CELEX: 52004PC0699
Language: en
Date: 2004-10-20
Title: Proposal for a Council Regulation applying a scheme of generalised tariff preferences

COMMISSION OF THE EUROPEAN COMMUNITIES
                                    Brussels, 20.10.2004
                                    COM(2004) 699 final
                                    2004/0242 (CNS)
                       Proposal for a
                COUNCIL REGULATION
    applying a scheme of generalised tariff preferences
              (presented by the Commission)
EN                                                       EN
 ---pagebreak---                                  EXPLANATORY MEMORANDUM
   1.        Context
   Council Regulation (EC) No 2501/2001 of 10 December 20011 applying a multiannual
   scheme of generalised tariff preferences will expire on 31 December 2005. In July 2004, the
   Commission adopted guidelines on the role of the GSP for the next ten-year period 2006 to
   20152. This memorandum explains the context and provisions of the draft proposal for the
   implementing regulation.
   In 1994, the previous guidelines3 for the ten-year period 1994-2005 and their implementing
   regulations introduced a number of important changes such as tariff modulation according to
   product sensitivity, graduation and special incentive schemes. In 2001, a special arrangement
   for the Least Developed Countries was introduced, for an unlimited period of time.
   Experience has shown that some of these features work well in practise and should be
   continued while, on the other hand, it would seem necessary to adjust some of the measures in
   light of experience gained.
   The Community has granted trade preferences to developing countries in the framework of its
   GSP since 1971. Trade policy plays a key role in the EU’s relations with the rest of the world.
   The GSP scheme is part of that policy and must be consistent with and consolidate the
   objectives of development policy. To this end, this scheme must also be compatible with the
   Doha Development Agenda. A key priority is to help developing countries to benefit from
   globalisation, in particular by linking trade and sustainable development.
   2.        Consultation of interested parties
   A wide number of interest groups have expressed their view and made their own observations
   and recommendations on the future of the GSP. The Council has presented its conclusions to
   the Communication on the ten-year guidelines and the European Parliament and European
   Economic and Social Committee have similarly expressed their opinions on the guidelines. A
   civil society dialogue was conducted in July 2004. Trade unions and various professional
   associations have expressed their views. Beneficiary countries of the GSP have been active in
   bringing forward their views. Owing to the specialised statistics required, impact assessments
   have been conducted internally.
   3.        Budgetary implications
   The regulation does not incur costs charged to the EC budget. Its application does, however,
   entail loss of customs revenue. The annual loss of customs revenue resulting from the draft
   regulation is estimated to be EUR 2,2 billion. The proposed regulation entails some changes
   with respect to the current one. These relate to the graduation mechanism, a new special
   arrangement for sustainable development (merging three previous arrangements) and changes
   to the product coverage. It is not expected that these changes would mean a significant change
   in loss of revenue compared to the present situation.
   1
           OJ L 346 of 31.12.2001, p. 1.
   2
           COM(2004) 461 final.
   3
           COM(1994) 212 final.
EN                                                  2                                              EN
 ---pagebreak---    4.        Explanation of the provisions
   Simplification has been achieved through a reduction in the number of arrangements, from
   five to three and in particular by the introduction of a single incentive arrangement in place of
   the three special schemes for the protection of labour rights, of the environment and to combat
   drug production and trafficking. Thus the proposed scheme consists of a general arrangement,
   a special incentive arrangement for sustainable development and good governance and a
   special arrangement for the least developed countries (“EBA – Everything But Arms”).
   Further simplification will be achieved in time by removing from the list of beneficiaries
   those countries that enjoy preferential access to the Community market under the terms of an
   agreement, usually a free-trade agreement (FTA). The Community would ensure that no
   country would lose as a result of this transformation because benefits for any particular
   product which previously received GSP treatment would be consolidated into the FTA in
   question.
   As under the current scheme, preferences shall continue being differentiated according to the
   sensitivity of products. The regulation maintains the current flat rate reduction of 3,5
   percentage points for sensitive products and 100% for non-sensitive products. However, it
   enlarges the scope of the scheme by introducing new products in the general arrangement and
   by introducing a generous special incentive scheme. The EBA arrangement maintains its
   global coverage of everything but arms while the two other arrangements incorporate new -
   mainly agricultural and fishery - products.
   The current GSP Regulation provides for two special incentive arrangements for the
   protection of labour rights and the environment. These arrangements should be incorporated
   into a broader scheme in order to reflect the integral nature of the concept of sustainable
   development.
   It is universally recognised that sustainable development involves a variety of aspects, such as
   respect of fundamental human and labour rights, good governance and environmental
   protection. Interrelationship among these elements has been expressed, in particular, in
   multiple international conventions and instruments such as the UN Declaration on the Right to
   Development of 1986, the Rio Declaration on Environment and Development of 1992, the
   Vienna Declaration and Programme of Action of 1993, the UN Agenda for Development of
   1997, the ILO Declaration on Fundamental Principles and Rights at Work of 1998, the UN
   Millenium Declaration of 2000 and the Johannesburg Declaration of Sustainable
   Development of 2002. In addition, the fight against drugs is a shared responsibility to all
   countries.
   One element in promoting sustainable development is to improve the economic situation in
   developing countries, in particular in those which are less integrated into the international
   trading system and which lack diversification of their economies. Consequently, developing
   countries which are most vulnerable and which through the ratification and effective
   implementation of the basic conventions on human and labour rights and the protection of the
   environment and good governance assume special burdens and responsibilities should benefit
   from additional tariff preferences under the GSP scheme. Conversely, high income countries
   and countries with a relatively high degree of diversification and trade integration are in a
   different position as they are deemed to have the resources allowing them to pursue
   sustainable development policies without additional assistance. The special incentive
EN                                                  3                                                EN
 ---pagebreak---    arrangement for sustainable development and good governance therefore targets those
   developing countries most in need.
   The additional preferences are immediately granted to developing countries that have ratified
   and effectively implemented the 16 core conventions on human and labour rights and 7 of the
   conventions related to good governance and the protection of the environment. At the same
   time beneficiary countries are committing themselves to ratifying and effectively
   implementing the international conventions which they have not yet ratified.
   The 16 conventions on human and labour rights have been selected as they incorporate
   universal standards and reflect rules of customary international law and they form the core
   basis of the concept of sustainable development. The remaining conventions reflect basic
   global standards aiming at the effective implementation of policies geared to sustainable
   development.
   The relevant conventions are also those with mechanisms that the relevant international
   organisations can use to regularly evaluate how effectively they have been implemented. The
   Commission will take into account these evaluations before deciding which of the applicant
   countries will be selected to benefit from the incentive scheme. Based on the applications
   from developing countries the Commission will later produce a list of the beneficiaries under
   the arrangement.
   In addition to targeting GSP on countries through the graduation mechanism as described
   below, measures have been adopted to dampen the shock when the United Nations removes a
   country from the list of LDCs, in the form of a transition period for gradual withdrawal of a
   country from the special GSP, the Everything-But-Arms arrangement. At present, the country
   in question automatically loses all the GSP advantages it enjoyed as an LDC. The new
   mechanism allows for a gradual removal of a country from the EBA arrangement.
   Graduation shall be applied to groups of products from countries that are competitive on the
   Community market and no longer need the GSP to boost their exports. Graduation is not a
   penalty, it is a sign that the GSP has successfully performed its function, at least in relation to
   the countries and products in question. In this way, graduation is very closely linked to the
   economic competitiveness of the beneficiary countries. The GSP thus focuses on the countries
   most in need and helps them play a greater role in international trade. For the other
   beneficiary countries, graduation brings about greater share of the benefits of GSP.
   Essential changes have been made to the graduation mechanism to make it simpler. The
   current criteria (share of preferential imports, development index and export-specialisation
   index) have been replaced with a single straightforward criterion: share of the Community
   market, expressed as a share of preferential imports. Groups of products are defined by
   reference to the “sections” in the Combined Nomenclature. As only those countries that are
   competitive for all the products in a section are graduated, small beneficiary countries have
   not been graduated solely on the basis of a few competitive products in a section.
   Graduation should also play an important role in regulating trade flows for textile products
   and clothing, following the abolition of MFA quotas on 31 December 2004.
   The new GSP with a graduation mechanism targeted on the most competitive countries will
   mean that most beneficiaries will be granted preferences without any restrictions other than
   compliance with the relevant GSP rules. The GSP temporary withdrawal provisions and the
EN                                                 4                                                   EN
 ---pagebreak---    safeguard clause will take account of this new situation. Even though they will still be for use
   in exceptional circumstances only, those provisions will be made more credible and the way
   they are used more flexible, in particular in case of unfair trading practices.
   As soon as the regulation applies, the Commission will assess its impact on the outermost
   regions of the EU.
EN                                                  5                                               EN
 ---pagebreak---                                                            2004/0242 (CNS)
                                              Proposal for a
                                     COUNCIL REGULATION
                         applying a scheme of generalised tariff preferences
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community, and in particular Article
   133 thereof,
   Having regard to the proposal from the Commission4,
   Having regard to the opinion of the European Parliament5,
   Having regard to the Opinion of the European Economic and Social Committee6,
   Whereas:
   (1)    Since 1971, the Community has granted trade preferences to developing countries, in
          the framework of its scheme of generalised tariff preferences.
   (2)    The Community's common commercial policy must be consistent with and consolidate
          the objectives of development policy, in particular the eradication of poverty and the
          promotion of sustainable development and good governance in the developing
          countries. It must comply with the WTO requirements, and in particular with the
          GATT Enabling clause of 19797.
   (3)    A communication8 from the Commission to the Council, the European Parliament and
          the European Economic and Social Committee of 7 July 2004 sets out the guidelines
          for the application of the scheme of generalised tariff preferences for the period 2006
          to 2015.
   (4)    The first regulation implementing these guidelines should apply from 1 July 2005 until
          31 December 2008.
   (5)    The scheme should consist of a general arrangement granted to all the beneficiary
          countries and territories and two special arrangements taking into account the various
          development needs of similar-situated developing countries.
   4
          OJ C […], […], p. […].
   5
          OJ C […], […], p. […].
   6
          OJ C […], […], p. […].
   7
          « Differential and More Favourable Treatment, Reciprocity and Fuller Participation of Developing
          Countries », GATT Decision of 28 November 1979 (L/4903).
   8
          COM(2004) 461 final.
EN                                                  6                                                      EN
 ---pagebreak---    (6)  The general arrangement should be granted to all beneficiary countries unless they are
        classified by the World Bank as a high-income country and if they are not sufficiently
        diversified in their exports.
   (7)  The special arrangement for sustainable development and good governance is based
        on an integral concept of sustainable development as recognized by international
        conventions and instruments such as the UN Declaration on the Right to Development
        of 1986, the Rio Declaration on Environment and Development of 1992, the ILO
        Declaration on Fundamental Principles and Rights at Work of 1998, the UN
        Millennium Declaration of 2000 and the Johannesburg Declaration on Sustainable
        Development of 2002. Consequently, developing countries which due to a lack of
        diversification and insufficient integration into the international trading system are
        vulnerable while assuming special burdens and responsibilities due to the ratification
        and effective implementation of core international conventions on human and labour
        rights, environmental protection and good governance should benefit from additional
        tariff preferences. These preferences are designed to promote further economic growth
        and thereby to respond positively to the need for sustainable development. Under this
        arrangement tariffs are therefore suspended for the beneficiary countries.
   (8)  The Commission will monitor the effective implementation of the international
        conventions in accordance with the respective mechanisms thereunder and it will
        assess the relationship between additional tariff preferences and the promotion of
        sustainable development.
   (9)  The special arrangement for the least developed countries should continue granting
        duty-free access to products originating in the least developed countries, as recognized
        and classified by the United Nations. For a country no longer classified by the United
        Nations as a least developed country a transitional period should be established to
        alleviate any adverse effects caused by removal of the tariff preferences granted under
        this arrangement.
   (10) Preferences should continue being differentiated according to the sensitivity of
        products, differentiating between non-sensitive and sensitive products, to take into
        account the situation of the sectors manufacturing the same products in the
        Community.
   (11) Tariff duties on non-sensitive products should continue to be suspended, while duties
        on sensitive products should enjoy a tariff reduction to ensure a satisfactory utilisation
        rate while at the same time taking into account the situation of the respective
        Community industries.
   (12) Such reduction should be sufficiently attractive in order to motivate traders to use the
        opportunities offered by the scheme. As far as ad valorem duties are concerned, the
        reduction should therefore be a flat rate of 3,5 percentage points of the most favoured
        nation (MFN) duty rate. Specific duties should be reduced by 30 %. Where duties
        specify a minimum duty, that minimum duty should not apply.
   (13) Where preferential duty rates, calculated in accordance with Regulation (EC) No
        2501/2001 of 10 December 2001 applying a scheme of generalised tariff preferences
EN                                              7                                                  EN
 ---pagebreak---         for the period from 1 January 2002 to 31 December 20049, provide a higher tariff
        reduction, they should continue to apply so as not to derive beneficiary countries of
        benefits granted under an earlier scheme.
   (14) Duties should be totally suspended where preferential treatment results in ad valorem
        duties of 1 % or less or in specific duties of EUR 2 or less as the cost of collecting
        such duties is higher than the revenue gained.
   (15) For the sake of coherence of the Community commercial policy, a beneficiary country
        should not benefit from both the GSP and a free trade agreement, if this agreement
        covers at least all the preferences provided by the present scheme for this country.
   (16) Graduation should be based on criteria related to sections of the Common Customs
        Tariff. The graduation of a section for a beneficiary country should be applied when
        the section meets the criteria for graduation during three consecutive years to increase
        predictability and fairness of graduation by eliminating the effect of large and
        exceptional variations in the import statistics.
   (17) The rules of origin, concerning the definition of the concept of originating products,
        the procedures and the methods of administrative cooperation related thereto, laid
        down in Regulation (EEC) No 2454/9310, apply to tariff preferences provided for by
        this regulation to ensure that the benefit of this scheme goes only to those whom the
        scheme is intended to benefit.
   (18) The reasons for temporary withdrawal should include serious and systematic
        violations of the principles laid down in the conventions listed in Annex III so as to
        promote the objectives of those conventions and to ensure that no beneficiary receives
        unfair advantage through continuous violation of those conventions.
   (19) Due to the political situation in Myanmar, temporary withdrawal of all tariff
        preferences in respect of imports of products originating in Myanmar should remain in
        force.
   (20) The measures necessary for the implementation of this Regulation should be adopted
        in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the
        procedures for the exercise of implementing powers conferred on the Commission11.
   (21) The regulation should exceptionally apply before its entry into force in order to allow
        for the timely identification of the beneficiary countries for the general arrangement
        and the special arrangement for sustainable development and good governance.
   9
        OJ L 346, 31.12.2001, p. 1
   10
        OJ L 253, 11.10.1993, p. 1.
   11
        OJ L 184, 17.7.1999, p. 23.
EN                                               8                                               EN
 ---pagebreak---    HAS ADOPTED THIS REGULATION:
                                               TITLE I
                                    GENERAL PROVISIONS
                                               Article 1
   1. The Community scheme of generalised tariff preferences (hereafter “the scheme”) shall
   apply from 1 July 2005 to 31 December 2008 in accordance with this Regulation.
   2. This Regulation provides for:
   (a)       a general arrangement,
   (b)       a special incentive arrangement for sustainable development and good governance
   (c)       a special arrangement for least developed countries.
                                               Article 2
   The beneficiary countries of the arrangements referred to in points (a) and (c) of Article 1(2)
   are listed in Annex I.
                                               Article 3
   1. A beneficiary country shall be removed from the scheme when it has been, during three
   consecutive years, classified by the World Bank as a high-income country and when the five
   largest sections of its GSP-covered imports to the Community represent less than 75% of the
   total GSP-covered imports of the beneficiary country to the Community.
   2. On the basis of the data available on 1st September 2004 at the time of adoption of this
   regulation, the Commission shall establish which beneficiary countries meet the criteria set
   out in paragraph 1. The removal of a country from the scheme shall take place upon entry into
   force of this regulation.
   3. The Commission shall publish a notice in the Official Journal of the European Union
   listing the beneficiary countries which meet the condition set out in paragraph 1.
   4. The Commission shall notify a beneficiary country of its removal from the list of
   beneficiary countries in Annex I.
EN                                                 9                                               EN
 ---pagebreak---    5. When a beneficiary country benefits from a commercial agreement with the Community
   which covers at least all the preferences provided by the present scheme for this country, it is
   excluded from the list of beneficiary countries in Annex I.
                                                    Article 4
   The products included in the arrangements referred to in points (a) and (b) of Article 1(2) are
   listed in Annex II.
                                                    Article 5
   1. The tariff preferences provided for by this Regulation shall apply to imports of products
   included in the arrangements enjoyed by the beneficiary country in which they originate.
   2. For the purposes of the arrangements referred to in Article 1(2) of this Regulation, the rules
   of origin, concerning the definition of the concept of originating products, the procedures and
   the methods of administrative cooperation related hereto, are laid down in Commission
   Regulation (EEC) No 2454/93.
   3. Regional cumulation within the meaning of Regulation (EEC) No 2454/93 shall also apply
   where a product used in further manufacture in a country belonging to a regional group
   originates in another country of the group, which does not benefit from the arrangements
   applying to the final product, provided that both countries benefit from regional cumulation
   for that group.
                                                    Article 6
   For the purposes of this Regulation:
   (a)       «Common Customs Tariff duties» shall mean the duties specified in Part Two of
             Annex I to Council Regulation (EEC) No 2658/87 12, except those duties set up
             within the framework of tariff quotas;
   (b)       “Section” shall mean any of the sections of the Common Customs Tariff as adopted
             by Council Regulation (EEC) No 2658/87;
   (c)       “Committee” shall mean the Committee referred to in Article 26.
   12
            OJ L 256, 7.9.1987, p. 1. Regulation as last amended by Regulation (EC) No 2031/2001 (OJ L 279,
            23.10.2001, p. 1).
EN                                                       10                                                 EN
 ---pagebreak---                                                TITLE II
                   ARRANGEMENTS AND TARIFF PREFERENCES
                                              SECTION 1
                                    GENERAL ARRANGEMENT
                                                Article 7
   1. Common Customs Tariff duties on products listed in Annex II as non-sensitive products
   shall be entirely suspended, except for agricultural components.
   2. Common Customs Tariff ad valorem duties on products listed in Annex II as sensitive
   products shall be reduced by 3,5 percentage points. For products of Section 11, this reduction
   shall be 20 %.
   3. Where preferential duty rates, calculated in accordance with Article 7 of Regulation (EC)
   No 2501/2001 on Common Customs Tariff ad valorem duties applicable on 31 December
   2005, provide a tariff reduction, for the products referred to in paragraph 2 of this Article, of
   more than 3,5 percentage points, these preferential duty rates shall apply.
   4. Common Customs Tariff specific duties other than minimum or maximum duties on
   products listed in Annex II as sensitive products shall be reduced by 30 %. For products of
   CN code 2207, the reduction shall be 15%.
   5. Where Common Customs Tariff duties on products listed in Annex II as sensitive products
   include ad valorem duties and specific duties, the specific duties shall not be reduced.
   6. Where duties reduced in accordance with paragraphs 2 and 4 specify a maximum duty, that
   maximum duty shall not be reduced. Where such duties specify a minimum duty, that
   minimum duty shall not apply.
   7. The tariff preferences referred to in paragraphs 1 to 4 shall not apply to products of sections
   in respect of which those tariff preferences have been removed, for the country of origin
   concerned, according to Article 13 and column C of Annex I.
EN                                                 11                                                 EN
 ---pagebreak---                                               SECTION 2
      SPECIAL INCENTIVE ARRANGEMENT FOR SUSTAINABLE DEVELOPMENT AND
                                          GOOD GOVERNANCE
                                               Article 8
   1. Common Customs Tariff duties on all products listed in Annex II which originate in a
   country included in the special incentive arrangement for sustainable development and good
   governance shall be suspended.
   2. Common Customs Tariff specific duties on products referred to in paragraph 1 shall be
   entirely suspended, except for products for which Common Customs Tariff duties also
   include ad valorem duties. For products of CN codes 1704 10 91 and 1704 10 99, the specific
   duty shall be limited to 16% of the customs value.
   3. The special incentive arrangement for sustainable development and good governance shall
   not include for a beneficiary country products of the sections listed in column C of Annex I.
                                               Article 9
   1. The special incentive arrangement for sustainable development and good governance may
   be granted to a country which
   – has ratified and effectively implemented the conventions under Part A of Annex III and,
   – has ratified and effectively implemented at least seven of the conventions under Part B of
       Annex III and,
   – commits itself to ratify and effectively implement the conventions under Part B of Annex
       III which it has not yet ratified and,
   – which gives an undertaking to maintain the ratification of the conventions and their
       implementing legislation and measures and which accepts regular monitoring and review
       of its implementation record in accordance with the implementation provisions of the
       conventions it has ratified, and
   – is considered as a vulnerable country in accordance with paragraph 2.
   In any case, the 27 conventions have to be ratified by the beneficiary countries by 31
   December 2008.
   2. A vulnerable country is one:
   (a)       that is not classified by the World Bank as a high income country during three
             consecutive years, and whose five largest sections of its GSP-covered imports to the
             Community represent more than 75% of its total GSP-covered imports, or
EN                                                12                                              EN
 ---pagebreak---    (b)      whose GSP-covered imports to the Community represent less than 1% of total GSP-
            covered imports to the Community.
   The data used are those available on 1 September 2004, as an average over three consecutive
   years.
   3. The Commission shall keep under review the status of ratification and effective
   implementation of conventions under Annex III. Prior to the expiry of the application of this
   regulation, the Commission will present a report concerning the status of ratification of such
   conventions, including recommendations on whether the ratification and effective
   implementation of such conventions should be required in order to benefit from the future
   granting of the special incentive arrangement for sustainable development and good
   governance.
                                               Article 10
   1. The special incentive arrangement for sustainable development and good governance shall
   be granted if the following conditions are met :
   (a)      a country or territory listed in Annex I made a request to that effect within three
            months after the date of publication of this Regulation, and
   (b)      an examination of the request shows that the requesting country fulfils the conditions
            laid down in Article 9(1) and (2).
   2. The requesting country shall submit its request to the Commission in writing and shall
   provide comprehensive information concerning ratification of the conventions referred to in
   Annex III, the legislation and measures to effectively implement the provisions of the
   conventions and its commitment to accept and fully comply with the monitoring and review
   mechanism envisaged in the relevant conventions and related instruments.
                                               Article 11
   1. Where the Commission receives a request accompanied by the information referred to in
   Article 10(2), the Commission shall examine the request. The examination shall take into
   account the findings of the relevant international organisations and agencies. It may ask the
   requesting country any questions which it considers relevant and may verify the information
   received with the requesting country or any natural or legal person. The Commission shall
   inform the requesting country of its assessments and invite it to comment.
   2. The Commission shall decide, in accordance with the examination referred to in paragraph
   1 and the procedure referred to in Article 27, whether to grant a requesting country the special
   incentive arrangement for sustainable development and good governance.
   3. The Commission shall notify a requesting country of a decision taken in accordance with
   paragraph 2. Where a country is granted the special incentive arrangement, it shall be
   informed of the date on which that decision enters into force. The Commission shall publish,
   in the Official Journal of the European Union, the list of the beneficiary countries entitled to
   benefit from the special incentive arrangement for sustainable development and good
   governance.
EN                                                 13                                               EN
 ---pagebreak---    4. Where a requesting country is not granted the special incentive arrangement, the
   Commission shall explain the reasons if that country so requests.
   5. The Commission shall conduct all relations with a requesting country concerning the
   request in close coordination with the committee indicated in Article 26.
                                             SECTION 3
               SPECIAL ARRANGEMENT FOR LEAST DEVELOPED COUNTRIES
                                              Article 12
   1. Without prejudice to paragraphs 2 to 4, Common Customs Tariff duties on all products of
   Chapters 1 to 97 of the Harmonized System except those of Chapter 93 thereof, originating in
   a country that according to Annex I benefits from the special arrangement for least developed
   countries, shall be entirely suspended.
   2. Common Customs Tariff duties on the products of tariff heading 1006 shall be reduced by
   20 % on 1 September 2006, by 50 % on 1 September 2007 and by 80 % on 1 September 2008.
   They shall be entirely suspended as from 1 September 2009.
   3. Common Customs Tariff duties on the products of tariff heading 1701 shall be reduced by
   20 % on 1 July 2006, by 50 % on 1 July 2007 and by 80 % on 1 July 2008. They shall be
   entirely suspended as from 1 July 2009.
   4. Until Common Customs Tariff duties are entirely suspended in accordance with paragraphs
   2 and 3, a global tariff quota at zero duty shall be opened for every marketing year for
   products of tariff heading 1006 and subheading 1701 11 10 respectively, originating in the
   countries benefiting from this special arrangement. The initial tariff quotas for the marketing
   year 2001/2002 shall be equal to 2 517 tonnes, husked rice equivalent, for products of tariff
   heading 1006, and 74 185 tonnes, white sugar equivalent, for products of subheading
   1701 11 10. For each of the following marketing years, the quotas shall be increased by 15 %
   over the quotas of the previous marketing year.
   5. The Commission shall adopt detailed rules governing the opening and administration of the
   quotas referred to in paragraph 4, in accordance with the procedure referred to in Article 28.
   In opening and administrating these quotas, the Commission shall be assisted by the
   management committees for the relevant common market organisations.
   6. When a country is excluded by the United Nations from the list of the least developed
   countries, it is withdrawn from the list of the beneficiaries of this arrangement. The removal
   of a country from the arrangement and the establishment of a transitional period shall be
   decided by the Commission, in accordance with the procedure referred to in Article 27.
EN                                                14                                               EN
 ---pagebreak---                                                SECTION 4
                                        COMMON PROVISIONS
                                                 Article 13
   1. The tariff preferences referred to in Articles 7 and 8 shall be removed in respect of products
   originating in a beneficiary country, of a section, when the average of Community imports
   from that country of products included in the section concerned and covered by the
   arrangement enjoyed by that country exceeds 15 % of Community imports of the same
   products from all countries and territories listed in Annex I. over three consecutive years, on
   the basis of the most recent data available on 1st September 2004. For section 11 the threshold
   is 12,5 %.
   2. The sections removed in accordance with paragraph 1 are listed in Annex I, column C.
   3. The removal of sections from this scheme shall apply on entry into force of this Regulation
   until 31 December 2008.
   4. The Commission shall notify a beneficiary country of the removal of a section.
   5. Paragraph 1 does not apply to a beneficiary country for any section which represents more
   than 50 % of all GSP-covered imports to the Community originating from the country in
   question.
   6. The statistical source used for the purpose of this article are the COMEXT statistics.
                                                 Article 14
   1. Where the rate of an ad valorem duty reduced in accordance with the provisions of this
   Title is 1 % or less, that duty shall be entirely suspended.
   2. Where the rate of a specific duty reduced in accordance with the provisions of this Title is
   EUR 2 or less per individual euro amount, that duty shall be entirely suspended.
   3. Subject to paragraphs 1 and 2, the final rate of preferential duty calculated in accordance
   with this Regulation shall be rounded down to the first decimal place.
EN                                                   15                                              EN
 ---pagebreak---                                              TITLE III
        TEMPORARY WITHDRAWAL AND SAFEGUARD PROVISIONS
                                               Article 15
   1. The preferential arrangements provided for in this Regulation may be temporarily
   withdrawn, in respect of all or of certain products, originating in a beneficiary country, for
   any of the following reasons:
   (a)      serious and systematic violations of principles laid down in the conventions listed in
            Annex III;
   (b)      export of goods made by prison labour;
   (c)      serious shortcomings in customs controls on export or transit of drugs (illicit
            substances or precursors), or failure to comply with international conventions on
            money laundering;
   (d)      fraud, irregularities or systematic failure to comply or to ensure compliance with the
            rules of origin of products and the procedures related hereto, and to provide the
            administrative cooperation as required for the implementation and the control of the
            respect of the arrangements referred to in Article 1(2);
   (e)      serious and systematic unfair trading practices which have an adverse effect to the
            Community industry, including those which are prohibited or actionable under the
            WTO Agreements, provided that a determination to that effect has been made
            previously by the competent WTO body and the unfair practise has not been
            addressed;
   (e) bis  serious and systematic unfair trading practices not covered under (e) but which have
            adverse effects to the Community interest and can not be addressed under (e) or
            Article 20;
   (f)      serious and systematic infringements of the objectives of regional fishery
            organizations or arrangements to which the Community is a Member concerning the
            conservation and management of fishery resources;
   2. The administrative cooperation referred to in paragraph 1(d) requires, inter alia that a
   beneficiary country:
   (a)      communicates to the Commission and updates the information necessary for the
            implementation of the rules of origin and the control of respect thereof;
   (b)      assists the Community by carrying out, on request of the customs authorities of
            Member States, subsequent verification of origin and communicates its results in
            time;
EN                                                 16                                              EN
 ---pagebreak---    (c)       assists the Community by allowing the Commission, in coordination and close
             cooperation with the competent authorities of the Member States, to conduct
             Community administrative and investigative cooperation missions in that country, in
             order to verify the authenticity of documents or the accuracy of information relevant
             for granting the benefit of the arrangements referred to in Article 1(2);
   (d)       carries out or arranges for appropriate inquiries to identify and prevent contravention
             of the rules of origin;
   (e)       complies or ensures compliance with the rules of origin in respect of regional
             cumulation, within the meaning of Regulation No 2454/93, if the country benefits
             therefrom.
   3. Without prejudice to paragraph 1, the special incentive arrangement referred to in Title II
   may be temporarily withdrawn, in respect of all or certain products included in this
   arrangement, originating in a beneficiary country, in particular if the national legislation no
   longer incorporates the ratified conventions referred to in Annex III or if that legislation is not
   effectively implemented.
   4. The preferential arrangements provided for in this Regulation shall not be withdrawn
   pursuant to paragraph 1(e) in respect of products which are subject to anti-dumping or
   countervailing measures under Regulations (EC) No 384/96 or (EC) No 2026/97, for the
   reasons justifying those measures.
                                                Article 16
   1. Where the Commission or a Member State receives information that may justify temporary
   withdrawal and where the Commission considers that there are sufficient grounds for an
   investigation, the Commission shall inform the Committee.
   2. The Commission may decide, in accordance with the procedure referred to in Article 28, to
   initiate an investigation.
                                                Article 17
   1. Where the Commission decides to initiate an investigation, it shall publish a notice in the
   Official Journal of the European Union announcing the investigation, and notify the
   beneficiary country concerned thereof. The notice shall provide a summary of the information
   received and state that any useful information may be sent to the Commission. It shall specify
   the period within which interested parties may make their views known in writing.
   2. The Commission shall provide the beneficiary country concerned with every opportunity to
   cooperate in the investigation.
   3. The Commission shall seek all information it considers necessary and may verify the
   information received with economic operators and the beneficiary country concerned. The
   available assessments, comments, decisions, recommendations and conclusions of the various
   supervisory bodies of the UN, the ILO and other competent international organizations, shall
   serve as the point of departure for the investigation as to whether temporary withdrawal is
   justified for the reason referred to in point (a) of Article 15(1).
EN                                                   17                                                EN
 ---pagebreak---    4. The Commission may be assisted by officials of the Member State on whose territory
   verification might be sought, if that Member State so requests.
   5. Where information requested by the Commission is not provided within a reasonable
   period or the investigation is significantly impeded, findings may be made on the basis of the
   facts available.
   6. The investigation should be completed within a year. The Commission may extend this
   period, in accordance with the procedure referred to in Article 28.
                                                 Article 18
   1. The Commission shall submit a report on its findings to the Committee.
   2. Where the Commission considers that the findings do not justify temporary withdrawal, it
   shall decide, in accordance with the procedure referred to in Article 28, to terminate the
   investigation. In that case, the Commission shall publish a notice in the Official Journal of the
   Official Journal of the European Union, announcing the termination of the investigation and
   setting out its main conclusions.
   3. Where the Commission considers that the findings justify temporary withdrawal for the
   reason referred to in point (a) of Article 15(1), it shall decide, in accordance with the
   procedure laid down in Article 28, to monitor and evaluate the situation in the beneficiary
   country concerned for a period of six months. The Commission shall notify this decision to
   the beneficiary country concerned and shall publish a notice in the Official Journal of the
   European Union, announcing that it intends to submit a proposal to the Council for temporary
   withdrawal, unless, before the end of the period, the beneficiary country concerned made a
   commitment to take the measures necessary to conform, in a reasonable period of time, with
   the conventions referred to in Annex III.
   4. Where the Commission considers temporary withdrawal to be necessary, it shall submit an
   appropriate proposal to the Council, which shall decide within 30 days by a qualified
   majority.
   5. Where at the end of the period referred to in paragraph 3, the Commission finds that the
   beneficiary country concerned has not made the required commitment, and where it considers
   temporary withdrawal necessary, it shall submit an appropriate proposal to the Council, which
   shall decide within 30 days by a qualified majority. Where the Council decides on temporary
   withdrawal, such decision shall enter into force six months after it was taken, unless it is
   decided before then that the reasons justifying it no longer prevail.
                                                 Article 19
   1. After informing the Committee, the Commission may suspend the preferential
   arrangements provided for in this Regulation in respect of all or of certain products,
   originating in a beneficiary country:
   (a)       where it considers that there is sufficient evidence that temporary withdrawal is
             justified for the reasons referred to in point (d) of Article 15(1), or
EN                                                   18                                              EN
 ---pagebreak---    (b)       where imports under these arrangements massively exceed the usual levels of
             production and export capacity of that country.
   2. Member States shall communicate to the Commission all relevant information that may
   justify suspension of preferences.
   3. Where the Commission considers that there is sufficient evidence that the conditions for
   suspension are met, it shall take all appropriate measures as quickly as possible.
   4. The period of suspension shall be limited to three months and may be renewed once. The
   Commission may extend this period, in accordance with the procedure referred to in Article
   28.
                                               Article 20
   1. Where a product originating in a beneficiary country is imported on terms which cause, or
   threaten to cause, serious difficulties to a Community producer of like or directly competing
   products, normal Common Customs Tariff duties on that product may be reintroduced at any
   time at the request of a Member State or on the Commission's initiative.
   2. Where the Commission decides to initiate an investigation, it shall publish a notice in the
   Official Journal of the European Union announcing the investigation. The notice shall state
   that any useful information should be sent to the Commission. It shall specify the period
   within which interested parties may make their views known in writing.
   3. In examining whether there are serious difficulties, the Commission shall take account,
   inter alia, of the following factors concerning Community producers where the information is
   available:
   –         market share,
   –         production,
   –         stocks,
   –         production capacity,
   –         bankruptcies,
   –         profitability,
   –         capacity utilisation,
   –         employment,
   –         imports,
   –         prices.
   4. The Commission shall take a decision within 30 working days after consulting the
   Committee.
EN                                                 19                                             EN
 ---pagebreak---    5. Where exceptional circumstances requiring immediate action make an investigation
   impossible, the Commission may, after informing the Committee, take any preventive
   measure which is strictly necessary.
                                              Article 21
   Where imports of products included in Annex I to the EC Treaty cause, or threaten to cause,
   serious disturbance to Community markets or their regulatory mechanisms, the Commission
   may suspend the preferential arrangements in respect of the products concerned after
   informing the management committee for the relevant common market organisation.
                                              Article 22
   1. The Commission shall inform the beneficiary country concerned of any decision taken in
   accordance with Articles 19, 20 or 21 before it becomes effective. The Commission shall also
   notify the Council and the Member States thereof.
   2. Any Member State may refer a decision taken in accordance with Articles 19, 20 or 21 to
   the Council within ten days. The Council, acting by qualified majority, may adopt a different
   decision within 30 days.
                                              Article 23
   Nothing in this Title shall affect the application of safeguard clauses adopted as part of the
   common agricultural policy under Article 37 of the Treaty, or as part of the common trade
   policy under Article 133 of the Treaty, or any other safeguard clauses which may be applied.
                                            TITLE IV
                                PROCEDURAL PROVISIONS
                                              Article 24
   The Commission shall adopt changes to the Annexes of this Regulation made necessary by:
   (a)      amendments to the Combined Nomenclature or
   (b)      by changes in the international status or classification of countries or territories in
            accordance with the procedure referred to in Article 28;
   (c)      a commercial agreement with a beneficiary country providing at least an equivalent
            preferential access to the market of the Community as the arrangement referred to in
            Section 1 of Title II.
EN                                                20                                                EN
 ---pagebreak---                                                    Article 25
   1. Within six weeks of the end of each quarter, Member States shall send the Statistical Office
   of the European Communities their statistical data on products admitted for free circulation
   during that quarter under the tariff preferences provided for in this Regulation. These data,
   supplied by reference to Combined Nomenclature codes and, where applicable, TARIC codes,
   shall show, by country of origin, values, quantities and any supplementary units required in
   accordance with the definitions in Regulation (EC) No 1172/9513 and Commission Regulation
   (EC) No 1917/200014.
   2. In accordance with Article 308(d) of Commission Regulation (EEC) 2454/93, Member
   States shall forward to the Commission, at its request, details of the quantities of products
   admitted for free circulation under the tariff preferences provided for in this Regulation,
   during the previous months.
   3. The Commission shall, in close cooperation with Member States, monitor the imports of
   products of CN code 0803 00 19, of tariff headings 0603, 1006, and 1701 and of CN codes
   1604 14 11, 1604 14 18, 1604 14 90, 1604 19 39 and 1604 20 70 in order to determine
   whether the conditions referred to in Articles 20 and 21 are fulfilled.
                                                   Article 26
   1. In implementing this Regulation, the Commission shall be assisted by a Generalised
   Preferences Committee, composed of representatives of the Member States and chaired by the
   representative of the Commission.
   2. The Committee may examine any matter relating to the application of this Regulation
   raised by the Commission or at the request of a Member State.
   3. The Committee shall examine the effects of the Community scheme of generalised tariff
   preferences, on the basis of a report from the Commission covering the period 1 July 2005 to
   31 December 2008. This report shall cover all preferential arrangements referred to in Article
   1(2).
   4. The Committee shall adopt its rules of procedure.
                                                   Article 27
   1. Where reference is made to this Article, Articles 5 and 7 of Decision 1999/468/EC shall
   apply.
   2. The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at 3 months.
   13
           OJ L 118, 25.5.1995, p. 10. Regulation as last amended by Regulation (EC) No 1882/2003 (OJ L 284,
           31.10.2003, p. 1).
   14
           OJ L 229, 9.9.2000, p. 14. Regulation as amended by Regulation (EC) No 1669/2001 (OJ L 224,
           21.8.2001, p. 3).
EN                                                      21                                                   EN
 ---pagebreak---                                                    Article 28
   Where reference is made to this Article, Articles 3 and 7 of Decision 1999/468/EC shall
   apply.
                                                  TITLE V
                                        FINAL PROVISIONS
                                                   Article 29
   Council Regulation (EC) No 552/97 of 24 March 1997 temporarily withdrawing access to
   generalised tariff preferences from the Union of Myanmar15, which refers to Council
   Regulations (EC) No 3281/9416 and (EC) No 1256/9617, shall be considered to refer to the
   corresponding provisions of this Regulation.
                                                   Article 30
   1. This Regulation shall enter into force on 1 July 2005. Council Regulation (EC) No
   2501/2001 shall be repealed by 30 June 2005.
   2. Articles 3 (2) and 8 to 11 shall apply from the date of publication of this Regulation in the
   Official Journal of the European Union.
   3. This Regulation shall apply until 31 December 2008. This date shall not apply to the
   special arrangements for least developed countries, nor, to the extent that they are applied in
   conjunction with those arrangements, to any other provisions of this Regulation.
   This Regulation shall be binding in its entirety and directly applicable in all Member States.
   Done at Brussels,
                                                     For the Council
                                                     The President
   15
           OJ L 85, 27.3.1997, p. 8.
   16
           OJ L 348, 31.12.1994, p. 1. Regulation as last amended by Regulation (EC) No 2820/198 (OJ L 357,
           30.12.1998, p. 1).
   17
           OJ L 160, 29.6.1996, p. 1. Regulation as amended by Regulation (EC) No 2448/96 (OJ L 333,
           21.12.1996, p. 12).
EN                                                     22                                                   EN
 ---pagebreak---                                                     ANNEX I
    BENEFICIARY COUNTRIES18 AND TERRITORIES OF THE COMMUNITY'S SCHEME
                              OF GENERALISED TARIFF PREFERENCES
   Column A     code according to the nomenclature of countries and territories for the
                external trade statistics of the Community
   Column B     name of country
   Column C     sections in respect of which tariff preferences have been removed for the
                beneficiary country concerned (Article13)
   Column D     countries included in the special arrangements for least developed
                countries (Article 12)
      A            B                                                     C                                       D
   AE    United Arab
         Emirates
   AF    Afghanistan                                                                                             X
   AG    Antigua and
         Barbuda
   AI    Anguilla
   AM    Armenia
   AN    Netherlands
         Antilles
   AO    Angola                                                                                                  X
   AQ    Antarctica
   AR    Argentina
   AS    American Samoa
   AW    Aruba
   AZ    Azerbaijan
   BB    Barbados
   BD    Bangladesh                                                                                              X
   BF    Burkina Faso                                                                                            X
   BH    Bahrain
   BI    Burundi                                                                                                 X
   BJ    Benin                                                                                                   X
   BM    Bermuda
   BN    Brunei
         Darussalam
   BO    Bolivia
   BR    Brazil                    S-4 Prepared foodstuffs ; beverages, spirits and vinegar ; tobacco and
                                   manufactured tobacco substitutes.
                                   S-9 Wood and articles of wood ; wood charcoal ; cork and articles of cork ;
                                   manufactures of straw, of esparto or of other plaiting materials ; basketware
                                   and wickerwork.
   18
         The list may include countries which are temporarily suspended from the EU GSP or have not complied
         with the administrative cooperation requirements, which are a pre-condition for goods to be granted the
         benefit of tariff preferences. If in doubt, contact the Commission or the competent authorities of the
         country.
EN                                                        23                                                       EN
 ---pagebreak---    BS Bahamas
   BT Bhutan                                                                                           X
   BV Bouvet Island
   BW Botswana
   BY Belarus
   BZ Belize
   CC Cocos Islands (or
      Keeling Islands)
   CD Congo,
      Democratic                                                                                       X
      Republic of
   CF Central African
                                                                                                       X
      Republic
   CG Congo
   CI Côte d'Ivoire
   CK Cook Islands
   CL Chile
   CM Cameroon
   CN China, People's   S-6 Products of the chemical or allied industries.
                        S-7 Plastics and articles thereof ; rubber ans articles thereof.
      Republic of       S-8 Raw hides and skins, leather, furskins and articles thereof; saddlery and
                        harness; travel goods, handbags and similar containers; articles of animal gut
                        (other than silkworm gut).
                        S-9 Wood and articles of wood ; wood charcoal ; cork and articles of cork ;
                        manufactures of straw, of esparto or of other plaiting materials ; basketware
                        and wickerwork.
                        S-10 Pulp of wood or of other fibrous cellulosic material ; recovered (waste
                        and scarp) paper or paperboard ; paper and paperboard and articles thereof.
                        S-11 Textiles and textile articles.
                        S-12 Footwear, headgear, umbrellas, sun umbrellas, walking sticks, seat-
                        sticks, whips, riding-crops and parts thereof ; prepared feathers and articles
                        made therewith ; artificial flowers ; articles of human hair.
                        S-13 Articles of stone, plaster, cement,asbestos, mica or similar materials ;
                        ceramic products ; glass and glassware..
                        S-14 Natural or cultured pearls, precious or semi-precious stones, precious
                        metals, metals clad with precious metal, and articles thereof ; imitation
                        jewellery ; coins.
                        S-15 Base metals and articles of base metal.
                        S-16 Machinery and mechanical appliances; electrical equipment; parts
                        thereof; sound recorders and reproducers, television image and sound
                        recroders and reproducers, and parts and accessories of such articles.
                        S-17 Vehicles, aircraft,vessels and assiciated transport equipment.
                        S-18 Optical, photographic, cinematographic, measuring, checking, precision,
                        medical or surgical instruments and apparatus ; clocks and watches ; musical
                        instruments ; parts and accessories thereof.
                        S-20 Miscellaneous manufactured articles.
   CO Colombia
   CR Costa Rica
   CU Cuba
   CV Cape Verde                                                                                       X
   CX Christmas Islands
   DJ Djibouti                                                                                         X
   DM Dominica
   DO Dominican
      Republic
   DZ Algeria           S-5 Mineral products.
   EC Ecuador
   EG Egypt
EN                                               24                                                      EN
 ---pagebreak---    ER Eritrea                                                                                          X
   ET Ethiopia                                                                                         X
   FJ Fiji
   FK Falklands Islands
   FM Micronesia,
      Federated States
      of
   GA Gabon
   GD Grenada
   GE Georgia
   GH Ghana
   GI Gibraltar
   GL Greenland
   GM Gambia                                                                                           X
   GN Guinea                                                                                           X
   GQ Equatorial Guinea                                                                                X
   GS South Georgia and
      South Sandwich
      Islands
   GT Guatemala
   GU Guam
   GW Guinea-Bissau                                                                                    X
   GY Guyana
   HM Heard Island and
      McDonald Islands
   HN Honduras
   HT Haiti                                                                                            X
   ID Indonesia          S-3 Animal or vegetable fats and oils and their cleavage products ; prepared
                         edible fats ; animal or vegetable waxes.
                         S-9 Wood and articles of wood ; wood charcoal ; cork and articles of cork ;
                         manufactures of straw, of esparto or of other plaiting materials ; basketware
                         and wickerwork.
   IN India              S-14 Natural or cultured pearls, precious or semi-precious stones, precious
                         metals, metals clad with precious metal, and articles thereof ; imitation
                         jewellery ; coins.
   IO British Indian
      Ocean Territory
   IQ Iraq
   IR Iran, Islamic
      Republic of
   JM Jamaica
   JO Jordan
   KE Kenya
   KG Kyrgyzstan
   KH Cambodia                                                                                         X
   KI Kiribati                                                                                         X
   KM Comoros                                                                                          X
   KN St Kitts and Nevis
   KW Kuwait
   KY Cayman Islands
   KZ Kazakhstan
EN                                                25                                                     EN
 ---pagebreak---    LA Lao People's
      Democratic                                                                                    X
      Republic
   LB Lebanon
   LC St Lucia
   LK Sri Lanka
   LR Liberia                                                                                       X
   LS Lesotho                                                                                       X
   LY Libyan Arab
      Jamahiriya
   MA Morocco
   MD Moldova,
      Republic of
   MG Madagascar                                                                                    X
   MH Marshall Islands
   ML Mali                                                                                          X
   MM Myanmar                                                                                       X
   MN Mongolia
   MO Macao
   MP Northern Mariana
      Islands
   MR Mauritania                                                                                    X
   MS Montserrat
   MU Mauritius
   MV Maldives                                                                                      X
   MW Malawi                                                                                        X
   MX Mexico
   MY Malaysia         S-3 Animal or vegetable fats and oils and their cleavage products ; prepared
                       edible fats ; animal or vegetable waxes.
   MZ Mozambique                                                                                    X
   NA Namibia
   NC New Caledonia
   NE Niger                                                                                         X
   NF Norfolk Island
   NG Nigeria
   NI Nicaragua
   NP Nepal                                                                                         X
   NR Nauru
   NU Niue Island
   OM Oman
   PA Panama
   PE Peru
   PF French Polynesia
   PG Papua New
      Guinea
   PH Philippines
   PK Pakistan
   PM St Pierre and
      Miquelon
   PN Pitcairn
EN                                              26                                                    EN
 ---pagebreak---    PW Palau
   PY Paraguay
   QA Qatar
   RU Russian
      Federation         S-15 Base metals and articles of base metal.
   RW Rwanda                                                                                         X
   SA Saudi Arabia
   SB Solomon Islands                                                                                X
   SC Seychelles
   SD Sudan                                                                                          X
   SH Santa Helena
   SL Sierra Leone                                                                                   X
   SN Senegal                                                                                        X
   SO Somalia                                                                                        X
   SR Suriname
   ST São Tomé and
                                                                                                     X
      Príncipe
   SV El Salvador
   SY Syrian Arab
      Republic
   SZ Swaziland
   TC Turks and Caicos
      Islands
   TD Chad                                                                                           X
   TF French Southern
      territories
   TG Togo                                                                                           X
   TH Thailand           S-14 Natural or cultured pearls, precious or semi-precious stones, precious
                         metals, metals clad with precious metal, and articles thereof ; imitation
                         jewellery ; coins.
                         S-17 Vehicles, aircraft,vessels and assiciated transport equipment.
   TJ Tajikistan
   TK Tokelau
   TL Timor-Leste                                                                                    X
   TM Turkmenistan
   TN Tunisia
   TO Tonga
   TT Trinidad and
      Tobago
   TV Tuvalu                                                                                         X
   TZ Tanzania (United
                                                                                                     X
      Republic of)
   UA Ukraine
   UG Uganda                                                                                         X
   UM United States
      Minor outlying
      islands
   UY Uruguay
   UZ Uzbekistan
   VC St Vincent and the
      Grenadines
EN                                                27                                                   EN
 ---pagebreak---    VE Venezuela
   VG Virgin Islands
      (British)
   VI Virgin Islands
      (USA)
   VN Viet Nam          S-12 Footwear, headgear, umbrellas, sun umbrellas, walking sticks, seat-
                        sticks, whips, riding-crops and parts thereof ; prepared feathers and articles
                        made therewith ; artificial flowers ; articles of human hair.
   VU Vanuatu                                                                                          X
   WF Wallis and Futuna
   WS Samoa                                                                                            X
   YE Yemen                                                                                            X
   YT Mayotte
   ZA South Africa      S-17 Vehicles, aircraft,vessels and assiciated transport equipment.
   ZM Zambia                                                                                           X
   ZW Zimbabwe
EN                                               28                                                      EN
 ---pagebreak---                                                 ANNEX II
            LIST OF PRODUCTS INCLUDED IN THE ARRANGEMENTS REFERRED
                                  TO IN ARTICLE 1(2)(A) AND (B)
   Notwithstanding the rules for the interpretation of the Combined Nomenclature, the
   description of products is to be considered as indicative, the tariff preferences being
   determined by the CN codes. Where ex CN codes are indicated, the tariff preferences are to
   be determined by the CN code and the description together. Entry of products marked with an
   asterisk is subject to the conditions laid down in the relevant Community provisions.
   Products included in the general arrangement (Article 7) and in the special incentive
   arrangement for sustainable development and good governance (Article 8). These products
   are listed either NS (non-sensitive in the meaning of Article 7(1)) or S (sensitive in the
   meaning of Article 7(2)). For reasons of simplification, products are listed in groups. These
   may include products for which Common Customs Tariff duties are exempted or suspended.
       CN Code                                    Description                         Sensitivity/
                                                                                          Non
                                                                                       Sensitivity
   0101 10 90          Live asses and other                                          S
                       Live horses other than pure-bred breeding animals:
   0101 90 19          Other than for slaughter                                      S
   0101 90 30          Live asses                                                    S
   0101 90 90          Live mules and hinnies                                        S
   0104 20 10          Live pure-bred breeding goats *                               S
   0106 19 10          Live domestic rabbits                                         S
   0106 39 10          Live pigeons                                                  S
   0205 00             Meat of horses, asses, mules or hinnies, fresh, chilled or    S
                       frozen
   0206 80 91          Edible offal of horses, asses, mules or hinnies, fresh or     S
                       chilled, other than for the manufacture of pharmaceutical
                       products
EN                                                  29                                             EN
 ---pagebreak---    0206 90 91          Edible offal of horses, asses, mules or hinnies, frozen, other          S
                       than for the manufacture of pharmaceutical products
                       Livers, frozen:
   0207 14 91          Of fowls of the species (Gallus domesticus)                             S
   0207 27 91          Of turkeys                                                              S
   0207 36 89          Of ducks, geese or guinea fowls                                         S
                       Other meat and edible meat offal, fresh, chilled or frozen:
   0208 10             Of rabbits or hares                                                     S
   0208 20 00          Frogs' legs                                                             NS
   0208 30 00          Of primates                                                             S
   0208 40 00          Of whales, dolphins and porpoises (mammals of the order                 S
                       Cetacea); of manatees and dugongs (mammals of the order
                       Sirenia)
   0208 50             Of reptiles (including snakes and turtles)                              S
   ex 0208 90          Other, excluding products of 0208 90 55                                 S
                       Meat other than of swine and bovine animals, including
                       edible flours and meals of meat or meat offal:
   0210 99 10          Of horses, salted, in brine or dried                                    S
   0210 99 59          Offal of bovine animals other than thick skirt and thin skirt           S
   0210 99 60          Offal of sheep and goats                                                S
   0210 99 80          Offal other than poultry liver                                          S
   Chapter 319         FISH AND CRUSTACEANS, MOLLUSCS AND OTHER                                S
                       AQUATIC INVERTEBRATES
   0301 10 90          Ornamental saltwater fish                                               NS
   19
          For products of CN code 0306 13, the duty shall be 3,6% under the special incentive arrangement for
          sustainable development and good governance.
EN                                                   30                                                       EN
 ---pagebreak---    0403 10 51          Yoghurt, flavoured or containing added fruit, nuts or cocoa     S
   0403 10 53                                                                          S
   0403 10 59                                                                          S
   0403 10 91                                                                          S
   0403 10 93                                                                          S
   0403 10 99                                                                          S
   0403 90 71          Buttermilk, curdled milk and cream; kephir and other            S
                       fermented or acidified milk and cream, flavoured or
   0403 90 73          containing added fruit, nuts or cocoa                           S
   0403 90 79                                                                          S
   0403 90 91                                                                          S
   0403 90 93                                                                          S
   0403 90 99                                                                          S
   ex 0405 20          Dairy spreads, excluding products of 0405 20 90                 S
   0407 00 90          Birds' eggs, in shell, fresh, preserved or cooked other than of S
                       poultry
   0409 00 00          Natural honey20                                                 S
   0410 00 00          Edible products of animal origin, not elsewhere specified or    S
                       included
   0509 00 90          Natural sponges of animal origin, other then raw                S
   Chapter 6           LIVE TREES AND OTHER PLANTS; BULBS, ROOTS,                      S
                       AND THE LIKE; CUT FLOWERS AND ORNAMENTAL
                       FOLIAGE
   0604 91 41          Conifer branches of Nordmann's firs (Abies nordmanniana         NS
                       (Stev.) Spach) and of noble firs (Abies procera Rehd.)
   0701                Potatoes, fresh or chilled                                      S
   0703 10             Onions and shallots, fresh or chilled                           S
   0703 90 00          Leeks and other alliaceous vegetables, fresh or chilled         S
   20
          For this products, the arrangement referred to in Section 1 does not apply.
EN                                                       31                               EN
 ---pagebreak---    0704          Cabbages, cauliflowers, kohlrabi, kale and similar edible         S
                 brassicas , fresh or chilled
   0705          Lettuce (Lactuca sativa) and chicory (Cichorium spp.), fresh      S
                 or chilled
   0706          Carrots, turnips, salad beetroot, salsify, celeriac, radishes and S
                 similar edible roots, fresh or chilled
   ex 0707 00 05 Cucumber, fresh or chilled, from 16 May to 31 October             S
   0708          Leguminous vegetables, shelled or unshelled, fresh or chilled     S
                 Other vegetables, fresh or chilled:
   ex 0709 10 00 Globe artichokes, from 1 July to 31 October                       S
   0709 20 00    Asparagus                                                         S
   0709 30 00    Aubergines (egg-plants)                                           S
   0709 40 00    Celery other than celeriac                                        S
   0709 51 00    Mushrooms                                                         S
   0709 59                                                                         S
   0709 59 10    Chanterelles                                                      S
   0709 60 10    Sweet peppers                                                     S
   0709 60 99    Fruits of the genus Capsicum or of the genus Pimenta, other       S
                 than sweet peppers
   0709 70 00    Spinach, New Zealand spinach and orache spinach (garden           S
                 spinach)
   0709 90 10    Salad vegetables, other than lettuce (Lactuca sativa) and         S
                 chicory (Cichorium spp.)
   0709 90 20    Chard (or white beet) and cardoons                                S
   0709 90 31    Olives, for uses other than the production of oil *               S
   0709 90 40    Capers                                                            S
   0709 90 50    Fennel                                                            S
   0709 90 70    Courgettes                                                        S
   0709 90 90    Other                                                             S
EN                                            32                                     EN
 ---pagebreak---    ex 0710             Vegetables (uncooked or cooked by steaming or boiling in                   S
                       water), frozen21
   ex 0711             Vegetables provisionally preserved (for example, by sulphur                S
                       dioxide gas, in brine, in sulphur water or in other
                       preservative solutions), but unsuitable in that state for
                       immediate consumption, excluding products of 0711 20 90
   ex 0712             Dried vegetables, whole, cut, sliced, broken or in powder,                 S
                       but not further prepared, excluding olives and products of
                       0712 90 19
   0713                Dried leguminous vegetables, shelled, whether or not                       S
                       skinned or split:
   0714 20 10          Sweet potatoes, fresh, whole, intended for human                           NS
                       consumption*
   0714 20 90          Sweet potatoes other than fresh, whole, intended for human                 S
                       production
   0714 90 90          Jerusalem artichokes and similar roots and tubers with high                NS
                       inulin content; sago pith
                       Other nuts, fresh or dried, whether or not shelled or peeled:
   0802 11 90          Almonds in shell, other than bitter                                        S
   0802 12 90          Almonds shelled, other than bitter                                         S
   0802 21 00          Hazelnuts or filberts (Corylus spp.), in shell or shelled                  S
   0802 22 00
   0802 31 00          Walnuts in shell                                                           S
   0802 32 00          Walnuts shelled                                                            S
   0802 40 00          Chestnuts (Castanea spp.)                                                  S
   0802 50 00          Pistachios                                                                 NS
   0802 90 50          Pine nuts                                                                  NS
   0802 90 60          Macadamia nuts                                                             NS
   0802 90 85          Other                                                                      NS
   0803 00 11          Plantains, fresh                                                           S
   21
          For the products of CN codes 0710 80 85, the arrangement referred to in Section 1 does not apply.
EN                                                     33                                                   EN
 ---pagebreak---    0803 00 90    Bananas, including plantains, dried                          S
   0804 10 00    Dates, fresh or dried                                        S
   0804 20       Figs, fresh or dried                                         S
   0804 30 00    Pineapples, fresh or dried                                   S
   0804 40 00    Avocados, fresh or dried                                     S
                 Citrus fruit, fresh or dried:
   ex 0805 20    Mandarins (including tangerines and satsumas); clementines,  S
                 wilkings and similar citrus hybrids: from 1 March to 31
                 October
   0805 40 00    Grapefruit                                                   NS
   0805 50 90    Limes (Citrus aurantifolia, Citrus latifolia)                S
   0805 90 00    Other                                                        S
   ex 0806 10 10 Table grapes, fresh, from 1 January to 20 July and from 21   S
                 November to 31 December, other than of the variety
                 Emperor (Vitis viniferac.v.) from 1 to 31 December
   0806 10 90    Other grapes, fresh                                          S
   ex 0806 20    Dried grapes, excluding products of 0806 20 92               S
   0807 11 00    Watermelons, fresh                                           S
   0807 19 00    Other melons, fresh                                          S
   0808 10 10    Fresh cider apples, in bulk, from 16 September to 15         S
                 December
   0808 20 10    Perry pears, fresh, in bulk, from 1 August to 31 December    S
   ex 0808 20 50 Other pears, fresh, from 1 May to 30 June                    S
   0808 20 90    Fresh quinces                                                S
   ex 0809 10 00 Apricots, fresh, from 1 January to 31 May and from 1 August S
                 to 31 December
   0809 20 05    Sour cherries (Prunus cerasus), fresh                        S
   ex 0809 20 95 Cherries, other than sour (Prunus cerasus), fresh, from 1    S
                 January to 20 May and from 11 August to 31 December
   ex 0809 30    Peaches, including nectarines, from 1 January to 10 June and S
                 from 1 October to 31 December
EN                                             34                                EN
 ---pagebreak---    ex 0809 40 05       Plums, from 1 January to 10 June and from 1 October to 31                  S
                       December
   0809 40 90          Sloes                                                                      S
   0810                Other fruit, fresh:
   ex 0810 10 00       Strawberries, from 1 January to 30 April and from 1 August                 S
                       to 31 December
   0810 20             Raspberries, blackberries, mulberries and loganberries                     S
   0810 30             Black-, white- or redcurrants and gooseberries                             S
   0810 40 30          Fruit of the species Vaccinium myrtillus                                   S
   0810 40 50          Fruit of the species Vaccinium macrocarpon and Vaccinium                   S
                       corymbosum
   0810 40 90          Other fruits of the genus Vaccinium                                        S
   0810 50 00          Kiwifruit                                                                  S
   0810 60 00          Durians                                                                    S
   0810 90 95          Other                                                                      S
   0811                Fruit and nuts, uncooked or cooked by steaming or boiling in               S
                       water, frozen, whether or not containing added sugar or other
                       sweetening matter22:
   ex 0812             Fruit and nuts, provisionally preserved (for example, by                   S
                       sulphur dioxide gas, in brine, in sulphur water or in other
                       preservative solutions), but unsuitable in that state for
                       immediate consumption, excluding products of 0812 90 30
   0812 90 30          Papaws (papayas)                                                           NS
                       Fruit, dried, other than that of headings 0801 to 0806;
                       mixtures of nuts or dried fruits of this chapter:
   0813 10 00          Apricots                                                                   S
   0813 20 00          Prunes                                                                     S
   0813 30 00          Apples                                                                     S
   0813 40 10          Peaches, including nectarines                                              S
   22
          For the products of CN code 0811 10 90, the arrangement referred to in Section 1 does not apply.
EN                                                     35                                                  EN
 ---pagebreak---    0813 40 30 Pears, dried                                                   S
   0813 40 50 Papaws (papayas), dried                                        NS
   0813 40 95 Other, dried                                                   NS
              Mixtures of dried fruit, other than of headings 0801 to 0806:
   0813 50 12 Containing papaws, tamarinds, cashew apples, lychees,          S
              jackfruits, sapodillo, plums, passion fruit, carambola and
              potahaya
   0813 50 15 Other                                                          S
   0813 50 19 Containing prunes                                              S
              Mixtures exclusively of dried nuts of headings 0801 and
              0802:
   0813 50 31 Of tropical nuts                                               S
   0813 50 39 Other                                                          S
   0813 50 91 Other mixtures not containing prunes or figs                   S
   0813 50 99 Other                                                          S
   0814 00 00 Peel of citrus fruit or melons (including watermelons), fresh, NS
              frozen, dried or provisionally preserved in brine, in sulphur
              water or in other preservative solutions
   0901 12 00 Coffee, not roasted, decaffeinated                             S
   0901 21 00 Coffee, roasted, not decaffeinated                             S
   0901 22 00 Coffee, roasted, decaffeinated                                 S
   0901 90 90 Coffee substitutes containing coffee                           S
   0902 10 00 Green tea (not fermented) in immediate packings of a content NS
              not exceeding 3 kg
   0904 12 00 Pepper of the genus Piper, crushed or ground                   NS
   0904 20 10 Sweet peppers, dried, neither crushed nor ground               S
   0904 20 90 Crushed or ground                                              NS
   0905 00 00 Vanilla                                                        S
   0907 00 00 Cloves (whole fruit, cloves and stems)                         S
EN                                         36                                   EN
 ---pagebreak---    0910 20 90    Saffron, crushed or ground                                      NS
   0910 40       Thyme, bay leaves                                               S
   0910 91 90    Mixtures of spices, crushed or ground                           S
   0910 99 99    Other spices, crushed or ground, other than mixtures            S
   ex 1008 90 90 Quinoa                                                          S
   1105          Flour, meal, powder, flakes, granules and pellets of potatoes   S
                 Flour, meal and powder:
   1106 10 00    Of the dried leguminous vegetables of heading 0713              S
   1106 30       Of the products of Chapter 8                                    S
   1108 20 00    Inulin                                                          S
   ex Chapter 12 OIL SEEDS AND OLEAGINOUS FRUITS;                                S
                 MISCELLANEOUS GRAINS, SEEDS AND FRUIT;
                 INDUSTRIAL OR MEDICINAL PLANTS; STRAW AND
                 FODDER, excluding products of 1212 91 and 1212 99 20
   1209          Seeds, fruit and spores, of a kind used for sowing:
   1209 21 00    Lucerne (alfalfa) seed                                          NS
   1209 23 80    Other fescue seed                                               NS
   1209 29 50    Lupine seed                                                     NS
   1209 29 80    Other                                                           NS
   1209 30 00    Seeds of herbaceous plants cultivated principally for their     NS
                 flowers
   ex 1209 91    Vegetable seeds other than products of code 1209 91 30          NS
   1209 99 91    Seeds of plants cultivated principally for their flowers, other NS
                 than those of 1209 30
   1211 90 30    Tonquin beans, fresh or dried, whether or not cut, crushed or   NS
                 powdered
   Chapter 13    LAC; GUMS, RESINS AND OTHER VEGETABLE SAPS                      S
                 AND EXTRACTS
   1302 12 00    Vegetable saps and extracts of liquorice                        NS
   1501 00 90    Poultry fat, other than that of heading 0209 or 1503            S
EN                                             37                                   EN
 ---pagebreak---    1502 00 90 Other fats of bovine animals, sheep or goats                        S
   1503 00 19 Lard stearin and oleostearin other than for industrial use          S
   1503 00 90 Other                                                               S
   ex1504     Fats and oils and their fractions, of fish or marine mammals,       S
              whether or not refined, but not chemically modified
   1505 00 10 Wool grease, crude                                                  S
   1507       Soya-bean oil and its fractions, whether or not refined, but        S
              not chemically modified
   1508       Groundnut oil and its fractions, whether or not refined, but        S
              not chemically modified
   1511 10 90 Crude oil, other than for technical or industrial uses other        S
              than the manufacture of foodstuffs for human consumption
   1511 90    Other                                                               S
   1512       Sunflower-seed, safflower or cotton-seed oil and fractions          S
              thereof, whether or not refined, but not chemically modified
   1513       Coconut (copra), palm kernel or babassu oil and fractions           S
              thereof, whether or not refined, but not chemically modified
   1514       Rape, colza or mustard oil and fractions thereof, whether or        S
              not refined, but not chemically modified
   1515       Other fixed vegetable fats and oils (including jojoba oil) and      S
              their fractions, whether or not refined, but not chemically
              modified
   ex 1516    Animal or vegetable fats and oils and their fractions, partly       S
              or wholly hydrogenated, inter-esterified, re-esterified or
              elaidinised, whether or not refined, but not further prepared,
              excluding products of 1516 20 10
   1516 20 10 Hydrogenated castor oil, so called «opal-wax»                       NS
   1517        Margarine; edible mixtures or preparations of animal or            S
              vegetable fats or oils or of fractions of different fats or oils of
              this Chapter, other than edible fats or oils or their fractions of
              heading 1516
EN                                          38                                       EN
 ---pagebreak---    1518 00             Animal or vegetable fats and oils and their fractions, boiled,  S
                       oxidised, dehydrated, sulphurised, blown, polymerised by
                       heat in vacuum or in inert gas or otherwise chemically
                       modified, excluding those of heading 1516; inedible
                       mixtures or preparations of animal or vegetable fats or oils or
                       of fractions of different fats or oils of this chapter, not
                       elsewhere specified or included
   1521 90 99          Beeswax and other insect waxes, other than raw                  S
   1522 00 10          Degras                                                          S
   1522 00 91          Oil foots and dregs; soapstocks                                 S
   1601 00 10          Sausages and similar products, of meat, meat offal or blood:    S
                       food preparations based on liver
                       Other prepared or preserved meat, meat offal or blood:
   1602 20 11          Goose or duck liver                                             S
   1602 20 19                                                                          S
                       Of swine:
   1602 41 90          Ham and cuts thereof, of swine other than domestic swine        S
   1602 42 90          Shoulders and cuts thereof, of swine other than domestic        S
                       swine
   1602 49 90          Other, including mixtures, other than of domestic swine         S
   1602 50 31          Of bovine animals23                                             S
   1602 50 39                                                                          S
   1602 50 80                                                                          S
                       Other, excluding preparations of blood of any animal:
   1602 90 31          Of game or rabbit                                               S
   1602 90 41          Of reindeer                                                     S
   23
          For these products, the arrangement referred to in Section 1 does not apply.
EN                                                      39                               EN
 ---pagebreak---    1602 90 69         Other                                                                     S
   1602 90 72                                                                                   S
   1602 90 74                                                                                   S
   1602 90 76                                                                                   S
   1602 90 78                                                                                   S
   1602 90 98                                                                                   S
   1603 00 10         Extracts and juices of meat, fish or crustaceans, molluscs and            S
                      other aquatic invertebrates, in immediate packings of a net
                      content of 1 kg or less
   1604               Prepared or preserved fish; caviar and caviar substitutes                 S
                      prepared from fish eggs
   1605               Crustaceans, molluscs or other aquatic invertebrates,                     S
                      prepared or preserved
   1702 50 00         Chemically pure fructose                                                  S
   1702 90 10         Chemically pure maltose                                                   S
   170424             Sugar confectionery (including white chocolate), not                      S
                      containing cocoa
   Chapter 18         COCOA AND COCOA PREPARATIONS                                              S
   ex Chapter 19      PREPARATIONS OF CEREALS, FLOUR, STARCH OR                                 S
                      MILK; PASTRYCOOKS' PRODUCTS, excluding products
                      of 1901 20 00, 1901 90 91, 1904
   1901 20 00         Mixes and doughs for the preparation of bakers' wares of                  NS
                      heading 1905
   1901 90 91         Other, containing no milk fats, sucrose, isoglucose, glucose              NS
                      or starch or containing less than 1,5 % milk fat, 5 % sucrose
                      (including invert sugar) or isoglucose, 5 % glucose or starch,
                      excluding food preparations in powder form of goods of
                      headings 0401 to 0404
   Chapter 20         PREPARATIONS OF VEGETABLES, FRUIT, NUTS OR                                S
                      OTHER PARTS OF PLANTS except for products of CN
                      code 2002, ex 2008 and ex 2008 70.
   24
          For products of CN codes 1704 10 91 and 1704 10 99, the specific duty shall be limited to 16% of the
          customs value under the special incentive arrangement for sustainable development and good
          governance.
EN                                                  40                                                         EN
 ---pagebreak---    Ex 2002             Tomatoes, prepared or preserved otherwise than by vinegar       S
                       or acetic acid 25
   ex 2008 40          Prepared or preserved pears (except 2008 40 11, 2008 40 21,     S
                       2008 40 29 and 2008 40 39)26
   ex 2008 70          Prepared or preserved peaches (except 2008 70 11, 2008 70       S
                       31, 2008 70 39 and 2008 7059)27
   2008 20 19          Pineapples containing added spirit                              NS
   2008 20 39                                                                          NS
   ex Chapter 21       MISCELLANEOUS EDIBLE PREPARATIONS, excluding                    S
                       products of 2106 10, 2106 90 30, 2106 90 51, 2106 90 55
                       and 2106 90 59
   2101 20             Extracts, essences and concentrates, of tea or maté, and        NS
                       preparations with a basis of these extracts, essences or
                       concentrates, or with a basis of tea or maté
   2102 20 19          Other inactive yeasts                                           NS
   ex Chapter 22       BEVERAGES, SPIRITS AND VINEGAR, excluding                       S
                       products of 2204 10 11 to 2204 30 10, 2206 00 10 and
                       2208 40
   2302 50 00          Bran, sharps and other residues, whether or not in the form of S
                       pellets derived from the sifting, milling or other working of
                       cereals of leguminous plants
   2307 00 19          Other wine lees                                                 S
                       Vegetable materials and vegetable waste, vegetable residues
                       and by-products, of a kind used in animal feeding, not
                       elsewhere specified or included:
   2308 00 19          Other grape marc                                                S
   2308 00 90          Other                                                           NS
   2309 10 90          Dog or cat food put up for retail sale, other than containing   S
                       starch, glucose, glucose syrup, maltodextrine or
                       maltodextrine syrup of 1702 30 51 to 1702 30 99,
                       1702 40 90, 1702 90 50 and 2106 90 55 or milk products
   25
          For these products, the arrangement referred to in Section 1 does not apply.
   26
          For these products, the arrangement referred to in Section 1 does not apply.
   27
          For these products, the arrangement referred to in Section 1 does not apply.
EN                                                      41                                EN
 ---pagebreak---               Other preparations of a kind used in animal feeding:
   2309 90 10 Fish or marine mammal solubles                              NS
   2309 90 91 Beetpulp with added molasses                                S
   2309 90 95 Other                                                       S
   2309 90 99                                                             S
   Chapter 24 TOBACCO AND MANUFACTURED TOBACCO                            S
              SUBSTITUTES
   2519 90 10 Magnesium oxide, other than calcined natural magnesium      NS
              carbonate
   2522       Quicklime, slaked lime and hydraulic lime, other than       NS
              calcium oxide and hydroxide of heading 2825
   2523       Portland cement, aluminous cement, slag cement,             NS
              supersulphate cement and similar hydraulic cements, whether
              or not coloured or in the form of clinkers
   Chapter 27 MINERAL FUELS, MINERAL OILS AND PRODUCTS                    NS
              OF THEIR DISTILLATION; BITUMINOUS
              SUBSTANCES; MINERAL WAXES
   2801       Fluorine, chlorine, bromine and iodine                      NS
   2802 00 00 Sulphur, sublimed or precipitated; colloidal sulphur        NS
   ex 2804    Hydrogen, rare gases and other non-metals, excluding        NS
              products of 2804 69 00
   2806       Hydrogen chloride (hydrochloric acid); chlorosulphuric acid NS
   2807       Sulphuric acid; oleum                                       NS
   2808 00 00 Nitric acid; sulphonitric acids                             NS
   2809       Disphosphorus pentoxide; phosphoric acid and                NS
              polyphosphoric acids, whether or not chemically defined
   2810 00 90 Oxides of boron; boric acids, other then diboron trioxide   NS
   2811       Other inorganic acids and other inorganic oxygen            NS
              compounds of non-metals
   2812       Halides and halide oxides of non-metals                     NS
EN                                         42                                EN
 ---pagebreak---    2813       Sulphides of non-metals; commercial phosporus trisulphide    NS
   2814       Ammonia, anhydrous or in aqueous solution                    S
   2815       Sodium hydroxide (caustic soda); potassium hydroxide         S
              (caustic potash); peroxides of sodium or potassium
   2816       Hydroxide and peroxide of magnesium; oxides, hydroxides      NS
              and peroxides, of strontium or barium
   2817 00 00 Zinc oxide; zinc peroxide                                    S
   2818 10    Artificial corundum, whether or not chemically defined       S
   2819       Chromium oxides and hydroxides                               S
   2820       Manganese oxides                                             S
   2821       Iron oxides and hydroxides; earth colours containing 70 % or NS
              more by weight of combined iron evaluated as Fe2O3
   2822 00 00 Cobalt oxides and hydroxides; commercial cobalt oxides       NS
   2823 00 00 Titanium oxides                                              S
   2824       Lead oxides; red lead and orange lead                        NS
   ex 2825    Hydrazine and hydroxylamine and their inorganic salts; other NS
              inorganic bases; other oxides, hydroxides and peroxides,
              excluding products of 2825 10 00 and 2825 80 00
   2825 10 00 Hydrazine and hydroxylamine and their inorganic salts        S
   2825 80 00 Antimony oxides                                              S
   2826       Fluorides; fluorosilicates, fluoroaluminates and other       NS
              complex fluorine salts
   ex 2827    Chlorides, chloride oxides and chloride hydroxides;          NS
              bromides and bromides oxides; iodides and iodide oxides,
              excluding products of 2827 10 00 and 2827 32 00
   2827 10 00 Ammonium chloride                                            S
   2827 32 00 Aluminium chloride                                           S
   2828       Hypochlorites; commercial calcium hypochlorite; chlorites;   NS
              hypobromites
   2829       Chlorates and perchlorates; bromates and perbromates;        NS
              iodates and periodates
EN                                          43                                EN
 ---pagebreak---    ex 2830       Sulphides; polysulphides, excluding products of 2830 10 00 NS
   2830 10 00    Sodium sulphides                                           S
   2831          Dithionites and sulphoxylates                              NS
   2832          Sulphites; thiosulphates                                   NS
   2833          Sulphates; alums; peroxosulphates                          NS
   ex 2834       Nitrites; nitrates, excluding products of 2834 10 00       NS
   2834 10 00    Nitrites                                                   S
   2835          Phosphinates (hypophosphites), phosphonates (phosphites)   S
                 and phosphates; polyphosphates, whether or not chemically
                 defined
   ex 2836       Carbonates; peroxocarbonates; commercial ammonium          NS
                 carbonate containing ammonium carbamate, excluding
                 products of 2836 20 00, 2836 40 00 and 2836 60 00
   2836 20 00    Disodium carbonate                                         S
   2836 40 00    Potassium carbonates                                       S
   2836 60 00    Barium carbonate                                           S
   2837          Cyanides, cyanide oxides and complex cyanides              NS
   2838 00 00    Fulminates, cyanates and thiocyanates                      NS
   2839          Silicates; commercial alkali metal silicates               NS
   2840          Borates; peroxoborates (perborates)                        NS
   ex 2841       Salts of oxometallic or peroxometallic acids, excluding    NS
                 products of 2841 61 00
   2841 61 00    Potassium permanganate                                     S
   2842          Other salts of inorganic acids or peroxoacids (including   NS
                 aluminosilicates wether or not chemically defined), other
                 than azides
   2843          Colloidal precious metals; inorganic or organic compounds  NS
                 of precious metals, whether or not chemically defined;
                 amalgams of precious metals
   ex 2844 30 11 Other than unwrought cermets, waste and scrap of uranium   NS
                 depleted in U 235
EN                                             44                              EN
 ---pagebreak---    ex 2844 30 51 Other than unwrought cermets, waste and scrap of thorium      NS
   2845 90 90    Other, than deuterium and compounds thereof; hydrogen and     NS
                 compounds thereof, enriched in deuterium; mixtures and
                 solutions containing these products
   2846          Compounds, inorganic or organic, of rare-earth metals, of     NS
                 yttrium or of scandium or of mixtures of these metals
   2847 00 00    Hydrogen peroxide, whether or not solidified with urea        NS
   2848 00 00    Phosphides, whether or not chemically defined, excluding      NS
                 ferrophosphorus
   ex 2849       Carbides, whether or not chemically defined, excluding        NS
                 products of 2849 20 00 and 2849 90 30
   2849 20 00    Carbides of silicon                                           S
   2849 90 30    Carbides of tungsten                                          S
   ex 2850 00    Hydrides, nitrides, azides, silicides and borides, whether or NS
                 not chemically defined, other than compounds which are also
                 carbides of 2849, excluding products of 2850 00 70
   2850 00 70    Silicides                                                     S
   2851 00       Other inorganic compounds (including distilled or             NS
                 conductivity water and water of similar purity); liquid air
                 (whether or not rare gases have been removed); compressed
                 air; amalgams, other than amalgams of precious metals
   2903          Halogenated derivatives of hydrocarbons                       S
   2904 10 00    Derivatives containing only sulpho groups, their salts and    NS
                 ethyl esters
   2904 20 00    Derivatives of hydrocarbons, containing only nitro or only    S
                 nitroso groups
   2904 90       Other derivatives                                             NS
   ex 2905       Acyclic alcohols and their halogenated, sulphonated, nitrated S
                 or nitrosated derivatives, excluding products of 2905 43 00,
                 2905 44 and 2905 45 00
   2905 45 00    Glycerol                                                      NS
   2906          Cyclic alcohols and their halogenated, sulphonated, nitrated  NS
                 or nitrosated derivatives
EN                                            45                                  EN
 ---pagebreak---    2907 11 00    Phenol (hydroxybenzene) and its salts                         NS
   2907 12 00    Cresols and their salts                                       NS
   2907 13 00    Octylphenol, nonylphenol and their isomers; salts thereof     NS
   2907 14 00    Xylenols and their salts                                      NS
   2907 15 90    Naphthols and their salts other than 1-Naphtol                S
   2907 19 00    Other                                                         NS
   2907 21 00    Resorcinol and its salts                                      NS
   ex 2907 22 00 Hydroquinone (quinol)                                         S
   ex 2907 22 90 Other                                                         NS
   2907 23 00    4,4'—Isopropylidenediphenol (bisphenol A,                     NS
                 diphenylolpropane) and its salts
   2907 29 00    Other                                                         NS
   2908          Halogenated, sulphonated, nitrated or nitrosated derivatives  NS
                 of phenols or phenol-alcohols
   2909          Ethers, ether-alcohols, ether-phenols, ether-alcohol-phenols, S
                 alcohol peroxides, ether peroxides, ketone peroxides
                 (whether or not chemically defined), and their halogenated,
                 sulphonated, nitrated or nitrosated derivatives
   2910          Epoxides, epoxyalcohols, epoxyphenols and epoxyethers,        NS
                 with a three membered ring, and their halogenated,
                 sulphonated, nitrated or nitrosated derivatives
   2911 00 00    Acetals and hemiacetals, whether or not with other oxygen     NS
                 function, and their halogenated, sulphonated, nitrated or
                 nitrosated derivatives
   ex 2912       Aldehydes, whether or not with other oxygen function; cyclic NS
                 polymers of aldehydes; paraformaldehyde, excluding
                 products of 2912 41 00
   2912 41 00    Vanillin (4-hydroxy-3-methoxybenzaldehyde)                    S
   2913 00 00    Halogenated, sulphonated, nitrated or nitrosated derivatives  NS
                 of products of heading 2912
   ex 2914       Ketones and quinones, whether or not with other oxygen        NS
                 function and their halogenated, sulphonated, nitrated or
                 nitrosated derivatives, excluding products of 2914 11 00,
                 2914 21 00 and 2914 22 00
EN                                            46                                  EN
 ---pagebreak---    2914 11 00    Acetone                                                      S
   2914 21 00    Camphor                                                      S
   2914 22 00    Cyclohexanone and methylcyclohexanones                       S
   2915          Saturated acyclic monocarboxylic acids and their anhydrides, S
                 halides, peroxides and peroxyacids; their halogenated,
                 sulphonated, nitrated or nitrosated derivatives
   ex 2916 11 00 Acrylic acid                                                 S
   ex 2916 11 00 Salts of acrylic acid                                        NS
   2916 12       Esters of acrylic acid                                       S
   2916 13 00    Methacrylic acid and its salts                               NS
   2916 14       Esters of methacrylic acid                                   S
   2916 15 00    Oleic, linoeic or linolenic acids, their salts and esters    NS
   2916 19       Other                                                        NS
   2916 20 00    Cyclanic, cyclenic or cycloterpenic monocarboxylic acids,    NS
                 their anhydrides, halides, peroxides, peroxyacids and their
                 derivatives
   2916 31 00    Benzoic acid, its salts and esters                           NS
   2916 32       Benzoyl peroxide and benzoyl chloride                        NS
   2916 39 00    Other                                                        NS
   ex 2917       Polycarboxylic acids, their anhydrides, halides, peroxides   NS
                 and peroxyacids; their halogenated, sulphonated, nitrated or
                 nitrosated derivatives, excluding products of 2917 11 00,
                 2917 12 10, 2917 14 00, 2917 32 00, 2917 35 00 and
                 2917 36 00
   2917 11 00    Oxalic acid, its salts and esters                            S
   2917 12 10    Adipic acid, and its salts                                   S
   2917 14 00    Maleic anhydride                                             S
   2917 32 00    Dioctyl orthophthalates                                      S
   2917 35 00    Phthalic anhydride                                           S
   2917 36 00    Terephthalic acid and its salts                              S
EN                                             47                                EN
 ---pagebreak---    ex 2918    Carboxylic acids with additional oxygen function and their      NS
              anhydrides, halides, peroxides and peroxyacids; their
              halogenated, sulphonated, nitrated or nitrosated derivatives,
              excluding products of 2918 14 00, 2918 15 00, 2918 21 00,
              2918 22 00 and 2918 29 10
   2918 14 00 Citric acid                                                     S
   2918 15 00 Salts and esters of citric acid                                 S
   2918 21 00 Salicylic acid and its salts                                    S
   2918 22 00 O-Acetysalicylic acid, its salts and esters                     S
   2918 29 10 Sulfosalicylic acids, hydroxynaphthoic acids; their salts and   S
              esters
   2919 00    Phosphoric esters and their salts, including lactophosphates;   NS
              their halogenated, sulphanoted, nitrated or nitrosated
              derivatives
   2920        Esters of other inorganic acids of non-metals (excluding       NS
              esters of hydrogen halides) and their salts; their halogenated,
              sulphonated, nitrated or nitrosated derivatives
   2921       Amino-function compounds                                        S
   2922       Oxygen-function amino-compounds                                 S
   2923       Quaternary ammonium salts and hydroxides; lecithins and         NS
              other phosphoaminolipids, whether or not chemically defined
   2924 19 00 Acyclic amides (including acyclic carbamates) and their         S
              derivatives; salts thereof excluding meprobamate
   2924 21    Ureines and their derivatives; salts thereof                    S
   2924 23 00 2-Acetamidobenzoic acid (N-acetylanthranilic acid) and its      NS
              salts
   2924 29 30 Paracetamol (INN)                                               S
   2924 29 95 Other carboxyamide-function compounds                           S
   2925       Carboxyimide-function compounds (including saccharin and        NS
              its salts) and imine-function compounds
   ex 2926    Nitrile-function compounds, excluding products of               NS
              2926 10 00
   2926 10 00 Acrylonitrile                                                   S
EN                                          48                                   EN
 ---pagebreak---    2927 00 00    Diazo-, azo- or azoxy-compounds                           S
   2928 00 90    Organic derivatives of hydrazine                          NS
   2929 10       Isocyanates                                               S
   2929 90 00    Other than isocyanates                                    NS
   2930 10 00    Organo-sulphur compounds                                  NS
   2930 20 00                                                              NS
   2930 30 00                                                              NS
   2930 40 90    Organo-sulphur compounds                                  S
   2930 90 13                                                              S
   2930 90 16                                                              S
   2930 90 20                                                              S
   2930 90 70                                                              S
   2931 00       Other organo-inorganic compounds                          NS
   ex 2932       Heterocyclic compounds with oxygen hetero-atoms only,     NS
                 excluding products of 2932 12 00, 2932 13 00 and
                 2932 21 00
   2932 12 00    2-Furaldehyde (furfuraldehyde)                            S
   2932 13 00    Furfuryl alcohol and tetrahydrofurfuryl alcohol           S
   2932 21 00    Coumarin, methylcoumarins and ethylcoumarins              S
   ex 2933       Heterocylic compounds with nitrogen hetero-atoms only,    NS
                 excluding products of 2933 61 00
   2933 61 00    Melamine                                                  S
   2934          Nucleic acids and their salts, wether or not chemically   NS
                 defined; other heterocyclic compounds
   2935 00 90    Other sulphonamides                                       S
   2938          Glycosides, natural or reproduced by synthesis, and their NS
                 salts, ethers, esters and other derivatives
   ex 2940 00 00 Rhamnose, raffinose and mannose                           NS
EN                                             49                             EN
 ---pagebreak---    ex 2940 00 00       Sugars, chemically pure, other than sucrose, lactose, maltose,  S
                       glucose and fructose; sugar ethers and sugar esters, and their
                       salts, other than products of 2937, 2938 or 2939, other than
                       rahmnose, raffinose and mannose
   2941 20 30          Dihydrostreptomycin, its salts, esters and hydrates             NS
   2942 00 00          Other organic compounds                                         NS
   3102                Mineral or chemical fertilisers, nitrogenous28                  S
   3103 10             Superphosphates                                                 S
   3105                Mineral or chemical fertilisers containing two or three of the  S
                       fertilising elements nitrogen, phosphorus and potassium;
                       other fertilisers; goods of this chapter in tablets or similar
                       forms or in packages of a gross weight not exceeding 10 kg
   ex 3201 90 90       Tanning extracts of vegetable origin; tannins and their salts,  NS
                       ethers, esthers and other derivatives excluding tanning
                       extracts of eucalyptus, tannings extracts derived from
                       gambier and myrobalan fruits and other tanning extracts of
                       vegetable origin
   3202                Synthetic organic tanning substances; inorganic tanning         NS
                       substances; tanning preparations, whether or not containing
                       natural tanning substances; enzymatic preparations for pre-
                       tanning
   3203 00 90          Colouring matter of animal and preparations based thereon       NS
   3204                Synthetic organic colouring matter, whether or not              S
                       chemically defined; preparations as specified in note 3 to this
                       chapter based on synthetic organic products of a kind used as
                       fluorescent brightening agents or as luminophores, whether
                       or not chemically defined
   3205 00 00          Colour lakes; preparations as specified in note 3 to this       NS
                       chapter based on colour lakes
   3206                Other colouring matter; preparations as specified in note 3 to  S
                       this chapter, other than those of 3203, 3204 to 3205 00 00;
                       inorganic products of a kind used as luminophores, whether
                       or not chemically defined
   28
          the preferences referred to in Section I does not apply to these products.
EN                                                        50                              EN
 ---pagebreak---    3207       Prepared pigments, prepared opacifiers and prepared colours, NS
              vitrifiable enamels and glazes, engobes, liquid lustres and
              similar preparations, of a kind used in the ceramic,
              enamelling or glass industry; glass frit and other glass, in the
              form of powder, granules or flakes
   3208       Paint and varnishes based on synthetic polymer or                NS
              chemically modified natural polymers, dispersed or dissolved
              in a non-aqueous medium; solutions as defined in note 4 to
              this chapter
   3209       Paints and varnishes based on synthetic polymer or               NS
              chemically modified natural polymers, dispersed or dissolved
              in a aqueous medium
   3210 00    Other paints and varnishes; prepared water pigments of a         NS
              kind used for finishing leather
   3211 00 00 Prepared driers                                                  NS
   3212       Pigments dispersed in non-aqueous media, in liquid or paste NS
              form, of a kind used in manufacture of paints; stamping foils;
              dyes and other colouring matter put up in forms or packings
              for retail sale
   3213       Artists', students' or sign board painters' colours, modifying   NS
              tints, amusement colours and the like, in tablets, tubes, jars,
              bottles, pans or in similar forms or packings
   3214       Glaziers' putty, grafting putty, resin cements, caulking         NS
              compounds and other mastics; painters' fillings; non-
              refractory surfacing preparations for façades, indoor walls,
              floors, ceilings or the like
   3215       Printing ink, writing or drawing ink and other inks, whether     NS
              or not concentrated or solid
   Chapter 33 ESSENTIAL OILS AND RESINOIDS; PERFUMERY,                         NS
              COSMETIC OR TOILET PREPARATIONS
   Chapter 34 SOAP, ORGANIC SURFACE-ACTIVE AGENTS,                             NS
              WASHING PREPARATIONS, LUBRICATING
              PREPARATIONS, ARTIFICIAL WAXES; PREPARED
              WAXES, POLISHING OR SCOURING PREPARATIONS,
              CANDLES AND SIMILAR ARTICLES; MODELLING
              PASTES, DENTAL WAXES AND DENTAL
              PREPARATIONS WITH A BASIS OF PLASTER
   3501       Casein, caseinates and other casein derivatives; casein glues    S
EN                                          51                                    EN
 ---pagebreak---    3502 90 90 Albuminates and other albumin derivatives                       NS
   3503 00    Gelatine sheets, whether or not surface-worked and gelatine     NS
              derivatives; isinglass; other glues of animal origin, excluding
              casein glues of 3501
   3504 00 00 Peptones and their derivatives; other protein substances and    NS
              their derivatives, not elsewhere specified or included; hide
              powder, whether or not chromed
   3505 10 50 Starches, esterified or etherified                              NS
   3506       Prepared glues and other prepared adhesives, not elsewhere      NS
              specified or included; products suitable for use as glues or
              adhesives, not exceeding a net weight of 1 kg
   3507       Enzymes; prepared enzymes not elsewhere specified or            S
              included
   Chapter 36 EXPLOSIVES; PYROTECHNIC PRODUCTS; MATCHES; NS
              PYROPHORIC ALLOYS; CERTAIN COMBUSTIBLE
              PREPARATIONS
   Chapter 37 PHOTOGRAPHIC OR CINEMATOPGRAPHIC GOODS                          NS
   3801       Artificial graphite; colloidal or semi-colloidal graphite;      NS
              preparations based on graphite or other carbon in the form of
              pastes, blocks, plates or other semi-manufactures
   3802       Activated carbon; activated natural mineral products; animal    S
              black, including spent animal black
   3803 00 90 Tall oil, whether or not refined, other than crude              NS
   3804 00    Residual lyes from the manufacture of wood pulp, whether        NS
              or not concentrated, desugared or chemically treated,
              including lignin sulphonates, but excluding tall oil of 3803
   3805       Gum, wood or sulphate turpentine and other terpenic oils        NS
              produced by distillation or other treatment of coniferous
              woods; crude dipentene; sulphiteturpentine and other crude
              para-cymene; pine oil containing alpha-terpineol as the main
              constituent
   3806       Rosin and resin acids, and derivatives thereof; rosin spirit    NS
              and rosin oils; run gums
   3807 00    Wood tar; wood creosote; wood naphtha; vegetable pitch;         NS
              brewers' pitch and similar preparations based on rosin, resin
              acids or on vegetable pitch
EN                                         52                                    EN
 ---pagebreak---    3808       Insecticides, rodenticides, fungicides, herbicides, anti-        NS
              sprouting products and plant-growth regulators, disinfectants
              and similar products, put up in forms or packings for retail
              sale or as preparations or articles
   ex 3809    Finishing agents, dye carriers to accelerate the dyeing or       NS
              fixing of dye-stuffs and other products and preparations, of a
              kind used in the textile, paper, leather or like industries, not
              elsewhere specified or included, excluding products of
              3809 10
   3810       Pickling preparations for metal surfaces; fluxes and other       NS
              auxiliary preparations for soldering, brazing or welding;
              soldering, brazing or welding powders and pastes consisting
              of metal and other materials; preparations of a kind used as
              cores or coatings for welding electrodes or rods
   3811       Anti-knock preparations, oxidation inhibitors, gum               NS
              inhibitors, viscosity improvers, anti-corrosive preparations
              and other prepared additives, for mineral oils or for other
              liquids used for the same purposes as mineral oils
   3812       Prepared rubber accelerators; compounds plasticisers for         NS
              rubber or plastics, not elsewhere specified or included; anti-
              oxidising preparations and other compound stabilisers for
              rubber or plastics
   3813 00 00 Preparations and charges for fire-extinguishers; charged fire-   NS
              extinguishing grenades
   3814 00    Organic composite solvents and thinners, not elsewhere           NS
              specified or included; prepared paint or varnish removers
   3815       Reaction initiators, reaction accelerators and catalytic         NS
              preparations, not elsewhere specified or included
   3816 00 00 Refractory cements, mortars, concretes and similar               NS
              compositions, other than products of 3801
   3817       Mixed alkylbenzenes and mixed alkylnaphthalenes, other           S
              than those of 2707 and 2902:
   3819 00 00 Hydraulic brake fluids and other prepared liquids for            NS
              hydraulic transmission, not containing or containing less than
              70 % by weight of petroleum oils or oils obtained from
              bituminous minerals
   3820 00 00 Anti-freezing preparations and prepared de-icing fluids          NS
   3821 00 00 Prepared culture media for development of micro-organisms        NS
EN                                         53                                     EN
 ---pagebreak---    ex 3823    Industrial monocarboxylic fatty acids; acid oils from          S
              refining; industrial fatty alcohols, excluding products of
              3823 11 00, 3823 13 00 and 3823 19
   3823 11 00 Stearic acid                                                   NS
   3823 13 00 Tall oil fatty acids                                           NS
   3823 19    Other                                                          NS
   ex 3824    Prepared binders for foundry moulds or cores; chemical         NS
              products and preparations of the chemical or allied industries
              (including those consisting of mixtures of natural products),
              not elsewhere specified or included, excluding products of
              3824 60
   3825       Residual products of the chemical or allied industries, not    S
              elsewhere specified or included; municipal waste; sewage
              sludge; other wastes specified in note 6 to this chapter
   3901       Polymers of ethylene, in primary forms,                        S
   3902       Polymers of propylene or other olefins, in primary forms       S
   3903       Polymers of styrene, in primary forms                          S
   3904       Polymers of vinyl chloride or of other halogenated olefins, in S
              primary forms
   3905       Polymers of vinyl acetate or other vinyl esters, in primary    NS
              forms; other vinyl polymers in primary forms
   3906 10 00 Poly(methyl methacrylate)                                      S
              Other acrylic polymers in primary forms
   3906 90 60 Copolymer of methyl acrylate with ethylene and a monomer       NS
              containing a non-terminal carboxy group as a substituent,
              containing by weight 50% or more o methyl acrylate,
              whether or not compounded with silica
   3906 90 90 Other                                                          NS
   ex 3907    Polycetals, other polyethers and epoxide resins, in primary    NS
              forms; polycarbonates, alkyd resins, polyallyl esters and
              other polyesters, in primary forms, excluding products of
              3907 10 00, 3907 60 and 3907 99
   3907 10 00 Polyacetals                                                    S
EN                                          54                                  EN
 ---pagebreak---    3907 60    Poly(ethylene terephthalate)                                       S
   3907 99    Other polyesters, other than unsaturated                           S
   3908       Polyamides in primary form                                         S
   3909       Amino-resins, phenolic resins and polyurethanes, in primary        NS
              forms
   3910 00 00 Silicones in primary forms                                         NS
   3911       Petroleum resins, coumarone-indene resins, polyterpenes,           NS
              polysulphides, polysulphones and other products specified in
              note 3 to this chapter, not elsewhere specified or included, in
              primary forms
   3912       Cellulose and its chemical derivatives, not elsewhere              NS
              specified or included, in primary forms
   3913       Natural polymers and modified natural polymers, not                NS
              elsewhere specified or included, in primary forms
   3914 00 00 Ion-exchangers based on polymers of 3901 to 3913, in               NS
              primary forms
   3915       Waste, parings and scrap, of plastic                               NS
   3916       Monofilament of which any cross-sectional dimension                NS
              exceeds 1mm, rods, sticks and profile shapes, whether or not
              surface-worked but not otherwise worked, of plastic
   3917       Tubes, pipes and hoses, and fittings therefor, of plastic          NS
   3918       Floor coverings of plastics, whether or not self-adhesive, in      NS
              roll or in form of tiles; wall or ceiling coverings of plastics,
              as defined in note 9 to this chapter
   3919       Self-adhesive plates, sheets, film, foil, tape, strip and other    NS
              flat shapes, of plastics, whether or not in rolls
   3920       Other plates, sheets, film, foil and strip, of plastics, non-      S
              cellular and not reinforced, laminated, supported or similarly
              combined with other materials
   ex 3921    Other plates, sheets, film, foil and strip, of plastics, excluding NS
              products of 3921 90 19
   3921 90 19 Other plates, sheets, foil and strip, of plastics other than       S
              cellular products, of polyesters, other than corrugated sheets
              and plates
EN                                          55                                      EN
 ---pagebreak---    3922          Baths, shower-bath, wash-basins, bidets, lavatory pans, seats   NS
                 and covers, flushing cisterns and similar sanitary ware, of
                 plastics
   ex 3923       Articles for the conveyance or packing of goods, of plastics;   NS
                 stoppers, lids, caps and other closures, of plastics, excluding
                 products of 3923 21 00
   3923 21 00    Sacks and bags (including cones) of ethylene polymers           S
   3924          Tableware, kitchenware, other household articles and toilets    NS
                 articles, of plastics
   3925          Builders' ware of plastics, not elsewhere specified or          NS
                 included
   3926          Other articles of plastics and articles of other materials of   NS
                 3901 to 3914
   ex Chapter 40 RUBBER AND ARTICLES THEREOF, excluding products                 NS
                 of 4010
   4010          Conveyor or transmission belts or belting, of vulcanised        S
                 rubber
   ex 4104       Tanned or crust hides and skins of bovine (including buffalo)   S
                 or equine animals, without hair on, whether or not split, but
                 not further prepared, excluding products of 4104 41 19 and
                 4104 49 19
   ex 4106 31    Tanned or crust hides and skins of other animals, without       NS
                 wool or hair on, whether or not split, but not further
   4106 32       prepared, excluding products of 4106 31 10 and 4106 40 90
   4107          Leather further prepared after tanning or crusting, including   S
                 parchment—dressed leather, of bovine (including buffalo) or
                 equine animals, without hair on, whether or not split, other
                 than leather of heading 4114
                 Leather further prepared after tanning or crusting, including
                 parchment-dressed leather:
   4112 00 00    Of sheep or lamb, without wool on, whether or not split,        S
                 other than leather of 4114
   4113 10 00    Of goats or kids, without wool or hair on, whether or not       S
                 split, other than leather of 4114
   4113 20 00    Of swine                                                        NS
EN                                             56                                   EN
 ---pagebreak---    4113 30 00 Of reptiles                                                      NS
   4113 90 00 Other                                                            NS
   4114       Chamois (including combination chamois) leather; patent          S
              leather and patent laminated leather; metallised leather
   4115 10 00 Composition leather with a basis of leather or leather fibre, in S
              slabs, sheets or strip, whether or not in rolls
   4201 00 00 Saddlery and harness for any animal (including traces, leads, NS
              knee pads, muzzles, saddle cloths, saddle bags, dog coats and
              the like), of any material
   4202       Trunks, suitcases, vanity-cases, executive-cases, brief-cases, S
              school satchels, spectacle cases, binocular cases, camera
              cases, musical instrument cases, gun cases, holsters and
              similar containers; travelling-bags, insulated food or
              beverages bags, toilet bags, rucksacks, handbags, shopping-
              bags, wallets, purses, map-cases, cigarette-cases, tobacco-
              pouches, tool bags, sports bags, bottle-cases, jewellery
              boxes, powder-boxes, cutlery cases and similar containers, of
              leather or of composition leather, of sheeting of plastics, of
              textile materials, of vulcanised fibre or of paperboard, or
              wholly or mainly covered with such materials or with paper
   4203       Articles of apparel and clothing accessories, of leather or of   S
              composition leather
   4204 00    Articles of leather, or of composition leather, of a kind used   NS
              in machinery or mechanical appliances or for other technical
              uses
   4205 00 00 Other articles of leather or of composition leather              NS
   4206       Articles of gut (other than silkworm gut), of goldbeater's       NS
              skin, of bladders or of tendons
   Chapter 43 FURSKINS AND ARTIFICIAL FUR; MANUFACTURES                        NS
              THEREOF
   4407       Wood sawn or chipped lengthwise, sliced or peeled, whether       NS
              or not planed, sanded or end-jointed, of a thickness
              exceeding 6 mm
   4407 24    Virola, mahogany imbuia and balsa                                NS
   4407 25    Dark red meranti, light red meranti and meranti bakau            NS
   4407 26    White lauan, white meranti, white seraya, yellow meranti and NS
              alan
EN                                          57                                    EN
 ---pagebreak---    4407 29    Keruning, ramin, kapur, teak, jongkong, merbau, jelutong,      NS
              kempas, okoumé, obeche, sapelli, sipo, acajou d'Afrique,
              makoré, iroko, tiama, mansonia, ilomba, dibétou, limba,
              azobé, palissandre de Rio, palissandre de Para and
              palissandre de Rose
   4408       Sheets for veneering (including those obtained by slicing      NS
              laminated wood), for plywood or for other similar laminated
              wood and other wood, sawn lengthwise, sliced or peeled,
              whether or not planed, sanded, spliced or end-jointed, of a
              thickness not exceeding 6 mm
   4408 31    Dark red meranti and meranti bakau                             NS
   4408 39    Other                                                          NS
   4410       Particle board and similar board (for example, oriented        S
              strand board and waferboard) of wood or other ligneous
              materials, whether or not agglomerated with resins or other
              organic binding substances
   4411       Fibreboard of wood or other ligneous materials, whether or     S
              not bonded with resins or other organic substances
   4412       Plywood, veneered panels and similar laminated wood            S
   4412 13    Plywood consisting solely of sheets of wood, each ply not      S
              exceeding 6 mm, with at least one outer ply of tropical wood
              specified in subheading note 1 to this Chapter
   4412 22    Other, with at least one outer ply of non-coniferous wood,     S
              with at least one ply of tropical wood specified in subheading
              note 1 to this Chapter
   4412 92    Other, with at least one outer ply of tropical wood specified  S
              in subheading note 1 to this Chapter
   4414 00 10 Wooden frames for paintings, photographs, mirrors or           NS
              similar objects, of tropical wood, as specified in additional
              note 2 to this Chapter
   4415       Packing cases, boxes, crates, drums and similar packings, of NS
              wood; cable-drums of wood; pallets and other load boards, of
              wood; pallet collars of wood
   4418 10    Builders' joinery or carpentry of wood, including cellular     S
              wood panels, assembled parquet panels, shingles and shakes
   4418 30 10                                                                S
   4418 10 10 Windows, french windows and their frames of tropical wood, S
              as specified in additional note 2 to this Chapter
EN                                         58                                   EN
 ---pagebreak---    4418 20 10    Doors and their frames and thresholds, of tropical wood, as     S
                 specified in additional note 2 to this Chapter
   4420 10 11    Wood marquetry and inlaid wood; caskets and cases for           S
                 jewellery or cutlery, and similar articles, of wood; statuettes
   4420 90 10    and other ornaments, of wood; wooden articles of furniture      S
                 not falling within Chapter 94
   4420 90 91                                                                    S
   ex 4420 90 10 Other, of tropical wood, as specified in additional note 2 to   S
                 this Chapter
   4421 90 91    Other articles of wood: other than of fibreboard                NS
   ex Chapter 45 CORK AND ARTICLES OF CORK, excluding products of                NS
                 4503
   4503          Articles of natural cork                                        S
   Chapter 46    MANUFACTURES OF STRAW, OF ESPARTO OR OF                         S
                 OTHER PLAITING MATERIALS; BASKETWARE AND
                 WICKERWORK
   Chapter 50    SILK                                                            S
   ex Chapter 51 WOOL, FINE OR COARSE ANIMAL HAIR,                               S
                 HORSEHAIR YARN AND WOVEN FABRIC, excluding
                 products of 5105
   Chapter 52    COTTON                                                          S
   Chapter 53    OTHER VEGETABLE TEXTILE FIBRES; PAPER YARN                      S
                 AND WOVEN FABRICS OF PAPER YARN
   Chapter 54    MAN-MADE FILAMENTS                                              S
   Chapter 55    MAN-MADE STAPLE FIBRES                                          S
   Chapter 56    WADDING, FELT AND NONWOVENS; SPECIAL                            S
                 YARNS; TWINE; CORDAGE; ROBES AND CABLES
                 AND ARTICLES THEREOF
   Chapter 57    CARPETS AND OTHER TEXTILE FLOOR COVERINGS                       S
   Chapter 58    SPECIAL WOVEN FABRICS; TUFTED TEXTILE                           S
                 FABRICS; LACE; TAPESTRIES; TRIMMINGS;
                 EMBROIDERY
   Chapter 59    IMPREGNATED, COATED, COVERED OR                                 S
                 LAMINATED TEXTILE FABRICS; TEXTILE ARTICLES
                 OF A KIND SUITABLE FOR INDUSTRIAL USE
EN                                            59                                    EN
 ---pagebreak---    Chapter 60 KNITTED OR CROCHETED FABRICS                                    S
   Chapter 61 ARTICLES OF APPAREL AND CLOTHING                                S
              ACCESSORIES, KNITTED OR CROCHETED
   Chapter 62 ARTICLES OF APPAREL AND CLOTHING                                S
              ACCESSORIES, NOT KNITTED OR CROCHETED
   Chapter 63 OTHER MADE-UP TEXTILE ARTICLES; SETS; WORN                      S
              CLOTHING AND WORN TEXTILE ARTICLES; RAGS
   Chapter 64 FOOTWEAR, GAITERS AND THE LIKE; PARTS OF                        S
              SUCH ARTICLES
   Chapter 65 HEADGEAR AND PARTS THEREOF                                      NS
   Chapter 66 UMBRELLAS, SUN UMBRELLAS, WALKING STICKS,                       S
              SEAT STICKS, WHIPS, RIDING CROPS AND PARTS
              THEREOF
   Chapter 67 PREPARED FEATHERS AND DOWN AND ARTICLES                         NS
              MADE OF FEATHERS OR OF DOWN; ARTIFICIAL
              FLOWERS, ARTICLES OF HUMAN HAIR
   Chapter 68 ARTICLES OF STONE, PLASTER, CEMENT,                             NS
              ASBESTOS, MICA OR SIMILAR MATERIALS
   Chapter 69 CERAMIC PRODUCTS                                                S
   Chapter 70 GLASS AND GLASSWARE                                             S
   7113       Articles of jewellery and parts thereof, of precious metal or   NS
              of metal clad with precious metal
   7114       Articles of goldsmiths' or silversmiths' wares and parts        NS
              thereof, of precious metal or of metal clad with precious
              metal
   7115 90    Other articles of precious metal or of metal clad with          NS
              precious metal, other then catalysts in the form of wire cloth
              or grill, of platinum
   7116 20 19 Other                                                           NS
   7116 20 90 Other than articles made wholely of natural or cultured         NS
              pearls, precious or semi-precious stones (natural, synthetic or
              reconstructed)
   7117       Imitation jewellery                                             S
   7202       Ferro-alloys                                                    S
EN                                         60                                    EN
 ---pagebreak---    Chapter 73    ARTICLES OF IRON AND STEEL                                NS
   Chapter 74    COPPER AND ARTICLES THEREOF                               S
   7505 12 00    Bars, rods and profiles, of nickel alloys                 NS
   7505 22 00    Wire, of nickel alloys                                    NS
   7506 20 00    Nickel plates, sheets, strip and foil, of nickel alloys   NS
   7507 20 00    Nickel tube or pipe fittings                              NS
   ex Chapter 76 ALUMINIUM AND ARTICLES THEREOF, excluding                 S
                 products of 7601
   ex Chapter 78 LEAD AND ARTICLES THEREOF, excluding products of          S
                 7801
   ex Chapter 79 ZINC AND ARTICLES THEREOF, excluding products of          S
                 7901 and 7903
   ex Chapter 81 OTHER BASE METALS; CERMETS; ARTICLES                      S
                 THEREOF, excluding products of 8101 10 00, 8101 94 00,
                 8102 10 00, 8102 94 00, 8104 11 00, 8104 19 00,
                 8107 20 00, 8108 20 00, 8108 30 00, 8109 20 00,
                 8110 10 00, 8112 21 90, 8112 30 20, 8112 51 00,
                 8112 59 00, 8112 92 and 8113 00 20
   Chapter 82    TOOLS, IMPLEMENTS, CUTLERY, SPOONS AND                    S
                 FORKS, OF BASE METAL; PARTS THEREOF OF BASE
                 METAL
   Chapter 83    MISCELLANEOUS ARTICLES OF BASE METAL                      S
   ex Chapter 84 NUCLEAR REACTORS, BOILERS, MACHINERY AND                  NS
                 MECHANICAL APPLIANCES; PARTS THEREOF,
                 excluding products of 8401 10 00 and 8407 21 10
   8401 10 00    Nuclear reactors                                          S
   8407 21 10    Marine propulsion engines, outboard motors, of a cylinder S
                 capacity not exceeding 325 cm3
   ex Chapter 85 ELECTRICAL MACHINERY AND EQUIPMENT AND                    NS
                 PARTS THEREOF; SOUND RECORDERS AND
                 REPRODUCERS, TELEVISION IMAGE AND SOUND
                 RECORDERS AND REPRODUCERS, AND PARTS AND
                 ACCESSORIES OF SUCH ARTICLES, excluding products
                 of 8516 50 00, 8519, 8520 32 99, 8520 39 90, 8521, 8525,
                 8527, 8528 12, 8528 21 bis 8528 30, 8529, 8540 11 and
                 8540 12
EN                                             61                             EN
 ---pagebreak---    8516 50 00 Microwave ovens                                                 S
   8519       Turntables (record decks), record-players, cassette-players     S
              and other sound-producing apparatus, not incorporating a
              sound-recording device
   8520 32 99 Digital audio type, other than cassette-type                    S
   8520 39 90 Magnetic tape-recorders and other sound-recording               S
              apparatus, other than using tapes on reels, allowing sound
              recording or reproduction either at a single speed of 19 cm
              per second or at several speeds if those comprise only 19 cm
              per second and lower speeds
   8521       Video recording or reproducing apparatus, whether or not        S
              incorporating a video turner
   8525       Transmission apparatus for radio-telephony, radio-              S
              telegraphy, radio-broadcasting or television, whether or not
              incorporating reception apparatus or sound recording or
              reproducing apparatus; television cameras, still image video
              cameras and other video camera recorders
   8527       Reception apparatus for radio-telephony, radio-telegraphy or    S
              radio-broadcasting, whether or not combined, in the same
              housing, with sound recording or reproducing apparatus or a
              clock
   ex 8528    Reception apparatus for television, whether or not              S
              incorporating radio-broadcast receivers or sound or video
              recording or reproducing apparatus, excluding products of
              8528 13 00, video monitors and video projectors
   8529       Parts suitable for use solely or principally with the apparatus S
              of 8525 to 8528
   8540 11    Cathode ray television picture tubes, including video monitor S
              cathode-ray tubes
   8540 12 00                                                                 S
   Chapter 86 RAILWAY OR TRAMWAY LOCOMOTIVES, ROLLING                         NS
              STOCK AND PARTS THEREOF; RAILWAY OR
              TRAMWAY TRACK FIXTURES FITTINGS AND PARTS
              THEREOF; MECHANICAL (INCLUDING ELECTRO-
              MECHANICAL) TRAFFIC SIGNALLING EQUIPMENT
              OF ALL KINDS
   8701       Tractors (other than tractors of heading 8709)                  NS
   8702       Motor vehicles for the transport of 10 persons or more,         S
              including the driver
EN                                         62                                    EN
 ---pagebreak---    8703       Motor cars and other motor vehicles principally designed for    S
              the transport of persons (other than those of 8702), including
              station wagons and racing cars
   8704       Motor vehicles for the transport of goods                       S
   8705       Special purpose motor vehicles, other than those principally    S
              designed for the transport of persons or goods (e.g.
              breakdown lorries, crane lorries, fire-fighting vehicles,
              concrete-mixer lorries, road-sweeper lorries, spraying lorries,
              mobile workshops, mobile radiological units)
   8706 00    Chassis fitted with engines, for the motor vehicles of 8701 to  S
              8705
   8707       Bodies (including cabs), for the motor vehicles of 8701 to      S
              8705
   8708       Parts and accessories of the motor vehicles of 8701 to 8705     S
   8709       Works trucks, self-propelled, not fitted with lifting or        S
              handling equipment, of the type used in factories,
              warehouses, dock areas or airports for short distance
              transport of goods; tractors of the type used on railway
              station platforms; parts of the forgoing vehicles
   8710 00 00 Tanks and other armoured fighting vehicles, motorised,          NS
              whether or not fitted with weapons, and parts of such
              vehicles
   8711       Motor-cycles (including mopeds) and cycles fitted with an       S
              auxiliary motor, with or without side-cars; side cars
   8712 00    Bicycles and other cycles (including delivery tricycles), not   S
              motorised
   8714       Parts and accessories of vehicles of 8711 to 8713               S
   8715 00    Baby carriages and parts thereof                                NS
   8716       Trailers and semi-trailers, other vehicles not mechanically     NS
              propelled; parts thereof
   Chapter 88 AIRCRAFT, SPACECRAFT AND PARTS THEREOF                          NS
   Chapter 89 SHIPS, BOATS AND FLOATING STRUCTURES                            NS
   Chapter 90 OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC,                         S
              MEASURING, CHECKING, PRECISION MEDICAL OR
              SURGICAL INSTRUMENTS AND APPARATUS; PARTS
              AND ACCESSORIES THEREOF
EN                                         63                                    EN
 ---pagebreak---    Chapter 91    CLOCKS AND WATCHES AND PARTS THEREOF                         S
   Chapter 92    MUSICAL INSTRUMENTS; PARTS AND                               NS
                 ACCESSORIES OF SUCH ARTICLES
   ex Chapter 94 FURNITURE; BEDDING, MATTRESSES, MATTRESS                     NS
                 SUPPORTS, CUSHIONS AND SIMILAR STUFFED
                 FURNISHINGS; LAMPS AND LIGHTING FITTINGS,
                 NOT ELSEWHERE SPECIFIED OR INCLUDED;
                 ILLUMINATED SIGNS, ILLUMINATED NAME-PLATES
                 AND THE LIKE; PREFABRICATED BUILDINGS,
                 excluding products of 9405
   9405          Lamps and lighting fittings including searchlights and       S
                 spotlights and parts thereof, not elsewhere specified or
                 included; illuminated signs, illuminated name-plates and the
                 like, having a permanently fixed light source, and parts
                 thereof not elsewhere specified or included
   ex Chapter 95 TOYS, GAMES AND SPORTS REQUISITES; PARTS                     NS
                 AND ACCESSORIES THEREOF, excluding products of
                 9503
   9503          Other toys; reduced-size («scale») models and similar        S
                 recreational models, working or not; puzzles of all kinds
   Chapter 96    MISCELLANEOUS MANUFACTURED ARTICLES                          NS
EN                                            64                                 EN
 ---pagebreak---                                           ANNEX III
                          CONVENTIONS REFERRED TO ARTICLE 9
                                            PART A
                  Core human and labour rights UN/ILO Conventions
   1.  International Covenant on Civil and Political Rights
   2.  International Covenant on Economic Social and Cultural Rights
   3.  International Convention on the Elimination of All Forms of Racial Discrimination
   4.  Convention on the Elimination of All Forms of Discrimination Against Women
   5.  Convention Against Torture and other Cruel, Inhuman or Degrading Treatment or
       Punishment,
   6.  Convention on the Rights of the Child
   7.  Convention on the Prevention and Punishment of the Crime of Genocide
   8.  Minimum Age for Admission to Employment (N° 138)
   9.  Prohibition and Immediate Action for the Elimination of the Worst Forms of Child
       Labour (N° 182)
   10. Abolition of Forced Labour Convention (N° 105)
   11. Forced Compulsory Labour Convention (N° 29)
   12. Equal Remuneration of Men and Women Workers for Work of Equal Value Convention
       (N° 100)
   13. Discrimination in Respect of Employment and Occupation Convention (N° 111)
   14. Freedom of Association and Protection of the Right to Organise Convention (N° 87)
   15. Application of the Principles of the Right to Organise and to Bargain Collectively
       Convention (N°98).
   16. International Convention on the Suppression and Punishment of the Crime of Apartheid.
                                            PART B
             Conventions related to environment and governance principles
   17. Montreal Protocol on Substances that deplete the Ozone Layer
   18. Basel Convention on the Control of Transboundary Movements of Hazardous Wastes
       and Their Disposal
   19. Stockholm Convention on persistent Organic Pollutants
   20. Convention on International Trade in Endangered Species
   21. Convention on Biological Diversity
   22. Cartagena Protocol on Biosafety
   23. Kyoto Protocol to the UN Framework Convention on Climate Change
   24. UN Single Convention on Narcotic Drugs (1961)
   25. UN Convention on Psychotropic Substances (1971)
   26. UN Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances
       (1988)
   27. Mexico UN Convention against Corruption.
EN                                             65                                            EN
 ---pagebreak---                                                                                 […]
               FINANCIAL STATEMENT
                                                                                DATE: 20.10.2004
   1.    BUDGET HEADING:                                                        APPROPRIATIONS:
         […]                                                                    […]
   2.    TITLE:
         Council Regulation applying a scheme of generalised tariff preferences
   3.    LEGAL BASIS:
         […]
   4.    AIMS:
         The aim of the proposed Regulation is to apply a scheme of generalised tariff
         preferences for the first cycle of the decade from 1.7.2005 to 2015.
   5.    FINANCIAL IMPLICATIONS                      12 MONTH        CURRENT          FOLLOWING
                                                      PERIOD        FINANCIAL          FINANCIAL
                                                                       YEAR               YEAR
                                                                         [n]              [n+1]
                                                    (EUR million)  (EUR million)      (EUR million)
   5.0   EXPENDITURE                                     […]            […]                […]
         -        CHARGED TO THE EC BUDGET
         (REFUNDS/INTERVENTIONS)
         -        NATIONAL AUTHORITIES
         -        OTHER
   5.1   REVENUE                                         […]            […]                […]
         -        OWN RESOURCES OF THE EC
         (LEVIES/CUSTOMS DUTIES)
         -        NATIONAL
                                                       [n+2]        [n+3]        [n+4]       [n+5]
   5.0.1 ESTIMATED EXPENDITURE                          […]          […]          […]         […]
   5.1.1 ESTIMATED REVENUE                              […]          […]          […]         […]
   5.2   METHOD OF CALCULATION:
         […]
   6.0   CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE
         RELEVANT CHAPTER OF THE CURRENT BUDGET?                                            YES NO
   6.1   CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF
         THE CURRENT BUDGET?                                                                YES NO
   6.2   WILL A SUPPLEMENTARY BUDGET BE NECESSARY?                                          YES NO
   6.3   WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS?                          YES NO
   OBSERVATIONS:
   The regulation does not incur costs charged to the EC budget. Its application does, however,
   entail loss of customs revenue. The annual loss of customs revenue for the draft regulation is
   estimated to be EUR 2,2 billion (based on GSP statistics for the year 2003).
   The proposed regulation entails some changes with respect to the current one. These relate to
   changes in the graduation mechanism and establishing a new special arrangement for
   sustainable developed (merging three previous arrangements). The draft regulation also
   proposes extending the product coverage by including in the general arrangement some
   products covered by the previous drug regime and in the new incentive arrangement products
   of the previous drug regime as well as some products previously covered only by the general
   arrangement. It is not expected that these changes would mean a significant change in loss of
   revenue compared to the present situation.
EN                                                 66                                               EN