Explanatory Memorandum to COM(1998)389-1 - Community position on an amendment to Protocol 4 on the definition of the concept of 'originating products' and methods of administrative cooperation set out in the Europe Agreement with Bulgaria

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dossier COM(1998)389-1 - Community position on an amendment to Protocol 4 on the definition of the concept of 'originating products' and methods of ...
source COM(1998)389 EN
date 17-07-1998
COMMISSION OF THE EUROPEAN COMMUNITIES

Contents

1.

Brussels, 17.07.1998 COM(1998) 389 final


2.

98/ 0254 (ACC)


3.

98/ 0255 (ACC)


4.

98/ 0256 (ACC)


5.

98/ 0257 (ACC)


6.

98/ 0258 (ACC)


7.

98/ 0259 (ACC)


8.

98/ 0260 (ACC)


9.

98/0261 (ACC)


10.

98/ 0262 (ACC)


11.

98/ 0263 (ACC)


Proposals for COUNCIL DECISIONS on a Community position on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Europe Agreement between the European Communities and Bulgaria, the Czech Republic, Poland, Hungary, the Slovak Republic and Romania

Proposals for COUNCIL DECISIONS

on a Community position on an amendment to Protocol 3 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Europe Agreement between the European Communities and the Republic of Estonia, the Republic of Latvia and the Republic of Lithuania

Proposal for a COUNCIL DECISION

on a Community position on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Interim Agreement on trade and trade-related matters between the European Communities and the Republic of Slovenia

Draft

DECISION N° .../ OF THE EC-SWITZERLAND JOINT COMMITTEE amending Protocol 3 to the Agreement between the European Economic Community and the Swiss Confederation concerning the definition of the concept of “originating products” and methods of administrative

cooperation

Draft

DECISION N° .../ OF THE EC-NORWAY JOINT COMMITTEE amending Protocol 3 to the Agreement between the European Economic Community and the Kingdom of Norway concerning the definition of the concept of “originating products” and methods of administrative

cooperation

Draft

DECISION N° .../ OF THE EC-ICELAND JOINT COMMITTEE amending Protocol 3 to the Agreement between the European Economic Community and the Republic of Iceland concerning the definition of the concept of “originating products” and methods of administrative

cooperation

Draft

DECISION N° .../ OF THE EEA JOINT COMMITTEE No .. amending Protocol 4 to the EEA Agreement on rules of origin - Drafts common position of the Community -

(presented by the Commission)

12.

L GENERAL


1.1 The rules of origin are essential to the correct functioning of the free trade agreements between the Community and its trading partners.

1.2 The European Council meeting in Essen in December 1994 drew attention to the fact that variations in the origin rules included in the different agreements signed by the Community constituted a barrier to trade. Therefore it initiated a programme aimed at applying identical origin rules and thereby putting trade between the Community, the CEECs, the Baltic States, the EFTA and the EEA countries on the same footing. It also decided that other countries in a situation similar to those mentioned above could be similarly integrated into the system when the time came,.

1.3 Between 1 January and 1 July 1997 the text of the protocols on the rules of origin annexed to the agreements the Community has concluded with the countries mentioned at 1.2 above and with Slovenia was replaced by a standard text which also provides that all those countries can apply arrangements for cumulation of working and processing in trade with each other. This created a vast zone in which “originating products” could move around and obtain preferential tariff treatment.

1.4 The origin rules are not immutable. They must be adaptable to the political and economic requirements of the free trade area in which they apply. Some changes have, therefore, already been deemed necessary to the rules which entered into force in 1997.

13.

2. AMENDMENTS TO THE RULES OF ORIGIN IN THE EU-CEECS, EU-


BALTIC STATES, EU-EFTA, EU-SLOVENIA AND EEA AGREEMENTS

2.1 The EC/Turkey Association Council meeting of 29 April 1997 granted Turkey’s request be integrated into the above system of standardised rules of origin. However, for the present, that integration will only apply to industrial goods, i.e. products not covered by Annex II to the Treaty. The attached texts have been completed as a consequence.

Amongst other things, the standard origin rules provide, thatnmti^l December

. . * *

1998 flat rates may be used where drawback is prohibited or exemptions from customs duty are granted. Recently Bulgaria and Hungary asked for this option to be prolonged for a further two years. This will not give rise to any economic difficulties for the Community. It is there§?re proposed to grant that request which only concerns the agreements with the CEECs, the Baltic States and Slovenia.

Since the entry into force of the standard protocol on rules of origin some Articles have given rise to difficulties of interpretation or application. Such is the case of Articles 3 and 4 for which new wording is proposed. That amendment has no impact on determining whether or not a given product has originating status, but only concerns the matter of how to determine which country should be taken as the country of origin. That amendment has no impact on preferential treatment for most sectors In those cases where preferential treatment is distinguished according to the country of origin the economic consequences for the Community are negligible compared with the total number of transactions. That amendment represents an administrative simplification important both to administrations and economic operators.

As a preliminary response to the Community’s undertaking on trade with the successor republics to the former Yugoslavia it is proposed that the principle of territoriality provided for in Article 12 of the EEA Agreement be extended to the CEECs, the Baltic States and Slovenia.

A few technical amendments to Annexes I and II to the protocols are also proposed. Those amendments concern products whose raw materials are in short supply in the trade zone.

14.

CONCLUSION


The purpose of the annexed 14 proposals is to improve the functioning of the common system of origin rules. They should be taken as a single package. If the current arrangements allowing cumulation of working and processing are to remain in force, it is essential that they enter into force at the same time, i.e. on 1 January 1999.

The Commission therefore calls on the Council to draw up a common position for presentation to the committees provided for in each of the agreements.

Proposal for a 98/ 0254 (ACQ

COUNCIL DECISION

on a Community position on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Europe Agreement between the European Communities and Bulgaria

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof,

Having regard to Article 2 i of the Council and Commission Decision of 19 December 1994 on the conclusion of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Bulgaria, of the other part.

Having regard to the Commission proposal, .

Whereas Article 38 of Protocol 4 to the said Europe Agreement provides that the Association Council may amend the provisions of the Protocol,

HAS DECIDED:

The position to be adopted by the Community within the Association Council created by virtue of Article 105 of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Bulgaria, of the other part, on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Agreement shall be based on the draft Association Council decision annexed to this Decision.

Done at Brussels,

15.

For the Council The President


EUROPE AGREEMENT

establishing an association between the European Communities and their Member

States, of the one part, and

the Republic of Bulgaria, of the other part

DRAFT

Decision No of the Association Council

of...

amending Protocol 4 on the definition of the concept of “originating products’* and

methods of administrative cooperation

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Bulgaria, of the other part, signed in Brussels on 8 march 1993 and in particular Article 38 of Protocol 4 thereof.

Whereas the definition of the term “originating products” needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and Switzerland;

Whereas it would seem advisable to maintain in operation until 31 December 2000 the system of flat rate charges provided for in Article 15 in connection with the prohibition of drawback and exemption from customs duty;

Whereas, in view of the particular arrangement on industrial products obtaining between the Community and Turkey, it would also be appropriate to extend the cumulation system to such products originating in Turkey;

Whereas to facilitate trade and simplify administrative tasks it would be desirable to amend the wording of Articles 3, 4 and 12;

Whereas, to take account of changes in processing techniques and shortages of certain raw materials, some corrections must be made to the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status,

HAS DECIDED AS FOLLOWS:

16.

Article 1


Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation is hereby amended as follows:

1. Article l(i) shall be replaced by:

“(i) ‘added value’ shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 or, where the customs value is not known or cannot be ascertained, the first price verifiably paid for the products in the Community or Bulgaria.”

2. Articles 3 and 4 shall be replaced by:

Article 3

Cumulation in the European Community

1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be considered as originating in the Community if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)1 or Turkey2 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Community and each of these countries, provided that the working or processing carried out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Community.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Community shall provide Bulgaria, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

Article 4

Cumulation in Bulgaria

1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be considered as originating in Bulgaria if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)3 or Turkey4 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Bulgaria and each of these countries, provided that the working or processing carried out in Bulgaria goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in Bulgaria does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Bulgaria only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in Bulgaria.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Bulgaria, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be. applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

Bulgaria shall provide the Community, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

3. Article 12 shall be replaced by the following:

“1. Except as provided for in Article 2(1 )(c). Articles 3 and 4 and paragraph 3 of this Article, the conditions for acquiring originating status set out in Title II must continue to be fulfilled at all times in the Community or Bulgaria.

2. Except as provided for in Articles 3 and 4, where originating goods exported from the Community or Bulgaria to another country return, they must be considered as non-originating, unless it can be demonstrated to -tbe.satisfaction of the customs authorities that:

(a) the returning goods are the same as those that were exported; and

(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

3. The acquisition of originating status in accordance with the conditions set out in Title II shall not be affected by working or processing done outside the Community or Bulgaria on materials exported from the Community or Bulgaria and subsequently reimported there, provided:

(a) the said materials are wholly obtained in the Community or Bulgaria or have undergone working or processing beyond the insufficient operations listed in Article 7 prior to being exported; and

(b) it can be demonstrated to the satisfaction of the customs authorities that:

17.

i) the reimported goods have been obtained by working or processing the exported materials; and


ii) the total added value acquired outside the Community or Bulgaria by applying the provisions of this Article does not exceed 10% of the ex-works price of the end product for which originating status is claimed.

4. For the purposes of paragraph 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside the Community or Bulgaria. But where, in the list in Annex II, a rule setting a maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end product, the total value of the non-originating materials incorporated in the territory of the party concerned, taken together with the total added value acquired outside the Community or Bulgaria by applying the provisions of this Article, shall not exceed the stated percentage.

5. For the purposes of applying the provisions of paragraphs 3 and 4, “total added value” shall be taken to mean all costs arising outside the Community or Bulgaria, including the value of the materials incorporated there.

6. The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the conditions set out in the list in Annex II or which can be considered sufficiently worked or processed only if the general values fixed in Article 6(2) are applied.

7. The provisions of paragraphs 3 and 4 shall not apply to products coming under Chapters 50 to 63 of the Harmonised System.

8. Any working or processing of the kind covered by the provisions of this Article and done outside the Community or Bulgaria shall be done under the outward processing arrangements, or similar arrangements.”

4.

5. In the last paragraph of Article 15 i the date “31 December 1998” shall be replaced by “31 December 2000”.

6. In Article 26 the reference “C2/CP3” shall be replaced by “CN22/CN23”.

7. In Annex I, Note 5.2, “current conducting filaments” shall be added between “artificial man-made filaments” and “synthetic man-made staple fibres of polypropylene”.

8. In Annex I, Note 5.2 the fifth example (“A carpet with tufts ... are met ”) shall be deleted.

9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule shall be inserted:

HS

Heading

No

(1)
Description of product

(2)
Working or processing of non-originating materials that confers originating status

or (4)
2207Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength.Manufacture:

- using materials not classified in headings 2207 or 2208
II

/O

Chapter

57
Carpets and other textile floor coverings:
- Of needleloom felt
Manufacture from (1):

- natural fibres

or

- chemical materials or textile pulp
However:

- polypropylene filament of heading 5402,

- polypropylene fibres of heading 5503 or 5506,

- polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used provided their value does not exceed 40% of the ex-works price of the product
- jute fabric may be used as backing
- Of other felt
Manufacture from(l):

- natural fibres not carded or combed or otherwise processed for spinning,

or

- chemical materials or textile pulp
- Other
Manufacture from(l):

- coir or jute yam(a),

- synthetic or artificial filament yam

- natural fibres, or

- man-made staple fibres not carded or combed or otherwise processed for spinning

But jute fabric may be used as backing

The use of jute yam is authorised from 1.7.2000.

u
7006Glass of headings 7003, 7004 or 7005, bent, edgeworked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with other materials :

- glass plate substrate
Manufacture from materials
coated with dielectric thin film, semiconductor grade, in accordance with

SEMII standards1
(substrates) of heading 7006
- other
Manufacture from materials of heading 7001
44


12. In Annex II, the rule for HS heading 7601 shall be replaced by:

7601Unwrought aluminiumManufacture in which:

- all the materials used are classified within a heading other than that of the product; and

- the value of all the materials used does not exceed 50 % of the exworks price of the product
or

Manufacture by thermal or electrolytic treatment from unalloyed aluminium or waste and scrap of aluminium
If


13. The following is added after Annex IV:

"Annex V

18.

List of products originating in Turkey to which the provisions of Articles 3 and 4 do not apply, listed in the order of HS Chapters and Headings


Chapter 1

SEMII- Semiconductor Equipment and Materials Institute Incorporated.

19.

Chapter 2 Chapter 3 0401 to 0402 ex 0403 -



Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa


20.

0404 to 0410


21.

0504


22.

0511


Chapter 6

23.

0701 to 0709


ex 0710-ex 0711 -


Vegetables (uncooked or cooked by steaming or boiling in water), frozen Vegetables, except sweet corn of heading 0711 90 30, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption


24.

0712 to 0714 Chapter 8 ex Chapter 9 Chapter 10 Chapter 11 Chapter 12 ex 1302-1501tol514 ex 1515 -


ex 1516-


Coffee, tea, and spices, excluding mate of heading 0903


Pectin


ex 1517 and ex 1518 -

ex 1522-

Chapter 16 1701

ex 1702 -


Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as ‘opal-wax’

25.

Margarines, imitation lard and other prepared edible fats


Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras


Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 1702 30 59, 1702 50 00 and 1702 90 10

ex 2001 -molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds

Cucumbers and gherkins, onions, mango chutney, fruit of the genus Capsicum other than sweet peppers or pimentos, mushrooms and olives,
prepared or preserved by vinegar or acetic acid

26.

2002 and 2003


ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic
ex 2005 -acid, frozen, other than products of heading 2006, excluding potatoes in the form of flour or meal and flakes of sweet corn

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006, excluding potato
and sweet corn products

27.

2006 and 2007


ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or
2009preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants .
ex 2106 -Flavoured and coloured sugars, syrups and molasses
2204
2206
ex 2207 -Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher obtained from agricultural produce listed here
ex 2208 -Undenatured ethyl alcohol of an alcoholic strength by volume of less than

80% vol obtained from agricultural produce listed here.
2209
Chapter 23

2401
4501

28.

5301 and 5302 ”


h

29.

Article 2



That Decision shall enter into force on 1 January 1999.


30.

Done at



For the Association Council The President


FINANCIAL STATEMENT

31.

1. Budget heading: Chapter 12, Article 120


32.

2. Legal basis: Article 113 of the Treaty


3. Titles of the agreements in question:

Proposal for an amendment to the definition of the concept of “originating products” and the methods of administrative cooperation set out in Protocol 4 to the different Europe Agreements between the EC and the CEECs, the Baltic States and Slovenia and the Agreement on the European Economic Area, and in Protocol 3 to the free trade agreements between the EEC and the EFTA countries

4. Purpose:

To allow Central and Eastern European countries to continue applying flat rates where drawback is prohibited or exemption from customs duties is granted.

To extend the system to industrial products originating in Turkey and simplify or correct certain rules, particularly those on determining which country is to be considered the originating country.

5. Financial implications:

As, for the purposes of industrial products, Turkey is already in a customs union with the Community and these products are therefore already zero rated when imported into the Community, and as the purpose of the amendments is essentially to facilitate trade or simplify administrative tasks, this proposal would not seem to have any major financial implications.

Proposal for a COUNCIL DECISION

33.

98/ 0255 (ACC)


on a Community position on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Europe Agreement between the European Communities and the Czech Republic

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof,

Having regard to Article 2 i of the Council and Commission Decision of 19 December 1994 on the conclusion of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Czech Republic, of the other part,

Having regard to the Commission proposal,

Whereas Article 38 of Protocol 4 to the said Europe Agreement provides that the Association Council may amend the provisions of the Protocol,

HAS DECIDED:

The position to be adopted by the Community within the Association Council created by virtue of Article 104 of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part, on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Agreement shall be based on the draft Association Council decision annexed to this Decision.

Done at Brussels,

34.

For the Council The President


EUROPE AGREEMENT

establishing an association between the European Communities and their Member

States, of the one part, and

the Czech Republic, of the other part

DRAFT

Decision No___/.. of the Association Council

of...

amending Protocol 4 on the definition of the concept of “originating products” and

methods of administrative cooperation

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part, signed in Brussels on 4 October 1993 and in particular Article 38 of Protocol 4 thereof,

Whereas the definition of the term “originating products” needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and Switzerland;

Whereas it would seem advisable to maintain in operation until 31 December 2000 the system of flat rate charges provided for in Article 15 in connection with the prohibition of drawback and exemption from customs duty;

Whereas, in view of the particular arrangement on industrial products obtaining between the Community and Turkey, it would also be appropriate to extend the cumulation system to such products originating in Turkey;

Whereas to facilitate trade and simplify administrative tasks it would be desirable to amend the wording of Articles 3, 4 and 12;

Whereas, to take account of changes in processing techniques and shortages of certain raw materials, some corrections must be made to the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status,

HAS DECIDED AS FOLLOWS:

35.

Article 1


Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation is hereby amended as follows:

“(i) ‘added value’ shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 or, where the customs value is not known or cannot be ascertained, the first price verifiably paid for the products in the Community or the Cz^ph Republic.”

2. Articles 3 and 4 shall be replaced by:

Article 3

Cumulation in the European Community

1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be considered as originating in the Community if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)5 or Turkey6 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Community and each of these countries, provided that the working or processing carried out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Community.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Community shall provide the Czech Republic, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

Article 4

Cumulation in the Czech Republic

1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be considered as originating in the Czech Republic if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)7 or Turkey8 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Czech Republic and each of these countries, provided that the working or processing carried out in the Czech Republic goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Czech Republic does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Czech Republic only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Czech Republic.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Czech Republic, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Czech Republic shall provide the Community, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

3. Article 12 shall be replaced by the following:

“1. Except as provided for in Article 2(1 )(c), Articles 3 and 4 and paragraph 3 of this Article, the conditions for acquiring originating status set out in Title II must continue to be fulfilled at all times in the Community or the Czech Republic.

2. Except as provided for in Articles 3 and 4, where originating goods exported from the Community or the Czech Republic to another country return, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that:

(a) the returning goods are the same as those that were exported; and

*>' .

(b) they have not undergone any operatron beyond that necessary to preserve them in good condition while in that country or while being exported.

3. The acquisition of originating status in accordance with the conditions set out in Title II shall not be affected by working or processing done outside the Community or the Czech Republic on materials exported from the Community or the Czech Republic and subsequently reimported there, provided:

(a) the said materials are wholly obtained in the Community or the Czech Republic or have undergone working or processing beyond the insufficient operations listed in Article 7 prior to being exported; and

(b) it can be demonstrated to the satisfaction of the customs authorities that:

36.

i) the reimported goods have been obtained by working or processing the exported materials; and


ii) the total added value acquired outside the Community or the Czech

Republic by applying the provisions of this Article does not exceed 10% of the ex-works price of the end product for which originating status is claimed. .

4. For the purposes of paragraph 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside the Community or the Czech Republic. But where, in the list in Annex II, a rule setting a maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end product, the total value of the non-originating materials incorporated in the territory of the party concerned, taken together with the total added value acquired outside the Community or Bulgaria by applying the provisions of this Article, shall not exceed the stated percentage.

5. For the purposes of applying the provisions of paragraphs^ and 4, “total added value” shall be taken to mean all costs arising outside the Community or the Czech Republic, including the value of the materials incorporated there.

6. The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the conditions set out in the list in Annex II or which can be considered sufficiently worked or processed only if the general values fixed in Article 6(2) are applied.

7. The provisions of paragraphs 3 and 4 shall not apply to products coming under Chapters 50 to 63 of the Harmonised System.

8. Any working or processing of the kind covered by the provisions of this Article and done outside the Community or the Czech Republic shall be done under the outward processing arrangements, or similar arrangements.”

4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase “referred* tcMir-Article 4”

shall be replaced by “referred to in Articles 3 and 4”. *

5. In the last paragraph of Article 15 i the date “31 December 1998” shall be replaced by “31 December 2000”.

6. In Article 26 the reference “C2/CP3” shall be replaced by “CN22/CN23”.

7. In Annex I, Note 5.2, “current conducting filaments” shall be added between “artificial man-made filaments” and “synthetic man-made staple fibres of polypropylene”.

8. In Annex I, Note 5.2 the fifth example (“A carpet with tufts ... are met.”) shall be deleted.

9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule shall be inserted:

HS

Heading

No

(1)
Description of product

(2)
Working or processing of non-originating materials that confers originating status

or (4)
2207Undenatured ethyl alcohol of an alcoholic strength by volume of

80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength.
Manufacture:

- using materials not classified in headings 2207 or 2208
Chapter

57
Carpets and other textile floor coverings:
- Of needleloom felt
Manufacture from i:

- natural fibres

or

- chemical materials or textile pulp
However:

- polypropylene filament of heading 5402,

- polypropylene fibres of heading 5503 or 5506,

- polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used provided their value does not exceed 40% of the ex-works price of the product
- jute fabric may be used as backing *
-Of other feltManufacture from( 1):

- natural fibres not carded or combed or otherwise processed for spinning,

or

- chemical materials or textile pulp
- Other
Manufacture from(l):

-coir or juteyarn9,

- synthetic or artificial filament yam

- natural fibres, or

- man-made staple fibres not carded or combed or otherwise processed for spinning

But jute fabric may be used as backing
ft
7006Glass of headings 7003, 7004 or 7005, bent, edgeworked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with other materials:

- glass plate substrate
Manufacture from materials
coated with dielectric thin film, semiconductor grade, in accordance with

SEMII standards1
(substrates) of heading 7006
- other
Manufacture from materials of heading 7001
44

12. In Annex II, the rule for HS heading 7601 shall be replaced by:

7601Unwrought aluminiumManufacture in which:

- all the materials used are classified within a heading other than that of the product; and

- the value of all the materials used does not exceed 50 % of the exworks price of the product
or

Manufacture by thermal or electrolytic treatment from unalloyed aluminium or waste and scrap of aluminium
It

13. The following is added after Annex IV:

"Annex V

37.

List of products originating in Turkey to which the provisions of Articles 3 and 4 do not apply, listed in the order of HS Chapters and Headings


Chapter 1

Chapter 2

s

38.

Chapter 3 0401 to 0402 ex 0403 -


39.

0404 to 0410


40.

0504


41.

0511


Chapter 6

42.

0701 to 0709


ex 0710-ex 0711 -

43.

0712 to 0714 Chapter 8 ex Chapter 9 Chapter 10 Chapter 11 Chapter 12 ex 1302 -1501tol514 ex 1515-


ex 1516 -


Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa


Vegetables (uncooked or cooked by steaming or boiling in water), frozen Vegetables, except sweet corn of heading 0711 90 30, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption


Coffee, tea, and spices, excluding mate of heading 0903


Pectin


Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as ‘opal-wax’


44.

ex 1517 and ex 1518 —


ex 1522 -

Chapter 16 1701

ex 1702 -


Margarines, imitation lard and other prepared edible fats

Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras


Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 1702 30 59, 1702 50 00 and 1702 90 10

45.

1703


46.

1801 and 1802


ex 1902- Pasta, stuffed, containing more than 20% by weight of fish, crustaceans,
ex 2001 -molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds

Cucumbers and gherkins, onions, mango chutney, fruit of the genus Capsicum other than sweet peppers or pimentos, mushrooms and olives.
prepared or preserved by vinegar or acetic acid

47.

2002 and 2003


ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic
ex 2005 -acid, frozen, other than products of heading 2006, excluding potatoes in the form of flour or meal and flakes of sweet corn

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006, excluding potato
and sweet corn products

48.

2006 and 2007


ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or
2009preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants .
ex 2106 -Flavoured and coloured sugars, syrups and molasses
2204
2206
ex 2207 -Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher obtained from agricultural produce listed here
ex 2208 -Undenatured ethyl alcohol of an alcoholic strength by volume of less than

80% vol obtained from agricultural produce listed here.
2209
Chapter 23

2401
4501

49.

5301 and 5302 ”


cUl

50.

Article 2



That Decision shall enter into force on 1 January 1999.


51.

Done at



For the Association Council The President


FINANCIAL STATEMENT

52.

1. Budget heading: Chapter 12, Article 120


53.

2. Legal basis: Article 113 of the Treaty


3. Titles of the agreements in question:

Proposal for an amendment to the definition of the concept of “originating products” and the methods of administrative cooperation set out in Protocol 4 to the different Europe Agreements between the EC and the CEECs, the Baltic States and Slovenia and the Agreement on the European Economic Area, and in Protocol 3 to the free trade agreements between the EEC and the EFTA countries

4. Purpose:

To allow Central and Eastern European countries to continue applying flat rates where drawback is prohibited or exemption from customs duties is granted.

To extend the system to industrial products originating in Turkey and simplify or correct certain rules, particularly those on determining which country is to be considered the originating country.

5. Financial implications:

As, for the purposes of industrial products, Turkey is already in a customs union with the Community and these products are therefore already zero rated when imported into the Community, and as the purpose of the amendments is essentially to facilitate trade or simplify administrative tasks, this proposal would not seem to have any major financial implications.

cLt

54.

98/ 0256 (ACC)


Proposal for a COUNCIL DECISION

on a Community position on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Europe Agreement between the European Communities and Poland

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof.

Having regard to Article 2 i of the Council and Commission Decision of 13 December 1993 on the conclusion of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Poland, of the other part.

Having regard to the Commission proposal,

Whereas Article 38 of Protocol 4 to the said Europe Agreement provides that the Association Council may amend the provisions of the Protocol,

HAS DECIDED:

The position to be adopted by the Community within the Association Council created by virtue of Article 102 of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Poland, of the other part, on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Agreement shall be based on the draft Association Council decision annexed to this Decision.

Done at Brussels,

55.

For the Council The President


EUROPE AGREEMENT

establishing an association between the European Communities and their Member

States, of the one part, and

the Republic of Poland, of the other part

DRAFT

Decision No of the Association Council

of...

amending Protocol 4 on the definition of the concept of “originating products” and

methods of administrative cooperation

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Poland, of the other part, signed in Brussels on 16 December 1991 and in particular Article 38 of Protocol 4 thereof,

Whereas the definition of the term “originating products” needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and Switzerland;

Whereas it would seem advisable to maintain in operation until 31 December 2000 the system of flat rate charges provided for in Article 15 in connection with the prohibition of drawback and exemption from customs duty;

Whereas, in view of the particular arrangement on industrial products obtaining between the Community and Turkey, it would also be appropriate to extend the cumulation system to such products originating in Turkey;

Whereas to facilitate trade and simplify administrative tasks it would be desirable to amend the wording of Articles 3, 4 and 12;

Whereas, to take account of changes in processing techniques and shortages of certain raw materials, some corrections must be made to the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status,

HAS DECIDED AS FOLLOWS:

56.

Article 1


Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation is hereby amended as follows:

“(i) ‘added value’ shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 or, where the customs value is not known or cannot be ascertained, the first price verifiably paid for the products in the Community or Poland.”

2. Articles 3 and 4 shall be replaced by:

Article 3

Cumulation in the European Community

1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be considered as originating in the Community if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)10 or Turkey11 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Community and each of these countries, provided that the working or processing carried out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Community.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Community shall provide Poland, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

Article 4

Cumulation in Poland

1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be considered as originating in Bulgaria if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)12 or Turkey13 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Poland and each of these countries, provided that the working or processing carried out in Poland goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in Poland does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Poland only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the countiy which accounts for the highest value of originating materials used in the manufacture in Poland.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Poland, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be. applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

Poland shall provide the Community, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

3. Article 12 shall be replaced by the following:

“1. Except as provided for in Article 2(1 )(c). Articles 3 and 4 and paragraph 3 of this Article, the conditions for acquiring originating status set out in Title II must continue to be fulfilled at all times in the Community or Poland.

57.

2. Except as provided for in Articles 3 and 4, where originating goods exported from the Community or Poland to another country return, they must be


considered as non-originating, unless it can be demonstrated to-the. satisfaction of the customs authorities that:

(a) the returning goods are the same as those that were exported; and

(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

3. The acquisition of originating status in accordance with the conditions set out in Title II shall not be affected by working or processing done outside the Community or Poland on materials exported from the Community or Poland and subsequently reimported there, provided:

(a) the said materials are wholly obtained in the Community or Poland or have undergone working or processing beyond the insufficient operations listed in Article 7 prior to being exported; and

(b) it can be demonstrated to the satisfaction of the customs authorities that:

58.

i) the reimported goods have been obtained by working or processing the exported materials; and


ii) the total added value acquired outside the Community or Poland by applying the provisions of this Article does not exceed 10% of the ex-works price of the end product for which originating status is claimed.

4. For the purposes of paragraph 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside the Community or Poland. But where, in the list in Annex II, a rule setting a maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end product, the total value of the non-originating materials incorporated in the territory of the party concerned, taken together with the total added value acquired outside the Community or Poland by applying the provisions of this Article, shall not exceed the stated percentage.

5. For the purposes of applying the provisions of paragraphs 3 and 4, “total added value” shall be taken to mean all costs arising outside the Community or Poland, including the value of the materials incorporated there.

6. The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the conditions set out in the list in Annex II or which can be considered sufficiently worked or processed only if the general values fixed in Article 6(2) are applied.

7. The provisions of paragraphs 3 and 4 shall not apply to products coming under Chapters 50 to 63 of the Harmonised System.

8. Any working or processing of the kind covered by the provisions of this Article and done outside the Community or Poland shall be done under the outward processing arrangements, or similar arrangements.”

4.

5. In the last paragraph of Article 15 i the date “31 December 1998” shall be replaced by “31 December 2000”.

6. In Article 26 the reference “C2/CP3” shall be replaced by “CN22/CN23”.

7. In Annex I, Note 5.2, “current conducting filaments” shall be added between “artificial man-made filaments” and “synthetic man-made staple fibres of polypropylene”.

8. In Annex I, Note 5.2 the fifth example (“A carpet with tufts ... are met.”) shall be deleted.

9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule shall be inserted:

HS

Heading

No

(1)
Description of product

(2)
Working or processing of non-originating materials that confers originating status

' or (4)
2207Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength.Manufacture:

- using materials not classified in headings 2207 or 2208
H
Chapter

57
Carpets and other textile floor coverings:
- Of needleloom felt
Manufacture from i:

- natural fibres

or

- chemical materials or textile pulp
However:

- polypropylene filament of heading 5402,

- polypropylene fibres of heading 5503 or 5506,

- polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used provided their value does not exceed 40% of the ex-works price of the product
- jute fabric may be used as backing
- Of other felt
Manufacture from(l):

- natural fibres not carded or combed or otherwise processed for spinning,

or

- chemical materials or textile pulp
- Other
Manufacture from(l):

- coir or jute yam(a),

- synthetic or artificial filament yam

- natural fibres, or

- man-made staple fibres not carded or combed or otherwise processed for spinning

But jute fabric may be used as backing

The use of jute yam is authorised from 1.7.2000.

It
7006Glass of headings 7003, 7004 or 7005, bent, edgeworked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with other materials :

- glass plate substrate
Manufacture from materials
coated with dielectric thin film, semiconductor grade,in accordance with

SEMII standards1
(substrates) of heading 7006
- other
Manufacture from materials of heading 7001
u

12. In Annex II, the rule for HS heading 7601 shall be replaced by:

It
7601Unwrought aluminiumManufacture in which:

- all the materials used are classified within a heading other than that of the product; and

- the value of all the materials used does not exceed 50 % of the exworks price of the product
or

Manufacture by thermal or electrolytic treatment from unalloyed aluminium or waste and scrap of aluminium
II

13. The following is added after Annex IV:

"Annex V

59.

List of products originating in Turkey to which the provisions of Articles 3 and 4 do not apply, listed in the order of HS Chapters and Headings


Chapter 1

SEMII- Semiconductor Equipment and Materials Institute Incorporated.

Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa

Chapter 2 Chapter 3 0401 to 0402 ex 0403 -

60.

0404 to 0410


61.

0504


62.

0511


Chapter 6

63.

0701 to 0709


ex 0710-ex 0711 -


Vegetables (uncooked or cooked by steaming or boiling in water), frozen Vegetables, except sweet com of heading 0711 90 30, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption


64.

0712 to 0714 Chapter 8 ex Chapter 9 Chapter 10 Chapter 11 Chapter 12 ex 1302-1501tol514 ex 1515 -


ex 1516 -


Coffee, tea, and spices, excluding mate of heading 0903


Pectin


Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as ‘opal-wax’


65.

ex 1517 and ex 1518 -


ex 1522-

Chapter 16 1701

ex 1702 -

Margarines, imitation lard and other prepared edible fats

Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras

Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 1702 30 59, 1702 50 00 and 1702 90 10

66.

1703


67.

1801 and 1802


ex 1902- Pasta, stuffed, containing more than 20% by weight of fish, crustaceans,
ex 2001 -molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds

Cucumbers and gherkins, onions, mango chutney, fruit of the genus Capsicum other than sweet peppers or pimentos, mushrooms and olives,
prepared or preserved by vinegar or acetic acid

68.

2002 and 2003


ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic
ex 2005 -acid, frozen, other than products of heading 2006, excluding potatoes in the form of flour or meal and flakes of sweet com

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006, excluding potato
and sweet corn products

69.

2006 and 2007


ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or
2009preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants .
ex 2106 -Flavoured and coloured sugars, syrups and molasses
2204
2206
ex 2207 -Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher obtained from agricultural produce listed here
ex 2208 -Undenatured ethyl alcohol of an alcoholic strength by volume of less than

80% vol obtained from agricultural produce listed here.
2209
Chapter 23

2401
4501
5301 and 5302 ”

70.

Article 2



That Decision shall enter into force on 1 January 1999.


71.

Done at



For the Association Council The President


FINANCIAL STATEMENT

72.

1. Budget heading: Chapter 12, Article 120


73.

2. Legal basis: Article 113 of the Treaty


3. Titles of the agreements in question:

Proposal for an amendment to the definition of the concept of “originating products” and the methods of administrative cooperation set out in Protocol 4 to the different Europe Agreements between the EC and the CEECs, the Baltic States and Slovenia and the Agreement on the European Economic Area, and in Protocol 3 to the free trade agreements between the EEC and the EFTA countries

4. Purpose:

To allow Central and Eastern European countries to continue applying flat rates where drawback is prohibited or exemption from customs duties is granted.

To extend the system to industrial products originating in Turkey and simplify or correct certain rules, particularly those on determining which country is to be considered the originating country.

5. Financial implications:

As, for the purposes of industrial products, Turkey is already in a customs union with the Community and these products are therefore already zero rated when imported into the Community, and as the purpose of the amendments is essentially to facilitate trade or simplify administrative tasks, this proposal would not seem to have any major financial implications.

Proposal for a COUNCIL DECISION

74.

98/ 0257 (ACC)


on a Community position on an amendment to Protocol 3 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Europe Agreement between the European Communities and the Republic of Estonia

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof,

Having regard to Article 2 i of the Council and Commission Decision of 19 December 1997 on the conclusion of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Estonia, of the other part,

Having regard to the Commission proposal.

Whereas Article 38 of Protocol 3 to the said Europe Agreement provides that the Association Council may amend the provisions of the Protocol,

HAS DECIDED:

The position to be adopted by the Community within the Association Council created by virtue of Article 109 of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Estonia, of the other part, on an amendment to Protocol 3 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Agreement shall be based on the draft Association Council decision annexed to this Decision.

Done at Brussels,

75.

For the Council The President


EUROPE AGREEMENT

establishing an association between the European Communities and their Member

States, of the one part, and

the Republic of Estonia, of the other part

DRAFT

Decision No of the Association Council

of...

amending Protocol 3 on the definition of the concept of “originating products” and

methods of administrative cooperation

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Estonia, of the other part, signed in Brussels on 12 June 1995 and in particular Article 38 of Protocol 4 thereof,

Whereas the definition of the term “originating products” needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and Switzerland;

Whereas it would seem advisable to maintain in operation until 31 December 2000 the system of flat rate charges provided for in Article 15 in connection with the prohibition of drawback and exemption from customs duty;

Whereas, in view of the particular arrangement on industrial products obtaining between the Community and Turkey, it would also be appropriate to extend the cumulation system to such products originating in Turkey;

Whereas to facilitate trade and simplify administrative tasks it would be desirable to amend the wording of Articles 3, 4 and 12;

Whereas, to take account of changes in processing techniques and shortages of certain raw materials, some corrections must be made to the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status,

HAS DECIDED AS FOLLOWS:

76.

Article 1


Protocol 3 on the definition of the concept of “originating products” and methods of administrative cooperation is hereby amended as follows:

1. Article l(i) shall be replaced by:

“(i) ‘added value’ shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 or, where the customs value is not known or cannot be ascertained, the first price verifiably paid for the products in the Community or Estonia.”

2. Articles 3 and 4 shall be replaced by:

Article 3

Cumulation in the European Community

1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be considered as originating in the Community if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)14 or Turkey15 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Community and each of these countries, provided that the working or processing carried out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 1, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the countiy which accounts for the highest value of originating materials used in the manufacture in the Community.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Community shall provide Estonia, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

Article 4

Cumulation in Estonia

1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be considered as originating in Estonia if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)16 or Turkey17 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Estonia and each of these countries, provided that the working or processing carried out in Estonia goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in Estonia does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Estonia only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in Estonia.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Estonia, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be. applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

Estonia shall provide the Community, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

3. Article 12 shall be replaced by the following:

“1. Except as provided for in Article 2(1 )(c). Articles 3 and 4 and paragraph 3 of this Article, the conditions for acquiring originating status set out in Title II must continue to be fulfilled at all times in the Community or Estonia.

2. Except as provided for in Articles 3 and 4, where originating goods exported from the Community or Estonia to another country return, they must be considered as non-originating, unless it can be demonstrated to the -satisfaction of the customs authorities that:

(a) the returning goods are the same as those that were exported; and

(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

3. The acquisition of originating status in accordance with the conditions set out in Title II shall not be affected by working or processing done outside the Community or Estonia on materials exported from the Community or Estonia and subsequently reimported there, provided:

(a) the said materials are wholly obtained in the Community or Estonia or have undergone working or processing beyond the insufficient operations listed in Article 7 prior to being exported; and

(b) it can be demonstrated to the satisfaction of the customs authorities that:

77.

i) the reimported goods have been obtained by working or processing the exported materials; and


ii) the total added value acquired outside the Community or Estonia by applying the provisions of this Article does not exceed 10% of the ex-works price of the end product for which originating status is claimed.

4. For the purposes of paragraph 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside the Community or Estonia. But where, in the list in Annex II, a rule setting a maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end product, the total value of the non-originating materials incorporated in the territory of the party concerned, taken together with the total added value acquired outside the Community or Estonia by applying the provisions of this Article, shall not exceed the stated percentage.

5. For the purposes of applying the provisions of paragraphs 3 and 4, “total added value” shall be taken to mean all costs arising outside the Community or Estonia, including the value of the materials incorporated there.

6. The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the conditions set out in the list in Annex II or which can be considered sufficiently worked or processed only if the general values fixed in Article 6(2) are applied.

7. The provisions of paragraphs 3 and 4 shall not apply to products coming under Chapters 50 to 63 of the Harmonised System.

8. Any working or processing of the kind covered by the provisions of this Article and done outside the Community or Estonia shall be done under the outward processing arrangements, or similar arrangements.”

4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase “referred'tourArticle 4” shall be replaced by “referred to in Articles 3 and 4”.

5. In the last paragraph of Article 15 i the date “31 December 1998” shall be replaced by “31 December 2000”.

6. In Article 26 the reference “C2/CP3” shall be replaced by “CN22/CN23”.

7. In Annex I, Note 5.2, “current conducting filaments” shall be added between “artificial man-made filaments” and “synthetic man-made staple fibres of polypropylene”.

8. In Annex I, Note 5.2 the fifth example (“A carpet with tufts ... are met.”) shall be deleted.

9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule shall be inserted:

tl
HS

Heading

No

(1)
Description of product

(2)
Working or processing of non-originating materials that confers originating status

or (4)
2207Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength.Manufacture:

- using materials not classified in headings 2207 or 2208
It
Chapter

57
Carpets and other textile floor coverings:
- Of needleloom felt
Manufacture from i:

- natural fibres

or

- chemical materials or textile pulp
However:

- polypropylene filament of heading 5402,

- polypropylene fibres of heading 5503 or 5506,

- polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used provided their value does not exceed 40% of the ex-works price of the product
- jute fabric may be used as backing
- Of other felt
Manufacture from(l):

- natural fibres not carded or combed or otherwise processed for spinning,

or

- chemical materials or textile pulp
- Other
Manufacture from(l):

- coir or jute yam18,

- synthetic or artificial filament yam

- natural fibres, or

- man-made staple fibres not carded or combed or otherwise processed for spinning

But jute fabric may be used as backing

11. In Annex II, the rule for HS heading 7006 shall be replaced by:

II
7006Glass of headings 7003, 7004 or 7005, bent, edgeworked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with other materials :

- glass plate substrate
Manufacture from materials
coated with dielectric thin film, semiconductor grade, in accordance with

SEMII standards19
(substrates) of heading 7006
- other
Manufacture from materials of heading 7001
U

12. In Annex II, the rule for HS heading 7601 shall be replaced by:

II
7601Unwrought aluminiumManufacture in which:

- all the materials used are classified within a heading other than that of the product; and

- the value of all the materials used does not exceed 50 % of the exworks price of the product
or

Manufacture by thermal or electrolytic treatment from unalloyed aluminium or waste and scrap of aluminium
ft

13. The following is added after Annex IV:

"Annex V

78.

List of products originating in Turkey to which the provisions of Articles 3 and 4 do not apply, listed in the order of HS Chapters and Headings


Chapter 1

Chapter 2 Chapter 3 0401 to 0402

ex 0403 - Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented

or acidified milk and cream, whether or not concentrated or containing

added sugar or other sweetening matter or flavoured or containing added fruit or cocoa

79.

0404 to 0410


80.

0504


81.

0511


Chapter 6 0701 to 0709

ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen

ex 0711- Vegetables, except sweet com of heading 0711 90 30, provisionally

preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption

82.

0712 to 0714 Chapter 8


ex Chapter 9 - Coffee, tea, and spices, excluding mate of heading 0903

Chapter 10

Chapter 11

Chapter 12

ex 1302- Pectin

83.

1501tol514


ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified

ex 1516- Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as ‘opal-wax’

84.

ex 1517 and


ex 1518 - Margarines, imitation lard and other prepared edible fats

ex 1522 - Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras

Chapter 16 1701

ex 1702- Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 1702 30 59, 1702 50 00 and 1702 90 10

ex 2001 -molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds

Cucumbers and gherkins, onions, mango chutney, fruit of the genus Capsicum other than sweet peppers or pimentos, mushrooms and olives,
prepared or preserved by vinegar or acetic acid

85.

2002 and 2003


ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic
ex 2005 -acid, frozen, other than products of heading 2006, excluding potatoes in the form of flour or meal and flakes of sweet corn

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006, excluding potato
and sweet corn products

86.

2006 and 2007


ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or
2009preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants .
ex 2106 -Flavoured and coloured sugars, syrups and molasses
2204
2206
ex 2207 -Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher obtained from agricultural produce listed here
ex 2208 -Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol obtained from agricultural produce listed here.
2209
Chapter 23

2401
4501
5301 and 5302

87.

Article 2



That Decision shall enter into force on 1 January 1999.


88.

Done at



For the Association Council The President


FINANCIAL STATEMENT

89.

1. Budget heading: Chapter 12, Article 120


90.

2. Legal basis: Article 113 of the Treaty


3. Titles of the agreements in question:

Proposal for an amendment to the definition of the concept of “originating products” and the methods of administrative cooperation set out in Protocol 4 to the different Europe Agreements between the EC and the CEECs, the Baltic States and Slovenia and the Agreement on the European Economic Area, and in Protocol 3 to the free trade agreements between the EEC and the EFT A countries

4. Purpose:

To allow Central and Eastern European countries to continue applying flat rates where drawback is prohibited or exemption from customs duties is granted.

To extend the system to industrial products originating in Turkey and simplify or correct certain rules, particularly those on determining which country is to be considered the originating country.

5. Financial implications:

As, for the purposes of industrial products, Turkey is already in a customs union with the Community and these products are therefore already zero rated when imported into the Community, and as the purpose of the amendments is essentially to facilitate trade or simplify administrative tasks, this proposal would not seem to have any major financial implications.

91.

Proposal for a COUNCIL DECISION


92.

98/ 0258 (ACC)


on a Community position on an amendment to Protocol 3 on the definition of the concept of ^‘originating products” and methods of administrative cooperation set out in the Europe Agreement between the European Communities and the Republic of Latvia

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof.

Having regard to Article 2 i of the Council and Commission Decision of 19 December 1997 on the conclusion of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Latvia, of the other part,

Having regard to the Commission proposal, .

Whereas Article 38 of Protocol 3 to the said Europe Agreement provides that the Association Council may amend the provisions of the Protocol,

HAS DECIDED:

The position to be adopted by the Community within the Association Council created by virtue of Article 110 of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Latvia, of the other part, on an amendment to Protocol 3 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Agreement shall be based on the draft Association Council decision annexed to this Decision.

Done at Brussels,

93.

For the Council The President


EUROPE AGREEMENT

establishing an association between the European Communities and their Member

States, of the one part, and

the Republic of Latvia, of the other part

DRAFT

Decision No of the Association Council

of...

amending Protocol 3 on the definition of the concept of “originating products” and

methods of administrative cooperation

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Latvia, of the other part, signed in Brussels on 12 June 1995 and in particular Article 38 of Protocol 3 thereof,

Whereas the definition of the term “originating products” needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (hereinafter referred to as the EE A), Iceland, Norway and Switzerland;

Whereas it would seem advisable to maintain in operation until 31 December 2000 the system of flat rate charges provided for in Article 15 in connection with the prohibition of drawback and exemption from customs duty;

Whereas, in view of the particular arrangement on industrial products obtaining between the Community and Turkey, it would also be appropriate to extend the cumulation system to such products originating in Turkey;

Whereas to facilitate trade and simplify administrative tasks it would be desirable to amend the wording of Articles 3, 4 and 12;

Whereas, to take account of changes in processing techniques and shortages of certain raw materials, some corrections must be made to the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status,

HAS DECIDED AS FOLLOWS:

94.

Article 1


Protocol 3 on the definition of the concept of “originating products” and methods of administrative cooperation is hereby amended as follows:

“(i) ‘added value’ shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 or, where the customs value is not known or cannot be ascertained, the first price verifiably paid for the products in the Community or Latvia.”

2. Articles 3 and 4 shall be replaced by:

Article 3

Cumulation in the European Community

1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be considered as originating in the Community if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)20 or Turkey21 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Community and each of these countries, provided that the working or processing carried out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Community.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Community shall provide Latvia, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

Article 4

Cumulation in Latvia

1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be considered as originating in Latvia if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)22 or Turkey23 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Latvia and each of these countries, provided that the working or processing carried out in Latvia goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in Latvia does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Latvia only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in Latvia.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Latvia, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be. applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

Latvia shall provide the Community, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

3. Article 12 shall be replaced by the following:

“1. Except as provided for in Article 2(1 )(c), Articles 3 and 4 and paragraph 3 of this Article, the conditions for acquiring originating status set out in Title II must continue to be fulfilled at all times in the Community or Latvia.

95.

2. Except as provided for in Articles 3 and 4, where originating goods exported from the Community or Latvia to another country return, they must be


considered as non-originating, unless it can be demonstrated to the-satisfaction of the customs authorities that:

(a) the returning goods are the same as those that were exported; and

(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

3. The acquisition of originating status in accordance with the conditions set out in Title II shall not be affected by working or processing done outside the Community or Latvia on materials exported from the Community or Latvia and subsequently reimported there, provided:

(a) the said materials are wholly obtained in the Community or Latvia or have undergone working or processing beyond the insufficient operations listed in Article 7 prior to being exported; and

(b) it can be demonstrated to the satisfaction of the customs authorities that:

96.

i) the reimported goods have been obtained by working or processing the exported materials; and


ii) the total added value acquired outside the Community or Latvia by applying the provisions of this Article does not exceed 10% of the ex-works price of the end product for which originating status is claimed.

4. For the purposes of paragraph 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside the Community or Latvia. But where, in the list in Annex II, a rule setting a maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end product, the total value of the non-originating materials incorporated in the territory of the party concerned, taken together with the total added value acquired outside the Community or Latvia by applying the provisions of this Article, shall not exceed the stated percentage.

5. For the purposes of applying the provisions of paragraphs 3 and 4, “total added value” shall be taken to mean all costs arising outside the Community or Latvia, including the value of the materials incorporated there.

6. The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the conditions set out in the list in Annex II or which can be considered sufficiently worked or processed only if the general values fixed in Article 6(2) are applied.

7. The provisions of paragraphs 3 and 4 shall not apply to products coming under Chapters 50 to 63 of the Harmonised System.

8. Any working or processing of the kind covered by the provisions of this Article and done outside the Community or Latvia shall be done under the outward processing arrangements, or similar arrangements.”

4.

5. In the last paragraph of Article 15 i the date “31 December 1998” shall be replaced by “31 December 2000”.

6. In Article 26 the reference “C2/CP3” shall be replaced by “CN22/CN23”

7. In Annex I, Note 5.2, “current conducting filaments” shall be added between “artificial man-made filaments” and “synthetic man-made staple fibres of polypropylene”.

8. In Annex I, Note 5.2 the fifth example (“A carpet with tufts ... are met.”) shall be deleted.

9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule shall be inserted:

HS

Heading

No

(1)
Description of product

(2)
Working or processing of non-originating materials that confers originating status

or (4)
2207Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength.Manufacture:

- using materials not classified in headings 2207 or 2208

' 't

Chapter

57
Carpets and other textile floor coverings:
- Of needleloom felt
Manufacture from i:

- natural fibres

or

- chemical materials or textile pulp
However:

- polypropylene filament of heading 5402,

- polypropylene fibres of heading 5503 or 5506,

- polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used provided their value does not exceed 40% of the ex-works price of the product
- jute fabric may be used as backing
- Of other felt
Manufacture from(l):

- natural fibres not carded or combed or otherwise processed for spinning,

or

- chemical materials or textile pulp
- Other
Manufacture from(l):

- coir or jute yam(a),

- synthetic or artificial filament yam

- natural fibres, or

- man-made staple fibres not carded or combed or otherwise processed for spinning

But jute fabric may be used as backing

(a> The use of jute yarn is authorised from 1.7.2000.

t'
7006Glass of headings 7003, 7004 or 7005, bent, edgeworked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with other materials:

- glass plate substrate
Manufacture from materials
1coated with dielectric thin film, semiconductor grade, in accordance with

SEMII standards24
(substrates) of heading 7006
- other
Manufacture from materials of heading 7001
66

12. In Annex II, the rule for HS heading 7601 shall be replaced by:

ft
7601Unwrought aluminiumManufacture in which:

- all the materials used are classified within a heading other than that of the product; and

- the value of all the materials used does not exceed 50 % of the exworks price of the product
or

Manufacture by thermal or electrolytic treatment from unalloyed aluminium or waste and scrap of aluminium
■
tt

13. The following is added after Annex IV:

. "Annex V

97.

List of products originating in Turkey to which the provisions of Articles 3 and 4 do not apply, listed in the order of HS Chapters and Headings


Chapter 1

Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa

Chapter 2 Chapter 3 0401 to 0402 ex 0403 -

98.

0404 to 0410


99.

0504


100.

0511


Chapter 6

101.

0701 to 0709


ex 0710 -ex 0711-


Vegetables (uncooked or cooked by steaming or boiling in water), frozen Vegetables, except sweet corn of heading 0711 90 30, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption


102.

0712 to 0714 Chapter 8 ex Chapter 9 Chapter 10 Chapter 11 Chapter 12 ex 1302 -1501tol514 ex 1515 -


ex 1516 -


- Coffee, tea, and spices, excluding mate of heading 0903


Pectin


Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as ‘opal-wax’


103.

ex 1517 and ex 1518 -


ex 1522 -

Chapter 16 1701

ex 1702 -

Margarines, imitation lard and other prepared edible fats

Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras

Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 1702 30 59, 1702 50 00 and 1702 90 10

ex 2001 -molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds

Cucumbers and gherkins, onions, mango chutney, fruit of the genus

Capsicum other than sweet peppers or pimentos, mushrooms and olives,
prepared or preserved by vinegar or acetic acid

104.

2002 and 2003


ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic
ex 2005 -acid, frozen, other than products of heading 2006, excluding potatoes in the form of flour or meal and flakes of sweet corn

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006, excluding potato
and sweet corn products

105.

2006 and 2007


ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or
2009preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants .
ex 2106 -Flavoured and coloured sugars, syrups and molasses
2204
2206
ex 2207 -Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher obtained from agricultural produce listed here
ex 2208 -Undenatured ethyl alcohol of an alcoholic strength by volume of less than

80% vol obtained from agricultural produce listed here.
2209
Chapter 23

2401
4501

106.

5301 and 5302 ”


be

107.

Article 2



That Decision shall enter into force on 1 January 1999.


108.

Done at



For the Association Council The President


FINANCIAL STATEMENT Budget heading: Chapter 12, Article 120

Legal basis: Article 113 of the Treaty

Titles of the agreements in question:

Proposal for an amendment to the definition of the concept of “originating products” and the methods of administrative cooperation set out in Protocol 4 to the different Europe Agreements between the EC and the CEECs, the Baltic States and Slovenia and the Agreement on the European Economic Area, and in Protocol 3 to the free trade agreements between the EEC and the EFT A countries

Purpose:

To allow Central and Eastern European countries to continue applying flat rates where drawback is prohibited or exemption from customs duties is granted.

To extend the system to industrial products originating in Turkey and simplify or correct certain rules, particularly those on determining which country is to be considered the originating country.

Financial implications:

As, for the purposes of industrial products, Turkey is already in a customs union with the Community and these products are therefore already zero rated when imported into the Community, and as the purpose of the amendments is essentially to facilitate trade or simplify administrative tasks, this proposal would not seem to have any major financial implications.

Proposal for a 98/0259 (ACC)

COUNCIL DECISION

on a Community position on an amendment to Protocol 3 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Europe Agreement between the European Communities and the Republic of Lithuania

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof.

Having regard to Article 2 i of the Council and Commission Decision of 19 December 1997 on the conclusion of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Lithuania, of the other part,

Having regard to the Commission proposal,

Whereas Article 38 of Protocol 3 to the said Europe Agreement provides that the Association Council may amend the provisions of the Protocol,

HAS DECIDED:

The position to be adopted by the Community within the Association Council created by virtue of Article 111 of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Lithuania, of the other part, on an amendment to Protocol 3 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Agreement shall be based on the draft Association Council decision annexed to this Decision.

Done at Brussels,

109.

For the Council The President


EUROPE AGREEMENT

n

the Republic of Lithuania, of the other part DRAFT

Decision No of the Association Council •

of...

amending Protocol 3 on the definition of the concept of “originating products” and

methods of administrative cooperation

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Lithuania, of the other part, signed in Brussels on 12 June 1995 and in particular Article 38 of Protocol 3 thereof.

Whereas the definition of the term “originating products” needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and Switzerland;

Whereas it would seem advisable to maintain in operation until 31 December 2000 the system of flat rate charges provided for in Article 15 in connection with the prohibition of drawback and exemption from customs duty;

Whereas, in view of the particular arrangement on industrial products obtaining between the Community and Turkey, it would also be appropriate to extend the cumulation system to such products originating in Turkey;

Whereas to facilitate trade and simplify administrative tasks it would be desirable to amend the wording of Articles 3, 4 and 12;

Whereas, to take account of changes in processing techniques and shortages of certain raw materials, some corrections must be made to the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status,

HAS DECIDED AS FOLLOWS:

110.

Article 1


Protocol 3 on the definition of the concept of “originating products” and methods of administrative cooperation is hereby amended as follows:

“(i) ‘added value’ shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 or, where the customs value is not known or cannot be ascertained, the first price verifiably paid for the products in the Community or Lithuania.”

2. Articles 3 and 4 shall be replaced by:

Article 3

Cumulation in the European Community

1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be considered as originating in the Community if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)25 or Turkey26 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Community and each of these countries, provided that the working or processing carried out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Community.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Community shall provide Lithuania, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

Article 4

Cumulation in Lithuania

1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be considered as originating in Lithuania if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)27 or Turkey28 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Lithuania and each of these countries, provided that the working or processing carried out in Lithuania goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in Lithuania does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Lithuania only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in Lithuania.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Lithuania, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

Lithuania shall provide the Community, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may. be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

3. Article 12 shall be replaced by the following:

“1. Except as provided for in Article 2(1 )(c), Articles 3 and 4 and paragraph 3 of this Article, the conditions for acquiring originating status set out in Title II must continue to be fulfilled at all times in the Community or Lithuania.

2. Except as provided for in Articles 3 and 4, where originating goods exported from the Community or Lithuania to another country return, they must be considered as non-originating, unless it can be demonstrafed to-the-satisfaction of the customs authorities that:

(a) the returning goods are the same as those that were exported; and

(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

3. The acquisition of originating status in accordance with the conditions set out in Title II shall not be affected by working or processing done outside the Community or Lithuania on materials exported from the Community or Lithuania and subsequently reimported there, provided:

(a) the said materials are wholly obtained in the Community or Lithuania or have undergone working or processing beyond the insufficient operations

. listed in Article 7 prior to being exported; and

(b) it can be demonstrated to the satisfaction of the customs authorities that:

111.

i) the reimported goods have been obtained by working or processing the exported materials; and


ii) the total added value acquired outside the Community or Lithuania by applying the provisions of this Article does not exceed 10% of the ex-works price of the end product for which originating status is claimed.

4. For the purposes of paragraph 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside the Community or Lithuania. But where, in the list in Annex II, a rule setting

, a maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end product, the total value of the non-originating materials incorporated in the territory of the party concerned, taken together with the total added value acquired outside the Community or Lithuania by applying the provisions of this Article, shall not exceed the stated percentage.

5. For the purposes of applying the provisions of paragraphs 3 and 4, “total added value” shall be taken to mean all costs arising outside the Community or Lithuania, including the value of the materials incorporated there.

6. The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the conditions set out in the list in Annex II or which can be considered sufficiently worked or processed only if the general values fixed in Article 6(2) are applied.

7. The provisions of paragraphs 3 and 4 shall not apply to products coming under Chapters 50 to 63 of the Harmonised System.

8. Any working or processing of the kind covered by the provisions of this Article and done outside the Community or Lithuania shall be done under the outward processing arrangements, or similar arrangements.”

4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase “referred 4ctin-Article 4” shall be replaced by “referred to in Articles 3 and 4”.

5. In the last paragraph of Article 15 i the date “31 December 1998” shall be replaced by “31 December 2000”.

6. In Article 26 the reference “C2/CP3” shall be replaced by “CN22/CN23”.

7. In Annex I, Note 5.2, “current conducting filaments” shall be added between “artificial man-made filaments” and “synthetic man-made staple fibres of polypropylene”.

8. In Annex I, Note 5.2 the fifth example (“A carpet with tufts ... are met.”) shall be deleted.

9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule shall be inserted:

HS

Heading

No

(1)
Description of product

(2)
Working or processing of non-originating materials that confers originating status

(3) or (4)
2207Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength.Manufacture:

- using materials not classified in headings 2207 or 2208
II

A?

Chapter

57
Carpets and other textile floor coverings:
- Of needleloom felt
Manufacture from i:

- natural fibres

or

- chemical materials or textile pulp
However:

- polypropylene filament of heading 5402,

- polypropylene fibres of heading 5503 or 5506,

- polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used provided their value does not exceed 40% of the ex-works price of the product
- jute fabric may be used as backing
- Of other felt
Manufacture from(l):

- natural fibres not carded or combed or otherwise processed for spinning,

or

- chemical materials or textile pulp
- Other
Manufacture from(l):

- coir or jute yam(a),

- synthetic or artificial filament yarn

- natural fibres, or

- man-made staple fibres not carded or combed or otherwise processed for spinning

But jute fabric may be used as backing

{a) The use of jute yarn is authorised from 1.7.2000.

fl
7006Glass of headings 7003, 7004 or 7005, bent, edgeworked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with-
other materials :

- glass plate substrate
Manufacture from materials
coated with dielectric thin film, semiconductor grade, in accordance with

SEMII standards1
(substrates) of heading 7006
- other
Manufacture from materials of heading 7001
(i

12. In Annex II, the rule for HS heading 7601 shall be replaced by:

It
7601Unwrought aluminiumManufacture in which:

- all the materials used are classified within a heading other than that of the product; and

- the value of all the materials used does not exceed 50 % of the exworks price of the product
or

Manufacture by thermal or electrolytic treatment from unalloyed aluminium or waste and scrap of aluminium
II

13. The following is added after Annex IV:

"Annex V

112.

List of products originating in Turkey to which the provisions of Articles 3 and 4 do not apply, listed in the order of HS Chapters and Headings


Chapter 1

SEMII- Semiconductor Equipment and Materials Institute Incorporated.

113.

Chapter 2 Chapter 3 0401 to 0402 ex 0403 -


114.

0404 to 0410


115.

0504


116.

0511


Chapter 6

117.

0701 to 0709


ex 0710-ex 0711 -

118.

0712 to 0714 Chapter 8 ex Chapter 9 Chapter 10 Chapter 11 Chapter 12 ex 1302-1501tol514 ex 1515 -


ex 1516 -


Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa


Vegetables (uncooked or cooked by steaming or boiling in water), frozen Vegetables, except sweet corn of heading 0711 90 30, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption


Coffee, tea, and spices, excluding mate of heading 0903


Pectin


Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as ‘opal-wax’


119.

ex 1517 and ex 1518 —


ex 1522-

Chapter 16 1701

ex 1702 -


Margarines, imitation lard and other prepared edible fats

Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras


Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 1702 30 59, 1702 50 00 and 1702 90 10

120.

1703


121.

1801 and 1802


ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans,
ex 2001 -molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds

Cucumbers and gherkins, onions, mango chutney, fruit of the genus

Capsicum other than sweet peppers or pimentos, mushrooms and olives,
prepared or preserved by vinegar or acetic acid

122.

2002 and 2003


ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic
ex 2005 -acid, frozen, other than products of heading 2006, excluding potatoes in the form of flour or meal and flakes of sweet com

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006, excluding potato
and sweet com products

123.

2006 and 2007


ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or
2009preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants .
ex 2106 -Flavoured and coloured sugars, syrups and molasses
2204
2206
ex 2207 -Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher obtained from agricultural produce listed here
ex 2208 -Undenatured ethyl alcohol of an alcoholic strength by volume of less than

80% vol obtained from agricultural produce listed here.
2209
Chapter 23

2401

124.

4501


125.

5301 and 5302 ”


?-h

126.

Article 2



That Decision shall enter into force on 1 January 1999.


127.

Done at



For the Association Council The President


FINANCIAL STATEMENT

128.

1. Budget heading: Chapter 12, Article 120


129.

2. Legal basis: Article 113 of the Treaty


3. Titles of the agreements in question:

Proposal for an amendment to the definition of the concept of “originating products” and the methods of administrative cooperation set out in Protocol 4 to the different Europe Agreements between the EC and the CEECs, the Baltic States and Slovenia and the Agreement on the European Economic Area, and in Protocol 3 to the free trade agreements between the EEC and the EFT A countries

4. Purpose:

To allow Central and Eastern European countries to continue applying flat rates where drawback is prohibited or exemption from customs duties is granted.

To extend the system to industrial products originating in Turkey and simplify or correct certain rules, particularly those on determining which country is to be considered the originating country.

5. Financial implications:

As, for the purposes of industrial products, Turkey is already in a customs union with the Community and these products are therefore already zero rated when imported into the Community, and as the purpose of the amendments is essentially to facilitate trade or simplify administrative tasks, this proposal would not seem to have any major financial implications.

Proposal for a COUNCIL DECISION

130.

98/ 0260 (ACC)


on a Community position on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Europe Agreement between the European Communities and Hungary

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof.

Having regard to Article 2 i of the Council and Commission Decision of 13 December 1993 on the conclusion of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part.

Having regard to the Commission proposal,

Whereas Article 38 of Protocol 4 to the said Europe Agreement provides that the Association Council may amend the provisions of the Protocol,

HAS DECIDED:

The position to be adopted by the Community within the Association Council created by virtue of Article 104 of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part, on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Agreement shall be based on the draft Association Council decision annexed to this Decision.

Done at Brussels,

131.

For the Council The President


EUROPE AGREEMENT

establishing an association between the European Communities and their Member

States, of the one part, and

the Republic of Hungary, of the other part

DRAFT

Decision No of the Association Council

of...

amending Protocol 4 on the definition of the concept of “originating products” and

methods of administrative cooperation

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Hungary, of the other part, signed in Brussels on 16 December 1991 and in particular Article 38 of Protocol 4 thereof,

Whereas the definition of the term “originating products” needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and Switzerland;

Whereas it would seem advisable to maintain in operation until 31 December 2000 the system of flat rate charges provided for in Article 15 in connection with the prohibition of drawback and exemption from customs duty;

Whereas, in view of the particular arrangement on industrial products obtaining between the Community and Turkey, it would also be appropriate to extend the cumulation system to such products originating in Turkey;

Whereas to facilitate trade and simplify administrative tasks it would be desirable to amend the wording of Articles 3, 4 and 12;

Whereas, to take account of changes in processing techniques and shortages of certain raw materials, some corrections must be made to the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status,

HAS DECIDED AS FOLLOWS:

132.

Article 1


Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation is hereby amended as follows:

“(i) ‘added value’ shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 or, where the customs value is not known or cannot be ascertained, the first price verifiably paid for the products in the Community or Hungary.”

2. Articles 3 and 4 shall be replaced by:

Article 3

Cumulation in the European Community

1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be considered as originating in the Community if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)29 or Turkey30 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Community and each of these countries, provided that the working or processing carried out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Community.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Community shall provide Hungary, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessaiy requirements.

Article 4

Cumulation in Hungary

1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be considered as originating in Hungary if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)31 or Turkey32 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Bulgaria and each of these countries, provided that the working or processing carried out in Hungary goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in Hungary does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Hungary only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in Hungary.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Hungary, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

Hungary shall provide the Community, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

3. Article 12 shall be replaced by the following:

“1. Except as provided for in Article 2(1 )(c), Articles 3 and 4 and paragraph 3 of this Article, the conditions for acquiring originating status set out in Title II must continue to be fulfilled at all times in the Community or Hungary.

133.

2. Except as provided for in Articles 3 and 4, where originating goods exported from the Community or Hungary to another country return, they must be


considered as non-originating, unless it can be demonstrated to-the-satisfaction of the customs authorities that: *'

(a) the returning goods are the same as those that were exported; and

(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

3. The acquisition of originating status in accordance with the conditions set out in Title II shall not be affected by working or processing done outside the Community or Hungary on materials exported from the Community or Bulgaria and subsequently reimported there, provided:

(a) the said materials are wholly obtained in the Community or Hungary or have undergone working or processing beyond the insufficient operations listed in Article 7 prior to being exported; and

(b) it can be demonstrated to the satisfaction of the customs authorities that :

134.

i) the reimported goods have been obtained by working or processing the exported materials; and


ii) the total added value acquired outside the Community or Hungary by applying the provisions of this Article does not exceed 10% of the ex-works price of the end product for which originating status is claimed.

4. For the purposes of paragraph 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside the Community or Hungary. But where, in the list in Annex II, a rule setting a

. maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end product, the total value of the non-originating materials incorporated in the territory of the party concerned, taken together with the total added value acquired outside the Community or Hungary by applying the provisions of this Article, shall not exceed the stated percentage.

5. For the purposes of applying the provisions of paragraphs 3 and 4, “total

added value” shall be taken to mean all costs arising outside the Community or Hungary, including the value of the materials incorporated there. .

6. The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the conditions set out in the list in Annex II or which can be considered sufficiently worked or processed only if the general values fixed in Article 6(2) are applied

7. The provisions of paragraphs 3 and 4 shall not apply to products coming under Chapters 50 to 63 of the Harmonised System.

8. Any working or processing of the kind covered by the provisions of this Article and done outside the Community or Hungary shall be done under the outward processing arrangements, or similar arrangements.”

4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase “referred'te^in* Article 4” shall be replaced by “referred to in Articles 3 and 4”.

5. In the last paragraph of Article 15 i the date “31 December 1998” shall be replaced by “31 December 2000”.

6. In Article 26 the reference “C2/CP3” shall be replaced by “CN22/CN23”.

7. In Annex I, Note 5.2, “current conducting filaments” shall be added between “artificial man-made filaments” and “synthetic man-made staple fibres of polypropylene”.

8. In Annex I, Note 5.2 the fifth example (“A carpet with tufts ... are met.”) shall be deleted.

9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule shall be inserted:

HS

Heading

No

(1)
Description of product

(2)
Working or processing of non-originating materials that confers originating status

(3) or (4)
2207Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength.Manufacture:

- using materials not classified in headings 2207 or 2208
II

<fz

Chapter

57
Carpets and other textile floor coverings:
- Of needleloom felt
Manufacture from i:

- natural fibres

or

- chemical materials or textile pulp
However:

- polypropylene filament of heading 5402,

- polypropylene fibres of heading 5503 or 5506,

- polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less tliari 9 decitex, may be used provided their value does not exceed 40% of the ex-works price of the product
- jute fabric may be used as backing ‘
- Of other felt
Manufacture from(l):

- natural fibres not carded or combed or otherwise processed for spinning,

or

- chemical materials or textile pulp
- Other
Manufacture from(l):

- coir or jute yam(a),

- synthetic or artificial filament yam

- natural fibres, or

- man-made staple fibres not carded or combed or otherwise processed for spinning

But jute fabric may be used as backing

The use of jute yarn is authorised from 1.7.2000.

M
7006Glass of headings 7003, 7004 or 7005, bent, edgeworked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with other materials :

- glass plate substrate
Manufacture from materials
coated with dielectric thin film, semiconductor grade, in accordance with

SEM1I standards1
(substrates) of heading 7006
- other
Manufacture from materials of heading 7001

12. In Annex II, the rule for HS heading 7601 shall be replaced by:

II
7601Unwrought aluminiumManufacture in which:

- all the materials used are classified within a heading other than that of the product; and

- the value of all the materials used does not exceed 50 % of the exworks price of the product
or

Manufacture by thermal or electrolytic treatment from unalloyed aluminium or waste and scrap of aluminium
if

13. The following is added after Annex IV:

"Annex V

135.

List of products originating in Turkey to which the provisions of Articles 3 and 4 do not apply, listed in the order of HS Chapters and Headings


Chapter 1

SEMIl- Semiconductor Equipment and Materials Institute Incorporated.

136.

Chapter 2 Chapter 3 0401 to 0402 ex 0403 -


137.

0404 to 0410


138.

0504


139.

0511


Chapter 6

140.

0701 to 0709


ex 0710-ex 0711 -

0712 to 0714 Chapter 8 ex Chapter 9 Chapter 10 Chapter 11 Chapter 12 ex 1302 — 1501tol514 ex 1515 -

141.

ex 1516-



Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa


Vegetables (uncooked or cooked by steaming or boiling in water), frozen Vegetables, except sweet corn of heading 0711 90 30, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption


Coffee, tea, and spices, excluding mate of heading 0903


Pectin


ex 1517 and ex 1518 -

ex 1522-

Chapter 16 1701

ex 1702-


Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as ‘opal-wax’

142.

Margarines, imitation lard and other prepared edible fats


Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras


Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 1702 30 59, 1702 50 00 and 1702 90 10

143.

1703


144.

1801 and 1802


ex 1902- Pasta, stuffed, containing more than 20% by weight of fish, crustaceans,
ex 2001 -molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds

Cucumbers and gherkins, onions, mango chutney, fruit of the genus

Capsicum other than sweet peppers or pimentos, mushrooms and olives,
prepared or preserved by vinegar or acetic acid

145.

2002 and 2003


ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic
ex 2005 -acid, frozen, other than products of heading 2006, excluding potatoes in the form of flour or meal and flakes of sweet corn

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006, excluding potato
and sweet corn products

146.

2006 and 2007


ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or
2009preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants
ex 2106-Flavoured and coloured sugars, syrups and molasses
2204
2206
ex 2207 -Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher obtained from agricultural produce listed here
ex 2208 -Undenatured ethyl alcohol of an alcoholic strength by volume of less than

80% vol obtained from agricultural produce listed here.
2209
Chapter 23

2401
4501

147.

5301 and 5302 ”

ft.

148.

Article 2



That Decision shall enter into force on 1 January 1999.


149.

Done at



For the Association Council The President


<??


FINANCIAL STATEMENT

Legal ^asis: Article 113 of the Treaty

Titles of the agreements in question:

Proposal for an amendment to the definition of the concept of “originating products” and the methods of administrative cooperation set out in Protocol 4 to the different Europe Agreements between the EC and the CEECs, the Baltic States and Slovenia and the Agreement on the European Economic Area, and in Protocol 3 to the free trade agreements between the EEC and the EFT A countries

Purpose:

To allow Central and Eastern European countries to continue applying flat rates where drawback is prohibited or exemption from customs duties is granted.

To extend the system to industrial products originating in Turkey and simplify or correct certain rules, particularly those on determining which country is to be considered the originating country.

Financial implications:

As, for the purposes of industrial products, Turkey is already in a customs union with the Community and these products are therefore already zero rated when imported into the Community, and as the purpose of the amendments is essentially to facilitate trade or simplify administrative tasks, this proposal would not seem to have any major financial implications.

Proposal for a COUNCIL DECISION

150.

98/ 0261 (ACC)


V

on a Community position on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Europe Agreement between the European Communities and the Slovak Republic

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof.

Having regard to Article 2 i of the Council and Commission Decision of 19 December 1994 on the conclusion of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Slovak Republic, of the other part,

Having regard to the Commission proposal, .

Whereas Article 38 of Protocol 4 to the said Europe Agreement provides, that the Association Council may amend the provisions of the Protocol,

HAS DECIDED:

The position to be adopted by the Community within the Association Council created by virtue of Article 104 of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Slovak Republic, of the other part, on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Agreement shall be based on the draft Association Council decision annexed to this Decision. .

Done at Brussels,

151.

For the Council The President


EUROPE AGREEMENT

establishing an association between the European Communities and their Member

States, of the one part, and

the Slovak Republic, of the other part

DRAFT

Decision No of the Association Council

of...

amending Protocol 4 on the definition of the concept of “originating products” and

methods of administrative cooperation

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Slovak Republic, of the other part, signed in Brussels on 4 October 1993 and in particular Article 38 of Protocol 4 thereof,

Whereas the definition of the term “originating products” needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and Switzerland;

Whereas it would seem advisable to maintain in operation until 31 December 2000 the system of flat rate charges provided for in Article 15 in connection with the prohibition of drawback and exemption from customs duty;

Whereas, in view of the particular arrangement on industrial products obtaining between the Community and Turkey, it would also be appropriate to extend the cumulation system to such products originating in Turkey;

Whereas to facilitate trade and simplify administrative tasks it would be desirable to amend the wording of Articles 3, 4 and 12;

Whereas, to take account of changes in processing techniques and shortages of certain raw materials, some corrections must be made to the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status, '

HAS DECIDED AS FOLLOWS:

152.

. Article 1


Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation is hereby amended as follows:

“(i) ‘added value’ shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 or, where the customs value is not known or cannot be ascertained, the first price verifiably paid for the products in the Community or the Slovak Republic.”

2. Articles 3 and 4 shall be replaced by:

Article 3

Cumulation in the European Community

1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be considered as originating in the Community if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)33 or Turkey34 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Community and each of these countries, provided that the working or processing carried out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Community.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Community shall provide the Slovak Republic, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

Article 4

Cumulation in the Slovak Republic

1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be considered as originating in the Slovak Republic if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)35 or Turkey36 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Slovak Republic and each of these countries, provided that the working or processing carried out in the Slovak Republic goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Slovak Republic does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Slovak Republic only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Slovak Republic.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Slovak Republic, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Slovak Republic shall provide the Community, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

3. Article 12 shall be replaced by the following:

“1. Except as provided for in Article 2(1 )(c), Articles 3 and 4 and paragraph 3 of this Article, the conditions for acquiring originating status set out in Title II must continue to be fulfilled at all times in the Community or the Slovak Republic.

2. Except as provided for in Articles 3 and 4, where originating 'goods exported from the Community or the Slovak Republic to another country return, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities that:

(a) the returning goods are the same as those that were exported; and

(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

3. The acquisition of originating status in accordance with the conditions set out in Title II shall not be affected by working or processing done outside the Community or the Slovak Republic on materials exported from the Community or Bulgaria and subsequently reimported there, provided:

(a) the said materials are wholly obtained in the Community or the Slovak Republic or have undergone working or processing beyond the insufficient operations listed in Article 7 prior to being exported; and

(b) it can be demonstrated to the satisfaction of the customs authorities that:

153.

i) the reimported goods have been obtained by working or processing the exported materials; and


ii) the total added value acquired outside the Community or the Slovak Republic by applying the provisions of this Article does not exceed 10% of the ex-works price of the end product for which originating status is claimed.

4. For the purposes of paragraph 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside the Community or the Slovak Republic. But where, in the list in Annex II, a rule setting a maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end product, the total value of the non-originating materials incorporated in the territory of the party concerned, taken together with the total added value acquired outside the Community or the Slovak Republic by applying the provisions of this Article, shall not exceed the stated percentage.

5. For the purposes of applying the provisions of paragraphs 3 and 4, “total added value” shall be taken to mean all costs arising outside the Community or the Slovak Republic, including the value of the materials incorporated there.

6. The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the conditions set out in the list in Annex II or which can be considered sufficiently worked or processed only if the general values fixed in Article 6(2) are applied.

7. The provisions of paragraphs 3 and 4 shall not apply to products coming under Chapters 50 to 63 of the Harmonised System.

8. Any working or processing of the kind covered by the provisions of this Article and done outside the Community or the Slovak Republic shall be done -under the outward processing arrangements, or similar arrangements.”

4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase “referred to in Article 4” shall be replaced by “referred to in Articles 3 and 4”.

5. In the last paragraph of Article 15 i the date “31 December 1998” shall be replaced by “31 December 2000”.

6. In Article 26 the reference “C2/CP3” shall be replaced by “CN22/CN23”.

7. In Annex I, Note 5.2, “current conducting filaments” shall be added between “artificial man-made filaments” and “synthetic man-made staple fibres of polypropylene”.

8. In Annex I, Note 5.2 the fifth example (“A carpet with tufts ... are met.”) shall be deleted.

9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule shall be inserted:

tl
HS

Heading

No

(1)
Description of product

(2)
Working or processing of non-originating materials that confers originating status

(3) or (4)
2207Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength.Manufacture:

- using materials not classified in headings 2207 or 2208
Chapter

57
Carpets and other textile floor coverings:
- Of needleloom felt
Manufacture from i:

- natural fibres

or

- chemical materials or textile pulp
However:

- polypropylene filament of heading 5402,

- polypropylene fibres of heading 5503 or 5506,

- polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used provided their value does not exceed 40% of the ex-works price of the product
- jute fabric may be used as backing -
- Of other felt
Manufacture from( 1):

- natural fibres not carded or combed or otherwise processed for spinning,

or

- chemical materials or textile pulp
- Other
Manufacture from(l):

-coir or jute yam(a),

- synthetic or artificial filament yam

- natural fibres, or

- man-made staple fibres not carded or combed or otherwise processed for spinning

But jute fabric may be used as backing

The use of jute yam is authorised from 1.7.2000.

ft
7006Glass of headings 7003, 7004 or 7005, bent, edgevvorked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with other materials :

- glass plate substrate
Manufacture from materials
coated with dielectric thin film, semiconductor grade, in accordance with

SEMII standards1
(substrates) of heading 7006
- other
Manufacture from materials of heading 7001

12. In Annex II, the rule for HS heading 7601 shall be replaced by:

7601Unwrought aluminiumManufacture in which:

- all the materials used are classified within a heading other than that of the product; and

- the value of all the materials used does not exceed 50 % of the exworks price of the product
or

Manufacture by thermal or electrolytic treatment from unalloyed aluminium or waste and scrap of aluminium
n

13. The following is added after Annex IV:

"Annex V

154.

List of products originating in Turkey to which the provisions of Articles 3 and 4 do not apply, listed in the order of HS Chapters and Headings


Chapter 1

SEMII- Semiconductor Equipment and Materials Institute Incorporated.

155.

Chapter 2 Chapter 3 0401 to 0402 ex 0403 —


156.

0404 to 0410


157.

0504


158.

0511


Chapter 6

159.

0701 to 0709


ex 0710-ex 0711 -

160.

0712 to 0714 Chapter 8 ex Chapter 9 Chapter 10 Chapter 11 Chapter 12 ex 1302-1501tol514 ex 1515 —


ex 1516 —


Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa


Vegetables (uncooked or cooked by steaming or boiling in water), frozen Vegetables, except sweet corn of heading 0711 90 30, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption


Coffee, tea, and spices, excluding mate of heading 0903


Pectin


Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as ‘opal-wax’


161.

ex 1517 and ex 1518 —


ex 1522-

Chapter 16 1701

ex 1702-


Margarines, imitation lard and other prepared edible fats

Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras


Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 1702 30 59, 1702 50 00 and 1702 90 10

162.

1703


163.

1801 and 1802


ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans,
ex 2001 -molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds

Cucumbers and gherkins, onions, mango chutney, fruit of the genus Capsicum other than sweet peppers or pimentos, mushrooms and olives,
prepared or preserved by vinegar or acetic acid

164.

2002 and 2003


ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic
ex 2005 -acid, frozen, other than products of heading 2006, excluding potatoes in the form of flour or meal and flakes of sweet corn

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006, excluding potato
and sweet corn products

165.

2006 and 2007


ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or
2009preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants .
ex 2106 -Flavoured and coloured sugars, syrups and molasses
2204
2206
ex 2207 -Undenatured ethyl alcohol 'of an alcoholic strength by volume of 80% vol or higher obtained from agricultural produce listed here
ex 2208 -Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol obtained from agricultural produce listed here.
2209
Chapter 23

2401

166.

4501


167.

5301 and 5302


Article 2


That Decision shall enter into force on 1 January 1999.


168.

Done at



For the Association Council The President


FINANCIAL STATEMENT

169.

1. Budget heading: Chapter 12, Article 120


170.

2. Legal basis: Article 113 of the Treaty


3. Titles of the agreements in question:

Proposal for an amendment to the definition of the concept of “originating products” and the methods of administrative cooperation set out in Protocol 4 to the different Europe Agreements between the EC and the CEECs, the Baltic States and Slovenia and the Agreement on the European Economic Area, and in Protocol 3 to the free trade agreements between the EEC and the EFTA countries

4. Purpose:

To allow Central and Eastern European countries to continue applying flat rates where drawback is prohibited or exemption from customs duties is granted.

To extend the system to industrial products originating in Turkey and simplify or correct certain rules, particularly those on determining which country is to be considered the originating country.

5. Financial implications:

As, for the purposes of industrial products, Turkey is already in a customs union with the Community and these products are therefore already zero rated when imported into the Community, and as the purpose of the amendments is essentially to facilitate trade or simplify administrative tasks, this proposal would not seem to have any major financial implications.

171.

98/ 0262 (ACC)


Proposal for a COUNCIL DECISION

on a Community position on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Europe Agreement between the European Communities and Romania

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof,

Having regard to Article 2 i of the Council and Commission Decision of 19 December 1994 on the conclusion of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Romania, of the other part.

Having regard to the Commission proposal, .

Whereas Article 38 of Protocol 4 to the said Europe Agreement provides that the Association Council may amend the provisions of the Protocol,

HAS DECIDED:

The position to be adopted by the Community within the Association Council created by virtue of Article 106 of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Romania, of the other part, on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Agreement shall be based on the draft Association Council decision annexed to this Decision.

Done at Brussels,

172.

For the Council The President


EUROPE AGREEMENT

establishing an association between the EuropeanjCommunities and their Member

States, of the one part, and

Romania, of the other part

DRAFT

Decision No of the Association Council

of...

amending Protocol 4 on the definition of the concept of “originating products” and

methods of administrative cooperation

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Romania, of the other part, signed in Brussels on 1 February 1993 and in particular Article 38 of Protocol 4 thereof.

Whereas the definition of the term “originating products” needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and Switzerland;

Whereas it would seem advisable to maintain in operation until 31 December 2000 the system of flat rate charges provided for in Article 15 in connection with the prohibition of drawback and exemption from customs duty;

Whereas, in view of the particular arrangement on industrial products obtaining between the Community and Turkey, it would also be appropriate to extend the cumulation system to such products originating in Turkey;

Whereas to facilitate trade and simplify administrative tasks it would be desirable to amend the wording of Articles 3, 4 and 12;

Whereas, to take account of changes in processing techniques and shortages of certain raw materials, some corrections must be mad tc the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status,

HAS DECIDED AS FOLLOWS:

173.

Article 1


Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation is hereby amended as follows:

“(i) ‘added value’ shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 or, where the customs value is not known or cannot be ascertained, the first price verifiably paid for the products in the Community or Romania.”

2. Articles 3 and 4 shall be replaced by:

Article 3

Cumulation in the European Community

1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be considered as originating in the Community if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary,, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)37 or Turkey38 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Community and each of these countries, provided that the working or processing carried out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Community.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Community shall provide Romania, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

Article 4

Cumulation in Romania

1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be considered as originating in Romania if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)39 or Turkey40 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Romania and each of these countries, provided that the working or processing carried out in Romania goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in Romania does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Romania only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in Romania.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Romania, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

Romania shall provide the Community, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

3. Article 12 shall be replaced by the following:

“1. Except as provided for in Article 2(l)(c), Articles 3 and 4 and paragraph 3 of this Article, the conditions for acquiring originating status set out in Title II must continue to be fulfilled at all times in the Community or Romania.

174.

2. Except as provided for in Articles 3 and 4, where originating goods exported from the Community or Romania to another country return, they must be


considered as non-originating, unless it can be demonstrated to 4he-satisfaction of the customs authorities that: *

(a) the returning goods are the same as those that were exported; and

(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

3. The acquisition of originating status in accordance with the conditions set out in Title II shall not be affected by working or processing done outside the Community or Romania on materials exported from the Community or Romania and subsequently reimported there, provided:

(a) the said materials are wholly obtained in the Community or Romania or have undergone working or processing beyond the insufficient operations listed in Article 7 prior to being exported; and

(b) it can be demonstrated to the satisfaction of the customs authorities that:

175.

i) the reimported goods have been obtained by working or processing the exported materials; and


ii) the total added value acquired outside the Community or Romania by applying the provisions of this Article does not exceed 10% of the ex-works price of the end product for which originating status is claimed.

4. For the purposes of paragraph . 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside the Community or Romania. But where, in the list in Annex II, a rule setting a maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end product, the total value of the non-originating materials incorporated in the territory of the party concerned, taken together with the total added value acquired outside the Community or Romania by applying the provisions of this Article, shall not exceed the stated percentage.

5. For the purposes of applying the provisions of paragraphs 3 and 4, “total added value” shall be taken to mean all costs arising outside the Community or Romania, including the value of the materials incorporated there.

6. The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the conditions set out in the list in Annex II or which can be considered sufficiently worked or processed only if the general values fixed in Article 6(2) are applied.

7. The provisions of paragraphs 3 and 4 shall not apply to products coming under Chapters 50 to 63 of the Harmonised System.

8. Any working or processing of the kind covered by the provisions of this Article and done outside the Community or Romania shall be done under the outward processing arrangements, or similar arrangements.”

4.

5. In the last paragraph of Article 15 i the date “31 December 1998” shall be replaced by “31 December 2000”.

6. In Article 26 the reference “C2/CP3” shall be replaced by “CN22/CN23”

7. In Annex I, Note 5.2, “current conducting filaments” shall be added between “artificial man-made filaments” and “synthetic man-made staple fibres of polypropylene”.

8. In Annex I, Note 5.2 the fifth example (“A carpet with tufts ... are met.”) shall be deleted.

9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule shall be inserted:

HS

Heading

No

(1)
Description of product

(2)
Working or processing of non-originating materials that confers originating status

(3) or (4)
2207Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength.Manufacture:

- using materials not classified in headings 2207 or 2208
Chapter

57
Carpets and other textile floor coverings:
- Of needlelooin felt
Manufacture from i:

- natural fibres

or

- chemical materials or textile pulp
However:

- polypropylene filament of heading 5402,

- polypropylene fibres of heading 5503 or 5506,

- polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used provided their value does not exceed 40% of the ex-works price of the product
- jute fabric may be used as backing •
- Of other felt
Manufacture from(l):

- natural fibres not carded or combed or otherwise processed for spinning,

or

- chemical materials or textile pulp
- Other
Manufacture from(l):

- coir or jute yam41,

- synthetic or artificial filament yam

- natural fibres, or

- man-made staple fibres not carded or combed or otherwise processed for spinning

But jute fabric may be used as backing
-
It
7006Glass of headings 7003, 7004 or 7005, bent, edgeworked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with other materials:

- glass plate substrate
Manufacture from materials
coated with dielectric thin film, semiconductor grade, in accordance with

SEMII standards1
(substrates) of heading 7006
- other
Manufacture from materials of heading 7001
66

12. In Annex II, the rule for HS heading 7601 shall be replaced by:

II
7601Unwrought aluminiumManufacture in which:

- all the materials used are classified within a heading other than that of the product; and

- the value of all the materials used does not exceed 50 % of the exworks price of the product
or

Manufacture by thermal or electrolytic treatment from unalloyed aluminium or waste and scrap of aluminium
VI

13. The following is added after Annex IV:

"Annex V

176.

List of products originating in Turkey to which the provisions of Articles 3 and 4 do not apply, listed in the order of HS Chapters and Headings


Chapter 1

Chapter 2 Chapter 3 0401 to 0402 ex 0403 -

177.

0404 to 0410


178.

0504


179.

0511


Chapter 6

180.

0701 to 0709


ex 0710 -ex 0711 -

181.

0712 to 0714 Chapter 8 ex Chapter 9 Chapter 10 Chapter 11 Chapter 12 ex 1302-1501tol514 ex 1515 -


ex 1516 —


Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa


Vegetables (uncooked or cooked by steaming or boiling in water), frozen Vegetables, except sweet corn of heading 0711 90 30, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption


Coffee, tea, and spices, excluding mate of heading 0903


Pectin


Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as ‘opal-wax’


182.

ex 1517 and ex 1518 -


ex 1522-

Chapter 16 1701

ex 1702-


Margarines, imitation lard and other prepared edible fats

Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras


Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 1702 30 59, 1702 50 00 and 1702 90 10

183.

1703


184.

1801 and 1802


ex 1902- Pasta, stuffed, containing more than 20% by weight of fish, crustaceans.
ex 2001 -molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds

Cucumbers and gherkins, onions, mango chutney, fruit of the genus

Capsicum other than sweet peppers or pimentos, mushrooms and olives,
prepared or preserved by vinegar or acetic acid

185.

2002 and 2003


ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic
ex 2005 -acid, frozen, other than products of heading 2006, excluding potatoes in the form of flour or meal and flakes of sweet corn

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006, excluding potato
and sweet corn products

186.

2006 and 2007


ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or
2009preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants
ex 2106 -Flavoured and coloured sugars, syrups and molasses
2204
2206
ex 2207 -Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher obtained from agricultural produce listed here
ex 2208Undenatured ethyl alcohol of an alcoholic strength by volume of less than

80% vol obtained from agricultural produce listed here.
2209
Chapter 23

2401

187.

4501


188.

5301 and 5302 ”


)(b

189.

Article 2


That Decision shall enter into force on 1 January 1999.

jf

Done at

For the Association Council The President


FINANCIAL STATEMENT

Budget heading: Chapter 12, Article 120

Legal basis: Article 113 of the Treaty

Titles of the agreements in question: ;

Proposal for an amendment to the definition of the concept of “originating products” and the methods of administrative cooperation set out in Protocol 4 to the different Europe Agreements between the EC and the CEECs, the Baltic States and Slovenia and the Agreement on the European Economic Area, and in Protocol 3 to the free trade agreements between the EEC and the EFT A countries

Purpose:

To allow Central and Eastern European countries to continue applying flat rates where drawback is prohibited or exemption from customs duties is granted.

To extend the system to industrial products originating in Turkey and simplify or correct certain rules, particularly those on determining which country is to be considered the originating country.

Financial implications:

As, for the purposes of industrial products, Turkey is already in a customs union with the Community and these products are therefore already zero rated when imported into the Community, and as the purpose of the amendments is essentially to facilitate trade or simplify administrative tasks, this proposal would not seem to have any major financial implications.

Proposal for a COUNCIL DECISION

190.

98/ 0263 (ACC)


on a Community position on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Interim Agreement on trade and trade-related matters

between the

European Communities and the Republic of Slovenia

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof,

Having regard to Article 1 of the Council and Commission Decision of 25 November 1996 on the conclusion of the Interim Agreement on trade and trade-related matters between the European Communities and their Member States, of the one part, and the Republic of Slovenia, of the other part,

Having regard to the Commission proposal.

Whereas Article 38 of Protocol 4 to the said Interim Agreement provides that the Association Council may amend the provisions of the Protocol,

HAS DECIDED:

The position to be adopted by the Community within the Cooperation Council which performs the duties of the Association Council according to Article 38 of the Interim Agreement on trade and trade-related matters between the European Communities and their Member States, of the one part, and the Republic of Slovenia, of the other part, on an amendment to Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation set out in the Agreement shall be based on the draft Cooperation Council decision annexed to this Decision.

Done at Brussels,

191.

For the Council The President


INTERIM AGREEMENT

on trade and trade-related matters between the European Communities and their Member States and the Republic of Slovenia

DRAFT

Decision No of the Cooperation Council of...

amending Protocol 4 on the definition of the concept of “originating products” and

methods of administrative cooperation

THE COOPERATION COUNCIL,

Having regard to the Interim Agreement on trade and trade-related matters between the European Communities and the Republic of Slovenia, of the other part, signed in Brussels on 11 November 1996 and in particular Article 38 of Protocol 4 thereof,

Whereas the definition of the term “originating products” needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and Switzerland;

Whereas it would seem advisable to maintain in operation until 31 December 2000 the system of flat rate charges provided for in Article 15 in connection with the prohibition of drawback and exemption from customs duty;

Whereas, in view of the particular arrangement on industrial products obtaining between the Community and Turkey, it would also be appropriate to extend the cumulation system to such products originating in Turkey;

Whereas to facilitate trade and simplify administrative tasks it would be desirable to amend the wording of Articles 3, 4 and 12;

Whereas, to take account of changes in processing techniques and shortages of certain raw materials, some corrections must be made to the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status,

HAS DECIDED AS FOLLOWS:

192.

Article 1


Protocol 4 on the definition of the concept of “originating products” and methods of administrative cooperation is hereby amended as follows:

193.

1. Article l(i) shall be replaced by: *


“(i) ‘added value’ shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 or, where the customs value is not known or cannot be ascertained, the first price verifiably paid for the products in the Community or Slovenia.”

2. Articles 3 and 4 shall be replaced by:

Article 3 ,

Cumulation in the European Community

1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be considered as originating in the Community if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)42 or Turkey43 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Community and each of these countries, provided that the working or processing carried out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Community.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Community shall provide Slovenia, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the

Article 4

Cumulation in Slovenia

1. Without prejudice to the provisions of Article 2 paragraph 2, products shall be considered as originating in Slovenia if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)44 or Turkey45 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Slovenia and each of these countries, provided that the working or processing carried out in Slovenia goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in Slovenia does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Slovenia only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in Slovenia.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Slovenia, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

Slovenia shall provide the Community, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

3. Article 12 shall be replaced by the following:

“1. Except as provided for in Article 2(1 )(c), Articles 3 and 4 and paragraph 3 of this Article, the conditions for acquiring originating status set out in Title. II must continue to be fulfilled at all times in the Community or Slovenia.

2. Except as provided for in Articles 3 and 4, where originating goods exported from the Community or Slovenia to another country return, they must be considered as non-originating, unless it can be demonstrated to the satisfaction of the customs authorities thaf:

(a) the returning goods are the same as those that were exported; and

(b) they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

3. The acquisition of originating status in accordance with the conditions set out in Title II shall not be affected by working or processing done outside the Community or Slovenia on materials exported from the Community or Slovenia and subsequently reimported there, provided:

(a) the said materials are wholly obtained in the Community or Slovenia or have undergone working or processing beyond the insufficient operations listed in Article 7 prior to being exported; and

(b) it can be demonstrated to the satisfaction of the customs authorities that:

194.

i) the reimported goods have been obtained by working or processing


the exported materials; and '

ii) the total added value acquired outside the Community of Slovenia by applying the provisions of this Article does not exceed 10% of the ex-works price of the end product for which originating status is claimed.

4. For the purposes of paragraph 3, the conditions for acquiring originating status set out in Title II shall not apply to working or processing done outside the Community or Slovenia. But where, in the list in Annex II, a rule setting a maximum value for all the non-originating materials incorporated is applied in determining the originating status of the end product, the total value of the non-originating materials incorporated in the territory of the party concerned, taken together with the total added value acquired outside the Community or Slovenia by applying the provisions of this Article, shall not exceed the stated percentage.

5. For the purposes of applying the provisions of paragraphs 3 and 4, “total added value” shall be taken to mean all costs arising outside the Community or Slovenia, including the value of the materials incorporated there.

6. The provisions of paragraphs 3 and 4 shall not apply to products which do not fulfil the conditions set out in the list in Annex II or which can be considered sufficiently worked or processed only if the general values fixed in Article 6 i are applied.

7. The provisions of paragraphs 3 and 4 shall not apply to products' cor Tig under Chapters 50 to 63 of the Harmonised System.

8. Any working or processing of the kind covered by the provisions of this Article and done outside the Community or Slovenia shall be done under the outward processing arrangements, or similar arrangements.”

4. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase “referred to in Article 4” shall be replaced by “referred to in Articles 3 and 4”.

5. In the last paragraph of Article 15 i the date “31 December 1998” shall be replaced by “31 December 2000”.

6. In Article 26 the reference “C2/CP3” shall be replaced by “CN22/CN23”.

7. In Annex I, Note 5.2, “current conducting filaments” shall be added between “artificial man-made filaments” and “synthetic man-made staple fibres of polypropylene”.

8. In Annex I, Note 5.2 the fifth example (“A carpet with tufts ... are met.”) shall be deleted.

9. In Annex II, between the rules for HS headings 2202 and 2208 the following rule shall be inserted:

195.

//T


HS

Heading

No

(1)
Description of product

(2)
Working or processing of non-originating materials that confers originating status

(3) or (4)
2207Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength.Manufacture:

- using materials not classified in headings 2207 or 2208
It
Chapter

57
Carpets and other textile floor coverings:
- Of needleloom felt
Manufacture from i:

- natural fibres

or

- chemical materials or textile pulp
However:

- polypropylene filament of heading 5402,

- polypropylene fibres of heading 5503 or 5506,

- polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used provided their value does not exceed 40% of the ex-works price of the product
- jute fabric may be used as backing
- Of other felt
Manufacture from(l):

- natural fibres not carded or combed or otherwise processed for spinning,

or

- chemical materials or textile pulp
- Other
Manufacture from(l):

- coir or jute yam(a\

- synthetic or artificial filament yam,

- natural fibres, or

- man-made staple fibres not carded or combed or otherwise processed for spinning

But jute fabric may be used as backing

The use of jute yam is authorised from 1.7.2000.

!•
7006Glass of headings 7003, 7004 or 7005, bent, edgeworked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with other materials :

- glass plate substrate
Manufacture from materials
coated with dielectric thin film, semiconductor grade, in accordance with

SEMII standards46
(substrates) of heading 7006
- other
Manufacture from materials of heading 7001
U

12. In Annex II, the rule for HS heading 7601 shall be replaced by:

7601Unwrought aluminiumManufacture in which:

- all the materials used are classified within a heading other than that of the product; and

- the value of all the materials used does not exceed 50 % of the exworks price of the product
-
or

Manufacture by thermal or electrolytic treatment from unalloyed aluminium or waste and scrap of aluminium
M

13. The following is added after Annex IV:

"Annex V

196.

List of products originating in Turkey to which the provisions of Articles 3 and 4 do not apply, listed in the order of HS Chapters and Headings


Chapter 1

Chapter 2 Chapter 3 0401 to 0402 ex 0403 -

197.

0404 to 0410


198.

0504


199.

0511


Chapter 6

200.

0701 to 0709


ex 0710-ex 0711 -

201.

0712 to 0714 Chapter 8 ex Chapter 9 Chapter 10 Chapter 11 Chapter 12 ex 13021501 to1514 ex 1515-


ex 1516-


Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa


Vegetables (uncooked or cooked by steaming or boiling in water), frozen Vegetables, except sweet com of heading 0711 90 30, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption


Coffee, tea, and spices, excluding mate of heading 0903


Pectin


ex 1517 and ex 1518-

ex 1522 -

Chapter 16 1701

ex 1702 -


Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as ‘opal-wax’

202.

Margarines, imitation lard and other prepared edible fats


Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras


Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 1702 30 59, 1702 50 00 and 1702 90 10

ex 2001 -molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds

Cucumbers and gherkins, onions, mango chutney, fruit of the genus

Capsicum other than sweet peppers or pimentos, mushrooms and olives,
prepared or preserved by vinegar or acetic acid

203.

2002 and 2003


ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic
ex 2005 -acid, frozen, other than products of heading 2006, excluding potatoes in the form of flour or meal and flakes of sweet com

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006, excluding potato
and sweet com products

204.

2006 and 2007


ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or
2009preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants
ex 2106 -Flavoured and coloured sugars, syrups and molasses
2204
2206
ex 2207 -Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher obtained from agricultural produce listed here
ex 2208 -Undenatured ethyl alcohol of an alcoholic strength by volume of less than

80% vol obtained from agricultural produce listed here.
2209
Chapter 23

2401

205.

4501


206.

5301 and 5302 ”


JZL

207.

Article 2



That Decision shall enter into force on 1 January 1999.


208.

Done at



For the Cooperation Council The President


FINANCIAL STATEMENT

209.

1. Budget heading: Chapter 12, Article 120


210.

2. Legal basis: Article 113 of the Treaty


3. Titles of the agreements in question:

Proposal for an amendment to the definition of the concept of “originating products” and the methods of administrative cooperation set out in Protocol 4 to the different Europe Agreements between the EC and the CEECs, the Baltic States and Slovenia and the Agreement on the European Economic Area, and in Protocol 3 to the free trade agreements between the EEC and the EFT A countries

4. Purpose:

To allow Central and Eastern European countries to continue applying flat rates where drawback is prohibited or exemption from customs duties is granted.

To extend the system to industrial products originating in Turkey and simplify or correct certain rules, particularly those on determining which country is to be considered the originating country. .

5. Financial implications:

As, for the purposes of industrial products, Turkey is already in a customs union with the Community and these products are therefore already zero rated when imported into the Community, and as the purpose of the amendments is essentially to facilitate trade or simplify administrative tasks, this proposal would not seem to have any major financial implications.

DECISION N° .../ OF THE EC-SWITZERLAND JOINT COMMITTEE

of

amending Protocol 3 to the Agreement between the European Economic Community and the Swiss Confederation concerning the definition of the concept of “originating products” and methods of administrative cooperation

THE JOINT COMMITTEE,

Having regard to the Agreement between the European Economic Community and the Swiss Confederation47, hereinafter referred to as “the Agreement”, signed in Brussels on 22 July 1972,

Having regard to Protocol 3 concerning the definition of the concept of originating products and methods of administrative cooperation, hereinafter referred to as “Protocol 3”, and in particular Article 38 thereof,

Whereas the definition of the term “originating products” needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and Switzerland;

Whereas, in view of the particular arrangement on industrial products obtaining between the Community and Turkey, it would also be appropriate to extend the cumulation system to such products originating in Turkey;

Whereas to facilitate trade and simplify administrative tasks it would be desirable to amend the wording of Articles 3 and 4;

Whereas, to take account of changes in processing techniques and shortages of certain raw materials, some corrections must be made to the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status,

HAS DECIDED AS FOLLOWS:

211.

Article 1


Protocol 3 is hereby amended as follows:

1. Article l(i) shall be replaced by:

“(i) ‘added value’ shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 or, where the customs value is not known or cannot be ascertained, the first price verifiably paid for the products in the Community or Switzerland.”

2. Articles 3 and 4 shall be replaced by:

Article 3

Cumulation in the European Community

1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be considered as originating in the Community if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)48 or Turkey49 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Community and each of these countries, provided that the working or processing carried out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Community.

3. Products,' originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Community shall provide Switzerland, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

Article 4

Cumulation in Switzerland

1. Without prejudice to the provisions of Article 2 paragraph 2, products' shall be considered as originating in Switzerland if such products are obtained "there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)50 or Turkey51 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Switzerland and each of these countries, provided that the working or processing carried out in Switzerland goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in Switzerland does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Switzerland only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in Switzerland.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Switzerland, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

Switzerland shall provide the Community, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

3. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase “referred to in Article 4” shall be replaced by “referred to in Articles 3 and 4”.

4. In Article 26 the reference “C2/CP3” shall be replaced by “CN22/CN23”.

5. In Annex I, Note 5.2, “current conducting filaments” shall be added between “artificial man-made filaments” and “synthetic man-made staple fibres of polypropylene”.

6. In Annex I, Note 5.2 the fifth example (“A carpet with tufts ... are met.”) shall be deleted.

7.

HS

Heading

No

(1)
Description of product

. (2)
Working or processing of non-originating materials that confers originating status

(3) or (4)
2207Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength.Manufacture:

- using materials not classified in headings 2207 or 2208
Chapter

57
Carpets and other textile floor coverings:
- Of needleloom felt
Manufacture from i:

- natural fibres

or

- chemical materials or textile pulp
1However:

- polypropylene filament of heading 5402,

- polypropylene fibres of heading 5503 or 5506,

- polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used provided their value does not exceed 40% of the ex-works price of the product
- jute fabric may be used as backing
- Of other felt
Manufacture from(l):

- natural fibres not carded or combed or otherwise processed for spinning,

or

- chemical materials or textile pulp
- Other
Manufacture from(l):

- coir or jute yam<a),

- synthetic or artificial filament yam,

- natural fibres, or

- man-made staple fibres not carded or combed or otherwise processed for spinning

But jute fabric may be used as backing

The use of jute yam is authorised from 1.7.2000.

ft
7006Glass of headings 7003, 7004 or 7005, bent, edgeworked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with other materials :

- glass plate substrate
Manufacture from materials
coated with dielectric thin film, semiconductor grade, in accordance with

SEMIl standards1
(substrates) of heading 7006
- other
Manufacture from materials of heading 7001
44

10. In Annex II, the rule for HS heading 7601 shall be replaced by:

M
7601Unwrought aluminiumManufacture in which:

- all the materials used are classified within a heading other than that of the product; and

- the value of all the materials used does not exceed 50 % of the exworks price of the product
or

Manufacture by thermal or electrolytic treatment from unalloyed aluminium or waste and scrap of aluminium
ft

11. The following is added after Annex IV:

"Annex V

212.

List of products originating in Turkey to which the provisions of Articles 3 and 4 do not apply, listed in the order of HS Chapters and Headings


SEMIl- Semiconductor Equipment and Materials Institute Incorporated.

213.

Chapter 1 Chapter 2 Chapter 3 0401 to 0402 ex 0403 -



Buttermilk, curdled milk and cream, Yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa


214.

0404 to 0410


215.

0504


216.

0511


Chapter 6

217.

0701 to 0709


ex 0710-ex 0711-


Vegetables (uncooked or cooked by steaming or boiling in water), frozen Vegetables, except sweet com of heading 0711 90 30, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption


218.

0712 to 0714 Chapter 8 ex Chapter 9 Chapter 10 Chapter 11 Chapter 12 ex 1302 -1501tol514 ex 1515 -


ex 1516-


Coffee, tea, and spices, excluding mate of heading 0903


Pectin


Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as ‘opal-wax’


219.

ex 1517 and ex 1518 -


ex 1522-

Chapter 16 1701

ex 1702-


Margarines, imitation lard and other prepared edible fats

Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras


Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or


colouring matter; artificial honey, whether or not mixed with natural honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 1702 30 59, 1702 50 00 and 1702 90 10

220.

1703


221.

1801 and 1802


ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans.
ex 2001 -molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds

Cucumbers and gherkins, onions, mango chutney, fruit of the genus Capsicum other than sweet peppers or pimentos, mushrooms and olives,
prepared or preserved by vinegar or acetic acid 2002 and 2003 -

222.

ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic

ex 2005 -acid, frozen, other than products of heading 2006, excluding potatoes in the form of flour or meal and flakes of sweet com

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006, excluding potato
and sweet com products

223.

2006 and 2007


ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or
2009preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants
ex 2106 -Flavoured and coloured sugars, symps and molasses
2204
2206
ex 2207 -Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher obtained from agricultural produce listed here
ex 2208 -Undenatured ethyl alcohol of an alcoholic strength by volume of less them 80% vol obtained from agricultural produce listed here.
2209
Chapter 23

2401
4501
5301 and 5302

224.

Article 2


That Decision shall enter into force on 1 January 1999.

fp


225.

Done at


For the Joint Committee The President


226.

1. Budget heading: Chapter 12, Article 120


227.

2. Legal basis: Article 113 of the Treaty


3. Titles of the agreements in question:

Proposal for an amendment to the definition of the concept of “originating products” and the methods of administrative cooperation set out in Protocol 4 to the different Europe Agreements between the EC and the CEECs, the Baltic States and Slovenia and the Agreement on the European Economic Area, and in Protocol 3 to the free trade agreements between the EEC and the EFT A countries

4. Purpose:

To allow Central and Eastern European countries to continue applying flat rates where drawback is prohibited or exemption from customs duties is granted.

To extend the system to industrial products originating in Turkey and simplify or correct certain rules, particularly those on determining which country is to be considered the originating country.

5. Financial implications:

As, for the purposes of industrial products, Turkey is already in a customs union with the Community and these products are therefore already zero rated when imported into the Community, and as the purpose of the amendments is essentially to facilitate trade or simplify administrative tasks, this proposal would not seem to have any major financial implications.

DECISION N° .../ OF THE EC-NORWAY JOINT COMMITTEE

of ^ .

amending Protocol 3 to the Agreement between the European Economic Community and the Kingdom of Norway concerning the definition of the concept of “originating products” and methods of administrative cooperation

THE JOINT COMMITTEE,

Having regard to the Agreement between the European Economic Community and the Kingdom of Norway52, hereinafter referred to as “the Agreement”, signed in Brussels on 14 May 1973,

Having regard to Protocol 3 concerning the definition of the concept of originating products and methods of administrative cooperation, hereinafter referred to as “Protocol 3”, and in particular Article 38 thereof,

Whereas the definition of the term “originating products” needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and Switzerland;

Whereas, in view of the particular arrangement bn industrial products obtaining between the Community and Turkey, it would also be appropriate to extend the cumulation system to such products originating in Turkey;

Whereas to facilitate trade and simplify administrative tasks it would be desirable to amend the wording of Articles 3 and 4;

Whereas, to take account of changes in processing techniques and shortages of certain raw materials, some corrections must be made to the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status,

HAS DECIDED AS FOLLOWS:

228.

Article 1


Protocol 3 is hereby amended as follows:

1. Article l(i) shall be replaced by:

“(i) ‘added value’ shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 or, where the customs value is not

229.

known or cannot be ascertained, the first price verifiably paid for the products in the Community or Norway.”


2. Articles 3 and 4 shall be replaced by:

Article 3

Cumulation in the European Community

1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be considered as originating in the Community if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)53 or Turkey54 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Community and each of these countries, provided that the working or processing carried out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Community.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Community shall provide Norway, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

Article 4

Cumulation in Norway

1. Without prejudice to the provisions of Article 2 paragraph 2, products'shall be considered as originating in Norway if such products are obtained there, Incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)55 or Turkey56 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Norway and each of these countries, provided that the working or processing carried out in Norway goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in Norway does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Norway only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in Norway.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Norway, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

Norway shall provide the Community, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

3. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase “referred to in Article 4” shall be replaced by “referred to in Articles 3 and 4”.

4. In Article 26 the reference “C2/CP3” shall be replaced by “CN22/CN23”

5. In Annex I, Note 5.2, “current conducting filaments” shall be added between “artificial man-made filaments” and “synthetic man-made staple fibres of polypropylene”.

6. In Annex I, Note 5.2 the fifth example (“A carpet with tufts ... are met.”) shall be deleted.

7.

If
HS

Heading

No

(1)
Description of product

(2)
Working or processing of non-originating materials that confers originating status

(3) or (4)
2207Undenatured ethyl alcohol of an alcoholic strength by volume of

80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength.
Manufacture:

- using materials not classified in headings 2207 or 2208
M

ll

Chapter

57
Carpets and other textile floor coverings:
- Of needleloom felt
Manufacture from i:

- natural fibres

or

- chemical materials or textile pulp
However:

- polypropylene filament of heading 5402,

- polypropylene fibres of heading 5503 or 5506,

- polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used provided their value does not exceed 40% of the ex-works price of the product
- jute fabric may be used as backing
- Of other felt
Manufacture from(l):

- natural fibres not carded or combed or otherwise processed for spinning,

or

- chemical materials or textile pulp
- Other
Manufacture from(l):

- coir or jute yam(a\

- synthetic or artificial filament yam,

- natural fibres, or

- man-made staple fibres not carded

or combed or otherwise processed for spinning .

But jute fabric may be used as backing

The use of jute yam is authorised from 1.7.2000.

12*1

ft
7006Glass of headings 7003, 7004 or 7005, bent, edgeworked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with other materials:

- glass plate substrate
Manufacture from materials
coated with dielectric thin film, semiconductor grade, in accordance with

SEMII standards1
(substrates) of heading 7006
- other
Manufacture from materials of heading 7001

10. In Annex II, the rule for HS heading 7601 shall be replaced by:

ft
7601Unwrought aluminiumManufacture in which:

- all the materials used are classified within a heading other than that of the product; and

- the value of all the materials used does not exceed 50 % of the exworks price of the product
or

Manufacture by thermal or electrolytic treatment from unalloyed aluminium or waste and scrap of aluminium
ft

11. The following is added after Annex IV:

"Annex V

230.

List of products originating in Turkey to which the provisions of Articles 3 and 4 do not apply, listed in the order of HS Chapters and Headings


SEMII- Semiconductor Equipment and Materials Institute Incorporated.

231.

Chapter 1 Chapter 2 Chapter 3 0401 to 0402 ex 0403 -


232.

0404 to 0410


233.

0504


234.

0511


Chapter 6

235.

0701 to 0709


ex 0710-ex 0711 -

236.

0712 to 0714 Chapter 8 ex Chapter 9 Chapter 10 Chapter 11 Chapter 12 ex 1302 -1501 tol514 ex 1515 -


ex 1516 —


Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa


Vegetables (uncooked or cooked by steaming or boiling in water), frozen Vegetables, except sweet com of heading 0711 90 30, provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption '


Coffee, tea, and spices, excluding mate of heading 0903


Pectin


ex 1517 and ex 1518-

ex 1522 -

Chapter 16 1701

ex 1702-


Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as ‘opal-wax’

237.

Margarines, imitation lard and other prepared edible fats


Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras


Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or


colouring matter; artificial honey, whether or not mixed with natural honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 1702 30 59, 1702 50 00 and 1702 90 10

238.

1703


239.

1801 and 1802


ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans,
ex 2001 -molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds

Cucumbers and gherkins, onions, mango chutney, fruit of the genus

Capsicum other than sweet peppers or pimentos, mushrooms and olives,
. prepared or preserved by vinegar or acetic acid

240.

2002 and 2003


ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic
ex 2005 -acid, frozen, other than products of heading 2006, excluding potatoes in the form of flour or meal and flakes of sweet com

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006, excluding potato •
and sweet com products

241.

2006 and 2007


ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or
2009preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants
ex 2106 -Flavoured and coloured sugars, syrups and molasses
2204
2206
ex 2207 -Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher obtained from agricultural produce listed here
ex 2208 -Undenatured ethyl alcohol of an alcoholic strength by volume of less than

80% vol obtained from agricultural produce listed here.
2209
Chapter 23

2401
4501

242.

5301 and 5302 ”


Ni

243.

Article 2



That Decision shall enter into force on 1 January 1999.


244.

Done at



For the Joint Committee The President


245.

1. Budget heading: Chapter 12, Article 120


246.

2. Legal basis: Article 113 of the Treaty


3. Titles of the agreements in question: .

Proposal for an amendment to the definition of the concept of “originating products” and the methods of administrative cooperation set out in Protocol 4 to the different Europe Agreements between the EC and the CEECs, the Baltic States and Slovenia and the Agreement on the European Economic Area, and in Protocol 3 to the free trade agreements between the EEC and the EFTA countries

4. Purpose:

To allow Central and Eastern European countries to continue applying flat rates where drawback is prohibited or exemption from customs duties is granted.

To extend the system to industrial products originating in Turkey and simplify or correct certain rules, particularly those on determining which country is to be considered the originating country.

5. Financial implications:

As, for the purposes of industrial products, Turkey is already in a customs union with the Community and these products are therefore already zero rated when imported into the Community, and as the purpose of the amendments is . essentially to facilitate trade or simplify administrative tasks, this proposal would not seem to have any major financial implications.

DECISION N° .../ OF THE EC-ICELAND JOINT COMMITTEE

of

amending Protocol 3 to the Agreement between the European Economic Community and the Republic of Iceland concerning the definition of the concept of “originating products” and methods of administrative cooperation

THE JOINT COMMITTEE, .

Having regard to the Agreement between the European Economic Community and the Republic of Iceland57, hereinafter referred to as “the Agreement”, signed in Brussels on 22 July 1972,

Having regard to Protocol 3 concerning the definition of the concept of originating products and methods of administrative cooperation, hereinafter referred to as “Protocol 3”, and in particular Article 38 thereof,

Whereas the definition of the term “originating products” needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and Switzerland;

Whereas, in view of the particular arrangement on industrial products obtaining between the Community and Turkey, it would also be appropriate to extend the cumulation system to such products originating in Turkey;

Whereas to facilitate trade and simplify administrative tasks it would be desirable to amend the wording of Articles 3 and 4;

Whereas, to take account of changes in processing techniques and shortages of certain raw materials, some corrections must be made to the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status,

HAS DECIDED AS FOLLOWS:

247.

Article 1


Protocol 3 is hereby amended as follows:

1. Article 1 (i) shall be replaced by:

“(i) ‘added value’ shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 or, where the customs value is not known or cannot be ascertained, the first price verifiably paid for the products in the Community or Iceland.”

2. Articles 3 and 4 shall be replaced by:

Article 3

Cumulation in the European Community

1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be considered as originating in the Community if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)58 or Turkey59 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Community and each of these countries, provided that the working or processing carried out in the Community goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the Community does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in the Community only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the Community.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the Community, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Community shall provide Iceland, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

Article 4

Cumulation in Iceland

1. Without prejudice to the provisions of Article 2 paragraph 2, products,shall be considered as originating in Iceland if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)60 or Turkey61 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between Iceland and each of these countries, provided that the working or processing carried out in Iceland goes beyond that referred to in Article 7 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in Iceland does not go beyond the operations referred to in Article 7, the product obtained shall be considered as originating in Iceland only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in Iceland.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in Iceland, retain their origin if exported into one of these countries.

248.

4. The cumulation provided for in this Article may only be applied to materials and


products which have acquired originating status by an application of rules of origin identical to those given in this Protocol. ,

Iceland shall provide the Community, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

3. In Articles 13, 14, 15, 17, 21, 27, 30 and 32 the phrase “referred to in Article 4” shall be replaced by “referred to in Articles 3 and 4”.

4. In Article 26 the reference “C2/CP3” shall be replaced by “CN22/CN23”.

5. In Annex I, Note 5.2, “current conducting filaments” shall be added between “artificial man-made filaments” and “synthetic man-made staple fibres of polypropylene”.

6. In Annex I, Note 5.2 the fifth example (“A carpet with tufts ... are met.”) shall be deleted.

7.

H
HS

Heading

No

(1)
Description of product

(2)
Working or processing of non-originating materials that confers originating status

(3) or (4)
2207Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength.Manufacture:

- using materials not classified in headings 2207 or 2208
Chapter

57
Carpets and other textile floor coverings:
- Of needleloom felt
Manufacture from i:

- natural fibres

or

- chemical materials or textile pulp
However:

- polypropylene filament of heading 5402,

- polypropylene fibres of heading 5503 or 5506,

- polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used provided their value does not exceed 40% of the ex-works price of the product
- jute fabric may be used as backing
- Of other felt
Manufacture from(l):

- natural fibres not carded or combed or otherwise processed for spinning,

or

- chemical materials or textile pulp
- Other
Manufacture from(l):

- coir or jute yam(a),

- synthetic or artificial filament yam,

- natural fibres, or

- man-made staple fibres not carded or combed or otherwise processed for spinning

But jute fabric may be used as backing

The use of jute yam is authorised from 1.7.2000.

n
7006Glass of headings 7003, 7004 or 7005, bent, edgeworked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with other materials :

- glass plate substrate
Manufacture from materials
coated with dielectric thin film, semiconductor grade, in accordance with

SEMII standards1
(substrates) of heading 7006
- other
Manufacture from materials of heading 7001
U


10. In Annex II, the rule for HS heading 7601 shall be replaced by:

7601Unwrought aluminiumManufacture in which:

- all the materials used are classified within a heading other than that of the product; and

- the value of all the materials used does not exceed 50 % of the exworks price of the product
or

Manufacture by thermal or electrolytic treatment from unalloyed aluminium or waste and scrap of aluminium
n


11. The following is added after Annex IV:

"Annex V

249.

List of products originating in Turkey to which the provisions of Articles 3 and 4 do not apply, listed in the order of HS Chapters and Headings


SEM1I- Semiconductor Equipment and Materials Institute Incorporated.

Chapter 1 .

250.

Chapter 2 Chapter 3 0401 to 0402


ex 0403 - Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing- added fruit or cocoa

251.

0404 to 0410


252.

0504


253.

0511


Chapter 6 0701 to 0709

ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen

ex 0711- Vegetables, except sweet com of heading 0711 90 30, provisionally

preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption

254.

0712 to 0714


Chapter 8 .

255.

ex Chapter 9 - Coffee, tea, and spices, excluding mate of heading 0903


Chapter 10

Chapter 11

Chapter 12

ex 1302- Pectin 1501to!514

256.

ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified


ex 1516 - Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as ‘opal-wax’

257.

ex 1517 and


ex 1518 - Margarines, imitation lard and other prepared edible fats

ex 1522- Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras

Chapter 16 1701

ex 1702 -

Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or

colouring matter; artificial honey, whether or not mixed with natun honey; caramel excluding that of headings 1702 11 00, 1702 30 1702 30 59, 1702 50 00 and 1702 90 10

258.

1703


259.

1801 and 1802


ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans,
ex 2001 -molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds

Cucumbers and gherkins, onions, mango chutney, fruit of the genus

Capsicum other than sweet peppers or pimentos, mushrooms and olives, .
prepared or preserved by vinegar or acetic acid

260.

2002 and 2003


ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic
ex 2005 -acid, frozen, other than products of heading 2006, excluding potatoes in the form of flour or meal and flakes of sweet com

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006, excluding potato
and sweet com products

261.

2006 and 2007


ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or
2009preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants
ex 2106 -Flavoured and coloured sugars, syrups and molasses
2204
2206
ex 2207 -Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher obtained from agricultural produce listed here
ex 2208 -Undenatured ethyl alcohol of an alcoholic strength by volume of less than

80% vol obtained from agricultural produce listed here.
2209
Chapter 23

2401

262.

4501


263.

5301 and 5302 *


/fl

264.

Article 2



That Decision shall enter into force on 1 January 1999


Done at


For the Joint Committee The President


ns


FINANCIAL STATEMENT

265.

1. Budget heading: Chapter 12, Article 120


266.

2. Legal basis: Article 113 of the Treaty


3. Titles of the agreements in question:

Proposal for an amendment to the definition of the concept of “originating products” and the methods of administrative cooperation set out in Protocol 4 to the different Europe Agreements between the EC and the CEECs, the Baltic States and Slovenia and the Agreement on the European Economic Area, and in Protocol 3 to the free trade agreements between the EEC and the EFTA countries

4. Purpose:

To allow Central and Eastern European countries to continue applying Hat rates where drawback is prohibited or exemption from customs duties is granted.

To extend the system to industrial products originating in Turkey and simplify or correct certain rules, particularly those on determining which country is to be considered the originating country.

5. Financial implications:

As, for the purposes of industrial products, Turkey is already in a customs union with the Community and these products are therefore already zero rated when imported into the Community, and as the purpose of the amendments is essentially to facilitate trade or simplify administrative tasks, this proposal would not seem to have any major financial implications.

DECISION N° .../ OF THE EEA JOINT COMMITTEE,

No .. of

amending Protocol 4 to the EEA Agreement on rules of origin

THE EEA JOINT COMMITTEE,

Having regard to the Agreement on the European Economic Area, as adjusted by the Protocol adjusting that Agreement, hereinafter referred to as the Agreement, and in particular Article 98 thereof.

Whereas the definition of the term “originating products” needs to be amended to ensure the proper operation of the extended system of cumulation which permits the use of materials originating in the European Community, Poland, Hungary, the Czech Republic, the Slovak Republic, Bulgaria, Romania, Latvia, Lithuania, Estonia, Slovenia, the European Economic Area (hereinafter referred to as the EEA), Iceland, Norway and Switzerland;

i ■

Whereas, in view of the particular arrangement on industrial products obtaining between the Community and Turkey, it would also be appropriate to extend the cumulation system to such products originating in Turkey;

Whereas to facilitate trade and simplify administrative tasks it would be desirable to amend the wording of Article 3;

Whereas, to take account of changes in processing techniques and shortages of certain raw materials, some corrections must be made to the list of working and processing requirements which non-originating materials have to fulfil to qualify for originating status,

HAS DECIDED AS FOLLOWS:

267.

Article 1


Protocol 4 is hereby amended as follows:

1. Article 1 (i) shall be replaced by:

“(i) ‘added value’ shall be taken to be the ex-works price minus the customs value of each of the materials incorporated which originate in the other countries referred to in Articles 3 and 4 or, where the customs value is not known or cannot be ascertained, the first price verifiably paid for the products in the EEA.”

2. Article 3 shall be replaced by:

Article 3

Cumulation with originating materials

1. Without prejudice to the provisions of Article 2 paragraph 1, products shall be considered as originating in the EEA if such products are obtained there, incorporating materials originating in the Community, Bulgaria, Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Lithuania, Latvia, Estonia, Slovenia, Iceland, Norway, Switzerland (including Liechtenstein)62 or Turkey63 in accordance with the provisions of the Protocol on rules of origin annexed to the Agreements between the Contracting Parties and these countries, provided that the working or processing carried out in the EEA goes beyond that referred to in Article 6 of this Protocol. It shall not be necessary that such materials have undergone sufficient working or processing.

2. Where the working or processing carried out in the EEA does not go beyond the operations referred to in Article 6, the product obtained shall be considered as originating in the EEA only where the value added there is greater than the value of the materials used originating in any one of the other countries referred to in paragraph 1. If this is not so, the product obtained shall be considered as originating in the country which accounts for the highest value of originating materials used in the manufacture in the EEA.

3. Products, originating in one of the countries referred to in paragraph 1, which do not undergo any working or processing in the EEA, retain their origin if exported into one of these countries.

4. The cumulation provided for in this Article may only be applied to materials and products which have acquired originating status by an application of rules of origin identical to those given in this Protocol.

The Contracting Parties shall provide each other, through the European Commission with details of the Agreements and their corresponding rules of origin, which are applied with the other countries referred to in paragraph 1. The European Commission shall publish in the Official Journal of the European Communities (C Series) the date on which the cumulation, provided for in this Article may be applied by those countries listed in paragraph 1 which have fulfilled the necessary requirements.

3. In Article 25 the reference “C2/CP3” shall be replaced by “CN22/CN23”.

4. In Annex I, Note 5.2, “current conducting filaments” shall be added between “artificial man-made filaments” and “synthetic man-made staple fibres of polypropylene”.

5. In Annex I, Note 5.2 the fifth example (“A carpet with tufts . .. are met.”} shall be deleted.

6. In Annex II, between the rules for HS headings 2202 and 2208 the following rule shall be inserted:

HS

Heading

No

(1)
Description of product

(2)
Working or processing of non-originating materials that

confers originating status

(3) or (4)
2207Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher; ethyl alcohol and other spirits, denatured, of any strength.Manufacture:

- using materials not classified in headings 2207 or 2208
Chapter

57
Carpets and other textile floor coverings:
- Of needleloom felt
Manufacture from i:

- natural fibres

or

- chemical materials or textile pulp
However:

- polypropylene filament of heading 5402,

- polypropylene fibres of heading 5503 or 5506,

- polypropylene filament tow of heading 5501, of which the denomination in all cases of a single filament or fibre is less than 9 decitex, may be used provided their value does not exceed 40% of the ex-works price of the product
- jute fabric may be used as backing
- Of other felt
Manufacture from(l):

- natural fibres not carded or combed or otherwise processed for spinning,

or

- chemical materials or textile pulp
- Other
Manufacture from(l):

- coir or jute yam(a),

- synthetic or artificial filament yam,

- natural fibres, or

- man-made staple fibres not carded or combed or otherwise processed for spinning

But jute fabric may be used as backing

The use of jute yam is authorised from 1.7.2000.

11 JOGlass of headings 7003, 7004 or 7005, bent, edgeworked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with other materials :

- glass plate substrate
Manufacture from materials
coated with dielectric thin film, semiconductor grade, in accordance with

SEMI1 standards1
(substrates) of heading 7006
- other
Manufacture from materials of heading 7001

9. In Annex II. the rule for HS heading 7601 shall be replaced by:

7601L’nwrought aluminiumManufacture in which:

- all the materials used are classified within a heading other than that of the product; and

- the value of all the materials used does not exceed 50 % of the exworks price of the product
or

Manufacture by thermal or electrolytic treatment from unalloyed aluminium or waste and scrap of aluminium
ft

10. The following is added after Annex VI:

"Annex VII

268.

List of products originating in Turkey to which the provisions of Article 3 do not apply, listed in the order of HS Chapters and Headings


SEMI I- Semiconductor Equipment and Materials Institute Incorporated.

269.

Chapter 1 -


Chapter 2 Chapter 3 0401 to 0402

ex 0403 - Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit or cocoa

270.

0404 to 0410


271.

0504


272.

0511


Chapter 6 .

273.

0701 to 0709


ex 0710 - Vegetables (uncooked or cooked by steaming or boiling in water), frozen

ex 0711- Vegetables, except sweet com of heading 0711 90 30, provisionally

preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption

274.

0712 to 0714 Chapter 8


ex Chapter 9 - Coffee, tea, and spices, excluding mate of heading 0903

Chapter 10

Chapter 11

Chapter 12

ex 1302- Pectin

275.

1501 to1514


ex 1515 - Other fixed vegetable fats and oils (excluding jojoba oil and its fractions) and their fractions, whether or not refined, but not chemically modified

ex 1516 - Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared, excluding hydrogenated castor oil known as ‘opal-wax’

276.

ex 1517 and


ex 1518 - Margarines, imitation lard and other prepared edible fats

ex 1522- Residues resulting from the treatment of fatty substances or animal or vegetable waxes, excluding degras

Chapter 16 1701

ex 1702- Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or

colouring matter; artificial honey, whether or not mixed with natural honey; caramel excluding that of headings 1702 11 00, 1702 30 51, 1702 30 59, 1702 50 00 and 1702 90 10

277.

1703


278.

1801 and 1802


ex 1902 - Pasta, stuffed, containing more than 20% by weight of fish, crustaceans,
ex 2001 -molluscs or other aquatic invertebrates, sausages and the like or meat and meat offal of any kind, including fats of all kinds

Cucumbers and gherkins, onions, mango chutney, fruit of the genus Capsicum other than sweet peppers or pimentos, mushrooms and olives,
prepared or preserved by vinegar or acetic acid

279.

2002 and 2003


ex 2004 - Other vegetables prepared or preserved otherwise than by vinegar or acetic
ex 2005 -acid, frozen, other than products of heading 2006, excluding potatoes in the form of flour or meal and flakes of sweet com

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006, excluding potato
and sweet com products

280.

2006 and 2007


ex 2008 - Fruits, nuts and other edible parts of plants, otherwise prepared or
2009preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, excluding peanut butter, palm hearts, maize, yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, vine leaves, hop shoots and other similar edible parts of plants
ex 2106 -Flavoured and coloured sugars, symps and molasses
2204
2206
ex 2207 -Undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher obtained from agricultural produce listed here
ex 2208 -Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol obtained from agricultural produce listed here.
2209
Chapter 23

2401

281.

4501


282.

5301 and 5302


Article 2


That Decision shall enter into force on 1 January 1999.


283.

Done at



For the EE A Joint Committee The President


/(cL


FINANCIAL STATEMENT

284.

1. Budget heading: Chapter 12, Article 120


285.

2. Legal basis: Article 113 of the Treaty


3. Titles of the agreements in question:

Proposal for an amendment to the definition of the concept of “originating products” and the methods of administrative cooperation set out in Protocol 4 to the different Europe Agreements between the EC and the CEECs, the Baltic States and Slovenia and the Agreement on the European Economic Area, and in Protocol 3 to the free trade agreements between the EEC and the EFTA countries

4. Purpose:

To allow Central and Eastern European countries to continue applying flat rates where drawback is prohibited or exemption from customs duties is granted.

To extend the system to industrial products originating in Turkey and simplify or correct certain rules, particularly those on determining which country is to be considered the originating country.

5. Financial implications:

As, for the purposes of industrial products, Turkey is already in a customs union with the Community and these products are therefore already zero rated when imported into the Community, and as the purpose of the amendments is essentially to facilitate trade or simplify administrative tasks, this proposal would not seem to have any major financial implications.

/G3


ISSN 0254-1475

COM i 389 final

DOCUMENTS

EN

02 10 11 06

Catalogue number : CB-CO-98-404-EN-C

ISBN 92-78-37371-0

286.

Office for Official Publications of the European Communities L-2985 Luxembourg


1

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

2

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

3

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

4

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

5

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

6

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

7

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

8

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

9

The use of jute yarn is authorised from 1.7.2000.

SEMII- Semiconductor Equipment and Materials Institute Incorporated.

10

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

11

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

12

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

13

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

14

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

15

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

16

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

17

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

18

The use of jute yam is authorised from 1.7.2000.

19

SEMI I- Semiconductor Equipment and Materials Institute Incorporated.

20

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

21

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

22

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

23

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

24

SEMII- Semiconductor Equipment and Materials Institute Incorporated.

25

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

26

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

27

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

28

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

29

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

30

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

31

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

32

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

33

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

34

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

35

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

36

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

37

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

38

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

39

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

40

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

41

The use of jute yarn is authorised from 1.7.2000.

SEMII- Semiconductor Equipment and Materials Institute Incorporated.

42

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

43

Cumulation as providedfor in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

44

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

45

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

46

SEMII- Semiconductor Equipment and Materials Institute Incorporated.

47

OJN° L 300, 31.12.1972, p. 189

48

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

49

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

50

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

51

Cumulation as providedfor in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

52

OJ N°L 171, 27.6.1973, p. 2

53

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

54

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

55

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

56

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

57

OJ N° L 301, 31.12.1972, p.2.

58

The Principality of Liechtenstein has a customs union with Switzerlandand is a Contracting Party to the Agreement on the European Economic Area.

59

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

60

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

61

Cumulation as provided for in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.

62

The Principality of Liechtenstein has a customs union with Switzerland, and is a Contracting Party to the Agreement on the European Economic Area.

63

Cumulation as providedfor in this Article does not apply to materials originating in Turkey which are mentioned in the list at Annex V to this Protocol.