoriginating materials
    Nb.                                                                               that confers originating status
    (1)                                (2)                                                            (3)
2.01      Mast of bovire sfiirrais, fresh or chilled                  Marufacture from rraterials of any heading ocept meet of
                                                                      bovine animals, frozen of heading Nb. 02.02
2.02      Mast of bovins animals, frozen                              rferrjfacture from materials of any heading except meat of
                                                                      bovine animals, fresh or chilled of heading ISb. 02.01
2.QS      Edible offal of bovine animals, swine, sheep, cpats, f**erufacture fran materials of any heeding ©cept carcasses
          horses, asses, nules or ninnies, fresh, chilled or frozen of headings Nbs. 02-01 to 02.03
2.09      Pig fat free of leen          meat and p a l t r y fat (not MBnfadUdce f ran materials of any heading except carcasses
          rendered), fresh, chilled, frozen, salted in orine, cried of heading 02.03 and poultry meet of hurting 02.07
          or stroked
x Q2.10   Maet and edible meet offal, salted, in brine, dried or Nferufacture from materials of any heading except meat and
          arrcked; edible flours and meals of meet or meat offal, offal of heading Nbs. 02.01 to Q2.Q6 and 02.06 or poultry
          except for ediole flours and meals of meet or meet offal liver of heading Nb. 02.07
          of sheep and cpats
•3.02 to  fiah, other then live fish                                   rterufacture i n which a l l the materials of Dhepter 3 used
3.05                                                                   mjst already be origirrating
sUttto    Dairy products                                               ten/acture f ran materials of any heading except milk or
*X06                                                                   creem of heading Nb. 0A.Q1 or 04.02
£.08      Biros' eggs, not i n shell and egg yolks, fresh, dried, rteT/acture from materials of any heading except birds'
          cocked, by steaming or by m i l ing in water, moulded, e g ^ of reading Nb. 04.07
           frozen or otherwise preserved, whether or rot containing
           acted sugar or other sweetening matter
                                                                                                                            1G0
 ---pagebreak---                                                               -3-
    H.S.                                                                                  Working or processing
   Heading                   Description of procuct                            carried out en narKrigineting mBterials
     Nb.                                                                             that confers originating status
     (1)                              (2)                                                          (3)
ex 03.02   Prepared pigs', hoes' or boars' bristles and hair         Qeening, disinfecting,       sorting and stiaid^tening of
                                                                     bristles and hair
ex 03.05   Bones and horn-cores uncorked                             rferufacture in wiich a l l the materials of Chapter 2 used
                                                                     rrust already be orig^rtating
07.10 to   Ediole vegetables, frozen or dried, provisionally rtenufacture in which a l l the vegetable rreterials used must
07.13      preserved except for readings Nbs. ex 07.10 and ex 07.11 already be crig^reting
ex 07.10   Sweet com (uncocked or cocked by steaming or boiling in f^Bnufacture fran fresh or chilled sweet com
           wattr,, frozen
ex 07.11   Sweet com, provisionally preserved                        t-fen/acture f rem fresh or chilled sweet com
08.11      Fruit and nuts, uncocked or cocked by steaming or boiling
           in veter, frozen, whether or not containing added soar
           or other swaetening matter:
           -  containing added sugar                                  hferufacture in which the value of any materials of
                                                                      Chapter 17 used does not exceed 30 % of the value of the
                                                                      ex-wDiks price of the procuct
           - other                                                    f^njfacture in which a l l the fruit or nuts used must
                                                                      already be originating
08.12      Fruit and ruts provisionally preserved (for example, by f^rufacture in which a l l the fruit or nuts used must
           «qiiphr dioxide gas, in brine, i n sulphur water or i n already be originating
           other preservative solutions), tut unsuitable in that
           stale for innediate oonauTption
 08.13     Fruit, dried, other than that of headings Nbs. 0B.Q1 to hferufacture in which a l l the f r u i t or nuts used rrust
           08-36; mixtures of nuts or dried fruits of this Chapter    already be crigineting
                                                                                                                         101
 ---pagebreak---                                                                           -4-
    H.S.                                                                                                Working or prucessirg
   readinq                          Description of procuct                                   carried out an rtn-origiretinq materials
     NO. "                                                                                         that confers originating status
     (1)                                        (2)                                                              (3)
06.14      Peel of citrus fruit or melons (including watermelons), l^rtufacture in which a l l the f r u i t or nuts usee mjst
           fresh, frozen, driea or provisionally preserved in brine, already be cjriginatinq
           in Siiphur water or in other preservative solutions
ex 09.01   Coffee, roasted                                                        hfen/acture f rem nxwroested coffee
ex Chap 11 Prccjcts of the -ni 1 ling îrcustry; malt, starches; i r u l i n ; Nterufacture in whidn all the cereals, errihle vegetables,
           wheat gluten, except for heading No. ex II.06                          roots and titers of heading No. 07.14 or fruit used rrust
                                                                                  already be originating
ex 11.06   Flour arc "e=_ of" the dried,                    sneliec   legjrujncus Drying arc milling of leguminous vegetarjles of heading
           v^getaoies or" nmoinç \c. 07.13                                        No. 07.06
D.Q1       Lac; nature. OJ"E. resins, •curt-reLins arc baisers                    Nfenjfacture in which the value of any materials of headinc
                                                                                  No. 13-01 used may not exceed 50 « of the ex-works price
                                                                                  of the product
ex 13.02     Lc-idLKL- arij t ' i i ^ w e i f •oerived fro:; vHjrtanle procLcts, Marufa'ture fron non-rmifieo mjcxiaaes ard thickeners
            laz. f i e j
113.01      La.":: otner _ic '"at anc poultry fat. re-dered, wnethsr or Manufacture from materials of any readme except those of
            ncr. Dressée :•- so: veit-extracted:                                  heading No. 02-03. 02-06 or 02-27 or cones of tneecànç
                                                                                  No. 03-35
                 =ts     ocres o; wast
                                                                                   f-terufacture frem meat or edible offal of swine of reading
                                                                                   No. '02-03 or Û2.QS or of meet arc ediole offal of poultry
                                                                                   of headirQ No. 02.07
            - ctner
 15.02       Fats of oovine animais, sheep or cpats, raw or rendered, h-tenufacture from materials of any heading except those of
             whetrer or not pressea or solvent-odracted:                           reading No. Q2.Q1, 02-02, 02.04 or 02.06 or cones of
                                                                                   reading Nb. 05.06
             - fats fror Danes or waste
                                                                                                                Cbnt'G
                                                Qnt'o
                                                                                                                                      102
 ---pagebreak---                                                                 -5-
    H.S.                                                                                     Vbrking or processing
   heading                      Description of product                             carried cut on rron^rigineting materials
     Nb.                                                                                that confers originating status
     (1)                                  (2)                                                           (3)
13.02       - other                                                    rferufacture in vhich a l l the animal materials of Chapter 2
(Ctrt'd)                                                               used must already be origpjoting
13.04       Fats and oils and their fractions, of fish or marine
            marmals, whether or not refined, tut not chenicelly
            rTodified:
            - solid fractions of fish n i l s and fats and o i l s of rfenufacture from materials of any heading incluling other
               marine IIUIIIHIS                                        rraterials of reeding Nb. 15.04
            - other                                                    r^rufacture in vhich a l l the animal materials              of
                                                                        Chapters 2 and 3 used must already' be cricketing
ex 13.03    Refined lanolin                                             I'Brufacture from exude wool grease of heading Nb. 15.05
13.06       Other animal fats and oils and their fractions, whether
            or 'XJt refined, but not crenically modified:
            - solid fracticns                                           f*bnufacture from materials of any reading including other
                                                                        materials of hearting No. 15.06-
             - other                                                    hterufacture in vhich a l l the animal materials of Ohapter 2
                                                                        used must already be crioplneting
ex 13.07 to  Fixed vegetable oils and their fractions, whetrer or not
15.15        refined, tut not crenically modified:
             - solid fractions, except for that of jojoba o i l          t-fenufacture fran other materials of readings Nbs. 15.07 to
                                                                         15.15
             - other, except for:                                        rfenufacture i n vhich a l l the vegetable oeterials used oust
               - Tung o i l ; myrtle wax and japan wax                   already te eriçpnBting
               - those for technical or industrial uses other than the
                  manufacture of feedstuffs for huren ooneuiptien
                                                                                                                              103
 ---pagebreak---                                                                               - 6 -
      rLS.                                                                                                          *br>o.Ty cr praoeesing
     riaaduxj                              rwrrift-im of p r a i c t                                    ^rripri nir rr. nrn-nr-iginaming tmtiorijVIc
        tto.                                                                                                   that confers originating status
         (1)                                         (2)                                                                       (3)
  ax 15.16     *r. *,*.•; n r \*»J*T»KU f**-Q rmn n i l s « r i f-npir f r s r t i r r K r i<ft-i.ifccrure    in ^ u a all thp animal and vwgBtahltf
               r^yppHwj,                 v**3ther or not refined t u t not further aanarials used itust alm^ry be originating
               pr<4-arfcd
  ex 15.17      taiuLe lirjrid mixtures of vegetable o i l s of headings l^njfacture in v^urn a l l the vegetable insfcprial.s used nust
               .>rj*. 15.07 t o 15.15                                                      already oe originating
  ex 15.19      Industrial ratty              alcohols   naving the   d m act FT of ftenracrure frcm uatenals of any heading including fatty
i              ar~ : nrifll vexes                                                          acids of hearting .c.. 15.19
t               j j siiiti. arri similar pradLict-.s, of m\&. went- offal cr Min if. irfi m • f m n . i i i i n j ! . . if ChajTrnr 1
"16.01
              j       i^i :JUU pr^ararjcns raeeJ cr> u t i t ^-coajcts
 ! 16.02        Jt. *r p ^ a r e d or preserved IVBZL, neat offal or blood                  !«hri TTH.-n ITP f m n aniirelq of Chapter 1
   16.03
              l                                                                             i-feriifacture frcm arurrals of Chapter 1. H»ever, a l l fish,
              |£>:tr=cts and juices of m=«r., fisn or                   crustaceans, i-r,-F~=r»=r«, mnn !**-«=; err cjtnpr ac^Btic ira^rtihrates used
                .:u—iscs or jLifcg. arjwtic invertiixaras
                                                                                            nust already be originating
   16.04         .-re-ared or preserved f i a v caviar and caviar substitutes >brufacture in tfiioh a l l tne fish or fish eggs used nust
                pr=~ared fran f i ^ i eggs                                                  aLraay be arogirafcirig
   16.05         Jrod^acesns, mnilliscs and OG-HT aj.Hri,r invertebrates, pfr-iif-^-nw-p in «r,im all the crustaceans, nolluscs cr
                 jf-^xireG or pceserved                                                      X K       cKjwi-i- orvertixxares used nust already be
                                                                                             originating
   ex 17.U1       J=Li= or ceet sugar and chari rally pure sucrose, in solid iv^nnf^-nTinp in unicr. the value of any materials of
                 fzc:^ flavoured or coloured                                                 Chapter 17 used does not e&csed 30 % of the ex-vorks price
                                                                                             of the prodjet
    17.02          jtii_r sujars inclirlirrj rhffT><~*lly p r v 1-arirse, imltraR.
                  rjhrr-*** and fructose, i n solid foea; sugar syrups net
                  cencaining added flavouring or mlouring natter;
                  a r t i f i c i a l honey» vtether or not mi Mai witii natural
                  ncney; caramel:
                                                                                              i«farij£acnre fron mFrt-prials of any heading in-flirting other
                   - -TATii ml "ly prr> maltrw* ard frurtnse                                 •nHtarials cf heading t o . T7.Q2
                                                                                                                              Ctnt'd
                                                     Oant'd
                                                                                                                                                     104
 ---pagebreak---                                                                  - 7-
    H.S.                                                                                      «xbDung cr processing
   deeding                      Daacripticn cf product                             ciuxiBri out an ncn-^idginating '"***** i»ie
     No.                                                                                 that confers originating sfTtfiis
      (1)                                  (2)                                                            (3)
17.02      - other caipifv i n lyJSfî fi jm, flavcured or coloured      Manufacture in which the value cf any nwh°rifl1<> cf
(Cont'd)                                                                Chapter 17 used does not exceed 30 % cf tire ex-works price
                                                                        of the product
           - odier                                                      tenufacture in which a l l the rmrhprials used nust already
                                                                        be originating
3X 17.03   .tuasses resulting fran the extraction or refining of i-bnufacture in whim the value cf any BBtgrials of
           s-gar, flavored or coloured                                  Chapter 17 i**^ âne-* not exceed 30 % cf the ex-warks price
                                                                        of tne product
17.04       -. iyr ccnfecticnery     ( including write cnccolate),  not .toufacture in which a l l the m t e r i a l s used are clpissifieri
            containing oocoa                                             in a heading other than that of the prorrlrrt, provided the
                                                                         value of any otner materials cf Chapter 17 used does not
                                                                         exceed 3D i cf tne ex-works price cf the predxet
 18.06       J xxx.ucGè arc otner feed preparations containing caeca     {"fenufacture in wnieri a l l the .TBterials used are classified
                                                                         in a heading other than tnat cf the predict, provided the
                                                                         vaL*s of any nHterials of Chapter 17 used doss not exceed
                                                                          30 't cf the ex-works price of the predict
 19.01       •hj: extract; food preparations of fleur, ireal, starch cr
            ;a;xt extract, not containing cocoa p x i r or containing
            cccoi pewier in a p r o r a t i o n fy weight of less than
            5>t t, not elsewhere spart fiad cr included; food
            preparations of goods of headings rtos. 04.01 t o 04.04,
            : «j. ccntaining cr-mB powder or containing cocoa powder in
             a urqjcrtLcn by weight cf less than 10 », not elsewhere
             ^>^-ir-iPri cr included;
             - .nit extract                                               t«fanufdctxre from cereals of Chapter 10
             - other                                                       >anufactiire in which a l l the nanadals used are cQassififld
                                                                           i n a heading other than that cf t h e p r o i r t , provided the
                                                                           value cf any rm**T-'*ig of Chapter 17 used doss not exceed
                                                                           30 % cf the ex^orks price of t t e p r c d j e t
  19.02       r&sta, whether c r net cooked c r stuffed (with meat c r >anjfacture in which a l l the OETRTVIS (except darun wheat),
              ocner substances) or otherwise prepared, such as treat, ngy r ^ ^ l , fish, crustaceans or nril'afrs used nust
              spagnefcti, naoarcni, nccdlfis, lasagne, gnoochi, ravioli, already be originating
             .cannelloni; acusccus, whsbher or not prepared
                                                                                                                                     105
 ---pagebreak---                                                                   - 8 -
    U.S.                                                                                          *brxiny or processing
  iteding                       Description of product                               carried out on rcn-criginadting materials
     No.                                                                                     that confers originating status
     (D                                   (2)                                                              (3)
a. 03     ia 1 n.xs and substitutes therefor prepared fran starch. l-tervfacture fran ittaterials of any heading except potato
          in une fozzn cf fiâtes, grains, pearls, siftings c r in staron of needing i o . 11.06
          siaJLar fcms
3.04      ireparad foods attained by the swelling or roasting of
          cereals or cereal predicts (for exanple, com flakes);
          oertu-s, otner than nata? (com), in grain fran.           f
          pre^ceoxedar otherwise prepared:
          - not ccntaining cocoa
              - cereals, other than jraia* (cam), i n grain form,        ••fen ifa m ire fran lreterials of any heading. HDwever, grains
                 ijr^-cao<ed or otherwise prepared                       and cats of sveet cacn, prqnred ar preserved, cf heading
                                                                         Nos 2001, 2004 and 2005 and uncocked, boiled c r steamed
                                                                         sweet com, frozen, of neading No 0710 nay not be used
              - Jtner                                                     -fenufdcture in whion:
                                                                         - a l l the rPT-Fwls and t n s i r derivatives (ejcapt maiae cf
                                                                             the .^TPHPR "2ea Indirata' and curun wheat and their
                                                                             derivatives) used nust be wnaDy cfctained, and
                                                                          - tne value of any oHtenals of Chapter 17 used dees not
                                                                             exceed 30 \ cf f e ex-worxs price cf the product
                                                                          i^tenufccture fran nHterials not classified within heading
           - caitixining cocoa
                                                                          No. iduô, prcvided tne value cf any rmrherials of
                                                                          Chapter 17 n<yri does not exceed 30 % cf the ex-works price
                                                                          of t i e p r o i r x
 *. 05      rreau, pastry, cakes, h - i « " " ^ and otner bakers' wares, ffenufacture fran îieterials of any heading, except those of
            wr*-ci=-r or not containing occoa; caurunien wafers, enpty Chapter 11
            <~A-np^ cf a kind suitable far pharrrpimirical use,
            sealing wafers, r i c e paper and sinilar products
 J. 01      Vfegetaoles, fruit, nuts and other edible parts cf plants, i-anufacture i n which a l l the fruit, nuts cr vegetables
            prepared cr preserved ty vinegar c r acetic a d d              used nust already be originating
 3.02        ituBtces prepared c r preserved otherwise than Dy vinegar ttuxfacture in which a l l the tanstaes used most already be
            or argrir a d d                                                g r i n rating
 J. 03      i-usTrjoiB and truffles, prepared or preserved otherwise >arufacture in which a l l the nushrcars or truffles used
             u a n cy vinegar or acetic a d d                              nust already be originating
                                                                                                                                 1C6
 ---pagebreak---                                                                     - 9 -
    kLS,                                                                                          «arxing or processing
  deading                         Ijescripticn ox product                              r^rripn o-it an ncn-cciginating n*t-*mr\x\*
     No.                                                                                     that confers originating status
     (1)                                     (2)                                                            (3)
2a 04 and JC iir vegetables prepared or preserved otherwise than by i<Bnufacture in wru-^i a l l the vegetables used oust already
20.05     viregâr or acetic acid, frcaen or not frozen                     ce originating
20.06     rr—t-, TJXS, fruit-peel and otner parts of plants, rtenufacture in which the value cf any nwtTar-i*tg cf
          jtuerved oy sugar (drained, glacé or crystallised)               Chapter 17 used dees not exceed 30 % of the ex-works price
                                                                           of tne product
20.07     J U ^ , fruit j e l l i e s , narnBlades, fruit or nut purée and i-an.if.i-.ture in wtiicn tne value cf any rraterials of
          É\-it or nut pastes, being cocwed préparations, wnether Chapter 17 used most not exceed 30 % of the ex-warks price
          or net containing added sugar or other sweetening >iatler of the procuct
20. Ob    _-: _JI, nuts and aûner ediDle parts of plants cxherwise
          - r e a r e e or preserved, whether cr not containing added
          su^ur jr otner sweetening nHtter or spirit, not elsewhere
           - ^ -if-.nr: or included:
          - f_-uit and nuts cooked otherwise tnan cy steaning or parufacture in whicn a i l the fruit and nuts uaad mist
              iijL-ing xn water, not containing added sugar, frozen        already t e originating
          - nuts, net ocntaining added sugar or s p i r i t s               rtenufacture in whim the value of the originating nuts and
                                                                            o i l seeds of headings I t s . 06.01, 08.02 and 12.02 t o 12.07
                                                                            used exceeds 60 % cf the ex^orks price of the prccuct
                                                                            i»an.ifacture in whim a l l the naterials used are classifiprl
           - jejer
                                                                            in a needing other than tnat of the p t n i r t , rrovidad the
                                                                            value of any riaterials of Chapter 17 used abas not exceed
                                                                             30 % cf the ex-sorks price of the proir-r
 «20.09    fruit Tuioes (including gr^p 0 nust), unferanented and not i-fenufacture i n which a l l the naterials used are classified
            containing er^e=r\ s p i r i t , whether or not containing addedin a heading other than that of tdTeprodxrt, provided the
            sujar or other sweetening natter                                 value cf any naterials of Chapter 17 used doss not exceed
                                                                             30 fc cf the ex-works price of the predict
                                                                                                                                   107
 ---pagebreak---                                                                        -10-
    H.5.                                                                                           Working or processing
   reeding                       Ceseription of product                                 carried out en non^xiejinating materials
     ND.                                                                                      that confers œigireting status
     (1)                                  (2)                                                                 (3)
ex 21.01      Roasted chioory and extracts, twmoes and oercentrates terufacture i n which a l l the ohicory uaed must already be
              thereof                                                         crirginating
ex 21.03      - Sauces and preparations thereof; mixed cendinrants and r-tertufacture i n which a l l the materials used are classified
                 mixed seasonings                                             i n a heading other than that of the p r r r i r t . however,
                                                                              rnjstard flour or meal or prepared mustard may be used
              - Prepared mustard                                              rterjfacture from rnustard flour or meal
21.»          Soups and broths and preparations therefcr; haitrjenized
              coTposite food preparations:
              - soups and broths and procurations therefor                    f-fenufacture from materials of any reading, exoept prepared
                                                                              or preserved vegetables of headings Nos. 2D.Q2 to 2D.Q3
              - roroganijzed conposite food preparations
                                                                              The rule for the heading i n which the product wxild be
                                                                              classified in bulk shall apply
ex 21.05      Sugar syrups, flavoured or coloured                             f**erufacture i n which the value of any naterials of
                                                                               Ohepter 17 used must not exceed 30 « of the ex-warks price
                                                                              of the product
22.01         WBters, including natural or a r t i f i c i a l mineral waters Nferufacture in which a l l the water used must already be
              anc aerated waters, not containing added sugar or other originating
              sweetening matter nor flavoured; ice and snow
22.02         Waters, ireli.riing mineral veters and aerated waters,           Nfenufacture in which a l l the materials used are classified
              containing added sugar or other sweetening natter or             i n a heeding other than that of the pnxuet, provided the
               flavoured, and other rren-sJrxhlic beverages, not               velue of any materials of Ohepter 17 used dbes not exceed
               ircduding fruit or vegetaole juices of reading to. 2D.09        30 % of the ex-works price of the product and any f r u i t
                                                                               juice used (except for pineapple, lime and grapefruit
                                                                               juices) must already be criû^reting
 ex 22.04      Wine of fresh grapes, innli rting fortified wires, and r-terufacture from other orape must
               orape must with the addition of alcohol
 22.05,        The fnllrwing, ccntaining grape rraterials: vernrjuth end f*Bnufacture from materials of any heeding, exoept grapes
 ex 22.07,     other wine of fresh grapes flavoured with plants or or any material derived fran «grapes
 ex 22.06 and araretic suhetances; ethyl adcorol and other spirits,
 ex 22.09      denatured or not; spirits, licueurs and other spirituous
               beverages; crjTpcund alrrfnlin préparations of a kind uaed
               for the manufacture of beverages; vinegar
 ex 22.06      Whidd.es of an alccrolic stiength by VOIUTE of less than f-fenufacture in which the value of any cereal based spirits
               50 % vol.                                                       used does not exceed 15 % cf the ex-works price of the
                                                                                product
                                                                                                                                    108
 ---pagebreak---                                                                 -u-
    H.S.                                                                                    Working or proosssing
   hfrrring                    Description of prcduct                            carried cut en non^xigineting rraterials
     Nb.                                                                               that confers criç^nating status
     (1)                                (2)                                                            (3)
                                                                        v
2301        Flours, rreels and pellets, of meat or meat offal, of fiah r anufacture i n which a l l the materials of Ohepters 2 and 3
            or of crustaceans, rrolluscs or other aqntin uaed must already be erigànating
            irr^rtetrates, unfit for furran ccrejTption ; greaves
ex 23.03    Residues from the rrartufacture of starch fran maize r^anufacture i n which a l l the maize used must already be
            (excluding corrjentrated stepping liquors), of a protein orioplnatirg
            coTtent, calculated on the dry prccixt, exceeding 40K by
            weight
ex 23.06    Oil cake and other solid residues resulting from the r^Brufacture in which a l l the olives used must already be
            extraction of olive oil, containing more then 3 % of oricpnating
            olive oil
23.CF       Preparations of a kind uaed i n animal feeding              tei/acture i n which a l l the cereals, sugar or molasses,
                                                                        maat, fiah or milk used must alieady be origànating
 24.02       Cigars, cheroots, cigarillos and cigarettes, of tchanm r-tenufacture i n which at least 70 % by weiçht of the
             or of tfTHTn substitutes                                   unrrBnufactured h t H r u or t d H i n refuse of heeding
                                                                        to. 24.Q1 used must already be cric^reting
 ex 24.03    STCking tujbacco                                           r-fen/acture in which at least 70 % by weight of the
                                                                         unrrao/actured trharm or tobacco refuse of heading to.
                                                                         24.01 used must alieady be originsting
                                                                                                                            109
 ---pagebreak---   HS                Description of product                  working or processing
  Heading                                          carried out on non-originating cater i a I s
  No.                                                   that confers originating status
      O)                  (2)                                         (3)
ex 2504   Natural crystalline graphite, with    Enriching of the carbon content, purifying and
          enriched carbon content, purified     grinding of crude crystalline graphite
          and ground
ex 2515   Marble, ierely cut by sawing or       Cutting, by sawing or otherwise, of marble (even
          otherwise Into blocks or slabs of a    If already sawn) of a thickness exceeding 25 cm
          rectangular (Including square) shape,
          of a thickness not exceeding 25 ci
ex 2516   Granite porphyry, basalt, sandstone   Cutting, by sawing or otherwise, of stones (even
          and other •onuiental and building      if already sawn) of a thickness exceeding 25 cm
          stones, ierely cut by sawing or
          otherwise, into blocks or slabs of a
          rectangular (including square) shape,
          of a thickness not exceeding 25 CR
ex 2518   Calcined dolomite                     Calcination of dolomite not calcined
                                                                                                110
 ---pagebreak---                                          (2)                                                       (3)
ex 2519      Crushed natural magnesium carbonate (magnesite).            Manufacture in which all the materials used are
             m hermetically sealed containers, and magnesium             classified within a heading other than that of the
             oxide, whether or not pure, other than fused                product. However, natural magnesium carbonate
             magnesia or dead-burned (sintered) magnesia                 (magnesite) may be used
ex 252C      Plasters specially prepared for dentistry-                  Manufacture in which the value of ail the materials
                                                                         used does not exceed 50 °/o of the ex-works price of
                                                                         the product
ex 2524      Natural asbestos fibres                                     Manufacture from asbestos concentrate
ex 2525      Mica powder                                                 Grinding of mica or mica waste
ex 2530      Earth colours, calcined or powdered                         Calcination or grinding of earth colours
ex 2707      Oils in which the weight of the aromatic consti-            These are Annex II products
             tuents exceeds that of the non-aromatic consti-
             tuents, being oils similar to mineral oils obtained bv
             distillation of high temperature coal ur, of which
             more than 65 °/e by volume distils at a temperature
             of up ic 25C r C (including mixtures of petroleum
              spin: and benzole), for use as power or heating
             fuel*
     27>      Mineral oiU nnd products ol thrir distillation, bitu-       I hrsr are Annex 11 product^
     to       minous substances, mineral waxes
     2~)5
 ex Ch.ir'cr  Inor^snic      chemicals.     organic    or      inorganic  Manufacture in which all the materials used are
              compounds of precous metaK of rare earth meta!'.            classified within a heading o t h c than tha: of the
                                                         1
              o* radioactive elements or o* isotope . except for          procuct However, materials classified within the same
              heading Nos ex 2-11 and t- 2S33 for which the               heading mav be used provided their value does no:
              "j!rr are set out beic*»                                    exceed 2: V: of the ex-works price of the product
 ex 2811      >u!n-.ur tncxiae                                            Manufacture from suiphur dioxide
 ex 2k-3      Aiunvmum sulphate                                           Manufacture in which the vaiue of all the materials
                                                                          used does not exceed ?Z "•': •.he ex-work 1 price or
                                                                          thr product
 ex Char*     Orca-iic chemicals, excep'. for head-ng Nos ex              Manufacture in which all the materials used are
              : « : ! . ex 29:2, ex 29:5, 2915. ex 2932. 2933 .nnd        classified within a heading other than that of the
               2°3 J . for which the position is set out below              roduci However, materials classified within the same
                                                                          E eading may be used provided their value does not
                                                                          execeà 2C 3/c of the ex-works price of the product
  ex 29C1      Arvclic hvdrocarbons for use as power or heating           These are .Annex II products
               fuels
 ex 29C2       Cvclanes and cyclenes (other than azulenes),               These arc Annex II products
               benzene, toluene, xylenes, for use as power or
               heating fuels
 ex 29:5       Meta! alcoholates of alcohols of this heading and           Manufacture from materials of any heading, including
               of ethanol or glycerol                                      other materials of heading Ne 29C5. However, metai
                                                                           alcoholates of this heading may be used, provided the::
                                                                           value does not exceed 21 3/: of the ex-works price of
                                                                           the product
               batv-rated acyclic monocarncx-.lic acids and their          Manufacture from materials of an;, heading Howe, e:.
               anhsdndes. halides. peroxices and peroxvacid'.              the value of all the materials of heading Nos 2915 and
               their halogenated.        sulphonated.      nitrated or     2° 16 used mav not exceed 2Z '•': of the ex-works price
               nurosated derivatives                                       o? the product
  ex 295;      — Interna!       ethers    and    their     halogenated.    Manufacture from materials of am heading However.
                     sulphonated. nitrated or mtrosated dérivâtes          tne value of all the materials of heading No 29C9 used
                                                                           mav not e.xcecc 2: '-/: of the ex-works price of the
                                                                           product
                                                                                                                           111
 ---pagebreak---             0)                                          (2)                                                  (3)
    ex 2932                 — Cyclic acetals and internal hemiaceuls and their      Manufacture from materials of any heading
        (cont'd)                halogenated, sulphonated, nitrated or nitrosated
                                dérivâtes
        2933                 Heterocyclic compounds with nitrogen hetero-
                             atom(s) only; nucleic acids and their salts:
                             — Lactams, other than 6-hexanelactam (epsilon-         Manufacture from materials of any heading. However,
                                caprolactam);        monoazepines;      diazepines; the value of all the materials of heading Nos 2932 and
                                azocines (whether or not hydrogenated)              2933 used may not exceed 30 °/o of the ex-works price
                                                                                    of the product (')
                             — Other                                                Manufacture from matenals of any heading. However,
                                                                                    the value of all the matenals of heading Nos 2932 and
                                                                                    2933 used may not exceed 20 °/o of the ex-works price
                                                                                    of the product
        2934                 Other heterocyclic compounds
                             — 6-Aminopenicillanic acid, 7-aminocephalospo-         Manufacture from materials of any heading. However,
                                ranic     acid     and     7-aminodesacetoxycephal  the value of all the materials of heading Nos 2932.
                                osporanic acid; compounds containing a pheno-       2933 and 2934 used may not exceed 3C % of the ex-
                                thiazine      ring-system     .(whether   or    not works price of the product (')
                                 hydrogenated), not further fused; monothia-
                                 monoazipines;       monothiins;    monooxamono-
                                 azines; monooxamonoazoles (whether or not
                                 hydrogenated)
                             — Other                                                 Manufacture from materials of an\ heading However,
                                                                                    the value of all the matenals of heading Nos 2932,
                                                                                     2933 and 2934 used may not exceed 20 c/e of the ex-
                                                                                    works price of the product
    ex Chapter 3C            Pharmaceutical products, except for heading Nos         Manufacture in which all the materials used are
                             3002, 30C3 and 3004, for which the rules are set        classified within a heading other than that of the
                             out below                                                 roduci However, materials classified within the same
                                                                                     E eading may be used provided their value does not
                                                                                     exceed 20 °/o of the ex-works pnee of the product
        3002                 Human blood; animal blood prepared for thera-
                             peutic, prophylactic or diagnostic uses; anusera and
                             other blood tractions; vaccines, toxins, cultures of
                             micro-organisms (excluding yeasts) and similar
                             products:
                             — Products consisting of two or more constituents       Manufacture from materials of any heading, including
                                 which have been mixed together for therapeutic      other materials of heading N o 30C2. The materials of
                                 or prophylactic uses or unmixed products for        this description may also be used, provided their value
                                 these uses, put up in measured doses or in forms    does not exceed 2C °/c of the ex-works pnee of the
                                 or packings for retail sale                         product
                             — Other:
                                 — Human blood                                       Manufacture from materials of any heading, includin_
                                                                                     other materials of heading No 30C2 The materials o
                                                                                     this desenption may also be used, provided their value
                                                                                                                                           S
                                                                                     does not exceed 2C °/e of the ex-works price of the
                                                                                     product
                                     Animal blood prepared for therapeutic or        Manufacture from materials of any heading, including
                                     prophylactic uses                               other materials of heading N o 30Ô2. The materials of
                                                                                     this description may also be used, provided their value
                                                                                     does not exceed 20 % of the ex-works price of the
                                                                                     product
                                     Blood fractions other than antisera, haemo-     Manufacture from materials of any heading, including
                                     globin and serum globulin                       other materials of heading No 3002. The materials of
                                                                                     this description may also Be used, provided their value
                                                                                     does not exceed 20 % of the ex-works price of the
                                                                                     product
                                     Haemoglobin, blood globulin        and   serum  Manufacture from materials of any heading, including
                                     globulin                                        other materials of heading N o 30C2 The materials o?
                                                                                     this description may also be used, provided their value
                                                                                     does not exceed 20 °/o of the ex-works price of the
                                                                                     product
                                     Othe                                            Manufacture from materials of any heading, including
                                                                                     other matenals of heading N o 30C2 The materials of
                                                                                     this description may also be used, provided their value
                                                                                     does not exceed 2C °/c of the ex-works price of the
                                                                                     product
    (') This rule shal; onlv jpph until 31 March 1991
(8)                                                                                                                                  112
 ---pagebreak---                                                       (2)                                                                (3)
     3003                 Medicaments (excluding goods of heading                 No          Manufacture in which:
     and                  30C2. 3005 or 3006)
     30:4                                                                                     — all the materials used are classified within a heading
                                                                                                   other than that of the product. However, matenals
                                                                                                   of heading No 3003 or 3004 may be used provided
                                                                                                   their value, taken together, docs not exceed 20 °/e
                                                                                                   of the ex-works price of the product, and
                                                                                              — the value of all the materials used does not exceed
                                                                                                   50 % of the ex-works price of the product
ex Chapter 31              Fertilizers except for heading N o ex 3105 for which               Manufacture in which all the materials used are
                           the rule is set out below                                          classified within a heading other than that of the
                                                                                                roduct However, materials classified within the same
                                                                                              E eading may be used provided their value does not
                                                                                              exceed 20 °/o of the ex-works pnee of the product
ex 31C5                    Mineral or chemical fertilizers containing two or                  Manufacture in which:
                           three of the fertilizing elements nitrogen, phos-
                           phorus and potassium; other fertilizers; goods of                  — all the materials used are classified within a heading
                           this chapter, in tablets or similar forms or in                          other than that of the product. However, materials
                           packages of a gross weight not exceeding 1C kg,                          classified within the same heading may be used
                           except for:                                                              provided their value does not exceed 2C °/c of the
                                                                                                    ex-works price of the product, and
                           —    Sodium nitrate
                                                                                              — the value of all the materials used does not exceed
                           —    Calcium cyanamide
                                                                                                    50 °/c of the ex-works price of the product
                           —    Potassium sulphate
                           —    Magnesium potassium sulphate
ex Chapt'                  Tanning or dyeing extracts, tannins and their deri-                 Manufacture in which all the materials used are
                           vatives, dyes, pigments and other colouring matter,                classified within a heading other than that of the
                           paints and varnishes; putts and other mastics, inks,               product However, materials classified within the same
                           except for heading Nos ex 32C1 and 32C5. for                        heading may be used provided their value does not
                           which the rules are set out below                                  exceed 2C °/c of the ex-works price of the product
                            Tannins and their salts, ethers, ester* and other                  Manufacture from tanning extracts of vegetable ongin
                            Orrivatives
                            Colour lakes, preparations as specified in note 3 to               Manufacture from materials of any heading, except
                            thi< chapter based on colour lakes Cl                              heading Nos 32C3. 3204 and 3215. However, materials
                                                                                               from heading No 3205 mav be used provided their
                                                                                               s.ilue does not exceed 2: c/: of the ex-works price of
                                                                                               the product
 ex Chapter 33                                                                                 Manufacture in which all the materials used are
                            toilet preparations, except for heading No 3301,                   classified within a heading other than that of the
                            for which the rule is set out beiow                                  roduct. However, materials classified within the same
                                                                                               E eading may be used provided their value does no*,
                                                                                               exceed 2C °/e of the ex-works price of the product
      33:i                  Essential oils (terpeneless or not), including                     Manufacture from materials of any heading, including
                            concretes and absolutes; resinoids; concentrates of                materials of a different 'group' (:) within this heading.
                            essential oils in fats, in fixed oils, in waxes or the             However, materials of the same group may be used,
                            like, obtained by enfleurage or maceration; terpenic               provided their value does not exceed 2C °/o of the ex-
                            by-products of the detcrpenation of essential oils;                works pnee of the product
                            aqueous distillates and aqueous solutions of
                            essential oils
 (') Note .; io Charti-- "O sa\< iha: these preparations arr those of a kind used for colouring anv material or used a* ingredient» m the manufacturing of
     colour np preparations, provided thev are not classified within another heading in Chapter >Z
 (r) A 'jroun is reci*'i'"H »i »"v pan; of the heading separated from the reit b\ a semicolon
                                                                                                                                                 113
 ---pagebreak---        (J)                               (2)
ex Chapter 34  Soap, organic surface-active agents, washing prepa-   Manufacture in which all the materials used are
               rations, lubricating preparations, artificial waxes,  classified within a heading other than that of the
               prepared waxes, polishing or scouring preparations,     roduct. However, materials classified within the same
               candles and similar articles, modelling pastes,
               'dental waxes' and dental preparations with a basis
                                                                     E eading may be used provided their value does not
                                                                     exceed 20 °/o of the ex-works pnee of the product
               of plaster; except for heading Nos ex 3403 and
               3404, for which the position is set out below
ex 3403        Lubricating preparations containing petroleum oils    These are Annex II products
               or oils obtained from bituminous minerals,
               provided they represent less than 70 % by weight
ex 3404        Artificial waxes and prepared waxes:
               — *w"ith a basis of paraffin, petroleum waxes,        These are Ajinex II products
                    waxes obtained from bituminous minerals, slack
                    wax or scale wax
               — Other                                                Manufacture from materials of any heading, except:
                                                                     — hydrogenated oils having the character of waxes of
                                                                           heading No 1516
                                                                     — fatty acids not chemically defined or industrial fatty
                                                                           alcohols having the character of waxes of heading
                                                                           No 1519
                                                                      — matenals of heading No 3404
                                                                      However, these materials may be used provided their
                                                                      value does not exceed 20 °/c of the ex-works pnee of
                                                                      the product
ex Chapter 35   Albuminoidal substances; modified starches; glues;    Manufacture in which all the matenals used are
                enzymes; except for heading Nos 3505 and ex 3507      classified within a heading other than that of the
                for which the rules are set out below                 product "However, matenals classified within the same
                                                                      heading may be used provided their value does not
                                                                      exceed 2C °/c of the ex-works price of the product
    3505        Dextrins and other modified starches (for example,
                pregelatinized or esterified starches), glues based
                on starches, or on dextrins or other modified
                starches:
                     Starch ethers and esters                          Manufacture from materials of any heading, including
                                                                      other matenals of heading No 3505
                — Oih<                                                 Manufacture from materials of any heading, except
                                                                       those of heading N o 1108
 ex 3507         Prepared   enzymes    not   elsewhere  specified or   Manufacture in which the value of all the materials
                included                                               used does not exceed 50 °/o of the ex-works price of
                                                                       the product
    Chapter 36  Explosives; pyrotechnic products; matches; pyro-       Manufacture in which all the materials used are
                phonc alloys, certain combustible preparations         classified within a heading other than that of the
                                                                         roduct. However, materials classified within the same
                                                                       E eading may be used provided their value does not
                                                                       exceed 20 % of the ex-works pnee of the product
 ex Chapter 37   Photographic or cinematographic goods; except for      Manufacture in which all the materials used are
                 heading Nos 3701, 3702 and 3704 for which the         classified within a heading other than that of the
                 rules are set out below                                 roduct. However, matenals classified within the same
                                                                       E eading may be used provided their value does not
                                                                       exceed 20 °/o of the ex-works price of the product
                                                                                                                        114
 ---pagebreak---         (I)                                (2)                                                      O)
   3701         Photographic plates and film in the flat, sensitized,
                unexposed, of any material other than paper,
                paperboard or textiles; instant pnnt film in the flat,
                sensitized, unexposed, whether or not in packs:
                — Instant print film for colour photography, in         Manufacture in which all the materials used are
                    packs                                               classified within a headine other than that of the
                                                                        product However, materials from heading N o 3702
                                                                        may be used provided their value does not exceed
                                                                        30 °/o of the ex-works price of the product
                — Other                                                 Manufacture in which all the materials used are
                                                                        classified within a heading other than heading N o 3701
                                                                        or 3702
   37c:         Photographic film in rolls, sensitized, unexposed, of   Manufacture in which all the materials used are
                any material other than paper, paperboard or            classified within a heading other than heading No 37C1
                textiles, instant print film in rolls, sensitized,      or 3702
                unexposed
   3704         Photographic plates, film, paper, paperboard and        Manufacture in which all the materials used are
                textiles, exposed but not developed                     classified within a heading other than heading Nos
                                                                        3701 to 3704
ex Chapter 36   Miscellaneous chemical products; except for             Manufacture in which all the matenals used are
                heading Nos ex 3801, ex 3803, ex 3805, ex 3806,         classified within a heading other than that of the
                ex 3807, 3808 to 3814, 3818 to 3820, 3822 and           product. However, materials classified within the same
                3823 for which the rules are set out below              heading may be used provided their value does not
                                                                        exceed 20 °/c of the ex-works price of the product
ex 3801             Colloidal graphite in suspension in oil and semi-   Manufacture in which the value of all the materials
                    colloidal graphite, carbonaceous pastes for elec-   used does not exceed 5C °/c of the ex-works price of
                    trodes                                              the product
                    Graphite in paste form, being a mixture of more     Manufacture from materials of any heading However,
                    than 3C Vc by weight of graphite with mineral       the value of the materials of heading No 3*'3 usee
                    oils                                                must not exceed 2: °/: of the ex-works price of the
                                                                        product
ex 38C?         Refined tall oil                                         Refining of crude tall oil
ex 38:5         Spirits of sulphate turpentine, purified                 Purification by distillation or refining of raw spirits of
                                                                        sulphate turpentine
ex 38D6         Ester gums                                               Manufacture from resin acids
ex 383-7      i 1"ood pitch (wood tar pitch)                             Distillation of wood tar
   380K       |  Miscellaneous chemical products
   to
   3814
   3818             Prepared      additives    for   lubricating   oil. These arc Annex 11 products
   to               containing petroleum oils or oils obtained from
   382C             bituminous minerals, of heading No 3811
   3822
   and
   3823             The following of heading No 3823:                    Manufacture in which all the materials used are
                    — Prepared binders for foundry moulds or             classified within a heading other than that of the
                         cores based on natural resinous products        product. However, matenals classified within the same
                                                                         heading may be used provided their value does not
                    — Naphthenic acids, their water insoluble salts     exceed 2C % of the ex-works price of the product
                         ana their esters
                    — Sorbitol other than that of heading No 2905
                    — Petroleum sulphonates. excluding petroleum
                         sulphonates of alkali metals, of ammonium
                         or of ethanolamines; thiophenated sulphonic
                         acids of oils obtained from bituminous
                         minerals, and their salts
                    — Ion exchangers
                    — Getters for vacuum tubes
                    — Alkaline iron oxide for the purification of
                         gas
                                                                                                                           115
 ---pagebreak---               0)                                            (2)                                                                 (3)
        3108                       — Ammoniacal gas liquors and spent oxide
        to                             produced in coal gas purification
        3814                       — SuJphonaphtbenic           acids,      their   water
        3818                            insoluble salts and their esters
        to
         3820                      — Fusel oil and Dippei's oil
         3822                      — Mixtures of salts having different anions
         and
         3823                      — Copying pastes with a basis of gelatin,
         (cont'd)                       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 produa
ex 3901 to 3915                Plastics in primary forms, waste, parings and scrap, of
                               plastic; except for beading N o ex 3907 for which the
                               rule is set out below
                               — Addition bomopolymerizarion products                           Manufacture is which:
                                                                                                — the value of all the materials used does not exceed 50 %
                                                                                                    of the ex-works price of the product, and
                                                                                                — the value of any materials of Chapter 39 used does not
                                                                                                    exceed 20% of the ex-works price of the produa (')
                                    Other                                                       Manufacture in which the value of the materials of
                                                                                                Chapter 39 used does not exceed 20 % of the ex-works
                                                                                                price of the produa (')
 ex 3907                        Copolymer, made from polycarbonate and acrylo-                  Manufacrure in which all the materials used are classified
                                nitrile-butadicne-styrene copolymer (ABS)                       within a heading other than that of the produa. However,
                                                                                                materials classified within the same heading may be used
                                                                                                provided their value does not exceed 50 % of the ex-works
                                                                                                price of the produa
 ex 3916 to 3921                Semi-manufactures and articles of plastics, except
                                for headings Irfos ex 3916, ex 3917 and ex 3920, for
                                which the rules are set our below
                                — Flat products, further worked than only                        Manufacture in which the value of any materials of
                                     surface-worked or cut into forms other than                 Chapter 39 used does not exceed 50% of the ex-works
                                     rectangular (including square); other products,             price of the produa
                                     further worked than only surface-worked
                                — Other
                                     — Addition homopolymerization products                      Manufacture in which:
                                                                                                 — the value of all the materials used does not exceed 50 %
                                                                                                     of the ex-works price of the produa, and
                                                                                                 — the value of any materials of Chapter 39 used does
                                                                                                     not exceed 20% of the ex-works price of the
                                                                                                     produa (')
                                     — Other                                                     Manufacrure in which the value of any matenals of
                                                                                                 Chapter 39 used does not exceed 20% of the ex-works
                                                                                                 price of the produa ( ' )
  (') In the ca*e of product! composed of rruncnaJi classified within both heading Not 3901 to 3906 , on the one hand, and within heading Not 3907 to 3911, on the
      other hand, chu restriction only applies to that group of matenali which predominates by weight in the produa.
                                                                                                                                                         116
 ---pagebreak---            (1)                                           tt)                                            (3)
 ex 3916 and ex 3917      Profile shapes and tubes                        Manufacture in which:
                                                                          — the value of all the materials used doe» not exceed 50 %
                                                                              of the ex-works price of the p r o d u a , and
                                                                          — the value of any materials classified in the same beading
                                                                               as the produa does not exceed 20 % of the ex-works
                        !                                                      price of the p r o d u a
  ex 3920                  lonomer sheet or film                           Manufacture from a thermoplastic partial salt which
                                                                           is a copolymer of ethylene and metacryuc acid partly
                                                                          neutralized with metal ions, mainly zinc and sodium
    3922           Articles of plastic                                  Manufacture in which the value of all the materials
    to                                                                  used does not exceed 50 Vo of the ex-works price of
    3926                                                                the produa
ex 4001             Laminated slabs of crepe rubber for shoes           Lamination of sheets of natural rubber
    4005           Compounded rubber, unvulcanized,          in primary Manufacture in which the value of all the materials
                   forms or in plates, sheets or strip                  used, except natural rubber, does not exceed 50 °/b of
                                                                        the ex-works price of the produa
    4012            Retreaded or used pneumatic tyres of rubber; solid
                    or cushion tyres, interchangeable tyre treads and
                    tyre flaps of rubber:
                    — Retreaded pneumatic, solid or cushion, tyres of    Retreading of used tyres
                         rubber
                    — Other                                              Manufacture from materials of any heading, except
                                                                         those of heading N o 4011 or 4012
ex   4037           Articles of hard rubber                              Manufaaure from hard rubber
                                                                                                                               117
 ---pagebreak---         (>•                            (2)                                                   (3)
ex 4102     Raw skins of sheep or lambs, without wool on            Removal of wool from sheep or lamb skins, with wool
                                                                    on
    4104    Leather, without hair or wool other than leather of     Retanning of pre-tanned leather
    to      heading N o 4108 or 4109                                or
    4107                                                            Manufacture in which all the materials used are
                                                                    classified within a heading other than that of the
                                                                    produa
    4109    Patent leather and        patent   laminated   leather; Manufaaure from leather of heading Nos 4104 to
            metallized leather                                      4107 provided its value does not exceed 50 °/o of the
                                                                    ex-works price of the produa
ex 4302     Tanned or dressed furskins, assembled:
            — Plates, crosses and similar forms                     Bleaching or dyeing, in addition to cutting and
                                                                    assembly of non-assembled unned or dressed furskins
            — Other                                                 Manufacture from non-assembled, unned or dressed
                                                                    furskins
    4303    Articles of apparel, clothing accessories and other     Manufaaure from non-assembled, unned or dressed
            articles of furskin                                     furskins, of heading No 43C2
ex 4403     V o o d roughly squared                                  Manufaaure from wood in the rough, whether or not
                                                                    stripped of its bark or merely roughed down
ex 4407     ^ o o d sawn or chipped lengthwise, sliced or peeled,    Planing, sanding or finger-jointing
            of a thickness exceeding 6 mm. planed, sanded or
            finger-jointed
 ex 440R    Veneer sheets and sheets for plywood, of a               Splicing, planing, sanding or f'inçer-iointing
            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    — V o o d (including stnps and friezes for parquet       Sanding or finger-jointing
                 flooring, not assembled') continuously shaped
                 (tongued,      grooved,     rebated,   chamfered.
                 V-tomted. beaded, moulded, rounded or the
                 like i along any of its edges or faces, sanded or
                 finger-jointed
            — Bcadings and mouldings                                 Beading or moulding
 ex 4410     Beadings and mouldings, including             moulded   Beading or moulding
     to      skirting and other moulded boards
 ex 4413
 ex 4415     Packing cases, boxes, crates, drums and similar         Manufaaure from boards not cut to size
             packings, of wood
 ex 4416     Casks, barrels, vats, tubs and other          coopers'  Manufacture from riven sxaves. not further worked
             products and parts thereof, of wood                     than sawn on the two principal surfaces
 ex 4418     — Builders' joinery and carpentrv of wood               Manufaaure in which all the materials used are
                                                                     classified within a heading other than that of the
                                                                     product. However, cellular wood panels, shingles and
                                                                     shales may be used
             — Beadings and mouldings                                Beading or moulding
 ex 4421     Match splints; wooden pegs or pins for footwear         Manufacture from w-ood of any heading except drawn
                                                                     wood of heading No 44C9
                                                                                                                    118
 ---pagebreak---               (1]                                        (2)                                                              (3)
         4503                Articles of natural cork                                           Manufacture from cork of heading N o 4501
    ex 4811                  Paper and paperboard, ruled, lined or squared only                 Manufaaure from paper-making materials of Chapter
                                                                                                47
                             Carbon paper, self-copy paper and other copying                    Manufaaure from paper-making materials of Chapter
         4816                or transfer papers (other than those of heading N o                47
                             4809), duplicator stencils and offset plates, of
                             paper, whether or not put up in boxes
                             Envelopes, letter cards, plain postcards and corre-                Manufacture in which:
          4817               spondence cards, of paper or paperboard; boxes,                    — all the materials used are classified within a heading
                             pouches, wallets ana writing compendiums, of                           other than that of the product, and
                             paper or paperboard, conuining an assortment of
                             paper suuonery                                                     — the value of all the materials used does not exceed
                                                                                                    50 % of the ex-works price of the produa
    ex 4818                  Toilet paper                                                       Manufaaure from paper-making materials of Chapter
                                                                                                47
    ex 4819                   Canons, boxes, cases, bags and other packing                       Manufaaure in which:
                              containers,
                                 ntainers, of paper, paperboard,
                                                     paperi         cellulose wadding
                                                                                                — all the materials used are classified within a heading
                                  webs of' cellulose
                                              "      fibres
                                                     fit                                             other than that of the produa, and
                                                                                                — the value of all the materials used does not exceed
                                                                                                     50 % of the ex-works pnee of the produa
     ex 482:                  Letter pads                                                        Manufaaure in which the value of all the materials
                                                                                                 used does not exceed 50 % of the ex-works price of
                                                                                                 the produa
     ex 4823                  Other paper, paperboard, cellulose wadding and                     Manufaaure from paper-making materials of Chapter
                              webs oi cellulose fibres, cut to size or shape                     47
          49C9                Pnnted or illusrrated postcards; printed cards                     Manufaaure from materials         not   classified  within
                              beanng       personal      greetings,     messages      or         heading N o 4909 or 4911
                              announcements, whether or not illustrated, with or
                              without envelopes or trimmings
          49i:                Calendars of any kind, printed, including calendar
                              blocks :
                              — Calenders of the 'perpétuai' type or with                         Manufaaure in which:
                                   replaceable blocks mounted on bases other than                — ail the materials used are classified within a heading
                                   paper or paperboard                                               other than that of the produa, and
                                                                                                 — the value of all the materials used does not exceed
                                                                                                      50 °/o of the ex-works pnee of the produa
                              — Other                                                             Manufacture from materials       not   classified  within
                                                                                                  heading N o 4909 or 4911
      ex 50C3                  Silk waste (including cocoons unsuiuble for                        Carding or combing of silk waste
                               reeling, yarn waste and garnetted stock), carded or
                               combed
           5501                Man-made suple fibres                                              Manufacture from chemical materials or textile pulp
           to
           5507
ex Chapters 50 to 55       : Yarn, monofilament and thread                                   Manufacture from ('):
                                                                                             — raw silk, sQk waste, carded or combed or otherwise
                                                                                                processed for spinning,
                                                                                             — other natural fibres, not carded, combed or otherwise
                                                                                                processed for spinning,
                                                                                             — chemical materials or textile pulp, or
                                                                                             — paper-making marenals
      (') For special condtiunt reining to producu rosde of * mixture of textile materials, KC muoductory nou 6
                                                                                                                                                    119
 ---pagebreak--- 8. 8. 88                                       Official Journal of the European Communities                                          No L 216/33
        (l)                                        (2)                                                                (3)
ex Chapter 50           Voven fabrics:
    to                                                                                       Manufaaure from single yam (')
    Chapter 55          — Incorporating rubber thread
                        — Other                                                              Manufaaure from (') :
                                                                                             — coir yam,
                                                                                             — natural fibres,
                                                                                             —- man-made staple fibres not carded or combed or
                                                                                                 otherwise processed for spinning,
                                                                                             — chemical materials or textile pulp, or
                                                                                             — paper
                                                                                             or
                                                                                             Printing accompanied by at least two preparatory or
                                                                                             finishing operations (such as scouring, bleaching,
                                                                                             mercerizing, beat setting, raising, calendering, shrink
                                                                                             resistance processing, permanent finishing, decaoxing,
                                                                                             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 produa
ex Chapter 56           Padding, fell and non-wovens; special yarns, twine                    Manufaaure from ( l ):
                         cordage, ropes and cables and articles thereof
                         except for heading Nos 5602, 5604, 5605 and 5606,                   — coir yam,
                         for which the rules are set out below                               — natural fibres,
                                                                                             — chemical materials or textile pulp, or
                                                                                              — paper-making materials
     5602                Felt, whether or not impregnated, coated, covered
                         or laminated:
                         — Needleloom felt                                                    Manufaaure from (') :
                                                                                              — natural fibres,
                                                                                              — chemical materials or textile pulp
                                                                                              However:
                                                                                              — polypropylene filament of heading No 5402,
                                                                                              — polypropylene fibres of heading No 5503 or 5506,
                                                                                                  or
                                                                                              — polypropylene filament tow of heading No 5501,
                                                                                              of which the dénomination in all cases of a single
                                                                                              filament or fibre is less than 9 decitex may be used
                                                                                              provided that their value does not exceed 40 Wo of the
                                                                                              ex-works price of the produa
                          — Other                                                             Manufaaure from (*):
                                                                                              — natural fibres,
                                                                                              — man-made staple fibres made from casein, or
                                                                                              — chemical materials or textile pulp
     5604                 Rubber thread and cord, textile covered; textile
                          yam, and strip and the like of beading No 5404 or
                          5405, impregnated, coated, covered or sheathed
                          with rubber or plastics:
                          — Rubber thread and cord, textile covered                            Manufaaure from rubber thread or cord, not textile
                                                                                               covered
 C) For special conditions relating to producu made of a mixture of textile materials, sec introductory note 6.
                                                                                                                                              11^
                                                                                                                                              JL r« •.../
 ---pagebreak---        (1)                                      (2)                                                               (3)
  5604                — Other                                                            Manufacture from ('):
  (cont'd)
                                                                                        — natural fibres not carded or combed or otherwise
                                                                                             processed for spinning,
                                                                                        — chemical materials or textile pulp, or
                                                                                        — paper-making materials
  5605                Metallized yam, whether or not gimped, being                       Manufacture from('):
                      textile yam, or strip or the like of heading No 5404
                      or 5405, combined with metal in the form of                        — natural fibres,
                      thread, strip or powder or covered with metal                     — man-made suple fibres not carded or combed or
                                                                                             otherwise processed for spinning,
                                                                                         — chemical materials or textile pulp, or
                                                                                         — paper-making matenals
  5606                Gimped yam, and strip and the like of heading No                   Manufaaure from (') :
                      5404 or 5405, gimped (other then those of heading
                      No 5605 and gimped horsehair yam); chenille yam                    — natural fibres,
                      (including flock chenille yam); loop wale-yam                      — man-made suple fibres not carded or combed or
                                                                                             otherwise processed for spinning,
                                                                                         — chemical materials or textile pulp, or
                                                                                         — paper-making materials
  Chapter 57          Carpets and other textile floor coverings:
                      — Of needleloom felt                                               Manufaaure from ('):
                                                                                         — natural fibres, or
                                                                                         — chemical materials or textile pulp
                                                                                         However:
                                                                                         — polypropylene filament of heading No 5402,
                                                                                         — polypropylene fibres of heading No 5503 or 5506,
                                                                                             or
                                                                                         — polypropylene filament tow of heading No 5501,
                                                                                         of which the denomination in all cases of a single
                                                                                         filament or fibre is less than 9 decitex may be used
                                                                                         provided that their value does not exceed 40 % of the
                                                                                         ex-works pnee of the produa
                      — Of other felt                                                     Manufaaure from (') :
                                                                                         — natural fibres not carded or combed or otherwise
                                                                                              processed for spinning, or
                                                                                         — chemical materials or textile pulp
                           Other                                                          Manufacture from ('):
                                                                                         — coir yarn,
                                                                                         — synthetic or artificial filament yarn,
                                                                                         — natural fibres, or
                                                                                         — man-made suple fibres not carded or combed or
                                                                                              otherwise processed for spinning
) For special condiuons rdaung to producu made of a mixture of textile materials, see introductory note 6
                                                                                                                                        m
 ---pagebreak---           (1)                                              (2)                                                                    (3)
  ex Chapter 58             Special woven fabrics; tufted textile fabrics; lace;
                            tapestries; trimmings, embroidery, except for
                            heading Nos 5805 and 5810; the rule for heading
                            N o 5810 is set out below:
                            — Combined with rubber thread                                                Manufaaure from single yarn (')
                            — Other                                                                      Manufaaure from (');
                                                                                                         — natural fibres,
                                                                                                         — man-made suple fibres not carded or combed or
                                                                                                              otherwise processed for spinning, or
                                                                                                         «— chemical materials or textile pulp
                                                                                                          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 °/o of
                                                                                                          the ex-works pnee of the produa
5810                   j Embroidery in the piece, in strips or in motifs                           Manufacrure in which:
                                                                                                   — all the materials used are classified within a heading
                                                                                                       other than that of the produa, and
                                                                                                   — the value of all the materials used does not exceed 50 %
                                                                                                       of the ex-works price of the product
     5901                   Textile fabrics coated with gum or amylaceous                                 Manufacture from varn
                             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 -.> kind u<ed for hat foundations
     59:2                    Tyre cord fabric of high tenacitv yarn of nylon or
                             other nolyamides, polyester*, or viscose rayon
                             — Conuining not more than ?•: V: by weight of                                 Manufacture from varn
                                   textile materials
                                   Otr                                                                     Manufacture from chemical materials or textile pulp
     59C3                    Textile fabrics impregnated coated, covered or                                Manufacture from varn
                             is-^inaied with plastics, othr' than those of heading
                             Ni- 5902
     5904                    Linoleum, whether or not cut to shape, floor                                  Manufaaure from varn C)
                             coverings consisting of a coating or covering
                             applied on a textile backing, whether or not cut to
                             shape
     5905                    Textile wall coverings:
                             — Impregnated, coated, covered or laminated with                              Manufacture from varn
                                   rubber, plastics or other materials
  fi For specii ciimt,• •• ->• rci.-uinc, to products made of .1 m u t u r r ot :r«ulr materials, ice intrr«juctorv note 6
                                                                                                                                                           122
 ---pagebreak---         (1)                                       (2)                                                             (3)
   5905                     Other                                                        Manufacture from ('):
    (cont'd)
                                                                                         — coir yarn,
                                                                                         — natural fibres,
                                                                                         — man-made suple fibres not carded or combed or
                                                                                             otherwise processed for spinning, or
                                                                                         — chemical materials or textile pulp
                                                                                         or
                                                                                         Printing accompanied by at least two preparatory or
                                                                                         finishing operations (such as scouring, bleaching,
                                                                                         mercerizing, heat setting, raising, calendering, shrink
                                                                                         resisunce processing, permanent finishing, decatizing,
                                                                                         impregnating, mending and burling) where the value of
                                                                                         the unprinted fabric used does not exceed 47,5 Vo of
                                                                                         the ex-works price of the produa
    5906                Rubberized textile fabrics, other than those of
                        heading No 5902:
                        — Knitted or crocheted fabrics                                    Manufaaure from (') :
                                                                                          — natural fibres,
                                                                                          — man-made suple fibres not carded or combed or
                                                                                              otherwise processed for spinning, or
                                                                                          — chemical materials or texule pulp
                        — Other fabrics made of synthetic filament yarn,                  Manufaaure from chemical materials
                            containing more than 90 % by weight of textile
                            matenals
                        — Other                                                           Manufaaure from yarn
     5907               Textile fabrics otherwise impregnated, coated or                  Manufaaure from yarn
                         covered; painted canvas being theatrical scenery,
                         studio backcloths or the like
ex 5908                  Incandescent gas mantles, impregnated                            Manufaaure from tubular knitted gas mantle fabric
     5909                Textile articles of a kind suiuble for industrial use:
     to
                         — Polishing discs or rings other than of felt of                 Manufaaure from yarn or waste fabrics or rags of
     5911
                             heading No 5911                                              heading No 6310
                         — "Woven fabrics, of a kind commonly used in                     Manufacture from ('):
                             papermaking or other technical uses, felted or
                                                                                          — coir yarn,
                             not, whether or not impregnated or coated,
                             tubular or endless with single or multiple warp              — from the following materials:
                             and/or weft, or flat woven with multiple warp
                             and/or weft of heading No 5911                                    — yarn of polytetrafluoroethylene (') (').
                                                                                               — yarn, multiple, of poh/amide, coated, im-
                                                                                                  pregnated or covered with a phenolic resin ('),
                                                                                               — yam of synthetic texule fibres of aromatic poly-
                                                                                                  amides, obuined by polycondensation of
                                                                                                   m-phenyienediamine and isophihaiic acid (*),
                                                                                               — monofil of polytetrafluoroethylene (*) ('),
                                                                                               — yarn of synthetic textile fibres of pory-^-phe-
                                                                                                  nylene terephthalamide ('),
                                                                                               — glass fibre yarn, coated with phenol resin and
                                                                                                   gimped with acrylic yam (*) ('),
                                                                                           — natural fibres,
                                                                                           — man-made suple fibres not carded or combed or
                                                                                               otherwise processed for spinning, or
                                                                                           — chemical materials or textile pulp
(') For special conditions relaunf. to producu made of a mixture of textile materials, see introductory nou 6.
(') This provision shall apply until 31 March 1991.
(') The use of this material is rcstncted to the manufacture of woven fabrics of a kind used in paper-making machinery.
                                                                                                                                             123
 ---pagebreak---         <1>                                         (2)                                                                (3)
    5909                — Otht                                                                Manufaaure from('):
   to                                                                                         — coir yarn,
    5911
    (cont'd)                                                                                  — natural fibres,
                                                                                              — man-made suple fibres not carded or combed or
                                                                                                  otherwise processed for spinning, or
                                                                                              — chemical materials or texule pulp
    Chapter 60           Knitted or crocheted fabrics                                         Manufaaure from (*) :
                                                                                              — natural fibres,
                                                                                              — man-made suple 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:
                         — Obuined by sewing together or otherwise                             Manufaaure from yarn (')
                              assembling, two or more pieces of knitted or
                              crocheted fabric which have been either cut to
                              form or obtained directlv to form
                         — Other                                                               Manufaaure from ('):
                                                                                               — natural fibres,
                                                                                               — man-made suple fibres not carded or combed or
                                                                                                   otherwise processed for spinning, or
                                                                                               — chemical materials or textile pulp
ex Chapt-.-r 62          Articles of apparel and clothing accessories, not                     Manufaaure from yarn (')
                         knitted or crocheted, except for heading Nos ex
                         62:2. ex 6204, ex 6206. eit 6209, ex 6210. 6213,
                         6214. ex 6216 and ex 6217 for which the rules are
                         set out below
ex   62C2                Somen's, girls' and babies' clothing and 'other                       Manufaaure from yam (')
ex   6204                 made-up clothing accessories', embroidered
                                                                                               or
ex   6206
ex   6209                                                                                      Manufacture from unembroidered fabnc provided the
     and                                                                                       value of the unembroidered fabnc used does not
ex 6217                                                                                        exceed 40 °/o of the ex-works pnee of the produa (')
ex 62IC                   Fire-resistant equipment of fabric covered with foil                 Manufacture from yarn (')
ex 6216                   of alumimzed polyester
     and                                                                                       or
ex 6217                                                                                        Manufacture from uncoated fabric provided the value
                                                                                               of the uncoated fabric used does not exceed 40 Vfc of
                                                                                               the ex-works pnee of the produa (')
     6213                 Handkerchiefs, shawls, scarves, mufflers, mantillas,
     and                  veils and the like:
     6214
                               Embroidered                                                      Manufacture from unbleached single yarn (') (')
                                                                                               or
                                                                                                Manufaaure from unembroidered fabric provided the
                                                                                               value of the unembroidered fabric used does not
                                                                                               exceed 40 °/c of the ex-works once of the produa (')
                          — Other                                                               Manufacture from unbleached single yarn (') (')
(') For spe:ial conditions relating to products made cf a mixture of textile materials, see introductory note 6
(') See introductr-- note 7
                                                                                                                                                124
 ---pagebreak---             (1)                                             (2)                                                                   (3i
301 to 6304                Blankets, travelling rugs, bed linenCTC;curtains, etc.;
                           other furnishing articles
                            — of felt, of non-wovens                                           Manufacture from ('):
                                                                                               — natural fibres, or
                                                                                               — chemical materials or textile pulp
                            — Otha:
                                 — Embroidered                                                 Manufaaure from unbleached single yam (Ml 2 )
                                                                                               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 produa
                                 — Other                                                       Manufaaure from unbleached single yarn (')(*)
       6305                  Sacks and bags, of a kind used for the packing of                      Manufaaure from('):
                             goods
                                                                                                   — natural fibres,
                                                                                                    — man-made suple fibres not carded or combed or
                                                                                                        otherwise processed for spinning, or
                                                                                                    — chemical materials or texule pulp
       6306                  Tarpaulins, sails for boats, sailboards or landcraft,
                             awnings, sunblinds, tents and camping goods:
                             — Of non-wovens                                                        Manufacture from('):
                                                                                                    — natural fibres, or
                                                                                                    — chemical materials or texule pulp
                                  Otht                                                              Manufacture from unbleached single yarn (')
   ex 6307                   Other made-up articles, including dress patterns                       Manufaaure in which the value of all the materials
                                                                                                    used does not exceed 40 °/o of the ex-works price of
                                                                                                    the product
        6308                  Set* consisting of woven fabric and yarn, whether                     Each item in the set must satisfy the rule which would
                             or not with accessories, for making up into rugs,                      apply to it if it were not included in the sa. However,
                             upestries-, embroidered uble cloths or serviettes or                    non-originating articles may be incorporated provided
                             sim:iar textile articles, put up in packings for reuil                  their toul value does not exceed 15 °/e of the ex-works
                              sair                                                                   price of the set
        6401                  Fo-"ear                                                                Manufacture from matenals of any heading except for
        to                                                                                           assemblies of uppers affixed to inner soles or to other
        64C5                                                                                         sole components of heading No 6406
        6503                  Felt hats and other felt headgear, made from the                       Manufacture from yarn or textile fibres (')
                              ha: bodies, hoods or plateaux of heading No 6501,
                              whether or not lined or trimmed
        6505                  Hats and other headgear, knitted or crocheted, or                       Manufacture from yarn or textile fibres
                              made up from lace, telt or other textile fabric, in
                              the piece (but not in strips), whether or not lined or
                              trimmed, hair-nets of any material, whether or not
                              lined or trimmed
        6601                  Umbrellas and sun umbrellas (including walking-                         Manufaaure in which the value of all the materials
                              stick umbrellas, garden umbrellas and similar                           used does not exceed 5C °/o of the ex-works pnee of
                              umbrellas)                                                              the produa
   (') For special conditions relanns to products made of a mixture of textile materials, see introduaorv note 6
   (') For knitted or crocheted articles, not elastic or rubbcnred, obtained by sewing or assembly of pieces of knitted or crocheted fabnc «cut out or knitted directly to
       shape) see introouctory note ~
    (') See introduaorv note 7
                                                                                                                                                              125
 ---pagebreak---           OJ                              (2)                                                         (3)
  ex 6803     Articles of slate or of agglomerated slate                  Manufaaure from worked slate
6812         Arrides of asbestos; articles of mixtures with a basis of Manufaaure from materials of any heading
             asbestos or of mixtures with a basis of asbestos and
             magnesium carbonate
  ex 6814     Articles of mica; including agglomerated or recon-          Manufaaure from worked mica (including agglom-
              stituted mica on a support of paper, paperboard or          erated or reconstituted mica)
              other materials
      7006     Glass of heading N o 7003, 7004 or 7005, bent,             Manufaaure from materials of heading N o 7001
               edge-worked, engraved, drilled, enamelled or
               otherwise worked, but not framed or fitted with
              other materials
      7007     Safety glass, consisting of toughened (tempered) or         Manufacture from materials of heading N o 7001
               laminated glass
      7008     Multiple-walled insulating units of glass                   Manufaaure from matenals of heading No 7001
      7009     Glass mirrors, whether or not framed, including             Manufaaure from materials of heading N o 7001
               rear-view mirrors
      7010     Carboys, bottles, flasks, jars, pots, phials, ampoules      Manufaaure in which all the materials used are
               and other conuiners, of glass, of a kind used for           classified within a heading other than that of the
               the conveyance or packing of goods, preserving jars         produa
               of glass, stoppers, lids and other closures, of glass
                                                                           or
                                                                           Cutting of glassware, provided the value of the uncut
                                                                           glassware does not exceed 3: :/ : of the ex-works price
                                                                           of the product
      701 :    Glassware of a knd used for table, kitchen, toilet,         Manufaaure in which all the matenals used are
               office, indoor decoration or similar purposes (other        classified within a heading other than that of the
               than :hai of heading No ~Z)Z or 7018)                       produa
                                                                           and
                                                                           Cutting of glassware, provided the value of the uncut
                                                                           glassware does not exceed 5C •!'. of the ex-works price
                                                                           of the product
                                                                            Hand-decoration (with the exception of silk screen
                                                                           printing) of hand-blown glassware, provided the value
                                                                           of the hand-blown glassware doc* not exceed 50 V: of
                                                                           thf ex-works price of the product
   ex 701 e     Articles (other than yarn) ."*' glass fibres                Manufacture from
                                                                           — uncoloured      slivers,    rovings. yarn   or    chopped
                                                                                strands, or
                                                                           — glass wool
   ex 7102      Worked precious or semi-precious stones (natural            Manufaaure from unworked precious or semi-precious
   ex 7103      synthetic or reconstructed)                                stones
      and
   ex 7104
      7106      Precious metals:
      710?
      and      — I.'nwrought                                                Manufaaure from matenals not            classified   within
      711C                                                                 heading No 7106, 7108 or 711:
                                                                           or
                                                                           Electrolytic, thermal or chemical separation of precious
                                                                           metals of heading No 7106. 7 i : 8 or 7110
                                                                           Alinving of preciouv metals ol (u-.iding No 7106. " i : *
                                                                           IT "MC with each other or »it!. base metaK
                   Scrrv-mar.ufactured or ;r rewder form (All)              Manufacture from unwrought precious metals
                                                                                                                               126
 ---pagebreak---          (1)                                              (2)                                                                   (3;
ex 7107               Metals clad             with   precious    meuls,   semi-manu-           M a n u f a a u r e from metals clad with precious metals,
ex 7109               factured                                                                 unwrought
    and
ex 7111
    7116              Articles of natural or cultured pearls, precious or                      Manufacture in which the value of all the matenals
                      semi-precious stones (natural, synthetic or recon-                       used does not exceed 50 °/c of the e x - w o r k s p n e e of
                      struaed)                                                                 the p r o d u a
    7117              Imitation jewellery                                                      M a n u f a a u r e in which all the materials used               are
                                                                                               dassified within a heading other than that of                     the
                                                                                               produa
                                                                                               or
                                                                                               Manufacture from base metal parts, not plated or
                                                                                               covered with p r e d o u s m e u l s , provided the value of all
                                                                                               the materials used d o e s not exceed 50 °/e of the ex-
                                                                                               works price of the p r o d u a
    7207               Semi-finished           products of iron or non-alloy steel              Manufacture from materials              of   heading     No    7201.
                                                                                                7 2 0 2 , 7 2 0 3 , 7204 or 7205
    7208               Fla:-rolled p r o d u c u , bars and rods, angles, shapes                Manufacture from ingots or other primary                  forms of
    to                 a r c sections of iron or non-allov steel                                heading N o 7206
    7216
    72P                ^T:re r>* :r?r. or n o n - a l l o v steel                               Manufacture from semi-finished materials of heading
                                                                                                N o 7207
ex 72 IS               S<-:ni !-:i:«!ini products, flat-roller, products, bars                   Manufai tu re from inp<                ->lhr- r'"".ar-.   fnrrtv.
     7219              anc . - - c angles, shapes and secuo';s of stainless                     heading N o 7 2 ! S
     to                ster:
     7222
                                        stainless steel                                          Manufacture from semi-finished materials of heading
                                                                                                 N o 7216
 ex 722*               Sem'-:'i-.:sned products, flat-rolled products, bars                      Manufacture from ingots or other p-rr.ars- forms of
     7225               anc r c c . . in irregulariy w o u n d coils, of other alloy             heading N c 722*
     to                 stee!
     7227
      7226              Oihv- nars and rods of other alloy steel; angles.                   |    Manufacture from ingots cr other pr.mary forms of
                        shape: anc sections, of other alio; steel, hollow                   j    heading N o 7206. 72IF or 7 2 2 -
                        dni: r.irs anc rods, of alloy or non alloy steel
      722°          I   I'Vc         ••' other allov steel                                        Manufaitj-t- from semi-finishec material' of heading
                                                                                                 N o 72Z *
  ex 7331                2 n e r • -i i : : n g                                                   M a n u f a c t j - e from materials of heading N o 7206
      73C2               Raiiw.-.y or tramway track construction material of                      Manufacture from materials of heading N o 7206
                         iron ,^r steel, the f o l l o w i n g : rails, check-rails and
                         rack rasis. switch blades, crossing frogs, point rods
                         and otner crossing pieces, sleepers (cross-ties), fish-
                         plates, chairs, chair w e d g e s , sole plates (base
                         platesi. rail clips, bedplates, ties and other material
                         speciah.-.ed for jointing or fixing rails
       73D4               T u b e ' , nines and hollow- profiles, of iron (other                  Manufacture from materials              of  heading     No    "206,
       7305               lhar ras: irr.ni or steel                                               7207, 721* or 7224
       and
       7306
       ex " 3 . 0 "       Tube cr pipe fittings of stainle's stee! 'ISO            Turning. ' drilling,           reaming,    threading,
                          N o X : CrNi.V'n l "] 2 '. consisting nf several         dcburring and sand-blasting of forged bianks
                          parts                                                    the value of which blanks dr>es not exceed
                                                                                   3 5 % of the ex works price of the product
      730F              St.-w"_r-- 'excluding prefabricated ouildings of                         Manufacture in which all the materials used are
                        hrac-r-r. N o 9406) and parts of structures (for                         classified within a heading other t h a - that of the
                        cxarr-.r'-. bridges and bridge-sections, lock-gates,                     product Hc^e^er,            welded angies. sharts and sections
                        t o w ; - , .ar.ice masts, roofs, roofing frameworks,                    of heading N o 7301 mav not be usee
                        doo-s and w i - d o w s and their frame? nnd thresholds
                        for      do-vs.         shutters,    balustrades,  pillars    and
                        c o l u m n s . , of iron or steel; "plates, rods, angles,
                        shapes, sections, tubes and the like, prepared for
                        use ir structures, of iron or steel
                                                                                                                                                              127
 ---pagebreak---                  (!)                              (2)                                                               (3)
      ex 7315        Skid-chains                                                    Manufaaure in which the value of all the materials of
                                                                                     heading No 7315 used does not exceed 50 °/o of the
                                                                                    ex-works price of the product
      ex 7322        Radiators      for   central  heating,  not  electrically       Manufacture in which the value of all the materials of
                     heated                                                          heading No 7322 used does not exceed 5 % of the ex-
                                                                                     works price of the product
      ex Chapter 7*  Copper and articles thereof, except for heading                 Manufacture in which:
                     Nos 74C1 to 7405; the rule for heading No ex 7403
                                                                                     — all the materials used are classified within a heading
                     is se: out below
                                                                                          other than that of the produa. and
                                                                                     — the value of al! the materials used does not exceed
                                                                                          5: c/o of the ex-works price of the orodua
      ex 7 4 - :     C"T>r*r- allovs. unwroug!1                                      Manufacture frorr.          -efinec     corner,    unwrought.   o:
                                                                                     waste and scrap
      ex Chapter 7 5  Nickel and articles thereof, except for heading N-J>S          Manufacture in which
                     • ? : i to " 5 : 3 .
                                                                                     — all the materials used arc classified within a heading
                                                                                          other than that of '.he product, and
                                                                                     — the value of ai! the mate-:.-»!- -.-s-c coe< not rxcerd
                                                                                          1
                                                                                            T "'- of the (•»•*.'•••.. :--!'.?• ~'. -:v p'.<du;-.
   ex Chapter          Aluminium and articles thereof, except for heading 1 Manufacture in which:
                       N'n' "rOl, "602 and c\ "616; :he rules for heading
                       Nos ~n01 and ex 761* are se: o,it below                 ! — all the materials used are classified wirhin a heading
                                                                               ;       other thar. rha: of the product, and
                                                                               l — the value of all the materials used does not exceed 50 %
                                                                               j       of the ex-works price of the produa
   76<M                    •wrought aiurriniu-n                                j Manufacture by thermal or electrolytic treatment from
                                                                                   un.illoyed aluminium or waste and scrap of aluminium
       ex 7616        •Viuminium amcles other thar.               cloth. gnil.
                                                      tar. gauze, cloth,              Manufacture in which
                      netting, fencing, reinforcin;   lg fabric and similar          — ail the matenals used are classified within a heading
                      materials (including endless bands) of aluminium
                                                                                          other than that of the product. However, gauze,
                      wire, and expanded metal of aluminium
                                                                                          cloth, grill, netting, fencing, reinforcing fabric and
                                                                                           similar materials (including endless bands) of
                                                                                           aluminium wire. o r expanded metal of aluminium
                                                                                           ••'.a-, be used, ant!
                                                                                      — the value of all the matenals used does not exceed
                                                                                           f : V: of the ex-works prtce of -.he produa
       ex Chapter 7¥  Lead and amcles thereof. exrcpi for heading Nos            '    Manufacture ir. which
                      ' - ! ! and 7R:2: the rule for h-adtng No T*CI is set      I           ...             ,                ,    . , .,.       , ,
                               .                                                 •    — a.: the materials usee arc class'* -.-c wnhir. a heading
                                                                                           other than :na: of the Droauc:. ar.d
                                                                                 j    — the value of all :he materials used does not exceed
                                                                                           ;
                                                                                             : '•': of the ex-wnrK.s price '"»f *nr product
9)                                                                                                                                               128
 ---pagebreak---         (1)                             (2)                                                     (3)
   7801        Unwrought lead:
               — Refined lead                                        Manufaaure from 'bullion' or 'work' lead
               — Other                                               Manufaaure in which all the materials used are
                                                                     classified within a heading other than that of the
                                                                     product. However, waste and scrap of heading N o
                                                                     7802 may not be used
ex Chapter 79  Zinc and articles thereof, except for heading Nos     Manufacture in which:
               7901 and 7902; the rule for heading N o 7901 is set
                                                                     — all the materials used are classified within a heading
               out below
                                                                          other than that of the product, and
                                                                     — the value of all the materials used does not exceed
                                                                          50 % of the ex-works price of the produa
    7901       Unwrought zinc                                         Manufaaure in which all the materials used are
                                                                     classified within a heading other than that of the
                                                                     produa. However, waste and scrap of heading N o
                                                                      7902 may not be used
ex Chaoter 8:  Tin and articles thereof, except for heading Nos       Manufaaure in which:
               8001. 8002 and 8007; the rule for heading No 8001
                                                                      — all the materials used are classified within a heading
               is set out below
                                                                          other than that of the produa, and
                                                                      — the value of all the materials used does not exceed
                                                                           50 % of the ex-works pnee of the produa
    8001        Unwrought tin                                         Manufaaure in which all the matenals used are
                                                                      classified within a heading other than that of the
                                                                      product. However, waste and scrap of heading No
                                                                      8002 may not be used
 ex Chapter 81  Other base meuls, wrought; articles thereof           Manufaaure in which the value of all the matenals
                                                                      classified within the same heading as the products used
                                                                      does not exceed 50 °/o of the ex-works price of the
                                                                      produa
     8206       Tools of two or more of the heading Nos 8202 to        Manufaaure in which all the materials used are
                8205, put up in sets for retail sale                  classified within a heading other than heading Nos
                                                                       8202 to 8205. However, tools of heading Nos 8202 to
                                                                       8205 may be incorporated into the set provided their
                                                                      value does not exceed 15 % of the ex-works pnee of
                                                                       the s «
     8207       Interchangeable tools for hand tools, whether or       Manufaaure in which:
                not power-operated, or for machine-tools (for
                example, for pressing, stamping, punching, tapping,   — all the materials used are classified within a heading
                threading, drilling, boring, broaching, milling,           other than that of the product, and
                turning or screwdrrving), including dies for drawing   — the value of all the matenals used does not exceed
                or extruding metal, and rock-drilling or earth-            40 °/e of the ex-works pnee of the produa
                boring tools
     82CP       Knives and cutting blades, for machines or for         Manufaaure in which:
                mechanical appliances
                                                                       — all the materials used are classified within a heading
                                                                            other than that of the product, and
                                                                       — the value of all the matenals used does not exceed
                                                                            40 °/o of the ex-works price of the product
                                                                                                                        129
 ---pagebreak---         (1)                                      (2)                                                            (3)
ex 8211               Knives with cutting blades, serrated or not (includ-          Manufaaure in which all the materials used are classi-
                      ing pruning knives), other than knives of heading            fied within a heading other than that of the product
                      No 8208                                                       However, knife blades and handles of base metal may
                                                                                    be used
    8214              Other articles of cudery (for example, hair clippers,         Manufaaure in which all the materials used are classi-
                      butcher's or kitchen cleavers, choppers and mincing           fied within a heading other than that of the produa.
                      knives, paper knives); manicure or pedicure sets              However, handles of base metal may be used
                      and instruments (including nail files)
    8215              Spoons, forks, ladles, skimmers, cake-servers, fish-          Manufaaure in which all the materials used are classi-
                       knives, butter-knives, sugar tongs and similar kit-          fied within a heading other than that of the produa
                      chen or tableware                                             However, handles o f base metal may be used
ex 8306                Statuettes and other ornaments, of base metal                Manufaaure in which all the materials used are classi-
                                                                                    fied within a heading other than that of the produa.
                                                                                    However, the other materials of heading N o 8306 may
                                                                                    be used provided their value does not exceed 30 °/o of
                                                                                    the ex-works price of the produa
                             Description of product                    'Working or processing carried out on non-onginaung materials
   HS heading No j                                                                      that confers origmaung status
         (11                           (21                                     (3)
 rx Chaptrr S 4     Nuclru reactors ('), boilers, ma-        Manufaaure                                  Manufacture in which the value of
                    chiner, and mechanical appliances,                                                   all the matenals used does not ex-
                                                             — in which the value of all the
                    parts thereof: except for those fall-                                                ceed 30 s/e of the ex-works price of
                                                                 materials used does not exceed          the product
                    ing within the following headings
                                                                 4C 7c of the ex-works price of
                  ! or parts of headings for which the
                                                                 the product, and
                    rules are set out below.
                  j 84:;. S4C3. ex 8404, 8406 to 84C9.       — where, within the above limit,
                  i 8-»!l, 6412, ex 8413, ex 8414,               the materials classified within
                  !  8415. 8418, ex 8419, 8420, 8423.            the same heading as the produa
                  i 8425 to 8430, ex 8431, 8439, 84*1.           are onlv used up to a value of
                  i M44 to 8447, ex 8448, 8452, 8456             5 °/e of the ex-works price of
                  j to $*6b. 8469 to 8472, R480. 8<.s2.          the product
                    S4M and 8485
     8402           Steam or other vapour generating         Manufaaure:                                  Manufacture in which the value of
                    boilers 'other than central heating                                                  all the materials used does not ex-
                     hot water boilers capable also oi       — in which the value of all the             ceed 25 6/e of the ex-works pnee of
                    producing low preasure steam),               materials used does not exceed          the produa
                     super heated water boilers                  40 -/o of the ex-works price of
                                                                 the produa, and
                                                             — where, within the above limit,
                                                                 the materials classified within
                                                                 the same heading as the produa
                                                                  are onlv used up to a value of
                                                                  5 °/o ot the ex-works price of
                                                                  the produa
     8403            Central heating boilers, other than     Manufaaure in which all the ma-              Manufaaure in which the value of
     and             those of heading No 8402, and           terials used are classified within a         all the matenals used does not ex-
 ex 8404             auxiliary plant for central heating     heading other than heading No                ceed 40 °/c of the ex-works price of
                     boilers                                 8403 or 8404. However, materials             the product
                                                             which are classified within heading
                                                             No 8403 or 8404 may be used pro-
                                                             vided their value, taken together,
                                                             does not exceed 5 % of tne ex-
                                                             works pnee of the product
                                                                                                                                       ISO
 ---pagebreak---        (1)                    (2)                                    (3)                                 (4)
   8406    Steam turbines and other vapour         Manufaaure in which the value of
           turbines                                all the materials used does not ex-
                                                   ceed 40 -/o of the ex-works price of
                                                   the produa
   8407    Spark-ignition      reciprocating    or Manufacture in which the value of
           rotary internal combustion piston       all the materials used does not ex-
           engines                                 ceed 40 °/o of the ex-works price of
                                                   the produa
   8406    Compression-ignition internal com-      Manufaaure in which the value of
           bustion piston engines (diesel or       all the materials used does not ex-
           semi-diesel engines)                    ceed 40 °/o of the ex-works price of
                                                   the produa
   8409     Parts suitable for use solely or prin- Manufaaure in which the value of
           cipally with the engines of heading     all the materials used does not ex-
            No 8407 or 8408                        ceed 40 % of the ex-works price of
                                                   the produa
   8411    Turbo-jets, turbo-propellers       and   Manufaaure:                          Manufaaure in which the value of
            other gas turbines                                                           all the materials used does not ex-
                                                   — in which the value of all the
                                                                                         ceed 25 °/o of the ex-works price of
                                                        materials used does not exceed
                                                                                         the produa
                                                        40 6/o of the ex-works price of
                                                        the produa, and
                                                    — where, within the above limit,
                                                        the materials classified within
                                                        the same heading as the produa
                                                        are onlv used up to a value of
                                                        5 °/o of the ex-works price of
                                                        the produa
   8412     Other engines and motors                Manufaaure in which the value of
                                                    all the materials used does not ex-
                                                    ceed 40 °/o of the ex-works price of
                                                    the product
ex 8413     Rotary positive, displacement pumps     Manufaaure:                          Manufaaure in which the value of
                                                                                         all the materials used does not ex-
                                                    — in which the value of all the
                                                                                         ceed 25 °/o of the ex-works price of
                                                        materials used does not exceed
                                                                                         the produa
                                                        40 °/c of the ex-works price of
                                                        the product, and
                                                    — where, within the above limit,
                                                        the materials classified in the
                                                        same heading as the produa are
                                                        only used up to a value of 5 °/e
                                                        of the ex-works price of the
                                                        produa
ex 8414     Industrial fans, blowers and the like   Manufaaure:                          Manufaaure in which the value of
                                                    — in which the value of all the      all the materials used does not ex-
                                                                                         ceed 25 °/o of the ex-works price of
                                                        materials used does not exceed
                                                                                         the produa
                                                        40 °/o of the ex-works price of
                                                        the product, and
                                                    — where, within the above limit,
                                                        the materials classified within
                                                        the same heading as the produa
                                                        are onlv used up to a value of
                                                        5 6/c of the ex-works price of
                                                        the product
                                                                                                                      131
 ---pagebreak---        (U                  (2)                                       (3)                                  (4)
   8415   Air conditioning machines, com-       Manufaaure in which the value of
          prising a motor-driven fan and ele-   all the materials used does not ex-
          ments for changing the temperature    ceed 40 °/o of the ex-works price of
          and humidity, including those ma-     the produa
          chines in which the humidity can-
          not be seperatery regulated
   8418   Refrigerators, freezers and other     Manufaaure:                             Manufaaure in which the value of
          refrigerating or freezing equip-                                              all the matenals used does not ex-
                                                — in *••-     rh the value of all the
          ment, electric or other heat pumps                                            ceed 25 °/e of the ex-works price of
                                                     m: *      is used does not exceed
          other than air conditioning ma-                                               the produa
                                                     4C       -f the ex-works price of
          chines of heading N o 8415
                                                     the       duct, and
                                                — wh-           within the above limit,
                                                     the materials classified within
                                                     the same heading as the produa
                                                     are onlv used up to a value of
                                                     5 °/o of the ex-works price of
                                                     the product, and
                                                — where the value of all the non-
                                                     originating materials used does
                                                     not exceed the value of the
                                                     originating materials used
ex 8419   Machines for the wood, paper pulp      Manufacture:                            Manufacture in which the value of
          and paper board industnes                                                      all the materials used does not ex-
                                                 — in which the value of all the
                                                                                         ceed 3C -/: of the ex-works price of
                                                      matenals used docs not exceed
                                                                                         the product
                                                      40 -/: of the ex-works price of
                                                      the product, and
                                                 — where, within the above limit,
                                                      the materials classified within
                                                      the same heading as the produa
                                                      arc only used up to a value of
                                                      25 °/c of the ex-works price of
                                                      the produa
    842:   Calendering or other rolling ma-      Manufacture:                            Manufaaure in which the value of
           chines, other than for metals or                                              all the matenals used does not ex-
                                                 — in which the value of all the
           glass, and cylinders therefor                                                 ceed 30 °/c of the ex-works price of
                                                      materials used does not exceed
                                                                                         the product
                                                      40 °/c of the ex-works price of
                                                      the product, and
                                                 — where, within the above limit,
                                                      the materials classified within
                                                      the same heading as the produa
                                                      are only used up to a value of
                                                       25 °/e of the ex-works price of
                                                      the produa
    8423   w'eighing machinery (excluding        Manufacture:                             Manufaaure in which the value of
           balances of a sensitivity of 5 eg or                                           all the materials used does not ex-
                                                 — in which the value of all the
           better), including weight-operated                                             ceed 25 °/c of the ex-works pnee of
                                                       materials used does not exceed
           counting or checking machines;                                                 the product
                                                       40 V: of the ex-works price of
           weighing machine weights of all
                                                       the produa, and
           kinds
                                                 — where, within the above limit,
                                                       the materials classified within
                                                       the same heading as the product
                                                       are onlv used up to a value of
                                                       5 °/: of the ex-works price of
                                                       the product
                                                                                                                       1 ?9
                                                                                                                       J . «-* rW
 ---pagebreak---        (0                  (2)                                      (»                                     (*)
   8425   Lifting, handling, loading or un-     Manufaaure:                              Manufaaure in which the value of
   to     loading machinery                                                              all the materials used does not ex-
                                                — in which the value of all the
   8428                                                                                  ceed 30 °/b of the ex-works price of
                                                     materials used does not exceed
                                                                                         the produa
                                                     40 % of the ex-works price of
                                                     the product, and
                                                — where, within the above limit,
                                                     the materials classified within
                                                     heading N o 8431 are only used
                                                     up to a value of 5 Vo of the ex-
                                                     works price of the produa
   8429   Self-propelled bulldozers, angle-
          dozers, graders, levellers, scrapers,
          mechanical shovels, excavators,
          shoval loaders, temping machines
          and road rollers:
          — Road rollers                        Manufaaure in which the value of
                                                all the materials used does not ex-
                                                ceed 40 °/o of the ex-works pnee of
                                                the produa
               Other                            Manufaaure :                              Manufaaure in which the value of
                                                                                          all the materials used does not ex-
                                                — in which the value of all the           ceed 30 °/o of the ex-works price of
                                                      materials used does not exceed
                                                                                          the produa
                                                      40 °/o of the ex-works price of
                                                      the produa, and
                                                — where, within the above limit,
                                                      the value of the materials classi-
                                                      fied within heading No 8431
                                                      are only used up to a value of
                                                      5 °/o of the ex-works price of
                                                      the produa
    843C   Other moving, grading, levelling,    Manufaaure:                               Manufaaure in which the value of
           scraping,    excavating,   temping,                                            all the materials used does not ex-
                                                — in which the value of all the
           compacting, extracting or boring                                               ceed 30 °/c of the ex-worki price of
                                                      materials used does not exceed      the product
           machinery, for earth, minerals or
                                                      40 °/c of the ex-works price of
           ores, pile-driven and pile-extraa-
           ors, snow-ploughs and snow-                the produa, and
           blowers                              — where, within the above limit,
                                                      the value of the materials classi-
                                                      fied within heading No 8431
                                                      are only used up to value of
                                                      5 % of the ex-works price of
                                                      the produa
ex 8431    Pans for road rollers                 Manufaaure in which the value of
                                                 all the materials used does not ex-
                                                ceed 40 °/o of the ex-works price of
                                                 the produa
    8439   Machinery for making pulp of          Manufaaure:                               Manufaaure in which the vaJue of
           fibrous cellulosic material or for                                              all the materials used does not ex-
           making or finishing paper or paper-  — in which the value of all the
                                                                                           ceed 30 °/o of the ex-works price of
           board                                       materials used does not exceed
                                                                                           the produa
                                                       40 °/o of the ex-works price of
                                                       the produa, and
                                                — where, within the above limit,'
                                                      the materials classified within
                                                      the same heading as the product
                                                       are only used up to a value of
                                                      25 °/e of the ex-works price of
                                                      the produa
                                                                                                                        133
 ---pagebreak---         (1)                   (2)                                    (3;                                  (4)
   8441     Other machinery for making up          Manufaaure:                           Manufaaure in which the value of
            paper pulp, paper or paperboard,                                             all the materials used does not ex-
            including cutting machines of all      — in which the value of all the       ceed 30 Vo of the ex-works price of
            kinds                                      materials used does not exceed    the produa
                                                       40 % of the ex-works price of
                                                       the product, and
                                                   — where, within the above limit,
                                                       the materials classified within
                                                       the same heading as the produa
                                                       are only used up to a value of
                                                       25 Vo of the ex-works price of
                                                       the produa
   8444      Machines of these headings for use    Manufaaure in which the value of
   to       in the textile industry                all the materials used does not ex-
   8447                                            ceed 40 Vo of the ex-works price of
                                                   the produa
ex 8448      Auxiliary machinery for use with      Manufaaure in which the value of
             machines for heading Nos 8444         all the materials used does not ex-
             and 84*5                              ceed 40 °/o of the ex-works price of
                                                   the product
    8452     Sewing machines, other than book
             sewing machines of heading No
             8440; furniture, bases and covers
             specially desig ;d for sewing ma-
             chines; sewing machine needles.
                  Sewing machines (lock stitch      Manufaaure:
                 only» with heads of a weight
                                                   — in which the value of all the
                  not exceeding 16 kg without
                                                        materials used does not exceed
                  motor or 17 kg with motor
                                                        40 % of the ex-works price of
                                                        the product.
                                                    — w-here the value of all of the
                                                        non-originating materials used
                                                        in assembling the head (without
                                                        motor) does not exceed the
                                                        value of the originating ma-
                                                        terials used, and
                                                    — the thread tension, crochet and
                                                        zigzag mechanisms used are al-
                                                        ready originating
                  Other                             Manufacture in which the value of
                                                    all the materials used does not ex-
                                                    ceed 40 °/: of the ex-works price of
                                                    the product
    8456      Machine-tools and machines and        Manufaaure in which the value of
    to        their parts and accessories of head-  all the materials used does not ex-
     8466     ing Nos 8456 to 8466                  ceed 40 % of the ex-works price of
                                                    the product
    8469      Office machines (for example,         Manufaaure in which the value of
    to        typewriters, calculating machines,    all the materials used does not ex-
    8472      automatic     data-processing    ma-  ceed 40 % of the ex-works price of
              chines,     duplicating    machines,  the product
              stapling machines)
                                                                                                                      134
 ---pagebreak---        (1)                       (2)                                     (3)                                 («)
   8480         Moulding boxes for metal foundry;      Manufaaure in which the value of
                mould bases; moulding patterns;        all the materials used does not ex-
                moulds for metal (other than ingot     ceed 50 Vo of the ex-works price of
                moulds), metal carbides, glass,        the product
                mineral materials, rubber or plastics
   8482         Ball or roller bearings                Manufaaure:                          Manufacture in which the value of
                                                                                            all the materials used does not ex-
                                                       — in which the value of all the      ceed 25 V» of the ex-works price of
                                                           materials used does not exceed   the produa
                                                           40 Vo of the ex-works price of
                                                           the product, and
                                                       — where, within the above limit,
                                                           the materials classified within
                                                           the same heading as the produa
                                                           are only used up to a value of
                                                           5 Vo of the ex-works price of
                                                           the produa
   8484         Gaskets and similar joints of metal    Manufacture in which the value of
                sheeting combined with other ma-       all the materials used does not ex-
                terial or of two or more layers of     ceed 40 % of the ex-works pnee of
                metal; sets or assortments of gas-     the product
                kets and similar joints, dissimilar in
                composition, put up in pouches,
                envelopes or similar packings
   6485         Machinery parts, not containing        Manufaaure in which the value of
                electrical conneaors, insulators,      all the materials used does not ex-
                coils, contacts or other electrical    ceed 40 °/o of the ex-works pnee of
                features, not specified or included    the produa
                elsewhere in this chapter
ex Chapter 85   Electrical machinery and equipment     Manufaaure:                          Manufacture in which the value of
                and pans thereof; sound recorders                                           all the materials used dots not ex-
                and reproducers, television image      — in which the value of all the      ceed 30 vc of the ex-works pnee of
                and sound recorders and repro-              materials used does not exceed  the produa
                ducers and parts afid accessories of        40 Vo of the ex-works pnee of
                such articles; except for those fall-       the produa, and
                ing within the following headings
                or parts of headings for which the     — where, within the above limit,
                rules are set out below:                    the materials classified within
                                                            the same heading as the produa
                8501, 8502, ex 8518, 8519 to 8529,          are only used up to a value of
                8535 to 8537, ex 8541, 8542, 8544           5 Vo of the ex-works price of
                to 8548                                     the produa
   8501       I Electric motors and generators (ex-    Manufaaure:                          Manufaaure in which the value of
              ! eluding generating sets)                                                    all the materials used does not ex-
                                                       — in which the value of all the      ceed 30 Vo of the ex-works price of
                                                            materials used does not exceed  the produa
                                                           40 Vo of the ex-works price of
                                                           the produa, and
                                                       — where, within the above limit,
                                                           the materials classified within
                                                           heading No 8503 are only used
                                                           up to a value of 5 Vo of the ex-
                                                           works price of the product
                                                                                                                         135
 ---pagebreak---        ">                   (2j                                 (3)                                  (4)
   8502   Elearic generating sets and rotary   Manufaaure:                          Manufacture in which the value of
          converters                                                                all the materials used does not ex-
                                               — in which the value of all the      ceed 30 Vo of the ex-works price of
                                                 materials used does not exceed     the produa
                                                 40 Vo of the ex-works price of
                                                 the produa, and
                                               — where, within the above limit,
                                                 the materials classified within
                                                 heading N o 8501 or 8503,
                                                 taken together, are only used
                                                 up to a value of 5 Vo of the ex-
                                                 works price of the produa
ex 8518   Microphones and stands therefor;     Manufaaure :                          Manufaaure in which:
          loudspeakers, whether or not
          mounted in their enclosures; audio-  — in which the value of all the      — the value of all the materials used
          frequency electric amplifiers; elec-    materials used does not exceed         does not exceed 25 Vo of the ex-
          tric sound amplifier sets               40 Vo of the ex-works price of         works price of the product, and
                                                  the produa,
                                                                                     — the value of all the transistors of
                                               — where the value of all the non-         heading No 8541 used does not
                                                  originating materials used does        exceed 3 Vo of the ex-works price
                                                  not exceed the value of the            of the product
                                                  originating materials used, and
                                               — the value of all the transistors
                                                  of headine N o 8541 used does
                                                  not exceed 3 Ve of the ex-works
                                                  price of the product
    8519   Turntables irecord-decks), record-
           players. cassette-players and other
           sound reproducing apparatus, not
           incorporating a sound recording
           device
               Electric gramophones            Manufacture:                          Manufaaure in which the value of
                                                                                     all the materials used does not ex-
                                               — in which the value of all the       ceed 25 Vc of the ex-works price of
                                                   materials used does not exceed    the product
                                                   40 V: of the ex-works price of
                                                   the product,
                                               — where the value of all the non-
                                                   originating materials used does
                                                   not exceed the value of the
                                                   ongtnating materials used, and
                                               — the value of all the transistors
                                                   of heading N o 8541 used does
                                                   not exceed 3 % of the ex-works
                                                   price of the product
           — Othc                               Manufaaure :                         Manufaaure in which the value of
                                                                                     all the matenals used does not ex-
                                                — in which the value of all the      ceed 30 Vc of the ex-works price of
                                                   materials used does not exceed    the produa
                                                   40 Vc of the ex-works price of
                                                   the produa,
                                                — where the value of all the non-
                                                   originating materials used does
                                                    not exceed the value of the
                                                   originating materials used, and
                                                — the value of all the transistors
                                                    of headine No 654 i used does
                                                    not exceed 3 Vc of the ex-works
                                                    price of the product
                                                                                                                    136
 ---pagebreak---     (1)                  (2)                                   (3)                                   (4)
8520    Magnetic tape recorders and other    Manufaaure:                            Manufaaure in which the value of
        sound       recording     apparatus,                                        all the materials used does not ex-
        whether or not incorporating a           in which the value of all the      ceed 30 Vo of the ex-works price of
        sound reproducing device                 materials used does not exceed     the produa
                                                 40 Vo of the ex-works price of
                                                 the produa,
                                                 where the value of all the non-
                                                 originating materials used does
                                                 not exceed the value of the
                                                 originating materials used, and,
                                                 the value of all the transistors
                                                 of headine No 8541 used does
                                                 not exceed 3 % of the ex-works
                                                 price of the produa
8521    Video recording      or  reproducing Manufaaure :                            Manufaaure in which the value of
         apparatus                                                                   all the materials used does not ex-
                                             — in which the value of all the         ceed 30 % of the ex-works price of
                                                  materials used does not exceed     the produa
                                                  40 Vo of the ex-works price of
                                                  the produa,
                                             — where the value of all the non-
                                                  originating materials used does
                                                  not exceed the value of the
                                                  originating materials used, and
                                             — the value of all the transistors
                                                  of heading No 854 1 used does
                                                  not exceed 3 Vo of the ex-works
                                                  price of the produa
 8521    Pans and accessories of apparatus   Manufacture in which the value of
         of heading Nos 8519 to 8521         all the materials used does not ex-
                                             ceed 40 Vc of the ex-works price of
                                             the produa
 8523    Prepared unrecorded media for       Manufaaure in which the value of
         sound recording or similar recor-   all the materials used does not ex-
         ding of other phenomena, other      ceed 40 Vo of the ex-works price of
         than products of Chapter 37         the product
 8524     Records, tapes and other recorded
          media for sound or other similarly
          recorded phenomena, including
          matrices and masters for the pro-
          duaion of records, but excluding
          products of Chapter 37:
          — Matrices and masters for the      Manufaaure in which the value of
              production of records           all the materials used does not ex-
                                              ceed 40 Vo of the ex-works price of
                                              the product
          — Other                             Manufaaure:                             Manufaaure in which the value of
                                                                                      all the materials used does not ex-
                                              — in which the value of all the         ceed 30 Vc of the ex-works price of
                                                   materials used does not exceed     the produa
                                                   40 Vo of the ex-works price of
                                                   the produa, and
                                              — where, within the above limit,
                                                   the materials classified within
                                                   heading No 8523 are only used
                                                   up to a value of 5 Vo of the ex-
                                                   works price of the.product
                                                                                                                  137
 ---pagebreak---     (I)                   (2)                                    (3)
8525    Transmission apparatus for radio-       Manufaaure:                         Manufaaure in which:
        telephony, radio-telegraphy, radio-
        broadcasting or television, whether       in which- the value of all the    — the value of all the materials used
        or not incorporating reception            matenals used does not exceed         does not exceed 25 Vo of the ex-
        apparatus or sound recording or           40 % of the ex-works price of         works price of the p r o d u a , and
        reproducing apparatus; television         the product,
                                                                                    — the value of ail the transistors of
        cameras
                                                  where the value of all the non-       heading N o 8541 used does not
                                                  originating materials used does       exceed 3 Vo of the ex-works price
                                                  not exceed the value of the           of the p r o d u a
                                                  originating materials used, and
                                                  the value of all the transistors
                                                  of headinr N o 8541 used does
                                                  not exceed 3 Vo of the ex-works
                                                  price of the product
8526    Radar apparatus, radio navigational     Manufaaure:                         Manufaaure in which:
        aid apparatus and radio remote
         control apparatus                      — in which the value of all the     — the value of all the materials used
                                                   matenals used does not exceed        does not exceed 25 Vo of the ex-
                                                   40 Vo of the ex-works price of       works price of the p r o d u a , and
                                                   the produa,
                                                                                    — the value of all the transistors of
                                                — where the value of all the non-       heading N o 8541 used does not
                                                   originaung materials used does       exceed 3 Vc of the ex-works price
                                                   not exceed the value of the          of the product
                                                   originating materials used, and
                                                — the value of all the transistors
                                                   of heading N o 8541 used does
                                                   not exceed 3 Vo of the ex-works
                                                   price of the product
852'     Kr('-p:uin apparatus for radio         Manufacture                         Manufacture in which
         u-iephon;..   radio-telegraphy      or
         radio-b-rvadcasung. whether or no:     — in which the value of all the     — the value of all the matenals used
         combined, in the same housing.             materials used does not exceed       does not exceed 25 Vc of the ex-
         wnh sound recording or repro-              4 : V; of the ex-work? price of      works price of the product, and
         ducng apparatus or a clock                 the product,
                                                                                    — the value of ali the transistors of
                                                — where the value of al! the non-        heading No 8541 used does not
                                                   onginating materials used does        exceed 3 V: of the ex-works pnee
                                                    not exceed the value of the          of the product
                                                    originating materials used, and
                                                — the value of all the transistors
                                                    of heading No 854 1 used does
                                                    not exceed 3 Vc of the ex-works
                                                    price of the product
8528     Television    receivers     (including
         video     monitors      and      video
         projeaors),     whether      or    not
         combined, in the same housing,
         with radio-broadcast receivers or
         sound or video recording or repro-
         ducing apparatus:
         — Video recording or reproducing       Manufacture:                         Manufaaure in which the value of
             apparatus incorporating a video                                        all the matenals used does not
             tuner                              — in which the value of all the     exceed 30 Vc of the ex-works price
                                                    materials used does not exceed   of the product
                                                    40 Vo of the ex-works price of
                                                    the product,
                                                                                                                        138
 ---pagebreak---     (1)                   (2)                                     (3)                                    («)
8528                                                where the value of all the non-
(cont'd)                                            originating materials used does
                                                    not exceed the value of the
                                                    onginating materials used, and
                                                    the value of all the transistors
                                                    of headint No 8541 used does
                                                    not exceed 3 Vo of the ex-works
                                                    price of the p r o d u a
         —- Other                               Manufaaure :                          Manufaaure in which:
                                                — in which the value of all the       — the value of all the materials used
                                                    materials used does not exceed       does not exceed 25 Vo of the ex-
                                                    40 Vo of the ex-works price of       works price of the product, and
                                                    the produa,
                                                                                      — the value of all the transistors of
                                                — where the value of all the non-        heading No 8541 used does not
                                                    originating materials used does      exceed 3 Vo of the ex-works price
                                                    not exceed the value of the          of the p r o d u a
                                                    originating materials used, and
                                                — the value of all the transistors
                                                    of heading No 8541 used does
                                                     not exceed 3 Vo of the ex-works
                                                    price of the product
8529     Pans suitable for use solely or prin-
         cipallv with the apparatus of head-
         ing Nos 8525 to 8528
             Suitable for use solely or princi- Manufaaure in which the value of
             pally with video recording or      all the materials used does not ex-
             reproducing apparatus              ceed 40 Vo of the ex-works price of
                                                the p r o d u a
         — Other                                Manufaaure:                           Manufaaure in which:
                                                — in which the value of all the       — the value of all the materials used
                                                     materials used does not exceed       does not exceed 25 Vo of the ex-
                                                     40 Vo of the ex-works price of       works price of the p r o d u a , and
                                                     the product,
                                                                                      — the value of all the transistors of
                                                — where the value of all the non-         heading N o 8541 used does not
                                                     originating materials used does      exceed 3 Vo of the ex-works price
                                                     not exceed the value of the          of the p r o d u a
                                                     originating materials used, and
                                                — the value of all the transistors
                                                     of heading No 8541 used does
                                                     not exceed 3 Vo of the ex-works
                                                     price of the p r o d u a
8535     Elearical apparatus for switching       Manufaaure:                          Manufaaure in which the value of
and      or proteaing elearical circuits, or                                          all the materials used does not ex-
 8536     for making connections to or in       — in which the value of all the       ceed 30 Vo of the ex-works price of
         eleancal circuits                           materials used does not exceed   the p r o d u a
                                                     40 Vo of the ex-works price of
                                                     the produa, and
                                                — where, within the above limit,
                                                     the matenals classified within
                                                     heading No 8538 are only used
                                                     up to a value of 5 Vo of the ex-
                                                     works price of the product
                                                                                                                           139
 ---pagebreak---        (1)                     (2)                                    (3)                                  (4)
   8537     Boards, panels (including numerical     Manufaaure:                           Manufaaure in which the value of
            control panels), consoles, desks,                                             all the materials used does not ex-
            cabinets and other bases, equipped      — in which the value of all the       ceed 30 % of the ex-works price of
            with two or more apparatus of               materials used does not exceed    the produa
            heading N o 8535 or 8536, for elec-        40 Vo of the ex-works price of
             tric control or the distribution of        the product, and
            electricity, including those incor-
                                                    — where, within the above limit,
             porating instruments or apparatus
                                                        the materials classified within
             of Chapter 90, other than switching
                                                        heading N o 8538 are only used
             apparatus of heading N o 8517
                                                        up to a value of 5 Vo of the ex-
                                                        works price of the produa
ex 8541      Diodes, transistors and similar        Manufaaure:                           Manufaaure in which the value of
             semi-conductor       devices,  except                                        all the matenals used does not ex-
             wafers not y a cut into chips          — in which the value of all the       ceed 25 Vo of the ex-works price of
                                                        materials used does not exceed    the produa
                                                        40 Vo of the ex-works price of
                                                        the product, and
                                                    — where, within the above limit,
                                                         the materials classified within
                                                        the same heading as the pro-
                                                        ducts are only used up to a
                                                         value of 5 Vo of the ex-works
                                                         price of the product
   8542       Electronic integrated circuits and    Manufaaure:                            Manufaaure in which the value of
              microassemblies                                                              all the materials used does not ex-
                                                    — in which the value of all the        ceed 25 Vo of the ex-works pnee of
                                                         materials used does not exceed    the product
                                                         40 Vo of the ex-works pnee of
                                                         the produa, and
                                                    — where, within the above limit,
                                                         the materials classified within
                                                         heading No 8541 or 8542,
                                                         taken together, are only used
                                                         up to a value of 5 Vc of the ex-
                                                         works price of the produa
    8544   j Insulated (iecluding enamelled or      Manufacture in which the value of
           j anodized) wire, cable (including       all the materials used does not ex-
           I ro-axial cable) and other insulated    ceed 4C Vc of the ex-works price of
              electric conductors, whether or not   the product
              fitted with conneaors; optical fibre
              cables, made up of individually
              sheathed fibres, whether or not as-
              sembled with electric conduaors or
              fitted with connectors
    8545      Carbon elearodes, carbon brushes,     Manufaaure in which the value of
              lamp carbons, battery carbons and     all the materials used does not ex-
              other articles of graphite or other   ceed 40 Vo of the ex-works price of
              carbon, with or without metal, of a   the product
              kind used for elearical purposes
   8546       Electrical insulators of anv material Manufacture in which the value of
                                                    a!) the materials used does not ex-
                                                    ceed 40 Vc of the ex-works price of
                                                    the produa
                                                                                                                        140
 ---pagebreak---        (1)                        (2)                                            (3)                              (4)
   8547       Insulating fittings for electrical ma-      Manufaaure in which the value of
              chines, appliances or equipment,            all the materials used does not ex-
              being fittings wholly of insulating         ceed 40 Vo of the ex-works price of
              material apart from any minor               the p r o d u a
              components of metal (for example,
              threaded socket) incorporated dur-
              ing moulding solely for purposes of
              assembly outer than insulators of
              heading N o 8546; electrical con-
              duit tubing and joints therefor, of
              base metal lined with insulating
              material
   8548       Electrical parts of machinery or ap-        Manufacture in which the value of
              paratus, not specified or included          all the materials used does not ex-
              elsewhere in this chapter                   ceed 40 Vo of the ex-works price of
                                                          the product
   8601        Railway or tramway locomotives,             Manufaaure in which the value of
   to          rolling-stock and parts thereof             all the materials used does not ex-
   8607                                                    ceed 4 0 % of the ex-works price of
                                                           the p r o d u a
   8608        Railway or tramway track fixtures           Manufaaure:                           Manufaaure in which the value of
               and fittings; mechanical (including                                               all the materials used does not ex-
               electromechanical)             signalling,  — in which the value of all the       ceed 30 % of the ex-works pnee of
               safety or traffic control equipment              materials used does not exceed   the p r o d u a
               for railways, tramways, roads, in-               40 Vo of the ex-works price of
               land waterways, parking facilities,              the p r o d u a , and
               por. installations or airfields; pans
               of the foregoing                            — where, within the above limit,
                                                                the materials classified within
                                                                the same heading as the product
                                                                are onlv used up to a value of
                                                                5 Vo of the ex-works price of
                                                                the product
   8609        Containers (including containers             Manufaaure in which the value of
               for the transport of fluids) specially       all the materials used does not ex-
               designed and equipped for carnage            ceed 40 Vo of the ex-works price of
               by one or more modes of transpon             the product
ex Chapter 8'   Vehicles other than railway or              Manufaaure in which the value of
                tramway rolling-stock and parts             all the materials used does not ex-
                and accessories thereof; except for         ceed 40 Vb of the ex-works price of
                those falling within the following          the p r o d u a
                headings or parts of headings for
                which the rules are set out below:
                8709 to 8711, ex 8712, 8715 and
                8716
    8709        V o r k s trucks, self-propelled, not       Manufaaure :                          Manufacture in which the value of
                fitted with lifting or handling                                                   all the matenals used does not ex-
                equipment, of the type used in fac-         — in which the value of ail the       ceed 30 Vo of the ex-works price of
                tories, warehouses, dock areas or                materials used does not exceed   the p r o d u a
                airports for short distance transpon             40 Vo of the ex-works price of
                of goods; t r a a o r s of the type used         the p r o d u a , and
                on railway station platforms, pans
                of the foregoing vehicles                   — where, within the above limit,
                                                                 the materials classified within
                                                                 the same heading as the product
                                                                 are only used up to a value of
                                                                 5 Vo of the ex-works pnee of
                                                                 the p r o d u a
                                                                                                                               141
 ---pagebreak---        (Il                   (2)                                (3)                                   (4)
   8710    Tanks and other armoured fighting   Manufaaure :                          Manufacture in which the value of
           vehicles, motorized, whether or not                                       all the materials used does not ex-
           fitted with weapons, and parts of      in which the value of all the      ceed 30 Vc of the ex-works price of
           such vehicles                          materials used does not exceed     the produa
                                                  40 Vo of the ex-works price of
                                                  the product, and
                                                  where, within the above limit,
                                                  the materials classified within
                                                  the same heading as the produa
                                                  are only used up to a value of
                                                  5 % of the ex-works price of
                                                  the produa
   8711     Motorcycles (including mopeds)
           and cycles fitted with an auxiliary
           motor, with or without side-cars;
           side-cars:
           — With reciprocating internal
                combustion piston engine of a
                cylinder capacity:
                — Not exceeding 50 cc          Manufaaure:                            Manufaaure in which the value of
                                                                                      all the materials used does not ex-
                                               — in which the value of all the        ceed 20 Vo of the ex-works pnee of
                                                   materials used does not exceed     the produa
                                                   40 Vo of the ex-works price of
                                                   the product, and
                                               — where the value of all the non-
                                                   originating materials used does
                                                   not exceed the value of the ori-
                                                   ginating materials used
                    Exceeding 50 cc            Manufacture:                           Manufaaure in which the value of
                                                                                      all the materials used does not ex-
                                               — in which the value of all the        ceed 25 Vc of the ex-works price of
                                                   materials used does not exceed     the produa
                                                   40 Vc of the ex-works price of
                                                   the produa, and
                                               — where the value of all the non-
                                                   originating materials used does
                                                   not exceed the value of the on-
                                                   ginating materials used
                Other                          Manufacture:                            Manufacture in which the value of
                                                                                       all the matenals used does not ex-
                                               — in which the value of all the         ceed 30 Vo of the ex-works pnee of
                                                   materials used does not exceed     the produa
                                                   40 Vb of the ex-works price of
                                                   the product, and
                                               — where the value of all the non-
                                                   onginatine materials used does
                                                    not exceed the value of the ori-
                                                   ginating matenals used
ex 8712     Bicycles without ball bearings     Manufaaure from materials not           Manufaaure in which the value of
                                               classified within heading No 8714       all the materials used does not ex-
                                                                                       ceed 30 Vo of the ex-works price of
                                                                                       the produa
                                                                                                                   142
 ---pagebreak---     (1)                      (2)                                   (3)                                 (4)
8715       Baby carriages and paru thereof        Manufaaure:                         Manufaaure in which the value of
                                                                                      all the materials used does not ex-
                                                  — in which the value of all the     ceed 30 Vo of the ex-works price of
                                                      materials used does not exceed  the produa
                                                      40 Vo of the ex-works price of
                                                      the product, and
                                                  — where, within the above limit,
                                                      the materials classified within
                                                      the same heading as the produa
                                                      are only used up to a value of
                                                      5 % of the ex-works price of
                                                      the produa
8716       Trailers and semi-trailers; other ve-  Manufaaure:                         Manufaaure in which the value of
           hicles, not mechanically propelled;                                        all the materials used does not ex-
           pans thereof                           — in which the value of all the     ceed 30 Vo of the ex-works price of
                                                      materials used does not exceed  the product
                                                      40 Vo of the ex-works price of
                                                      the product, and
                                                  — where, within the above limit,
                                                      the materials classified within
                                                      the same heading as the produa
                                                      are only used up to a value of
                                                      5 Vo of the ex-works price of
                                                      the produa
8801       Balloons and dirigibles; aircraft;     Manufaaure in which all the mate-   Manufacture in which the value of
and        spacecraft and spacecraft launch       rials used are classified within a  all the materials used does not ex-
8802       vehicles                               heading other than that of the pro- ceed 40 Vc of the ex-works price of
                                                  dua                                 the produa
8803       Pans of goods of heading No 8801       Manufaaure in which the value of     Manufaaure in which the value of
           or 88:2                                all the materials of heading No      all the materials used does not ex-
                                                  8803 used does not exceed 5 Vo of    ceed 40 Vo of the ex-works pnee of
                                                  the ex-works price of the produa    the produa
8804       Parachutes (including dirigible
           parachutes) and rotochutes, parts
           thereof and accessories thereto:
           — Rotochutes                           Manufaaure from materials of any     Manufaaure in which the value of
                                                  heading including other materials    all the materials used does not ex-
                                                  of heading No 8804                   ceed 40 Vo of the ex-works price of
                                                                                       the produa
           — Other                                Manufaaure in which the value of     Manufacture in which the value of
                                                  all the materials of heading No      all the materials used does not ex-
                                                  8804 used does not exceed 5 Vo of   ceed 40 Vo of the ex-works price of
                                                  the ex-works price of the produa     the produa
8805       Aircraft launching gear; deck-arre-    Manufaaure in which the value of     Manufaaure in which the value of
           stor or similar gear; ground flying    all the materials of heading No      all the materials used does not ex-
           trainers; parts of the foregoing arti- 8805 used does not exceed 5 Vo of    ceed 30 Vo of the ex-works price of
           cles                                   the ex-works price of the produa     the produa
Chapter 89 Ships, boats and floating struaures    Manufaaure in which all the mate-    Manufaaure in which the value of
                                                  rials used are classified within a   all the materials used does not ex-
                                                  heading other than that of the pro-  ceed 40 Vo of the ex-works price of
                                                  dua However, hulls of heading        the produa
                                                  No 8906 may not be used
                                                                                                                   14i3
 ---pagebreak---             (1)                         (2)                                   (3)                                  <*)
     ex Chapter 90   Optical, photographie, cinemato-       Manufacture :                         Manufaaure in which the value of
                     graphic, measuring, checking, pre-                                           all the materials used does not ex-
                     cision, medical or surgical instru-    — in which the value of all the       ceed 30 % of the ex-works price of
                     ments and apparatus; pans and ac-          materials used does not exceed    the product
                     cessories thereof; except for those        40 Vo of the ex-works price of
                     falling within the following hea-          the product, and
                     dings or parts of headings for
                     which the rules are set out below:     — where, within the above limit,
                                                                the materials classified within
                     9001, 9002, 9004, ex 9005, ex              the same heading as the produa
                     9006, 9007, 9011, ex 9014, 9015 to         are only used up to a value of
                     9020 and 9024 to 9033                      5 Vo of the ex-works price of
                                                                the product
        9001         Optical fibres and optical fibre       Manufaaure in which the value of
                     bundles; optical fibre cables other    all the materials used does not ex-
                     than those of heading N o 8544;        ceed 40 Vo of the ex-works price of
                     sheets and plates of polarizing ma-    the product
                     terial; lenses (including contact len-
                     ses), prisms, mirrors and other op-
                     tica! elements, of any material, un-
                     mounted, other than such elements
                     of glasrs not optically worked
        9002         Lenses, prisms, mirrors and other      Manufacture in which the value of
                     optical elements, of anv material,     all the materials used does not ex-
                     mounted, beir.,. parts of or fittings  ceed 4C Vo of the ex-works price of
                     for instruments or apparatus, other    the produa
                     than such elements of glass not op-
                     ticallv worked
        9o:4         Spectacles, goggles and the ike.        Manufacture in which the value of
                     corrective, protective or other        all the materials used does not ex-
                                                            ceed 4C Vc of the ex-works price of
                                                            the product
     ex 9005       ! Binoculars, monoculars, other opti-     Manufaaure:                           Manufaaure in which the value of
                   , ca! telescopes, and mountings the-                                            all the matenals used does not ex-
                      refor, except for astronomical re-    — in which the value of all the        ceed 30 Vo of the ex-works price of
                      fracting telescopes and mountings          materials used does not exceed    the product
                   i therefor                                    40 Vc of the ex-works price of
                                                                 the produa,
                                                            — where, within the above limit,
                                                                 the materials classified within
                                                                 the same heading as the product
                                                                 are only used up to a value of
                                                                 5 Vo of the ex-works price of
                                                                 the produa, and
                                                            — where the value of all the non-
                                                                 originating materials used does
                                                                 not exceed the value of the ori-
                                                                 ginating materials used
     ex 9 X o         Photographic (other than cinema-       Manufacture:                          Manufacture in which the value of
                      tographic i cameras, photographic                                            all the materials used does no: ex-
                      flashlight apparatus and flashbulbs    — in which the value of all the       ceed 3C V: of the ex-works price of
                      other than electricallv       ignited      materials used does not exceed    the product
                      flashbulbs                                 40 V: of the ex-works price of
                                                                 the product.
(10)
                                                                                                                               144
 ---pagebreak---        (1)                  (2)                                   (3)                                  (<ï
ex 9006                                             where, within the above limit,
   (cont'd)                                         the materials classified within
                                                    the same heading as the product
                                                    are only used up to a value of
                                                    5 Vo of the ex-works price of
                                                    the product, and
                                                    where the value of all the non-
                                                    originaung materials used does
                                                    not exceed the value of the on-
                                                    ginaung materials used
   9007     Cinematographic cameras and pro-     Manufaaure :                          Manufaaure in which the value of
            jeaors, whether or not incorpora-                                          all the materials used does not ex-
                                                 — in which the value of all the       ceed 30 Vo of the ex-works price of
            ting sound recording or reprodu-
                                                     materials used does not exceed
            cing apparatus                                                             the product
                                                     40 Vo of the ex-works price of
                                                     the produa,
                                                 — where, within" the above limit,
                                                     the materials classified within
                                                     the same heading as the produa
                                                     are only used up to a value of
                                                     5 Vo of the ex-works price of
                                                     the produa, and
                                                 — where the value of all the non-
                                                     onginaung materials used does
                                                     not exceed the value of the ori-
                                                     ginating materials used
    9011     Compound optical microscopes, in-   Manufacture:                           Manufaaure in which the value of
             cluding those for photomicrogra-    — in which the value of ail the        all the matenals used does not ex-
             phy, cinephotomicrography or mi-                                           ceed 30 Vo of the ex-works price of
                                                      materials used does not exceed
             troprojection                                                              the product
                                                      40 Vo of the ex-works pnee of
                                                      the produa,
                                                 — where, within the above limit,
                                                      the materials classified within
                                                      the same heading as the produa
                                                      are only used up to a value of.
                                                      5 Vc of the ex-works price of
                                                      the produa, and
                                                 — where the value of all the non-
                                                      originating materials used does
                                                      not exceed the value of the ori-
                                                      ginating materials used
 ex 9014     Other navigational instruments and  Manufaaure in which the value of
             appliances                          all the materials used does not ex-
                                                 ceed 40 Vo of the ex-works price of
                                                 the produa
    9015     Surveying (including photogram-     Manufaaure in which the value of
             metncal surveying), hydrographie,   all the materials used does not ex-
             océanographie, hydroiogical, me-    ceed 40 Vo of the ex-works price of
             teorological or geophysical instru- the produa
             ments and appliances, excluding
             compasses; rangefinders
                                                                                                                    145
 ---pagebreak---      (1»                       (2)                                    (3)                                  W
9016       Balances of a sensitivity of 5 eg or     Manufaaure in which the value of
           better, with or without weights          all the materials used does not ex-
                                                    ceed 40 Vo of the ex-works price of
                                                    the product
9017       Drawing, marking-out or mathe-           Manufaaure in which the value of
           matical calculating instruments (for     all the materials used does not ex-
           example, drafting machines, panto-       ceed 40 Vo of the ex-works price of
           graphs, protractors, drawing sets,       the produa
           slide rules, disc calculators); instru-
           ments for measuring length, for use
           in the hand (for example, measu-
           ring rods and tapes, micrometers,
           callipers, not specified or included
           elsewhere in this chapter
9018       Instruments and appliances used in
           medical, surgical, dental or veteri-
           nary sciences, including scintigra-
           phic apparatus, other electro-medi-
           cal apparatus and sight-testing in-
           struments
           — Dentists' chairs incorporating          Manufaaure from materials of any      Manufacture in which the value of
                dentai appliances or dentists'       heading, including other materials    all the materials used does not ex-
                spittoons                            of heading No 901?                    ceed 40 Vc of the ex-works pnee of
                                                                                           the product
                Other                                Manufaaure:                         I Manufacture in which the value of
                                                                                         : al! the materials used does not ex-
                                                     — in which the value of all the
                                                                                         ! ceed 25 Vc of the ex-works price of
                                                         materials used does not exceed
                                                                                         ; the product
                                                         4: V: of the ex-works price of
                                                         the product, and                i
                                                     — where, within the above limn,
                                                         the materials classified within
                                                         the same heading as the product
                                                         are onh used up to a value of
                                                         5 •/; of the ex-works price of
                                                         the product
9:i(     1
            Mechano-iherapy appliances: mas-         Manufacture:                          Manufacture in which the value of
         !
            sage apparatus, psychological apti-                                            all the materials used does not ex-
                                                     — in which the value of all the
         , lude-tesung,       apparatus.     ozone                                         ceed 25 Vc of the ex-works price of
            iherapv. oxygen therapy, aerosol             materials used does not exceed    the produa
            therap;.. artificial respiration or ot-      4C V: of the ex-works price of
            her therapeutic respiration appara-          the produa, and
         i tus                                       — where, within the above limit,
                                                         the materials classified within
                                                         the same heading as the product
                                                         are only used up to a value of
                                                         5 Vc of the ex-works price of
                                                         the produa
 902:       Other breathing appliances and gas       Manufaaure:                            Manufaaure in which the value of
            masks, excluding proteaive masks                                                all the materials used does not ex-
            having neither mechanical parts nor      — in which the value of all the        ceed 25 Vc of the ex-works price of
            replaceable filters                           materials used does not exceed    the product
                                                          40 Vc of the cx-*orks price of
                                                         the product, and
                                                     — where, within the above limit,
                                                         the materials classified within
                                                         the same heading as the product
                                                         are onlv used up to a value of
                                                          5 V: of the ex-works price of
                                                         the product
                                                                                                                        146
 ---pagebreak---    (1)                    (2)                                    (3)                                 (4)
9024   Machines and appliances for testing     Manufacture in which the value of
       ihr hardness, sirrngth, compressibi-    all the materials used doe» not ex-
       lity, elasticity or other mechanical    ceed 40 Vo of the ex-works price of
       properties of materials (for exam       the product
       pie, metals, wood, textiles, paper,
       plastics)
9025   Hydrometers and similar floating        Manufacture in which the value of
       instruments, thermometers, pyro-        all the materials used does not ex-
       meters, barometers, hygrometers         ceed 40 Vo of the ex-works price of
       and psychrometers, recording or         the product
       not, and any combination of these
       instruments
9026    Instruments and apparatus for mea-      Manufacture in which the value of
        suring or checking the flow, level,     all the materials used does not ex-
        pressure or other variables of li-     ceed 40 Vo of the ex-works price of
        quids or gases (for example, flow       the product
        meters, level gauges, manometers,
        heat meters), excluding instruments
        and apparatus of heading N o 9014.
        9015, 9C28 or 9032
 9027   Instruments and apparatus for phy-      Manufaaure in which the value of
        sical or chemical analysis (for ex-     all the materials used does not ex-
        ample, polanmeters, refraaome-          ceed 40 Vs of the ex-works price of
        ters, spectrometers, gas or smoke       the product
        analysis apparatus); instruments
        and apparatus for measuring or
        checking viscosity, porosity, expan-
        sion, surface tension or the like; in-
        struments and apparatus for measu-
        ring or checking quantities of heat.
         sound or light dnclud:ng exposure
         meters), microtomes
 9028    Gas. liquid or electricitv suppK or
         production meters, incuding cali-
         brating meters therefor
         — Pans and accessones                   Manufaaure in which the value of
                                                 all the materials used does not ex-
                                                 ceed 40 Vo of the ex-works price of
                                                 the product
             Other                               Manufacture:                          Manufacture in which the value of
                                                 — in which the value of all the       all the matenals used does not ex-
                                                                                       ceed 30 Vc of the ex-works price of
                                                     materials used does not exceed
                                                                                       the product
                                                     40 Vo of the ex-works pnee of
                                                     the product, and
                                                 — where the value of all the non-
                                                     originating materials used does
                                                      not exceed the value of the ori-
                                                     ginating materials used
 9029     Revolution counters, production        Manufacture in which the value of
         counters, taximeters, mileometers,      all the materials used does not ex-
         pedometers and the like; speed in-      ceed 40 Vc of the ex-works price of
         dicators and tachometers, other         the product
         than those of heading N o 9014 or
         Q
           015. stroboscopes
                                                                                                                   147
 ---pagebreak---        0»                         (2)                                    (3J                                     (4)
   9030        Oscilloscopes, spectrum analysers      Manufaaure in which the value of
               and other instruments and appara-      all the materials used does not ex-
               tus for measuring or checking elec-    ceed 40 Vo of the ex-works price of
               trical quantities, excluding meters    the produa
               of heading N o 9028; instruments
               and apparatus for measuring or de-
               tecting alpha, beta, gamma, X-ray,
               cosmic or other ionizing radiations
   9031        Measuring or checking instru-          Manufaaure in which the value of
                ments, appliances and machines,       all the materials used does not ex-
                not specified or included elsewhere   ceed 40 Vo of the ex-works price of
                in this chapter; profile projeaors    the produa
   9032         Automatic regulating or controlling    Manufaaure in which the value of
                instruments and apparatus             all the materials used does not ex-
                                                      ceed 40 Vo of the ex-works price of
                                                      the product
   9033         Pans and accessories (not specified    Manufaaure in which the value of
                or included elsewhere in this chap-    all the materials used does not ex-
                ter) for machines, appliances, in-     ceed 40 Vc of the ex-works pnee of
                 struments or apparatus of Chapter     the product
                 90
ex Chapter 91    Clocks and watches and pans the-      Manufaaure in which the value of
                 reof, except for those falling under  all the materials used does not ex-
                 the following headings for which      ceed 40 Vc of the ex-works price of
                 the rules are set out below:          the product
                 91Z5. 9109 to 9113
    91C5      ] Other clocks                           Manufaaure.                               Manufaaure in which the value of
                                                                                                 all the materials used does not ex-
                                                       — in which the value of all the           ceed 3C Vc of the ex-works price of
                                                            materials used does not exceed j the product
                                                            40 V; of the ex-works price of l
                                                            the produa, and                    |
                                                       — where the value of all the non-
                                                            originating matenals used does
                                                            not exceed the value of the ori-
                                                            ginating materials used
    91 0^         Clock mowments. complet»- and         Manufacture                              Manufacture in which the value of
                  assembled                                                                      all the materials used docs not ex-
                                                        — in which the value of ail. the
                                                                                                 ceed 30 Vc of the ex-works price of
                                                            materials used does not exceed
                                                                                                 the product
                                                            40 Vo of the ex-works price of
                                                            the produa, and
                                                        — where the value of all the non-
                                                            onginatine materials used does
                                                            not exceed the value of the ori-
                                                            ginating materials used
    911!          Complete watch or clock move-         Manufacture:                             Manufacture in which the value of
                  ments, unassembled or partly as-                                               all the materials used does not ex-
                  sembled (movement sets); incom-       — in which the value of all the
                                                                                                 ceed 30 Vc of the ex-works price of
                  plete watch or clock movements,            materials used does not exceed
                                                                                                 the produa
                  assembled; rough watch or clock            40 Vo of the ex-works pnee of
                  movements                                  the product, and
                                                        — where, within the above limit,
                                                             the materials classified within
                                                             heading No 9114 are only used
                                                             up to a value of 5 :/c of the ex-
                                                             works price of the product
                                                                                                                              148
 ---pagebreak---        (1)                         (2)                                        (3)                                            <*)
  9111           Watch cases and parts thereof              Manufaaure :                                    Manufaaure in which the value of
                                                                                                            all the materials used does not ex-
                                                                in which the value of all the               ceed 30 Vo of the ex-works price of
                                                                materials used does not exceed              the product
                                                                40 Vo of the ex-works price of
                                                                the product, and
                                                                where, within the above limit,
                                                                the materials classified within
                                                                the same heading as the produa
                                                                are only used up to a value of
                                                                5 Vo ot the ex-works price of
                                                                the produa
   9112           Clock cases and cases of a similar        Manufaaure :                                    Manufaaure in which the value of
                  type for other goods of this chap-                                                        all the materials used does not ex-
                  ter, and parts thereof                    — in which the value of all the                 ceed 30 Vo of the ex-works price of
                                                                 materials used does not exceed             the produa
                                                                 40 Vo of the ex-works price of
                                                                 the product, and
                                                            — where, within the above limit,
                                                                 the materials classified within
                                                                 the same heading as the produa
                                                                 are only used up to a value of
                                                                 5 Vo of the ex-works price of
                                                                 the product
   9113           Watch straps, watch bands and
                  watch bracelets, and parts thereof:
                  — Of base metal, whether or not           Manufaaure in which the value of
                       plated, or clad with precious        all the materials used does not ex-
                       metal                                ceed 40 Vo of the ex-works price of
                                                            the produa
                  — Other                                   Manufaaure in which the value of
                                                            all the materials used does hot ex-
                                                            ceed 50 Vo of the ex-works price of
                                                            the product
   Chapter 92      Musical instruments, parts and ac-       Manufaaure in which the value of
                   cessones of such articles                all the materials used does not ex-
                                                            ceed 40 % of the ex-works price of
                                                            the produa
                                                                                  Vorkm    or
  HS heading No                       Description of produa                             6     P">««-«-l «*"«<- o u - o n "on-ong.naung maurnah
           b                          ~     v *»     Y                                           l j ) a t confen onginaung status
         O      I                               (2)                                                                 (3)
    Chapter 93       Arms and ammunitions; parts and accessories                     Manufaaure in which the value of all the materials
                     thereof                                                         used does not exceed 50 Vo of the ex-works price of
                                                                                    the produa
ex 9401              Base metal furniture, incorporating unstuffed cot-              Manufacture in which all the materials used are classi-
    and              ton cloth of a weight of 300 g/m' or less              fied          within a heading other than that of the produa
ex 9403
                                                                                     or
                                                                                     Manufaaure from cotton cloth already made up in a
                                                                                     form ready for use of heading No 9401 or 9403, provi-
                                                                                     ded:
                                                                                     — its value does not exceed 25 Vo of the ex-works
                                                                                         pnee of the produa, and '
                                                                                     — all the other materials used are already originating
                                                                                         and are classified within a heading other than
                                                                                         heading No 9401 or 9403
                                                                                                                                           149
 ---pagebreak---        (I)                            (2)                                                   (3)
   9405    Lamps and lighting fittings including searchlights    Manufaaure in which the value of all the materials
           and spotlights and parts thereof, not elsewhere       used does not exceed 50 Vo of the ex-works price of
           specified or included; illuminated signs, illuminated the product
           name-plates and the like, having a permanently
           fixed light source, and parts thereof not elsewhere
           specified or included
   9406    Prefabricated buildings                               Manufacture in which the value of all the materials
                                                                 used does not exceed 50 Vo of the ex-works pnee of
                                                                 the produa
   9503    Other toys, reduced-size ('scale') models and         Manufaaure in which:
           similar recreational models, working or not;
                                                                 — all the materials used are classified within a heading
           puzzles of all kinds
                                                                      other than that of the produa, and
                                                                 — the value of all the materials used does not exceed
                                                                       50 Vo of the ex-works price of the product
ex 9506    Articles and equipment for gymnastics, athletics,      Manufaaure from materials not classified within the
           other sports (excluding table tennis) or outdoor       same heading as the product However, roughly
           games not specified or included elsewhere in this      shaped blocks for making golf clubs heads may be used
           chapter, swimming pools and paddling pools             ana the other materials classified within the same
                                                                  heading may also be used provided their value does not
                                                                  exceed 5 Vc of the ex-works price of the product
   95Cv     Fishing rods, fish-hooks and other line fishing       Manufacture in which all the materials used are
           tackle, fish landing nets, butterfly nets and similar  classified within a heading other than that of the
           net-s. decoy 'birds' (other than those of heading No     roduct. However, materials classified within the same
           0
             2 : c or Q ~:5) and similar hunting or shooting
            requisites
                                                                  C eading mav be used provided their value does not
                                                                  exceed 5 Vc of the ex-works price of the product
ex 9601     Anicles of animal, vegetable or mineral carving       Manufacture from 'worked' caning materials of the
   and      materials                                             same heading
ex 9602
ex 96C3     Brooms and brushes, (except for besoms and the        Manufaaure in which the value of all the materials
            like and brushes made from marten or squirrel         used does not exceed 5 : V: of the ex-works price of
            hair), hand-operated mechanical floor sweepers,       the produa
            not motorized, paint pads and rollers, squeegees
            and mops.
   9605     Travel sets for personal toilet, sewing or shoe or    Each item in the set must satisfy the rule which would
            clothes cleaning                                      apply to it if it were not included in the set. However,
                                                                  non-originating articles may be incorporated, provided
                                                                  their toul value does not exceed 15 Vo of the ex-works
                                                                  price of the set
   9606     Buttons, press-fasteners, snap-fasteners and press-   Manufaaure in which:
            studs, button moulds and other parts of these
            articles; button blanks                               — all the materials used are classified within a heading
                                                                       other than that of the product, and
                                                                  — the value of all the materials used does not exceed
                                                                        50 Vc of the ex-works price of the product
   9608     Ball point pens, felt lipped and other porous-tipped   Manufaaure in which all the materials used are
           pens and markers, fountair pens, stylograph pens        classified within a heading other than thai of the
           and other pens; duplicating stylos, propelling or      product However, nibs or nib points may be used and
           sliding pencils, pen-holders, pencil-holders and       the other materials classified within the same heading
           similar holders; pans (including caps and clips) of     mav also be used provided their value does not exceed
           the foregoing anicles, other than those of heading      5 Vc of the ex-works price of the product
           No 9609
                                                                                                                    150
 ---pagebreak---        (1) 1                          (2)                          1                          (3)
   9612      Typewriter or similar ribbons, inked or otherwise       Manufacture in which
             prepared for givmg impressions whether or not on        _ d| ^        ^ ,      d       lajjificd v i t h i n headi
             spools or «n cartndges; mk-pads, whether or not             ^ ^       ^     f ^
                                                                                                v
                                                                                                  ^        and
             inked, with or without boxes
                                                                     — the value of all the materials used does not exceed
                                                                        50 Vo of the ex-works price of the produa
   9613      Cigarette lighters and other lighters, whether or not
             mechanical or electrical, and parts thereof other
             than flints and wicks:
             — Lighten with piezo igniter                            Manufaaure in which the value of all the materials of
                                                                     heading No 9613 used does not exceed 30 Vo of the
                                                                     ex-works price of the product
             — Other                                                 Manufaaure in which the value of all the materials of
                                                                     heading No 9613 used does not exceed 5 Vo of the ex-
                                                                     works price of the produa
ex 9614      Smoking pipes or pipe bowls                              Manufaaure from roughly shaped blocks
                                                                                                                           151
 ---pagebreak---                                   ANNEX III
                         MOVEMENT CERTIFICATES EUR.1
    1. Movement certificates EUR.1 shall be made out on the form of which a
       specimen appears In this Annex . This form shall be printed in one
       or more of the languages In which the Agreement Is drawn up.
       Certificates shall be made out In one of these languages and In
       accordance with the provisions of the domestic law of the exporting
       State or territory. If they are handwritten, they shall be completed
       In Ink and In capital letters.
    2. Each certificate shall measure 210 x 297 mm; a tolerance of up to
       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/m s . It shall have a printed green
       gull loche pattern background making any falsification by mechanical
       or chemical means apparent to the eye.
    3. The Member States of the Community and the Faroe Islands may reserve
       the right to print the certificates themselves or may have them
       printed by approved printers. In the latter case each certificate
       must inclue a reference to such approval. Each certificate must
       bear the name and address of the printer or a mark by which the
       printer can be identified. It shall also bear a serial number,
       either    printed  or   not,   by  which   It   can  be   Identified.
                                                                           J- U» Vw
(ui
 ---pagebreak---                                                      MOVEMENT CERTIFICATE
F   Exporter iummm M
                                                                        EUR.1                    No A        000.000
                                                               2. Certificat* used In preferential trade bet
X Consignee *am« n*                     tOpt«n»l)
                                                                                                    and
                                                                             (hMii woraorwx» eoitfunu.     ef csunviet ot erreont.
                                                               4. Country, group of countries          S. Country, group of countrtea
                                                                   or territory In which the              or territory of destination
                                                                   products are considered as
                                                                   originating
S. Transport détails i                                         7. Remarks
t . Item number; Marks                     Number and kind of   ('); Description of goods            9.                      10. m
                                                                                                                                 i
                                                                                                        or other mea-
                                                                                                        sure (Utrec,
                                                                                                        m \ etc.)
     , CUSTOMS ENDORSEMENT                                                          12. DECLARATION BY THE EXPORTER
       Declaration c-enlfieâ                                                            I. me undersigned, declare that •J-i-, goods
                                                                                        describee above m e n tne condnons requirad
       Export document (')
                                                                                        for tne issu* ot this certificat*.
       Form                       _ — No
       Customs ome*
       Issuing country or territory
       Date
                                                                                        Place anc date
                                                                                                                                      53
 ---pagebreak--- 13. REQUEST FOR VtMRCATION. to:                                     14. RESULT OF VERIFICATION.
                                                                    Verification carried out snows trust This ceruicat* (')
                                                                            was issued by the customs office indicated
                                                                    •       tne information contajnec therein is accurate
                                                                            does not meet the requirements as :c «jthenticiry _.-.:
                                                                    D       accuracy (see remarKs appended).
Verrf.cii.or. of me authenticity and accuracy of tnis certificate
is requested.
                           (Pan* and oat*;                                                     (Piaca anc sale)
                                                      Stamp                                                                Sump
                 (Signature)                                                         fStonature)
                                                                    (') msec x \r :->« appropriait sex
                                                                NOTES
 Cermcatss must not contain erasures or words wrttten over one another. Any altérations must be made by deleting the mco-'rct
 particulars and adding any nacaner/ corrections. Any suet) aftafatoi must be mitafled by me person who completed The certifi-
 cate anc endorsed by the customs authorities of The issuing country or terrnory.
 No spaces musn be left b e o w r i the items entered on the cerBncal* and each Item must be preceded by an item nurrzzr.
 A hor.zomaJ line must be drawn irnmediatery below the last Kern. Any unused space must be struck through ir. sucn a manne as
 to mave am/ later aocttons impoaalbie.
 GocCs rr.uST be oescrfped In accordance with commandai practice and with sufficient detail to enaole them tc be .oentifiec
                                                                                                                               154
 ---pagebreak---                                              APPLICATION FOR A MOVEMENT CERTIFICATE
1. Experte* * - m t ••> -na-eai. ue-aeji
                                                                          EUR. 1                          N.    A      ooo ooo
                                                                                    Sa* M I H • « • * • « a ai ara fiw-niii.., uaa
                                                                 2. Application for a certificate to be used in préférer-::al trade
                                                                     between
a. Con»iç->»« I N ^    iu- aaaraae, eeaawyi (Oeta-naii
                                                                                                              and
                                                                               (inaar- aeerepnat* caurnnti grouea a» sewmnaa er awmen*
                                                                 4. Country, group of countries                   S. Country, group of countries
                                                                     or territory In which the                        or territory of des t. nation
                                                                     products ana considered as
                                                                     originating
C. Transpon details Ot-a-a-ari                                   7. Remarks
   Item number: Menu and nuRSbers; Number and kind of             ('); Description of goods                                           10. Invoices
                                                                                                                                          l'-ouonal)
                                                                                                                    or other mea-
                                                                                                                    sure (litres,
                                                                                                                    m \ etc.)
                                                                                                                                            155
 ---pagebreak---                                                        DECLARATION f t THE EXPORTER
I. tht jndersigned. exporter of the goods described overleaf.
DEC-ARE         mat the goods meet the conditions required for the iasue of the attached certificate
SPECIFY          as follows the caxumitances which have enabled these goods to meet the above conditions:
SUBM!~          the following supporting documents (')
 UNDE-'AKE to submit at the request of the appropriai* authorities, any supporting evidence which these authorities may --quire
                   for the purpoaa of cssutng the an ached teititVaia, and undertake. If required to agree to any inspecbon .;: my
                   accounts and to any check on the processes of rrwajfacture of the above goods, earned out by the said authon ies :
  REQUEST        me issue of the agauhad certificate for these goods.
                                                                                                       (Place anfl oat a]
                                                                                                           (S»gnatur»)
   (') For example: import Ooajrnenta. movement certificates. Invoices, marwfacturer» 3acia<-*t.on*. etc.. r»r»rnnc t= tn« pnwucis isec in m*nui.;iura
       or to :ne c-ooai re-exported S-i Vw same stale.
                                                                                                                                             156
 ---pagebreak---                                ANNEX IY
                              FORy EUR.2
1. Form EUR.2 shall be made out on the form of which a specimen appears
   In this Annex . This form shall be printed In one or more of the
   languages in which the Agreement is drawn up. Forms shall be made
   out In one of these languages and In accordance with the provisions
   of the domestic law of the exporting State or territory. If they are
   handwritten, they shall be completed In Ink and In capital letters.
2. Each Form EUR.2 shall measure 210 x 297 mm; a maximum tolerance of up
   to minus 5 mm or plus 8 mm In the length may be allowed. The paper
   used must be white, sized for writing, not containing mechanical pulp
   and weighing not less than 64 g/m t .
3. The Member States of the Community and 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 identIfled.
 ---pagebreak---      FORM E U R . 2 NO                                                                d        Form used in preferential trade
                                                                                               batween r )
2 I Exporter Name it                                                                  j 3 | Declaration by exporter
                                                                                               I. the undersigned, exporter of the gooes described : flow.
                                                                                               declare that the goods comply with the -esumtments :. ' the
                                                                                               completion of this form anc mat me goods have obtain-;- the
                                                                                               status of originating products wrthm me provisions governing
                                                                                               preferential trade show.-, m bcx i.
* I Consignee iNene lu* address, country
                                                                                               Place and date
                                                                                      UJ
                                                                                      | 6 | Signature of exporter
     Remark:                                                                          j 6 | Country ot origin (')                 I S j Country of da»t»iuruc:i (')
                                                                                                                                    TO J Gross mesa (kg)
  I Manu. Numbers of ci.iiiljiwteait; Description of goods                                                     *2j Authority In the exporting courrtn. (*)
                                                                                                              — ' responsible for verification of the declara-
                                                                                                                      tion by the exporter
   mart lha C O J ^ ^ S groups ex uajertaa er terreonaa concaned ('I a * v to any nrWuaiajri atreaOy cemeC e i / t r N eppropnan autnorniee p] The ic*m co&rtry et or-jn maana
   ary. group ?* countnea or terrearjr aewr* tat eaeai ara coraaoerac io &• ortgaveng J*| The larm 'country maana country proue o> coumnaa or i«rniory ef oaanr«.«&fv
                                                                                                                                                                    3
                                                                                                                                                                      f"58
 ---pagebreak--- I 3 j Request for nsrtflcatJon
       The ve':t•cation of The declaration by the exporter on the front              0 Result of venfkaruon
                                                                                       Vérification carried ou: snows mat (')
       of this -orm is requested (*)                                                   i—t the stat*ments ano particulars giv«n m this i ; - r      are
                                                                                              accurst*.
                                                                                              this form does not meet the re j u r e m e n t s a i   to
                                                                                       •      accuracy and authenticity (see remarks appended
                                                                           19.                                                                  IS.
                  (Place and Oaae)                                                                  (Puce and oaiei
                                                                   Sump                                                                   Stamp
                   (Signature)                                                                       (Signature)
                                                                                       (') Ineen I n t r a «pprepnau Do*
  ) SuDaaouani «anncaOom or torma SU*, t eMat Se iDamae oui ai random ar *                 aumonnai or ma hnpomng S U M          OCJOI a n m n  :.r*cy of ma
    Mernwuer. ••^••amg ma auinaneuay «f tie lenna end ma true ongr. o* ma good* in i
                                                       Instructions for the conajietton of form EUR. 2
     A form EUP.. 2 may be made out only for goods which m the exporting country futfii the conditions specified by tr>fc provisions ;=veming
    the trade -^errec :c in box t . Thaae provisions must be studied earafufy betor* the form is completed.
     In the case ot a consignment by parce» post the exporter attaches the form to me dispatch note in the case ot • =ons*gnm*r oy letter
     post he encloses tne form in a r""*'" f J" The reference "EUR. 2* and the serial numoer of tne form should be staiea on me customs green
     JabeJ declaration C i or on the customs declaration G2/CP3. as appropriate.
    These instructions do not exarnpt the exporter from complying with any other formalities required by customs or postal regulations
     An exporter who uses this «orra h abflged to submit to the appropriate authonbes any supporting evidence which they may require and to
            to any inspection by them of res accounts and of the processes of manufacture of the goods described in box * 1 of this fc-'-n
                                                                                                                                                159
 ---pagebreak---                                 AUKLUL__JL
             SPECIMEN IMPRESSION OF THE STAMP MENTIONED   IN
                       ARTICLE 1 3 , PARAGRAPH 3f&>
                                        30 mm
(1) Initials or coat of arms of the exporting State or territory
(2) Such Information as     Is necessary    for  the Identification of the
    approved exporter.
                                                                        1 CO
 ---pagebreak---                                            ANNEX     VI
LIST   OF    PRODUCTS REFERRED TO IN ARTICLE 31 WHICH ARE                             TEMPORARILY
                   EXCLUDED FROM THE SCOPE OF THIS PROTOCOL
    HS heading No                                 Description of product
ex 2737              Oils in which the weight of the aromatic constituents exceeds that of the
                     non-aromatic constituents, being oils similar to mineral oils obtained by distil-
                     lation of high temperature coal tar, of which more than 65 Vc by volume distilis at
                     a temperature of up to 250 *C (including mixtures of petroleum spirit and
                     benzole), for use as power of heating fuels
    2709 io 2715     Mineral oils and producu of their distillation ; bituminous substances: mineral
                     waxes
ex 29:1              Acylic hydrocarbon for use as power or heating fuels
                     Cvclancs and cyclenes (other than azulenes), benzene, toluene, xylenes, for use as
                     power or heating fuels
                     Lubricating preparations containing petroleum oils or oils obtained from bitu-
                     minous minerals, provided they represent less than 70 % by weight
ex 3*:«              .Artificial waxes and prepared waxes with a basis of paraffin, petroleum waxes,
                     waxes obtained from bituminous minerals, siack wax or scale wax
 ex 381!              Prepared additives for lubricating oil. containing petroleum oils or oils obtained
                      from bituminous minerals
                                                                                                         J.61
 ---pagebreak---                                                    Protocol No 4
              concerning agricultural products subject to special provisions applicable to imports
                                                     Article 1
   In accordance with Article 17 of this Agreement, the European Economic Community grants to products
   originating in and coming from the Faroe Islands the fol lowing tariff quotas:
   CN Code                                 Description                      Rate of duty     Tariff quota
                                                                                             TQ in tons
                                                                                             reference
                                                                                             ceiling R.C.
   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                                                                   20 T (1)
   0210 90 19    Meat of sheep or goats, salted, in brine, dried or
                 smoked, boneless
   0210 90 60    Edible meat offal of sheep or goats, salted, in brine,
                 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
   ex 1602       Other prepared or preserved meat, meat offal or blood:
                           - Of sheep and goats
   2309 10 11    Pet food                                                                       1000 T
   2309 90 41    Fish feed                                                                      5000 T
   (1) This quota will be implemented in the framework of the autonomous rjegime established
                                                                                        .sQi
       by Counojil Regulation (EEC) No 3643/85.
to
 ---pagebreak---                      Article 2
In accordance with Article 5 and Annex II of this
Agreement, the Faroe Islands shall grant freedom of
tariffs and duties to goods of EEC origin, falling
within the Chapters 1 - 24 in the Harmonized System,
with the following exceptions:
0204           Meat of sheep or goats, fresh,
               chilled or frozen.
0206 80 99     Other edible offal, fresh and chilled
               of sheep and goats.
0206 90 99     Other edible offal, frozen, of sheep
               and goats.
0210 90 11     Meat, salted, in brine, dried and
               smoked, of sheep and goats, with bone
               in.
0210 90 60     Offal, of sheep and goats.
0210 90 90 31-40. Edible flours and meals of meat
                   and meat 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,
               yogurt, kephir 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.
ex 1601         Sausages and similar products of
               meat, meat offal or blood of sheep
                and goats; 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.
                                                      J €3
 ---pagebreak---                            DECLARATIONS
    Declaration by the European Economic Community concerning
                 Article 23 (1) of the Agreement
The European Economic Community declares that, in the context of
the autonomous implementation of Article 23 (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 Economic
Community.
Declaration by the European Economic Community concerning the
regional application of certain provisions of the Agreement
The European Economic Community declares that the application of
any measures it may take under Articles 23, 24, 25 or 26 of the
Agreement, in accordance with the procedure and under the
arrangements set out in Article 27, or under Article 28 may be
limited to one of its regions by virtue of Community rules.
JOINT DECLARATION CONCERNING THE REVIEW OF THE TRADE AGREEMENT IN
     KEEPING WITH THE DEVELOPMENT OF EEC-EFTA TRADE RELATIONS
If the Community - upon the conclusion of new agreements or
arrangements between the Community and the Member States of EFTA
in the context of the establishment of a European Economic Area -
grants concessions to the EFTA countries going beyond those
granted to the Faroe Islands in areas covered by this 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 this 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.
                                                                Ui
 ---pagebreak---              Exchange of letters on mutual assistance
Draft letter from the Head of the delegation of Denmark and the
Faroe Islands
Sir
I have the honour to confirm that the Government of Denmark and
the Home Government of the Faroe Islands are prepared to conclude
an agreement with the European Economic Community on mutual
administrative assistance in customs matters as soon as such an
agreement has been concluded with one or more of the Member
States of the European Free Trade Association. I also confirm
that the agreement on mutual administrative assistance in customs
matters to be concluded between the European Economic Community
and the Government of Denmark and the Home Government of the
Faroe Islands shall be based upon the agreement or agreements
concluded between the European Economic Community and one or more
of the Member States of the European Free Trade Association.
Please accept, Sir, the assurance of my highest consideration.
                            (S)
               Head of the delegation of Denmark and
                 the Faroe Islands
Draft letter from the Head of the delegation of the European
Economic Community
Sir,
 In your letter of today's date you inform me as follows:
 "I have the honour to confirm that the Government of Denmark and
 the Home Government of the Faroe Islands are prepared to conclude
 an agreement with the European Economic Community on mutual
 administrative assistance in customs matters as soon as such an
 agreement has been concluded with one or more of the Member
 States of the European Free Trade Association. I also confirm
 that the agreement on mutual administrative assistance in customs
 matters to be concluded between the European Economic Community
 and the Government of Denmark and the Home Government of the
 Faroe Islands shall be based upon the agreement or agreements
 concluded between the European Economic Community and one or more
 of the Member States of the European Free Trade Association.
 Please accept, Sir, the assurance of my highest consideration.
 I have the honour to acknowledge receipt of your letter.
 Please accept, Sir, the assurance of my highest consideration.
                                (S)
                                    Head of the delegation of the
                                     European Economic Community
                                                                 165
 ---pagebreak---  ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(91) 323 final
                                                      DOCUMENTS
EN                                                                              02
                                Catalogue number : CB-CO-91-368-EN-C
                                                             ISBN 92-77-75271-8
Office for Official Publications of the European Communities
L^2985 Luxembourg