Article 1 
2. For the purposes of the Annex to this Regulation, the term ‘MFN’ shall be taken to mean the lowest rate of duty appearing in column 3 or 4, taking into account the periods of application mentioned or referred to in that column, of the second part of Annex I of Regulation (EEC) No 2658/87. 3. Subject to paragraph 4, the final rate of preferential duty calculated in accordance with this Regulation shall be rounded down to the first decimal place. 4. Where the result of calculating the rate of preferential duty in application of paragraph 3 is one of the following, the preferential rate shall be considered a full exemption: — 1 % or less in the case of ad valorem duties, or — EUR 0,5 or less per individual euro amount in the case of specific duties.
Article 2 
1. The customs duties on the products listed in the Annex, originating in the Republic of South Africa, shall be reduced to the levels provided in the Annex and within the limits of the tariff quotas specified in that Annex, without prejudice to Article 8. 2. These tariff quotas shall be managed in accordance with Articles 308a to 308c of Commission Regulation (EEC) No 2454/93. 3. The reductions of tariff quota duty referred to in the Annex are expressed as a percentage of the customs duties effectively applied to South African goods, as defined in Article 1(1) on the day of provisional entry into force of the Agreement.
Article 3 
The Commission shall open an annual duty-free tariff quota for cheese and curd of CN codes 0406 10 20 , 0406 10 80 , 0406 20 90 , 0406 30 10 , 0406 30 31 , 0406 30 39 , 0406 30 90 , 0406 40 90 , 0406 90 01 , 0406 90 21 , 0406 90 50 , 0406 90 69 , 0406 90 78 , 0406 90 86 , 0406 90 87 , 0406 90 88 , 0406 90 93 and 0406 90 99 originating in the Republic of South Africa. The initial annual volume of this tariff quota shall be 5 000 tonnes. An annual growth factor of 5 % shall apply to this volume. The resulting figure shall be rounded up to the next complete unit.
Article 4 
After the first year, the tariff quotas referred to in Article 2 shall be increased each year by the percentage specified as the annual growth factor in the Annex. The resulting figure shall be rounded up to the next complete unit.
Article 5 
Without prejudice to Articles 2 to 4, the amendments and technical adaptations of this Regulation made necessary by amendments to the Combined Nomenclature and Taric codes or arising from the conclusion of agreements, protocols or exchanges of letters between the Community and the Republic of South Africa, shall be adopted by the Commission in accordance with the management procedure set out in Article 6(2).
Article 6 
1. The Commission shall be assisted by the Customs Code Committee, hereinafter referred to as ‘the Committee’. 2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply. The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at three months. 3. The Committee shall adopt its rules of procedure.
Article 7 
1. Products put into free circulation with the benefit of the preferential rates provided under the Agreement, other than those covered by Article 2, shall be subject to surveillance. The Commission in consultation with the Member States shall decide the products to which this surveillance applies. 2. Article 308d of Regulation (EEC) No 2454/93 shall apply. 3. The Member States and the Commission shall cooperate closely to ensure that this measure is complied with.
Article 8 
The tariff quota referred to at order number 09.1825 in the Annex shall be opened for the first time from the entry into force of the EC/RSA agreement on wines and spirits.
Article 9 
This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Communities . It shall apply from the date of entry into force of the Agreement ( 6 ).