Article 1 Preferential arrangements
1. Products originating in Pakistan and included in Annex I shall be exempt from customs duties upon import into the Union. 2. Products originating in Pakistan and included in Annex II shall be admitted for import into the Union subject to the special provisions laid down in Article 3.
Article 2 Conditions for entitlement to the preferential arrangements
1. Entitlement to benefit from the preferential arrangements introduced in Article 1 shall be subject to: (a) compliance with the rules of origin of products and the procedures related thereto as provided for in Part I, Title IV, Chapter 2, Section 1 and Section 1A, subsections 1 and 2 of Regulation (EEC) No 2454/93, with the exception of Articles 68 to 71, 90 to 97i and Article 97j(2) of those Sections. However, as regards cumulation of origin for the purpose of the determination of the originating status of products covered by the arrangements introduced in Article 1 of this Regulation, only cumulation with the materials originating in the Union is allowed. Regional cumulation and other types of cumulation with the exception of the cumulation with materials originating in the Union, is not allowed; (b) compliance with the methods of administrative cooperation as provided for in Part I, Title IV, Chapter 2, Section 1, subsection 3 of Regulation (EEC) No 2454/93; (c) Pakistan not engaging in serious and systematic violations of human rights, including core labour rights, fundamental principles of democracy and the rule of law; (d) Pakistan abstaining from introducing new or increasing existing export duties or charges having equivalent effect or any other restriction or prohibition on the export or sale for export of any materials primarily used in the production of any of the products covered by those preferential arrangements destined for the territory of the Union, from 1 July 2012. 2. Certificates of origin ‘Form A’ issued by the competent authorities of Pakistan pursuant to this Regulation shall bear the following endorsement in box 4 ‘Autonomous measure — Regulation (EU) No 1029/2012 ( 5 ) ’.
Article 3 Tariff quotas
1. Products listed in Annex II shall be admitted for import into the Union with the exemption of customs duties within the limits of Union tariff quotas as set out in that Annex. 2. The tariff quotas referred to in paragraph 1 and listed in Annex II shall be administered by the Commission in accordance with Articles 308a, 308b and 308c of Regulation (EEC) No 2454/93.
Article 4 Removal of products from the scope of this Regulation
1. Where, in the calendar year 2012 or 2013, imports based on customs import data for a product originating from Pakistan and included in Annex I increase, in volume, by 25 % or more, as compared to the average of the years 2009 to 2011, that product shall be removed from the scope of this Regulation for the remainder of that year. For the purposes of this paragraph, the Commission shall be empowered to adopt delegated acts, in accordance with Article 6, to amend Annex I to remove that product from the scope of this Regulation for the remainder of that year. 2. Upon the entry into force of the delegated act, imports of the product referred to in paragraph 1 shall be subject to ‘most-favoured-nation’ or other applicable duties.
Article 5 Technical adjustments to the Annexes
The Commission shall be empowered to adopt delegated acts in accordance with Article 6 to amend the Annexes in order to incorporate amendments and technical adjustments made necessary by amendments to the Combined Nomenclature and to the TARIC subdivisions.
Article 6 Exercise of the delegation
1. The power to adopt the delegated acts referred to in Articles 4 and 5 is conferred on the Commission subject to the conditions laid down in this Article. 2. The power to adopt delegated acts referred to in Articles 4 and 5 shall be conferred on the Commission for the period of application of this Regulation. 3. The delegation of power referred to in Articles 4 and 5 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force. 4. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. 5. A delegated act adopted pursuant to Articles 4 and 5 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.
Article 7 Urgency procedure
1. Delegated acts adopted under this Article shall enter into force without delay and shall apply as long as no objection is expressed in accordance with paragraph 2. The notification of a delegated act to the European Parliament and to the Council shall state the reasons for the use of the urgency procedure. 2. Either the European Parliament or the Council may object to a delegated act in accordance with the procedure referred to in Article 6(5). In such a case, the Commission shall repeal the act without delay following the notification of the decision to object by the European Parliament or by the Council.
Article 8 Committee procedure
1. The Commission shall be assisted by the Customs Code Committee established by Articles 247a(1) and 248a(1) of Council Regulation (EEC) No 2913/92 ( 6 ) . That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011. That Committee may examine any matter relating to the application of this Regulation, raised by the Commission or at the request of a Member State. 2. Where reference is made to this paragraph, Article 8 of Regulation (EU) No 182/2011, in conjunction with Article 5 thereof, shall apply.
Article 9 Temporary suspension
1. Where the Commission finds that there is sufficient evidence of failure to comply with the conditions set out in Article 2 it may, in order to respond to this urgency, by means of immediately applicable implementing acts suspend in whole or in part the preferential arrangements provided for in this Regulation for a period of not more than six months, provided that it has first: (a) informed the Committee referred to in Article 8(1); (b) called on the Member States to take such precautionary measures as are necessary in order to safeguard the financial interests of the Union or to secure Pakistan's compliance with Article 2; (c) published a notice in the Official Journal of the European Union stating that there are grounds for reasonable doubt concerning the application of the preferential arrangements or Pakistan's compliance with Article 2 which may call into question its right to continue enjoying the benefits granted by this Regulation; (d) informed Pakistan of any decision taken in accordance with this paragraph, before it becomes effective. 2. On conclusion of the period of temporary suspension, the Commission shall, by means of implementing acts, decide either to terminate the suspension or to extend its period of application. 3. The implementing acts referred to in paragraphs 1 and 2 shall be adopted in accordance with the procedure referred to in Article 8(2). 4. Member States shall communicate to the Commission all relevant information that may justify the temporary suspension of preferential arrangements or its extension.
Article 10 Report
No later than 31 December 2015, the Commission shall submit a report to the European Parliament and to the Council on the operation and effects of this Regulation.
Article 11 Entry into force and application
1. This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union . 2. It shall apply from the date of its entry into force until 31 December 2013.